Why do so many global strategies fail—despite companies’ powerful brands and other border-crossing advantages?
Seduced by market size, the illusion of a borderless, “flat” world, and the allure of similarities, firms launch one-size-fits-all strategies.
But cross-border differences are larger than we often assume, explains Pankaj Ghemawat in his new book: Redefining Global Strategy. Most economic activity—including direct investment, tourism, and communication—happens locally, not internationally.
Here’s Ghemawat’s take on globaloney >>
Here’s his globaloney quiz:
Do you basically agree or disagree with the following statements:
1. Competing the same way everywhere is the purest form of global strategy (Uniformity)
2. The truly global company has no home base (Statelessness)
3. Globalization tends to make industries become more concentrated (Consolidation)
4. Globalization offers virtually limitless growth opportunities (Endless Growth)
5. Global expansion is an imperative rather than an option to be evaluated (Act of Faith)
Give yourself—or your colleagues—1 point for each yes answer, and add them up to get to the total score. Zero implies an absence of globaloney. A score of 1 or 2, while indicating some globaloney, is still better than average. A score of 3 puts you at the average for several hundred managers who responded to an online survey—see below—but note that the average is pretty unhealthy given the number of problems it can lead to (think Coke). And a score of 4 or 5 rises beyond globaloney to the level of globalmania.
One wonders whether Tom Friedman will read this book…
Marshall Goldsmith’s New Book Rises to #1
Every now and then you see someone who does well in the public eye and actually deserves it. I can’t think of a better example than Marshall Goldsmith and his latest book: What Got You Here Won’t Get You There: How Successful People Become Even More Successful.
The book is now the #1 best selling business book in the United States, as ranked by both the Wall Street Journal and USA Today. It also reached that coveted #1 spot in Amazon.com.
Way to go Marshall! For those of you who missed my quick take why you should read this book, go here>>
I’ll be doing a book review shortly.
Leadership Secrets Revealed: A Tip for Nancy Pelosi
There isn’t much in the world that hasn’t happened before (except for man-made global warming) that we can’t learn about by reading our history.
Nancy Pelosi recent misstep is not the end of the world. She was being true to her heart, which is not a bad thing in itself.
But there is a lesson to be learned for all leaders from Pelosi: when you get to a higher position, you must grow with it.
And that’s the lesson from Marshall Goldsmith’s new book: What Got You Here Won’t Get You There: How Successful People Become Even More Successful.
Executives who hire Goldsmith for one-on-one coaching pay $250,000 for the privilege. With this book, his help is available for 1/10,000th of the price.
Anyone who thinks they’re a leader should read it carefully.
P.G. Wodehouse & India
In a country where most books in English sell fewer than 1,000 copies and 5,000 constitutes a bestseller, Penguin sells up to 70,000 Wodehouses a year: part of a thriving “retro-market” that ranges from Agatha Christie to Modesty Blaise.
Why? Read the article: “Why India fell for the code of Wodehouse“
Let me give you a list of what we read (for fun) when we were kids at St. Columba’s (from first grade to 10th). It sure was British, beta!
– Enid Blyton’s Five Find Outers, Famous Five, Secret Seven, Malory Towers, Saint Clare’s
– Captain W.E. Johns’ Biggles
– Richmal Crompton’s William
– Frank Richards’ Billy Bunter
– Agatha Christie
– and of course, P.G. Wodehouse
We also read Tin Tin and Asterix, the usual Hardy Boys and Nancy Drew junk, and the Bobsey Twins. Add to that a weekly Commando comic, the occasional Beano, and see what a mixed-up world we grew up in!
It’s a straight line from Noddy to P.G. Wodehouse.
One more thing – we did NOT read Shakespeare, unless we had to.
Execution: Laurence Haughton on the Art of Follow-Through
Laurence Haughton speaks softly, but his message comes through loud and clear:
Fact 1: 1/2 of all a company’s strategies and initiatives will fail to make it from the drawing board to the front lines
Fact 2: Because 2/3 of all managers follow through using tactics prone to fail
Fact 3: And only 1 out of 10 companies have the tools to address this critical breakdown
A management consultant, lecturer, and business writer, Haughton’s latest book, It’s Not What You Say… It’s What You Do – How Following Through at Every Level Can Make or Break Your Company was published by Doubleday in 2005.
In 2001 Haughton co-authored It’s Not the Big that Eat the Small… It’s the FAST that Eat the Slow– a Wall Street Journal, USA Today, and New York Times bestseller that was translated for sale in 26 countries around the world.

Here’s the interview I’ve been promising to post on the site.
What made you write this book?
I wanted to know why half of all initiatives fail, and what leaders at every level can do about it. Of course, I had preconceived notions of what I thought the problems were, but was surprised to find that almost all of them were dead wrong…
Can you give us an example of that?
The biggest preconceived notion I had was that there wasn’t enough accountability in the world, and that why things didn’t get done. I used to think that people didn’t take completing their work seriously or their bosses didn’t make the consequences serious enough.
I have a very high degree of what psychologists would call conscientiousness, which can make me a real pain to be around. So that’s why I thought I got things done, and others didn’t.
So you’re the worrywart for everyone…
Also a nag. I used to look to blame people. I’ve visited companies that work that way, and I’m now convinced that’s dead wrong.
So the concept that all the world needs is accountability and more dire consequences, or the opposite view- a motivationalist view that all you need is more attaboys! Whichever side you want to be on, they’re both wrong.
The key is that you have to find the line between enough and too much accountability. The line is not that hard to find. I lay out a prescription in the book. But it depends on the type of project you’re working on. For example, is it more important that everyone communicates, coordinates and cooperates or is it more important that you know to last scintilla who it is that specifically dropped the ball that caused an interruption. Pinpoint accountability is totally unproductive in certain industries- the airline industry, for example. Research shows us that managers who take accountability too far, especially in businesses where follow through requires rapid responses to unpredictable changes, chip away at each individual’s willingness to look past personal interests and work with others to make sure what’s expected gets done.
In the book you’re saying that execution is critical. And yet you take Larry Bossidy to task.
It was Linda Lockwood at Charles Schwab who lifted the veil from my eyes about the Larry Bossidy’s memo in his book. She’s the one who said it was the “same old corporate gobbledygook.” Bossidy’s memo did not set clear expectations. And Linda wondered aloud: “How could managers tell when they had achieved Bossidy’s objectives?”
I can tell you that woke me up.
Then I started exploring the difficulty that people have when directions aren’t clear.
My book describes 4 building blocks that were developed after research showed us that 66% of managers use tactics that are prone to fail. And the tactics fall under the 4 building blocks I describe in my book. I use the 4 building blocks to make it plain, to explain step-by-step what to watch out for.
It’s so important that you have measurable objectives but even more important, you’ve got to have clarity. It was Einstein who said that if a scientific theory can’t be explained to a child it’s probably worthless.
Think of the stuff that you read – the obtuse language, the jargon – in the marketing world and HR world for example.
The team leader’s job is to make people understand, not confuse them. Not everyone has to be as smart as the leader as Linda pointed out, but everyone has to understand where we’re going as a team.
So let’s talk about the 4 building blocks…
The four building blocks are:
1. Having a clear direction so everyone knows exactly where they’re headed
2. Matching the right people to each goal
3. Getting the right level of buy-in (you have to outmaneuver the CAVE people)
4. Unlocking the individual initiative in every member of the team
Simple enough. But it’s far more complicated than you’d expect.
The first building block is clear direction that says that if you talk to people, more that half the time people can’t see a connection between what they’re doing and what the corporate objectives are. Why cant; they. It starts with the fact that as leaders, as managers we’re not clear. Sometimes we’re trained to say things in a vague and general way instead of doing what Douglas Smith says- make success measurable. Be specific, have some idea about how you measure the results you want and how the accountability gets divided in the team. To begin, just ask yourself- “is what I told them to do measurable, is it specific enough?”
In the book I describe the executive who is told by a 16 year old kid that “sometimes it seems like you’re writing to impress yourself.”
It’s our job to make sure that what we say makes sense and is understood at every level of the company- by both platinum level players and nickel level players, and everyone in between.
We all need to recognize that we have empathy inside us, and that we can up our ability to empathize. In the book I talk about reading between the lines. Take the world of the high-end restaurant business. A very competitive business, low barriers to entry… so how do you compete? How do you compete with people who are paid $12-15 dollars an hour?
In the book we tell readers about Richard Coraine of the Union Square Hospitality Group in Manhattan. They have created a process of “enlightened hospitality” which I describe as a real-time sixth-sense of their customer’s expectations, followed by an effort to exceed those expectations. Coraine tells us the story of how a reservations person noticed the guest whose valise had a broken grip (he held it under his arm so his client wouldn’t notice). While the guest entertained his client over lunch (at a quiet table selected by the host), the valise is sent around the block and the strap is reattached. When the guest comes to check out, the host hands him the bag by the grip to show him its fixed, without a word being exchanged. That’s “enlightened hospitality.”
The key is to “put yourself in someone’s shoes.” That’s what Coraine has created, a recipe for that includes smarts, heart, and courage. There’s another story he tells us in the book as well, but you’ll have to read it.
You mean the one about “chicken soup and crackers” after midnight?
(Laughs) Yes.
You mention how critical it is to make accurate assessments. How does that work?
Here’s something else that keeps coming up: “We tried that and it didn’t work, so we tried something else.”
How many times do executives try a change program and when it doesn’t work, they simply come up with another change initiative. This is a huge problem.
But some companies have the courage to stay the course. Take the case of SSM Health Care, another company I outline in the book. After 5 years of spending money and seminars and intense work on total quality management, a senior executive gets asked “Are we still doing CQI?” CQI was the continuous-quality-improvement initiative they had introduced five years earlier.
To their credit, they realized they had been “mucking around.” So they dug in. Something was missing. And it came out that the problem was that they were not making accurate assessments. They were trying to solve problems before they did a decent stab at the root-cause.
Ask “why” 5 times. The tendency is to try to fix something as soon as you see something wrong. Problem is people try to fix problems quickly, but they don’t fix the root cause. Why? Because they didn’t ask why enough.
The Five Whys is not new. It comes to us from Taiichi Ohno, the creator of the Toyota Production System. He believed that if managers wanted to start with a clear and accurate assessment of any problem, they had to ask why five times before trying to create a solution.
I also mention the case of Bill Zollars at Yellow Transportation– he wanted the company to start exceeding customer expectations by making sure their clients were very satisfied, not just satisfied, mind you, but very satisfied. He found out that the assessment his VP of Marketing had made of customer satisfaction was way, way off. And he found this out because he delved deeper. He checked the accuracy of their assessments.
Let’s talk about choosing the right people – the second building block…
Sure – I come from a background where you hire for experience. While researching this book, I found out that sometimes it’s more important to hire attitude over experience.
There’s another myth out there that says that anyone can accomplish anything if they just put their mind to it. There’s so much junk science out there that I had to really to clear the weeds, to find out what really works.
For example, research tells us those managers who make sure there’s the right fit between people and their goals before they take action double the likelihood of success.
There are people who are perfectly suited for the New York Yankees style of management. Others aren’t.
Sometimes the HR bureaucracy doesn’t give you the time. I talked to a manager who said they had 45 minutes to interview each candidate, which was simply not enough to get to know someone before hiring them.
HR sometimes is its own worst enemy.
Now at IKEA we have something different. Why? Because Pernille Spiers-Lopez, the president of IKEA North America. spent four years as manager of human resources for IKEA North America before being named president. She doesn’t have to put up with the nonsense. They’ve totally reinvented the HR function and it’s a beautiful thing to see. I did not talk about this in the book, but the IKEA hiring process gives them a competitive advantage.
[Note: Working Mother magazine named IKEA North America one of the 100 best companies for working mothers and singled out Spiers-Lopez for its Family Champion Award. The company provides benefits not widely offered retail workers in the U.S: full medical and dental insurance for those who work as little as 20 hours a week, including coverage for domestic partners and children; paid maternity leave; tuition assistance; a 401(k) matching plan and flexible work schedules. Spiers-Lopez was named president in 2001, when sales staff turnover was 76%. The next year these and other policies helped the company slash turnover to 56%.]
HR people are dying to get a seat at the strategy table. They have to be invited to the table because they bring something to the table. Traditional HR does not.
The key again is to connect personal goals to the goals of the organization. And sometimes that doesn’t just happen. As a leader, you have to make it happen. And if HR is going to be relevant, its got to become better at identifying and discovering talent.
And you’re only going to make that happen if you can outmaneuver the CAVE people.
Who are these CAVE people?
Anand Sharma at TBM Consulting Group gave me that acronym.
CAVE stands for Citizens Against Virtually Everything.
Just as our bodies have an immune system that assaults everything new and unfamiliar, organizations have their own auto-immune response that impulsively and instinctively attacks everything new or different- the CAVE people. They work overtly and covertly to undermine the change initiative your company is depending on. In the book I outline the strategy for outmaneuvering them, to give your change initiative a fighting chance of success.
Can you give us a hint how? How do you outmaneuver the CAVE people?
Anand Sharma was very kind to share these insights with our readers. I go into the details in the book, but essentially:
1. Kick off your change initiative with a “wow” event.
2. Blitzkrieg them (follow through so fast the CAVE people don’t have time to organize resistance)
3. Create disciples from the rank and file
4. Take your success story straight to the top
The bottom line is to execute, you simply have to get past the CAVE people.
Why are some people so motivated? And others so unmotivated? And why do incentive plans not work? That’s something I examine in the book as well.
This is all great, actionable knowledge for executives who want to get things done. We should let people buy the book to get the full story. Thanks for all your time.
Thank you.

A must read for everyone from the CEO on down…
Book Value Deal: Jimmy Carter + Doug Smith
If you’re interested in values and business sustainability, you should check out this double book deal on Amazon.com. For the rest of this month, you can buy On Value and Values by Doug Smith together with Our Endangered Values by Jimmy Carter and save $20.76…
See the details on Doug Smith’s site >>
Abramoff, Business Ethics, and Peter Drucker on Decision-Making
Find me an honest politician, and I will spare this world. We looked everywhere, but could not find an honest politician.
I’m kidding here, but just barely.
“Abramoff is the central figure in what could become the biggest congressional corruption scandal in generations,” writes the Washington Post.
And today there’s another story: apparently “the U.S. Family Network, a public advocacy group that operated in the 1990s with close ties to Rep. Tom DeLay and claimed to be a nationwide grass-roots organization, was funded almost entirely by corporations linked to embattled lobbyist Jack Abramoff, according to tax records and former associates of the group.”
And:
“Two former associates of Edwin A. Buckham, the congressman’s former chief of staff and the organizer of the U.S. Family Network, said Buckham told them the funds came from Russian oil and gas executives. Abramoff had been working closely with two such Russian energy executives on their Washington agenda, and the lobbyist and Buckham had helped organize a 1997 Moscow visit by DeLay (R-Tex.).”
“The former president of the U.S. Family Network said Buckham told him that Russians contributed $1 million to the group in 1998 specifically to influence DeLay’s vote on legislation the International Monetary Fund needed to finance a bailout of the collapsing Russian economy.”
Everyone knows how corrupt politicians are. These days, it seems worse than ever.
But now we are looking at the Enronization of Business, all business.
If competitive advantage is gained through “bribes,” then why should business ever play straight?
Is corruption the core-competence of successful businesses? What happened to the rule of law?
From Exxon to Wal-mart, businesses have lost their way. In their hurry to boost shareholder value, they are destroying their brands and their future.
They are playing in Box 1 and ignoring Box 3.
So why is this happening? Why are so many smart businesses (and politicians) being so dumb?
The answer comes to us from the late Peter Drucker:
Drucker tells us this story about Alfred P. Sloan Jr. who is reported to have said at a meeting of one of the GM top committees, “Gentlemen, I take it we are all in complete agreement on the decision here.” When everyone around the table nodded in assent, Sloan says: “Then I propose we postpone further discussion of this matter until our next meeting to give ourselves time to develop disagreement and perhaps gain some understanding of what the decision is all about.”
Drucker’s point is that “unless one has considered alternatives, one has a closed mind.” Decision-making for Drucker is best only if based on the clash of conflicting views, the dialogue between different points of view, and the choice between different judgements.”
The first rule of decision-making is that one does not make a decision unless there is disagreement.
Alas, few business leaders or politicians tolerate dissent in their ranks. In fact, they work hard to eliminate nay-sayers.
And that is the root cause of all this corruption. Not money, but bad choices, bad decisions. OK- perhaps it is money after all.
How to Create Dysfunctional Teams
From The Five Dysfunctions of a Team:
Dysfunction #1: Absence of Trust
Strategy for Overcoming:
• Identify and discuss individual strengths and weaknesses
• Spend considerable time in face-to-face meetings and working sessions
Dysfunction #2: Fear of Conflict
Strategy for Overcoming:
• Acknowledge that conflict is required for productive meetings
• Understand individual team member’s natural conflict styles, and
establish common ground rules for engaging in conflict
Dysfunction #3: Lack of Commitment
Strategy for Overcoming:
• Review commitments at the end of each meeting to ensure all team
members are aligned
• Adopt a “disagree and commit” mentality—make sure all team
members are committed regardless of initial disagreements
Dysfunction #4: Avoidance of Accountability
Strategy for Overcoming:
• Explicitly communicate goals and standards of behavior
• Regularly discuss performance versus goals and standards
Dysfunction #5: Inattention to Results
Strategy for Overcoming:
• Keep the team focused on tangible group goals
• Reward individuals based on team goals and collective success
Makes sense, right? It’s not quite so simple.
A manager in a large Fortune 500 company once gave everyone on the team (yours truly included) a copy of “Who Moved My Gouda?” as a substitute for addressing the real issues affecting performance. Was I inspired or what?
Message to management: do not go out and buy copies of a book for your team and expect to solve anything.
I think the real key to teams working well is a sense of shared purpose. Of course, results matter… which is why we all need to study the secrets of successful strategy execution >>
The Amazon.com Work Process in Pictures

From BusinessWeek: See how the world’s largest online retailer ensures that gifts get delivered on one of the busiest shopping — and shipping — days of the year.
Here >>
Doug Smith on Values – Then and Now
Doug Smith, the author of On Value and Values posted this alarming news on his blog today:
“…two professors at UMass told their local newspaper about a student of theirs who “was visited by federal agents two months ago, after he requested a copy of Mao Tse-Tung’s tome on Communism called “The Little Red Book… The student, who was completing a research paper on … fascism and totalitarianism, filled out a form for the request, leaving his name, address, phone number and Social Security number. He was later visited at his parents’ home in New Bedford by two agents of the Department of Homeland Security.”
Smith contrasts the attitudes of Thomas Jefferson and Ben Franklin with our very own King George. A great post. Read it here >>
The Legislators of Mankind?
2005 Harold Pinter
2004 Elfriede Jelinek
2003 J.M. Coetzee
2002 Imre Kertész
2001 V.S. Naipaul
2000 Gao Xingjian
1999 Günter Grass
1998 José Saramago
1997 Dario Fo
1996 Wislawa Szymborska
1995 Seamus Heaney
1994 Kenzaburo Oe
1993 Toni Morrison
1992 Derek Walcott
1991 Nadine Gordimer
1990 Octavio Paz
1989 Camilo José Cela
1988 Naguib Mahfouz
1987 Joseph Brodsky
1986 Wole Soyinka
1985 Claude Simon
1984 Jaroslav Seifert
1983 William Golding
1982 Gabriel García Márquez
1981 Elias Canetti
1980 Czeslaw Milosz
1979 Odysseus Elytis
1978 Isaac Bashevis Singer
1977 Vicente Aleixandre
1976 Saul Bellow
1975 Eugenio Montale
1974 Eyvind Johnson, Harry Martinson
1973 Patrick White
1972 Heinrich Böll
1971 Pablo Neruda
1970 Alexandr Solzhenitsyn
1969 Samuel Beckett
1968 Yasunari Kawabata
1967 Miguel Angel Asturias
1966 Samuel Agnon, Nelly Sachs
1965 Mikhail Sholokhov
1964 Jean-Paul Sartre
1963 Giorgos Seferis
1962 John Steinbeck
1961 Ivo Andric
1960 Saint-John Perse
1959 Salvatore Quasimodo
1958 Boris Pasternak
1957 Albert Camus
1956 Juan Ramón Jiménez
1955 Halldór Laxness
1954 Ernest Hemingway
1953 Winston Churchill
1952 François Mauriac
1951 Pär Lagerkvist
1950 Bertrand Russell
1949 William Faulkner
1948 T.S. Eliot
1947 André Gide
1946 Hermann Hesse
1945 Gabriela Mistral
1944 Johannes V. Jensen
1943 The prize money was with 1/3 allocated to the Main Fund and with 2/3 to the Special Fund of this prize section
1942 The prize money was with 1/3 allocated to the Main Fund and with 2/3 to the Special Fund of this prize section
1941 The prize money was with 1/3 allocated to the Main Fund and with 2/3 to the Special Fund of this prize section
1940 The prize money was with 1/3 allocated to the Main Fund and with 2/3 to the Special Fund of this prize section
1939 Frans Eemil Sillanpää
1938 Pearl Buck
1937 Roger Martin du Gard
1936 Eugene O’Neill
1935 The prize money was with 1/3 allocated to the Main Fund and with 2/3 to the Special Fund of this prize section
1934 Luigi Pirandello
1933 Ivan Bunin
1932 John Galsworthy
1931 Erik Axel Karlfeldt
1930 Sinclair Lewis
1929 Thomas Mann
1928 Sigrid Undset
1927 Henri Bergson
1926 Grazia Deledda
1925 George Bernard Shaw
1924 Wladyslaw Reymont
1923 William Butler Yeats
1922 Jacinto Benavente
1921 Anatole France
1920 Knut Hamsun
1919 Carl Spitteler
1918 The prize money was allocated to the Special Fund of this prize section
1917 Karl Gjellerup, Henrik Pontoppidan
1916 Verner von Heidenstam
1915 Romain Rolland
1914 The prize money was allocated to the Special Fund of this prize section
1913 Rabindranath Tagore
1912 Gerhart Hauptmann
1911 Maurice Maeterlinck
1910 Paul Heyse
1909 Selma Lagerlöf
1908 Rudolf Eucken
1907 Rudyard Kipling
1906 Giosuè Carducci
1905 Henryk Sienkiewicz
1904 Frédéric Mistral, José Echegaray
1903 Bjørnstjerne Bjørnson
1902 Theodor Mommsen
1901 Sully Prudhomme
Harold Pinter’s Nobel Lecture: The Pen Against the Sword
From Harold Pinter – Nobel Lecture
Art, Truth & Politics
© THE NOBEL FOUNDATION 2005
In 1958 I wrote the following:
‘There are no hard distinctions between what is real and what is unreal, nor between what is true and what is false. A thing is not necessarily either true or false; it can be both true and false.’
I believe that these assertions still make sense and do still apply to the exploration of reality through art. So as a writer I stand by them but as a citizen I cannot. As a citizen I must ask: What is true? What is false?
Truth in drama is forever elusive. You never quite find it but the search for it is compulsive. The search is clearly what drives the endeavour. The search is your task. More often than not you stumble upon the truth in the dark, colliding with it or just glimpsing an image or a shape which seems to correspond to the truth, often without realising that you have done so. But the real truth is that there never is any such thing as one truth to be found in dramatic art. There are many. These truths challenge each other, recoil from each other, reflect each other, ignore each other, tease each other, are blind to each other. Sometimes you feel you have the truth of a moment in your hand, then it slips through your fingers and is lost.
I have often been asked how my plays come about. I cannot say. Nor can I ever sum up my plays, except to say that this is what happened. That is what they said. That is what they did.
…….
I have said earlier that the United States is now totally frank about putting its cards on the table. That is the case. Its official declared policy is now defined as ‘full spectrum dominance’. That is not my term, it is theirs. ‘Full spectrum dominance’ means control of land, sea, air and space and all attendant resources.
The United States now occupies 702 military installations throughout the world in 132 countries, with the honourable exception of Sweden, of course. We don’t quite know how they got there but they are there all right.
The United States possesses 8,000 active and operational nuclear warheads. Two thousand are on hair trigger alert, ready to be launched with 15 minutes warning. It is developing new systems of nuclear force, known as bunker busters. The British, ever cooperative, are intending to replace their own nuclear missile, Trident. Who, I wonder, are they aiming at? Osama bin Laden? You? Me? Joe Dokes? China? Paris? Who knows? What we do know is that this infantile insanity – the possession and threatened use of nuclear weapons – is at the heart of present American political philosophy. We must remind ourselves that the United States is on a permanent military footing and shows no sign of relaxing it.
Many thousands, if not millions, of people in the United States itself are demonstrably sickened, shamed and angered by their government’s actions, but as things stand they are not a coherent political force – yet. But the anxiety, uncertainty and fear which we can see growing daily in the United States is unlikely to diminish.
I know that President Bush has many extremely competent speech writers but I would like to volunteer for the job myself. I propose the following short address which he can make on television to the nation. I see him grave, hair carefully combed, serious, winning, sincere, often beguiling, sometimes employing a wry smile, curiously attractive, a man’s man.
‘God is good. God is great. God is good. My God is good. Bin Laden’s God is bad. His is a bad God. Saddam’s God was bad, except he didn’t have one. He was a barbarian. We are not barbarians. We don’t chop people’s heads off. We believe in freedom. So does God. I am not a barbarian. I am the democratically elected leader of a freedom-loving democracy. We are a compassionate society. We give compassionate electrocution and compassionate lethal injection. We are a great nation. I am not a dictator. He is. I am not a barbarian. He is. And he is. They all are. I possess moral authority. You see this fist? This is my moral authority. And don’t you forget it.’
A writer’s life is a highly vulnerable, almost naked activity. We don’t have to weep about that. The writer makes his choice and is stuck with it. But it is true to say that you are open to all the winds, some of them icy indeed. You are out on your own, out on a limb. You find no shelter, no protection – unless you lie – in which case of course you have constructed your own protection and, it could be argued, become a politician.
I have referred to death quite a few times this evening. I shall now quote a poem of my own called ‘Death’.
Where was the dead body found?
Who found the dead body?
Was the dead body dead when found?
How was the dead body found?
Who was the dead body?
Who was the father or daughter or brother
Or uncle or sister or mother or son
Of the dead and abandoned body?
Was the body dead when abandoned?
Was the body abandoned?
By whom had it been abandoned?
Was the dead body naked or dressed for a journey?
What made you declare the dead body dead?
Did you declare the dead body dead?
How well did you know the dead body?
How did you know the dead body was dead?
Did you wash the dead body
Did you close both its eyes
Did you bury the body
Did you leave it abandoned
Did you kiss the dead body
When we look into a mirror we think the image that confronts us is accurate. But move a millimetre and the image changes. We are actually looking at a never-ending range of reflections. But sometimes a writer has to smash the mirror – for it is on the other side of that mirror that the truth stares at us.
I believe that despite the enormous odds which exist, unflinching, unswerving, fierce intellectual determination, as citizens, to define the real truth of our lives and our societies is a crucial obligation which devolves upon us all. It is in fact mandatory.
If such a determination is not embodied in our political vision we have no hope of restoring what is so nearly lost to us – the dignity of man.
…
Read the whole thing and weep.
…
McKinsey’s Peter Drucker Collection
The great and growing collection of outside work that Drucker’s thinking has generated testifies to the seminal place of his ideas on the role of knowledge in companies. These articles from the McKinsey Quarterly archive look at how companies might maximize the benefits from their in-house knowledge.
– Best practice and beyond: Knowledge strategies (premium)
– Managing the knowledge manager
– Do you know who your experts are?
– Making a market in knowledge
– The 21st-century organization (premium)
I particularly liked this diagram in “Managing the knowledge manager”:

Check out the collection here >>
Did I mention I hate McKinsey’s “premium” content policy? Those McK-partners are just penny-pinching millionaires. The Mercer people get it: their content is open. Open-up, McKinsey!
Laurence Haughton on Peter Drucker
I received an email from Laurence
Haughton, the author, on Peter Drucker.
With his permission, here it is:
It is now five days since Peter Drucker passed away and the tributes have
filled the air like so many streamers and confetti at a ticker tape parade.According to columnists in journals and blogs Drucker was, “an American
sage,” “the uber-guru,” “profound,” and “a visionary.”America’s two most popular business pundits agree. “[Drucker was]
the right man for our times,” wrote one. And the other was just as reverential,
“The most influential management thinker in the second half of the twentieth
century.”But I don’t see it that way.
If Drucker was “the most influential” shouldn’t he have changed
a lot of executive behavior? If he truly was “profound” or the “right
man for our times” wouldn’t he have a lot of followers who practice
what he prescribed?Peter Drucker is, as he himself once wrote about management sciences pioneer
Mary Parker Follett, the “most quoted and least heeded” teacher
of management.Why he is so quoted is easy to understand. Pick up anything he wrote. I just
went back and skimmed through 1964’s “Managing for Results.”
You’ll find Drucker is incredibly insightful yet totally clear and practical.
He’s no ivory tower theorist. Drucker explains exactly what to do and
what not to do, giving systematic, logical, and consistent answers to all
the fundamental challenges of management. If you are opining about management,
he’s a perfect source to quote.But as far as being heeded… I don’t think so. What company is managed
according to his prescriptions? What leader follows his clear, specific advice?
Frankly, is there anyone who gives him anything more than lip service?
Take just one of Drucker’s lessons. He criticized organizations who issued
directives to “cut 5 or 10 percent from budgets across the board.”
He said, “This is ineffectual at best and at worst, apt to cripple the
important, result-producing efforts that usually get less money that they
need to begin with.” Yet, when have you seen a company cut costs using
Drucker’s clear distinctions between efficiency and effectiveness instead
of the across-the-board cop out?And I’ll bet others can find 100 additional quoted and ignored lessons
from Peter Drucker just like that one.
Years ago I was told “performance is the proof that the learning took
place.” If that’s true I’m sorry to say that despite all the
tributes, up to now, we’ve learned very little from Peter Drucker.
Fizzle: The Medici Effect Blog
Here’s a dead blog from a very popular writer. Why did he even start one?
Cartoon: “Peter Drucker Waits in Line…”
Managing Ignorance: The Passing of Peter Drucker

Farewell Peter Drucker.
The biggest business thinker of them all is gone. Perhaps business will start listening to him now. A sad day.
from the NY Times:
Peter F. Drucker, the political economist and author, whose view that big business and nonprofit enterprises were the defining innovation of the 20th century led him to pioneering social and management theories, died yesterday at his home in Claremont, Calif. He was 95.
His death was announced by Claremont Graduate University.
Mr. Drucker thought of himself, first and foremost, as a writer and teacher, though he eventually settled on the term “social ecologist.” He became internationally renowned for urging corporate leaders to agree with subordinates on objectives and goals and then get out of the way of decisions about how to achieve them.
He challenged both business and labor leaders to search for ways to give workers more control over their work environment. He also argued that governments should turn many functions over to private enterprise and urged organizing in teams to exploit the rise of a technology-astute class of “knowledge workers.”
Mr. Drucker staunchly defended the need for businesses to be profitable but he preached that employees were a resource, not a cost. His constant focus on the human impact of management decisions did not always appeal to executives, but they could not help noticing how it helped him foresee many major trends in business and politics.
He began talking about such practices in the 1940’s and 50’s, decades before they became so widespread that they were taken for common sense. Mr. Drucker also foresaw that the 1970’s would be a decade of inflation, that Japanese manufacturers would become major competitors for the United States and that union power would decline.
For all his insights, he clearly owed much of his impact to his extraordinary energy and skills as a communicator. But while Mr. Drucker loved dazzling audiences with his wit and wisdom, his goal was not to be known as an oracle. Indeed, after writing a rosy-eyed article shortly before the stock market crash of 1929 in which he outlined why stocks prices would rise, he pledged to himself to stay away from gratuitous predictions. Instead, his views about where the world was headed generally arose out of advocacy for what he saw as moral action.
His first book (“The End of Economic Man,” 1939)was intended to strengthen the will of the free world to fight fascism. His later economic and social predictions were intended to encourage businesses and social groups to organize in ways that he felt would promote human dignity and vaccinate society against political and economic chaos.
“He is remarkable for his social imagination, not his futurism,” said Jack Beatty in a 1998 review of Mr. Drucker’s work “The World According to Peter Drucker.”
Mr. Drucker, who was born in Vienna and never completely shed his Austrian accent, worked in Germany as a reporter until Hitler rose to power and then in a London investment firm before emigrating to the United States in 1937. He became an American citizen in 1943.
Recalling the disasters that overran the Europe of his youth and watching the American response left him convinced that good managers were the true heroes of the century.
The world, especially the developed world, had recovered from repeated catastrophe because “ordinary people, people running the everyday concerns of business and institutions, took responsibility and kept on building for tomorrow while around them the world came crashing down,” he wrote in 1986 in “The Frontiers of Management.”
Mr. Drucker never hesitated to make suggestions he knew would be viewed as radical. He advocated legalization of drugs and stimulating innovation by permitting new ventures to charge the government for the cost of regulations and paperwork. He was not surprised that General Motors for years ignored nearly every recommendation in “The Concept of the Corporation,” the book he published in 1946 after an 18-month study of G.M. that its own executives had commissioned.
From his early 20’s to his death, Mr. Drucker held various teaching posts, including a 20-year stint at the Stern School of Management at New York University and, since 1971, a chair at the Claremont Graduate School of Management. He also consulted widely, devoting several days a month to such work into his 90’s. His clients included G.M., General Electric and Sears, Roebuck but also the Archdiocese of New York and several Protestant churches; government agencies in the United States, Canada and Japan; universities; and entrepreneurs.
For over 50 years, at least half of the consulting work was done free for nonprofits and small businesses. As his career progressed and it became clearer that competitive pressures were keeping businesses from embracing many practices he advocated, like guaranteed wages and lifetime employment for industrial workers, he became increasingly interested in “the social sector,” as he called the nonprofit groups.
Mr. Drucker counseled groups like the Girl Scouts to think like businesses even though their bottom line was “changed lives” rather than profits. He warned them that donors would increasingly judge them on results rather than intentions. In 1990, Frances Hesselbein, the former national director of the Girl Scouts, organized a group of admirers to honor him by setting up the Peter F. Drucker Foundation for Nonprofit Management in New York to expose nonprofits to Mr. Drucker’s thinking and to new concepts in management.
Mr. Drucker’s greatest impact came from his writing. His more than 30 books, which have sold tens of millions of copies in more than 30 languages, came on top of thousands of articles, including a monthly op-ed column in The Wall Street Journal from 1975 to 1995.
Among the sayings of Chairman Peter, as he was sometimes called, were these:
¶”Marketing is a fashionable term. The sales manager becomes a marketing vice president. But a gravedigger is still a gravedigger even when it is called a mortician – only the price of the burial goes up.”
¶”One either meets or one works.”
¶”The only things that evolve by themselves in an organization are disorder, friction and malperformance.”
¶”Stock option plans reward the executive for doing the wrong thing. Instead of asking, ‘Are we making the right decision?’ he asks, ‘How did we close today?’ It is encouragement to loot the corporation.”
Mr. Drucker’s thirst for new experiences never waned. He became so fascinated with Japanese art during his trips to Japan after World War II that he eventually helped write “Adventures of the Brush: Japanese Paintings” (1979), and lectured on Oriental art at Pomona College in Claremont from 1975 to 1985.
Peter Ferdinand Drucker was born Nov. 19, 1909, one of two sons of Caroline and Adolph Drucker, a prominent lawyer and high-ranking civil servant in the Austro-Hungarian government. He left Vienna in 1927 to work for an export firm in Hamburg, Germany, and to study law.
Mr. Drucker then moved to Frankfurt, where he earned a doctorate in international and public law in 1931 from the University of Frankfurt, became a reporter and then senior editor in charge of financial and foreign news at the newspaper General-Anzeiger, and, while substitute teaching at the university, met Doris Schmitz, a 19-year-old student. They became reacquainted after waving madly while passing each other going opposite directions on a London subway escalator in 1933 and were married in 1937.
Mr. Drucker had moved to England to work as a securities analyst and writer after watching the rise of the Nazis with increasing alarm. In England, he took an economics course from John Maynard Keynes in Cambridge, but was put off by how much the talk centered on commodities rather than people.
Mr. Drucker’s reputation as a political economist was firmly established with the publication in 1939 of “The End of Economic Man.” The New York Times said it brought a “remarkable vision and freshness” to the understanding of fascism. The book’s observations, along with those in articles he wrote for Harpers and The New Republic, caught the eye of policy makers in the federal government and at corporations as the country prepared for war, and landed him a job teaching at Sarah Lawrence College in Bronxville, N.Y.
Writing “The Future of Industrial Man,” published in 1942 after Mr. Drucker moved to Bennington College in Vermont, convinced him that he needed to understand big organizations from the inside. Rebuffed in his requests to work with several major companies, he was delighted when General Motors called in late 1943 proposing that he study its structure and policies. To avoid having him treated like a management spy, G.M. agreed to let him publish his findings.
Neither G.M. nor Mr. Drucker expected the public to be interested because no one had ever written such a management profile, but “The Concept of the Corporation” became an overnight sensation when it was published in 1946. ” ‘Concept of the Corporation’ is a book about business the way ‘Moby Dick’ is a book about whaling,” said Mr. Beatty, referring to the focus on social issues extending far beyond G.M.’s immediate operating challenges.
In it, Mr. Drucker argued that profitability was crucial to a business’s health but more importantly to full employment. Management could achieve sustainable profits only by treating employees like valuable resources. That, he argued, required decentralizing the power to make decisions, including giving hourly workers more control over factory life, and guaranteed wages.
In the 1950’s, Mr. Drucker began proclaiming that democratic governments had become too big to function effectively. This, he said, was a threat to the freedom of their citizens and to their economic well-being.
Unlike many conservative thinkers, Mr. Drucker wanted to keep government regulation over areas like food and drugs and finance. Indeed, he argued that the rise of global businesses required stronger governments and stronger social institutions, including more powerful unions, to keep them from forgetting social interests.
According to Claremont Graduate University, Mr. Drucker’s survivors include his wife, Doris, an inventor and physicist; his children, Audrey Drucker of Puyallup, Wash., Cecily Drucker of San Francisco, Joan Weinstein of Chicago, and Vincent Drucker of San Rafael, Calif.; and six grandchildren.
Early last year, in an interview with Forbes magazine, Mr. Drucker was asked if there was anything in his long career that he wished he had done but had not been able to do.
“Yes, quite a few things,” he said. “There are many books I could have written that are better than the ones I actually wrote. My best book would have been “Managing Ignorance,” and I’m very sorry I didn’t write it.”
Ricardo Semler: The Maverick 11 Years Later
Another great leader. I remember reading Maverick back in ’94 and handing a copy to Riley Bechtel, the CEO of the company I used to work for when I started my career.
I’ve never forgotten Semler, and it’s great to see that he hasn’t changed!
Read this.
One more thing: Semco’s annual rate of staff turnover is 2%!!
UPDATE: Here’s a longer post on Ricardo Semler and Workplace Democratization.
Douglas K. Smith: On Value and Values
Doug Smith’s latest blog entry: “Thick We’s” takes a hard look at how we’ve lost track of what matters:
“We lead dual lives — pursuing value over values from 9 to 5 and the reverse during the remainder of each day.”
and
“Today, the vast majority of those organizations pursue value over values. Others — and the less powerful ones — pursue values over value. Neither of these strategies are sustainable. Churches, schools, non-profits and so forth cannot sustain themselves by ignoring and being blind to value. But — and this is by far the more serious challenge — neither can for-profit organizations (whether Wal-Mart or GM or Roche — or a small bookstore or cleaners or barbershop) sustain itself if value — if profits, wealth, shareholder value or winning — is the trump card for every single serious issue and question on the table. Eventually, that approach eviscerates and hollows out the values — social, political, spiritual, environmental, medical, legal and others — on which the very value pursued rests.”
Want to know more? Check out Smith’s book.
The Long Tail in Print: Buying Books a Page at a Time
The Amazon “Pages program” would “unbundle” books, by allowing customers to purchase and view the pages they want or need.
Amazon “Upgrade” will give customers the option to purchase a physical book and perpetual online access to the book. [I do like this idea- now I won’t have lug all my books around the world.]
When will this happen? Sometime next year… read about it here.
How does this compare with Google’s “Print Library”?
Here’s what the bloggers are saying:
“Suddenly the reason why publishers and authors are so pissed off at Google becomes a little bit clearer. They think that they’re going to be able to slice and dice their books, selling little pieces of the book as people want them. They’re taking a page from the entertainment industry — and, like that industry, they’re going to discover this plan won’t work very well. They’ve just added friction in the form of additional transaction costs, both mental and monetary to finding information.”
—Techdirt
“Ultimately, it’s a very Long Tail idea, isn’t it? Allow people to buy stuff the way they want to, so that you can wring every last cent out of your content, by earning $1 from someone who isn’t willing to spend $10 for the entire book.”
—Yellow Handman
“It’s figured out a way to please authors and publishers, spread around the money for everyone, and do the right thing for readers. Google should sit up and take notice.”
—Konnecke.com
“It sounds intriguing – especially to folks who conduct research or who cite information. For example, I might want to cite a book in a blog post or an article or something, but not wait for the entire book (or even buy it). But to pay a nominal amount for access to a few pages – well, that might well be worth the cost.”
—Walloworld
Google: Revenues from Dead Authors’ Works
I’m kidding, but hey- now you can read Jane Austen and click on Google Ads at the same time!
Here’s the official line: “One of our goals for Google Print is to change that, and today we’ve taken an exciting step toward meeting it: making available a number of public domain books that were never subject to copyright or whose copyright has expired. We can show every page because these books are in the public domain.” more>>
I like it. They thought of it before Bill Gates.
Is this the “democratization of knowledge” Larry Prusak talks about?
