SHIVANI SETHICMBA5/1513

About the Authors :Thomas J. Peters Thomas J. ‘Tom’ Peters is an American writer on Business

Management Practices.

He’s an MBA and Ph.D. from Stanford Business School- received an honorary doctorate from State University of Management in Moscow.

Worked as a management consultant at McKinsey and Company.

Was referred to in British Department of Trade and Industry (DTI) as one of the world’s Quality Gurus.

Known as ‘Father of the Post-Modern Corporation’.

Chairman of Tom Peters Company.

About the Authors :Robert H. Waterman, Jr.

Robert H. Waterman, Jr. is a non-fiction writer and an expert in business management practices.

Earned his MBA from Stanford University and the Degree in Geophysics from the Colorado School of Mines.

Serves as the Chairperson of RLS Foundation; also serves on the boards of the World Wildlife Fund, Scleroderma Research Foundation, ASK Group, Boise Cascade and McKesson.

Currently directs his own company, The Waterman Group, Inc.

About the book - In Search Of Excellence is an international best-selling book written

by Thomas J Peters and Robert H Waterman, Jr.

Published in the year 1982.

Biggest selling and most widely read business book, ever- selling 3 million copies in its first four years

Most widely held business book in the United States from 1989 to 2006.

Book explores the art and science of management used by leading 1980’s companies with records of long term profitability and continuing innovation.

Focusses on 8 common themes responsible for the success of selected companies.

McKinsey 7-S Model Elements

Structure

Strategy

Systems

Style of Management

Skills- corporate strengths

Staff

Shared Values

The Core Principles- The 8 Important Lessons A Bias for Action.

Staying close to the customer.

Autonomy and Entrepreneurship.

Productivity through people.

Hands-on, Value driven.

Stick to the knitting.

Simple form-lean staff.

Simultaneous loose-tight properties.

Lesson One : A Bias for Action

This is about getting things done. There must be a free flow of information and open communication. The open and informal communication is more flexible and is able to take quicker action to institute changes needed to keep up in today’s business world.

“Management needs to get out of the office and out and about to communicate with the people of the organization. Small groups, or action oriented task forces can tackle projects or problems quickly and not get bogged down in bureaucracy.”

“Don’t be afraid to experiment. Successful companies who want to get things done are not afraid to try things , to experiment. Again, the flexible and informal organization is the context in which ‘trying something new’ will work.”

Lesson Two : Staying Close To The CustomerIt’s obvious that business needs customers, but many forget about their customers. Successful companies have an obsession about the customers, usually pertaining to quality, reliability or service. Excellent quality and reliability will make a satisfied customer. Great service will keep the customer coming back.

Lesson Three : Autonomy and EntrepreneurshipSometimes it takes a champion to take an idea or process and keep at it through numerous failures until success is reached. The organization that is flexible and supportive of the creative process will be successful in the long run. The excellent company must foster in-house competition, with intense communication and be able to tolerate the failures.

Lesson Four : Productivity Through PeoplePeople need to be treated as adults. If workers are treated as Partners, with dignity and respect, this will create the primary source of productivity and gains.

“ Companies that develop a philosophy and lives the philosophy that involves everyone within the organization with the overall success of the company will become better for it.”

“Management by wandering around and an apparent lack of rigid command chains will foster better communication and exchange of ideas. This will eventually increase productivity.”

Lesson Five : Hands On, Value DrivenExcellent companies make a serious issue to shape values. The right values clearly expressed will help define the organization. It is difficult to teach values through written policy statements. Stories, myths and legends will go a way to transmit the organization’s value system. The values of an organization compare to the vision of today’s modern companies.

Lesson Six : Stick to the Knitting

Do not champion mindlessly holding on to yesterday, diversification is a good thing. But organizations that branch out remaining somewhat close to their primary skills will be more successful.

“Many acquisitions take up the important time of top executives as they try to learn and control the new company and the synergy that was thought to exist does not pan out. Excellent companies acquire in an experimental way, buying small or starting new, willing to get out if it fails.”

Lesson Seven : Simple Form, Lean StaffThe size of a company can make it complex, but you need to work at making things for the Tens, Hundreds or Thousands who are the people who are making things happen, few administrative layers and few people at the upper level.

“Excellent companies are flexible when dealing with fast changing conditions. A company needs to be efficient in the basics, innovate on a regular basis and is responsive to threats.”

Lesson Eight : Simultaneous loose-tight propertiesThis is the coexistence of the firm’s central direction and individual autonomy. Companies that are loose-tight may be rigidly controlled, but they still foster entrepreneurship and innovation with the ranks. The climate will foster dedication to the core values of the company, while tolerating and empowering those same employees.

Conclusion

So far, In Search Of Excellence has been considered as one of those business-reads, and has been one of the best selling books of those times, It helps the Business grow.

Thank You!