4 Models of Management (PowerPoint PPTX Slide Deck)

CEO PPT DESCRIPTION

Explore 4 management models crafted by ex-McKinsey & Big 4 consultants. Gain insights on CEO tenure, succession, and leadership continuity for strategic planning. 4 Models of Management is a 24-slide PPT PowerPoint presentation slide deck (PPTX) available for immediate download upon purchase.

Explore Slides inside the Deck:

CEO Tenure Analysis across Management Models CEO Characteristics across Management Models Overview of the Holding Company Management Model

This framework discusses 4 models of management, defined by how the "Corporate Core" engages and manages the business units.

The Corporate Core is comprised of the CEO, his or her senior management team (e.g. CXO), and a defined set of support functions necessary for the entire organization. The Corporate Core can be categorized along a spectrum of 4 different corporate management models:

1. Holding Company
2. Strategic Management
3. Active Management
4. Operational Involvement

These 4 management models are defined by the way senior management and the Corporate Core engage with the rest of the organization. The type of management model has direct implications on CEO succession, as well as other implications for the leadership team.

This presentation discusses these 4 models of management in-depth. Additional topics discussed include CEO tenure, Value Creation, CEO characteristics, among other topics.

This deck also includes slide templates for you to use in your own business presentations.

The PPT delves into the nuanced differences between insider and outsider CEO tenures, highlighting how internal hires tend to have longer tenures compared to those brought in externally. This insight is critical for organizations considering succession planning and the impact of leadership continuity. The analysis extends to unplanned turnover, where the reasons for CEO exits are dissected, providing valuable data on the stability and challenges within each management model.

The presentation also includes a comprehensive comparison of forced turnover rates across the four models, revealing that demotion is more prevalent in non-holding management structures. This data-driven approach equips executives with the knowledge to anticipate and mitigate potential leadership disruptions. The deck is not just theoretical; it offers actionable templates for immediate application in your strategic planning sessions.

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CEO PPT SLIDES

CEO Tenure Analysis across Management Models

This PPT slide analyzes CEO tenure across 4 management models, revealing significant variations in leadership duration. The "Holding" model has the longest average tenure at 6.5 years, suggesting stability beneficial for long-term strategic planning. In contrast, the "Operational Involvement" model shows the shortest median tenure at 4.9 years, indicating higher turnover due to operational demands. The "Strategic Management" and "Active Management" models have median tenures of 5.3 and 5.0 years, respectively. Notably, 39% of CEOs in the "Holding" model remain for eight years or more, while only 17% in the "Operational Involvement" model exit in under 4 years. This data underscores the impact of management structure on leadership stability and informs CEO succession planning aligned with business objectives.

CEO Characteristics across Management Models

This PPT slide presents a comparative analysis of CEO characteristics across 4 management models: Holding, Strategic Management, Active Management, and Operational Involvement. The first chart shows that 23.6% of outgoing CEOs in the Operational Involvement model have prior public company CEO experience, significantly higher than the 8.7% to 10.2% in other models, suggesting a preference for seasoned leaders. The second chart reveals that 14.1% of incoming CEOs in this model also serve as chairman, indicating a trend toward consolidating leadership roles for enhanced decision-making efficiency. The third chart illustrates that 44% of outgoing CEOs from the Strategic Management model transition to a chairman role, with 40% in the Operational Involvement model, highlighting a correlation between management style and post-tenure leadership retention.

Overview of the Holding Company Management Model

The Holding Company management model features a diversified structure and disengaged management style, with the CEO acting like a hedge fund manager overseeing a portfolio of investments. This model appeals to organizations favoring a hands-off approach, allowing second-tier executives to manage daily operations. The CEO focuses on outcomes from subsidiaries rather than processes, prioritizing high-level performance metrics. The Corporate Core establishes managerial and financial discipline, ensuring accountability despite the CEO's limited operational involvement. Value is created through effective portfolio management, highlighting strategic oversight over operational details. Berkshire Hathaway exemplifies successful application of this model, offering insights for potential customers.

CEO Tenure Analysis: Insiders vs. Outsiders

This PPT slide analyzes CEO tenure based on hiring background—insiders versus outsiders. Insider CEOs average 6.3 years, while outsiders average 4.5 years, indicating that internal promotions lead to longer tenures. The analysis categorizes tenures into 4 management models: Holding, Strategic Management, Active Management, and Operational Involvement. Insiders maintain consistent tenures across models, with the Holding model at 6.3 years. In contrast, outsider tenures are shorter, peaking at 4.5 years in the Holding model and dropping to 3.3 years in Operational Involvement. This suggests that outsider CEOs struggle more with organizational dynamics. The data excludes interim CEOs and turnover from mergers and acquisitions, focusing on permanent appointments, offering insights for CEO succession strategies and the advantages of internal promotions.

Understanding Four Distinct Management Models

This PPT slide provides an overview of 4 management models: Holding Company, Active Management, Strategic Management, and Operational Involvement. The Holding Company model is highly diversified and features a disengaged management style, allowing independent operation of various businesses. Active Management involves closer oversight and collaboration among linked organizations, focusing on operational guidance. Strategic Management emphasizes senior management's role in setting strategic direction and performance objectives for related businesses, indicating a proactive approach. Operational Involvement reflects a hands-on management style, where senior leaders engage in daily operations to align operational goals with strategic objectives. Organizations can transition between these models, showcasing flexibility in management styles to adapt to evolving business needs.

Active Management Model: Corporate Core Engagement Strategy

The Active Management model emphasizes the Corporate Core's role in overseeing business units and enhancing operational decision-making. This model fosters integration among organizational components, facilitating accountability and collaboration in strategy execution. The Corporate Core engages with business units to co-develop plans, aligning operational effectiveness with value creation. Defining rules of engagement between the Corporate Core and business units is essential for clear communication, determining when the Corporate Core should intervene in decisions versus when business units can operate independently. This delineation supports operational efficiency and strategic objective alignment. An example of McKesson illustrates the practical application of the Active Management model, demonstrating its potential to enhance organizational coherence and agility.

Source: Best Practices in Leadership, Strategic Management, CEO PowerPoint Slides: 4 Models of Management PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting