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Profit sharing and profitability: How profit sharing promotes business success
Long Range Planning, Vol. 21, No. 6, pp. 105 to 108, 1988 Printed in Great Britain
00246301/88 $3.00 + .OO Pergamon Press plc
105
Book Reviews Edited by Bruce Lloyd
Review
Briefs
The following notes on books received are not reviews. They are mainly brief sentence descriptions of each book to enlighten the reader on its apparent intention. ‘The expectation is that more books can be described to readers than has proved possible by publishing only critical reviews. The descriptive information should enable interest in the books to be raised beyond that induced by listing the titles only. However, it is recognized that a critical review can be far more informative about a book than is attempted with Review Briefs and, accordingly, offers to review any books are solicited. Having been described in Review Briefs, a review should critically examine the contents ofa publication as an assessment ofwhether its stated intentions have been met and whether the way it achieves these intentions is attractive to the reader. It is expected that each review will require 100@1500 words and will be fully attributed. The reviewer keeps the book but Long Range Planning makes no payment.
‘What Britain’s top industrialists think about quality’, where they found that two-thirds of company top executives thought it was essential for a company to have a clearly defined strategy for achieving quality, even though 44 per cent said they had no one whose specific responsibility was guiding the company’s policy with regard to quality. The authors provide case studies from ICI, Milliken, Johnson Matthey and ICL, all of whom are engaged in implementing such an approach to quality. Senior executives of each company talk of their experiences to date: the advantages, the savings to be made, the hidden costs of additional training, the pitfalls, the improved morale, and ultimately how high quality standards might make the difference between commercial success and failure. It is the edited transcript of the proceedings of a conference held by the Confederation of British Industry early in 1988. The emphasis of the conference was on quality assurance not quality control: if the product is faulty, redesign the production process rather than just weed out the inferior product; on the tremendous effect upon company morale that a ‘zero defects’ company culture can have; that such a policy can only be implemented if the top management, particularly the Chief Executive, is totally committed to the goal, and that the theory and practice is equally relevant to service industries, even to internal customers.
As an alternative, it may be apparent that either a single ‘milestone’ class publication or several books on a single topic could constitute a wider perspective Essay Review. This would be expected to comprise an article of some 3000-4000 words and would have a written introduction by the Review Editor. The Journal would make its usual article contribution payments to the author of an Essay Review. Readers interested to review any book in Review Briefs should be prepared to offer a copy deadline some 3 months ahead which can be relied on in planning the Journal. As a matter of readership policy, reviewer preference will be given to practising managers, or planners. Your interest should be expressed as a specific request to review a book from Review Briefs, preferably giving some intimation of why you think your
review
would
be of interest
B. LLOYD, Book Review London NW6 3QA, U.K.
to readers,
Editor,
addressed
48 Aberdare
to:
Goingfor Growth: A Guide to Corporate Strategy, MICHAEL K. LAWSON, Kogan Page (1987), 176 pp., Al4.95 (hardback). (1611) Determining a goal is a prerequisite of any corporate plan. To achieve this goal, the planning and implementation of strategy are of vital importance, not only in achieving the business objective, but also in controlling and directing business activities. This book explores the demands of taking corporate planning to the smaller company. The author provides a wide range of practical information on all areas of corporate planning, including: Target Setting, Diversification, Organisational Structure, Marketing, Using Professional Advisers and Financing.
Gardens,
Zero Defects: A New British Quality Standard, Books Limited/CBI (1988), 91 pp., L46.95.
Rooster (1610)
This publication includes the findings of the MORI
research
Pro@ Sharing and Profitability: How Profit Sharing Promotes Business Success, D. WALLACE BELL and CHARLES G. HANSON; (1612) Kogan Page, 124 pp., Al7.95 (hardback). Are profit sharing firms any more successful than their nonprofit sharing competitors? Is there a correlation between
106
Long Range Planning Vol. 21
December
1988
profit sharing and profitability? Based on extensive research comparing the economic performance of 113 quoted profit sharing companies with that of 301 non-profit sharers, the authors give a convincing answer. Using nine standard financial ratios measuring profitability, growth and investor returns, they show that between 1979 and 1985 the profit sharers out-performed the non-profit sharers by a significant margin on every ratio. The authors suggest that the extension of profit sharing could make a significant contribution to the economic growth of the U.K. and elsewhere.
exploring for and producing oil; lack of appreciation on the part of foreign oil companies of the scientific and technological resources already available in China to support offshore oil exploration and development; the absence of a strategy on the part of CNOOC and the foreign companies to guide the role that foreign companies should play in the overall development of China’s technological and managerial capacity; as well as lack of detailed understanding, on the part of CNOOC, of the unique characteristics of offshore oil technology and international practice in the industry.
World Index of Economic Forecasts, Ed. ROBERT FILDES (1988), (1613) 578 pp., A85.00 (hardback).
The Cultural Science of Man: a New Synthesis, BERNICE COHEN, Codek Publications, 2 Powys Lane, Southgate, London N14 7JG (1988), 1144 pp. total, E59.85 (hardback), A32.85 (1616) (paperback).
This third edition of the most comprehensive work of reference for business forecasters and government planners offers complete and international coverage of macroeconomic forecasting services and surveys. Details on 328 organizations -in 165 countries-are included. The sections of this volume are structured to include profiles of macroeconomic and specialist forecasters, surveys on business activities, investment plans and consumer purchasing, and official government plans for social and economic development for 93 countries. In his introduction Robert Fildes describes how forecasts are produced and their use and value, demonstrating how they may be most effectively incorporated into business planning. Recent developments in the forecasting scene are incorporated into the volume, particularly those related to the growth of specialist forecasts of exchange rates, matching the expansion of interest in commodity markets in the 1980s.
Selling to Win, RICHARD DENNY (1988), 192 pp., A4.95. (1614) In his book Richard Denny concentrates on the fact that business is conducted between people-not buildings, banks or companies-and it is the skills of personal development and self-motivation which he teaches. It covers such basic techniques as planning to win, time management, the rules of selling, finding the business, getting the appointment, closing the sale, presentation and negotiation. The author identifies, above all, the skill of motivation which provides the vital ingredient to self-confidence and success.
Technology Transfer to the Chinese O$rhore Oil Industry, GEOFFREY OLDHAM, ALYSON WARHURST, LAO YUAN YI and ZHANG XIAOBIN, SPRU University of Sussex (1988), 69 pp., (1615) L9.00. Based on the work of a joint Chinese-U.K. research team, this study examines the reasons for the difficulties experienced in the case of the offshore industry. The main issues identified were: ambiguity in the contract terms; the combined effect of constraining factors such as differences in language, manageand ment styles, educational and cultural backgrounds technology levels; lack of appreciation on the part of both foreign companies and the Chinese National Offshore Oil Corporation (CNOOC) of the potential conflict between long-term aims and requirements for training and technology transfer, and the short-term need for operational efficiency in
This series of three volumes builds upon the need to set the study of the humanities firmly within the natural sciences, by emphasizing that man is the only culture-driven culturedominated species on Earth today. They are complicated, wordy volumes: First, The Seamless Web attempts to increase our self-awareness of the human family; Secondly, The Origin of Civilisation, explores the dynamics of cultural change; Thirdly, GlobalPerspectives, presents a new total culture system in the modern world. It is difficult to argue that the issues raised in these volumes are of direct relevance to business today. However, it is possible that they contain ideas that will influence the way we see the world in the next century. A massive research effort but not easy to read or digest.
The Executive Guide to Strategic Planning, PATRICKJ. BELOW, GEORGE L. MORRISEY and BETTY L. ACOMB, Jossey-Bass (1617) (1987), 136 pp., Al8.95 (softback). This book offers CEOs and senior managers a comprehensive, straightforward and practical approach to strategic planning. It explains in readable detail how to formulate strategic plans that will develop the company’s strengths, be responsive to changing business conditions, and to chart a productive and profitable company future. It is designed as a complete guide for general managers and requires no formal planning experience. The book details how to: set up a planning team, develop team goals, and define the role each member will play; develop a mission statement that will clarify the organization’s purpose, philosophy and future direction; gather information to determine critical areas where change is needed; formulate an overall strategy statement; select long-term objectives that will fulfill the organization’s mission and can be adapted to changing conditions; prepare financial projections that are viable and supportive of other elements of the strategic plan; evaluate a plan’s effectiveness. There are numerous checklists, work sheets, sample statements and projections. An invaluable introduction to the subject of Strategic Planning.
The Telecommuters, 238 pp., A19.95.
FRANCIS KINSMAN, John
Wiley
(1987), (1618)
Will faster electronic communications, and smarter, more ‘user friendly’ information systems, actually end the need to work for crowded, over-centralized businesses in impersonal
00246301/88 $3.00 + .OO Pergamon Press plc
105
Book Reviews Edited by Bruce Lloyd
Review
Briefs
The following notes on books received are not reviews. They are mainly brief sentence descriptions of each book to enlighten the reader on its apparent intention. ‘The expectation is that more books can be described to readers than has proved possible by publishing only critical reviews. The descriptive information should enable interest in the books to be raised beyond that induced by listing the titles only. However, it is recognized that a critical review can be far more informative about a book than is attempted with Review Briefs and, accordingly, offers to review any books are solicited. Having been described in Review Briefs, a review should critically examine the contents ofa publication as an assessment ofwhether its stated intentions have been met and whether the way it achieves these intentions is attractive to the reader. It is expected that each review will require 100@1500 words and will be fully attributed. The reviewer keeps the book but Long Range Planning makes no payment.
‘What Britain’s top industrialists think about quality’, where they found that two-thirds of company top executives thought it was essential for a company to have a clearly defined strategy for achieving quality, even though 44 per cent said they had no one whose specific responsibility was guiding the company’s policy with regard to quality. The authors provide case studies from ICI, Milliken, Johnson Matthey and ICL, all of whom are engaged in implementing such an approach to quality. Senior executives of each company talk of their experiences to date: the advantages, the savings to be made, the hidden costs of additional training, the pitfalls, the improved morale, and ultimately how high quality standards might make the difference between commercial success and failure. It is the edited transcript of the proceedings of a conference held by the Confederation of British Industry early in 1988. The emphasis of the conference was on quality assurance not quality control: if the product is faulty, redesign the production process rather than just weed out the inferior product; on the tremendous effect upon company morale that a ‘zero defects’ company culture can have; that such a policy can only be implemented if the top management, particularly the Chief Executive, is totally committed to the goal, and that the theory and practice is equally relevant to service industries, even to internal customers.
As an alternative, it may be apparent that either a single ‘milestone’ class publication or several books on a single topic could constitute a wider perspective Essay Review. This would be expected to comprise an article of some 3000-4000 words and would have a written introduction by the Review Editor. The Journal would make its usual article contribution payments to the author of an Essay Review. Readers interested to review any book in Review Briefs should be prepared to offer a copy deadline some 3 months ahead which can be relied on in planning the Journal. As a matter of readership policy, reviewer preference will be given to practising managers, or planners. Your interest should be expressed as a specific request to review a book from Review Briefs, preferably giving some intimation of why you think your
review
would
be of interest
B. LLOYD, Book Review London NW6 3QA, U.K.
to readers,
Editor,
addressed
48 Aberdare
to:
Goingfor Growth: A Guide to Corporate Strategy, MICHAEL K. LAWSON, Kogan Page (1987), 176 pp., Al4.95 (hardback). (1611) Determining a goal is a prerequisite of any corporate plan. To achieve this goal, the planning and implementation of strategy are of vital importance, not only in achieving the business objective, but also in controlling and directing business activities. This book explores the demands of taking corporate planning to the smaller company. The author provides a wide range of practical information on all areas of corporate planning, including: Target Setting, Diversification, Organisational Structure, Marketing, Using Professional Advisers and Financing.
Gardens,
Zero Defects: A New British Quality Standard, Books Limited/CBI (1988), 91 pp., L46.95.
Rooster (1610)
This publication includes the findings of the MORI
research
Pro@ Sharing and Profitability: How Profit Sharing Promotes Business Success, D. WALLACE BELL and CHARLES G. HANSON; (1612) Kogan Page, 124 pp., Al7.95 (hardback). Are profit sharing firms any more successful than their nonprofit sharing competitors? Is there a correlation between
106
Long Range Planning Vol. 21
December
1988
profit sharing and profitability? Based on extensive research comparing the economic performance of 113 quoted profit sharing companies with that of 301 non-profit sharers, the authors give a convincing answer. Using nine standard financial ratios measuring profitability, growth and investor returns, they show that between 1979 and 1985 the profit sharers out-performed the non-profit sharers by a significant margin on every ratio. The authors suggest that the extension of profit sharing could make a significant contribution to the economic growth of the U.K. and elsewhere.
exploring for and producing oil; lack of appreciation on the part of foreign oil companies of the scientific and technological resources already available in China to support offshore oil exploration and development; the absence of a strategy on the part of CNOOC and the foreign companies to guide the role that foreign companies should play in the overall development of China’s technological and managerial capacity; as well as lack of detailed understanding, on the part of CNOOC, of the unique characteristics of offshore oil technology and international practice in the industry.
World Index of Economic Forecasts, Ed. ROBERT FILDES (1988), (1613) 578 pp., A85.00 (hardback).
The Cultural Science of Man: a New Synthesis, BERNICE COHEN, Codek Publications, 2 Powys Lane, Southgate, London N14 7JG (1988), 1144 pp. total, E59.85 (hardback), A32.85 (1616) (paperback).
This third edition of the most comprehensive work of reference for business forecasters and government planners offers complete and international coverage of macroeconomic forecasting services and surveys. Details on 328 organizations -in 165 countries-are included. The sections of this volume are structured to include profiles of macroeconomic and specialist forecasters, surveys on business activities, investment plans and consumer purchasing, and official government plans for social and economic development for 93 countries. In his introduction Robert Fildes describes how forecasts are produced and their use and value, demonstrating how they may be most effectively incorporated into business planning. Recent developments in the forecasting scene are incorporated into the volume, particularly those related to the growth of specialist forecasts of exchange rates, matching the expansion of interest in commodity markets in the 1980s.
Selling to Win, RICHARD DENNY (1988), 192 pp., A4.95. (1614) In his book Richard Denny concentrates on the fact that business is conducted between people-not buildings, banks or companies-and it is the skills of personal development and self-motivation which he teaches. It covers such basic techniques as planning to win, time management, the rules of selling, finding the business, getting the appointment, closing the sale, presentation and negotiation. The author identifies, above all, the skill of motivation which provides the vital ingredient to self-confidence and success.
Technology Transfer to the Chinese O$rhore Oil Industry, GEOFFREY OLDHAM, ALYSON WARHURST, LAO YUAN YI and ZHANG XIAOBIN, SPRU University of Sussex (1988), 69 pp., (1615) L9.00. Based on the work of a joint Chinese-U.K. research team, this study examines the reasons for the difficulties experienced in the case of the offshore industry. The main issues identified were: ambiguity in the contract terms; the combined effect of constraining factors such as differences in language, manageand ment styles, educational and cultural backgrounds technology levels; lack of appreciation on the part of both foreign companies and the Chinese National Offshore Oil Corporation (CNOOC) of the potential conflict between long-term aims and requirements for training and technology transfer, and the short-term need for operational efficiency in
This series of three volumes builds upon the need to set the study of the humanities firmly within the natural sciences, by emphasizing that man is the only culture-driven culturedominated species on Earth today. They are complicated, wordy volumes: First, The Seamless Web attempts to increase our self-awareness of the human family; Secondly, The Origin of Civilisation, explores the dynamics of cultural change; Thirdly, GlobalPerspectives, presents a new total culture system in the modern world. It is difficult to argue that the issues raised in these volumes are of direct relevance to business today. However, it is possible that they contain ideas that will influence the way we see the world in the next century. A massive research effort but not easy to read or digest.
The Executive Guide to Strategic Planning, PATRICKJ. BELOW, GEORGE L. MORRISEY and BETTY L. ACOMB, Jossey-Bass (1617) (1987), 136 pp., Al8.95 (softback). This book offers CEOs and senior managers a comprehensive, straightforward and practical approach to strategic planning. It explains in readable detail how to formulate strategic plans that will develop the company’s strengths, be responsive to changing business conditions, and to chart a productive and profitable company future. It is designed as a complete guide for general managers and requires no formal planning experience. The book details how to: set up a planning team, develop team goals, and define the role each member will play; develop a mission statement that will clarify the organization’s purpose, philosophy and future direction; gather information to determine critical areas where change is needed; formulate an overall strategy statement; select long-term objectives that will fulfill the organization’s mission and can be adapted to changing conditions; prepare financial projections that are viable and supportive of other elements of the strategic plan; evaluate a plan’s effectiveness. There are numerous checklists, work sheets, sample statements and projections. An invaluable introduction to the subject of Strategic Planning.
The Telecommuters, 238 pp., A19.95.
FRANCIS KINSMAN, John
Wiley
(1987), (1618)
Will faster electronic communications, and smarter, more ‘user friendly’ information systems, actually end the need to work for crowded, over-centralized businesses in impersonal