The problem: most organisations don't work

Despite the fact that people (and that includes both managers and team members) are working incredibly hard, most organisations struggle with various aspects of performance. Just consider some of the evidence:

  • employee engagement remains dismally low: only 13% of the world's workforce are engaged (Gallup)

  • corporate performance is eroding: RoA in US public companies is on a steady decline since 1965, down 75% to this day (Center for the Edge, Deloitte)

  • innovation and growth seem elusive: 75% of investments in new product development fail to create products that succeed commercially (Clayton Christensen)

  • organisations cannot change: 70% of change and transformation programs still fail (McKinsey)

  • corporate lifespan is falling fast: the average firm is now 17 years in the S&P 500 (down from 61 years in 1958), at the current rate it takes less than 10 years to replace 50% of S&P 500 firms (Innosight)

The root cause: dysfunctional management models

The reason most organisations struggle with the above challenges is not that its managers are inherently bad, but that they are trapped in systems that produce these outcomes and that they lack the knowledge and tools to change them. 

Just organisations need a great business model to be successful, they also need a sound management model. In a nutshell, the management model is the set of theories, beliefs, processes and practices on which managers rely in their work.

Every organisation has a management model. But only very few can describe it. In most cases, management models accidentally evolve over time. Almost never are they explicitly designed. And in most cases, managers are not even aware of the underlying theory and principles they are using. 

As a result, these "accidental" management models suffer from five sources of dysfunction:​

  • they are stuck in 20th century industrial logic, not suitable for 21st century challenges 

  • their design is incomplete, inconsistent and often flat out contradictory 

  • they are not fit for purpose (other than producing quarterly numbers)

  • they are not designed for humans (as in both customers and team members)

  • they essentially rely on luck (unproven methods, opinions, “best practices”, …) instead of sound (causal) management theory

And so the practice of management becomes a barrier to performance in many organisations - and a source of frustration for managers, team members and customers alike.

The solution: management model design

What if we had a way to design management models with direction, method and purpose? What if a well-designed management model could become an organisations’s strongest and most sustainable source of competitive advantage?


If we are going to advance the practice of management we need to provide managers with better tools and more practical methods. We are dedicated to create them. 

Our Team
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Hi, I'm Raymond.

My goal is to make management simple, human and effective.

I will use my experience from more than 20 years as a consultant and C-level executive in Europe, Asia, Africa and the US to help make Management Model Design useful to you. 

You can find out more about me and my consulting business below.

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Hi, I'm Lukas.

My goal is to make management visible and ready for design.

Together with my global network of partners, I will use my experience as a manager and author of MANAGEMENT DESIGN to help you inform the design of your management model and systems.

You can find out more about me and my advisory network  below.

If you'd like to contribute to make Management Model Design successful, please get in touch with us. Let us know why you would like to be part of the team and what your unique contribution could be.

© 2019 Raymond Hofmann Management

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