Why the Bottom Line ISN'T!: How to Build Value Through People and Organization
Author: Dave Ulrich, Norm Smallwood
List Price: $27.95
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ISBN: 047144510X
Publisher: John Wiley & Sons (11 April, 2003)
Sales Rank: 27,062
Average Customer Rating: 4.38 out of 5
Customer Reviews
Rating: 5 out of 5
Intangibles in Organizational Effectiveness
This book argues that competitively successful organizations seek to constantly build long-term value by strategically managing some of their intangibles. As we know, intangibles are not accounted for in an organization's financial statements. By exploring the world of intangibles, the authors explore a new idea or a new bottom-line, which has the building of long-term market value as its central theme. The authors have identified 7 key intangibles that have to be nurtured. They include the following: shared mindset, talent, speed, learning, accountability, collaboration, and quality of leadership. They have built their formulations on the basis of their own real experiences or a survey of the practices followed by globally successful organizations. The book is based on an Architecture which is the central model on which its contents revolve (p.13). Some of the prominent features of the book are as follows: Firstly, the book explores a new bottom line suggesting that the intangibles are as or even more important as the hard strategies, systems and processes; for it is the focus on the intangibles that helps build customer, investor, and employee confidence about the future.
Secondly, the book should be seen as outlining an agenda to focus on for HR managers; this is to charge them to increase the shareholders' value through helping develop each of the intangibles. The present crisis of HR department globally emanates from the allegation against it that it indulges in wasteful expenditure in non-measurable activities. Thus the book suggests that HR managers have to become coaches, architects, designers and facilitators of organizational capabilities.
Thirdly, the observations and formulations of the authors are based on inter-disciplinary perspectives within management segments, and are not just reflections of organization theory or effectiveness or just better HR management. They have drawn from researches from disciplines such as human resources management, financial management, IT, and leadership.
Fourthly, the book succeeds well as a solid guide that makes a complex subject simple to the reader by putting before her the essence of various functional perspectives related to management of intangibles. The discussion helps in gauging what works and what does not, and why.
Fifthly, the book contains some remarkably interesting and effective tips of leadership building at the top as well as leadership-building as a way of organizational life. The authors point out that when leaders identify and implement the seven intangibles identified in the Architecture, they "create intangible value" (p. 251).
The book is an essential reading for any executive who wants to better handle the complexities of managerial life in the era of chaotic competition. It surely helps the reader see a larger picture. Though the book has been written in extremely user-friendly way, I feel if it had a simpler title it would have carried a much higher attention value of potential lay readers. Still, there is no doubt that it will be especially liked by those managers and leaders who want to build confidence about shaping their future in the chaotic business world.
Rating: 1 out of 5
Clever title or false premise?
This book appears to be based on two false premises. One, the bottom line is the bottom line, if organisations manage to get more value out of their people the bottom line changes. Two, there's no such thing as an intangible - market value of a business is tangible value. The big omission is any definition of value even though the authors constantly refer to this concept.An ideal read for HR people who want to talk a good job but of little use for those who genuinely want to find practical ways to add value through people.
Rating: 5 out of 5
Ulrich & Smallwood - have done it again !
Dave Ulrich and Norm Smallwood have done it again- created a wonderful book which is an invaluable toolkit for aspiring and practising managers."Why the Bottom Line Isn't" is a highly relevant and accessible resource for busy executives, which can also save your organisation substantial dollars in consulting fees.This book is also recommended reading for non- executive Board directors and investors.
As the authors outline in their introduction, "Why the Bottom Line Isn't", began when they asked a simple question- How can two companies in the same industry, with similiar earnings, have vastly different market values. In addressing this question, Ulrich and Smallwood explore the world of intangibles and a new bottom-line, that has building long -term market value as the central theme.
Based upon their extensive consulting experience and drawing from diverse disciplines, such as finance/accounting and organisation behaviour,the authors focus on how to identify and build intangibles within one's organisation.An Architecture for Intangibles is created and this four layer model provides the framework and structure for " Why the Bottom Line Isn't". As the framework is developed,the reader is taken on a journey that focuses on the leadership implications- and resulting actions- for each layer( and their various components) of the architecture for intangibles. Ulrich,Smallwood and Zenger's excellent work from Results Based Leadership(Harvard Press 1999)on "leadership brand" is also integrated.
This outstanding book is really a treasure chest resource - it is full of useful hints,quizzes,question and process lists, tips and exercises. It also contains questionnaires and is supported by extensive reference notes and web links, for those requiring further information and support.
The practical emphasis is demonstrated via the utilisation of many company examples and stories that support the many insights which are presented. The communication style which the authors employ is also very appealing and engages the reader.Close attention to education objectives are also very evident, with the authors utilising fresh techniques in tackling complex issues within organisations. For example,to surface sacred cows which exist in most organisations,they recommend treating them as you would a computer virus, because they have the same deadly impact on your operations, as computer viruses have upon IT systems.As a result,a virus detector list of 27 items is produced
In summary, this book is essential reading for any executive who is wanting to better handle the complexities of life in 21st century organisations. Similar Products
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Book Index