The Support Economy: Why Corporations Are Failing Individuals and The Next Episode of Capitalism (Hardcover)

~ (Author), James Maxmin (Author)
Key Phrases: new enterprise logic, federated support network, transaction crisis, United States, New York, General Motors (more...)

Editorial Reviews

From Publishers Weekly

This husband-and-wife team Zuboff's a Harvard professor and author of In the Age of the Smart Machine, and Maxmin's the former CEO of Volvo and Laura Ashley give socialist utopians of yesteryear stiff competition with their manifesto for a more personalized capitalism. They strive for the pop socioeconomics of a David Brooks or a Malcolm Gladwell, but their heavy academic style may disenchant some readers before their thesis's more radical parts kick in. Over the last two centuries, they argue, an increasingly efficient economy, coupled with a rise in democratic thinking and growing access to information, has opened up life's possibilities to increasing numbers of people. Because participation in the consumption-based economy is unavoidable, the general public looks to markets to provide "deep support" in their quest for individualization, but "are routinely punished for being complex psychological individuals in a world still fitted out for the old mass order." This macroeconomic structure treats people as either employees or consumers and inevitably hurts their feelings. Zuboff and Maxmin would eliminate the "little murders" of customer service interaction by replacing the current transaction-based model with a form of "distributed capitalism" based on a customer-supplier relationship, so semi-anonymous customer service reps will be replaced by "advocates" fully emotionally involved in their clients' needs. It's not clear how society will make its way to the authors' dream of a fully automated lifestyle, or what life will be like for blue-collar workers and manual laborers. Pundits who celebrated the Internet's potential to thoroughly revolutionize the economy, however, will no doubt rally behind these impractical visions.
Copyright 2002 Reed Business Information, Inc.

From Library Journal

This husband-and-wife team-Zuboff is a professor at the Harvard Business School, while Maxmin is a former CEO of Volvo, Thorn EMI, and Laura Ashley-present a comprehensive, scholarly, but readable tome that provides a social, economic, and psychological history of the relationships between people and corporations. The authors aver that while people have certainly changed over time, the corporations and other organizations they depend on for employment, goods, and services have not. "Managerial capitalism" fails to meet human needs because managerial structures have remained the same over time. As explanation, the authors cite the increase in the number of educated, middle-class people after World War II; the rise of the individual; working women; alienation from organized religion; frustrations with inadequate medical care; consumer issues; and, most recently, corporate chicanery such as at Enron. The authors maintain that employees' frustration and their demands for more control over their time need to be addressed. Zuboff and Maxmin describe a future where employees will take matters into their own hands and willingly incur the cost (including paying advocates) to find relief from frustration, improve communication, and create a win-win situation for all parties. This timely and thought-provoking book will appeal to users of business collections in academic and large public libraries.
Steven J. Mayover, formerly with the Free Lib. of Philadelphia
Copyright 2002 Reed Business Information, Inc.

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Product Details

• Hardcover: 478 pages
• Publisher: Viking Adult; 1st edition (October 10, 2002)
• Language: English
• ISBN-10: 0670887366
• ISBN-13: 978-0670887361
• Product Dimensions: 9.3 x 6.2 x 1.8 inches
• Shipping Weight: 1.8 pounds (View shipping rates and policies)
• Average Customer Review: 4.0 out of 5 stars  See all reviews (31 customer reviews)
• Amazon.com Sales Rank: #797,446 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

17 of 17 people found the following review helpful:

5.0 out of 5 stars A New Framework for Business, December 31, 2002

By	harry wedstrone (new haven conn) - See all my reviews

This is a book of two parts. The first is a detailed examination of why managerial capitalism has reached the end of its useful life. Zuboff and Maxmin say that because the system is out of date it cannot serve the needs of todays consumers. They also say that its inward focus results in scandals like Enron because managers think the comany is there to serve their needs, Managers are at the center of the system and value is inside the company. All of this was ok for making things but failed to deliver good service because it was not designed to do this. It used technology to reduce cost and depressed the impact of the internet. The net result is that we as consumers have changed, management has not and we suffer. WE seek help and only get a bloody nose.. The second part of the book follows the logic of the demise the managemet system Here value goes outside the company and rests with individuals ( it is distributed) To achieve alignment everything else ( control systems, ownership etc ) becomes distribed and wealth is realised by allowing people to live life on their own terms- by providing them with ' deep support" Here the techological and organisational vision is revolutionary. You need to forget all you have learned and think about capitalism from the ground up. The authors envision using digital platforms to provide common data and service. They suggest this will take 30% plus out of todays cost. These platforms will be base for new services and levels of support ranging from the fully automated to the personal. Here are advocates who navigate the world on your behalf. This is a whole new function ... they provide the ultimate range of support . They represent federations whose sole purpose is to provide different levels of support leveraging off the digital platforms. Federations obtain products and servcie from enterprises which come together and break apart .The whole concept is unique and extremely challenging. The idea is to create debate not to be perscriptive. The story of the family used to illustrate the metaprinciples of distributed capitalism is great. It makes you understand how different things can be and need to be. Zuboof and Maxmin have convinced me not only that change is necessary and inevitable but there is a new future to write. Some people may dismiss their ideas as too radical but look at their track records- they know what they are talking about. The world needs more creative and visionary thinkers like this-people who are not affraid to embrace the future and challenge the status quo-- we should all applaud them

32 of 37 people found the following review helpful:

1.0 out of 5 stars An interesting history lesson, but that's it, December 13, 2002

By	Timothy R. Vojta "tvojta" (Decatur, GA United States) - See all my reviews (REAL NAME)

After a seductive tease in the introduction, the book spends the next 300 pages or so rehashing in a rather disjointed fashion a history of capitalism, with a little bit of social psychology and technology trends sprinkled in for good measure. This in and of itself is interesting reading, if the book was titled "A Primer on Capitalism." It is only in the last 50-75 pages that the authors get to the point. In all fairness: Yes I agree, people are burned out (I know I am), yes things DEFINITELY need to change, and the rich are getting richer, I'm all over that idea. However, the relationship economy has already been tried and failed. Ultimately, and especially lately, products with any "value-added" premium built into their prices, quickly become commodities, which means that people are not willing to PAY for that premium service. It is unlikely, in this case, that such a commoditized service, would not support the profit margins required for sustainability. Witness the demise of the stockbroker. Take another example: 9/11 aside, the major airlines simply have not been competitive with the discount carriers. Their bloated cost structure has come home to roost, as they tried to support "markets of one." I believe it is an accident of their size that they remain in business for the time being. The most disingenuous part of the book though is really the last 50-75 pages. It is pure speculation and points to no specific examples of research currently under development that even hints at these advances taking hold. IBM tried and failed to sell Internetworked refrigerators. Consumers basically said, I can figure when my milk has expired thank you. I don't need to pay someone to tell me to schedule a servicing of my HVAC, it's called a calender and a pen. I cannot tell you how badly I wanted to really believe that this was a new paradigm in the making. The time is ripe for a new way of thinking but this is not it. It seems that after all of that writing, the authors could only come up with a glorified "concierge" service as the answer to all of our troubles. My sense is that the answer lies in the development of a different kind of leadership among the executive class, and the creation and enforcement of rigorous international standards for business and human rights. The reality of capitalism is that it rewards self-interested behavior. Yet we want a society where everyone can share more of the pie. These ideas are currently incongruous. Until that incongruity is reconciled we a going to continue to repeat the mistakes of the past.

13 of 13 people found the following review helpful:

5.0 out of 5 stars A Total Revelation, March 4, 2003

By A Customer

Last year I retired from a consulting practice that I built up over 30 years. During that time I advised clients on a wide range of activities and sold literally millions of consulting hours . When I was in the bank last month I found a copy of Across the Board and saw the article about The Support Economy. Any book which is recommended only for the brave is for me. Once I started reading this book I could not put it down. Every page was a new revelation. Prof Zuboff sets out a line of argument that is both factually and emotionally compelling. She took the blinkers off my eyes;- they had been there for 30 years. I suddenly saw business in a new light, I saw potential that I had missed, I saw what customer centric really means and I saw why most of the projects I was involved in rarely delivered the promised results. The book is full of one liners and terms that will become classic. But, the book is also powerful, full of courage and vision. The combination of Zuboff and Maxmin ( a turnaround specialist) is explosive. Their idea that control, value , cash etc leaves the company ( center) and is distributed is profound. It points the way to a new economic model. It is the salvation of the telecom operators and possibly the banks. ( mine needs it badly) The authors courage is exhibited in their development of the metaprinciples of the new economy. They provide a powerful framework for think about the future. After reading this I have only one regret-- I am to old to see all of this become a reality .