St. Gallen management concept

The St. Gallen Management Concept (SGMK) is an approach to find answers to many questions relating to the management, design and organization of companies that are not only partially correct for themselves, but also in a holistic sense as one coordinated overall answer can be understood.

At the core of the SGMK is the integration of diverse influences and the representation of their mutual relationships in a network of relationships. If an overall problem is broken down into sub-questions, and if the sub-questions are each answered individually with partial analytical investigations, there is a risk that they will not provide a self-contained, consistent solution to the overall problem. With its holistic understanding, the SGMK offers itself as a thought pattern in a complex world in order to enable the manager of an organization to adopt a consistent attitude.
The SGMK distinguishes between a normative, a strategic and an operational dimension. According to BLEICHER, the three dimensions of the SGMK are defined as follows:

1. Management on the normative level concentrates on the general goals of the company with principles, norms and rules of the game. The focus is on the corporate vision on which corporate policy, corporate governance and culture are based. The aim of normative management is to create benefits for the reference groups, for the internal and external environment of the company.

2. Strategic management means building, maintaining and using potential for success for which resources have to be used. The starting point are the missions of normative management. A distinction is made between existing and future success potentials: Existing success potentials stand for realized strategic success positions, whereas new success potentials are aimed at the ability to stand out against the competition in the future.

3. Operational management ensures the operational implementation of normative and strategic management. In the economic area, operational management is aligned on the level of performance, financial and information management processes and, in the social area, on the effectiveness of the management of employees.

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  • St Galler management model

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