Books and articles in brief

Books and Articles in Brief

BOOKS

James W. Marncm

If anyone thinksthat benchmarking is just a junket to visit another com-

The Textboo& of Total pany, this book refutes the thought. He&&cam by A F. u-&sat and Survey results show that benchmarking June A m e l e . m y wach, PL: is spreading rapidly in leading compa- st. Lucie press, 1993. 301 m; nies, with additional growth now in the $39.95. works. Planning, organizing, present-

ing to management, orienting employ- One can quibble Over calling this ees, benchmarking process cost analy-

c o l l a i o n a t e x t ~ k ; ahandbook might sis, and legal and moral considerations be more accurate. There are Sections are all covered. Training course sur- On the history ofthe quality movement veys, a guide to process model compar- in health care, on the tools and tech- ison, and directions for researching the niques Of quality, On the environment, secondary literature are also provided. and on strategic directions. This book proves that American corpo-

The selections taken together are rations can cooperate intelligently and strongeron theory than on application. effectively to set up processes to expe- Almost half the readings are reprints of dite quality and productivity to further articles from medical journals. Some of global competitiveness. the strongest chapters apply the quality movement to health care and address Gzobazizat~on, Tecbnozom, and

board the quality bandwagon. The task puters =& Telecommuntcatjons in

dley, et al. Boston: Harvard Busi- provement into a paradigm that will in-

ness School Press, 1993. 392 pages; spire professionals to commit to the process is a tough one, but the six chapters addressing the problem are thought- ful and powerful. This section alone

This collection of fifteen articles justifies buying the book. offers some heavy-duty thinking from This volume may not work as a academics, experts, and business ex- stand-alone text, but it offers some ecutives who participated in a colloqui- valuable readings that quality leaders um sponsored by the Harvard Business in professional organizations could use School on how globalization and tech- to great benefit. nology are affecting business. The con-

Tlie Bencbmtarhing Management tributions have not been adapted for Mammr, ph'D*, Gu& by the American Pmductiv- general appeal; they require close

ity and Quality Center. Cambridge, attention. ir director of library services at Magak Library, Cente- nary cobge ofloukiana in MA: Muctivity ~ r e s s , 1993. 249 The underlying themes are Shepor t . pages; $39.95. globalization and the impact of tele-

the problem of getting physicians on me Fusion of Corn-

Of quality im- tbe 1990s, edited by Stephen P. Bra-

$34.95

National Prodwivity Review/Spring 1994 309

communications. These forces are making some industries obsolete even as they open vast new vistas of oppor- tunity. They re-quire industries to re- structure themselves, generally toward a networked environment, to improve coordination and facilitate quick re- sponse to opportunities. For example, one contributor explains how telecommunications allows dealer markets to replace the trading floor in the securities industry. There are interesting articles on the Saturn Corporation, the global virtual organization, and the coming “broadband society,” which will allow individual access to unlim- ited information by the turn of the century. Other interesting prognostica- tions include global information system management strategies and the growing privatization and competition in heretofore closed telecommunications systems overseas.

Acbieving Total Quality: Integrut- ingBusinessStrategyandCustomer Needs by Wayne H. Brunetti. White P h , NY: QualityResources, 1993. 242 pages; $24.95.

Brunetti is a quality consultant who learned the business as a manager of Florida Power and Light’s successful quality transformation. He offers a one- volume guide for establishing a quality program. That is a prodigious task, reasonably accomplished.

One strength of the book is the separation of policy management and daily management. He uses flow charts, fishbone diagrams, and other figures extensively, showing how to use them in the process. Brunetti treats important concepts in separate chapters on teams, suppliers, education and train-

ing, problem solving, suggestion systems, and the implementation plan.

The book makes some contribution to practice, though not to theory, and might be useful to managers seeking an integrated book to guide their quality efforts.

Tlbe American Keiretsu= A Strategk Weapon for Global Competitiveness by David N. Burt and Michael F. Doyle.Homew~IL:BuslnessOne Irwin, 1993. 251 pages; $25.

This important book demonstrates how a single process, supply management, can assume major strategic importance and improve a firm’s global competitiveness.

Keiretsu is Japanese for group. It alludes to the vertical and horizontal corporate relationships that obtain part of their competitive power by assuring financial and supply support. The horizontal relationships would create trusts and are banned here; the vertical chains can be adapted and bested by Ameri- can entrepreneurship.

The authors demonstrate how the power of AKT (American keiretswtype) techniques can reduce costs dramati- cally by assuring supply quality at better prices and reduced risk. They provide guides for forming the new part- nership arrangements. They assert that the power of AKT is comparable to that of conversion and marketing, and that the three activities should be combined as a basis for strategic planning.

This is must reading for top execu- tives, corporate directors, and the financial securities components of corporate American strategic planning. Burt and Doyle show business school-consultant collaboration at its best.

~~~

310 National Productivity Reviav/Spring 1994

Books and A&ks in B&f

Tbe N e w Economics: For Industv, Government, Education by W. Edwards Deming. Cambridge, MA: MIT/CenterforAdvancedEngineer- ing Study, 1993.240 pages; $40 (paper).

Some will read this new work of Deming with more anticipation than reward. There is considerable repeti- tion of earlier writings-particularly from Out ofthe CrisLsuch as the red bead experiment and extensive discussion of the Shewhart (plan-do-study- act) cycle.

New thinking is apparent in the increased emphasis placed on systems thinking, on leadership, and on what Deming calls the “system of profound knowledge.” The latter concept encompasses (1) appreciation for a system, (2) knowledge about variation, (3) theory of knowledge, and (4) psychology. All these are interrelated. For example, knowledge of psychology is incomplete without knowledge of variation, as variation between people is a constant.

The title is a misnomer; there is little here about economics, per se. To judge from his grace in discussing statistical issues, Deming is, at heart, a statisti- cian. This book is more for people studying and thinking about quality than for the practitioner.

Organixational Cbange and Re&- sigw Ideas and Insigbts for Im- proving Performance, edited by George P. Huber and Willtam H. Gllck. New York Oxford Univer- sity Press, 1993. 450 pages; $39.95.

The information needed for better understanding of organizations, how they work, and how they can adapt to

the tremendous challenges presented by today’s pace of environmental change is all here.

More than a score of professors contributed to the dozen articles presented; almost that many more cri- tiqued the articles and demanded much rewriting. The work is research-based, and the result is a dense collection of writings that reasonably well summa- rizes the state of organizational theory today on the subject of change. Unfor- tunately, the very scholarliness of the work will make it unavailable to many of the managers who need the information most. The power of ideas cannot be overstated, but ideas can get overlooked. Yet, a few farsighted managers and practicing consultants may take the time to study these findings and see that they get tested in the field. This book contains the best information available for designing postindustrial organizations.

ZQM: Lea&rsbip for tbe Qualiiy Transformation by Richard S . Johnson. (Vol. I of the ASQC Total Quality Management Series.) Mil- waukee, WI: ASQC Press, 1993. 342 pages; $37.95.

This first volume of the ASQC series on TQM is designed for the CEO or other general leaders of organizations. It offers chapters on expected topics, including leadership styles, communication, visioning, delegation, participa- tive leadership, and the difference between leadership and management. Some chapters, however, offer the un- expected: empowerment, conflict reso- lution, and dealing with dflicult people.

The strengths of this series include the independence and self-containment of each clearly labeled chapter. Each

National hductivity Review/Spring 1994 311

has its own bibliography and summa- tion. The writing and organization are clear and the cham and tables are useful. Johnson clarifies rather than muddles the issues he addresses. Taken as a group, the volumes in this series make up a useful handbook for TQM beginners.

On the downside, the publisher decided to bring all four volumes out simultaneously. Although there is some value in that, the literature used comes to an end, in the main, in 1989. There are very few books and articles cited dated in 1990. This might not rule out the series for people assigned TQM duties within organizations, but it will lessen its utility for professionals. Com- prehensive bibliographies would help.

2Q.M: Management Processes for Quauty Operations by Richard S. Johnson. (VoL II of ASQC Total Qtdty Management Series.) Mil- waukee, WI: ASQC Quality press, 1993.336 pages; $37.95.

This volume is designed for use by general and human resource managers. Separate chapters treat such HR themes as quality hiring, performance management, and teams. More general management themes include quality culture, the quality manual, time management, and management ethics. Two chapters treat defining and serving the customer.

One interesting note is that, although the author acknowledges the opposition of Deming and other gurus to ratings and performance appraisal, he devotes two chapters to performance management and performance improvement. The approach is a very detailed one of specific job descrip- tions, performance standards, quanti-

fying appraisals, and various performance-improvement techniques. The reliance is on management to direct performance rather than on teams or on eliciting dedication from the workforce.

2Q.M:TlieMecbanicsofQuaUtyPro- cesses by Richard S. Johnson and Lawrence E. Kazense. (Vol. III of ASQC Total Quality Management

ity Press, 1993. 268 pages; $37.95. series.) Mitwaulree, WI: ASQC Qd-

This volume portends to offer di- rection and mechanics for the actual TQM implementer. There are chapters on quality tools, statistical process control, and improving productivity, along with chapters on problem solving, decision making, graphical displays, and audits.

This book is probably the least useful of the series. The treatment of such topics as statistical process control is thin and little more than a primer for the novice practitioner. As usual, the citations are dated (although a couple of 1991 articles are cited). The limita- tions of being out of date are most noticeable here: The lack of discussion of process innovation, cycle time management, and IS0 9000 standards makes this volume a lame duck.

ZQM: Quality Training Practices by Richard S. Johnson. (Vol. IVofASQC Total Quality Management Series.) Mi€waukee, WI: ASQC Quality Press, 1993. 265 pages; $37.95.

This volume displays Johnson's strengths at their best. Indeed, the book is a promotion piece for professional trainers with chapters on the development of a training program, needs as- sessment, the training decision, build-

Boob and A&ks in Brief

ing training materials, on-the-job training, and learner-centered training. Johnson treats both the big picture and the details, and he does so with a flair and finesse not evident in the other volumes.

Regardless of whether they are dedicated to TQM practices, trainers will find much of value here. Introduc- tions and addresses for both AsQC and the ASTD are provided, as is a comprehensive and topical bibliography.

CbmpetitiveandGreetcSustainable Performance in tbe Environmental Age by Dennis C. Kinlaw. San Di- ego, CA: Meiffer, 1993. 341 pages; $21.95.

The surprising thing about this book is not so much the call to “green con- sciousness” as the extent to which businesses have already become envi- ronmentally aware. His sources include business leaders and networks more frequently than green “gurus” (Schumacher’s Small Is Beautiful is not mentioned), and he quotes William Coors to argue that business and environmentalism are not the irreconcilable forces popularly imagined.

Kinlaw argues that Total Quality Environmental Management (TQEM) will become the byword of the nineties, because sustainable growth will be acknowledged as the guiding meta- phor for the successful company. Inter- national governmental and social forces are such that companies will have to move from a reactive stance toward problems to a proactive posture. Sys- tems thinking must encompass the environment to be adequate; the entire life cycle of products, considering their disposal or recycling, must become part of the plan. The author documents

many examples of this kind of practice; his call is to make the approach more comprehensive and less piecemeal.

The implication of this study is that environmentalism is becoming a driv- ing force in the economy. Could sustainable performance become a component of a new set of standards driv- ing corporate relationships as per IS0 WOO?

Punisbed by Rewards: Tlie Tmuble Wub Gold Stars, Incentive Plans, A’s, Praise, and Otber Bribes by Alfie Kohn. Boston: Houghton MifIUn, 1993. 398 pagw $22.95.

Kohn’s target is no less than the influence of “pop behavioralism,” which he attributes to the influence of B. F. Skinner; he argues that incentives in pay plans-as well as honors in school and bribes and punishments in raising children-are wrong, ineffective, and counterproductive.

His critique of rewards, based on extensive literature in psychological research, is that they punish, rupture relationships, ignore reasons, and dis- courage risk taking. Most of all, rewards kill interest in the task at hand. The evidence is clear: Rewarding a task well done assures a loss of interest in and commitment to the task. Extrinsic rewards do not motivate; they kill commitment. The implications for the workplace (as well as our sdhools) are ex- plosive. Much of what we are doing to motivate people has a counterproductive effect.

What, then, are we to do in the workplace? Remove rewards, reevalu- ate evaluations, and create conditions for authentic motivation, namely by fostering collaboration, enriching “content” (by eliminating drudgery), and

National Prodw*vity Review/Spring 1994 313

allowing people choices in how they go about their work.

The answer to the question, “How do you motivate people?” is clear and simple: You don’t. McGregor told us that thirty years ago. Kohn serves up another lesson in this important book.

Ittformatton Systems Outsourcing: Mytbs, Metapbors, and Realtttes by Mary C . Lacity and Rudy Hhchheim. NewYork: Wiley, 1993. 273 pages; $39.95.

The root problem here is the inabil- ity of information system specialists to sell their case-or the failure of top management in understanding new realities, whichever spin you prefer.

Can outsourcing information system save a company 10 to 50 percent in costs, as advertised? Not likely. Is outsourcing the solution for most companies? Hardly. Can certain services or processes be handled more effectively through outsourcing? Perhaps.

Should a company rely solely on its in-house IS staff to keep it strategically competitive? This is the better question, and brings us back to the original issue: Does top management understand the role and fully support IS as central to the company’s future? Is the IS manager a part of the top management strategy-setting team?

The authors are businessAS professors who ground their study in extensive interviews with IS outsourcing veterans. They do not offer simple answers; this is not a simple problem. Although the book may not provide all the solutions to this timely issue, it should help the reader ask the right questions.

Qua&yImprovementHanrliiooh for Healtb CareProfssknalk byJames E. Mozena and Debby LaRayne Anderson. Milwaukee, WI: ASQC Quality Press, 1993. 116 pages; $19.95-

This dandy little book finds and fills an important niche in the quality world. By definition professionals are largely self-directed and may, or may not, work in teams on behalf of organizational goals. Professionals are frequently re- luctant to sign on to a quality-improvement process, seeing it as a distraction from their work.

The authors outline the steps of the quality-improvement process, from team and project selection to describing the problem through work improvement to managing change. These processes are described in cogent, short chapters.

A unique contribution is found in the next section. Six main tools for the process-from brainstorming, to data collection, to prioritization-are covered in short chapters, as are flowcharts and cause-and-effect diagrams. As needed, the authors explain how to make these figures.

This book will serve as a useful guide for professionals-both individuals and groups-being recruited to quality improvement both inside and beyond the health care field.

Tbe New Standardtxation. Keystone of Continuous Improvement tn Manufacturtng by Shigehiro

tivity Press, 1993. 268 pages; $75. Nakamura, Portland, OR: Produc-

An experienced Japanese quality engineer and trainer, the author focuses on the implementation of quality, cost, and delivery by the people on the floor

314 National Productivity Rcview/Spring 1994

Books andAtticks in Brief

doing the work. He shows that stan- dardization of best methods, and com- municating that information to all teams doing the work, are essential to continuous quality improvement.

Manuals and training procedures can become part of the problem. Stan- dards are to be improved, not used as excuses for not thinking. Once improved, they are to be shared. All this must involve the people doing the work; participation is essential. The new standards must be computerized so that needed information can be acquired at the point in the process when it is needed. The role of training, by both employees and trainers, is discussed.

Productivity Press has translated and delivered another top-drawer contribution to the literature of quality and productivity. This work takes some of the mystery out of how the Japanese actually practice and deliver continuous quality improvement. It will be useful to engineers, trainers, and work groups dedicated to continuous improvement.

Healing tbe Wounds: Overcoming tbe Trauma of Layons and RevitaL Mng Downsized Orga#rzattons by DavidM. NOW. S~~~FrancfSco: Jo~sey Bass, 1993. 240 pages; $27.95.

A lot more attention has been paid to the victims of downsizing than the survivors. Both suffer from the trauma, with longer after-effects than generally recognized. The survivors rarely show the hoped-for inspiration to lead the company to expected new glories.

Noer, a personnel specialist, offers explanations and proposes solutions. The survivors must be led through a series of steps by which they grieve for

the victims, break their codependency relationship with the organization, and build a new organization-employee relationship. Everyone must understand that the old long-term contract by which the company "took care" of the employee is gone. The company must foster and acknowledge more inde- pendent behavior on the part of the employee. Because the company can no longer be responsible for the life- long development of the employee, the employee must be empowered to develop the skills and competencies required for job change and career development. Leaving for a better job elsewhere should be celebrated, not resented. Differences between long- term and temporary employees must be minimized.

This book will benefit personnel and general managers, as well as individuals coping with the trauma of downsizing, whether they be victims or survivors.

Total QuaWy Management= T e a Cases and Readings by JoelE. Ross. Delray Beach, FL: St. Lucie Press, 1993.325 page; $39.95 (paper).

This is just what its title says, a text on TQM with cases and readings. Ross provides Deming's fourteen points, Juran's ten steps, and Crosby's four absolutes.. .but little more from the gurus. After each case and mini-case, there are questions for discussion; after each chapter, there are suggested readings.

For someone teaching a basic course in TQM, with little library or resource support, this text could be useful (if a bit pricey). Its organization is clear, and it covers the major topics of the field. It should be used with

National produttvity RevinV/S''ng 1994 315

caution, however; there are a few star- tling editorial gaffes and there is no index.

A N e w American ZQM: FourFrd- cal Revolutions in Manag- by Shoji Shiba, et al. Portland, OR: Pro- ductivityKenter for Quality an- wement, 1993. 574 pqes; $49.95

There are some important contributions to the TQM dialogue here, but they are not centered on the topics suggested by the title. The book is a product of work by several companies cooperating through the Center for Quality Management and TQM courses taught in America by Shoji Shiba, all based at MIT.

The four revolutions covered are focus on the customer, continuous improvement, total participation, and societal networking (meaning corporate cooperation and TQM as a learning system). All four of these changes are real, but are not treated equally in the book. The first and fourth of the revolutions get a chapter or two. The middle two, CI and total participation, get at least 200 pages and five chapters each. In these middle chapters is to be found the heart of the lessons learned and shared by the top-flight corporations participating in the Center.

An unheralded theme of the book is perhaps the most powerful one presented. A model of learning (progress- ing from knowledge gained in a course through understanding gained from feedback through skill obtained by putting into practice) is offered in the preface and implemented, at least spo- radically, in the text. An implicit theme throughout the book is how management is learning and growing.

for Tsbnical Groups: Total m d p k s f o t . product ~ e -

velopment by Kiyoshi Uchimaru, et aLPortland,oR:ProductivityPress, 1993. 251 pages; $59.95.

This book attempts more than one task, with a corresponding loss of focus. On the one hand it is the story of TQM development over a decade at NEC IC Microcomputer Systems (NIMS), a software design group within NEC. The primary author, Uchimaru, served as president during the entire process. On the other, it seeks to be a guide for implementing TQM in technical groups.

The value of the book comes from the fact that it is a well-documented and researched case study of quality management in a design group, or technical organization. Processes developed for manufacturing are applied to design and software. The fact that the process did not unfold smoothly, but required several fresh starts, adds to its useful- ness. Hoshin management, a variation of TQM, is utilized for its guiding pM- ciples of long-term planning and reliance on the plan-do-check-act (PDCA) cycle. We are reminded that TQM is not a quick, one-shot process, but requires major, long-term commitment.

This large format (8 1/2" X 11") book is well-translated and beautifully presented by Productivity Press. It will be useful for managers and engineers seeking to implement TQM in a product-design situation.

Beyond Free Trade: Firms, Govern- ments, and Global Competition, edited by David B. Yome. Boston: Harvard Business School Press, 1993.496 pages; $45.

31 6 National Produrtvity Review/S'*ng 1994

BooksandArticksm B&f

This is a scholarly work with all contributions made by business school professors. The book holds together better than expected, however, being the product of several years of collabo- rative exchange and planning.

Most of the contributions are significant, averaging about fifty pages in length. Subjects treated include areas where government regulation is paramount: computers, telecommunications, semiconductors, automobiles, and in- surance. Another section treats topics where oligopolistic corporate practices are paramount: bearings, construction equipment, and mineral extraction.

This book is for specialists in world trade and global competition; it makes numerous contributions to our understanding of these workings, particularly in the areas of national policy and practices on the part of several coun- tries.

Leading Teams: Mastering tbe N e w Role by John H. Zenger, et al. Homewood,IL:Busi.nessOneIrWin, 1993; 287pages, $30.

When people really understand something well, they can make it simple. Zenger and his compatriots manage to do that for the task of learning how to lead teams. With today’s emphasis on team-building, a lot of folks are having to take up that task, and this book can help.

Like many other authors writing about teams, Zenger is a consultant offering training systems and services; unlike most, his book stands alone and can be used prkuctively by people who need to lead team-building efforts but lack the skills and training to know exactly what to do. The authors offer illustrative graphs, figures, check sheets,

and self-evaluative questionnaires to guide novice team leaders without over- whelming them.

Teams at Work 7 Keys to Success by Suzanne Will is Zoglio. Doylestown, PA: Tower Hill Press, 1993. 125 pages; $19.95 (paper).

This nlfty little book is designed for the members of a team development process. It is clear, simple, and easy to adapt. Zoglio is a professional consultant and the book promotes her and her business, but unlike many in that genre, this work stands on its own and is free of jargon that would limit its utility.

The author uses a question-and- answer format to cover her topics: commitment, contribution, communication, cooperation, conflict management, change management, and con- nections. Simple exercises and check sheets are included throughout to illus- trate the lessons at hand. A team leader lacking expertise could presumably guide the group through a meaningful exercise with this handy guide.

ARTICLES

Tamara J. Erickson. “R&D: Manag- ingtheLinktoC~rporateStrategy.~ ManagementReview, 82:12(Decem- ber 1993), 10-18.

In today’s dynamic environment, research and development, internal technology development, and coop- erative linkages are emerging as vital issues for corporate strategy. The days of R&D as an obscure “black box” largely ignored by corporate decision makers are ending in this time of “third generation” R&D management.

The first generation of R&D was the

National Productivity RevieudSpring 1994 31 7

James W. Manrmr

isolated lab, left alone to “do its thing”; this was sometimes brilliantly successful. In the second generation, financial management tools were brought to bear on R8tD practices; this has often proven disruptive. The third generation emphasizes core competencies and seeks to improve employee communications, reduce the fear of failure, build teams, and create a flexible organization capable of making tough choices. Comments from a number of research group directors give this article some punch.

Thomas G. Gutteridge, et al. “When Careers Flower, Organizations Flourish.” Training&Deuelopment, 4311 (November 19931, 2429.

This brief call for integrated career development argues that organizations must offer potential for growth and significant support for continuous development to recruit and hold top people (because job security is lost as an option).

Career development must be re- lated to strategic planning and HR functions generally within a broad systems context and an atmosphere of open communication. Brief examples from 3M, AT&T, Ford, and Westpac contribute to this introduction to the topic.

Richard C. Hoffman and W. Harvey Hegarty. “Top Management Influ- ence on Innovations: Effects of Ex- ecutive -tics and Social Culture.” Journal of Management, 1 9 ~ 3 (Fall 19931,549-274.

Innovation is crucial in a time of global competition. Most books about quality management and innovation

discuss the importance of the top ex- ecutive in the implementation of organizational change. But the research base for that assertion has been lacking, in contrast to studies of the role of staff and technical expertise.

The authors tested eight hypoth- eses in four European cultures. To greatly simplify, technical and marketing expertise enabled managers to af- fect product and market strategy. As a rule, general administrative experience did not enable managers to effect broad organizational change. Hierarchical position alone does not guarantee the power to implement change. Perceived expertise is more influential in that regard. And organizational culture cannot be overlooked in this process.

Fred Kauhan and Peter M. Senge. “Communities of Commitment: The HeartoftheLeadngOrgadzation.” OtganixationaZDynum&s, 22:2 (Au- tumn 19931,523-

This is the lead article in a special issue devoted to the learning organization. The entire issue is important, and, indeed, will form the core of a planned book on l%e Learning Organization in Action.

Learning requires change. Safe change requires a community commit- ted to learning if the individual is to cope with the fragmentation, competition, and reactiveness of today’s culture. We must work to escape this cultural fragmentation. We must be open to the “Galilean shift” (read paradigm shift) nurturing a more holistic individual as part of community view of the universe.

Communities of servant leaders, a general understanding of the insepara- bility of process and content, and ac-

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Books andAtfirks in Bricf

knowledgment of the riskiness of learning are all essential. The influence of Argyris, Capra, Wheatley, Bohm, and systems thinking generally is paramount in this article, as is the weltanschauung of the authors.

Mark Kesler, et al. ‘Third Genera- tion R&D: The Key to Leverasing Core Competencies.” Columbia JoudoflorldBusiness, 28:3@all 1993),34-44.

The accelerating rate of technology diffusion, the compressing product life cycle, the more stable level of human capabilities: How is a manager to cope?

The authors of this article discuss “unbundling” a technology to identify corporate core competencies. Then “strategic technology architecture” (STA) is used to match both R&D projects and commercial products to their underlying technologies. This allows the lever- aging of technologies for competitive advantage, as well as identifying potential projects for the future. Core compe: tencies must be linked to future projects to build usable strategies. These practices must become regular business processes to maintain competitive agil- ity.

Daniel H. KLm. ‘The Link between Individual and Organizational Learning.” S h n Munugeme?at Re- *, 3 5 1 (pfl1993), 37-50.

How organizations learn is a timely topic, and much of the literature of the learning organization assumes that the organization benefits from individual learning. But is that so, and what is the link? Kim offers a model to guide discussion of this topic.

A behavior-influencing model of

learning is offered, leading to an ob serve-assess-design-implement (OADI) cycle. Following Senge, a memory shap- ing mental model is added to the equation, so that it encompasses frame- works as well as routines.

Relating this to the organizational model is the hard part. Kim posits that an organization is both a behavioral system and an interpretation system, and that individual learning influences group behavior and thinking, and that influences the larger organization through shared mental models (SMM) which, then, influence the individual as part of hidher working environment. The whole process becomes a system and can be tested and researched.

Roger Martin. ‘Changing the Mind of the Corporation.”HumardBusi- ness Review, 71:6 (November-De- cember 1993), 81-94.

Successful corporations are successful because they have done something well in the past. Patterns of thinking and behavior are grounded in the behaviors that produced those accom- plishments. Changing those behaviors and patterns of thought is problematic, even when there is a public and verbal commitment to do so (usually made in the face of some great challenge).

How do you change a company’s mind? The vision of the founder, en- trenched steering mechanisms, inad- equate feedback utilization, and organizational defensive routines create layers of fortification to repel the new vision. A new strategic dialogue leading to a comprehensive new strategic language used throughout the company is the beginning and end of the process. “Reverse engineering,” or

National Roducta*vity Review/Spring 1994 31 9

studying what the company actually scious of the distinctiveness of their dues rather than what it espouses, is core competencies and ever-alert to one component of the strategy. Indi- better serve their customers. viduals do not appear foolish by stick- A few key professionals are the ing to past patterns of behavior, but the heart of many of these intelligent enter- consequences for the company can be prises, and they must be managed with disastrous. Everyone in the company great care. Expertise can be leveraged; must mentally accept, and routinely knowledge can expand exponentially. apply, the new vision for change to Intelligent enterprisesare flat, networked occur. organizations. For example, the power

of this strategy can be seen at Microsoft James Brian Quinn. "Managing the where enormous value is attributed to Intelligent Enterprise: Knowledge a company with seven key program- andService-BasedStrategies." PJar- mers and few physical assets. #dg Reuiew, 21:s (September-Oc- t o k 1993), 13-16. Calhoun W. Wick and Lu Stanton

Leon. "IndidduaILeamingNurtures The United States has always been J. P. Morgan." Personme1 Journal,

more of a service economy than a 72:ll (November 1993), 49-54. manufacturing economy, says Quinn, and now the service sector amounts to In the volatile world of banking, more than three-quarters of the total long-term planning becomes an im- economy. The key to the service practical luxury. A strategy created by economy is knowledge, and the task J.P. Morgan is to develop pools of talent today is to study all the components of and encourage growth and risk taking. a company's value chain and measure The strategy also requires that a depart- performance against best-in-the-world ment give up good people to new standards. Any function, from account- challenges and opportunities, a practice ing to research to manufacturing to accomplished by only a few managers. marketing, that cannot compete with Empowered, talented individuals world-class performance should be con- allow a company to absorb today's vol- sidered for outsourcing. atility more productively. J.P. Morgan

Companies that adopt this strategy is having some success with this become "intelligent enterprises," con- strategy. 0

320 National Rodwtivity Review/Spring 1994

Books and articles in brief

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