Business theorists from England

"Take hold of your future or the future will take hold of you - be futurewise."

"The Six Faces of the FUTURE are: Fast, Urban, Tribal, Universal, Radical and Ethical"

"Never has the future become so rapidly the past."

"Your company may have a reputation for brilliant leadership, outstanding innovation, clever branding and effective change management, but the business could fail if the world changes and you are unprepared."

"The larger the corporation, the greater the risk that you are flying blind."

"Institutional blindness is a major threat to the future of all corporations."

"Listen to your customers but don't (always) believe what they say - they know even less about the future than you."

"In banking or insurance trust is the only thing you have to sell."

"Two thirds of all those who have ever lived to sixty five are alive today and most of them are women."

"The first one hundred and fifty year old human being could be alive as a baby today."

"To every trend there is a counter-trend. There are a number of pendulums operating and each creates new business opportunities."

"The risk of a business being hit by a low probability, high impact event is far higher than most boards realise because the number of potential wild cards is so great."

"The key to understanding the future is one word: sustainability."

"Tribalism is the most powerful force in the world."

"The future is about emotion: reactions to events are usually far more important than the events themselves."

"People will only follow you if they see you're ahead, are convinced you know the route, trust you, and want to get there too."

"Life's too short to sell things you don't believe in."

"The future of marketing belongs to honest information, accurate data and clear claims based on truth."

"Every product and service is sold on the promise of a better future. The purpose of business is to deliver on the promise, and profit is the reward for doing so."

"Business strategy is the battleplan for a better future."

"You can have the greatest strategy in the world, but what is the point if no one cares?"

"Connect with all the passions people have -for themselves, their families, their communities and wider world - and they will follow you to the ends of the earth, buy your products and services with pride, and may even be willing to work for you for next to nothing."

"When you have been close to death it makes you think about life."

"Give people a convincing reason and they will lay down their very lives."

"All the most powerful speeches ever made point to a better future."

"You cannot have strong leadership without passion."

"Mission is at the heart of what you do as a team. Goals are merely steps to its achievement."

"Business is the "art" of making money by selling things or services people want for more than their cost."

"The traditional approach has tended to obscure the nature of the choice that has to be made. The question is commonly thought of as one in which A inflicts harm on B and what has to be decided is: how should we restrain A? But this is wrong. We are dealing with a problem of a reciprocal nature. To avoid the harm to B would inflict harm on A. The real question that has to be decided is: should A be allowed to harm B or should B be allowed to harm A?"

"In my view, what is wanted in industrial organization is a direct approach to the problem. This would concentrate on what activities firms undertake, and would endeavor to discover the characteristics of the groupings of activities within firms. Which activities tend to be associated and which do not? The answer may well differ for different kinds of firm."

"American institutionalists were not theoretical but anti-theoretical.... Without a theory they had nothing to pass on except a mass of descriptive material waiting for a theory, or a fire."

"Transaction costs were used in the one case to show that if they are not included in the analysis, the firm has no purpose, while in the other I showed, as I thought, that if transaction costs were not introduced into the analysis, for the range of problems considered, the law had no purpose."

"In my youth it was said that what was too silly to be said may be sung. In modern economics it may be put into mathematics."

"I can't remember [of a good regulation]. Regulation of transport, regulation of agriculture—agriculture is a, zoning is z. You know, you go from a to z, they are all bad. There were so many studies, and the result was quite universal: The effects were bad."

"If economists wished to study the horse, they wouldn't go and look at horses. They'd sit in their studies and say to themselves, "what would I do if I were a horse?""

"Outside the firm, price movements direct production, which is co-ordinated through a series of exchange transactions on the market. Within a firm, these market transactions are eliminated and in place of the complicated market structure with exchange transactions is substituted the entrepreneur-coordinator, who directs production. It is clear that these are alternative methods of coordinating production. Yet, having regard to the fact that, if production is regulated by price movements, production could be carried on without any organization at all might we ask, why is there any organization?"

"A firm consist of the system of relationships which comes into existence when the direction of resources is dependent on an entrepreneur."

"Why... are there any market transactions at all? Why not all production carried on by one big firm?... First, as a firm gets larger, there may be decreasing returns to the entrepreneur function, that is, the costs of organizing additional transactions within the firm may rise... Second, it may be that as the transactions which are organized increase, the entrepreneur fails to place the factors of production in the uses where their value is greatest, that is, fails to make the best use of the factors of production... Finally, the supply price of one or more of the factors of production may rise, because the "other advantages" of a small firm are greater than those of a large firm."

"The question always is, will it pay to bring an extra exchange transaction under the organizing authority? At the margin, the costs of organizing within the firm will be equal either to the costs of organizing in another firm or to the costs involved in leaving the transaction to be “organised” by the price mechanism. Business men will be constantly experimenting, controlling more or less, and in this way equilibrium will be maintained. This gives the position of equilibrium for static analysis."

"But a theory is not like an airline or bus timetable. We are not interested simply in the accuracy of its predictions. A theory also serves as a base for thinking. It helps us to understand what is going on by enabling us to organize our thoughts. Faced with a choice between a theory which predicts well but gives us little insight into how the system works and one which gives us this insight but predicts badly, I would choose the latter, and I am inclined to think that most economists would do the same."

"If you torture the data enough, nature will always confess."

"In mainstream economic theory, the firm and the market are, for the most part, assumed to exist and are not themselves the subject of investigation. One result has been that the crucial role of the law in determining the activities carried out by the firm and in the market has been largely ignored."

"The limit to the size of the firm is set where its costs of organizing a transaction become equal to the cost of carrying it out through the market. This determines what the firm buys, produces, and sells. As the concept of transaction costs is not usually used by economists, it is not surprising that an approach which incorporates it will find some difficulty in getting itself accepted. We can best understand this attitude if we consider not the firm but the market."

"Markets are institutions that exist to facilitate exchange, that is, they exist in order to reduce the cost of carrying out exchange transactions. In an economic theory which assumes that transaction costs are nonexistent. markets have no function to perform, and it seems perfectly reasonable to develop the theory of exchange by an elaborate analysis of individuals exchanging nuts for apples on the edge of the forest or some similar fanciful example. This analysis certainly shows why there is a gain from trade, but it fails to deal with the factors which determine how much trade there is or what goods are traded."

"What I have done is to show the importance for the working of the economic system of what may be termed the institutional structure of production."

"Economists have uncovered the conditions necessary if Adam Smith’s results are to be achieved and where, in the real world, such conditions do not appear to be found, they have proposed changes which are designed to bring them about. It is what one finds in the textbooks. Harold Demsetz has said rightly that what this theory analyses is a system of extreme decentralisation. It has been a great intellectual achievement and it throws light on many aspects of the economic system. But it has not been by any means all gain."

"What is studied is a system which lives in the minds of economists but not on earth. I have called the result “blackboard economics.” The firm and the market appear by name but they lack any substance. The firm in mainstream economic theory has often been described as a “black box.” And so it is."

"Writers after Coase have referred to the authority structure of the firm as a "visible hand" that works in combination with Smith's invisible hand. The everyday fact that employers exercise power over their employees — not news to most employees — had been a central theme in Marx's economics, but it was (and generally continues to be) overlooked by most neoclassical economists. Early in his studies Coase noted the similarity between the hierarchical organization of capitalist firms, with their reliance on command relations, and the then-existing system of centralized economic planning in the Communist countries, where production was carried out in accordance with orders from higher authorities and where market competition played little role."

"In the early 1950s the now-famous British economist Ronald Coase announced his intention of going to the USA, and his colleagues at the LSE, myself included, gave him a farewell dinner. He explained how he became an economist. Not having been taught Latin from an early age, he was precluded from taking an Arts degree. His matriculation maths was not of the standard expected for entry to a science faculty. He found that his choice was narrowed to the taking of a B.Com. degree. 'In this mysterious way', said our honoured guest, 'the shade of Adam Smith beckoned me'. We have every reason to be grateful to the deficiencies in Coase's early education!"

"Progress is personal; it comes from individuals demanding more of themselves and everyone else."

"Conventional wisdom is not to put all of your eggs in one basket. 80/20 wisdom is to choose a basket carefully, load all your eggs into it, and then watch it like a hawk."

"Business strategy should not be a grand and sweeping overview. It should be more like an under view, a peek beneath the covers to look in great detail at what is going on."

"Marketing, and the whole firm, should devote extraordinary endeavour towards delighting, keeping for ever and expanding the sales to the 20 per cent of customers who provide 80 per cent."

"Few people take objectives really seriously. They put average effort into too many things, rather than superior thought and effort into a few important things. People who achieve the most are selective as well as determined."

"Everything you want should be yours: the type of work you want; the relationships you need; the social, mental, and aesthetic stimulation that will make you happy and fulfilled; the money you require for the lifestyle that is appropriate to you; and any requirement that you may (or may not) have for achievement or service to others. If you don’t aim for it all, you’ll never get it all. To aim for it requires that you know what you want"

"In 1897, Italian economist Vilfredo Pareto (1848-1923) noticed a regular pattern in distributions of wealth or income, no matter the country or time period concerned. He found that the distribution was extremely skewed toward the top end: A small minority of the top earners always accounted for a large majority of the total wealth. The pattern was so reliable that Pareto was eventually able to predict the distribution of income accurately before looking at the data. Pareto was greatly excited by his discovery, which he rightly believed was of enormous importance not just to economics but to society as well. But he managed to enthuse only a few fellow economists.... Pareto's idea became widely known only when Joseph Moses Juran, one of the gurus of the quality movement in the twentieth century, renamed it the "Rule of the Vital Few." In his 1951 tome The Quality Control Handbook, which became hugely influential in Japan and later in the West, Juran separated the "vital few" from the "trivial many," showing how problems in quality could be largely eliminated, cheaply and quickly, by focusing on the vital few causes of these problems. Juran, who moved to Japan in 1954, taught executives there to improve quality and product design while incorporating American business practices into their own companies. Thanks to this new attention to quality control, between 1957 and 1989, Japan grew faster than any other industrial economy."

"Those who can create wealth — and know that they can — are able to dictate their own terms. Wealth is a means to happiness, but it is not the main one. What most people want is control over their lives. They want the ability to choose how they live: what work they do, the way they interact with friends and colleagues, the quality of their personal relationships, the way they view themselves."

"People think that creativity is largely a matter of talent, experience, or luck. They are wrong. Talent, experience, and luck are all key elements, but there is something more fundamental, accessible, and powerful that you can use to multiply your creative effect."

"In business the 80/20 principle is behind any innovation, any extra value. It is an entrepreneurial principle, a formula for value creation utilized not only by entrepreneurs, but by most managers and organizations."

"The key is to work out the few things that are really important, and the few methods that will give us what we really want."

"General Systems Theory, as originally intended by Von Bertalanffy, is an ideal framework for the modeling of a business enterprise. Work, in its most civilized form should enrich, empower and emancipate. Thus we must continue to find ways to support work as a humanistic, not mechanistic endeavor. We must continue to seek out new models of business that support and enhance the individual as well as the collective whole. Given all this new technology, we need new institutions for handling it."

". There is after all, no point in claiming that the purpose of a system is to do what it constantly fails to do."

"If cybernetics is the science of control, management is the profession of control"

"Hence we may recognize the subject of management cybernetics — which is seen as a rich provider of models for doing OR."

"An internal combustion engine is 'clearly' a system ; we subscribe to this opinion because we know that the engine was designed precisely to be a system. It is, however, possible to envisage that someone (a Martian perhaps) totally devoid of engineering knowledge might at first regard the engine as a random collection of objects. If this someone is to draw the conclusion that the collection is coherent, forming a system, it will be necessary to begin by inspecting the relationships of the entities comprising the collection to each other. In declaring that a collection ought to be called a system, that is to say, we acknowledge relatedness. But everything is related to everything else. The philosopher Hegel enunciated a proposition called the Axiom of Internal Relations. This states that the relations by which terms are related are an integral part of the terms they relate. So the notion we have of any thing is enriched by the general connotation of the term which names it; and this connotation describes the relationship of the thing to other things... [There are three stages in the recognition of a system]... we acknowledge particular relationships which are obtrusive: this turns a mere collection into something that may be called an assemblage. Secondly, we detect a pattern in the set of relationships concerned: this turns an assemblage into a systematically arranged assemblage. Thirdly, we perceive a purpose served by this arrangement: and there is a system."

"Policy-making, decision-taking, and control: These are the three functions of management that have intellectual content."

"Too close a view may interfere with one's grasp of an overall problem or concept"

"The strategies that managers employ are at least as important as the facilities at their disposal."

"According to the science of cybernetics, which deals with the topic of control in every kind of system (mechanical, electronic, biological, human, economic, and so on), there is a natural law that governs the capacity of a control system to work. It says that the control must be capable of generating as much "variety" as the situation to be controlled."

"It is the concept of likelihood that a real understanding of probability resides, and we must learn how to measure it."

"A stochastic process is about the results of convolving probabilities-which is just what management is about, as well."

"The aim of management science is to display the best course of action in a given set of circumstances, and this must include all the circumstances."

"There is, then, a logical priority about the arrangements, and logic has nothing to do with time."

"Certain management policies-stretching of credit resources, for example-may lead to great progress in good conditions; but, like the Grand Prix car in comparison with the Land Rover, they may not be robust enough to survive when the going gets tough."

"The whole picture is complicated by the stockists and merchants who will try to exploit any shortages that may appear. The result is this. The feedback information from the industry's environment consists, first and foremost, of a forward order load. Much of this "demand for steel" will be bogus."

"A slowly moving queue does not move uniformly. Rather, waves of motion pass down the queue. The frequency and amplitude of these waves is inversely related to the speed at which the queue is served."

"It is terribly important to appreciate that some things remain obscure to the bitter end."

"Management problems are not respecters of the company organization, nor of the talents of the people appointed to solve them."

"The development of the Watt governor for steam engines, which adapted the power output of the engine automatically to the load by means of feedback, consolidated the first Industrial Revolution."

"The problem with managing either a business or a prison by periodic rather than continuous inspection is that the "variables" are likely to be seriously out of control before the discrepancy is noted."

"Clearly, if it is possible to have a self-regulating system that implicitly arranges its own stability, then this is of the keenest management interest."

"We have, over the centuries, devised a management structure for running things, whether firms or whole countries. This structure depends absolutely on the limitations of the human hand, eye, and brain. The discoveries of management cybernetics, coupled with the techniques of operational research and with the new technology of automation, make possible a new way of running things which is not so limited. Yet we insist on retaining the original structures and automating them. In so doing, we enshrine in steel, glass, and semiconductors those very limitations of hand, eye, and brain that the computer was invented precisely to transcend."

"The system of transportation is not coherent; it is not treated as integral. Roads compete with railroads and airlines in chaotic fashion, and at immense cost to the nation."

"We have no aces to what the world is, to ontology, only to descriptions of the world... that is to say, epistemology... We should never say something in the world: 'it is a system'; only: "it may be described as a system'."

"We reduce the complexity of the variety of the world in experiments whose results are validated by their repeatability, and we may build knowledge by the refutation of hypotheses."

"The concept of action research arises in the behavioural sciences and is obviously applicable to an examination of human activity systems carried out through the process of attempting to solve problems. This core is the idea that the researcher does not remain an observer outside the subject of investigation but becomes a participant in the relevant human group. The researcher becomes a participant in the action, and the process of change itself becomes the subject of research. In action research the roles of researcher and subject are obviously not fixed: the roles of the subject and the practitioner are sometimes switched: the subjects become researchers... and researchers become men of action."

"A methodology will lack the precision of a technique but will be a firmer guide to action than a philosophy. Where a technique tells you 'how' and a philosophy tells you 'what', a methodology will contain elements of both 'what' and 'how'."

"In a certain sense human activity systems do not exist, only perceptions of them exist, perceptions which are associated with specific Ws."

"The core of a root definition of a system will be a transformation process (T), the means by which defined inputs are transformed into defined outputs. The transformation will include the direct object of the main activity verbs subsequently required to describe the system."

"Making drawings to indicate the many elements in any human situation is something which has characterized SSM from the start. Its rationale lies in the fact that the complexity of human affairs is always a complexity of multiple interacting relationships; and pictures are a better medium than linear prose for expressing relationships. Pictures can be taken in as a whole and help to encourage holistic rather than reductionist thinking about a situation."

"Cursory inspection of the world suggests it is a giant complex with dense connections between its parts. We cannot cope with it in that form and are forced to reduce it to some separate areas which we can examine separately'. .."

"In an unrestricted science such as biology or geology, the effects under study are so complex that designed experiments with controls are often not possible. Quantitative models are more vulnerable and the chance of unknown factors dominating the observations is much greater."

"A root definition describing a notional system chosen for its relevance to what the investigator and/or people in the problem situation perceive as matters of contention."

"Systems thinking, as written about and practiced by Russell Ackoff, C. West Churchman, Peter Checkland and others, contained within it many of the impulses that motivate the application of design ideas to strategy, organization, society, and management. Ideas such as engaging a broad set of stakeholders, moving beyond simple metrics and calculations, considering idealized options and using scenarios to explore them, shifting boundaries to reframe problems, iteration, the liberal use of diagrams and rich pictures, and tirelessly searching for a better set of alternatives were all there. If the business and management community had bought it, we would not be having the many discussions about design, design thinking, and expanding management education to engage the intuitive, to embrace values, to look beyond available choices."

"We are moving towards another type of society than that to which we have become accustomed. This is sometimes referred to as a new service society, the society of the second industrial revolution or the post-industrial society. There is no guarantee of our safe arrival. Not only are the interdependencies greater – they are differently structured... The changes in the policy field [housing, health care, urban rehabilitation, education, etc.] demand a new mobilization of the sciences."

"This paper introduces a concept of organizational ecology. This refers to the organizational field created by a number of organizations, whose interrelations compose a system at the level of the field as a whole. The overall field becomes the object of inquiry, not the single organization as related to its organization-set. The emergence of organizational ecology from earlier organization theory is traced and illustrated from empirical studies. Its relevance to the task of institution-building, in a world in which the environment has become exceedingly complex and more interdependent, is argued."

"We know from experience that technology can be changed. We have learned in the quality-of-working-life enterprise not to accept the technological imperative."

"Faced with low productivity despite improved equipment, and with drift from the pits despite both higher wages and better amenities... a point seems to have been reached where the [coal] industry is in a mood to question a method it has taken for granted."

"The longwall method [can be] regarded as a technological system expressive of the prevailing outlook of mass-production engineering and as a social structure consisting of the occupational roles that have been institutionalized in its use."

"[The workmethods had] evolved from the experience of successive generations... Each other, often being members of the same family; supervision was internal, having the quality of 'responsible autonomy."

"The advantage of placing responsibility for the complete coal-getting task squarely on the shoulders of a single, small, face-to-face group which experiences the entire cycle of operations within the compass of its membership. [And furthermore], for each participant the task has total significance and dynamic closure ."

"The outstanding feature of the social pattern with which the pre-mechanized equilibrium was associated is its emphasis on small group organisation at the coal face. [Indeed], under these conditions there is no possibility of continuous supervision, in the factory sense, from any individual external to the primary work group."

"Occupational roles express the relationship between a production process and the social organization of the group. In one direction, they are related to tasks, which are related to each other; in the other, to people, who are also related to each other."

"Every time the cycle is stopped, some 200 tons of coal are lost. So close is the task interdependence that the system becomes vulnerable from its need for 100 percent performance at each step."

"Considering enterprises as "open socio-technical systems" helps to provide a more realistic picture of how they are both influenced by and able to act back on their environment. It points in particular to the various ways in which enterprises are enabled by their structural and functional characteristics (“system constants”) to cope with the “lacks” and “gluts” in their available environment."

"Ludwig von Bertalanffy's formulation enables exchange processes between the organism, or organisation, and the elements in its environment to be dealt with in a new perspective, it does not deal at all with those processes in the environment itself which are among the determining conditions of the exchanges. To analyse these an additional concept is needed - the causal texture of the environment."

"A main problem in the study of is that the environmental contexts in which organizations exist are themselves changing, at an increasing rate and towards increasing complexity. This point, in itself, scarcely needs laboring. Nevertheless, characteristics of organizational environments demand consideration for their own sake if there is to be an advancement of understanding in the behavioral sciences of a great deal that is taking place under the impact of technological change, especially at the present time."

"Socio-technical analysis is made at three levels - the primary work system; the whole organization; and macrosocial phenomena."

"The socio-technical concept arose in conjunction with the first of several field projects undertaken by the Tavistock Institute in the coal-mining industry in Britain. The time (1949) was that of the postwar reconstruction of industry in relation to which the Institute had two action research projects.(2) One project was concerned with group relations in depth at all levels (including the management/labor interface) in a single organization - an engineering company in the private sector. The other project focused on the diffusion of innovative work practices and organizational arrangements that did not require major capital expenditure but which gave promise of raising productivity. The former project represented the first comprehensive application in an industrial setting of the socio-clinical ideas concerning groups being developed at the Tavistock."

"Coal being then the chief source of power, much industrial reconstruction depended on there being a plentiful and cheap supply. But the newly nationalized industry was not doing well. Productivity failed to increase in step with increases in mechanization. Men were leaving the mines in large numbers for more attractive opportunities in the factories. Among those who remained, absenteeism averaged 20 percent. Labor disputes were frequent despite improved conditions of employment. Some time earlier the National Coal Board had asked the Institute to make a comparative study of a high producing, high morale mine and a low producing, low morale, but otherwise equivalent mine."

"Fellows were encouraged to revisit their former industries and make a report on any new perceptions they might have. One of these Fellows, Ken Bamforth, returned with news of an innovation in work practice and organization which had occurred in a new seam in the colliery where he used to work in the South Yorkshire coalfield. The seam, the Haighmoor, had become possible to mine "shortwall" because of improved roof control."

"The work organization of the new seam was, to us, a novel phenomenon consisting of relatively autonomous groups interchanging roles and shifts and regulating their affairs with a minimum of supervision. Cooperation between task groups was everywhere in evidence, personal commitment obvious, absenteeism low, accidents infrequent, productivity high. The contrast was large between the atmosphere and arrangements on these faces and those in the conventional areas of the pit, where the negative features characteristic of the industry were glaringly apparent. The men told us that in order to adapt with best advantage to the technical conditions in the new seam, they had evolved a form of work organization based on practices common in the unmechanized days when small groups, who took responsibility for the entire cycle, had worked autonomously."

"What happened in the Haighmoor seam gave to Bamforth and myself a first glimpse of the "emergence of a new paradigm of work" (Emery, 1978) in which the best match would be sought between the requirements of the social and technical systems. Some of the principles involved were as follows:"

"# The work system, which comprised a set of activities that made up a functioning whole, now became the basic unit rather than the single jobs into which it was decomposable."

"# Correspondingly, the work group became central rather than the individual jobholder."

"# Internal regulation of the system by the group was thus rendered possible rather than the external regulation of individuals by supervisors."

"# A design principle based on the redundancy of functions rather than on the redundancy of parts (Emery, 1967) characterized the underlying organizational philosophy which tended to develop multiple skills in the individual and immensely increase the response repertoire of the group."

"#This principle valued the discretionary rather than the prescribed part of work roles (Jaques, 1956)."

"# It treated the individual as complementary to the machine rather than as an extension of it (Jordan, 1963)."

"# It was variety-increasing for both the individual and the organization rather than variety-decreasing in the bureaucratic mode."

"Socio-technical studies needed to be carried out at three broad levels - from micro to macro - all of which are interrelated:"

"# Primary work systems. These are the systems which carry out the set of' activities involved in an identifiable and bounded subsystem of a whole organization - such as a line department or a service unit..."

"# Whole organization systems. At one limit these would be plants or equivalent self-standing workplaces. At the other, they would be entire corporations or public agencies. They persist by maintaining a steady state with their environment."

"# Macrosocial systems. These include systems in communities and industrial sectors, and institutions operating at the overall level of a society. They constitute what I have called "domains". (Trist, 1976a; 1979a). One may regard media as socio-technical systems. McLuhan (1964) has shown that the technical character of different media has far-reaching effects on users. The same applies to architectural forms and the infrastructure of the built environment. Although these are not organizations, they are socio-technical phenomena. They are media in Heider's (1942) as well as McLuhan's sense."

"One major figure in the (Tavistock) institute and its chairman for many years was Eric Trist, who is the primary author of sociotechnical systems theory. Trist was joined in his theoretical efforts and in his research by others who were either employed by the institute or strongly influenced by it. Thus in many respects sociotechnical systems theory is a product of the same kind of group interaction on which the theory itself focuses. Trist remains the prime contributor to the theory, even though he left the institute after some twenty years."

"Trist both pioneered and embodied action research – an interplay between his deep interaction with real problems in organisations, and the forefront of academic thought in social science. through coal mines in Yorkshire to an entire manufacturing town in New York State – he was an active contributor to both theory and practice. He said that “I used to look with longing at what I called the ‘white-coated peace’, the tranquillity of the white-coated scientists working in the lab. But that was not for me. I didn’t have a white lab coat. I was in the messy, ambiguous, problematic stuff that you have to endure if you are going to be a psychologist”."

"It wasn’t so long ago that complexity thinking was synonymous with bottom-up computer simulation. However, in the past 5-10 years we have seen other threads emerge from this mathematically focused starting point that acknowledge the profound philosophical implications of complexity."

"I’m basically interested in intervention. The key question for me is: how can you intervene more systemically? Systems approaches make the assumption that things are interconnected. That’s the fundamental starting point. However, we don’t have the privilege of a God’s eye view of that interconnectedness, so there are inevitable limits to understanding, and it is those limits that we call boundaries. So systemic intervention, for me, at a fundamental level, is how to explore those boundaries, and how to take account of the inevitable lack of comprehensiveness and begin to deal with that."

"When I started out, I believed that there were very distinct systems paradigms, and there was a need to choose and defend yours against other people’s paradigms. Today I prefer to see a systems perspective as something that you develop over a lifetime. It’s like building a house that evolves: you can redecorate it, even build an extension."

"Critical systems thinkers like Midgley identify three waves of systems thinking over the last 50 years or so. Early systems theorists (e.g. Bertalanffy) described systems in physical terms, resorting to metaphors from electronic computation or biology. This 'hard systems' tradition still has its advocates and practitioners... Subsequently the limits of the physical metaphor... were reached, and the second wave of systems thinking developed. This 'soft systems thinking' employed social metaphors to develop appropriate systems approaches for human systems. The move to a more phenomenological, interpretative understanding of human systems, where meaning is central and is negotiated intersubjectively, parallels the new paradigm / crisis of social psychology of the 1970s. The Third wave, or critical systems school, in which Midgley locates himself, has drawn on the critical theory of Habermas, particularly in relation to theories of knowledge and of communicative rationality, and on the work of Foucault and followers on the nature of power."

"Managers are to information as alcoholics are to booze. They consume enormous amounts, constantly crave more, but have great difficulty in digesting their existing intake."

"The difference between management and administration (which is what the bureaucrats used to do exclusively)... is the difference... between choice and rigidity."

"The first myth of management is that it exists. The second myth of management is that success equals skill."

"CEO of General Electric for 30 years, Jack Welch was declared the greatest manager of the 20th century. Focusing firmly on results, he revolutionized management to achieve phenomenal growth for his company."

"Although he reputedly hated the label of ‘guru’, Peter Drucker was, by any standards, the greatest management guru the world has yet seen. In 1996, the McKinsey Quarterly journal described him as the ‘the one guru to whom other gurus kowtow’ and Robert Heller described him as ‘the greatest man in the history of management’, praise indeed for a man who described himself as ‘just an old journalist’."

"Never ignore a gut feeling, but never believe that's enough."

"Management is a far more homely business than its would be scientists suggest, more closely allied to cookery than any other human activity. Like cooking, it rests on a degree of organisation and on adequate resources. But just as no two chefs run their kitchens the same way, so no two managements are the same."

"What goes wrong [in long-range planning] is that sensible anticipation gets converted into foolish numbers: and their validity always hinges on large loose assumptions."

"Never ignore a gut feeling: but never believe that it's enough on its own"

"Effective management always means asking the right question."

"Decisions should be pushed down as far as possible, to the level of competence. This allows senior managers more time for making decisions of a more complex nature"

"Decision tree - The most picturesque of all the allegedly scientific aids to making decisions. The analyst charts all the possible outcomes of different options, and charts all the latters' outcomes, too. This produces a series of stems and branches (hence the tree). Each of the chains of events is given a probability and a monetary value."

"Management — The definition that includes all the other definitions in this book and which, because of that, is the most general and least precise. Its concrete, people meaning — the board of directors and all executives with the power to make decisions — is no problem, except for the not-so-little matter of where to draw the line between managers who are part of "the management" and managers who are not."

"Letting I dare not wait upon I would is a mug's game, and those who play it usually get mugged."

"No decision in business provides greater potential for the creation of wealth (or its destruction, come to think of it) than the choice of which innovation to back."

"All businesses operate below their true potential. That is unavoidable, given the fallibility of human beings."

"Common sense suggests that some factors in a [risk management] process are more important than others — and analysis supports this. In reality, only 20 percent of activities. In reality, only 20 percent of activities may account for up to 80 percent of results. This is known as Pareto's law, the “80/20 rule”...Pareto's law concentrates on the significant 20 percent and gives the less important 80 percent lower priority."

"When I left university I had two objectives; I wanted to write and I wanted to get married. The only way I could afford both was to get a job as a journalist. At that time, the National Union of Journalists was very powerful and would not allow the direct recruitment of journalists from college except under special circumstances. The Financial Times was deemed special and duly recruited a cadre of very bright young people. I joined the FT as part of that now celebrated intake and, as a result, found myself working on a business newspaper."

"My first book “The Naked Manager”, a big success in 1971, had been followed by many others, and I wanted to write still more. Writing books is very interesting as each new project takes you in a different direction. You learn a lot – especially about what you yourself really think."

"Two of my favourite current management writers are Americans – Clayton Christensen and Peter Senge. My all-time favourite gurus are Peter Drucker, who became a greatly admired friend, and W. Edwards Deming. The thing that set these people apart from many other business commentators is that they didn’t propose any all - encompassing theories, they simply told it like it is. The fact is that life cannot be summarised as a simple set of rules; it’s far too complicated for that and it’s always changing. Unfortunately, all-encompassing panaceas do seem to be popular and certainly sell books, which is why I so value the objectivity of thought that each of these people brought to the debate."

"Robert Heller can rightly be credited with promoting "management" as a skill that could be learned and perfected – and written about."

"In general, we seem to associate complexity with anything we find difficult to understand."

"Critique in its many manifestations puts up a common opposition to instrumental rationality, because such a rationality can be linked to control in the human condition in a similar way to the idea of power in the control of the natural world."

"Quality means meeting customers' (agreed) requirements, formal and informal, at lowest cost, first time every time."

"Churchman recognized in his critical systemic thinking that the human mind is not able to know the whole. … Yet the human mind, for Churchman, may appreciate the essential quality of the whole. For Churchman, appreciation of this essential quality begins … when first you see the world through the eyes of another. The systems approach, he says, then goes on to discover that every worldview is terribly restricted. Consequently, with Churchman, a rather different kind of question about practice surfaces. … That is, who is to judge that any one bounded appreciation is most relevant or acceptable? Each judgment is based on a rationality of its own that chooses where a boundary is to be drawn, which issues and dilemmas thus get on the agenda, and who will benefit from this. For each choice it is necessary to ask, What are the consequences to be expected insofar as we can evaluate them and, on reflection, how do we feel about that? As Churchman points out, each judgment of this sort is of an ethical nature since it cannot escape the choice of who is to be the client—the beneficiary—and thus which issues and dilemmas will be central to debate and future action. In this way, the spirit of C. West Churchman becomes our moral conscience. A key principle of systemic thinking, according to Churchman, is to remain ethically alert. Boundary judgments facilitate a debate in which we are sensitized to ethical issues and dilemmas."

"If Critical Systems Thinking is to contribute to enlightened societal practice, e.g., with respect to the pressing environmental and social issues of our time, it should be accessible not only to well-trained decision makers and academics but also to a majority of citizens."

"Cybernetics, although not ignoring formal networks, suggests that an informal communications structure will also be present such that complex conversations at a number of levels between two or more individuals exist."

"So far it has been ascertained that a root definition is a core description of purposeful activity taken from a specific point of view."

"Positivism : knowledge is hard, real, and capable of being transmitted in a tangible form."

"In the modern systems approach, the concept "system" is used not to refer to things in the world but to a particular way of organising our thoughts about the world."

"We consider the notion of "system" as an organising concept, before going on to look in detail at various systemic metaphors that may be used as a basis for structuring thinking about organisations and problem situations."

"Different methodologies express different rationalities stemming from alternative theoretical positions which they reflect. These alternative positions must be respected, and methodologies and their appropriate theoretical underpinnings developed in partnership."

"To Flood and Carson (1988, p. 19) systems science is about dealing with complexity, and systems notions are particularly valuable when individuals are confronted with something which appears to them to be complex."

"Critical systems thinking is a robust recent trend in humanistically oriented systems work. Spearheaded by work of Ulrich (1983), Flood (1990), and Flood and Jackson (1991), this approach manages to accommodate the knowledge-constitutive interests of Jürgen Habermas (1971) and the interpretive analytical orientations of Michel Foucault (1972) through a meta-methodology involving constant critical reflection. The meta-methodology serves as the basis for the generation of a new methodology that critically applies various systems approaches to problem solving."

"I sell here, Sir, what all the world desires to have—power."

"Knowledge management often generates theories that are too general or abstract to be easily testable. In some cases, simulation modeling can help. [WE have developed] an agent-based simulation model derived from a conceptual framework, the Information Space or I-Space and use it to explore the differences between a neoclassical and a Schumpeterian information environment."

"Data itself can be thought of as an energetic phenomenon that links us in our capacity as knowing subjects to an external physical world."

"The thinking that underpins strategic planning is a legacy of more stable times when the environment was changing sufficiently slowly for an effective corporate response to emerge from methodical organisational routines."

"Strategic intent describes a process of coping with turbulence through a direct, intuitive understanding of what is occurring in order to guide the work of a school. A turbulent environment cannot be tamed by rational analysis alone so that conventional strategic planning is deemed to be of little use. Yet it does not follow that a school's adaptive response must be left to a random distribution of lone individuals acting opportunistically and often in isolation as in a regime of intrapreneurship. Strategic intent relies on an intuitively formed pattern or gestalt — some would call it a vision — to give it unity and coherence"

"Although in practice innovative coding is hard to disentangle from innovative theorizing, the latter, over time, has a far greater impact than the former on how we perceive and interpret the world."

"The production of information and its use in transactions both incur costs and are thus subject to economizing. In the 1970s, there occurred a revival of interest among economists in the economics of transaction, and Oliver Williamson in particular, building on the earlier work of Ronald Coase and John Commons, has explored the different institutional arrangements that govern transactional choices."

"We shall also concern ourselves with the institutional order built up from transactions, but our focus will be less narrowly economic than the one adopted by Williamson. Like him, we shall argue that institutional structures aim partly at achieving transactional efficiencies and that where such efficiencies are effectively achieved they act somewhat like a magnetic field – a mathematician would call them ‘attractors’ – drawing the uncommitted transaction into a given institutional orbit. Yet in contrast to Williamson’s, our concept of transactions is underpinned by an explicit rather than an implicit theory of information production and exchange which yields a different way of classifying them as well as a distinctive approach to their governance. We find ourselves in consequence in the realm of political economy rather than of economics tout court."

"In spite of such limitations, the New Institutional Economics research programme, given its willingness to acknowledge the central role played by information in the economic process, constitutes a marked advance over what is on offer from the neoclassical orthodoxy. There, information retains the status of the luminiferous ether of classical physics before Einstein: a ubiquitous medium that admitted of a mechanical account of action at a distance and kept the world conveniently Newtonian. Institutional economics, however, needs a more explicit and dynamic theory of information flows if it is to make more than a dent in the neoclassical defences. Having established that there exists credible institutional alternatives to markets, it needs to show how information production and exchange underpins them all, shaping their internal evolution as well as how they collaborate and compete. In effect, what is needed is a theory of social learning that extends beyond the individual or the organization to encompass more complex institutional settings. Such as theory, I believe, is foreshadowed in Douglas North’s historical studies of institutions. It now needs further development."

"Failure to properly conceptualize the nature of knowledge assets condemns firms."

"[Knowledge assets are] stocks of knowledge through which different value added services flow."

"Data is discrimination between physical states of things (black, white, etc.) that may convey or not convey information to an agent. Whether it does so or not depends on the agent's prior stock of knowledge."

"Information establishes a relation between things and agents."

"Knowledge is a property of agents predisposing them to act in particular circumstances."

"Following the lead given by new institutional economics, we shall take the transaction as our unit of analysis. For our purposes, a transaction can be thought of as any act of social exchange that depends on information flows for its accomplishment. Transactions can be as simple and brief as the purchase of a packet of cigarettes, or as complex as and extended as those which bind a Zen master to his disciples. Like institutional economists, we are interested in the relationship that can be established between different transactional characteristics and the phenomenon of institutionalization. Our use of the term transaction, however, will extend beyond that of institutional economics where the focus has tended to be primarily on transaction costs and efficiency considerations. These, to be sure, are relevant. But, as we shall see, they are not the whole story."

"At the level of firms, therefore, only those whose cultural repertoire gives them transactional capacity throughout the I-Space can summon and adequate learning response to any emerging gaps between technology and culture. Those operating from too narrow a cultural base in the space, however, must of necessity lose control of the SLC unless they can complement their limited cultural repertoire through carefully selected interfirm and intercultural collaborations – i.e. through an externalization of transactions that link them with agents located elsewhere in the space. However, they will then confront the same problems of integration that more culturally diverse firms encounter inside their organization when trying to coordinate the activities of different functions or businesses. There is no cheap grace."

"It makes sense to describe a core competence as a complex adaptive system, located in the lower regions of the I-Space between an ordered regime in which knowledge assets get frozen into technologies and a chaotic regime in which the stability necessary for effective organizational coordination and integration remains absent. Core competences, then, have their being in a region of the I-Space sandwiched between an excess of usable structure and a total lack of it. We hypothesize that the possession of a core competence is one measure of a firm’s ability to deal with complexity."

"Only firms that can handle a full SLC, together with the multiple cultures required to drive it, will be able to cope with the many and conflicting demands of a complex regime."

"By organization Maturana refers to the relations between components that give a system its identity, that make it a member of a particular type. Thus, if the organization of a system changes, so does its identity. By structure Maturana means the actual components and relations between components that constitute a particular example of a type of system. The organization is realized through the structure, but it is the structure that can interact and change. So long as the structural changes maintain the organization, the system’s identity remains."

"The supreme principle [in Industrial Organization] has been the belief that business efficiency and the welfare of the employees are but different sides of the same problem. Character is an economic asset ; and business efficiency depends not merely on the physical condition of employees, but on their general attitude and feeling towards the employer."

"The test of any scheme of factory organization is the extent to which it creates and fosters the atmosphere and spirit of cooperation and good-will, without in any sense lessening the loyalty of the worker to his own class and its organizations."

"[The younger employees] do not appreciate fully the great change that is taking place in their lives, nor do they realize the added responsibility that "growing-up" brings with it."

"Preference is given to applicants just leaving school, as they have not yet lost their habit of discipline and obedience, and they retain more of what they have learnt there."

"There is no doubt that the efficiency of the Works at Bournville is assisted by the Suggestion Scheme, and it has been found that the good accomplished, is not only in the pecuniary value to the Firm or to the suggestor, but also in the development of the mental and creative power, which makes both men and girls more efficient and valuable workers, and fosters an intelligent independence."

"The worker must recognize that the welfare of employer and employed are not antagonistic, but complementary and inclusive, and that each position brings its duties and its rights. Thus the workers are led, not driven, and each consciously co-operates with the management in working for a common end."

"Suggestions [by employees] are invited on the various matters indicated under the following headings : —"

"On one level, then, Cadbury can be seen as a classic example of Victorian industrial paternalism, albeit carried to greater lengths than in most other companies of the day. On another level, however, the Cadbury system resulted in a very strong, highly flexible organisation which, thanks to the strong levels of employee commitment and participation, could draw on a large bank of experience and intelligence to solve problems and undertake what amounted to continuous improvement. The employee participation system in particular meant that Cadbury was constantly upgrading its processes and products. Herbert Casson regarded Cadbury in the 1920s as one of the best-run companies in Britain, if not the world, and summed up the key to its success very succinctly: ‘At Cadbury, everybody thinks.’"

"In 1931, under the title "Onward Industry," Messrs. James D. Mooney and Alan C. Reiley published a full-length book examining the comparative principles of organization as displayed historically in governmental, ecclesiastical, military and business structures... Their book constitutes the first serious attempt to deal with the subject comparatively and synoptically."

"This paper has a threefold purpose:"

"Administration has to do with getting things done; with the accomplishment of defined objectives. The science of administration is thus the system of knowledge whereby men may understand relationships, predict results, and influence outcomes in any situation where men are organized at work together for a common purpose. Public administration is that part of the science of administration which has to do with government, and thus concerns itself primarily with the executive branch, where the work of government is done, though there are obviously administrative problems also in connection with the legislative and the judicial branches. Public administration is thus a division of political science, and one of the social sciences."

"At the present time administration is more an art than a science; in fact there are those who assert dogmatically that it can never be anything else. They draw no hope from the fact that metallurgy, for example, was completely an art several centuries before it became primarily a science and commenced its great forward strides after generations of intermittent advance and decline."

"To hold a group or individual accountable for activities of any kind without assigning to him or them the necessary authority to discharge that responsibility is manifestly both unsatisfactory and inequitable. It is of great Importance to smooth working that at all levels authority and responsibility should be coterminous and coequal."

"No superior can supervise directly the work of more than five or, at the most, six subordinates whose work interlocks. The reason for this is simple. What is supervised is not only the individuals, but the permutations and combinations of the relationships between them. And while the former increase in arithmetical progression with the addition of each fresh subordinate, the latter increase by geometrical progression. If a superior adds a sixth to five immediate subordinates he Increases his opportunity of delegation by 20 per cent, but he adds over 100 per cent to the number of relationships he has to take into account. Because ultimately it is based on the limitations imposed by the human span of attention, this principle is called The Span of Control."

"[Functionalism is a] dividing up of activities as to kinds."

"The fact that these principles, collected from the writings of half a dozen different people, many of whom made no attempt to correlate their work with others, can be presented in a coherent and logical pattern is in itself strong evidence that there is a common element in all experience of the conduct of social groups, that a true science of administration is ultimately possible."

"Scientific Management is not a new "system," something "invented" by a man called F. W. Taylor, a passing novelty." It is something much deeper, an attitude towards the control of human systems of co-operation of all kinds rendered essential by the immense accretion of power over material things ushered in by the industrial revolution..."

"An attempt will also be made to fill in some of the gaps in the first volume. The thirteen men and women herein described are by no means all and not necessarily the most distinguished of those who have contributed to the movement. It seems to have a special attraction for two types of mind—the employer or technician who finds in the direction of industrial work a responsibility to his fellows which outweighs in interest the commercial or technical aspect of his task, and the scientist specialising in some particular field, who is not satisfied to remain purely a specialist, but feels that the intellectual methods and the integrity of the genuine research worker have a wider contribution to make in the crisis which faces our civilisation."

"Such men and women are not confined to any one country or to any one period. They are in the great tradition of humanism. Their work is as typical of the social heritage of the twentieth century as the work of Michael Angelo and Leonardo da Vinci was typical of the Renaissance. That heritage can neither be understood nor preserved, unless it is seen as the unified gift of many minds bearing on every aspect of life which has engaged man's long search for goodness, beauty and truth."

"It is this detachment, this use of comparison, his faith in the possibility of applying scientific processes of thought to the organisation of industry, which constitute Babbage's unique contribution to the advancement of management. More than half a century before Taylor was to illuminate the same point, with far greater effect because he was a practising engineer, Babbage had stumbled on the underlying truth that there are general principles applicable to the manufacture of products by machinery, and that it is an understanding of these principles rather than the technical knowledge of how to make a particular article which is of the first importance."

"The concept of management as a specific body of knowledge and practice forming the basis of a specialised profession ... Wherever human activities are carried out in an organised and co-operative form, there management must be found."

"If they (the ) had not been (aware of human problems involved) — and Taylor either failed to encounter, or to recognize the significance of, the early work in industrial psychology contributed by Walter Dill Scott, Hugo Munsterberg, and others — there was the amazing fact that one of them, Frank Bunker Gilbreth, happened to fall in love with a girl who was a psychologist by education, a teacher by profession, and a mother by vocation. I know of no occurrence in the whole history of human thought more worthy of the epithet "providential" than that fact. Here were three engineers — Taylor, Gantt, and Gilbreth — struggling to realize the wider implications of their technique, in travail with a "mental revolution," their great danger that they might not appreciate the difference between applying scientific thinking to material things and to human beings, and one of them married Lillian Moller, a woman who by training, by instinct, and by experience was deeply aware of human beings, the perfect mental complement in the work to which they had set their hands."

"There is nothing which rots morale more quickly and more completely than poor communication and indecisiveness - the feeling that those in authority do not know their own minds. And there is no condition which more quickly produces a sense of indecision among subordinates or more effectively hampers communication than being responsible to a superior who has too wide a span of control."

"Planning is essentially the analysis and measurement of materials and processes in advance of the event and the perfection of records so that we may know exactly where we are at any given moment. In short it is attempting to steer each operation and department by chart and compass and chronometer – not “by guess and by God”."

"Before Mary Follett, industrial groups had seldom been the subject of study of political or social scientists. It was her special merit to turn from the traditional subjects of study - the state or the community as a whole - progressively to concentrate on the study of industry... Her approach was to analyse the nature of the consent on which any democratic group is based by examining the psychological factors underlying it. This consent, she suggested, is not static but a continuous process, generating new and living group ideas through the interpenetration of individual ideas."

"MAJOR URWICK and Dr. Metcalf have rendered a conspicuous service by editing this collection of Mary Follett’s lectures on business management. They contain teaching which was of importance when the lectures were delivered, and which many people felt should be preserved in a collated form and given a wider public. The circumstances of today have increased that importance. Many people are being called upon to fill new administrative posts, and these lectures teach the principles which should underly all administrative method."

"Another exponent of the traditional classical approach is Lyndall Urwick, a British consultant. Urwick concentrated less on building an entire philosophy of management and more on collecting the basic ideas of earlier writers into an eclectic summary of classical concepts. He tediously compared the frameworks of Fayol, Taylor, Mooney and Reiley, and others and found a remarkable consistency in their conclusions... In a tabular presentation of statements from other writers, Urwick arrived at 29 principles of administration."

"Lyndall Fownes Urwick (1891–1983) has been one of the most important figures in the development of modern management practices and thought. Central to his work was a passion for spreading the gospel of systematic and ‘scientific’ management through his activities as a management consultant, through his efforts in developing management institutions, and perhaps most of all, through what he later called his ‘mission at large’ in taking ‘modern’ management to managers and the wider public... Organization theory was his particular concern and provides his main standing in history. The principles were based broadly on managerial tasks, together with some general organizational precepts such as the correspondence of authority with responsibility."

"Two of the most widely adopted models of human resource management are the hard and soft versions. These are based on opposing views of human nature and managerial control strategies. The hard model is based on notions of tight strategic control, and an economic model of man according to Theory X, while the soft model is based on control through commitment and Theory Y. We argue that because these assumptions are so divergent, they cannot both properly be incorporated within a single model of human resource management."

"Each of us needs three things, three types of network. We need a ‘posse’ prepared to ride out with us, so that when things get really tough you can e-mail them in the middle of the night to say, ‘Oh shit!’ and they get it, they know what you mean. I have about four people in my posse... You also need what I call the ‘big ideas’ crowd – people who live in different worlds from you. And I think we also need what I call a ‘regenerative community’: a physical place – because much of what we do now is virtual – a real place with real people who know you, who love you. My feeling is that the regenerative community is the bit that we’ve got most wrong right now, because the big default of the future is that we’re lonely. We live on our own in cities, and we’re lonely."

"You can't expect that what you've become a master in will keep you valuable throughout the whole of your career, and you want to add to that the fact that most people are now going to be working into their 70s. Being a generalist is, in my view, very unwise. Your major competitor is Wikipedia or Google."

"One-third of our children will live to 100-years-old. That will make a huge difference in how we think about careers. Longevity will be one of the most important issues we face. It will affect everyone and organisations are extremely ill-prepared."

"An unhysterical look at the future of employment. We are now facing a revolution in the way we work. A substantial schism in the past which is so great that the work we do will change – possibly so that in two decades our working lives will have been so REWORKED that they are unrecognisable.This is not just about the impact that a low carbon enonomy will have on the way we work. It is also about how the nexus of technology and globalisation will work together with demographic and societal changes to fundamentally transform much of what we take for granted about work"

"Work is a defining, all-consuming part of our lives. Now, more than ever, the speed at which the nature of work is changing is having an extraordinary impact on working lives everywhere."

"We are more likely to love our work when we see it as play."

"In mechanistic systems the problems and tasks facing the concern as a whole are broken down into specialisms. Each individual pursues his task as something distinct from the real tasks of the concern as a whole, as if it were the subject of a subcontract. "Somebody at the top" is responsible for seeing to its relevance. The technical methods, duties, and powers attached to each functional role are precisely defined. Interaction within management tends to be vertical, i.e., between superior and subordinate... Management, often visualized as the complex hierarchy which is familiar in organization charts, operates a simple control system, with information flowing up through a succession of filters, and decisions and instructions flowing downwards through a succession of amplifiers."

"Organic systems are adapted to unstable conditions, when problems and requirements for action arise which cannot be broken down and distributed among specialist roles within a clearly defined hierarchy. Individuals have to perform their special tasks in the light of their knowledge of the tasks of the firm as a whole. Jobs lose much of their formal definition in terms of methods, duties, and powers, which have to be re¬defined continually by interaction with others participating in a task. Interaction runs laterally as much as vertically. Communication between people of different ranks tends to resemble lateral consultation rather than vertical command. Omniscience can no longer be imputed to the head of the concern."

"All novelty involves some degree of risk. The vast majority of biological mutations are said to be harmful. When, as in human affairs, enormous numbers of random possibilities are eliminated by rational choice, the chances of harm rather than good resulting are reduced, not eliminated."

"The risks attendant upon change may have to be weighed against other risks arising from maintaining the same state of affairs."

"What is essential is that nothing should inhibit individuals from applying to others for information and advice, or for additional effort. This in turn depends on the ability to suppress differences of status and of technical prestige on occasions of working interaction, and on the absence of barriers to communication founded on functional preserves, privilege, or personal reserve."

"The effective organization of industrial resources... alters in important respects in conformity with changes in extrinsic factors."

"It follows that the more definition is given, the more omniscient the management must be, so that no functions are left whole or partly undischarged, no person is overburdened with undelegated responsibility, or left without the authority to do his job properly."

"We have endeavored to stress the appropriateness of each system to its own specific set of conditions. Equally, we desire to avoid the suggestion that either system is superior under all circumstances to the other. In particular, nothing in our experience justifies the assumption that mechanistic systems should be superseded by organic in conditions of stability. The beginning of administrative wisdom is the awareness that there is no one optimum type of management system."

"While numerous studies have dealt with the nature of organization-environment relations, the first major attempt to identify the types of organizational structure and managerial practice that are appropriate for different environmental conditions was conducted by Burns and Stalker, who studied twenty manufacturing firms in England and Scotland. Of these, fifteen were in the electronics industry, four were in research and development, and one was a major manufacturer. The particular environmental conditions examined were the rates of change in the scientific technology and the relevant product markets of the firms being studied."

"Tom Burns taught and practised sociology with vigour and imagination. Organisations, which he saw as collaborative systems, fascinated him and he was a committed researcher, whose comments on the research process remain of great value. Even as a senior professor he remained a hands-on interviewer in a range of contexts: including industry, the BBC and the NHS."

"The Management of Innovation (1961) [is]... the first major attempt to deal with the nature of organization-environment relations and identify the types of organizational structure and managerial practices that are appropriate for different environmental condition. Introduced the mechanistic-organic polarity (never a dichotomy) to the management lexicon."

"The use of the term institution has become widespread in the social sciences in recent years, reflecting the growth in institutional economics and the use of the institution concept in several other disciplines, including philosophy, sociology, politics, and geography. The term has a long history of usage in the social sciences, dating back at least to in his Scienza Nuova of 1725. However, even today, there is no unanimity in the definition of this concept. Furthermore, endless disputes over the definitions of key terms such as institution and organization have led some writers to give up matters of definition and to propose getting down somehow to practical matters instead. But it is not possible to carry out any empirical or theoretical analysis of how institutions or organizations work without having some adequate conception of what an institution or an organization is. This paper proposes that those that give up are acting in haste; potentially consensual definitions of these terms are possible, once we overcome a few obstacles and difficulties in the way. It is also important to avoid some biases in the study of institutions, where institutions and characteristics of a particular type are overgeneralized to the set"

"Market exchange requires a combination of both state and customary institutions. For any developed system of commodity exchange there must be a legal system inscribing and protecting rights to individual or corporate property. There must be a body of contract law with criteria for distinguishing between voluntary and involuntary transfers of goods and services, and courts to adjudicate in such matters. However, the evolution of law is not simply a matter of legislative construction; a great deal of law grows out of custom and precedent. Property and contract law are not exceptions. Consequently, the existence of property and exchange is tied up with a number of legal and other institutions, e.g. government, political system, and common societal values."

"We shall here define the market as a set of social institutions in which a large number of commodity exchanges of a specific type regularly take place, and to some extent are facilitated and structured by those institutions. Exchange as defined above, involves contractual agreement and the exchange of property rights, and the market consists in part of mechanisms to structure, organize and legitimate these activities. Markets, in short, are organized and institutionalized exchange. Stress is placed on those market institutions, which help to both regulate and establish a consensus over prices and, more generally, to communicate information regarding products, prices, quantities, potential buyers and potential sellers."

"Some institutions within the market are associated with exchange and contracts in an elemental sense (such as the legal system and the customs which govern the contract)... These would be present even if a formal market did not exist. Other institutions are specifically to do with the development of a market and the coordination of a large number of exchanges in an organized manner."

"It is because prices are stable, and are perceived by agents to be in equilibrium, that the task facing market institutions is less daunting in this respect. However, market institutions may still have many other functions, such as providing information regarding quality and the location of potential buyers and sellers, and regulating both the product and the entrants to the market. In fact, a crucial function may be more subtle; by ordering trade under the aegis of some institution, the price and quality of the product may be legitimized at its given level. There is a kind of stamp of institutional approval which may contribute in a powerful manner to the emergence of price norms….."

"The nature of the firm is not simply a minimizer of transaction costs, but a kind of protective enclave from the potentially volatile and sometimes destructive, ravaging speculation of a competitive market. In the market the rational calculus depends upon the fragile price conven- tion which can often depend on ‘whim or sentiment or chance’. Habits and traditions within the firm are necessarily more enduring because they embody skills and information which cannot always or easily be codified or made subject to a rational calculus. what the tlrm achieves is an institutionalization of these rules and routines within a durable organizational structure. In consequence they are given some degree of permanence and guarded to some extent from the mood waves of speculation in the market."

"The firm as a relatively durable organizational structure is able to deal with the lack of knowledge about the future fruits of research and development and innovation. Its relative internal stability means that it can carry unquantifiable risks which would be eschewed in the volatility of the market. In particular large firms are able to set up and sustain R&D departments with their own funds. It is widely recognized that atomized, small-scale private enterprise is not well able to make such long-term commitments."

"Industry shares a need common to every social enterprise from church to guild, municipality to empire, war to university."

"MAJOR URWICK and Dr. Metcalf have rendered a conspicuous service by editing this collection of Mary Follett’s lectures on business management. They contain teaching which was of importance when the lectures were delivered, and which many people felt should be preserved in a collated form and given a wider public. The circumstances of today have increased that importance. Many people are being called upon to fill new administrative posts, and these lectures teach the principles which should underly all administrative method."

"Mary Follett devoted a lifetime to searching for the true principles of organization which would ensure a stable foundation for the steady, ordered progress of human well-being. That her search was not in vain will be evident to all who read the lectures. Her teaching is not theoretical, but is based on a close study of the practice of a large number of business undertakings. She chose this field of enquiry to supplement her work on local and national government because she realized that the principles which should determine organization are identical, no matter what the purpose which that organization is designed to serve."

"In December, 1915, I took the further step of appointing Mr. B. Seebohm Rowntree Director of the Welfare Section of the Ministry [of Munitions], which I invited him to organise. Mr. Rowntree is well known, not only as a great employer of labour, but as one of the foremost and most successful pioneers in the development of improved conditions in his works. I should like to pay tribute here to the skill, energy, sympathy, and address with which he organised this new department. The work he did helped to transform the conditions for munition labour during the War, and has left a permanent mark upon conditions in our industries."

"Governance and leadership are the yin and the yang of successful organisations. If you have leadership without governance you risk tyranny, fraud and personal fiefdoms. If you have governance without leadership you risk atrophy, bureaucracy and indifference."

"The company is a living system. Employees are its lifeblood. Strategy is the brain and measurement and communication the central nervous system. Culture is the DNA. Leadership and continued entrepreneurial energy are its soul and spirit. Governance and accountability are its rhythms and disciplines, like exercise, a means of keeping this living organism fit and lean. Leadership gives a company energy. Governance assures its honesty.**"