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[23] Already the first-generation SGMM, developed in the early 1970s, was guided by the idea of an open-minded approach to problems rather than a recipe-like imparting of knowledge (Ulrich & Krieg, 1972, p. 9). The model was based on systems-oriented business studies, which conceptualized companies as systems. The authors described systems thinking as holistic, process-oriented, interdisciplinary, analytical, synthetic, and pragmatic thinking (Ulrich & Krieg, 1972). Their approach took integrative thinking into account, while facilitating a cross-functional and cross-subdisciplinary approach to practical issues.

Figure 1-3: First-Generation SGMM: Management Model, Environmental Model, Company Model

Source: Ulrich and Krieg (1972, pp. 20, 27, 31)

[24] The first-generation SGMM has three parts: the company model, the environmental model, and the management model (Figure 1-3). The aim was to support management by representing the enterprise both as a productive and as a technical system, and by providing a tool for its analysis.

In the company model, the following five approaches were analyzed in more detail (Ulrich & Krieg, 1972):

– The company’s environment (stakeholders, environmental spheres)

– Markets and market performance (procurement and sales markets, resources and market performance)

– Functional areas (execution area, supply area, management area)

– Design levels (technological, economic, social)

– Structuring of tasks: repetitive and innovative tasks (preservation and renewal).

The environmental model with the environmental spheres and stakeholders is still part of the current SGMM.

In the field of corporate management (management model), three classification criteria were used (Ulrich & Krieg, 1972):

– Management levels (corporate politics, planning, disposition)

– Management phases (goals, means, processes)

– Management functions (deciding, initiating, controlling)

These structuring approaches recurred similarly in the subsequent generations of the SGMM. Over time, the model was repeatedly adapted to current findings in business studies and to management challenges.