Gary Hamel, author and co-founder of the Management Innovation eXchange (MIX), believes management for the 21st century must be reinvented. Today’s businesses are challenged by accelerating change, hyper competition, and shared knowledge. To be successful, businesses must be adaptive and innovative, while engaging employees.

The Internet has impacted business models. (A business model is a method by which a company makes money.)  For example, Dell revolutionized the personal computer business with an aggressive direct purchase business model and early adoption of the Internet.

Yet, the Internet has had little effect on management models. Hamel says the future of management can be seen on the Web, which is adaptable, innovative and engaging. The values of the Web include openness, flexibility, and collaboration. User-driven online services which rely on user collaboration are known as Web 2.0. They include peer-to-peer networking, blogs, podcasts, and online social networks.

In this excerpt from the University of Phoenix Distinguished Guest Video Lecture Series, Hamel discusses "what it means to build organizations that are fundamentally fit for the future—and genuinely fit for human beings."

How can managers use the tools of the Web to create engaging places to work?