Monday, January 29, 2007

Great to Not-Even-Good!

Or, "Top 10 delusions of authors who dish out management fiction wisdom".

Check this out:

Of 35 "Excellent" companies studied in In Search of Excellence, 30 declined in profitability over the 5 years after the authors' study ended in 1979, Rosenzweig found. Similarly, of 17 of the 18 "Visionary" companies studied in Built to Last, only 8 outperformed the S&P 500 market average for the 5 years after the authors' study ended in 1990.

Here are the opening paragraphs:

What leads to high business performance? Consultants and journalists have advanced many answers to this question, both in print and from the lectern. But most of those answers are little more than educated guesses. In fact, most of them are probably bunk.

That, in a nutshell, is the message of a provocative new book, The Halo Effect (Free Press, February 2007). Written by Phil Rosenzweig, the book debunks that staple of the best-seller list, the corporate success story. According to Rosenzweig, popular and even academic studies of successful companies are commonly shaped by one or more of nine "delusions," which trump the basics of research and logic