Gut Reactions: When I initially read the jacket of this book, I thought it would be more of the same old total quality management jargon. I expected to read a lot about statistical process control, just-in-time management and leadership from the bottom up. While several of these topics were mentioned in the book, they were by no means the major thrust of what the authors wanted us to learn. The focus was on leading, managing and working in an environment that focuses on the C-E-O-S of an organization. According to the text, these key constituency groups provide the structure within any successful organization. The foundation on which these organizations conduct business is one of commitment, not only to profit but also to business values like honesty, integrity, fairness, and cooperation, in other words, "managing by values." Written in a story format, the authors easily draw you into the life and problems of a CEO ((Tom Yeomans) who has finally realized that his way of managing may not be the best thing for himself, his family or his organization. Faced with this revelation, Tom makes a commitment to change his own way of managing and ultimately create a more ethical way of doing business within his organization.
Big Ideas: ·There are Three Acts of Life: Act I: Achieve (being-by-doing) Act II: Connect (being-by-being-with) Act III: Integrate (being-by-becoming) ·Fortune 500 Organizations depend on four pillars: C - Customers E - Employees O - Owners (stockholders) S - Significant others (community, creditors, suppliers,
vendors, etc.) ·Managing by Values Process Phase 1: Clarifying the mission/purpose and values - Owners - Top Management - Unit Leaders - Employees - Customers - Other Key Stakeholders Phase 2: Communicating the mission and values - Organization and Unit Events (meetings, celebrations, etc.) - Communication Materials (posters, brochures, etc.) - Formal Communications Mechanisms (newsletters, etc,) - Informal Communications Mechanisms (memos, voicemail, e- mail, etc.)
Phase 3: Aligning the daily practices with the mission and values - Individual practices (self management, problem solving, decision making and leadership practices) - Team practices (effective member practices, group dynamics and processes, stages of building high-performance teams) - Organizational practices (strategic management and development, organizational systems and processes, resource- barrier management, rewards and recognition practices) Continuous Improvement
Implications: - This story has implications beyond the corporate world. It challenges each of us to live our personal lives and conduct our business affairs within the same ethical framework. I now understand why in the past I've found myself at odds with the cultures and practices within an organization and why I ultimately chose to leave those organizations. This book could easily have been written about an elementary school, a college or university, a hospital or an insurance company. - The text also challenges us to integrate our need to achieve with our need to connect with others. It reminds us to keep the humanistic perspective in all that we do.
Questions: After reading Managing by Values, I had the following questions: - Why has it taken so long for us to recognize that ethical behavior is synonymous with customer service? - Can this type of management philosophy truly be successful in the business world? - Are there any organizations that have successfully implemented this philosophy? - Is this type of management philosophy being taught in business schools in the year 2000?