Top Business Management Models for Effective Management

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To run successful businesses, entrepreneurs must adopt new management strategies that promote staff retention, revenue generation, and workplace culture. This is in addition to exhorting rank-and-file staff to support change programs. Failing to do so can be costly for a business.

To learn more, take a look at the infographic below created by the New Jersey Institute of Technology’s Online Master of Business Administration program.


Top business management models

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Business Growth and Change

According to a survey of North American executives, 75% of the polled executives believe that organizations that can adapt to change have a significant competitive advantage. At the same time, 74% of those surveyed believe that innovation is a more reliable long-term success marker than cost reduction measures. In addition, 37% of the organizations surveyed have tried to implement change management. Finally, 54% of the executives who took part in the survey have successfully rolled out change management initiatives at their organizations.

The Role of Company Culture When Implementing Change

Up to 84% of the executives surveyed in the aforementioned survey said that company culture plays a big role in determining business success. In spite of this, 45% of the surveyed executives believe that their organizations’ culture management is headed in the wrong direction. Worryingly, 76% of executives said that they had failed to factor existing company culture when devising organization-wide transformation plans. As such, 96% say that culture change is necessary across the organizations they lead. Out of these, 51% believe that their organizations require major culture overhaul.

Barriers to Change

The first barrier is change fatigue. In fact, 65% of North American employees have experienced change fatigue while trying to cope with numerous change demands all at once. Another barrier to change is capability limitations with 48% of employees convinced their organizations lack the capabilities to sustain change initiatives. The third change barrier is opposition from low-level staff. Up to 44% of employees say the do not understand change initiatives and 38% say that they do not support such changes. Workers say that the failures associated with past change programs and failure to involve them fully in change efforts are some of the main reasons for opposing organization-wide changes.

An Overview of Change Management Program

Change management programs allow organizations to control the implementation of new processes with the aim of enhancing business benefits. As such, change management programs involve organizational buy-in, design of change initiatives, seamless implementation of change initiatives, and generation of change models that can be applied repeatedly to ensure the success of future change efforts. Some of the common change models include:

1. Holocracy

Holocracy is a change management philosophy developed by Brian Robertson and Tom Thomisom in 2007. This philosophy champions distribution of power across well-defined roles. As such, task execution occurs autonomously unlike traditional hierarchies where micromanagement is the norm.


Holocracy is based on four key components with the first being roles. In this case, definition of rules revolves around work, not staff. These rules are updated regularly to reflect changes in organization structure or culture. The second component is distributed authority meaning authority is distributed to teams and each team has the responsibility of assigning roles and making team-specific decisions. Component number three is rapid iteration, which refers to regular updating of organization structure via implementation of small iterations. Take note these iterations apply at the team-level as well. The final component is transparency where employees at all levels (including senior management) are subject to the same rules.


Holocracy makes an organization adaptive to change and helps clarify company mission. It also has in-built re-assessment and reallocation components to address problems that may arise later.

2. McKinsey 7-S Model

The McKinsey 7-S model dates back to the 1980s when it was developed by McKinsey & Company consultants.


This model is based on seven pillars with the first being strategy, which refers to methodical action plan development. Structure is the second pillar and it refers to an organization’s hierarchy/structure. The third pillar is systems, which refers to daily change management activities. Fourthly, shared values refers to an organizational core values. The fifth pillar is style and it refers to the process of implementing change. Staff is the sixth pillar and it refers to the working capability of employees. The last pillar is skills and it refers to staff competencies and skills.


The McKinsey 7-S model enables one to see the way an organization works. Moreover, it has practical and emotional components to ease transition. Finally, it equalizes roles.

Kotter’s 8-step Change Model

This change model is the brainchild of a Harvard Business School professor called John P. Kotter.


It consists of eight steps including creating a sense of urgency, building change team, forming a strategic vision, enlisting volunteers, empowering action, generating short-term wins, sustaining acceleration and incorporating change.


The Kotter model is easy to adopt and implement even in traditionally hierarchical organizations. Nevertheless, focus should be change acceptance because it is a common obstacle to change management.


Traditional management practices are no longer viable in a highly competitive business landscape. New management models that you could implement in your company include holocracy, McKinsey 7-S and Kotter’s 8-step change model.