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Posted on Oct 29, 2009

Book Review: The Future of Management

I recently finished reading Gary Hamel's book The Future of Management. He suggests that we have pretty much perfected the management model that Henry Ford and others founded – a top-down management structure. Hamel questions whether that management model is the best model for us now. It served its purpose for a while, but its weakness is that it usually doesn't unleash passion, ownership and creativity from the workforce. It also assumes that the collective wisdom of a few "really smart people" is greater than the collective wisdom of ten, a hundred or ten thousand “normal people.” Hamel shows that this thinking is flawed, by citing research and case studies. He holds up Gore (makers of Gore-Tex), Whole Foods, Google, GM, Toyota, and others as management innovators who have bucked the traditional model - and have done exceedingly well. These companies have flattened the leadership structure. Anyone in their company could have the next big idea. You don’t have to have a big title to be heard. Teams hold each other accountable from within (and no team can afford a weak link). Fringe thought is encouraged. And employees are rewarded for breakthrough performances and contributions to the organization.

While Ford said, “The problem is that every set of hands comes with a brain,” Toyota received 500,000 ideas from their employees last year. Ford has floundered for years. Toyota has remained on top. Hamel tells the stories of several innovative companies, and I thought this was the strongest part of the whole book. Those chapters are full of thought-provoking questions that I’ll ask our team, and practical advice that helps me understand how it all plays out.

If you look around, you’ll notice that in spite of this model’s success, most companies have not adapted new management models. This isn’t surprising. Those with positions of authority risk losing their place of prominence with this model, it feels risky and it costs some resources upfront. Fortunately, Hamel offers some advice on how to impact your organization (whether you are currently on the top or bottom of the food chain). If you think that those only wanting to survive will ultimately not survive, or that the management model of your organization might be based on false assumptions, or that the people in your organization need to be released to contribute more than they ever thought possible, this book is for you. I highly recommend it.

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© 2009 brian

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