Books in Brief: In Search of Excellence

In Search of Excellence, by Thomas J. Peters and Robert H. Waterman Jr. (Harper & Row, 360 pp., $19.95). As American industry has struggled through a morass of productivity and quality problems in recent years, a veritable horde of experts has traveled to Germany and Japan seeking the solutions to our current industrial malaise. Could better answers have been found right here? Management authorities Peters and Waterman think so. Thus, over the past four years, they have studied superior performance in American business and industry, trying to find out why such firms as IBM, Delta, Hewlett-Packard, and McDonald’s continue to be worldwide performance leaders. In industry after industry, the authors found the management of the superior firms pursuing policies very nearly the opposite of those favored in most major corporations and in the leading business schools. Whereas most firms favor centralized structures, organizational grids, and comprehensive planning strategies, the successful firms are biased toward innovation, experimentation, and action. While the majority of businesses endorse strict cost controls, the successful firms evince a loyalty to the customer that might seem almost excessive. Although most large corporations persist in believing that gains in productivity stem from equipment purchases and incentives to top managers, the superior companies have found that increased production comes from motivated, involved workers. The key, as IBM’s Thomas Watson Jr. put it, is “respect for the individual.” In Wealth and Poverty George Gilder made the case that capitalistic success hinges on giving. Here’s the proof.

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Dan Dickinson

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In Search of Excellence, by Thomas J. Peters and Robert H. Waterman Jr. (Harper & Row, 360 pp., $19.95). As American industry has struggled through a morass of productivity and quality problems in recent years, a veritable horde of experts has traveled to Germany and Japan seeking the solutions to our current industrial malaise. Could better answers have been found right here? Management authorities Peters and Waterman think so. Thus, over the past four years, they have studied superior performance in American business and industry, trying to find out why such firms as IBM, Delta, Hewlett-Packard, and McDonald’s continue to be worldwide performance leaders. In industry after industry, the authors found the management of the superior firms pursuing policies very nearly the opposite of those favored in most major corporations and in the leading business schools. Whereas most firms favor centralized structures, organizational grids, and comprehensive planning strategies, the successful firms are biased toward innovation, experimentation, and action. While the majority of businesses endorse strict cost controls, the successful firms evince a loyalty to the customer that might seem almost excessive. Although most large corporations persist in believing that gains in productivity stem from equipment purchases and incentives to top managers, the superior companies have found that increased production comes from motivated, involved workers. The key, as IBM’s Thomas Watson Jr. put it, is “respect for the individual.” In Wealth and Poverty George Gilder made the case that capitalistic success hinges on giving. Here’s the proof.