June 21, 2011

Cleaning out my garage this past weekend I ran across a box of old books that my mother had sent me a while back. They had belonged to my father, and she thought I might like to have them. I remember having given them a glance, but this time I took a closer look. Lo and behold, I found a little treasure.

Tucked behind a larger book in one corner was a tattered little book called The Folklore of Management, published in 1959 and written by a distinguished American industrialist Clarence B. Randall, former president of Inland Steel. Randall was a special advisor on Foreign Economic Policy under President Eisenhower, and wrote the book in his retirement.

At just 128 pages, I devoured it. It is fantastic: Honest, witty, invigorating, and brutal on management mumbo jumbo and business malpractices. But at the same time it restates and reaffirms the moral code of our modern free enterprise.

I immediately went on Amazon to see if it was available, so that I could in good conscience review it for you here. Luckily, it's been republished and you can find it here.

The book is a collection of 16 essays, each covering a different business "myth." I was struck by how, 52 years later, Randall's savvy insight is every bit as relevant as it must have been back in 1959. And I was struck by how this little tome fits so well into the emerging trend in publishing: Short, concise, provocative manifestos.

I'm going to depart from my usual template and give you an at-a-glance look at my favorite 10 the 16 myths.

The myth of communications

U.S. business has embarked on an orgy of communications with workers, stockholders, customers, and the general public. Infatuated with the sound of its own voice, it often forgets that fine words are futile unless they are backed by corporate performance.

The myth of the organization chart

If your company is run "by the book," if the job description is more important than the man, if organization charts take precedence over the realities of personal relationships, your company is in danger of succumbing to an all-too-common form of creeping paralysis.

The myth of the management committee

Who runs your company—the president or a bevy of committees? Are decisions made in time—or are they continually put off for "further study" by "the group?" Every business can profit from a well-run committee system, but keeping it within bounds is a critical test of management skill.

The myth of the production wizard

Perpetual motion, split-second decisions, and jet-propelled personality are his hallmarks. He can run any function of the business better than the man he hired to do the job—and he can't stop proving it. Sometimes he's just as good as he thinks he is. But his kind of management can cost a company its future.

The myth of the almighty dollar

Are we too tolerant of the top man who justifies a swollen salary with the magic word "incentive"? Top-heavy executive pay reflects a distorted view of human relations. Worse still, it can dangerously undermine public confidence in our system.

The myth of the magic numbers

To cash in on the businessman's present preoccupation with surveys and factual summaries, a rash of new service organizations has sprung up which will study anything for a fee. The vacillating executive turns to them eagerly.

The myth of the specialist

Unless the danger is seen in time, galloping specialization can bring any company to the brink of chaos. The remedy? Top managers with the breadth of vision only a liberal education can provide.

The myth of the cost cutter

When profits shrink and prospects for the coming months look dim, the cry goes up—"Slash overhead!" But that is just he moment when hasty action can do irreparable harm.

The myth of the magic expense account

The only relationship between seller and buyer that will endure is one which rests solidly upon mutual satisfaction and understanding. No such partnership can be induced by a shallow effusion of insincere friendship from a show-off who has been given a fat expense account.

The myth of the overworked executive

Pity the overworked executive! Behind his paperwork ramparts, he struggles bravely with a seemingly superhuman load of responsibilities. Burdened with impossible assignments, beset by constant emergencies, he never has a chance to get organized. Pity him—but recognize him for the dangerous liability he is.

I can't over-recommend this book. Whatever dated references exist, you'll quickly see that the insight behind them is still quite valid. Randall was way ahead of his time. Or maybe things just don't change nearly as much as we think they do. Either way, Randall actually made me wish I had worked for him.

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