Business and Management

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Design Rules, Volume 1: The Power of Modularity, Carliss Y.
Baldwin and Kim B. Clark. MIT Press, 2000.
Modularity creates value both at the level of systems and at the level of
organizations. Baldwin and Clark describe a number of operators that
affect modularity: splitting, substitution, augmentation, excluding,
inverting, and porting. These operators have economic consequences on the
systems they modify. This is a book that I will study again. (Reviewed
Sept., '05)
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The Innovator's Dilemma,
Clayton Christensen. HarperBusiness, 2000.
Companies often get successful by giving customers what they want.
New companies may begin with a product that is less functional but better on
a dimension valued by non-customers. By the time the original company realizes
the threat, the new technology has improved enough to make it hard to stop.
(Reviewed Nov., '02)
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Good to Great: Why Some Companies Make the Leap... and Others Don't,
Jim Collins. HarperCollins, 2001.
Collins and his team set criteria for how to
identify a good company that became great (a transformation
sustaining value substantially above its industry). By looking at the
common strategies, they derived several rules:
Disciplined People:
- "Level 5 leadership": "a paradoxical
blend of personal humility and professional will."
- "First who, then what": get the right
people in the right position, and the wrong people out.
Disciplined Thought:
- "Confront the brutal facts (but never
lose faith)" ("The Stockdale Paradox")
- "The hedgehog concept (Simplicity
within the three circles)": "A hedgehog knows one thing." Stay within
the intersection of "What you are deeply passionate about," "What you
can be the best in the world at," and "What drives your economic
engine."
Disciplined Action:
- "A culture of discipline"
- "Technology accelerators" (not
drivers)
Finally:
- The flywheel and the doom loop":
Good-to-great is an accumulation of small successes, not flailing
around looking for big ones.
- "From Good to Great to
Built to Last"
These all seem like good ideals.
The only problem I have is that it's a retrospective study. (It's
like getting a bunch of people to flip coins, then noticing that
the person who flipped heads every time is a bald optimist with
green eyes: it's not necessarily the attributes that lead to the
result.) Some of the characteristics can only be assessed
retrospectively, so they have a flavor of being self-fulfilling
(you thought you had a hedgehog strategy, but it didn't work out,
so it must not have been).
With those limitations in mind, this
book is thought-provoking about what really makes for greatness.
(Reviewed Jan., '03)
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Marketing High Technology: An Insider's View,
William H. Davidow. Free Press, 1986. The examples are dated, but the
message is not: this book is about the importance of market segments and
selling a whole product.
(Reviewed Nov., 2004)
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Systemantics: How Systems Work and Especially How They Fail, John
Gall.
Pocket Books, 1978.
Peter Coffee recommended this in his keynote at Agile '06, and I
can see why. It's a humorous look at how systems are by nature out of
control. My favorite rule - "A complex system that works is invariably
found to have evolved from a simple system that works."
(Reviewed August, '06)
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Designing Organizations for High Performance, David P. Hanna.
Addison-Wesley, 1988.
A basic book in the area of Organization Development. Its theories
operate at a cultural level as much as a process level. The core is an
analysis of tasks, structure, rewards, people, information, and
decision-making.
(Reviewed May, '05)
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Harvard Business Review.
(Magazine). This almost-monthly
magazine features interesting articles on the challenges of business. I
particularly enjoy the case studies, where different experts comment on a
situation. I keep an article or two from almost every issue. (This month,
I kept "Managing the Right Tension," which talks about the challenges of
managing e.g., short-term vs. long-term, and I kept "Strategies to Fight
Low-Cost Rivals," which considers whether you should attack, co-exist, or
become a low-cost player yourself.) (Reviewed Nov., '06)
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One Page Management, Riaz Khadem and Robert Lorber, Quill, 1998.
This is clearly in the One Minute Manager family of books, and shares their style
of having a good nugget of information wrapped in a story you can read in an
hour or two. (The style wears on me after a while, but it's usually worth getting past.)
In this case, the authors argue for a very simplified report up the management chain. It's
sort of "balanced scorecard light," with some "management by exception" thrown in.
I'm not prepared to evangelize the particular report they use, but I like the
Big Visible Chart attitude.
(Reviewed March, '03)
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The
Seven-Day Weekend, Ricardo Semler. Portfolio, 2004.
"Empowerment" has been a buzzword, but Semler makes it happen in his
organization. He encourages people to make their own decisions and take the
consequences, and puts that in action in "his" company. By pushing power
down, people step up. This book is full of anecdotes of how Semler has
helped that work.
(Reviewed
April, '05)
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Revolutionizing Product Development, Steven C. Wheelwright and Kim
B. Clark. Free Press, 1992.
Product management can work better by tailoring its approach to the
reality of the project. Building a new platform is fundamentally different
from creating a follow-on for a previously developed platform, and should
be managed differently. The authors consider the structure, leadership,
tools, prototyping, and organizational learning in their quest to develop
a broad look at product development. The book rings true for a couple
situations I'm facing.
(Reviewed
Sept., '05)
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I link to Amazon.com as
part of their associate program, but don't forget to check
half.com and others, especially if you don't
mind a used book.
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