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In Search of Excellence: Lessons from America's Best-Run Companies, by Thomas J. Peters
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- Published on: 1900
- Binding: Hardcover
Most helpful customer reviews
68 of 71 people found the following review helpful.
selecting on the dependent variable
By A Customer
I don't have much to add to the other reviews here on the content, but as a couple of reviewers here have pointed out, there's a problem with the way they reached their conclusions. They chose a series of metrics as indicators of "excellence": they ranked companies on these metrics to identify a sample of "excellent companies": they then profiled these companies to find common features. Statisticians call this "selecting on the dependent variable": all excellent companies might have a certain feature, but you can only say that the feature has something to do with their excellence if non-excellent companies don't have it. The features that Peters picks out might be important, but the research they do doesn't in any way prove that.
There was a follow-up piece of research done some years later (not by the authors) in a paper called "excellence revisited", which argued that excellence was basically a temporary phenomenon, and that even these companies reverted to the mean. This looked at the "excellent companies" subsequent performance and found that on average, they had deteriorated significantly in all measures of performance. They then picked a sample of "non-excellent companies" using the same ranking criteria as the original book did at the time that the original research was done. Sure enough, these on average improved significantly in performance.
94 of 101 people found the following review helpful.
Management as Science
By Walter Nicolau
This publication is a survey written by a couple of McKinsey consultants that seek to define the characteristics of successful, I mean excellent, organizations using the McKinsey 7-S framework; Structure, Systems, Style, Staff, Skills, Strategy, and Shared Values.
Their findings suggest that eight attributes are common for an excellent organization; bias for action, close to the customer, autonomy and entrepreneurship, productivity through people, hands on, value driven, stick to the knitting (=focus on what you do best), simple form lean staff, and simultaneous loose-tight properties (balance between centralized/decentralized organization). This is it.
Although the authors have a pleasant narrative style and are eloquent in making their point, I hesitate to buy into the arguments presented, first and foremost because I question the all encompassing validity of the McKinsey 7-s approach. Secondly, the authors cite companies such as Digital and Wang as qualifying for excellency. Whatever these companies did during the eighties, it wasn't good enough in the end since their advantage was not sustained and hence I wouldn't call them excellent. Thirdly, the best before stamp is obvious.
I do find the introduction and management theory review very well written and enjoyable. Ironically, (for me) the authors find that chapter the least important part of the book. I beg to differ. Overall, this would make a good intro for those interested in management theory. While you're at it, try to also take a look at Michael Porter's and Peter Drucker's work. In my view they are the authority in the field.
32 of 33 people found the following review helpful.
Good from historical perspective, faulty in hind-sight
By A Customer
This book was the 1982 best-selling look at what were then excellent companies and an attempt to distill the eight attributes they had in common. It still ranks high as an important historical contribution, but two-thirds of the "excellent" companies disappeared, got acquired and disassembled, or went through extreme difficulties. Hindsight tells us the eight attributes were simply things those companies did well at the time, but were not the answer to longevity. In fact, at least five of the eight attributes appear to be detrimental now. However, this book is still a good read for those wishing to track the evolution of management thinking from at least early Drucker to the present.
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