Books and articles in brief

Books and Articles in Brief

James W. Marmm, Jerome M. Hatcher, Rachael Green, and Bonnie A. Hodges

James W. Marcum, Pb. D., is director of library services at Centma9 College of Louisiana, in Shreveport; Jerome M . Hatcber, PhD., is associate professor of management and director, Advanced Manufictuzlring Service, LSU-Sbreveport; Racbael Green, MLS, is a reference librarian at the Noel Memorial Library, LSU-Sbreveport; Bonnie A. Hodges, MSLS, is reference librarian at Magale LibraT, Cente- nary College.

BOOKS Global Strategies: Insights from the World’s Leading Thinkers edited by Percy Barnevik. Boston Harvard Business School, 1994. 256 pages; $29.95.

This is a collection of influential articles reprinted from the Harvard Business Review. It includes selections from leading strategists and a smattering of managerial practitio- ners. Most of the selections are of recent vintage but others date back as far as 1982.

The utility of this edition is ques- tionable. It is meant for the thinking practitioner, but most of them pre- sumably have access to HBR The structure is loose, with sections on the global challenge, developing global strategies, and winning in foreign markets. The product is reminiscent of a collection of case studies.

Some of the selections are, of course, outstanding and interest in just a few of them may just@ the cost of the book. “What is a Global Man- ager” by Christopher Bartlett and Sumantra Ghoshal is an influential piece. Well-worked themes include global strategic alliances and global economies of scale.

Winning the War on Waste: Chang- ing the Way We Work by William E. Conway. Nashua, NH: Conway

QuaUtY, Inc., 1994. 235 pages; $26.95.

William Conway rose from an industrial engineer at Nashua Corpo- ration to become president and chair- man of the firm. He met W. Edwards Deming during his time at Nashua, and in the ensuing years he learned and applied the principles of TQM to create a successful continuous improvement environment. Conway eventually retired from Nashua and formed Conway Quality, Inc., a source of education and assistance in the field of quality.

Conway has written a very practical guide for the development of a continuous improvement environment in any type of organization. Winning the War on Waste offers a step-by-step, “hands-on” model for assistance in moving a firm from a position of observing the quality movement to an active role of partici- pating in the movement.

The heart of the improvement model is the central activity of identi- fying, quantifying, and eliminating waste. Conway defines waste as “the difference between the way things are now and the way they could be if everything were perfect. ” The magni-

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James W. Mamm, Jerome M. Hatcher, &hael Green, and Bonnie A. Hodges

tude and cost of waste in most organizations is unknown because most waste is hidden. The waste is real, though, and its accompanying cost can be enormous. The guidelines offered in the text explain how to iden- tdy and attack this waste through the use of effective and proven tools.

Conway presents numerous case studies that demonstrate how organizations have used the model to create effective continuous improvement environments. The appendix of the book contains some practical suggestions for the development of a continuous improvement attitude within a firm. A recommended set of training modules are provided for accomplishing the transformation. The book is well written; senior managers and total quality leaders will find this to be a very valuable resource.

Enviro-Management: How Smart Companies Turn Environmental Costs into Profits by D. Keith Denton. Englewood Cliffs, NJ: Prentice Hall, 1994. 256 pages; $21.95.

Businesses often view the consumer’s interest and concern about the environment as an ethical issue, or as a necessary cost of doing business that frequently puts them at a competitive disadvantage because of the costs of regulation. This work pro- poses a rethinking of this attitude because it is possible to reduce environmental impacts while improving the bottom line.

The author of numerous books on improving process inefficiencies and decision-making in the manufacturing and service sectors, Denton has provided more than a laundry list of

how best to reduce waste. More than an analysis of a few success stories, the book is a well-documented collection of proven practices from top organizations based on direct interviews from innovative and far-sighted concepts that have turned piecemeal pollution management into a comprehensive and competitive approach. Denton explains how these practices provide an edge to “the last competitive battleground” by progressing from environmental concerns and a semi- successful marketing strategy to creating an environmental profit center. He looks at sources of environmental profits, starting with pollution control to pollution prevention and ultimately to true pollution management, providing successful examples through- out. Strategic issues and practical how- to-do-it scenarios help put theory into practice. One tool is the Pollution Wheel, where an organization can discover where they are in their pollution efforts, then determine what is needed to go from compliance to competitive costing to profit making.

Two helpful appendices provide a summary of the environmental marketing guidelines put forth by the Federal Trade Commission and a de- scription of the Environmental Pro- tection Agency’s voluntary Green Lights Program.

In Good Company: 125 Years at the Heinx Table by Eleanor Foa Dienstag. NY: Warner Books, 1994. 352 pages; $29.95.

Celebrating their 125 years of ex- istence, Heinz rolled out the red car- pet to allow Dienstag to write this comprehensive company history. With access to both company and family

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Books and Articks in Brief

archives, diaries, letters, and scrap- books, along with interviews of hundreds of retired and current employees around the world, the author has put together one of the most readable company histories. The positive tone is in the glowing foreword by Henry Kissinger, who sees that this is not just a story about how the company went from garden patch to multinational status, but a “revealing portrait of the nation’s evolution,” an “American paradigm.” The author, a professional speechwriter and journalist, is able to convey the company’s ups and downs in the context of American history, allowing us to understand the decisions that were made in light of his- torical events both at home and abroad, along with social and technological changes.

The book begins with a look at the company today as a multibillion- dollar global conglomerate. The second section profiles the five chief executives, three generations of Heinz men and two professional CEOs, de- tailing their management and leadership styles, allowing us to see them as men with both attributes and idiosyn- crasies. These include manicures for food handlers, their protected treat- ment of women, the inspirations for new products, and their successful marketing strategies. The third section discusses the multitude of products and subsidiaries-how they were created, processed, marketed, and received by the world, including a look at the campaigns featuring Charlie the Tuna and Morris the Cat.

The writing is highly polished, making this an easy as well as an interesting read. The work is well- documented to the point that any business student doing a research

project on a company can use this title as a subject or a model.

Corporate Restructuring: Manag- ing tbe Cbange Process f r o m WBbin by Gordon Donaldson. Bos- ton: Harvard Business School Press, 1994. 224 pages; $29.95.

The last decade brought about the most aggressive restructuring ever seen in the business world. It was seen as being right for the time, yet has already ceased to provide an accept- able framework for future corporate decisions and actions. The experiences of the 1980s, referred to here as the Decade of Confrontation, can find its origins in the previous decades of corporate structure and financial strategy. Prior to the 1980s, investors were primarily individuals. With the advent of institutional investors came a change in the financial environment, with interest primarily focused on returns leading to massive restructuring from what became known as hostile takeovers. This book has been written to show organizations how to profit from everyone else’s negative experiences by restructuring voluntarily.

The author is the Willard Prescott Smith Professor of Corporate Finance, emeritus, at the Harvard School of Business. He feels that this work may provoke some controversy by chal- lenging most of the literature, espe- cially financial, on how organizations can achieve increased efficiency without the trauma of external intervention.

Donaldson’s study of voluntary restructuring includes the experiences of 12 well-known public corporations who were able to implement change with strong internal discipline-a re-

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defining, as well as a redirection, of corporate goals, strategies, and structure. This method will inevitably take longer, but it has a far more beneficial effect on the overall organization. The author discusses how financial structure will actually be the instrument of change, even though it is really only a means to an end. The key is to understand the nature and origin of structural change, its process, and its management.

Measuring Up to the BaUrige: A Quick G Easy Self-Assessment Guide for Companies of All Sizes by Donald C. Fisher. NY: Ameri- can Management Association, 1994.240 pages; $24.95.

Fisher has written a very useful self-assessment guide that is designed to accompany the Baldrige criteria, which many organizations use to determine the effectiveness of their quality systems. Employees (or employee teams) should find the book very helpful in interpreting the Baldrige criteria while performing an evaluation of the quality system of their company. The resulting assessment of an organization’s quality practices can be used to benchmark the firm’s success against either existing programs in other organizations or against quality improvements made over time within the original firm.

There is an introductory section in the book that presents a clear expla- nation of the proper use of the assessment guide. The appendix includes easy-to-use forms for the translation of assessment scores into a composite set of bar graphs. The appendix also presents a handy checklist for a firm to use when preparing a formal writ-

ten application for the Baldrige Award. This guide would be a useful tool for anyone working with the Baldrige Award system.

Future Work The Revolution Re- shaping American Business by Edward E. Gordon, et aL Westport, CT: Praeger, 1994.288 pages; $55.

While not evident from the title, this is a book about training for trainers and human resource managers. That said, it must be added that this is an important work addressing a crucial issue: Can organizations realistically upgrade the learning and skills of their people suf- ficiently to overcome educational short- comings and compete effectively? The authors offer a positive, even optimistic response.

A triad of educational needs is outlined: skills (reading, writing, math, foreign languages); training (basic management] service, supervision, production behaviors); and education (TQM, teams, problem solving, creativity, and professional education). Cognitive-based learning is the key to these authors’ approach. They offer their own specialized programs (Indi- vidualized Instructional Program and Management Insight Development Program) for all who might draw on their expertise. They point out that only 20 percent of today’s workers are properly educated for the globally competitive workplace, a figure bound to worsen as we recognize the pro- found shortages of adequately skilled workers that the nation is facing. The authors propose, however, that proper training can close the gap.

The Belief System.- The Secret to Motivation and Improved Perfor-

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munce by Thad Green and Merwyn Hayes. Winston-Salem, NC: BeechwoodPress, 1994.116pages; $12.95, paper.

How do people determine how hard they will work and how well they will perform? Popular theories abound. Most theories, according to the authors, focus on the relationship between outcomes and satisfaction, and that offering an outcome is just not enough. Green’s research shows that the employee’s decision regarding performance is the result of a chain of events: Effort leads tope$or- munce, which leads to outcomes, which results in Satisfaction. Each event carries possibilities that can determine the end result.

Beginning with the realizations that performance management cannot be forced, that offering the same incentives to everyone will not neces- sarily have the same desired acceptance, and that follow-through on the part of the organization will determine ultimate outcomes, this work demonstrates how getting employees involved in their own problem solving pays off.

Effective manager-employee communication is the key to uncovering the causes of motivation problems. The big leap here is to go to the source-the employee. Employee- suggested solutions tend to be less complicated and less costly while being more effective in the long run. Open, neutral, yet probing questions, within the framework of the process, produce a simple but vital truth: what employees believe is infinitely more important than what is being offered by management to motivate them.

B e Belief System is based on three

primary tenets: employee confidence level regarding their ability to do the job, the amount of trust the employee has in the organization’s ability to follow through with the outcome, and the amount of satisfaction derived from the outcome. Deficiencies in any of these three will result in a defi- ciency in employees’ motivation to perform.

Competing for the Future by Gary Hamel and C. K. pt.ahala& Boston Harvard Business School, 1994. 336 pages; $24.95.

“In this race to the future there are drivers, passengers, and road kill. . , , A company surrenders today’s business when it gets smaller faster than it gets better. A company surrenders tomorrow’s business when it gets better without getting different.” Pithy pronouncements like these give po- tency to this must-read book without disguising its solid moorings in both practice and academe.

This is a book about strategy that gives short shrift to strategic planning. The authors are uninterested in competing for market share; their goal is guiding a corporation’s restructuring of its industry. Drastic downsizing might give a company a brief breath- ing spell, but since it is evidence of a failure in leadership (“the bottleneck is usually at the top of the bottld7), restructuring will not save the enterprise. Reengineering or CQI might make a company better for today, yet offer nothing for future challenges.

The authors offer hard, tested guidance for envisioning and migrating to the future. Industry foresight, strategic architecture, stretch, lever- age, and gateways to the future are

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the type of guidance offered here. It will be prized by many seeking to become drivers rather than either passengers or road kill.

The Process Reengineering Work- book by Jerry L Harbour. White Plains, Ny: Quality Resources, 1994. 147 pages; $19.95.

Much has been said and written recently about the subject of reengineering. However, most authors have chosen to develop first the theo- retical concepts in their writings, and then to present the reader with examples of successful reengineering efforts. Jerry Harbour has taken a different approach. He has correctly named his text a “workbook,” and it is a very good one. The material is designed to flow logically from the establishment of why process reengineering is important in today’s competitive environment, to the presentation of a practical seven-step process improvement model, to exercises and cases for readers to work through while testing their understanding of the skills learned.

Harbour quickly establishes the need of all organizations to identrfy core business processes, and then to apply the reengineering concepts to make these processes perform better, faster, and cheaper. The author suc- cinctly states the challenge as, “no matter what industry or company you represent, everyone wants the same thing: improve quality, do things faster, decrease costs.”

The Workbookis designed to be studied (rather than just read). It is bound spirally so it will lay flat when opened. The text contains good examples. A collection of exercises with

suggested solutions listed at the end of the book and five case problems are provided for the reader to work through. Tables and graph forms are provided for the reader’s use while making the required case improvements. And another plus-the price is right!

High Performance Leadership: HRD Strategies f o r the N e w Work CuZture by Philip R. Harris. Amherst, MA: Human Resource Development, 1994. 377 pages; $24.95.

This is a revised edition (originally published in 1989)). Although dozens of other books address similar topics, this one has the distinction of a human resources focus-a focus aimed at supervisors, managers, and executives who, the author states, should have human resource development responsibility.

The book is structured so that each chapter is outlined in a similar manner: Introduction, Input, Interac- tion, and Instrumentation. The introduction sums up the objectives of the chapter. The input segment inventories the various management theories applicable to the chapter topic. Inter- action presents examples of group processes as possibilities for sharing information. The sections on instrumentation give samples of appropriate inventories, surveys, and ques- tionnaires.

Chapter topics include the usual material: increasing performance at work, improving communication skills, enhancing team relations and meeting effectiveness. One standout chapter, however, deals with cultural diversity and the influences of culture on behav-

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ior, learning, and work habits. Two helpful appendices are in-

cluded. One is a detailed directory of human resources organizations and publications; the other is an extensive bibliography of references for managers.

Leadership and the Customer Revolution by Gary Heil, Tom Parker, and Rick Tate. Ny: Van Nostrand Reinhold, 1994. 256 pages; $24.95.

The present-day emphasis on the importance of the customer began with the quality revolution. Once started, the revolution has grown to such a state that almost every organization is finding itself scrambling for consistent ways to deal with the rapid pace of change that is affecting firms. Today’s customers are smarter and better educated than the previous generation of customers. They expect to be served quickly, reliably, and efficiently. The authors conclude that there are no uniform answers for managers to employ. Each organization must transform itself to become capable of delighting customers by helping all employees of the firm reach their full potential.

leadershipandthe CustmwRevo- Zutzonsuggests that organization leaders must mount a revolution. Old ways of thinking will simply not suf- fice; new ways of thinking are required. The leader must serve as an architect while drafting a new system of work and work relationships. The leader must serve as a customer advo- cate. It is critical that the organization respond consistently over time to changing customer needs. And, finally, the leader must create a genu-

ine caring environment where the people of the organization become internally motivated to learn and grow to their full potential. Accomplishing these goals will be no easy task!

The authors offer 20 different challenges that must be met and ad- dressed before the needed revolution can be accomplished. There are choices that leaders must make. The authors illuminate the choices, discuss possible outcomes, and challenge leaders to examine their beliefs by helping them chart a future that is humane, effective, and profitable.

Taking Care of Business by Greg Hutchins. Essex Junction, JT: Oliver Wright, 1994. 222 pages; $24.

Global competition continues to exert pressure on American firms to strategically position themselves to compete internationally. The I S 0 9000 quality standard is emerging as a global standard. The pressure to con- form to the IS0 standard is still largely fed by businesses seeking to meet certification requirements of their customers. Greg Hutchins presents many additional benefits of IS0 registration beyond the satisfaction of customer demands. The primary thrust of the book is to demonstrate that the pur- suit of IS0 registration will lead to the achievement of real business improvement on a consistent basis.

Taking Care of Business explains how to develop an effective quality system based on I S 0 9001. The book is a nontechnical, easy-to-read overview of IS0 9000. The first part of the book demonstrates the ability of the IS0 system to create customer and marketing benefits, organizational and operational benefits, and supplier

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James W. Marncm, 3emme M. Hatcher, Racbael Green, and Bonnie A. Hodges

benefits. The second part of the book briefly examines the 20 quality system elements of I S 0 9001 and includes personal insights and tips regarding each element from quality professionals who have had personal experience with I S 0 9000 registration efforts.

Upsizing the Individual in the Downsized Organization by Rob- ert Johansen and Rob Swigert. Reading, MA: Addison-Wesley, 1994.224 pages; $24.

Sometimes a book does not de- liver on the promise within its title, but delivers a valuable message nev- ertheless. Such is the case with this one.

This is an organizational management book, not a book about creating productive workspaces. The authors address how fewer managers can work at guiding more people, with greater diversity and geographic separation, while relying on less loyalty to the company. They discuss how organizational memory is usually carried by middle- managers, many of whom are now gone.

The proposed solutions, and the mother lode in this mine, are in the last half of the book. The fishnet model is offered as an organizational model that is properly broad, expand- able, and flexible for today’s challenges. Anytme/anyplace work is a useful concept if it is not abused. The technology of communication is applied to “team rooms” and other adaptations for the new workplace. Just- in-time learning is offered as a model for technology-based support for the new “intentional learning” environment. Techniques are offered for fostering continuity and community

amidst the fearful uncertainties of the day.

The importance of workplace learning is implicit here; the observa- tion that job security means being prepared for the next assignment is a guide for employer and employee alike.

The I S 0 Answer Book by Rob Kantner. Essex Junction, VT: Oliver Wright, 1994.270 pages; $24.

Rob Kanter has taken a really neat approach to presenting helpful information regarding the I S 0 9000 quality standard. Most authors present the complete standard and then attempt to explain what each element within the standard means. Kantner chose to pose general questions that are often asked by individuals seeking to understand IS0 9000. There are 101 questions listed, each answered in straightforward and practical fashion. The questions are grouped under logi- cal categories. For example, questions in part one deal with an overview of I S 0 9000; questions in part two explain the origin, components, and application of I S 0 9000; and the part three questions explain the Euro- pean Union, accreditation bodies, and the meaning of a quality systems registrar. There are a total of six categories of questions in the book.

Within each of the 101 questions there are two levels of response. First, there is a compact “capsule answer,” which is direct and to the point. Then there is a broader, more detailed response. The detailed response includes a complete discussion of the implications and challenges involved in the question.

Organizations preparing to em-



brace the challenge of becoming reg- istered under I S 0 9000 would benefit by a careful reading of the ISOAnswer Book. The text should be read straight through and then retained as a reference to provide clarification of the many issues that may later surface during the registration effort.

Mutual Gains Enterprise: Forging a Winning Partnership among Labor, Management, and Govern- ment by Thomas A. Kochan and Paul Osterman. Boston: Hward Business School, 1994.272 pages; $27.95-

The authors ambitiously seek to address several major problems: the need for more and better training of the work force, the prevailing management animus toward unions, the problems of union viability, the lim- ited effectiveness of government policy regarding the improvement of workplace conditions, and the failure of human resources professionals to become part of the strategic decision- making process in their organizations.

Not surprisingly, they offer a solu- tion: the mutual gains enterprise. The bottom line is that enlightened leadership is required, and a few companies (Xerox, Motorola, Hewlett-Packard, and others) are implementing quality of work life reforms. The NUMMI and Saturn experiences are steps in the right direction. What is needed is a comprehensive new approach encompassing innovation in both union and management thinking and practice, and an overhaul of outdated labor laws. Human resources practices must be upgraded as well in this massive overhaul of employee relations.

The general guidelines proposed

here involve “mutual gains” (labor acceptance of CQI initiatives in return for acknowledged collective bargain- ing rights, for example), and avoid- ance of government intervention in- sofar as possible. Alternatives can be found. For example, German workers’ councils offer a means of fair participation and alternatives for dis- pute resolution.

An alienated work force cannot compete effectively in the global market. American labor traditions are essentially adversarial in nature. Aca- deme can address the problem with broad interdisciplinary research, and human resource development can cultivate a more international per- spective.

This is a very important book that should help stimulate dialogue in a somewhat neglected but crucially important area.

The Value Imperative: Managing for Superior Shareholder Returns by James M. McTaggart, Peter W. Kontes, and Michael C. Mankins. Ny. Free Press, 1994. 366 pages; $35.

The focus of this book is the management of companies owned by private shareholders maximizing shareholder value. The first three chapters form the groundwork for understanding the nature of the task. The authors contend that achieving value is what distinguishes great companies from the mediocre, and that value- based management can become the foundation of a company’s most important competence, namely creating wealth. In part two they promote such steps in maximizing shareholder value as linking market and management

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128 National Prodgctivity Review/Spring I995

values, offering guidelines in becoming skilled in the process of strategy development.

The third part, on creating higher- value strategies, offers suggestions for various strategy alternatives needed for creating shareholder value consistently. In the final section, on creating a higher-value organization, the authors show how companies can reengineer their current processes to create a lasting competitive advan- tage.

Using many examples drawn from real-world situations, this book shows managers the great potential for wealth creation and the necessity for companies to achieve that potential.

Feedback Toolkit: 16 Tools f o r Better Communication in the WorkpZuce by Rick Maurer. Port- land, OR: Productivity Press, 1994. 106 pages; $15.

We all need to know how we’re doing, whether or not we are on the right track. As simplistic as that seems, it is very difficult information to ob- tain. Despite its importance, communicating this kind of information makes most people uncomfortable.

The authors begin the work with examples of managers who have good working relationships with their staffs, showing how feedback works to achieve this. In turn, he points out aspects of management that hinder effective feedback. General guidelines for giving feedback are presented, as is a simple six-step structure for integrating them. These six steps form the framework for the 16 practical tools that make up the re- mainder of the book. In the last section of the book, Maurer describes

tools for giving feedback for both individuals and groups, offering suggestions for giving unpleasant work- related feedback as advantageously as possible. Maurer’s discussion of SARA (Surprise, Anger, Rationaliza- tion, Acceptance) deals with the range of emotions that can arise and how to cope with them.

With its direct, concise approach, Feedback Toolkit is highly effective in simplifying the complex subject of communication in the workplace.

QFD: The Customer-Driven Ap- proacb to Quality Planndng and Development edited by Shigeru Miflulo. Tokyo, Japan: Asian Pro- ductivity Organization, 1944.365 pages-

The first English translation of a Japanese book on the subject of Qual- ity Function Deployment (QFD) ap- peared in 1990. The book was named Quality Function Deployment: Inte- grating Customer Requirements into Product Design, and it was edited by Yoji Akao. The authors of the present book felt the translation was somewhat loose, and that QFD applications in the United States have suf- fered as a consequence. The present book is a recent revision of a text originally published in Japan 15 years ago.

The authors contrast the traditional use of an analytic approach to problem study with the QFD approach. They conclude the analytical approach works well in locating causes that generate an effect that is to be eliminated. The popular cause-and- effect diagram is an excellent example of a tool designed for the analytical approach. This method is


comparable to “walking upstream.” It works well for analysis once manufacturing of a product has begun, but it is ineffective for problems related to the development of new products. The “design approach” works better in this case. The design approach “works downstream” to effectively turn quality functions and problem solutions into well-coordinated activities across departments and product development phases. Beginning with this introductory thinking, the authors proceed to develop a complete exposition on current QFD thinking.

The book is divided into five parts. Part one traces the history of QFD in Japan, summarizing significant contributions by both Japanese and American writers. Part two deals with topics related to the deployment of sales, planning, and design stages. The third section covers quality deployment in production engineering and manufacturing. Part four presents applications, and part five discusses future issues related to QFD. The text is one of the most definitive resources available on the subject of QFD.

Work Teams That Work Ski& f o r Managing Across tbe Organiza- tion by Anthony R Montebello. Minneapolis: Best Sellers, 1994. 326 pages; $24.95.

There are already hundreds of books on teams and teamwork, rang- ing from the scholarly to the simplistic. What makes this one stand apart from the crowd is its straightforward, practical language and design. The text is generously interspersed with charts, worksheets, and diagrams. The chapters work equally well as stand-

alone guides or in sequence. This book is arranged in three

sections. The first part, on getting organized, provides a rationale for teamwork and explains the develop- mental stages of teams, including how to establish an inspiring mission and set sound goals.

Part two, on synergy in action, provides teams with the techniques to make meetings productive by clarify- ing the roles and responsibilities of team members. Montebello details how open communication is vital for decision making, problem solving, and conflict management.

The final section, on the tools of the trade, presents methods for ap- praising team performance and techniques for planning future strategies.

Work Teams That Workhishes the means to enable people to improve teamwork and thereby improve employee participation, satisfaction, and results.

Modeldng f o r Learning Organixa- tiow by John D. W. Morecrofi and John I). Sterman. System Dynam- ics Series. Portland, OR: ptoduc- tMty Press, 1994426 pages; $45.

Educators are beginning to recognize that children learn-and adapt their play-through computer games and virtual reality. Modeling can provide the same learning for organizations, specifically their management teams.

Models, namely computer models, should be complete and precisely represent reality to the prevailing mindset of the manager. That’s a tall order. But even if the order cannot be filled satisfactorily, models can “map” and activate learning, filter and orga-

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nize knowledge, and offer microworlds for experimentation, cooperation, and learning.

The editors, professors at the Lon- don School of Economics and Massa- chusetts Institute of Technology, hint that the Europeans are well ahead of us with this technique, but American contributors to the volume outnum- ber Europeans.

The emphasis of the modeling process here is on producing learning rather than predictions. Models are coming into wider use and can serve to activate knowledge, focus discussion, challenge mental models, and aid learning. Several case studies point out that many business crises are created as much by management operating procedures as they are by fluctuating business conditions. Mod- eling and microworlds can help management teams ‘hap,” critique, and improve their mental models. Man- agement flight simulators can be used in learning labs to great effect.

Authors of these articles include Peter Senge and David Lane. This is not a book for novices, but persis- tence can overcome the jargon and yield great insight in how computer programs can be used to develop effective learning organizations.

Forging tbe Heroic Organization byEmmett C. MurphywithMichael Snell. Englewood Cliffs, NJ: Prentice Hall, 1994. 300 pages; $24.95.

The authors suggest that “heroism” is the driving force behind human progress. They further contend that heroism serves as a great integrating force in human effort. Heroism draws together the various pieces of

organizational life to create a whole that is greater than its parts.

Murphy laments the loss of heroes in the United States government, its society, and its institutions. He points to a “crisis of faith” in the country by pointing to allegations of sexual mis- conduct by the President, the fabrication of stories by media in order to create sensational headlines, and the failure of health care to adequately care for forty million US. citizens. Murphy suggests that there has been a steady decline in society since the sixties. He reasons that it is time to rekindle through faith a new generation of organizations where leaders accept the responsibility for setting aside excessive selfish motives and build a new order based on “heroic action.” The events that led to Watergate, the Iran-Contra affair, and Whitewater all point to our current need for authentic heroes.

The author borrows from the Cangleska Wakan-the Native Ameri- can Sacred Medicine Circle-in order to build a model for creating effective organizations for the future. The Cangleska Wakan recognized the in- terrelatedness of everything in the world. The prescription for building heroic organizations includes three primary principles: practice strategic humility, build heroic partnerships (cooperation), and walk in a sacred manner (heroic action). The three principles are applied through a “seven-step heroic process.”

Murphy presents numerous case studies involving leading American companies where application of the principles through the seven-step process produced significant organizational transformations. The conclud- ing section provides some very prac-

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tical, step-by-step guidance for developing an organizational mission statement and a useful instrument for measuring the effectiveness of a mission statement.

M a s t e r Scheduling by John F. Proud. Essex Junction, VT: Oliver Wright, 1994.529 pages; $60.

The subject of master production scheduling, or simply master scheduling, is an important component of modern manufacturing practices. John Proud has written what can probably be referred to as the Bible of master scheduling. Prior to this text most detailed discussions of master scheduling were found as chapters on texts devoted to other aspects of manufacturing excellence.

The subject of master scheduling is technical in nature. For this reason, Proud’s presentation will have its stron- gest appeal to manufacturing profes- sion& who are responsible for de- signing and operating the scheduling function. Managers of marketing, material procurement, finance, engineering, and design functions will also find the text helpful in understanding the relationship of their unit to the master scheduling function.

The chapters of the text have been organized into four basic groups. Chapters 1 through 6 explain the basic terminology and the calcula- tions used, and present a discussion of how to manage change within the master scheduling environment. Chap- ters 7 through 11 cover techniques used in specific manufacturing envi- ronmentrsuch as developing a master schedule in a make-to-stock environment or a make-to-order environment. Chapters 12 through 14 de-

scribe the related activities of sales and order planning through rough- cut capacity planning and demand management. The final chapter discusses implementation of a master scheduling process.

Richard Ling wrote the foreword to the book. He offers sound advice to the reader: “When first reading the book, the reader could become mired in the technical detail.. .my suggestion is to concentrate on those areas that apply to your environment.”

Managing Imitation Strategies: How Later Entrants Seixe Mar- kets from Pioneers by Steven P. schnaars. Ny: The Free Press, 1994. 294 pages; $24.95.

The primary thesis of this work is that the benefits of pioneering products is oversold. The wins that imitators have accrued rate recognition as a legitimate marketing strategy and should .be as much of a company’s game plan as strategies for innovation. Schnarrs, chair of the department of marketing at Baruch College of the City University of New York, has invested seven years of research to formulate strategies for managers to implement successhl product imitation. Imitators seek, and receive, little press. Innovators, on the other hand, eagerly announce their discov- eries. The author’s research shows that successful imitation occurs frequently and in all areas of manufacturing and industry.

Schnarrs relates 28 case histories in which imitators prevailed over innovators. The products researched run the full gamut-from anyhng electronic to foods, beverages, services, office products, and even finan-

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James W. Marcum, Jerome M. Hatcber, Racbael Green, and Bonnie A. Hodges

cia1 investments. Imitation is an effective and frequently used market entry strategy. Commonly an innovator de- signs, creates, and markets a product without reaping any success before an imitator, waiting patiently for the flaws to surface, corrects them and wins the profits.

There are different types of imitation, from illegal counterfeiting to creative adaptations, along with the three basic strategies used by successful imitators to dominate markets pio- neered by others. These are selling lower priced generic versions once the product becomes popular, improving while imitating the product, and dominating markets using capital and distribution advantages that smaller innovators and pioneers cannot match. The conclusion is not that innovation is not worth the effort, but that the order-of-entry effects are oversold and that many times those that came first may end up being last.

TPM in Process Industries edited by Tokutaro Suzuki. Portland, OR: Productivity Press, 1994. 391 pages; $85.

The growth of the subject of Total Productive Maintenance (TPM) paral- lels the development of the world quality movement. Preventive maintenance (PM) was first introduced to Japan from America in the 1950s. At that time Japan was rebuilding its process industries after the conclusion of WWII. The Japa- nese began to refine and improve the PM strategies to embrace a move toward extensive automation and just-in- time production. The convergence of these influences in Japan’s fabrication and assembly industries led to a unique Japanese approach that became known

as “TPM,” which is a form of maintenance involving all employees.

The source of much TPM ad- vances can be traced to the Japan Institute of Plant Maintenance. The original text on TPM was published by the JIPM in 1982. It was translated into English and published in the United States in 1989 under the title, TPM Development Program. The present book was published in Japan by the JIPM in 1992.

P M in Process Industries introduces a measure for overall plant effectiveness (OPE). Numerous examples and strategies are presented for reducing losses in a process environment. The book discusses the effective use of cross-functional project teams to reduce targeted equipment losses. The book also reveals how process industry plants may overcome low operator-to-equipment ra- tios to allow operators to carry out the improvement activities associated with autonomous maintenance. The text suggests that firms engaged in autonomous maintenance first focus on understanding and improving work, and then on defining and reallocating work among operators.

The book is very readable. Any process industry manager seeking insights into ways of reducing break- downs and accidents would find the book to be an excellent resource.

ARTICLES Shari Caudron, ”Tie Individual Pay to Team Success,” PersonnelJour- nal, 7310 (October 19941,4046.

Better decisions will be made faster if employees from different functions are grouped together and given joint responsibility-but only if employees

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Books and Articles in Bvief

see the value of teams and understand that team accomplishment is more important than individual achievement. This is done by communicating the value of teamwork, and the most effective form of communication is the employee’s paycheck. In most companies today, however, the system is based on paying employees for individual performance. Group in- centive plans are relatively rare.

Human resources managers who seek to align the compensation system with the company’s teamwork goals should move slowly. Another obstacle to face is establishing the measurements by which team members will be evaluated. These measurements should be completely de- fined before being introduced and involving team members in their design is essential.

People will still want to be recognized for their individual contributions. One way is to compensate individuals based on the skills they bring to a team by replacing merit-pay with skill-based pay. However, for the group members to think of themselves as a group, a percentage of their compensation must be team- based.

The author acknowledges that there is no such thing as a “right” pay plan for all teams, but argues that it is possible to develop different compensation systems to support the team- based company.

CWord Clarke, “Making Diversity More Manageable,” Truinisg G Development, 48:9 (September 1994),53-59-

One way to make diversity more manageable is to categorize the cultural variables that can affect training.

The author’s research identifies five cultural value orientations shared by all people: Our relationship to nature, our relationship to the supernatural, our relationship to other people, our time orientation, and our activity orientation.

From these five orientations, Clarke draws some general conciu- sions. People in cultures that empha- size harmony with nature may tend to find conceptual definitions meaning- less. They may not learn effectively when the learning environment fails to meet their expectations. Spiritual- ism may affect views on professional- ism. Trainees whose culture has taught them to believe in absolutes tend to prefer comprehensive training goals and skills. People’s views on relationships between themselves and others influence their sense of self-image and whether they feel a sense of inclusion in group situations. Impor- tant aspects of time orientation are that some cultures value history while others value change. Such differences can influence trainees’ views on quan- tity of training needed and the training’s timeliness. Trainees’ activity orientation can influence their need for action, their participatory styles, and the ways in which they analyze data.

When applying these orientations, managers should remember to avoid stereotyping, appreciate differences, and champion change.

WilltamE. HalalandJayLJebodtz, “Telelearning: The Multimedia Revolution fn Education,” Fatur- k t , 28:6 (November-December 1994), 21-26.

“Anything, anytime, anywhere” is the catchword of the telecommunica-

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James W. Marcum, Jerome M. Hatcber, Racbael Green, and Bonnie A. Hodges

tions revolution in education. Learn- ers will take control of their own educational destiny, choosing both what to study and the preferred method of learning. Location and tim- ing are exiled as factors by the new technology. The educational establishment faces a Herculean task in coming to grips with the new realities.

Automated instruction/learning.is changing systems from the kindergar- ten level to higher education to corporate training. The individualization and flexibility of the new methods can shorten learning time by half and increase retention by 80 percent. Apple and Hewlett-Packard have reduced classroom training by 75 percent or more with the new technologies, which are becoming dramatically more affordable.

Distance learning by means of interactive media is a very different phenomenon from the correspon- dence courses of the past. Teleconfer- encing and networking, via the Internet and other resources, foster interaction with professors, fellow students, and the “universe of information sources,” encompassing video, audio, databases, and traditional resources from around the globe.

The implications for the university are staggering, and many of them are negative. On the bright side, the campus could be displaced by genu- ine communities’ of scholars focusing on methods as well as content and fostering the learning community.

Susan Kinchell and Donald J. Daly, “American Management: Bleeding Manufacturing Dry,” Business and Society Review, 90 (Summer 1994), 20-23.

Can American companies afford American management? That seem to be the issue raised by these Cana- dian business professors following a study of factor automation in Illinois and Michigan.

Hostile takeovers are one culprit, resulting in absentee ownership and disinterest in the competitiveness of the subsidiary. Capital is used specu- latively rather than in investment to upgrade obsolete equipment. The absence of engineers and the abun- dance of finance people in upper management bodes ill for quality and innovation.

A general discouragement in the face of cheap competition from Mexico, China, and elsewhere pro- duces broad feelings of futility. In- tense competitiveness and lack of long-term commitment play a role. One recent German immigrant business owner made sharp contrast with conditions in Germany, where he had to post bond to open a business. This made for commitment, and had he closed his doors and walked away from the bond there would have been something for employees and other stakeholders.

Technology adoption may be one additional victim of some current management practices.

Edward E. Lawler III and Jay R. Galbdth, “Avoiding the Corpo- rate Dinosaur Syndrome,” Orga- nizational Dynamics, 2 5 2 (Au- turnn 1994), 5-17.

The dinosaur image for sluggish corporate organizations is a powerful one, and widely used in the business press to portray poor response to new challenges, whether off-shore (in the

134 National Productivity ReviedSpring 1995


case of General Motors) or in a new format (in the case of Wal-Mart and Lands’ End for Sears). Attributes of such dinosaurs include arrogance, large size, centralized decision making, isolation from the customer, organizational stability, and focus on internal issues and procedures.

The authors, prominent management professors at Southern Cal, offer prescriptions that amount to a cultural change for most established organizations. In addition to expected recom- mendations, such as environmental scanning, support of innovation, ongoing critical evaluation, decentrali- zation of control, and structural flexibility, they suggest additional strategies. “Wild geese” must be nurtured to avoid “group think.” A culture of open communications and full discussion is essential. Established products must be attacked continuously with the idea of making them obsolete; it is far better to displace a product with one of your own than to have it displaced by a competitor with an attitude.

Large organizations can revitalize themselves, but it requires that they develop an attitude of their own.

Yong S. Lee, “Technology Transfer and Public Policy in an Age of Global Economic Competition,” Policy Studies Journal, 22:2 (Sum- mer 1994), 260-266.

The Cold War is over; long live the economic wars! Such is the back- ground for a “symposium” of ten articles exploring broad issues of technology transfer and appropriate poli- cies for the new situation. This article introduces and gives an overview of the various articles in the collection,

authored mainly by academics with a smattering of researchers and agency personnel, namely the National Sci- ence Foundation.

Technology transfer is an awk- ward term for processes as varied as connecting researchers and produc- ers and upgrading the educational infrastructure of a nation. It is the kind of issue that frequently involves government agencies, universities, and corporations, so getting the topic under control is tricky.

Article topics include a survey of academic attitudes about university- company technology transfers, a com- parison of civilian technology strategies among several great powers, civil- military technology integration, and the role of the federal government and some of its labs. The genre is scholarly, so uninitiated readers will find this slow going. But the topic is important, so some managers may have to grab a dictionary and dive in. Extensive notes and references make this a useful resource.

Robert Marshall and Lyle Yorks, "Planning for a Restructured, Re- vitalized organization,” Sloan Management Review, 35:4 (Sum- mer 1994), 81-91.

Restructuring seem unavoidable in business today. However, a company can be impaired following downsizing if the wrong combination of employees remain. Redeployment is successful only if groundwork is properly laid, including a restructuring driven by a strategic focus.

Traits shared by many of the companies consulted by the authors include utilization of a thorough, ongoing communications plan, use of a

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James W. Marcum, J m m e M. Hatcber, Racbael Green, and Bonnie A. Hodges

participative process whereby the structure is developed from the bottom up, and production of compe- tency-based position descriptions. Other steps for implementing a successful redeployment are the development of a system of reviews and appeals, implementation of an internal placement program, provision for special training of employees at all levels, and creation of a plan for organizational recovery following redeployment.

In analyzing these companies, the authors also present eight areas in which the redeployment process can break down: failure to communicate, inadequate attention to the new organizational design, lack of clear execu- tive leadership, not setting and adher- ing to a schedule, putting people in lower-level positions just to keep them in the company, lack of cooperation between functions, inadequate training, and moving too slowly into the renewal phase once restaffing has taken place.

Faye Rice, “How To Make Diver- sity Pay,” Fortune, 1303 (August 8, 1994),78-80.

At companies where diversity is successfully managed, different cultures are embraced. Organizations that appreciate the business value of a diverse work force have learned several lessons:

A CEO’s commitment is a must. When the CEO cares enough to meet with employees, he or she signals that diversity is important. Diversity should be a business objective, equally weighted in determining managerial salaries and bonuses.

Companies should adopt a plan

for addressing the concerns of white males, many of whom worry that women and minorities are being given an unfair edge. Compensation and career tracking should be scrutinized for fairness. Conjunctly, high-potential individuals should be identified.

Top executives should be given the experience of what it’s like to be a minority in order to break out of their “comfort zones.” Diversity training should be used, but trainers and consultants should be chosen care-

Differences should be celebrated through festivals or other programs. Companies should improve the sup- ply of diverse workers by looking for schools that have diversity in the student body.

Finally, companies shouldn’t lose their focus during downsizing when deep-seated prejudices can emerge. A preventive measure is the establishment of procedures to help maintain percentages of women and minorities at all levels.

fully.

Charlene Marmer Solomon, “HR Facilitates the Learning Organha- tJon Concept,” Personnel Journal; 1311 (November 19941,5646.

On the face of it, the learning organization would seem to be a dagger pointed at the heart of the human resources department. What will become of the training function in the learning organization? Actually learning moves away from the pe- riphery and into the heart of the learning organization.

Adapting to the learning organization requires a mind-shift on the part of the human resources professional. Training jumps out the class-



room, away from rigid schedules, and is designed to meet management goals. Learning becomes ongoing, geared more to core competencies than to specific content.

Success stories from Chapparal Steel, Harley-Davidson, and Minne- sota Educational Computing Corpo- ration are used to illustrate the excite- ment and potential impact of effective application of learning organization concepts.

Robert Theobald, “New Success Criteria for a Turbulent World,” Phnning Review, 22:6 (November- December 1994), 10-13,43.

Theobald is a futurist, but first was an economist. He begins this essay by arguing that the key variable for economic growth since the early 19th century was providing effective demand. Exporting to the colonized world sufficed in the late 19th century. At the beginning of the 20th it was Henry Ford’s provision of a living wage to workers so they could afford a Ford, a trend that other corporations followed with a resulting new middle class. It was World War I1 that ended the depression, and in the post-war years it was a new attitude about credit and debt that fueled prosperity.

In the 1990s has come a reluc- tance to mortgage the future to debt, merging with a general loss of confidence in basic institutions. The result is a crisis more extensive in its dimen- sions than was ‘the depression of the 1930s. Turbulence and discontinuity require new success criteria.

Society rejected the “limits to growth” paradigm raised in the 1970s; it required an abandonment of our dreams. Unfortunately, the new dreams must allow for harsh demo- graphic and environmental realities, and largely remain to be articulated beyond the old image of greater con- sumption.

Theobald argues that the stresses of living amid a dying industrial world and an emerging post-industrial culture are to blame for much of the violence and trouble of our day. His proposals: Give people more time off to study or to reflect, get more involved in the community, and devote some serious organizational time (like a half-day a week) to working on the future and the organization’s role in it. Management’s role should be refor- mulated around three functions: envisioning and migrating toward the future, leading the daily work effort, and providing nurture and support (from facilitating to finance). 0

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Books and articles in brief

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