Reviews (2)

A roadmap for process innovation and improvement
Davenport presents a practical roadmap for process improvement and process innovation which I have found very useful as a practitioner. Although not prescriptive, the text provides practitioners with useful very insights which can form the basis of an organisation's business process innovation/improvement methodology.

Must read
This is a well-written book on the subject of process or business reengineering. It is written in a non-technical language, wastes few words, and covers the entire spectrum of topics that are essential to a successful reengineering effort. The discussions place a significant emphasis on the role that information or computer technology play today in the reengineering effort, particularly how this technology can facilitate the overall effort. I found the book largely sticking to the overall thread however at times it did become a wee bit academic to flip through the sections. All in all, a very good read. ... Read more

Amazon.com

The days of lifetime jobs and employee loyalty are over. Instead, competition and other market forces lead companies to lay off people, and employees to leave for the highest bidder, writes Peter Cappelli in The New Deal at Work. These changes in the workplace are making a salient impact on companies, employees, and the nation. For instance, companies are less likely to provide employee training and development, for fear employees will be poached by other firms. At the same time, companies are more apt to hire outside consultants than full-time employees, in order to stay competitive in a rapidly changing environment. This affects everything from national educational policy to employee morale to corporate management and payment principles, warns Cappelli, who is a Wharton School professor of management and codirector of the U.S. Department of Education's National Center on the Educational Quality of the Workforce. The book, well researched and filled with footnotes, provides historical perspective and insight for company leaders looking to manage the current economic reality. It's aimed primarily at managers, but anyone concerned about the nation's economic policies will gain some valuable insight. --Dan Ring ... Read more

Reviews (3)

Insightful Analysis of Complex Trends
Cappelli's main idea -- that HRM is changing because the external marketplace is being brought into the firm -- really gets to the essence of changes in the employment relationship. Once you've read the first two chapters, you'll never think about HRM the same way again. However, I wish Cappelli had explored the complexity of labor markets and practices more deeply -- we really have a multi-model HRM now, rather than the "new deal" he outlines, and probably always will because of differences in product and labor markets and industries.

Insightful Reading
The New Deal explores the breaking of the structural ties that modern employees have with employer. It strives to explain the employee's basis for his association with his managers. A good read..no doubt.

A Wakeup Call for Middle Managers !
Cappelli provides an understanding of the changes in the social and psychological contracts between employees and their employers in todays world. I feel as if blinders have been removed from my eyes and that I now have the tools to understand the changing work environment and labor market of the new economy.

A must read for those in large companies that have existed longer than 40 years (or are over 40 years old themselves).

For for those who believe they have security and entitlement based upon their "knowledge of the company"... Here's a News Flash " Organizational man is dead ..."

Thanks Professor for the heads up ! ... Read more

Amazon.com

"Metanational" is the term that Jose Santos, Peter Williamson, and YvesL. Doz--management and technology professors at the international INSEADgraduate school of business--coined to describe a new type of globalcorporation. It refers, they explain in From Global to Metanational, to"a company that builds a new kind of competitive advantage by discovering,accessing, mobilizing, and leveraging knowledge from many locations around theworld." And as they unveil and dissect the concept, it becomes apparent that itmay indeed be an apt description for those worldwide enterprises most likely tosucceed in our rapidly changing times. Based on interviews with 36 companiesfrom America, Asia, and Europe (including long-established firms like 3M andToyota and newcomers like Acer and Shiseido), the authors describe innovativeways to efficiently tap into "pockets of technology, market intelligence and ...specialist knowledge scattered around the world," rather than relying solely oninput from a home nation or a few select locales. They explore how trailblazersare identifying this information wherever they find it, parlaying it into newproducts, services and processes, and merging the result with all sales,distribution, and marketing efforts. Anyone involved in multinational businessshould find this both provocative and potentially useful. --HowardRothman ... Read more

Reviews (5)

The new small world
I was delighted to grab a better understanding on global competitiveness and the new productive opportunities provided by the Metanationals.

You don't know about it yet?? God, your business is under great danger...

nothing new here
Just a recap of ideas about globalization. They didn't even coin the term metanational, they probably read Kim Stanley Robinson's Mars Trilogy (Red Mars, Green Mars, Blue Mars) and stole it from him. Furthermore, the book doesn't even begin to deal with the issue of democracy in global corporations. These so-called "virtual states" are feudal by design, and fundamentally backwards. They may make money for their CEOs and boardmembers, and "stimulate the economy" (which really means helping other CEOs and boards make money), but where does all that money come from? Ultimately globalization just centralizes power and money, putting us back in the dark ages.

Finding knowledge in unlikely places
What does a large company need to concentrate on for sustained success in a globalized world? Doz and his colleagues claim that it is to become metanational and to become good at innovating from a platform of bringing together knowledge from many different parts of the world. Metanationals differ from globalized companies in that they recognise that new ideas, products or directions may originate somewhere other than the corporate centre.

The focus of the authors is on innovation and they argue that this requires that the organization becomes good at :
• identifying where good ideas and special competencies are;
• mobilizing the often scattered capabilities and opportunities (they use the term 'becoming a magnet' for such capabilities); and
• optimising the size and configuration of operations for efficiency, flexibility and financial discipline.

This is a book that makes an important point about success in a globalized world, but presents one factor in success as if it was the whole. As with a number of books, I had an uncomfortable feeling that the content of a very good article was expanded into an only moderately good book.

The core message is important and useful. Organizations that operate on a global scale need to move beyond the extension of a unitary culture into new localities and recognise that new knowledge is found in unlikely places. They need to become excellent at recognising that knowledge, becoming an attractor for it, mobilizing it to provide a superior stream of innovations and operationalizing production, distribution and marketing into diverse markets.

The weakness is that the book is written at a fairly high conceptual level - for all the detailed example - that fails to get to grips with how to manage multiple cultures or the detail of innovation, or the issues of governance across countries. It also has surprisingly little on the major changes that are occurring in world consumer markets.

The book also falls into the 'one size fits all' trap. Issues of being effective globally are very different for a consumer fashion business, a high tech product or service industry and a major commodity business, but this is not recognised explicitly in the book.

Must reading for international business
This is one of the most refreshing books about managing multinationals that I have read. It goes one step beyond the idea of a transnational, proposing a new model of how a company can succeed by prospecting the world for new knowledge about technologies and customer behaviour and using this to innovate. It won't be easy to implement, but the last three chapters provide a good starting point about how to make it happen. I was convinced that if we didn't try and build a metanational we would simply be left behind.

Nostalgia for Globalization
The first two chapters tell you the picture and that is it. The kernel is summarized in a table at page 83 (end of chapter 3). Make a copy of this page, file it for later reference, and you are done. At best, this book reviews the vaunted wisdom of globalization, which many companies have been living at and dealing for years. At worst, it recites the squabbles between the global platform (the standardization) and regional initiatives (the deviations and the sensing ends). No specific solution or action is advised for the first & most obvious problem - how to transcend the intracompany transaction, which more than often bogs down companies attempting to quickly profit from the global learning. ... Read more

Book Description

The Harvard Business Review Paperback Series brings managers and professionals the fundamental information they need to stay competitive in a fast-moving world. Gathered in a highly accessible format are the leading minds and landmark ideas that have established the Harvard Business Review as required reading for forward-thinking businesspeople worldwide.

Corporate governance can raise many difficult leadership, strategy, and policy questions within an organization. Harvard Business Review on Corporate Governance is an essential reference, focusing on both policy and strategic challenges, for senior managers working with boards or dealing with governance issues. ... Read more

Reviews (1)

a variable overview about governance
This paperback is designed to be a reference, focusing on both policy and strategic challenges for senior managers working with Boards and Board members. Some of the chapters are articles; others are transcripts of interviews with key business leaders.

Like any edited series, there is a range of quality here.

Some of the pieces are far-out prescriptions from academics that will never see the light of day.

And some of the pieces are practical, thought-provoking ideas written by academics, consultants, and Board members themselves.

For example, Walter Solomon serves on the Board of Neiman Marcus Group, Hannaford Brothers Company, Tufts Health Plan, and Circuit City Stores. He has an excellent article that provides a framework for Board size and composition.

Philip Caldwell is former CEO of Ford Motor Company and former member of the Boards of the following companies: Chase Manhattan, Federated Department, and the Kellogg Company. He notes that the selection of the CEO is one of the most important roles of a Board. It is in the interests of the company that there be viable internal candidates and that the Board have options. It is sometimes in the interests of the incumbent CEO that the CEO be the one to nominate the one and only internal candidate.

For this reason, the Board needs to annually monitor CEO Succession development. The Board also must make sure the program is focused on the competencies of chief executive officers. For example, being a better team player may or may not be a critical issue in the role of CEO. Great team players don't necessarily make great CEOs.

... Read more

Book Description

A No-Nonsense Approach to Customer-Focused Business

In their relentless quest for differentiation, many companies have poured their energies into making their offerings distinctive from competitors'. Yet, according to marketing experts Patrick Barwise and Seán Meehan, in doing so companies have neglected the very basic activities that matter most to customers.

This refreshingly straightforward book argues that it is not the addition of unique gizmos or features that wins and keeps customers, but the steadfast delivery of the fundamentals-products that actually work and reliable services that take place on time.

Barwise and Meehan show that being truly "customer-driven" means consistently fulfilling these types of obvious needs for customers Simply Better than competitors. The authors provide an actionable framework that managers can use to: understand customer needs and priorities; explore why customers do and don't buy a particular brand; decide which "basics" their company should focus on; and overcome the five key challenges to meeting and exceeding their customers' true expectations.

Candid and refreshing, Simply Better refocuses marketers and managers on what really matters to customers-and outlines exactly what companies must do to deliver it.

... Read more

Book Description

Third Generation R&D, written by three senior consultants from Arthur D. Little, provides managers with a new approach that will make R&D a truly competitive weapon. The authors relate how R&D management has evolved from the naive "strategy of hope" approach of the 1950s and 1960s, when companies spent lavishly in the vague expectation that something good would result, to the more systematic approach of the past two decades. But as we enter the 1990s, it is clear that a new generation of R&D management is needed, one that makes the connection between R&D and broader issues of corporate strategy. The third generation of R&D is a pragmatic method for linking R&D to long-term business planning. It shows managers how to integrate technology and research capabilities with overall management and strategy; break down organizational barriers that isolate R&D from the rest of the company; foster a spirit of partnership and trust between R&D and other units; and create managed portfolios of R&D projects that match corporate goals. ... Read more

Reviews (4)

Excellent Book, Thoughful & Precise
Congratulations to the authors! This is a well-written, honest book, which at least addresses the specific differences in outlook between R&D staff and standard business-oriented management. I worked for many years in R&D and fully agree that R&D people do require a unique management approach. Furthermore, the authors are correct in stating that expert input from technical staff is often "not included in the company's higher councils" that leads to alienation of R&D people. On this subject, I would like to add that the book does not address one aspect crucial to good management/R&D working relationships. Nowhere is it stated that R&D people, because of their higher education and expertise, find it difficult to respect managers, who are not expert in the project's subject area, yet are frequently assigned by upper management, to make all the pertinent technical and business project decisions.

By the way, I recently read another very enjoyable book. It openly addresses many of R&D staff's frustrations with management in a typical company, which has clearly not embraced "Third Generation R&D" management principles! It is a hilarious, witty, sharp, satire that brings to life many of the underlying R&D problems covered in "Third Generation R&D". If you feel like a good laugh, do try "Management by Vice" by C.B. Don.

Patrick Desbrow - Peperdine University Student
Roussel et al's 1991 text, Managing the link to corporate strategy, Third Generation R&D describes that evolution of research and development in the corporate business environment. This text provides a guide to link organizations objectives and strategies to their R&D activities. Below is a description of this reader's reactions, big ideas, implications, and lingering questions after completing this book.

Reactions

The theory behind Roussel's text is very well thought out. It offers a set of easy to understand models for developing a third generation R&D environment for your organization. Roussel present these models in an optimistic way that encourages the reader to reconsider how R&D should be managed. This book is an excellent tool for all technology managers. Roussel blends the business and technology disciples together and helps struggling technology managers to bridge the gap between these long separated functions within the organization. For example, Roussel suggests that projects must be organized into portfolios in order to manage risk and return. The concept of project management is a technology disciple while portfolios, and managing risk is a business discipline.

Big Ideas

There are a number of pressures, which require companies to invest in research and development (R&D) activities. These pressures include competition from local and global companies, as well as a decreasing availability of scientists and technologists. The pressures from competitors require companies to continuously introduce "high quality, innovative, cost-effective new products". Roussel's answer to these pressures is third generation R&D. Roussel states that there are three generations of R&D. The first generation of R&D relies on the insights and intuition of technology managers to determine which projects are worth investing time and money. In addition, there is no connection between the R&D projects and the objectives of the company. Top management only considers these projects as a required cost to the company. The second generation of R&D organizes activities into projects and measures the progress against a set of established goals. In addition, the cost of each project is examined against the possible benefits that will result from the research and development. The third generation of R&D technology managers and top management work together as a partnership to selected and evaluate projects. The goals of the organization are aligned with the R&D activities. Projects are organized in to portfolios in order to manage risk and maximize profits. When companies employ a third generation philosophy they are more competitive, more effective with a smaller investment in R&D activities. Roussel also states that there are three types of R&D. The first type is called incremental R&D. This is referred to as small "r" and big "D" and represents small advances in technology. However, the focus is on clever applications of this research. The second type is called Radical R&D. This is referred to as large "R" and often large "D". The focus is to discover new technologies and to produce a commercial viable breakthrough for the organization. The third type is called fundamental R&D or large "R" and no "D". Roussel calls this a "scientific/technological reach into the unknown". The main goal is to develop a depth in research competencies to build future competitive advances. This includes preparing for the long-term commercialization of these technologies. Roussel believes that a company needs to build portfolio of research projects that blend all three of these types of R&D to guarantee prolonged profits and success. Roussel also explains the function of R&D as a tool to (a) defend or expand existing business, (b) drive new business, and (c) broaden and deepen a company's technologies competencies.

Implications

This model for business and technology change has the potential of redefining many organizations. It also can be the competitive advantage, which determines your success over the competition. The interesting fact is that many companies will not make the change and this simple plan may allow for a few companies to rise to the top. This model can also be a catalyst for technology managers to think out side of the box. Many of these managers have both a technology and business background. However, they may not have tried to connect the learning in these two disciples together. This could be that start of a new way of thinking. It definitely has for this reader. Questions

One concern for that this reader has for the book is related to time and change. Many organizations are not prepare to consider third generation R&D as a realist option. The amount of time needed to transform a company into a third generation environment may seem to great to risk. Even the most advance technology companies many see the investment as unreasonable. How would a technology change to the company's paradigm and consider the possibility of a next generation strategy like Roussel suggests?

Matching R&D projects with corporate strategy
This is one of the great classics in research management. All R&D departments can and want to do more R&D than there are funds available. Prioritisation between projects is therefore unavoidable. For many years there was hope that by forecasting income and costs for the projects and comparing the two the most profitable projects could be chosen. Unfortunately that does not work other than for very simple development projects. This book describes the "portfolio method". The portfolio consists of projects. The projects are presented in two-dimensional diagrams. The axes of the diagram can be competitive position and technological maturity, or reward and probability of success, or annual budget and years to completion. Each organisation must decide which diagrams are relevant for their situation. These diagrams form the basis for a meaningful dialogue between the R&D function and other functions in the organisation and with top management. Another great merit of the book is that it introduces a new vocabulary where words are properly defined. Examples of subjects covered this way are types of R&D, technological impact, technological competitive position and project attractiveness. Even though the explanations of the portfolio system in the book are very clear the reader should not think that they are easily introduced. In a report by the European Industrial Research Management Association (EIRMA) of 95 six case studies are presented describing portfolio installation projects. Four represent successes and two failures. At least two conditions are essential for success: interest and support from top management and active participation in the development of the system of all the functions concerned (R&D, and marketing for example). It is impossible for an outsider to impose a standard system.

Inspiring. A book that really helps you to get results
Selection of the most attractive R&D projects is complex and puts strain on an organization. This book offers useful tools. I've tried them. They work ... Read more

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The Set-Up-to-Fail Syndrome, by Jean-Francois Manzoni and Jean-Louis Barsoux, looks into the negative dynamics that unintentionally but unequivocally define far too many relationships between bosses and the people who report to them. More importantly, it also proposes ways to attack the problem where it exists and to keep it from occurring elsewhere. Manzoni and Barsoux, researchers at INSEAD in Fontainebleau, France, first addressed the issue in a 1998 Harvard Business Review article examining how "bosses unwittingly set up some of their subordinates to fail and, more generally, mismanage many of the subordinates they regard as acceptable but lower-than-average performers." After discussing the various causes and effects of this behavior--including why responses from both sides tend to generate "an escalating spiral of malaise and underperformance"--the authors present assorted remedies (such as "the mental adjustments bosses must make before trying to interrupt" this conduct), a framework for interventions (with details, for example, on handling discussions between two parties whose rapport has deteriorated), and a litany of preventive measures (including specific suggestions for getting new relationships off to a positive start). Very well researched with solid, practical advice. --Howard Rothman ... Read more

Reviews (4)

Common Wisdom: Insidious & Pernicious
This work deftly weaves those seemingly abstract and academic studies Psychology 101 students have been reading about for 40 years into the fabric of everyday work experience. The authors are able to put the subtle pattern into high resolution, which at first appears shocking, then depressing, and finally, hopeful.

It was depressing to think that the syndrome is both insidious and pernicious because the common wisdom of most coaching models is a key driver of the syndrome. That is, when a manager notices a performance problem, the appropriate response is to give the person feedback and put them on a "short leash" so that the employee gets extra guidance. On the face, this starts a chain of events:
• Employee perceives the lack of trust, feels cramped by the limited autonomy, as well as being under appreciated.
• Employee responds by withdrawing and reducing unnecessary contact with the boss.
• The Boss takes the withdrawal as confirmation the this is indeed a weaker performer and so shortens the leash even more.
• Progressively, the employee begins to doubt her own capability and ability to contribute, and
• The ugly cycle continues in a downward spiral and the employee has been successfully set up to fail.

It was hopeful to realize that the dynamic is not really based in the coaching model at all. It is based in the very human tendency to categorize and label. It is the common wisdom that there are three kinds of employees: the Stars (or A-Players), the Worker Bees (or B-Players), and the Deadwood (or C-Players). The problem lies in the labeling and how the manager relates to the Worker Bee employee. The Stars have close partnerships with the Boss and are treated as 'trusted assistants." The Worker Bees, on the other hand, have low quality relationships with the Boss and are treated as "hired hands." This stark differentiation in the quality of relationship, based on the label is at the root of the issue. Curt Coffman of the Gallup Organization has said, "We're running as an economy at a 30% efficiency rate because so many workers are not contributing as much as they can..." because a disconnect with an immediate supervisor.

Psychologists say that "Perception is not reality." That is truth in their offices; truth in the workplace is, "Perception IS reality." Unfortunate but true. Manzoni & Barsoux do the business world a great service because they clearly and skillfully lay out how our perception creates unintended bias. This awareness is required by both the Boss and the Subordinate to be able to stop the dysfunctional "dance" that occurs when the Set-Up-To-Fail Syndrome is at work. The hope that they present is that awareness leads to re-evaluation and the reduction of bias.

This is one powerful book; buy it, read it, talk about it.

Good Analysis But Bad Prescription
Being one authored by INSEAD experts, I bought the book with high expectations, believing that FINALLY the truth can be out!!! I read the first few chapters of the book so religiously (almost treating it like my Bible), taking down key points that are so wonderfully said about the self-fulfilling prophecy that many managers have set themselves up to, i.e. to fail. What's disappointing as I come to the middle portion of the book is that authors suggestion on how managers can avoid the SUTF syndrome by taking the first step (not to mention swallowing all their ego and pride) and start initiating a de-SUTF relationship with his/her subordinate even if it means this person might eventually have a chance of not improving at all (due to job mis-fit)??? I returned the book and bought and digested "First Break All Rules" instead.

The Negative Self-Fulfilling Prophecy
This book is based on more than fifteen years of extended and combined research whose primary objective was to reveal the reasons why so many in positions of authority, especially bosses, are so ineffective when managing their subordinates, especially their perceived weaker performers. That is to say, supervisors are often unaware of the fact that they are "complicit in an employee's lack of success. How? By creating and reinforcing a dynamic that essentially sets up perceived weaker performers to fail." Hence the title of Manzoni and Barsoux's book. The authors explain the causes and effects of that "dynamic" (see "Set-Up-to-Fail Syndrome," Chapter 3) and also explain how to avoid it ("Preventing the Set-Up-to-Fail Syndrome: Lessons from the Syndrome Busters," Chapter 9). One of this book's most valuable contributions is comprised of a series of "Tables" which organize and summarize key points. For example:

Table 2-1: "How Bosses See Their Behavior toward Subordinates" which contrasts tendencies of bosses in relationships with weaker and stronger performers.

Table 5-1: "Taking Sides" which presents two views of the same supervisor's observed behavior either as a "great boss" or as an "impossible boss."

Table 7-2: "Taking Responsibility Away from an Employee" which juxtaposes a supervisor's thoughts and feelings about a subordinate with their interaction in dialogue.

Manzoni and Barsoux assert that the set-up-to-fail syndrome is "both self-fulfilling and self-reinforcing, which obscures the boss's responsibility in the process as well as some of the key psychological and social mechanisms involved." My own experience suggests an often great discrepancy exists between modes of behavior determined by conscious and unconscious mindsets. That is to say, many supervisors would vehemently deny that they are "complicit in an employee's lack of success....[by] creating and reinforcing a dynamic that essentially sets up perceived weaker performers to fail." Nonetheless they are. Were they to read this book, they would probably agree that there is such a syndrome and then lament how unfair it is to subordinates who are victimized by it.

One final point. Countless research studies of face-to-face communication have arrived at essentially the same conclusion: Body language creates 60-75% of the impact, tone of voice 15-20%, and content (i.e. what is actually said) only 10-15%. (Percentages vary among research studies but only slightly.) With the publication of this book, Manzoni and Barsoux have made a substantial contribution to our understanding of a widespread but, until now, neglected cause of human dysfunction in the workplace. Whether intentionally or not, a supervisor can sometimes create irreparable damage, especially to those who already feel insecure, by a negative and demeaning "message" which need not be expressed in words but comes through loud and clear nonetheless.

Relationship between leadership and subordinate performance
Jean-Francois Manzoni is Assistant Professor of Accounting and Control at French business school INSEAD; Jean-Louis Barsoux is a Research Fellow at INSEAD. Barsoux is also co-author of 'Managing Across Cultures' (1997). This Harvard Business Review article was published in March-April 1998.

This article is based on two studies designed to better understand the causal relationship between leadership style and subordinate performance - or in other words, how bosses and subordinates mutually influence each other's behavior. Those studies suggest that bosses - albeit accidentally and usually with the best intentions - are often complicit in an employee's lack of success. Manzoni and Barsoux use the term 'set-up-to-fail syndrome' to describe a dynamic "in which employees perceived to be mediocre or weak performers live down to the low expectations their managers have for them." The set-up-to-fail syndrome usually begins surreptitiously and underlying the syndrome are several assumptions/generalizations about weaker performers that bosses appear to accept uniformly. The authors describe these assumptions/generalizations and the impact they have on organizations and relationships. The two costs of the syndrome are the emotional cost paid by the associate and the organizational cost associated with the company's failure to get the best out of an employee. Other costs to consider, often indirect and long term, are: Sapping of the boss' emotional and physical energy, the impact on the boss' reputation, and the impact on the team (team spirit, time management, etc.). So how can we break out of this syndrome? The authors provide a five components framework for effective interventions but they warn that these interventions do not take place very often. In line with the recent emphasis on emotional intelligence, they conclude that higher emotional involvement and investment from bosses is the key to getting the subordinates to work to their full potential.

Good article into a very familiar problem, not just to organizations but also to people. The 'set-up-to-fail syndrome' is mostly based on generalizations by managers and bosses, but is difficult to reverse. The authors provide a solution which is primarily based on emotional intelligence, which is still difficult to learn. I recommend this article as an complement to Daniel Goleman's articles and books into emotional intelligent leadership and management. The authors use simple business US-English. ... Read more

Book Description

In the midst of a changing economy, most executives continue to use a strategy toolkit designed for yesterday's more stable marketplace. As a result, strategies emerge that neither manage the risks nor take advantage of the opportunities that arise in highly uncertain times.

Now, McKinsey & Company consultant Hugh Courtney argues that managers must move beyond the outdated "all-or-nothing" view of strategy in which future events are either certain or uncertain. Instead, he suggests a simple-yet powerful-alternative: Understand the level of uncertainty you are facing in a given situation, and you will make better, more informed strategic choices.

Based on an international review of the key strategy problems faced by over one hundred leading companies, Courtney reveals how executives can develop 20/20 foresight-a view of the future that separates what can be known from what can't.While executives with 20/20 foresight can rarely develop perfect forecasts of the future, says Courtney, they can isolate the "residual uncertainty" they face and use this insight to create competitive advantage in today's turbulent markets.

Unveiling a revolutionary framework for diagnosing to which of the four levels of residual uncertainty a specific strategy choice corresponds, 20/20 Foresight shows how readers can leverage this knowledge to answer three key strategic questions: 1) Shape or adapt to uncertainty? 2) Make strategic commitments now or later? and 3) Follow a focused or diversified strategy?

20/20 Foresight also:

* shows strategists how to tailor every aspect of the decision-making process-from formulation to implementation-to the level of uncertainty faced,
* describes the strategic-planning processes readers can use to monitor, update, and revise strategies as necessary in volatile markets, and
* includes a toolkit for identifying, developing, and testing new strategy options-complete with guidelines for applying the right tool to the right situation at the right time.

A comprehensive approach to strategy development under all possible levels of uncertainty and across all kinds of industries, this is the essential guide for making tough strategic choices in a changing world. ... Read more

Reviews (11)

Measuring Degrees of Probability Amidst Uncertainty
Courtney and his McKinsey associates decided to launch within their firm the Strategy Theory Initiative (STI), a multi-year research effort whose objective was to identify, develop, and disseminate what they learned about a "better approach" to the immensely challenging complicated design/implementation process. (While reading the Preface to this book, I was reminded of one version of a Hebrew aphorism, "Man plans and then God howls with laughter.") The material is carefully organized within seven chapters. In the first, Courtney shares what he and his research associates learned about crafting strategy in an uncertain world; in the next chapter, we are introduced to what are called "The Four Levels of Residual Uncertainty." (All by itself, this chapter is well worth far more than the cost of the book.) Then on to address five separate but related questions:

• Should we shape or adapt?

• Should we begin the process now or later?

• Should we focus or diversify?

• Which new tools and frameworks are needed?

• Which new strategic-planning and decision-making processes are needed?

Of course, Courtney fully realizes that the revelations of the STI research can only guide and inform appropriate answers to questions such as these. He agrees with Mike Hammer that searching for a "silver bullet" is a fool's errand, noting that "there [is] no easy one-size-fits-all solution that could be translated from theory into practice. Business strategists needed new theory [and, in italics] new practices if they wanted to make better strategy choices."

At the height of the Cold War, I recall someone noting that Russian historians could predict the past with absolute certainty. This book's title does not suggest that if you read this book, you can see the future. ("Man plans and then God laughs.") Rather, instead of burying uncertainties in meaningless base case forecasts or avoiding rigorous analysis of uncertainties altogether, Courtney suggests that we "embrace uncertainty, explore it,, slice it, dice it, get to know it." If we do this well? "[You] will reach a wonderful goal: 20/20 foresight." The best available information serves as the basis of the most reliable forecasts which, in turn, improve the chances of devising the soundest strategies.

After summarizing the appropriate toolkit for each level of residual uncertainty (see figures 6-1 through 6-4), and having also suggested various tools and frameworks needed to develop 20/20 foresight, Courtney offers five additional tools in the Appendix: The Uncertainty Toolkit. He briefly but brilliantly explains how to use scenario planning, game theory, decision analysis, system dynamics models, and management "flight simulators." Although this book will obviously be of substantial value to senior-level executives in larger organizations, I think it will be invaluable to others such as CEOs and other decision-makers in small companies. The challenge for all of them is to "tailor strategy to the level of uncertainty," whatever the nature and extent of their competitive marketplace may be. Here in a single volume is about all they need to begin the process. Another thought: This book would be an excellent choice as the basis of a one-day or (preferably) two-day offsite executive "retreat" for strategic planning. Reading it in advance would be required. The first two chapters would be excellent for assisting situation analysis, then on to the next five chapters which could serve as the core of the agenda. (I also recommend that Hammer's The Agenda be consulted, at least by the person who leads the group discussion. And, by the way, that person should NOT be the CEO.) The session would conclude with a review of the consensus achieved, followed by a discussion of how to communicate and collaborate effectively while using various tools, including the five recommended in the Appendix.

Courtney would be the first to point out that, over time, other sources of information and guidance may become necessary. For that reason, he includes clusters of annotated "Recommended Readings" to assist his reader's selection process. Thoughtfully, he adds to their number with other suggestions within his extensive notes.

For at least some individual executives and some organizations, this may well prove to be for them the most valuable business book published during the first decade of the 21st century.

To those who share my high regard for it, I specifically want to recommend (again) Hammer's book as well as Jim O'Toole's Leading Change, Jason Jennings' Less Is More: How Great Companies Use Productivity As a Competitive Advantage, Peter Schwartz' The Art of the Long View: Paths to Strategic Insight for Yourself and Your Company, and finally, Carla O'Dell's If Only We Knew What We Know: The Transfer of Internal Knowledge and Best Practice.

Concise Tools & Framework Guideline
The book provides a concise guideline on business strategy tools & framework, based on 4 levels of 'residual uncertainty'. Courtney repeatedly mentioned the non-dynamic nature of Michael Porter's competitive strategy framework, thus the need of utilizing various 'new' tools (such as Real-Option, Simulation). I find that Porter's work on competitive advantage, value chain, clusters, do incorporate the 'dynamic nature' of the present business world. What Courtney nicely provides is a systematic way to select the relevant 'tool' in the business decision process. But a through understanding and analysis based on 'classic' strategy framework (such as Porter's) is critical in order to achieve business success.

Nothing impressive
The book provides no exciting findings for strategic decision makers. The only idea this book has is to distinguish uncertainties into four levels and it uses this four-level frame in its following discussions. And even the four-level classification is cliche. You can skip contents after chapter 3 without regretting anything.

Nothing impressive
This book provides bascially no new ideas for strategic decision makers. The only idea it has is to distinguish uncertainties into four levels and this book uses the four-level frame in all its following discussions. If you want to read it, maybe you can stop before chapter three and you won't miss any precious insight by skipping the rest of it.

Impressive, systematic approach to handling uncertainty
This book may be one of the most interesting pieces of work to come out of McKinsey. Hugh Courtney recognizes that traditional strategy approaches do not work well in conditions of significant uncertainty. Traditional tools such as Porter's Five Forces, market research, SWOT analysis, and NPV valuation models work only in "level 1 uncertainty". Courtney rightly critiques those who see uncertainty in binary terms, instead outlining four levels of uncertainty each of which require different strategic approaches. Level 2 uncertainty (several distinct possible futures), in addition to the traditional tools, can be tackled with scenario planning, game theory, and decision-tree real-options valuation (ROV) techniques. Companies dealing with level 3 uncertainty face a range of futures and need to use additional tools such as system dynamics models in addition to those of level 2. Companies facing confusing level 4 uncertainty, where there is true ambiguity, can use analogies and reference cases and "management flight simulators" to help make sense of deep uncertainty. In a sharp break with the usual approach, the growing number of companies facing level 4 uncertainty need to think backwards from hypothetical futures to what you would have to believe about the future to support a particular strategy. In addition to the levels of uncertainty framework, Courtney outlines the alternatives of "shape or adapt" to uncertainty, make strategic commitments now or later, and follow a focused or a diversified strategy. The details of this book may be familiar in many ways, but the overall framework potentially could be highly enlightening for planners who want to use the right tools for the job. ... Read more

Amazon.com

Building relationships with customers has been a buzz phrase in many business circles for years. Now John Hagel and Arthur Armstrong declare that's not enough. They make a strong case that business success in the very near future will depend on using the Internet to build not just relationships, but communities. The payoff, they maintain, will be phenomenal customer loyalty and high profits. But, they warn, this race will definitely go to the swift. Here's a cyberspace book that could make your business future. Not everyone agrees with Hagel and Armstrong, but with stakes so high they deserves a serious reading. ... Read more

Reviews (60)

A forerunner on how to create profitable on-line communities
Notwithstanding the many new books on on-line communities, I still keep this book on my bookshelf as a useful reminder of the conceptual framework around which many new businesses - failed or otherwise - were subseqently developed.

It has been nearly six years since I attended a seminar organized by the consulting company McKinsey at which the two authors (both McKinsey consultants)presented their book and what seemed, at that time, to be its somewhat radical proposition about profitably developing self-organizing on-line communities around the passionate interests of their memberships.

As I become more familiar with Amazon and how it is organizing the community through which you are reading this and other reviews, I am reminded about the fundamental concepts that Hagel and Armstrong laid out in their book regarding the economics of virtual communities. Amazon attracts member-generated content which is a key part of its business model which uses the passionate interests of its own customer base to increase its business value. Many doubted the vailidity of this proposition when this book came out, but the evidence does appear to increasingly support it.

Arguably, many might now say that this book is dated, on-line businesses having mushroomed and failed since this book appeared, yielding new lessons that this book could not have foreseen. Many of its claims now seem overhyped.

While this and other criticims may all be well and true, I suspect that this book will come to be regarded in future business histories of the on-line business as one of the seminal pieces of strategic business thinking in the late 1990s. I shall keep it for posterity, if not profitability. In any case, there must now be enough second-hand copies for you not to have to make the investment at the full original cost!

Worth the time reading with practical application
According to Hagel and Armstrong, virtual communities that combine content and communication can expand market opportunities, and those who form these online communities will experience commercial success. Throughout the book, the authors stressed that those organizations who wait will lose out. However, the emphasis of the book is not about making money; rather it's about forming communities, collecting information on members' preferences, interests, etc., and using that information to meet their needs.

In my opinion, two of the most useful components of the book are a listing of personnel required for the implementation and maintenance of an online community, and steps needed to help managers get started in organizing a virtual community. The book is certainly worth reading, whether you are developing websites for business, education, recreation, etc. Hagel and Armstrong present valid reasons and practical suggestions for developing online communities that will help members connect, as well as seek and find.

Virtual Communities = Real Prosperity
Hagel has co-authored two especially important books (with Arthur G. Armstrong III and Marc Singer, respectively), the other being Net Worth "which builds on a number of the themes originally developed" in this volume. As Hagel and Armstrong point out, Net.Gain "systematically [analyzes] the economic drivers for value creation that exist on networks. It [uses] one particular business model -- the virtual community -- to illustrate the unique capabilities of digital networks and how these might be harnessed to create a substantial business with very attractive economics." The material is carefully organized within three Parts: The Real Value of Virtual Communities, Building a Virtual Community, and Positioning to Win the Broader Game. Hagel and Armstrong also provide a "Management Agenda", followed by excellent suggestions for further reading.

In the Preface, Hagel and Armstrong acknowledge three inevitable limitations in writing Net.Gain: "The first arises from the profound uncertainties associated with evolving electronic networks and the myriad business models emerging in the primordial brew known as cycberspace....Second, the need to be concise has led us to make some generalizations about the likely evolution of virtual communities and the key principles for success....Third, we do not expect virtual communities to be the only 'form of life' on public networks. Indeed, many other commercial and non-commercial formats (including dictionaries, market spaces, 'web'zines,' corporate sites and game areas) will thrive on these networks as well." Working within these limitations, Hagel and Armstrong succeed admirably when describing the power and potential of the virtual community concept. Also, when explaining (a) how to target the kind of community to start-up; (b) the principles of a successful entry strategy, emphasizing the need to generate, engage, and lock in traffic over time; (c) characteristics of community organizations; and (d) criteria by which to select the right technology. Then in Part Three, Hagel and Armstrong shift their attention to explaining the fundamental ways in which the emergence and spread of virtual communities will alter traditional business.

My strong recommendation is that this book be read first, then Net Worth. My further recommendation is that both books be used to formulate the agenda for a workshop or what is generally referred to as an "executive retreat" (preferably for two days and located offsite) with all participants required to read both books in advance. In their Epilogue, Hagel and Armstrong suggest that "the most radical potential impact of the virtual community may well be its impact on the way individuals manage their lives and companies manage themselves. Communities will serve to connect, much like the postage system and telephone before them. But they will go several steps further than the telephone or fax, as they help the individual to seek out and find. Souls in search of relationship, colleagues in search of teamwork,, customers in search of products, suppliers in search of markets: the virtual community might have a place for them after all." Those who share my high regard for Hagel's two books (co-authored with Armstrong and Singer, respectively) are urged to check out Peter Senge's The Fifth Discipline as well as O'Dell and Grayson's If Only We Knew What We Know. Both can also help with the planning and implementing of the off-site workshop recommended earlier.

Good Ideas that can hold in 10 pages
Excellent ideas on Internet marketing and business strategies but did not need to write a book, ten pages would have been enough. Read a well condensed summary is less time consuming for the same amount of great information provided by the author.

Straight Line Depreciation, from Five Stars to Two.
This book was probably five stars when it was published - in 1997. However, too much has changed since then, obviously through no fault of the authors. I knew I was in trouble when the authors raved about Motley Fool and asked "can online trading be far behind?" Save your money. ... Read more

Book Description

American companies may tout their equal opportunity initiatives, but with 95% of all executive-level positions in the US held by white males, most of these programs clearly fall far short of their goals when it comes to diversifying upper management.Yet, even in the face of such overwhelming odds, some minority executives do break through to the highest leadership ranks.What can we learn from these success stories?In one of the first in-depth studies to focus on minorities who have made it to the top, Breaking Through examines the crucial connection between corporate culture and the advancement of people of color.The often surprising conclusions drawn by authors Thomas and Gabarro represent important milestones both for the study of organizational practice and for minorities planning their own course of professional achievement.

Breaking Through profiles minority executives at three different firms who encountered-and conquered-barriers throughout their careers.It then contrasts their successes with the experiences of white executives who've reached upper management, and with white and minority middle managers coming to grips with stalled careers at the same companies.From the compelling stories a distinct pattern emerges in the way minorities advance.The message is clear and startling: the path that leads minorities to the top is fundamentally different than the route followed by their white peers.Here are the determining factors--both individual and organizational--that correspond to the advancement of minority executives to the highest levels.

Breaking Through is an unflinching look at the very real obstacles that await minorities in a workforce whose leadership is still predominantly white.Pathways to success do exist for minorities, say Thomas and Gabarro, and breakthroughs can happen-if individuals and organizations understand the roles they play in creating the opportunities that enable minority executives to reach the top. ... Read more

Reviews (4)

This is destined to be a classic management text
This is destined to become one of the classic management texts. I found the authors treatement of the subject matter to be insightful and well thought out. This is a must for any person of color who is wondering why it's taking them so long to move into the executive level. As a trainer I will be using this as one of my texts, and I plan on sending a number of copies to my friends.

Enjoyed it
I just finished reading Breaking Through and learned quite a bit. Recommend it to you. I wish the subject of leadership, and how to properly use it to get results on the job, was addressed more. I recommend you also get a copy of another book that addresses this issue and is very applicable to the subject of minorities as leaders: "The Leader's Guide: 15 Essential Skills." It's at Amazon too.

A Must Read!
Breaking Through is a multifaceted book that speaks to a spectrum of audiences: the business leader committed to creating a diverse workplace; the human resource professional charged with designing and implementing diversity initiatives; the minority professional aspiring to break through.

This book sheds light on the complex career dynamics presented to minority professionals in corporate America. As an aspiring minority professional, I took away valuable strategies, as well as pitfalls, for achieving my career goals.

The book is a balance of compelling empirical evidence and real-life examples. The depth of analysis makes for an engaging and enlightening reading experience.

Breaking Through will serve as a personal professional reference guide and I am sure that it will become an invaluable resource throughout my career.

This book is wonderful
Few books have the ability to relate the importance of the information contained within to both professional and layman alike. That is, however, exactly what this book accomplishes. It shows you the how the achievements of minorities trying to attain status at the corporate level are linked to career decisions and mentoring relationships. This is accomplished by examining the characteristics of several minority executives at different companies who have managed to break through the glass ceiling. It also teaches several approaches for acheiving racial diversity throughout a company. It examines three large corporations who have accomplished this feat, by tracing their diversity efforts throughout the past few decades. This book is a must read for anyone interested in the processes by which businesses accomplish diversification throughout all levels of the company. ... Read more

Book Description

The Harvard Business Review Paperback Series brings managers and professionals the fundamental information they need to stay competitive in a fast-moving world. Gathered in a highly accessible format are the leading minds and landmark ideas that have established the Harvard Business Review as required reading for forward-thinking businesspeople worldwide.

With concern for environmental issues growing, defining the controversial relationship between business and the environment has become even more essential. Harvard Business Review on Business and the Environment brings together the latest management thinking on the role of the environment in business, and offers a general management perspective that will help outline the critical environmental issues your organization may face. ... Read more

Book Description

Rosabeth Moss Kanter is at the forefront of management thinkingand practice--a leading figure in the attack on organizationalrigidities, boundaries, and top- down traditions whose ideas arespearheading a period of great discovery and change in the businessworld.

Here, for the first time, is the essential Kanter: thecutting-edge ideas and wisdom of nearly two decades that are even morerelevant today. With Rosabeth Moss Kanter on the Frontiers ofManagement, the renowned management guru presents a sweeping look backacross a decade of change in business--what has worked well, whathasn't, and what businesses still need to learn--as well as apenetrating look forward at the hard work of leadership and innovationstill to be done.

In this landmark book, Kanter has integrated allher Harvard Business Review articles and the framing essays she wroteas Editor into a powerful new statement. The six sections span today'smost critical topics--strategy, innovation, customer focus, globaltrends, planning for change, strategic alliances, compensation systems,and community responsibility. They are joined by overviews and a freshnew introductory chapter to reinforce a single, timeless message: theimportance of treating people as assets and of providing the tools andconditions that liberate them to use their brainpower to make adifference.

Ever at the frontier, Kanter has published this book asa compelling call to action. Together, her articles and essayscrystallize the real work of business leaders and serve as aprovocative reminder of why they should never lose sight of the factthat values--and people--are the foundation of business success. ... Read more

Reviews (1)

drivel
I apologize for being trite, but this book is drivel. Ms Kanter is not on the frontier, but rather at the tail end, making random observations as they go past. ... Read more

Book Description

About 75 percent of active investors consistently deliver returns below those of passive index funds. Why? In part, it's because proven methods for valuing assets are too complex to apply-causing investors to rely on commonly used benchmarks such as current earnings and price-earnings multiples that simply don't reflect how the market prices stocks.

Now, leading valuation experts Alfred Rappaport and Michael J. Mauboussin argue that the secret to beating the market stands in plain sight. Embedded in the stock price-the most accessible piece of information in the investment arena-lies all investors need to know about how the market expects a company to perform. By correctly decoding that information, say the authors, investors are on the way to anticipating changes in a company's competitive position that the current stock price doesn't reflect-and making informed buy, hold, or sell decisions before the rest of the crowd. This proven approach, expectations investing, holds the potential to change the rules and improve the odds of the stock selection game forever.

The beauty of expectations investing is that it harnesses the power of the market's own tried-and-true pricing model-discounted cash flow-without requiring difficult and often dubious long-term forecasting. Highly practical, the book provides a strategic framework and corresponding tools for using price-implied expectations (PIE) to:

Interpret current prices and anticipate revisions in expectations.
Monitor signals from managerial actions such as mergers and acquisitions and share buybacks and estimate their impact on shareholder value.
Devise, adjust, and communicate management strategy in light of shareholder expectations.

In addition, a unique expectations infrastructure helps track value creation from the initial triggers that shape performance to the resulting impact on sales, operating profit margins, and investment efficiency.

Universally applicable to public companies across the economic landscape, Expectations Investing will enable professional investors, analysts, and executives to translate heightened uncertainty into lucrative opportunity.

... Read more

Reviews (20)

Must Reading
In an investment world filled with tinsel and glitter, Rappaport and Mauboussin have given us substance and common sense. Using the invaluable information imbedded in the price of a stock to establish the market's expectations,the authors present a (fairly) simple methodology for assessing the valididity of those expectations, and to invest accordingly, It is, as Peter Bernstein says in his brilliant foreword (an absolute must- read before you plunge into the text), "a logical path to the heart of value."
I'm pleased to have give the book an earlier endorsement, because I hope that mutual fund managers will learn from "Expectations Investing" that there are far better ways to manage money--ways to focus on "value" whether their style is value or growth--than the costly, high-turnover, momentum-driven strategies that are rife in the industry today.
More than ever after the 35% fall in the stock market since March 2000, investors need wisdom. They'll find it here.

An investor's guide on how to approach the investing process
This book is a must read for anyone that invests in the market and wants to make consistent gains in his/her portfolio. Most people spend more time planning a vacation than they do in picking the stocks in their portfolios. And even when they do some research into a stock usually it constitutes asking their peers on what they think about company XYZ. And the people they solicit this advice from are just as ineffective in their research and knowledge about company XYZ.

Mr. Mauboussin and Mr. Rappaport give investors the right tools to make careful and informed investing decisions. The authors suggest that the market prices "expectations" into a stock and a good investor needs to strip this from the analysis and find the true intrinsic value of a security. The is accomplished by various financial analysis tools presented in the book and also by a fundamental shift in investor thinking and perception.

A Different Approach
Stock market investing books usually come in two flavors.

The first group of authors tell you to look for certain price and volume patterns; that the stock price depends on those patterns because those patterns are a reflection on human behavior.

The second group of authors tell you to look for certain ratios in the financial statements; that the stock price depends on those ratios.

Then there's this book, which tells you that the price could depend on a lot of things, like mergers and acquisitions and the synergy they generate, executive compensation, competitive strategies, stock buybacks, etc. But they don't tell you how to calculate those factors into the stock price. The book is a good book which certainly provokes thought. And it's probably good for finding stocks for the long term investor. But for me, it's a little too impractical. And a little too academic intellectual guru voodoo. When I have money at risk, and I have to make quick decisions (which can affect my net worth), I like to keep things simple and easily measurable which technical and fundamental analysis allows me to do.

Recommended by Enron!
I haven't read the book but I saw an unintentionally funny quote on the book jacket. Amongst other people praising the book and urging you to buy it, there is a quote from one Jeffrey Skilling from the Enron Corporation:

"Expectations Investing reinvents today's investment market architecture. . . . A valuable tool for the innovative investor." -Jeff Skilling, CEO, Enron Corp.

You too can become as "innovative" as Enron! Wonder if they'll remove that recommendation in reprints...

Expectations Investing: Reading Stock Prices for Better Retu
I used to always wonder how do investment analysts evaluate stocks.Buffett never beleived in P/E nor P/S or P/CF. Mind you [local store] never traded under P/E of 24, neither DELL nor msft.
So how do you pick these great stocks?

If a investor is reading this book, he has crossed over from Amateur investor stage to become a semi professional. Evaluate your stocks as you evaluate a business. When you buy business, you are basically looking at how much cash can I take home very month.

This is a great book. ... Read more

Book Description

Here is an experience-rich book on how companies can createvalue by becoming smart organizations.Based on research andconsulting engagements with the world's largest R&D-intensivecompanies, it reveals how senior managers can dramatically improve thereturn on their companies' investment in R&D and technology.

TheSmart Organization brings new perspective to management decision makingthroughout the organization.It identifies the key practices thatenable successful organizations to deliver a stream of winning productsand services.Smart organizations, say the Mathesons, haveinternalized nine interlocking principles essential in creatingcorporate cultures that emphasize making the right strategic decisionsat the right time. They use best practices to support these decisionsand sustain their success.These principles--among them, embracinguncertainty, disciplined decision making, and value creationculture--enable companies to make appropriate choices about their R&Dplanning, portfolio management, and product strategies.

Drawing onthe experiences of R&D-intensive organizations all over the globe, theauthors illustrate the book with best practice examples from companieslike Hewlett- Packard, 3M, Merck, Proctor & Gamble, DuPont, Monsanto,and AT&T.They stress the importance of evaluating trade-offs,investigating alternatives, and getting buy-in across functions toensure that decisions will be viable from both the technological andmanagerial perspectives.They show how managers can apply thesemethods more broadly to create a smart organization.The Mathesonsclearly demonstrate that changing the decision-making process is anefficient means of reforming culture and improving not just R&D butoverall company performance. ... Read more

Reviews (6)

Great book. If you liked the HBR article, you'll love this!
Frequently organizations face the challange of what not to do. They tend to believe in the person presenting the idea, rather then creating a rigorous process for evaluating the options before them. Companies adopting best practices in managing their investment options realize substantial gains in their long term bottem line. This book quantifies this performance difference, and what the best practices are across a range of industries.

Why aren't organizations more rigorous in selecting projects? The book outlines several barriers which are extremely relevent:

· It will make a popular champion look bad,

· Organizational resistance to change, or cannibalization of an existing business for a new opportunity,

· We confuse the urgent with the important,

· Its hard to agree on measures and success criteria

· People are afraid of making the wrong prediction, so they don't make any,

· Its hard to normalize results from different contributors,

· Business plans are not integrated with new project activity,

· Power and politics, a methodical evaluation leaves no room for interpretation and "behind the scenes" trade offs between groups and individuals,

· Lack of strategy.

The best practices outlined in this book are backed by substantial research. I would have like to have seen a few additional chapters on application of best practices in real companies ... a case study of a turn around.

Ideas in the book come to life!
Thank you very much for sending me a copy of The Smart Organization. I have completed only two chapters, but find the book to be thoroughly engaging. Especially, the six dimensions of decision quality.

My current job is proving to be a daily "case study." The ideas contained in the book have come to life, helping me to better understand my environment at work and make better decisions along the journey.

Great insights for all concerned with strategy and renewal.
Focusing on large R&D intensive organizations, this book explores nine key principles that make these enterprises effective, such as: open information flow, systems thinking, and continual learning. The author's emphasize the decision making process as a means of changing and improving overall organizational performance. If you are seeking new insights into how strategy is developed, excellence can be achieved in decision making, and organization renewal can be realized, you will find this book enlightening and fascinating reading. The insights offered here are by no means limited to high-technology firms; they apply to any organization seeking to be successful in today's fast-paced markets. This work includes an organizational IQ test (a diagnostic tool) for identifying root causes of the barriers to improving decision processes. There is an impressive amount of knowledge about organization to be gleaned in The Smart Company. Whether you are a technology -based bus! iness or not, you will find many nuggets in this work. We highly recommend it.

One of the best organising frameworks I've met
The Strategic Decisions Group framework for smart organisation is informative. One reason for this is that the authors are reporting a practical benchmark study of R&D which appears to include every American corporate I've ever heard of. They do readers the great favour of synthesising this into a 9 principle framework for Smart Organisation. 3 principles for achieving purpose: -continual learning -value creation culture -creating alternatives 3 principles for mobilizing resources: -open inforamtion flow -disciplined decision making -alignment and empowerment 3 principles for understaning environment: -systems thinking -embracing uncertainty -outside-in strategic perspective What I especially like is that for each principle 5 How do you knows? are given scaling the difference between an organisation which hasn't got a clue about the principle (not smart) to one that lives it (smart org) For example these are the 5 how-you-knows of alignment & empowerment: 1 Examine the strategies at different levels (eg technology strategy to portfolio strategy to project startegy). In smart org: there are clear strategies at all levels taht provide useful guidance for decision making. Strategies at one level are clearly linked to the next. Lower level strategies interpret and carry out the implementation of higher-level strategies. In not-smart: few strategies or they provide little guidance for decision-making. They are viewed cynically as corporate PR. Links among strategies are absent, unclear or ambiguous 2 Examine the value measures used to evaluate decisions at different levels. In smart org: there are clear measures of value at all levels. Value measures at one strategic level are clearly linked through the strategy to measures at the next level. In non-smart: There may be no value measures. If there are, each level sets its own values or decision criteria, with no special requirement that they be related to values and strategies at other levels. 3 Examine the approvals required to make or carry out important decisions. In smart org: Decisions require few approvals because people understand the strategy and are trusted to carry it out. Meetings with upper management are viewed as adding value. In not-smart: Decisions require many levels of approval. Review meetings are perceived as wasting time. Often meetings with upper management are feared because it may redirect efforts and change priorities without clear reason. Upper management often feels overloaded with the need to check on subordinates. 4 Examine the roles of people involved in an important recent decision. In smart orgs: Many people participated