| Johnson and Bröms explain how Toyota and Scania achieve their legendary cost advantage through a revolutionary concept they call managing by means. Instead of being driven to meet preconceived accounting targets, the production systems of Toyota and Scania are governed by the three precepts that guide all living systems: self-organization, interdependence, and diversity.
Online articles by H. Thomas Johnson.
Review
The Book the Business World Has Been Waiting for
Since the day Amazon delivered my copy of Johnson and Broms' Profit Beyond Measure,I have taken delight with every page. This book is a wonderfully brilliant, masterful book that may be the serious business book of this decade in the way Senge's Fifth Discipline was for the 1990's. Insightful writers such as Margaret Wheatley and Danah Zohar have artfully open our eyes to the potential of viewing organizations as naturally evolving living systems. Notwithstanding their powerful insights, the actual application of these ideas left a lot to the imagination as to how they would actually be applied. Johnson and Broms, however, provide the substance and put the meat on the bones of the many complexity and chaos theory books available today.
Johnson and Broms tell us with precision and in entaintaining detail the stories of Toyota and Scania Truck and how, respectively, they have gone forty and sixty-sixty years without losing money - how, they manage by means, as part of living systems, not trying to orchestrate management by the results (a notion of believing that you can fix future events to happen within a management plan) as America's Big 3 auto companies have over the past century. Johnson and Broms take us inside of the Toyota and Scania plants and board rooms, helping us see how they produce only according to actual orders, how they design and set up assembly and modulated processes to avoid waste (not eliminate it, avoid it in the first place!), how they treat their employees, how they see customers and market and more.
Drawing from the principles articulated by Gregory Bateson, Johnson and Bohms help us see the unique milieu and overriding philosophy and work culture that is reflective of an open, living system, that relies on "balanced, cyclical patterns of continuous flow of the work for every person in the organization." Before reading this book, I only had a vague notions of how chaos, complexity, and new science theories applied to the emerging organizations of today. As a result of reading this book, however, I believe I now can grasp what it means, in real and substantive terms, for an organization to exist, evolve, and succeed as part of living system. This is a book for the new century. Every business can learn from this book and those that don' will perish while Toyota, Scania, and others of this fabric will thrive in our increasingly complex and interdependent world.
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