Leading With Purpose: The New Corporate Realities

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Summary: Many ideas for improving performance
Review: Corporations exist to produce goods and services that serve the needs of present and future customers. In the intensely competitive knowledge-based markets, change is shaking the very foundations of enterprises. Labor-cost advantages are giving way to capital and knowledge-based advantages; intellectual capital is replacing financial capital. This has caused some corporations to ask why they should exist, who they are, where they want to be, and how they plan to get there in order to work out a strategy for competitive performance that affects the whole organization including choice of leadership and relationships with employees. Ellsworth argues that serving customers' interests, followed closely by attending to needs of employees, will provide competitive advantage in the future. Companies seeking to maximize shareholder wealth may lose out to companies serving society at lower returns, or to companies competing by different rules or evaluating investments on different criteria. If a western company abandons a project with substandard returns it may lose long-term competitiveness in that market, but the alternative is, in effect, the conscious destruction of short-term shareholder value to prevent a deteriorating market position. The victors will be those companies that promote the greatest number of competitive strategies that focus resources, decisions and efforts on securing greater competitiveness.

Employers play an increasing importance in the lives of employees as people need to believe in something greater than themselves; corporations are having to take on responsibilities that religion had in the past by creating an environment that serves worthwhile purposes, supports creativity and accomplishment, and encourages personal growth. Such a climate generates commitment, individual initiative, and an ever-improving workforce that are the well springs of competitiveness. Competition, the dizzying pace of change, rapid technological innovation, and the increasing complexity of doing business, require a significant rethinking of traditional ways of managing employees. On the one hand a new contract has emerged which says: "There is no job security here. You will have a job as long as you find ways to add value. In return for your value added, the company will provide the experience and training needed to enhance your skills and, if necessary, to enable you to be employable elsewhere. You will receive compensation that reflects your contribution." On the hand, as knowledge becomes ever more critical to performance, the motivation, loyalty and stability of the workforce become increasingly important. Loyalty requires an environment where members think for themselves, candidly stick up for their ideas and challenge conventional wisdom; loyalty is inextricably intertwined with individual initiative, creativity, and openness in the decision-making process. True loyalty will be given only if the organization's purpose is deemed worthy of attachment and devotion.

After defining the problems of being competitive in the new environment, the author provides a winning ideology for the 21st century, provides guidelines for arriving at a mission of meaning and value and details the ground rules for leadership, for attracting and retaining high-caliber personnel and for motivating employees. It is difficult to imagine anyone who would not come away with ideas for improvement after reading this book.

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Summary: Threatening prospects for the US economy in the 21st century
Review: Dr. Ellsworth's book is most illuminating, and offers an informative explanation for the current economic dilemas of Japan, Korea, and Germany, and offers an insight to the possible decline of the U.S. economy by 2025. The book provides historical backgrounds on the aformentioned countries that determined our economic philosophy, and offers a most disturbing outlook for the U.S. economy should we not change our focus from the current ROA driven ends, to a more sustainable investment philosophy via our workforce, Research and Development, innovation, education, national savings rate, etc. The writing is on the wall, and if we don't pay attention and make the changes that we need to make individually and as a nation, the U.S. will fall from it's perch of being the leading economic nation to that of number two or three. The book is currently used in graduate studies, and I strongly recommend the book to anyone who cares.

Rating:
Summary: Excellent information on purpose, vision, & strategic intent
Review: If you are looking for a book with excellent content regarding purpose, vision, mission, and strategic intent then I think you will find this book is right on the mark. Chapter 3 is especially good with excellent definition, examples, and perspective. I have to back off of five stars, as the author's emphasis on customer versus shareholder focus becomes a monotonous rant after you heard the message the first fifty times. With the exception of that constant hum, I found the book very readable with lots of pertinent and important information on the subjects of leadership and purpose.

Rating:
Summary: Excellent information on purpose, vision, & strategic intent
Review: If you are looking for a book with excellent content regarding purpose, vision, mission, and strategic intent then I think you will find this book is right on the mark. Chapter 3 is especially good with excellent definition, examples, and perspective. I have to back off of five stars, as the author's emphasis on customer versus shareholder focus becomes a monotonous rant after you heard the message the first fifty times. With the exception of that constant hum, I found the book very readable with lots of pertinent and important information on the subjects of leadership and purpose.