Phil Rosenzweig – The Halo Effect

The Halo Effect: ... and the Eight Other Business Delusions That Deceive Managers

Phil RosenzweigThe Halo Effect: … and the Eight Other Business Delusions That Deceive Managers (Free Press 2007)

If you’ve ever had to suffer through business management books by Jim Collins, Tom Peters, et al., this is a welcomed counterpoint. Rosenzweig spares you from having to make all the usual arguments debunking the junk science behind the outrageous claims in many of those other business management books. He does acknowledge that the cheerleading component of business management gurus can have a place. But most importantly he actually engages some of the serious academic research out there on business management, he weighs the different methodologies, and he ultimately concludes that there is no silver bullet, miracle diet or other simple formula or set of steps that inexorably leads to lasting success. Rosenzweig is not without his own blind spots. Anyone who relies as heavily on Joseph Schumpeter as he does naturally would. He also makes ad hominem attacks on W. Edwards Deming that seem odd. The only metric that ultimate matters to Rosenzweig’s analysis is stock price. If you recognize that the speculative nature of stock trading can deviate sharply and nearly independently from company performance (i.e., that the “efficient-market hypothesis” is unsound, as empirical data confirms), you won’t find a comparable recognition here. If you have moral qualms about the human toll incurred through profit at any cost, you’ll also have to look elsewhere for those critiques.