Papers by Hans Strikwerda
Behoudens de in of krachtens de Auteurswet gestelde uitzonderingen mag niets uit deze uitgave wor... more Behoudens de in of krachtens de Auteurswet gestelde uitzonderingen mag niets uit deze uitgave worden verveelvoudigd, opgeslagen in een geautomatiseerd gegevensbestand, of openbaar gemaakt, in enige vorm of op enige wijze, hetzij elektronisch, mechanisch, door fotokopieën, opnamen of op enige andere manier, zonder voorafgaande schriftelijke toestemming van de uitgever. Voor zover het maken van reprografische verveelvoudigingen uit deze uitgave is toegestaan op grond van artikel h Auteurswet dient men de daarvoor wettelijk verschuldigde vergoedingen te voldoen aan de Stichting Reprorecht (Postbus , KB Hoofddorp www. reprorecht.nl). Voor het overnemen van gedeelte(n) uit deze uitgave in bloemlezingen, readers en andere compilatiewerken (artikel Auteurswet) kan men zich wenden tot Stichting PRO
MAB, Feb 1, 2013
SAMENVATTING Er wordt vaak verwezen naar de Nederlandse Corporate Governance Code (NCGC) als bron... more SAMENVATTING Er wordt vaak verwezen naar de Nederlandse Corporate Governance Code (NCGC) als bron voor normen voor goed bestuur van ondernemingen. Wanneer de NCGC tegen het licht wordt gehouden van de feitelijke praktijk in het bedrijfsleven, in het bijzonder de kritische rol van de functie van management control en de problemen daarmee, dan vraagt dit om een aantal correcties in de NCGC. Daarnaast speelt een institutionele verandering in de vorm van de gevolgen van de toenemende rol van ongecodificeerde en persoonsgebonden kennis voor de eigendomsverhoudingen rond ondernemingen. Deze wordt wel erkend door de kapitaalmarkt, maar niet in systemen voor corporate governance en vormt een impairment van de institutionele grondslagen van het systeem voor corporate governance, waarmee in de praktijk rekening moet worden gehouden. Het vertalen van die verschuiving in eigendom in een code voor corporate governance is een internationaal vraagstuk. Vandaar dat in dit artikel een onderscheid wordt gemaakt tussen correcties en vernieuwing. De in dit artikel geformuleerde inzichten hebben consequenties voor hoe om te gaan met de vereiste van pas-toe-of-leg-uit. RELEVANTIE VOOR DE PRAKTIJK In de praktijk van corporate governance blijkt er sprake te zijn van een aantal onduidelijkheden, die er mee te maken hebben dat de NCGC een te beperkte doelstelling kent en eenzijdig berust op een verouderend concept van de onderneming. Dit artikel biedt inzichten om in de praktijk met meer onderscheidend vermogen tot oordeelsvorming te komen in het proces van toezicht en oordeelsvorming. 1 Inleiding De Nederlandse Corporate Governance Code (NCGC) is verplicht voor beursgenoteerde ondernemingen, maar wordt voor andere ondernemingen en ook voor de verschillende non-profitsectoren veelal als uitgangspunt genomen voor sectorspecifieke corporate governance codes. Ook de Hoge Raad stelt dat de Nederlandse Corporate Governance Code mede een
Dit boek geeft op basis van een analyse van cases en interviews antwoord op de vraag waarom het t... more Dit boek geeft op basis van een analyse van cases en interviews antwoord op de vraag waarom het toezicht zo vaak tekortschiet en geeft adviezen om dit te vermijden. De auteurs analyseren en beschrijven dilemma's en geven oplossingen voor de dimensie van integriteit in besturen en toezicht. Integriteit is meer dan zich aan regels houden, het gaat ook over het doorzetten van noodzakelijke innovatie en transformatie van organisaties in de moderne economie. Integriteit heeft niet alleen betrekking op het handelen of niet-handelen van concrete personen, integriteit gaat ook over de opzet en werking van organisaties. In die context gaat het boek ook in op de psychologische aspecten van integer gedrag.
SSRN Electronic Journal, 2005
In the economy of the second industrial revolution firms deployed only a limited number of distin... more In the economy of the second industrial revolution firms deployed only a limited number of distinct operating models. These are: the functional model, the holding, the multi-product-division, country-division-model, the split-business chain and the Verlag-model. These models implicitly are based on a number of assumptions with respect to economic characteristics of technology deployed, resources, institutional environment, scarcities in the economy and human capital. Firms selected operating models not consciously rational, but on basis of thoughtless rationality and especially on basis of convention and emulation of operating models deployed by competitors. Each of these models not only served as a practical translation of underlying economic models of firms, they also, by intention and convention, turned into control models as well. Also, these operating models turned into socially accepted roles and identities. As a result the consciousness with respect to the underlying economic model of a firm, respectively the awareness of - economic - assumptions underlying such popular models as the multi-divisional form, never developed. Even the economic organization theory, using Coase's first theorem of 1937, fails to do so. Since scarcities in the economy are changing, so are economic models, and thus should operation logics. This paper explains why this process is half hearted, lack of awareness of underlying assumptions being one explanation, lack of institutional change being another. This phenomenon is not restricted to the era of management of firms itself, but is also to be found with practitioners like management consultants, controllers and auditors. Also this phenomenon of half hearted adaptation of operating models to the new economic realities, is to be found in many of the textbooks on management, strategy and organizational behaviour. This paper argues that it is possible to design the internal organization of firms on basis of economic models for value creation and rent appropriation. Apart from the contribution of this paper to the field of organization, it also raises questions with respect to the foundations of the field of business administration. This paper argues in line with Williamson's argument for institutional change, that and how the foundations of business administration should be redefined as a prerequisite for economic growth.
Samenvatting De professie van organisatieadviseurs bevindt zich in een crisis. Opdrachtgevers wil... more Samenvatting De professie van organisatieadviseurs bevindt zich in een crisis. Opdrachtgevers willen noodzakelijke veranderingen zelf doorvoeren. De organisatieadviseurs betalen nu de prijs voor de snelle omzetgroei van eind jaren negentig die meer met het leveren van handjes werd gerealiseerd dan echt advieswerk. Echt advieswerk, zo leert de geschiedenis van het vak, bestaat er uit de opdrachtgever los te maken uit zijn verouderde werkwijzen en mensbeelden om zo een nieuw niveau van economische groei te realiseren. Zulke veranderingen zijn steeds conflictueus. Met de omslag van wetenschappelijk gefundeerd adviseren naar het verkopen van succesformules hebben adviseurs ook hun vermogen verloren om opdrachtgevers te helpen met fundamentele veranderingen om te gaan. De noodzakelijke verandering zal niet uit de professie zelf voortkomen, daarvoor is er teveel sprake van gevestigde belangen bij bestaande verhoudingen, posities, opvattingen en methoden. De echte veranderaars staan buiten de professie en zullen voorlopig niet een nieuwe institutie vormen. De professie zelf glijdt af naar een gewone branche vereniging. Steekwoorden: organisatieadviseur, organisatieverandering, institutionele verandering. Is er nog behoefte aan professionele organisatieadviseurs? J. Strikwerda Organisatieadviseurs hebben hun oorspronkelijke roeping uit het oog verloren. In plaats ter wille van de vooruitgang hun opdrachtgevers los te slaan uit verouderde routines en opvattingen zijn ze het verlengstuk van die opdrachtgevers. Daarmee ondergraven organisatieadviseurs hun bestaansrecht. Voor een selecte groep adviseurs is er een uitweg uit de crisis.
SSRN Electronic Journal, 2014
Maandblad Voor Accountancy en Bedrijfseconomie, 2004
In dit artikel zal corporate governance worden beschouwd vanuit het perspectief van economische g... more In dit artikel zal corporate governance worden beschouwd vanuit het perspectief van economische groei, het uiteindelijke doel van ondernemen. Daarvoor is het nodig dat het perspectief van waaruit corporate governance de laatste tijd is beschouwd, juridisch en accountingtechnisch, wordt verbreed. Daarbij komt naar voren dat nieuwe technologieën, de exploitatie van kennis en wijzigende schaarsteverhoudingen ondernemingen voor nieuwe control-vraagstukken plaatsen, verdeling van de residual claim en zeggenschap. Een aantal grondslagen van corporate governance is in het geding. Het artikel eindigt met een aantal suggesties voor verdere discussie en nader onderzoek. Omdat in dit artikel enkele economische factoren en enkele psychologische factoren worden benoemd die van belang zijn voor beheer, een effectief toezicht en dus verantwoording, is dit artikel niet alleen relevant voor auditors en voor juristen die werkzaam zijn op het gebied van corporate governance, maar vormt het vooral ook ...
SSRN Electronic Journal, 2013
In studies of corporate governance by default information asymmetry is assumed, based on the prin... more In studies of corporate governance by default information asymmetry is assumed, based on the principle--agent theory, between investors and executives, and also by default it is assumed that executives have superior information over investors. In this paper I apply the more rich theory of information from cybernetics, compared to the mathematical theory to this assumed information asymmetry in combination with the theory of decision making, especially with respect to producing eidetic information. The quality of eidetic information turns out to be more critical as is the management or pragmatic information, with respect to the longer--term success of a firm and subsequently its value over the longer term. Due to e.g. psychological phenomena like dominant logic or belief conservation, executives not always produce good quality eidetic information and subsequently decide poor strategies. More in general it can be concluded that the assumption of information asymmetry needs to be understood per type of information and per each phase in decision--making. The resulting model provides a more precise insight in what value investors and non--executives may contribute to improve the quality of the information in a system of corporate governance and thus its effectiveness. Control Rights 1. Initiation -generation of proposals for resource utilization and structuring of contracts, entrance in and exit from activities 2. Ratification -veto power over implementation of decision initiatives; test of proposed decision against mission, risk profile, set targets (ROI, NPV), assumptions made 3. Implementation -execution of ratified decisions 4. Monitoring -overseeing the execution, performance measurement & evaluation, issuing corrective actions and implementation of rewards CEO, (Executive or Management) Board General Meeting of Shareholders Supervisory Board / Non-executive members
SSRN Electronic Journal, 2008
ABSTRACT Increasingly executives and non-executives start to grumble about a governance system th... more ABSTRACT Increasingly executives and non-executives start to grumble about a governance system that forces them to spend all their time on compliance, risk management and proper reporting. In fact, the real task of a governance system is to foster growth. Good corporate governance contributes to growth and performance, both at the level of the individual firm and at the macro-economic level. However, to achieve the growth we want, we need to see corporate governance beyond the legal-audit approach that is dominant today. Corporate governance will have a more effective contribution to accountable entrepreneurship if a more comprehensive view is adopted on its tasks and field of operation different from the present reductionistic legal-accounting approach. Amongst others, a system of corporate governance has to address the psychological mechanisms at play in restricting the performance of the firm, for example dominant logic and satisfying behaviour. Also a system of corporate governance should be capable to apply multiple views on the firm, not just the perspective of the executives themselves. By applying multiple perspectives, non-executive members of the board, respectively the supervisory board (in jurisdictions like e.g. Germany and The Netherlands) can contribute to the entrepreneurship of the firm, without neglecting the need for proper accountability and compliance. The apparent contradiction between entrepreneurship and compliance can be bridged when a full view is taken at the question when is the board in control? Apart from the legal-audit view on in control nine other dimensions of control can be discerned, and should be taken into account. This paper elaborates a richer definition of corporate governance, takes a broader view on the functions of a system of corporate governance, redefines corporate governance from a single level issue to a multi-level system, elaborates on the different views on control in order to transcend the present dominant legal-accounting view to enable corporate governance what it is supposed to do: to contribute to the welfare of society.
SSRN Electronic Journal, 2008
A field research, commissioned by the Dutch Foundation for Management Studies, on the state of th... more A field research, commissioned by the Dutch Foundation for Management Studies, on the state of the application of the concept of business unit-organization (M-form) in the Netherlands, has produced some noteworthy results. Through interviews with 36 organizations, most for-profit companies (including Dutch subsidiaries of multinationals), two non-profit institutions and two government agencies, the following was found. The concept of unit management, that is to organize the firm in a number of self-contained business units as profit centers, is still very strong in the theory-in-use of managers and as a basis for accounting systems. However virtual no business unit any longer is self-contained organized, contrary to the definition of the M-form. All business units, in varying degree, depend on resources outside the unit to achieve their objectives. In at least five cases the mental anchoring to the unit-concept has resulted in debilitating problems with respect to account management and with project management, organizational entities which are needed to satisfy the Chandlerian criteria of fit-to-market and fit-to-strategy. A small number of companies have overcome this problem and similar dilemmas by defining accountability for turnover and profit & loss simultaneously over multiple dimensions (product, region, account, market segment, industry), for each dimension a separate manager is accountable, contrary to what is assumed in the literature on economic organization theory, accounting theory and management control. Examples of firms doing so are ABN AMRO, IBM, Microsoft, ASML, PwC and some others. Those companies have commensurate multidimensional management reporting, management information, and coordination & control processes, and are successful companies (except ABN AMRO which is unbundled by three other banks). The reason to operate a multidimensional organization seems to be the emergence of multidimensional markets, to need to exploit economies of scope, especially with respect to knowledge, to have higher effectiveness in management control, to be more flexible, to reduce resource biased risk averse target setting, and to appropriate more value from the market in the case of network industries. The concept of the multidimensional organization was presaged by Ackoff (1977) and Prahalad & Doz (1979) and Prahalad (1980) but has virtual disappeared from the literature since then. Its present emerging can be explained by using Arrow's (1974) The Limits of Organization, especially Arrow's prediction of the consequences of a fall in costs of information for the agenda of the firm. This paper will describe the multidimensional organization as an empirical phenomenon, explaining its workings and its raison d'être in operational terms. In addition to that, using Williamson's efficiency hypothesis, the efficiency of the multidimensional organization is discussed whether the multidimensional organization is more efficient as is the M-form. This paper does not in the first place aim, as is common, to make a contribution to existing literature. Its first purpose is to report on a new empirical phenomenon. 1 1 The book resulted from this research is published in Dutch: Strikwerda, J. (2008). Van unitmanagement naar multidimensionale organisaties. Assen-Den Haag: Van Gorcum-Stichting Management Studies.
SSRN Electronic Journal, 2011
In this inaugural address the consequences of the new economy (the information economy) for resea... more In this inaugural address the consequences of the new economy (the information economy) for research and education with respect to management and organization are explored. The information economy implies a shift from sociology based organization theory to economic organization theory, with corresponding shifts in the scope of research and education on the subjects of management and organization.
SSRN Electronic Journal, 2012
Organization design is the discipline within the field of organization theory and management theo... more Organization design is the discipline within the field of organization theory and management theory aimed at creating efficient organizations of firms. In the twentieth century organization design, at least at the governance level of organization, used to be merely a choice between a limited number of alternative organization forms. Due to a number of developments the scope, the design variables and design criteria need to be reconsidered. Especially Chandlers design rule ‗structure follows strategy' is to be questioned and seems to be replaced by ‗processes follow proposition' (the customer value proposition). The focus in the twentieth century on structure as the parameter of design, which was replaced by processes in the nineties, now according to Herbert Simon appears to be replaced by the design of the information space of the firm and the design of the objective function of the firm and those within its organization, due to the declining costs of information and communication. The design of the objective function also answers the issue that firms need to adapt their internal organization in view of the weakening of the institutions in society, on which in the twentieth century a number of processes within the internal organization were based. Due to the emergence of new business models and new type of customer value propositions, a more precise design of especially processes is needed in which structure as configuration plays a secondary role. Because the 21 st century firm needs a high capacity of data processing and information in the modern firm is a resource to be exploited, new conditions are needed to facilitate workers to turn data into new revenue streams. This requires an approach to organization design which includes management accounting and information management, as well specific elements of organizational behavior. This paper provides an overview of changes in the field of organization design and its institutional context, based on existing publications and laying the groundwork for a new multidisciplinary integrative approach for organization design as induced by the changing nature of the firm.
SSRN Electronic Journal, 2009
ABSTRACT The traditional policy of most multinational corporations (MNC) with respect to their su... more ABSTRACT The traditional policy of most multinational corporations (MNC) with respect to their subsidiary boards was or even still is to reduce these boards through composition, information and superseding these through an integrated management system to the bare local legal requirements and not having these play a role in the control of the firm. As far subsidiary boards play a role in the control it is for ownership control, not for (value creating) coordination control. Although this policy appears to be reinforced by requirements induced by the international finance market to the governance of firms, especially the requirement to be in-control, and by NGOs with respect to social accountability, two other opposing forces can be identified. First is that immobile local sources and the emancipation of host country’s political and economic system increase the power of subsidiary boards. Second is that the changing strategies of MNCs, new operating models, mobility of people as resources and the declining costs of information, force MNC to switch from resource allocation and its corresponding type of control to resource mobilization. Thus creating up the need to include the boards of subsidiaries in the process of coordination control, not just ownership control. This will MNCs make to reconsider the tasks, roles, composition and the powers of their subsidiary boards.
Chandler’s dictum ‘structure follows strategy … but the market is the common denominator ’ during... more Chandler’s dictum ‘structure follows strategy … but the market is the common denominator ’ during the twentieth century was answered effectively by the one-dimensional multi-divisional organization, both in business as in government. Today’s markets have a dynamic multidimensionality; customers having multiple preferences, dependent on time, day of the week, context of activities, and having a choice of information and distribution channels. To be in-control in such market requires multidimensional management accounting systems. Resources have changed from physical to uncodified personal knowledge and resourcefulness. With that the basis of motivation of workers is changing from being position oriented to contribution oriented. The resource allocation process has to give way to resource mobilization. A number of firms effectively have answered this complexity by adopting a multidimensional organization. The paper explains how these firms are effective and by what social, administrat...
In de context van de dynamische informatie-economie met maatschappelijk veranderende eisen aan on... more In de context van de dynamische informatie-economie met maatschappelijk veranderende eisen aan ondernemingsbestuur, is een gedifferentieerder begrip nodig van wat bestuurlijke informatie is en welke eisen daaraan wel of niet gesteld kunnen worden. Dit artikel levert aan het denken daarover een bijdrage vanuit de perspectieven van hedendaagse eisen aan ondernemingsbestuur, vanuit de taken geformuleerd in de bestuursdoctrine en vanuit het perspectief van de cybernetische informatietheorie.
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Papers by Hans Strikwerda