Business Theorists From England

"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”."

"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 : —"

"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 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."

"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.’"

"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."

"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."

"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."

"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."

"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."

"Information establishes a relation between things and agents."

"[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."

"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."

"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"

"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."

"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."

"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."

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

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

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

"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."

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