Who Says Elephants Can’t Dance: Inside IBM’s Historic Turnaround

In the early 1990s, IBM was in danger of going bankrupt. Loius Gerstner was called in to turn the company around.  Anyone who is trying to change a formerly successful orgazation will benefit from reading Gerstner’s thoughts on change management. Beware: the book starts out slow, turning off many readers. But after the first 20 pages, Gerstner’s training as an organizational consultant provides him the analytic language to lay out what are the key challenges in changing large organizations. Because he was an outsider at IBM, he has no reservations to analyze how IBM got itself into a near death experience.  I highly recommend this book.

The Freedom Tower Case: Why is group decision making not better individual decisions

Individual human beings have limited skills, knowledge,  and expertise can get carried away by emotions when making decisions. One would think that involving multiple people in a decision could overcome the limitations of individual decision making but social psycholgoists have long known that groups have their own limitations. The New York Times published a pertinent article on how a comittee came up with the redesigned Freedom Tower that architectual critics find dissappointing given the grandeur of the originial proposal. 

Here are excerpts from the article At Ground Zero, Vision by Committee.

In a recent simulation, Dr. Beth Dietz-Uhler, a psychologist at Miami University of Ohio, analyzed the behavior of small groups of three or more people acting as city council members, creating a park on land donated by a wealthy resident. As the simulation unfolded, information was provided that showed the land was contaminated, yet the acting council members, especially those who felt strongly bonded to the group, often stuck with their decision to build a park out of loyalty to the team.

Read the full article on the NY Times website.

The Original Design

Five Tips for Strategies for Organizational Change courtesy of Motorola’s New CEO

Tip 1: Don’t go too fast. Recognize it can take several years to build a high-performance company.

Tip 2: Get back to putting the customer first. As simple as that sounds, companies take it for granted.

Tip 3: Don’t let your sales force take no for an answer. They should tell clients: ‘Talk to my boss because I am not authorized to lose this deal.’

Tip 4: Whack yourself before somebody wacks you.

Tip 5: Beware of ‘clogged arteries’ in corporations—like too many vice presidents.
The full articles can be read at WSJ.com

Commanding Heights: The Battle for the World Economy

Rarely have I seen such a powerful documentary about how ideas shape the world. The film traces the ideas that shaped macro-economic policy making over the course of the 20th century. The film will be eye-opening for people who know very little how economic policy powerfully effects the welfare of societies all over the world. Even if you are a scholar familiar with the history of the 20 century, you will enjoy this fantastic piece of work. One word of clarification. Sophisticated scholars who believe in “free” markets believe in a need for laws. (The film originally aired on PBS and is now available on DVD.)

What Companies do to Make Life Easier for Their Employees

The WSJ in today’s report on leadership published an interesting article on what kind of perks companies provide to boost the morale of people and to make work life easier. “Fun perks didn’t end with the dot-com bust. They just changed,” reports Jennifer Saranow.

Read the full article on WSJ.com.

Four More Years of Happiness

Harvard pychology professor Daniel Gilbert predicts that most democrats will not be depressed during the next four years of George Bush. Here is the rationale that he offers in today’s New York Times: Research suggests that human beings have a remarkable ability to manufacture happiness. For example, when people in experiments are randomly awarded one of two equally valuable prizes, they quickly come to believe that the prize they won was more valuable than the prize they lost. They are often so surprised by their apparent good fortune that they refuse to believe the prize was awarded randomly, and they are generally unwilling to swap their prizes even when the experimenter offers to sweeten the deal with a little extra cash.

Things do seem to turn out for the best - but studies suggest that this has less to do with the way things turn out than with our natural tendency to seek, notice, remember, generate and uncritically accept information that makes us happy.

Our ability to spin gold from the dross of our experience means that we often find ourselves flourishing in circumstances we once dreaded. We fear divorces, natural disasters and financial hardships until they happen, at which point we recognize them as opportunities to reinvent ourselves, to bond with our neighbors and to transcend the spiritual poverty of material excess. When the going gets tough, the mind gets going on a hunt for silver linings, and most linings are sufficiently variegated to reward the mind’s quest.

Your can read the full article the New York Times website.

Malcom Gladwell’s Book “Blink” is out!

In my introductory management class I discuss the how cognitive heuristics (rules of thump) help us navigate our complex daily lives and make decisions before it is too late. Malcom Glawell new book describes this quick decision-making capability with many examples. I will review the book during the next couple of months, but in the meantime you can read excerpts from the book on Gladwell’s website.  David Brooks has written a very thoughtful review of the book in the New York Times that you can read here.

Gladwell and Surowiecki Debate How Good Decisions are made

Galdwell and Surowiecki have a new books coming out concerned with good decision making. I am presently reading Surowieki’s The Wisdom of Crowds and have Blink on my reading list. You can read a debate they both had about their books in Slate

Experience Gestalt Pictures

My former student John Tsau forwarded me some other examples of pictures that can be seen in different ways. What we can see is to a large extent conditioned what we expect to see in the world in the first place…

Gestalt psychologists have worked out these principles as guiding our perception.

• Proximity: We tend to group things together that are close together in space.

• Similarity: We tend to group things together that are similar

• Good Continuation: We tend to perceive things in good form

• Closure: We tend to make our experience as complete as possible

• Figure and Ground: We tend to organize our perceptions by distinguishing between a figure and a background.

Source: turnyourhead.com

The Tipping Point

Defining that precise moment when a trend becomes a trend, Malcolm Gladwell probes the surface of everyday occurrences to reveal some surprising dynamics behind explosive social changes. He examines the power of word-of-mouth and explores how very small changes can directly affect popularity. Perceptive and imaginative, The Tipping Point is a groundbreaking book destined to overturn conventional thinking in business, sociological, and policy-making arenas.

Overall judgement: This is a superb book and should be read by every student of the social world.