Economic Value Management: Applications and Techniques

Winn in~ Beha vio r : What the Smartest. ~Iost Successful Compa nies Do Differentl y. Tell)' R. B3ron and David G. Pugh. 2003. Sew York: A~IACO~t. 352 pages. The paradigm shift that Terry Bacon and David Pugh investigate in this book deals with behavioral differentiation (81J). They contend that BD acts like a magnet that can attract or~I customers. BD is said to be a consistency of behavior throughout the organization tosuppori a clearly stated vision that personifies the organization's goals. They found that while it is often linked 10 customer service, the concept goes well beyond simply satisfying an individual's specific needs. The Ritz-Carlton Gold Standards, Southwest Airlines cfficiency, and The xten's Wearhouse all have commitments to five stakeholder groups: employees. customers, suppliers, communities. and shareholders. Examples and counter-examples ofthe effect of BD are given in the book. Over and over the authors provide material thai supports their concept that consistently doing the right thing brtngs results. Of course. finding the right thing to do requires a creative leadership that knows their market and the niche the:o. are seeking to fill . In the case of The ~Ien 's wearhouse. George Zimmer had a vision ofintegrating hisservant leadership values into the corporate culture. The result is that when a man walks into The ~Ieffs wearhouse he finds an organization ready 10 help him outfit himself in the best combination of clothing and accessories to meethis immediate needs. BD can be seen asthe reason for success in the life cycle ofall organizations. It iswhat nurtured them through the fledgling days oftheir infancy in the market. But a new product. an improved service. or a lower cost does not sustain any organization indefinitely. Abetter product. comparable service, and even lower costs are always possible in time. The authors haredistilleda series of lessons that they have derivedfrom their BDorganizational studies, which are illustrated in the form of tables in each chapter andsummarized in the book's fi nal chapter. The authors quoteGhandi. "We must become the change we want to see," 10 make their pointof continued renewal. They also stress that a strong commitment to employee training is essential to integrating the renewal into the organization's culture. And among other things. each employee must be empowered todo the right thing when the opportunity presents itseff. At times the authors tell readers more than the). need to~ about the characters in their success stories. The Ritz-Carlton, Southwest Airli~. and The ~len's U'earhouse stories hare been tokl 0\"Cl' and O\"C[ The authors' investigation does not reveal anything nea.. other than a new acronym that can be used to define their continued success. The value ofthe book is not the success stories but the insight that the concept of BIJ offers. This insight is a powerful corcept ihar explains 'A'hy' many organizations excel in a sea of competition. Their work gives credence to the importance of a consistent organ izational culture focused on an inspired vision. It Illustrates that commitment to the vision, not the rules of the trade, fosters success. Winning Bebaricr tells the stories of what the smartest, most successful companies do differently. It" development of the concept of HI) as the root causefor this offers another dimension oforganizational culture thaI. is ',\urthyofincesngation