Where does the Protestant work ethic come from? And how did America achieve such dominance in management for so long? "The Puritan Gift" traces the origins and the characteristics of American managerial culture which, in the course of three centuries, turned a group of small colonies into the greatest economic and political power on earth. It argues that the drive, energy and acceptance of innovation, competition, growth and social mobility, all of which lie at the root of America's management culture, have their origins in the discipline and ethos of America's first wave of European the Puritans.And, the authors warn, as Americans distance themselves from the core values which produced their business and economic successes during the nineteenth and twentieth centuries, they put their future prosperity and security at risk. This is an original exploration of the dramatic and far-reaching consequences of the Puritans' 'gift' to America - the ethos which produced the early success of America and what came to be known as the American dream.
Did puritanism gave rise to capitalism, or was it its offspring? If the question has puzzled historians of economics for decades at least, the authors, here, don't take side. They merely note that both are perfectly married to each others: the will to establish God's kingdom on Earth is an endeavour engaging a whole society which, in the long term, can serve collective interest (if you agree to capitalism as seen through the Invisible Hand...). More than a happy marriage, though, it's also a combo which, for them, made the economical success of the USA, a country that quickly surpassed Europe and other colonies (e.g. Australia). Why so? They pin it down to the pioneering mindset of its founders, that, they claim, has tickled down to a whole people. What do they mean?
They, of course, retell such successful history, from the arrival of the first colons in Jamestown to WWII, and from the Conquest of the West to the Industrial Revolution (rooted in England, but which truly took off in the USA and it's no coincidence...). They, above all, expose how a religious, puritan mindset birthed a radical way to approach and manage businesses and companies. This is what they call the Golden Age -managers having been promoted from within the workplace, where they had been working for years, and, so, not only insightfully knowing its internal mechanisms but, also, being fully acquainted with its employees with whom they identified. This model (or 'gift', to quote the title) will be so efficient and influential that it will be copied even abroad (e.g. Asia, and Japan especially, which benefited from American influence post-1945). Ironically, though, while such 'gift' was being copied elsewhere, in the USA themselves it was slowly being abandoned in favour of yet another model, which will be catastrophic and the cause of many issues including, according to the authors, the recent financial crisis of 2008. What replaced it?
This no less radical new model was nothing else but Taylorism, a scientific division of labour (which has absolutely nothing 'scientific' about it) that will impose itself and, in a few decades, contaminate even how corporate are being managed. And indeed, if it started by dividing to the extreme the production process, it ultimately ended by doing likewise with leadership. But why would it be bad?
The thing is, when applied to management it will make way for a new type of leaders, divided, and each limited to their own specialities. It's the end of the Golden Age, and the beginning of what they call the Cult of the Experts that is, people no longer extracted from companies themselves but manufactured in Colleges, having no inside knowledge of the enterprises they will lead yet entrusted with their management as soon as they get employed, and equipped with nothing else but mass produced degrees and MBA in businesses, management, and finances. Leadership, then, got completely fractioned in-between directors, committees, consultants, and other partners or what-not, multiplying themselves, and diluting by the same token a central authority to such a point that it's at times very difficult to even know who truly is in charge. This, of course, couldn't be without consequences, not least an increase in the taking of disastrous decisions (they cite the fate of General Motors, the managing of NASA, and the functioning of hospitals). But there is worse.
Since they have been educated in theorical frameworks (and have zero practical experience at lower echelons) we reached a point when companies' performances are being 'measured', depending on their value on a financial market. It's no longer about identifying with employees, then (with whom such new managers are no longer in touch with anyway) but about numbers, data, and statistics. It is, in other words, about satisfying those also more concerned about the financial market that is, share holders, using the system to make profits, more profits, and again more profits without bothering anymore about the common good (for wealth, it has to be said, clearly didn't tickled down as the proponents of such model would claim). How does that matter?
For the authors, it matters because such new leadership and economic model are a betrayal of the puritan spirit. Economics is no longer at the service of mankind, it's mankind who has become enslaved to economics, in a constant race that has gone completely mad. Here's the era, after all, of exploitive and opaque conglomerates, and when a Milton Friedman got awarded a Nobel Prize. The result, of course, could only have been disastrous.
Are we now facing a wall, though? According to the authors, not necessarily. The recent crisis had forced some big companies to re-evaluate how they are being managed, and some made a few attempts to getting back the 'gift' of times gone by. A short chapter is dedicated to them. Will the puritan gift, then, be reborn from its ashes?
Personally, I loved this book for striking of common sense all throughout. What happened to the common good indeed? And how on earth did we came to split leadership ad nauseam, let alone value share holders and abstract data above all else? In any case, it's a very insightful, relevant, and fascinating perspective. Capitalism has gone mad indeed.
This is a must read for anyone that is in business management, or interested in the history of business (including philosophy, management, and practices)for the last four centuries.
It is well written, thoroughly researched and informative.
The assumption of the book is given in the first sentence of the Prologue: "The Puritan Gift is a rare ability to create organizations that serve a useful purpose, and to manage them well."
Upon the the basis Christian/Puritan worldview, American industry was able to build business models that were a blessing to the world. As these assumptions about how businesses were to function evolved and were abandoned for the "Cult of the (so-called) Expert replaced them, American business declined in their effectiveness and profitability and usefulness to the world.
The four basic Puritan assumptions were: 1) A conviction that the purpose of life, however vaguely conceived, was to establish the Kingdom of Heaven on Earth; 2) An aptitude for the exercise of mechanical skills [is important]; 3) A moral outlook that subordinated the interests of the individual to the group; 4) An ability to assemble, galvanize and marshal financial, material and human resources to a single purpose and on a massive or lesser, scale.
The Puritan Gift is an excellent history and analysis of Christian thinking in the world of business management.
The authors have very interesting ideas about the decline of American business management. Much of their critique of MBA programs and other forms of "credentialism," metric-focused management, the dependence on self-styled experts, the loss of values other than meeting the bottom line, and other aspects of modern management rings true, as does their insistence that these problems are not unique to business but reflect broader sociological trends. Unfortunately, the book is not well edited, with poor organization and paragraph structure, unnecessary tangents, and surprising content gaps, all of which can make it difficult to follow the authors' train of thought. I'm hoping to see some of these ideas addressed by other authors.
One is a vague socio-cultural history book which expounds the values of the puritan settlers and endows upon them everything good which was later to come from the growth of the United States. This part of the book is absolute guff, conflating topics and coming up with blanket assertions (puritans made America, Puritans are all cooperative and perfectly adjusted, Puritans accept all others in the community) without any evidence. As to the virtues of the puritans it enormously flatters their society (without any reference to their witch burning, sexist, racist, exploitative and divisive failings) and attributes negative things to "others" in the US. It's borderline racist in it's language, it's definitely sexist and it's otherwise rubbish.
The second is a fascinating insight into the American business environment and business culture since the war of independence. This book is interesting, thought provoking, analytical but most importantly of all; dispassionate. I found it enormously helpful in understanding the American business culture but also fascinating in explaining the way in which American business culture has evolved to what it is today. It contains many indications and recommendations which a non-MBA educated individual will appreciate and challenges a number of widely held beliefs about the way business and our economy work today. It provides a fascinating critique, effectively from inside the tent, of what has led to the world economy evolving to the point which it has today. Useful for those with a social perspective in helping to understand what's happening, and for business people to understand what may be frustrating their longer term aims.
The first gets 1 star (I think this is written by one of the brothers) the second gets 5 stars. Therefore 3 is the average. Well worth reading though. Unfortunately the two books are effectively intertwined so there's no way of reading one without the other.
A very interesting analysis of the development of American management philosophy. Also an indictment of companies that will do anything to post short-term profits, even at the expense of long-term viability. One thing that detracts from this book is that the authors sometimes wade into topics that have little or nothing to do with management philosophy, e.g. global warming. But it is Boeing's Dreamliner that gives this book much credibility. The book came out in 2009 and this is what the authors wrote: "In 2005 and 2006, a former Great Engine company, Boeing, would sell 350 of its Dreamliner aircraft straight off the drawing board, with the intention of 'out-sourcing' the manufacture of 80 per cent of its structure and components to forty-three suppliers on three continents. We await the outcome with unease." In view of the multiple problems with the so-called Dreamliner, that is quite a prediction, even if it is only indirect.
Visione storica realmente affascinante. Si ha però l'impressione che con l'avvicinarsi ai giorni nostri l'analisi sia più strumentale e meno approfondita. Perfetto per demistificare la spocchia degli MBA. :-)
This book has more realistic insight about the roots and journey of american management theories and practices. It describes how it started (first establishments by settlers like Shakers, Quakers, Puritans ), how it rose to it's high potencial ( Railroads, DuPont, IBM, HP, GM ) and how it fell, it provides analysis how the establishement of business management studies (eg: MBA) , pseudo scientific theories or neo-Taylorism destroyed the rise - "hands-on", "can-do” management methodology by bringing in an "expert" of management who knows nothing or very little about the business itself, who as individual didn't grow together , from the bottom with the business. It addresses the issue how top managers started to associate themselves with shareholders and finance world but not with the actual workers. I found it also useful as it gives the references to other books about the management which are worth reading, specially written by William B Given. His book "Bottom-Up Management People Working Together" is very rear and astonishingly expensive but some libraries have it available. There is also all chapter dedicated to success story about the 3 wise man from America mission to Japan and how they introduced and implemented bottom-up management practices to Japan’s communications companies.
Certainly worth a read. A well written history of the American corporations since the days first settlers set foot on the new land. Gives context to better understand the ups and downs of the US economy, the different management schools of thought and their effect on corporations. Read where people like Sloan, Drucker, Deming, Taylor, Duran, Wren, Given, Sarasohn, Protzman and Polkinghorn among many others worked and what their ideas and contributions really were. Check what effect the American influence had on Japan and the appearance of Lean and TPS for example. Finally, see the 25 principles that every business today would do well to consider in their function.
This book gives a good history of Protestant reformation era to modern era business. It details the pitfalls of Taylorism and neo-Taylorism, with its over emphasis on specialized management jobs, with not enough big picture management. It is a book that takes a different angle on how companies should be run. It is not one of those trendy management books. For me, it was a breath of fresh air.
Read in the Chinese edition. Maybe because the translation is not quite proficient, which makes some sentences are not understandable. However, the whole idea that depicts the U.S. early immigration scenario by applying the Puritan spirituals is a fresh point to me.