Jim Collins – Good to Great

Good to Great: Why Some Companies Make the Leap...And Others Don't

Jim CollinsGood to Great: Why Some Companies Make the Leap…and Others Don’t (Random House Business 2001)


Read The Halo Effect by Phil Rosenzweig for an absolutely devastating debunking of Good to Great (or the “peer review” by Matthew Anderson). I won’t repeat what is readily available in Rosenzweig‘s book, or elsewhere, but will say that Rosenzweig systematically picks apart how Collins seems to have no understanding how to conduct proper research and how many of Collins’ theories don’t hold up to scrutiny. Much of Good to Great sounds maddeningly like the kind of “science” relied upon by climate change/global warming deniers. In fact, if you read the collection of Albert Einstein‘s writings Ideas and Opinions, in numerous places he states that science cannot involve deducing theory from evidence, which happens to be precisely what Collins claims he has done with Good to Great and Collins calls it the physics of business/management. Everything you need to know about Jim Collins and his ilk can be summed up by recognizing that probably no union has ever organized workers to demand that management gurus like him be brought in. This is not neutral stuff.  It is partisan rhetoric used to consolidate power with a management class, and strip it from ordinary workers.  In more concrete terms it is about selling feel-good myths to top corporate management, to justify shake-ups and layoffs, and the pay-for-performance regime in executive compensation, for example. There are a few good points in here, but mostly they are reworkings of existing concepts assigned useless new buzzwords by Collins. As many others have made clear, it is sort of amusing to see how many of the companies that Collins trumpets have since gone under (Circuit City), been involved in massive fraud (Fannie Mae, Wells Fargo), or are just plain slimy and corrosive to public well-being (Philip Morris). He seems to defend this in a crude way, simply implying that businesspeople should be sociopaths… Anyway, the bottom-line myth behind this is the idea that MANAGEMENT holds the key to the success or failure or a business. Read Confronting Managerialism by Robert Locke and JC Spender for a useful (and quite different) historical perspective on that. Indeed, the late sociologist Pierre Bourdieu said, “‘Management Theory’, a literature produced by business schools for business schools, fulfills a function identical to that of the writings of the European jurists of the sixteenth and seventeenth centuries who, in the guise of describing the state, contributed to building it: being directed at current or potential managers, that theory oscillates continually between the positive and the normative, and depends fundamentally on an overestimation of the degree to which conscious strategies play a role in business, as opposed to the structural constraints upon, and the dispositions of, managers.” (The Social Structures of the Economy).

Chris Argyris – Flawed Advice and the Management Trap

Flawed Advice and the Management Trap: How Managers Can Know When They're Getting Good Advice and When They're Not

Chris ArgyrisFlawed Advice and the Management Trap: How Managers Can Know When They’re Getting Good Advice and When They’re Not(Oxford University Press 2000)


Some good ideas here, but ultimately Argyris falls a bit short. His basic goal is to highlight how many business consulting programs are flawed. He does in fact offer some useful insights and is quite adept at describing some of the “real” problems that businesses face. His strength lies in taking a very psychological approach — it has echoes of the noted French psychiatrist Jaques Lacan. He emphasizes how much behavior of managers is motivated by defensive reactions to avoid embarrassment (what might psychologically be more generally termed “hurt”). Often this produces autocratic responses from managers who seek to impose unilateral control in a counterproductive way and then suppress meaningful discourse on critical topics (often permitting discussion only on what is irrelevant). Argyris’ descriptions fit situations I have witnessed firsthand. Unfortunately, much of this discussion gets mired in unnecessary jargon that is endlessly repeated but never adequately delineated (a glossary or reference table for key terms would help a lot). He does occasionally refer to his past books, but requiring a reader to obtain and read numerous other books in order to understand the current one is not really an acceptable way to write. Moreover, some of his jargon seems to consist of little more than re-labeling of existing concepts (for instance, much of his “theory in use” discussion seems a lot like Alfred Korzybski’s “the map is not the territory” dictum, or sociologist Pierre Bourdieu’s concepts of “habitus” and “a knowledge of the real world that contributes to its reality”). The book makes its key point in saying that other management advice tends to not be actionable or testable. A lot of that “other advice” is well-intentioned and perhaps necessary in the abstract — who can argue with injunctions to be accountable, have courage, and produce results? But, according to Argyris, many of these programs lack the detail to rigorously test unstated assumptions. This is a lot like saying those are necessary but not sufficient factors for success. It’s a more ideological attack on Tom Peters/Jim Collins/Stephen Covey nonsense than books like Phil Rosenzweig’s methodological critique in The Halo Effect (which is actually a much better book overall). Where this book falls very flat is that once he has torn down other approaches, Argyris puts little in its place. Argyris’ examples (often in the form of a transcript with annotations) are often esoteric, leaving the reader wondering about the context for the unexplained titles and roles of the characters, and are most often presented as if self-explanatory while lacking any actionable analysis (the very same flaw he points to in other programs). He discusses a lot of role-playing situations, but never clearly establishes that role-playing is an effective tool (one gets the impression that useful information is withheld from this book in order to encourage companies to instead simply hire the author as a consultant). But it also bears mentioning that Argyris is a strong influence on the bogus “fifth discipline” organizational learning crowd, and so must be viewed with a skeptical eye.

In short, this book highlights some extremely frustrating aspects of corporate and business culture, particularly some of the insufferable lies perpetrated by management seeking to assert (or reassert) unilateral control while feigning to engage in “collaboration” or “teamwork” (the real core of the Peters/Collins/Covey-style programs) that only applies to the lower rungs of a business. He offers useful clues to spotting those flaws. But other than that, this book doesn’t put much on the table as an alternative, so don’t come expecting to find it here. In the end this seems like a rather lightweight overview of a topic that deserves better treatment.

For a critique that offers an entirely different perspective (more academic, less practical — and with a few equally stupid recommendations), try Robert Locke and JC Spender’s Confronting Managerialism which offers a historical perspective on US management contrasted to German and Japanese styles and concludes that much of the problems have to do with balance of power (especially the influence of finance), pay inequality, differences between guilt and shame cultures, and the very concept of “professional management”. For instance, they show how Japanese-style programs (re)imported to the USA are often perversely brought over without some of the necessary foundational elements (like meaningful bottom-up employee empowerment). What I like about Locke and Spender is that they recognize that there is no substitute for intelligence and knowledge of the inner workings of a business and only certain organizational structures (the relatively flat ones like in Silicon Valley) can really make use of that talent, whereas others, it would seem Argyris among them, think (I would say wrongly) that good management can be “learned” in any organization independent from organizational structure. Spender and Locke also make compelling arguments that management, particularly the “MBA culture”, brings a typically unspoken agenda to the table and they do a good job elucidating that hidden agenda (de-skill white collar workers, engage in labor arbitrage, and generally substitute financial for engineering standards). Of course, those guys are not without their own flaws, as they seem to endorse German “christian capitalism” as some kind of solution to something, rather than simply taking a psychological approach and saying that US businesses tend to select and reward sociopathic behavior for ideological reasons. Even Rosabeth Moss Kanter might be another person who has offered better overviews of corporate culture at a high level.

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.