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Why Organizations Struggle So Hard to Improve So Little

OVERCOMING ORGANIZATIONAL IMMATURITY

A viable tool for business leaders who accept change as part of growth.

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Business professionals present a refreshing approach for organizational change.

Some companies seem to be in a perpetual state of “improvement,” with thousands of dollars spent on consultants and a constant avalanche of new policies. Often, there’s little positive change, but it’s time to stop blaming leadership for an organization’s shortcomings, say Klubeck, Langthorne and Padgett. While that sentiment may be radical at first glance (and it will no doubt catch managers’ attention), the authors’ straightforward, comprehensible presentation is actually based on common sense. Instead of pointing fingers, business leaders are urged to examine the cultural climates of their organizations to determine if they’re indeed prepared for change. As the authors say, organizations often rush to fix problems with broad, companywide directives that are regularly doomed to fail. Instead, small “targeted initiatives”—with input from employees excited by the results—can spread positive attitudes. Therefore, the authors say, one of the most important steps to successful organizational change is understanding the differences between a mature company and an immature one. Part 1 of the book is devoted to this assessment, though the concept is expanded throughout the book with examples that will leave many readers nodding their heads: “You know you’re in an immature organization when one or more senior leaders regularly circumvent processes (and no one challenges them).” A self-assessment maturity quiz and an organizational health survey are included in the book’s appendix, as are other hands-on guides, and readers are urged to use the maturity assessments as tools for discussion before making any change. The authors’ presentation is concept-driven except for a few anecdotes, such as a short chapter “interlude,” which strives for a lighthearted tone but ends up a bit superfluous. Parts 2 through 4 delve into the identification of more mature-business behaviors and a discussion of some familiar terms, like strategic planning and effective communication. Later, a compelling case is made for personality over résumé content when hiring: “Mature organizations care more about talent, attitude, and personality than skill set. Skills and knowledge can be attained and enhanced easily…compared to developing a person’s personality. Personality traits, such as values, morals, a sense of humor, and the ability to relate to and interact with others, are present in youth and refined over a lifetime.” The text also includes charts, graphs and encouraging words, but readers shouldn’t expect motivational directives here; rather, the book’s clear-eyed practicality is its strength.

A viable tool for business leaders who accept change as part of growth.

Pub Date: Jan. 2, 2010

ISBN: 978-0313380228

Page Count: 222

Publisher: Praeger

Review Posted Online: June 18, 2012

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THINKING, FAST AND SLOW

Striking research showing the immense complexity of ordinary thought and revealing the identities of the gatekeepers in our...

A psychologist and Nobel Prize winner summarizes and synthesizes the recent decades of research on intuition and systematic thinking.

The author of several scholarly texts, Kahneman (Emeritus Psychology and Public Affairs/Princeton Univ.) now offers general readers not just the findings of psychological research but also a better understanding of how research questions arise and how scholars systematically frame and answer them. He begins with the distinction between System 1 and System 2 mental operations, the former referring to quick, automatic thought, the latter to more effortful, overt thinking. We rely heavily, writes, on System 1, resorting to the higher-energy System 2 only when we need or want to. Kahneman continually refers to System 2 as “lazy”: We don’t want to think rigorously about something. The author then explores the nuances of our two-system minds, showing how they perform in various situations. Psychological experiments have repeatedly revealed that our intuitions are generally wrong, that our assessments are based on biases and that our System 1 hates doubt and despises ambiguity. Kahneman largely avoids jargon; when he does use some (“heuristics,” for example), he argues that such terms really ought to join our everyday vocabulary. He reviews many fundamental concepts in psychology and statistics (regression to the mean, the narrative fallacy, the optimistic bias), showing how they relate to his overall concerns about how we think and why we make the decisions that we do. Some of the later chapters (dealing with risk-taking and statistics and probabilities) are denser than others (some readers may resent such demands on System 2!), but the passages that deal with the economic and political implications of the research are gripping.

Striking research showing the immense complexity of ordinary thought and revealing the identities of the gatekeepers in our minds.

Pub Date: Nov. 1, 2011

ISBN: 978-0-374-27563-1

Page Count: 512

Publisher: Farrar, Straus and Giroux

Review Posted Online: Sept. 3, 2011

Kirkus Reviews Issue: Sept. 15, 2011

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REIMAGINING CAPITALISM IN A WORLD ON FIRE

A readable, persuasive argument that our ways of doing business will have to change if we are to prosper—or even survive.

A well-constructed critique of an economic system that, by the author’s account, is a driver of the world’s destruction.

Harvard Business School professor Henderson vigorously questions the bromide that “management’s only duty is to maximize shareholder value,” a notion advanced by Milton Friedman and accepted uncritically in business schools ever since. By that logic, writes the author, there is no reason why corporations should not fish out the oceans, raise drug prices, militate against public education (since it costs tax money), and otherwise behave ruinously and anti-socially. Many do, even though an alternative theory of business organization argues that corporations and society should enjoy a symbiotic relationship of mutual benefit, which includes corporate investment in what economists call public goods. Given that the history of humankind is “the story of our increasing ability to cooperate at larger and larger scales,” one would hope that in the face of environmental degradation and other threats, we might adopt the symbiotic model rather than the winner-take-all one. Problems abound, of course, including that of the “free rider,” the corporation that takes the benefits from collaborative agreements but does none of the work. Henderson examines case studies such as a large food company that emphasized environmentally responsible production and in turn built “purpose-led, sustainable living brands” and otherwise led the way in increasing shareholder value by reducing risk while building demand. The author argues that the “short-termism” that dominates corporate thinking needs to be adjusted to a longer view even though the larger problem might be better characterized as “failure of information.” Henderson closes with a set of prescriptions for bringing a more equitable economics to the personal level, one that, among other things, asks us to step outside routine—eat less meat, drive less—and become active in forcing corporations (and politicians) to be better citizens.

A readable, persuasive argument that our ways of doing business will have to change if we are to prosper—or even survive.

Pub Date: May 1, 2020

ISBN: 978-1-5417-3015-1

Page Count: 336

Publisher: PublicAffairs

Review Posted Online: Feb. 16, 2020

Kirkus Reviews Issue: March 15, 2020

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