Creative compartments: A design for future organisation

tinctly different organizations (giant Shell and biotechnology start-up Celltech) who can write well and has something to write about. In this book he puts forward a central idea for organizing in the twentyfirst century, based on his own experience, and surrounds it with references to and discussion of many aspects of theory and possibility. Fairtlough's theme is the creative compartment-close-knit group of up to a few hundred people working together. This number of people gives enough resources to tackle significant projects, w h i l s t retaining face-to-face communications. Each! compartment LIONELTITMAN The Civil Service College. has a clear boundary, a well-understo0d and shared common purpose and common Understanding. References Members support each other and engage in open 1. T. J. Peters and R. H. Waterman Jr., In Search of communications about personal as well as task Excellence, Harper and Row Inc., New York (1982). issues. 2. R. Townsend, Up the Organisation, Michael Joseph, This central idea is revealed remarkably quickly-London (1970). Fairtlough directs the reader to a succinct summary of 3. R. H. Waterman Jr., The Renewal Factor, Transworld his ideas in the first paragraph of the introduction in a Publishers, London (1988). fine display of confidence. Whilst t h e ideas are not 4. T. J. Peters and N. Austin, A Passion for Excellence, Random House, New York (1985). revolutionary in themselves, Fairtlough's suggestion 5. C. R. Hickman and M.A. Silva, Creating Excellence, Unwin, of the compartment as the basis for organization is well Hemel Hempstead (1985). worthy of consideration. 6. D. L. Bradford and A. R. Cohen, Managing or Excellence, The book falls into three parts, examining the John Wiley, New York (1984). creative compartment itself, then communications 7. R. M. Kanter, The Change Masters, Unwin Hayman, between compartments, and finally ways for existing London (1985). organizations to move towards compartments. The 8. T. Goss, R. Pascale and A. Athos, The reinvention roller first part is the most successful, with Fairtlough coaster, Harvard Business Review, November-December developing his theme with extensive reference to his (1993). own experience. There is a degree of systems thinking 9. C. Lloyd, The Royal Collection, Sinclair-Stevenson, London (1992). on display, with references to the virtuous circles of 10. Tastes Yucky, Sells like Hotcakes, Business Week, 18 May openness and trust, empowerment and commitment (1992). and the desirability and difficulty of starting and main11. J. Spence, Remembrance of Mings Past, The New York taining them. Review of Books, 23 J u ne (1994). The author's practical experience shines through 12. Europe's Most Respected Companies, Financial Times, 27 here, with a healthy dose of pragmatism alongside June (1994). thoughts of a better future. His remarks on the future 13. B. Brecht, Fragen eines Lesenden Arbeiters, Das Wort, 1 of hierarchy--for example 'If you are a~ the top, don't August, Moscow (1936). think you can abolish the old habits of hierarchy by 14. K. R. Popper, The Logic of Scientific Knowledge, giving an order to that effect... '--are particularly well Hutchinson, London (1968). put. He examines the effects of power and conflict in a similarly sensible way. The second section of the book looks at comCreative Compartments: A Design for Future Organ- munication between compartments. Fairtlough warns isation, GERARDFAIRTLOUGH,Adamantine Press (1994), of the dangers of the open 'clan' degenerating into a secretive 'fief'. He examines the possibility of some 240pp, £32.50 (hard), £14.95 (soft). members 'boundary-spanning' and spending much of Gerard Fairtlough is an example of a rare species-- their time interacting with other compartments and practising manager and leader with experience in dis- reporting back. These boundary spanning workers will

ing out, 'Yes, I agree, but where's the proof?.'. Those with faith will not need proof, of course. Others may agree that it is an unfair d e m a n d - - a f t e r all, as Popper pointed out, scientific 'laws' based on observed instances can never be justified by pure logic. 14 Management fads and techniques come and go. Too often, w h e n their day is over we throw out everything that was connected with the approach--the baby and the bath-water habit. It would be a pity if the same fate awaits the excellence concepts. This book may help to prevent this happening too quickly.

Long Range Planning Vol. 28

February 1995

have excellent interpersonal skills and ability to man- As a book concentrating on what to do rather than how age their own and others' mental models. The author to do it, it is possible that ultimately this work will be uses the idea of mental models in the same w a y as more of a contribution to the literature than to the Chris Argyris and Peter Senge, and there are traces of practice of organizing and leading. I hope that the next their influence throughout the book. generation of practising managers and leaders prove By comparison with the first, this section of the book me wrong. is slightly less successful. Fairtlough points out the dangers and pitfalls of compartments failing to com- MARK MCKERGOW Principal, Mark McKergow municate, and develops a theme of cooperation in a Associates. well-judged discussion of the work of Axelrod and the Prisoners' Dilemma. However, he does not maintain quite the same level of experience and pragmatism as earlier in the book, and starts to use case studies which Adding Value. Brands and Marketing in Food and don't have quite the same frisson of personal involveDrink, Edited by GEOFFREY JONES and NICHOLAS ment. Following the unsurprising conclusion that MORGAN, Routledge (1994). 349pp., £37.50 inter-compartment communication is vital, not much is forthcoming regarding how to actually get comI have often suggested to a marketing colleague, strugpartments communicating. gling to understand w h y some apparently unreThe final section examines ways in which existing markable product holds much firmer grip on a market organizations can move towards working as creative than he can achieve for his own, that he w o u l d need compartments. Fairtlough recommends skill develop- to be a student of history as well as of marketing to ment, especially in interpersonal and communication understand the strength of brands. I welcome a book skills, compartmentation of tasks, networking and cri- that starts from the same premise. Most marketeers, it t i q u e - a l l o w e d by change in legal status, emphasizing w o u l d seem, see life only in the future, when they the separation of the compartment from the parent will have engineered this change and that, so it is a organization. This part of the argument took me by useful lesson for them to study the past, to get a feel surprise, as it is the first time in the book that a legal for h o w it really can be done. boundary (as opposed to a simply organizational There is a wealth of material here, painstakingly boundary) is mentioned, opening up new angles on pulled out of the archives and carefully assembled to Fairtlough's thesis which are not subsequently show the events and actions that shaped some of our explored. best known brand names in food and drink. Equally, Once again, this section of the book is not in quite if not more important, is the context in which things the same league as the excellent first section. The case occurred. Along the way there are compelling insights studies are more anonymous, and one long section into some of the crucial questions about brands, such relates a fictitious example of a large retailing company as what is their function, what is the difference which compartmentalizes, although with the aid of between a product and a brand, and h o w are sucsome good fortune in terms of the people involved--a cessful brands created? touch of '... and with one bound, our hero was free'? Geoffrey Jones' introductory overview chapter sets However, as with the second section, Fairtlough's up the agenda and succinctly summarises the arguinsights are valuable and worth reading. ments of each contributor. His concluding remarks As a whole, the book is very well-written and pull together some of the key themes whilst delibpresented. There are good notes at the end of each erately leaving room for the reader's own conclusions chapter, giving sources and references, and a full index as to what is most important. As he says, there is and bibliography are provided. no single 'message' and some of the authors' views Overall, this is a fine and honest contribution to the conflict. So perhaps it is best left to each reader to literature. However, I wonder whether the same fate find the points that support their own position, not will befall this work as appears to have befallen pre- least to get the debate rolling. vious authors who reached some similar conclusions Chapters 2 to 5 aim to set out the main issues. Mira on the importance of interpersonal skills, com- Wilkins' opener on the history of, and reason for, munication, critique, and managing mental models. brands is an excellent piece, and provides a sound Book Reviews