Author: Gary Hamel , Bill Breen

Publisher: Harvard Business School Press; 1 edition

Pub. in: September, 2007

ISBN: 1422102505

Pages: 288

Measurements: 9.2 x 6.1 x 1.2 inches

Origin of product: USA

Order code: BA01238

Other information: ISBN-13: 978-1422102503

This book starts with the hypothesis (if I may it term so) that management theories and practices of the twentieth century are not sufficient to ensure business success in the twenty-first century since many of the past assumptions of management are no longer valid for organizations of this century. Conventional management practices focussed on producing more with less, in other words improve operational efficiencies through automation, adherence to and improvement of internal processes. Theory X instead of Theory Y. "When I hire two hands, why does a brain come along with it?"

Human contribution in organizations they work for have been listed as: Obedience (conformance to rules), Diligence (follow defined processes), Knowledge (related to the task/function assigned), and Initiative (within certain boundaries). These are easily controllable and measurable attributes with the aid of performance measurement systems and well written manuals. In other words, these can be hired and demanded from employees.

What about Creativity and Passion? Unfortunately, conventional management practices ignore these two great traits in human beings that can provide the largest value addition for innovation and growth argues the author. The book also tries to quantify the big difference these traits can make. Creativity and Passion are employees' gift to organizations and cannot be "hired".

Organizations need to continuously adapt and innovate to succeed. Innovation should form a part of its DNA. "A dog cannot dance since its DNA has given it four legs".

The book devotes a chapter each to discuss how companies like W.L.Gore, Whole Foods, IBM and Google have successfully tapped creativity and passion of their employees to achieve great business results. This shows that management innovation can cut across industry verticals and can be successfully practiced with a conscious effort to recognise and unleash full human potential, particularly creativity and passion, the main elements of the innovation DNA.

There are several real life situations from which companies can draw upon to create a vibrant and dynamic environment for innovation. Markets for example are one such. One company has created an internal "market" for "valuation" of ideas and innovation projects. Generating passion through appealing for higher purpose of accomplishment through principles of Human Life and Faith is another. Celebrating diversity and using it as a catalyst for encouraging new ideas, as large cities do, is a great example for global companies leveraging diverse talents and cultures.

One need not be a CEO to be a management innovator. In the case of Best Buy, a vice president uses James Surowieki's the principle of "Wisdom of crowds" to forecast demand for various items. The crowd (ordinary employees) outperforms the experts on every occasion in its accuracy of forecasts.

Finally, there is a chapter linking the dimensions of Amplification and Aggregation. Organizational success depends on simultaneously expanding these two dimensions. Web 2.0 is a great aggregator. I recommend "The Long Tail: Why the Future of Business is Selling Less of More" by Chris Anderson and "Wikinomics: How Mass Collaboration Changes Everything" by Don Tapscott and Anthony D. Williams as essential supplementary readings to better appreciate this book.

If Web 2.0 is changing the way people collaborate, Management 2.0 will change the way companies are managed. Alignment of the two is the new DNA for success that can make even "elephants to dance". Dogs now have much less to worry about!!

This book is a classic and a must read for all managers.

(From quoting B.Sudhakar Shenoy, India)