Looking to History for Roots of Management

I have just finished reading three books: "Concept of Corporation" and "The Practice of Management" by Peter Drucker and "My Years With General Motors" by Alfred P. Sloan. I read these books to understand how management as a subject was born and what is management all about actually.

History, I have always believed, has the roots of what we see today and lessons about what to avoid. The central theme that I have picked from these three books is that optimum decentralization with a strong core is the secret of managing growth. Not only it makes managing easier, but also it helps to test and evaluate managers without endangering the whole enterprise. An enterprise that cannot generate its own leaders is bound to run into trouble sooner or later. To generate leaders and retain good people, the company's course of action and its expectations from its people needs to be transparent. This brings us to what Mr. Drucker calls managing by objectives, that everybody in the organization has clearly defined goals and is able to track his progress objectively. The next challenge is aligning the interest of the individual to that of company by helping each person to see the whole rather than one, small, obscure part. Giving people more responsibility and meaningful tasks are the suggested remedies.

The concepts, as simple as they may seem, offer a powerful perspective supported by recent books like "Good to Great" and "In Search of Excellence". This makes me feel that there do exist some basic, common-sense tenets or principles that remain unchanged over time, but still need some experience and wisdom to apply correctly. Perhaps this will keep the management an art known by many and perfected by few.

Re-discovering a Ghost

Just finished reading "A Ghost's Memoir: The Making of Alfred P. Sloan's 'My Years with General Motors' " by John McDonald. It is a small book of 187 pages, and I found it so interesting that I finished it in barely 2 days. That is what can happen to reading speed when a book is good. Perhaps in terms of pure business education this book may not have as much to offer in absolute terms, but in terms of realism, strategy, organizational behaviour and group dynamics, the book offers some remarkably deep insights. It is an ode to a person without whose effort the world would not have seen one of the best books in business studies. The book does not reflect well on Peter Drucker, whose introduction to the revised edition of Sloan's book appears both delusional and ridiculous in light of the facts presented in McDonald's book.

I cannot help but observe one thing: a strategist needs to remain unobserved and even under-estimated while being very alert and perceptive, making the right moves at the right time to be silently influential. This, however, can translate into a genius dying unheard and unsung in his time. Only in the long-term and only if somebody is willing to dig enough does the genius appear. A strategist needs somebody who can handle his PR and marketing without jeopardizing the strategist's position of power or influence. A tricky bit but is perhaps necessary. Like Mr. McDonald became a channel to show the world the genius that was Mr. Sloan, sadly nobody was able to play that role for Mr. McDonald. In fact, had it not been for Mr. Drucker's inaccurate foreword, his story would never have been told. We also learn of the importance of the discipline of business historians and their corresponding role as Ghost Writers in bringing out an accurate description of the history of successful enterprises.

The book brings out the importance of chance, networking, strategy and perseverance in any kind of conflict. Luck plays its part, but fortune does favour the brave and the persistent most of the times. It is important to start over with a basis to fight on, without which the fight may prove to be unsustainable. As McDonald discovered that he could bring up a case against GM for suppression of the book and found lawyer friends willing to fight it out, he persisted with it and played his cards right. He never took what was told on its face-value and tried to place it in larger scheme of things. Overall, it is a good example of group dynamics in hostile situations and I would recommend the book to anybody who has read and enjoyed the original book by Mr. Sloan.