Skip to content

Getting what you pay for

Yesterday we looked at a perhaps unexpected source of what some of its own members claim is not merely empty – but even harmful – management theory. But that is hardly the most active producer of such problematic thinking. The consulting industry is a far more prolific generator of some of the more inane ideas that have swept the field in recent decades.

And actually, there are two elements to the inanity. One is that utterly fatuous ideas are promoted with the greatest gravity by firms and people of the most prized reputations; and the other is that reasonably good ideas attract massive numbers of consultants desperate to join in on a hit parade, with an unfortunate effect on the reputation of the new model.

Let’s just look at some of the fads – you can decide for yourself which are of merit and which not:

  • Business process reengineering
  • Just-in-time logistics
  • Total Quality Management
  • Six Sigma
  • Balanced scorecard
  • Empowerment
  • Knowledge management
  • Management by objectives
  • Management by walking around
  • Activity-based costing
  • Benchmarking
  • The learning organization

There are obviously many others – if I missed one that has caught your eye for some reason, let us know what it is.

The interesting thing about movements like these is their faddish quality. You would think that a field as burdened with real work of often grave consequences would approach developments in how do or improve business operations with appropriate deliberation and seriousness. But that doesn’t seem to be what happens.

Some of these ideas catch fire. They capture public imagination and their authors become stars overnight. When this occurs, sensing profit, other consultants claim expertise in the area. There are certainly vastly more potential clients desperate to be seen by directors and shareholders as applying cutting-edge thinking than can be handled by the originators of that thinking, so the new entrants easily attract business.

Unfortunately, however sharp and experienced they may otherwise be, many of them are necessarily not as well-versed with the new concepts and the best circumstances and means of their application as the authors. Others, frankly, simply don’t grasp the concepts fully, or even at all, and just adopt the jargon. Some of these distort or redefine the fad to fit their standard method of work.

The result is that a lot of these management models lose definition, or their poor presentation and application undermine what may actually be a deserving idea. Consequently, interest wanes. And what could have been a decent contribution leaves a vacuum, soon to be filled by another due for the same fate. In other words, for whatever reason, it has become a fad, and has set the stage for the next.

But some really are effective ideas. Or, they may contain useful elements, or simply point to promising avenues of investigation.

What happens to those?

Today’s tip: Speaking of business trends, here’s one that routinely survives the fad wars: networking. Although it, like everything, is influenced by them. Please see this WSJ column by Joann Lublin on how to stand out in troubled times.

Want to read articles from the Encyclopedia Britannica for free? Take a moment to scroll down the sidebar on the main site a bit: right below my current readings you will see a dynamically renewing box pointing to articles on capitalism from the Britannica. These are typically available only by paid subscription, but if you click through to an article from here, you will be able to read it for free. Try it!

And speaking of subscriptions, ours here are always free! Why not subscribe by email or RSS reader now?

Technorati Tags: , , , , , , , , , , , , , , , , , , , , ,

Sphere: Related Content

RSS feed | Trackback URI

5 Comments »

Comment by Ravi Tangri Subscribed to comments via email
2008-11-06 22:06:11

I would say that there is another reason these approaches fail (in addition to consultants jumping onto a bandwagon and filtering/ distorting the essence of what may be an effective approach). That reason is the approach of the leadership themselves. Often managers see these approaches and things you ‘do’ or things you delegate to your organization to ‘do’. And that is far from the case.

Taking a fundamentally different approach to management requires the manager to change and/or the culture to change (and the bulk of the corporate culture is shaped by the leadership).

Organizations are living systems, and as such, the leader is as much part of the problem as part of the solution. As such, is the leader willing to look in the mirror and make the changes (s)he needs to take to support the initiative/ approach? It takes courage to do that, and not all leaders are ready to do so.

If leaders keep behaving they way they always have been, they show that they don’t really believe the approach, and the organization sees it as the flavour of the month.

Yes, consultants who don’t understand what they are doing dilute what may be an effective approach, but I don’t think that has as much of an impact as leaders who don’t understand the changes they want have to begin with them.

If it’s not working in the organization, then do you have the courage to look a lot closer to home as opposed to blaming your people or consultants?

 
Comment by Jim Stroup
2008-11-08 15:30:52

Hello Ravi,

You do us a service by emphasizing the key to the problem – both academics and consultants do the sorts of things described in these past two posts because the market – working executives – for one perverse reason or another, specifically wants them to, or tolerates (and pays for) it. This emphasis points to another point worth noting – a lot of academics and consultants are properly focused and produce good work, much of which fails to receive the attention it deserves due to its generators lacking the marketing inclinations or instincts of the others.

This is worth a post of its own – I will get to that.

Thanks for your visit and your excellent observations!

 
Comment by Ravi Tangri Subscribed to comments via email
2008-11-09 08:51:40

I look forward to your post. I’m working on one myself to integrate this conversation with a couple of others I’ve been having on other blogs.

 
Name (required)
E-mail (required - never shown publicly)
URI
Subscribe to comments via email
Your Comment (smaller size | larger size)
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> in your comment.

Trackback responses to this post

Bad Behavior has blocked 622 access attempts in the last 7 days.