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Profit Beyond Measure: Extraordinary Results through Attention to Work and People Kindle Edition
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They explore the very deep difference between how most large western corporations management thinks and act vs. how a Toyota executive would see the world and practice their role as a leader and manager. Belief in principles such as "self-organization", the focus on the link between "knowing and doing", enhancing the relationships that interact to create profitable value for customers, and the "union between customer and organization" are explored by the authors. They illustrate how the "profit beyond measure" management philosophy contrasts with what most western manager experience and do in large corporations driven by "quantitative abstractions" of the business that are one dimensional and disconnected from the deeper inter-relations in business that enable sustained and profitable customer relationships.
I enjoyed the first half of the book much more than the second. There is significant repetition that needs some editing. I could do without some of the section toward the end on how these techniques could save society from other "sustainability perils" as seen by the authors. The very end includes a very good table and summary of the key concepts.
I highly recommend this read on the philosophy of management to anyone interested in alternative ideas on leadership and management of successful and profitable large corporations. Many of the ideas will seem intuitive to successful entrepreneurs; however, they are much less commonly practiced at scale in large corporations where it is much more common to see the "mechanistic" and imposed controls based top down management approach.
If you resort to curtailing travel and eliminating donuts to try and make budget, or think lean is a material control system, or simply feel that their current patterns of management will never get you where you need to go, you should read this book. Through the attention and cultivation of the work and relationships of the business and not just the measurement results you will find many disconnects in how you are serving your customers. The work of the organization carries all of the information you need with it, and while output measures are important for reporting reasons, they are not helping you to design a system that connects workers to customers. This can help.
I predict this book and not Relevance Lost will be considered Johnson greatest contribution. Enjoy!
Tom Johnson's overview of business thinking is astoundingly clear, the beginning of the revolution that Dr. W. Edwards Deming demanded for so many years.
The Toyota story is told beautifully in chapter 3; now I begin to understand what happens in that Kentucky facility.
Chapter 4 is the weakness of the book; there is no there there. The Scania "secret" is not in the same universe as that at Toyota. What more evidence do we need than the sale of the company?
Chapter 5 is fascinating. Tom Johnson the heretic! A modern day Martin Luther! No one on Wall Street will want to know about orderline analysis. However, if those using it prosper...
The stock market vanish? That is precisely what will happen if Tom Johnson's thinking catches on. And that can't happen too soon. It may already be too late to preserve our culture as we know it. But then, it may be time.
Most in business will not want to hear the last two chapters. But no one wants to hear that they have cancer either, right? This patient (the world economy) has cancer, and no one knows if survival is possible.
I can't wait for the next iteration of this "stuff." The books that Johnson (and a few others, like Dr. Ed Baker) are going to write could make all the difference in our future. Dr. Norman Borlaug and his cohorts are trying to feed the world in spite of potentially deadly water shortages; Johnson and a few like-minded intellectuals are trying to feed the world correct thinking in spite of potentially deadly shortsightedness.
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