Management theory, the backbone of business schools and consultants across the globe, is facing a crisis. The gurus who have dominated the field for decades are ageing, and no new generation of thinkers has emerged to replace them. The ideas they espouse are increasingly criticised for being out of date, failing to respond to the fast-paced, disruptive business environment of the digital age.
The business world, once a rich source of new theories and strategies, is now more likely to recycle old ones. Management theories often fail to stand up to scrutiny, with many lacking empirical evidence to support them. This has led to a growing cynicism towards the field, with some likening it to astrology.
At the same time, business schools, the main purveyors of management theory, are under attack. They are criticised for promoting a short-termist mentality and failing to instil ethical standards. Moreover, their costly MBA programmes are seen as providing little value for money.
The management theory industry needs a revolution, similar to the one Martin Luther brought to the Catholic Church. This would involve challenging the status quo, developing new theories that reflect the realities of the modern business world, and ensuring these theories are empirically sound and not just the latest fad. The future of management theory depends on it.
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