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Hidden Value: How Great Companies Achieve Extraordinary Results with Ordinary People, by Charles A. O'Reilly, Jeffrey Pfeffer
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Discover how the best companies win not by acquiring the right people - but by building the right organization. The 'war for talent' is one battle every company believes it should be waging. But while competitors are busy chasing after the same 'hot' individuals, smart companies are doing something infinitely more useful and far more difficult to copy - they're building organizations that make it possible for ordinary people at every desk and cubicle in their companies to perform as if they were stars. Blowing up the prevailing wisdom that companies must chase and acquire top talent in order to remain successful, "Hidden Value" argues instead that the source of sustained competitive advantage already exists within every organization. O'Reilly and Pfeffer, leading experts on organizational behavior and human resources, argue that how a firm creates and uses talent is far more important than how the firm attracts talent. The authors provide vivid, detailed case studies of several organizations in widely disparate industries - including Southwest Airlines, Cisco Systems, The Men's Wearhouse, and NUMMI - to illustrate how long-term success comes from value-driven, interrelated systems that align good people management with corporate strategy. In a refreshing break from management tomes that force-feed superficial frameworks and trite 'rules', the authors instead allow the company stories to take center stage. They guide readers in discovering for themselves how seven different firms maximize talent, why one firm hasn't fully released the hidden value in its work force, and, most importantly, how the winning companies have made it tough for competitors to imitate them. Collectively, the stories reveal a common path to success that places values before strategy, emphasizes implementation over planning, and focuses on getting the best out of all employees, not just individual stars. The authors also explore concerns or questions managers might have about how each company's experience parallels or conflicts with their own. Providing a rare opportunity for managers to actively participate in an invaluable learning process, "Hidden Value" offers a customizable template for building high-performance, people-centered organizations.
- Sales Rank: #138627 in Books
- Published on: 2000-08
- Original language: English
- Number of items: 1
- Dimensions: 9.00" h x 6.25" w x .75" l, 1.42 pounds
- Binding: Hardcover
- 272 pages
From Publishers Weekly
In today's heated job market, companies must look within to develop and nurture talented employees, say O'Reilly and Pfeffer, both professors at Stanford Business School. They offer a detailed look at several companiesAamong them, Cisco, Men's Warehouse and PSS World MedicalAthat are profitable in competitive industries and that have successfully retained and promoted their staffs. Following a brief company history, the authors present a straightforward discussion of each company's culture and policies, in some cases including quotations from its executives. Occasionally, the secrets of a company's success are obvious: Southwest Airlines has carefully chosen a niche market; it puts high value on customer service and its employees feel as if their daily work will contribute to the future of the company. Certainly, CEO Herb Kelleher is part of the winning formula, but Southwest's business is run differently than other airlines. Its employees can work at different jobs and financial data about the company's performance as well as its competitors is shared regularly with staffers. Similarly, PSS Medical values its employees and works very hard at both recruiting and training people who will fit in at the company. With its emphasis on detailed anecdotes, this unusually engaging management book proves that concentrating on "soft issues" like employee values can give a company the competitive edge. (Sept.)
Copyright 2000 Reed Business Information, Inc.
From Booklist
Stressing the need to attract and retain the best people has become a mantra for corporate executives and human-resource departments. O'Reilly and Pfeffer warn, though, that too much effort is spent on attracting star performers and too little on fostering the creativity, drive, and ambition of current employees. Both are Stanford University business professors, and both have written popular management books. O'Reilly is coauthor of Winning through Innovation (1997); Pfeffer's titles include The Knowing-Doing Gap (1999). A common theme running through these earlier books and this new joint effort is that corporate strategy, values, culture, policies, procedures, and management practices all must be in alignment for companies to take advantage of the emotional and intellectual resources of the people that work for them. O'Reilly and Pfeffer let the stories of eight companies like Cisco Systems, Southwest Airlines, and the Men's Wearhouse "take center stage" to illustrate how internal talent can be maximized. The authors also suggest reasons why competitors of these companies have not been able to replicate their success stories. David Rouse
Copyright © American Library Association. All rights reserved
Review
" . . . there are valuable ideas here for managers looking to learn how best to compete in today's competitive labor market."
-- Business 2.0 Magazine, September 2000
"...The case-study method reigns in these pages, and it's put to good use." -- Fortune, October 2000
"Anyone-everyone-who leads, manages or consults should grab this book . . . and commit the lessons to heart." -- BusinessThinkers.com, August 2000
"Outside the box thinking? Yes. Difficult to implement in your own company? Without a doubt. Buy the book? Absolutely." -- HR Magazine, December 2000
"The attractiveness of the book is in its appeal to common-sense management." -- People Management, January 2001
"This well-written book should be a bible on the nightstand of every budding CEO and required reading for all M.B.A. candidates." -- Continental Airline Magazine
Most helpful customer reviews
17 of 17 people found the following review helpful.
Detailed case descriptions of high performing companies
By Coert Visser
This book tells the story of eight extremely successful companies that manage to bring out the best in their people. The stories are detailed descriptions of the company's backgrounds, strategies, systems and management practices. The stories are also larded with quotes from the company's CEO's, HR managers and employees. Following this approach the authors provide the readers the opportunity to form their own hypotheses about the companies' successes. But the authors also present their interpretations of the case studies.
What these studies show is how these high performing companies have achieved their success by aligning their values, strategies and people. This is something which is easy to understand but hard to do. It requires consistent articulation and implementation of the values and vision and a relentless attention to detail in ensuring that all policies and practices support the company's values. In order to be able to show this kind of consistency a real belief and commitment are needed and a willingness to persevere.
This book shows how high performing companies consciously turn a lot of the conventional management wisdom upside down. For instance:
1. Contrary to what many people now think, recruiting, selecting and retaining unique talent is NOT the prime source of competitive advantage. Although these activities are important, the examples of these extraordinary companies show that it is much more important to build a culture and work system that enables all people to use their talents and develop their talents. A byproduct of this will be that your company will also be better at attracting and retaining people.
2. Values first instead of strategies. The conventional view puts competitive strategy on top and derives from that what structure is needed, what competencies and behaviors are needed and so on. The companies described here work differently. Although they do have competitive strategies these are secondary to their set of guiding values and to the alignment of these values with their management practices. In other words: they have a values-based view of strategy.
3. Respectful and trusting way of dealing with people. Many companies monitor, check and try to control employee behavior. The hidden value companies work differently. In the spirit of Douglas McGregor's book The Human Side of Enterprise, they seem to understand that if you begin by designing systems to protect against the small unmotivated minority, you end up alienating the motivated majority. So they put their people first by treating them respectfully, involving them and trusting them.
Lessons like the ones presented in this book can be found in several other books by for instance Jeffrey Pfeffer himself, David Maister and Jim Collins. What makes this book different and interesting to me is the presentation in the form of detailed case descriptions.
8 of 18 people found the following review helpful.
The "Value" of this book is certainly "Hidden" from me......
By A Customer
This book is merely a compilation of case studies. There are few -- if any -- check lists, tables, charts, bullet points, or step-by-step methodologies to help you implement the concepts within your own company or organization. In fact, THERE ARE ONLY 21 PAGES not dedicated exclusively to either a case study and/or an analysis of the various case studies presented within the book. Save your money and purchase "The HR Scorecard", "The Talent Solution", or "Aligning Pay and Results" instead. Very disappointing...
13 of 13 people found the following review helpful.
Acorns, Oak Trees, and Common Sense
By Robert Morris
One of the greatest challenges facing organizations today is attracting and then keeping "the best and the brightest" people they can. Then, there is another great challenge to develop their talents and skills. Here is one of the best books I have read thus far which addresses the second challenge directly...and indirectly, addresses the first challenge as well (pun intended). O'Reilly and Pfeffer organize their material within a series of chapters, each of which (presented as a case history) focuses on eight exemplary companies (e.g. Cisco Systems, The Men's Wearhouse, and Southwest Airlines). The authors utilize a basic format (introduction, background, values, philosophy and spirit, etc.) which enables their reader to draw relevant comparisons and contrasts. They also summarize key points at the end of each chapter.
After extensive involvement with several of the exemplary companies, I can personally attest that organizations such as they which effectively develop the "hidden value" in their employees achieve at least three highly desirable (indeed imperative) objectives: they create a workplace environment in which people at all levels are much happier as well as much more productive; as a result, they have less attrition of their "best and brightest"; and finally, they are much more successful when competing for the "human capital" they need. To their credit, O'Reilly and Pfeffer do not promise to offer all manner of "secrets" to simplify the process of attracting and developing talent. Everything they suggest is common sense and much of it is obvious. The "hidden value" of their book is revealed only as you correlate all the ideas and experiences it provides within the context of your past and current circumstances.
If you agree that an organization should be value-driven and that values are driven by people, almost everything O'Reilly and Pfeffer share can be of substantial assistance. But I presume to conclude with three caveats. First, what they recommend is relatively simple to explain but will be immensely difficult (if not impossible) to implement without a firm commitment, sufficient time, and (yes) patience. Second, given the wealth of information provided, beware of massive adoption of what may have been effective elsewhere. Rather, select only what is most appropriate to your organization's needs when formulating a model. Finally, keep in mind that all of the eight exemplary companies have changed, some quite significantly, since the period during which this book was written. So must yours in months and years to come.
See all 12 customer reviews...
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