Such a clear hierarchy of values provides all stakeholders with a guideline how to prioritize choices to be made and how to solve the dilemmas of the firm. The financial oriented one-dimensional performance management system of the past decennia, which evoked so often perverse behavior, only can be corrected by placing this within the context of a hierarchy of non-financial values.

This will provide clarity of purpose, not only to customers but also to the workers in the organization. Clarity in the organization also is needed in case of new strategies. Too often new strategies falter because executives fail to adapt the systemic context in the organization to the new strategy, as a result of which managers develop initiatives based on old thinking, thus derailing the new strategy. Elements like the reward system, dimensions on which to achieve performance and management information, all need to be changed in order to create
new strategic behavior with managers and workers in the organization.

This NNC Annual explains how to achieve that, including the required introduction of business control to overcome the limitations of financial control and process control. Also the changes needed in the IT-governance are highlighted, to move from managing costs of IT to turning the information infrastructure of the firm into a competitive weapon. We are entering a period of new power relations between citizens, corporations and governments, and within the organization between executives, managers and workers. This all is forced upon us by the declining costs of information and communication. The declining costs of information also change the power system in our society and our organizations, and between them.

The old adage change or perish applies as never before. This time the question is not about how to change organizations; the nature of what an organization is changes. The forces for change themselves are changing, by dynamics, intensity and nature. The paradox we have to transcend is that only new strategic behavior of individuals will answer the new challenges, but to achieve this we need to shed our bias in traditional management, and need to manage our systemic context. That will produce new strategic behavior, both in management and in consulting.

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