the pencil reads

Management books are so ra-ra. This is my first book on management principles I'm reading, and I have a feeling this may not be the last. This book argues that the best companies are visionary companies -- companies that have invested in their identity by setting apart a core set of values, aligned their practices according to these values, and been unrelentingly committed to progress, both by setting "big hairy audacious goals" and by changing everything that doesn't affect the core.

For example, Merck, a pharmaceutical company, is committed to the benefit of humanity through innovative contributions to medicine. It is this core ideology that influenced its decision to send streptomycin to Japan -- at no profit -- to stem an outbreak of tuberculocis after World War II. While it seems as if this goes against the agenda of a profit-orientated company, this book argues that if you remain true to the core, the profits will eventually come. For one reason or another, Merck is now the largest pharmaceutical company in Japan. Fluke or karma? Who knows. This is what the book calls "the tyranny of the `or'; the genius of the `and'".

In fact, this kind of thinking sounds like what Jesus himself said:

So do not worry, saying, 'What shall we eat?' or 'What shall we drink?' or 'What shall we wear?' For the pagans run after all these things, and your heavenly Father knows that you need them. But seek first his kingdom and his righteousness, and all these things will be given to you as well.

One of the most interesting bits of this book is getting to read about the history of companies. Did you know that 3M (the post-it folks) started out as a failed mining company, and that 3M stands for "Minnesota Mining and Manufacturing"? Their commitment to innovation is seen in their 15-percent rule -- where employees can devote 15% of their time to pursuing projects of their interest. It was in this hodgepodge of experiments with weird adhesives that the first post-it notes were made, despite incredible amounts of literature explaining that "glues that don't glue" don't work.

On the other side of the world, in the period after World War II, the tag "Made in Japan" was synonymous with cheap, tacky products (perhaps like what "Made in China" is today). Sony, a small company that made small heating pads to stay afloat, wanted to change all that with high quality, high technology products. And they did. They introduced the world's first transistor radio, the first walkman, the first robotic dog, Aibo. I read in the news this weekend that they are pulling the plug on Aibo though.

So if you want to take these principles and run with them, what you need to do is:

1. Figure out what is your company's core ideology.

Only two or three at most. Core ideology has to be something that does not change no matter what, even if it affects profit.

2. Ensure company practices are aligned with core values.

That means, for example, if your company values team work, rewards and compensation should not benefit individual initiative.

3. Stimulate progress

Work hard! Try everything! Change anything and everything that doesn't go against the core ideology!

4. Don't become complacent

Never get the mentality that you have reached, even after you've become number one.

Gracious me. This post is as ra-ra as the book. I'm appalled with myself.

Posted on Monday, February 06, 2006 at 10:53 AM. :)