- Email: [email protected]
The performance of management buy-outs in the longer term
121
Book Reviews Mapping and Measuring the lnformation Economy, IAN MILES and contributors, The British Library Research and Development Department (1990). 279 pp., A25.00. Alternative definitions of the information economy are reviewed and the main chapters go on to assess what official sources of statistics are available, how good the data are, and what limitations need to be taken into account. Aimed at information scientists and librarians, researchers in academia and in business, and to a wide range of policymakers’ and produced by a group of researchers at the Science Policy Research Unit. It is a subject with far-reaching management it is not easy to identify implications but, unfortunately, exactly what these are from this piece of research. A continual problem with many research based academic books.
perhaps, failures.
greater
emphasis
should
have
Based on a 6-year INSEAD analysis of practice at Philips, IBM, Shell, Olivetti, Matsushita, Digital Equipment, ICI, Volvo and others; it reports the lessons of their experience in managing major strategic and cultural change in intemationalizing their staff, and in building more innovative organizations. A critical and extremely difficult subject that needs to be ‘much more widely recognized by strategic planners.
Reinventing the Future: Global RUSHWORTH M. KIDDER, The Al6.25.
Goals for the 2lst Cenfury, MIT Press (1989), 194 pp.,
In April 1987, 35 individuals from 12 nations gathered at a conference organized by the Christian Science Monitor, The Johnson Foundation, and the University of Maryland. Full of good common-sense but more concerned with what partipants would like to happen than perceptive insights into what was likely to happen.
given
The Photo& Manager, MARION DEVINE (Ed), Unwin (1990), 192 pp., R18.00.
to the
Hyman
Includes 17 U.K. authors’ views on defining and developing managerial competency. A stimulating, readable, often contentious, overview of the best way to develop and use managerial profiles.
1992~Planning for the Food Industry, BUSINESS INTELLIGENCE, Butterworths $220.00. Human Resources Management in International Firms, Edited by PAUL EVANS, YVES Doz and ANDRE LAURENT, Macmillian (1990), 258 pp., ~25.00.
been
IBI INTERNATIONAL (1989), 379 pp.,
Summarizes the legislation proposed and adopted for the elimination of technical, physical and fiscal barriers to trade in the food and drink sector.
Positive Leadership: How to Build a Winning Team, MIKE PEGG, Lifeskills Publishing Group (1989), 150 pp., E12.95. Leaders develop a clear vision, get commitment from their people and guide their team to success. A practical, readable book for managers at all levels; particularly those involved in managing radical change. This whole subject is critical to the implementation of strategic planning, but it is rarely given the attention it deserves. It also needs to be emphasized that the difference between ‘good’ and ‘bad’ leaders is not just a matter of technique; it involves making difficult value judgements about the objectives/vision.
The Best is Yer to Come: A Workbook for the Middle Years, MAGGIE SMITH, Lifeskills Publishing Group (1989), 166 pp., 412.95.
Managing Technology for Competitive Advantage, BRIAN TWISS and MARK GOODRIDGE, Pitman (1989), 234 pp., A25.00.
The author recognizes that, while major life changes may be highly stressful, mid-life transition can be a positive and highly motivational part of our lives. Relevant to both individuals and organizations concerned with promoting early retirement.
Many companies which have invested heavily in new technology have been disappointed in the results. Why is this so? There are two main reasons: (a) The strategic implications have not been fully understood, and (b) The impact of technical change on the organization as a whole has been ignored. This book distills answers to these issues and presents them in a readable way for both general and technical managers; it needs to be widely read.
Lifeskills have also produced a basic open learning workbook, NOW (1989), A44.95, that usefully covers: Transitions; Communications; Assertiveness; Time Management; Manage Disappointment; Relationships; Benefits of Balance; Creative Problem Solving; Creative Decision Making.
International Hutchinson
Joint Ventures in Action, (1988). 242 pp., A25.00.
SUSAN GOLDENBERG,
Drawing on discussions with managers of scores of joint ventures in the U.S., Japan, China and Europe, the author attempts to explain the momentum behind corporate couplings and outlines a route to the initial decision, as well as the hazards of planning a venture and how to run it. Essential reading for anyone involved in this high risk business but,
The Performance of Management Buy-outs in the Longer Term, Warwick Business School Commissioned by Touche Ross Corporate Finance (1989). 27 pp. plus data pages, L50.00. An indepth analysis of the annual reports of 58 management buy-outs, which took place between 4 and 7 years ago, shows that the financial performance of MBOs is generally worse than their industry averages. This finding is a complete reversal of the better-than-industry performance by MBOs that exists in the medium term (up to 3 years)-established in an earlier Touche/Warwick survey and confirmed in this report. This
122
Long
Range
Planning
Vol.
23
August
study finds that MBOs engender the motivation to improve company financial performance up to about 3 years after the buy-out, but after this time a change of ownership structure is often needed to maintain or improve company performance. A subject that merits continual study.
Simulation-Gaming: On the Improvement of Competence in Dealing with Complexity, Uncertainty and Value Conjicts, Edited by JAN H. G. KLABBERS, WILLEM J. SCHEPER, CEES A. TH. TAKKENBERG and DAVID CROOKALL, Pcrgamon Press (1989), 368 pp., A35.95. This volume records the proceedings of the International Simulation and Gaming Association’s 19th. International Conference which took place at Utrecht University. The first section on complexity, uncertainty and conflict deals with theoretical and methodological issues and offers an introduction to the conference theme ‘On the improvement of Competence’. The other sections cover broad areas: organizational change, business simulation policy, exercise, methodology, learning environments, and special topics such as environmental planning, health care, diplomatic games and gambling. Designed for educationalists and trainers who use, or are interested in using, simulations and games to improve competence in uncertain situations.
Beyond the Casino Economy: Planning for the 199Os, NICHOLAS COSTELLO, JONATHAN MICHIE and SEUMAS MILNE, Verso (1989), 303 pp., A9.95. The authors argue they are producing a comprehensive critique of ‘post-Fordest’ economic theories, which postulates a move to smaller, decentralized companies, maintaining instead that the new technologies in fact necessitate large-scale companies with flexible capacity; and hence they feel the answer is a new move towards public ownership and planning. Although their hearts are in the right place, unfortunately the academic and political authors appear to have little knowledge of how innovation occurs and how it can be cffcctivcly managed. Another case for Government interfcncc is made by The Mcaniq (zf Socialism, MICHAEL LUNTLEY, Duckworth (1989). 206 pp., A14.95. The paradox of a period of rapid change is that it is even more difficult to know the r($t 2nswers.
Career Couples, SUZAN LEWIS and CARY L. COOPER, Unwin paperbacks (1989). 276 pp., A5.99. Compares the cxpericnces of two career families, based on interviews with over 300 couples. Plenty of sound scnsc but it is a pity there arc no figures analysing underlying trends. This is an important subject for both organizations and individuals which could have far-reaching consequences for society by the next century-if not before.
Morality and the Market: Corrsrrmer Pressure for Corporate Accountability, N. CRAIG SMITH, Routledge, Chapman and Hall (1990), 351 pp., E40.00. Professor Craig ethical purchase
Smith examines the theory and practice of behaviour, a crucial mechanism for ensuring
1990 social responsibility in business. He explains how and why consumers, often in conjunction with pressure groups, have used their purchasing power to influence corporate policies and practices. He argues the case for the social control of business, drawing on perspectives from marketing, economics, politics, sociology, and business policy. The approach considers practical aspects of ethical purchase behaviour, focusing on consumer boycotts as a specific form of this consumer behaviour, and explaining how boycotted businesses should respond. A subject of increasing concern to top management but the book is likely to be heavy going for most managers.
The New Tycoons: Becoming Seriously Rich at 40, JUDI BEVAN and JOHN JAY, Simon and Schuster (1989), 244 pp., A15.95. Some examples of U.K. high-flyers in the 1980s: Body Shop, Sock Shop, Williams Holdings, Amstrad, Carlton Communications, Coloroll, Ratners, Next, WPP and London & Edinburgh Trust. There is much to be learned from studies of this kind, although they can quickly become dated if they are too superfical.
The David Solution, VALERIE STEWART, Gower ~22.50.
(1990), 164 pp.,
A small, readable, book to help people demolish the blockages that prevent people from consistently delivering peak performance. It shows how to: bust bureaucracy; avoid paralysis by analysis; break down the barriers oforganizational empires; empower junior managers; put customers first and create an enabling culture. Always easier to say than do, but this is likely to be one of the major challenges over the years ahead.
Inrzovatiorz: A Battleplarl_for the (1990), 179 pp., L65.00.
~~%~,JoHN
W. CARSON, Gower
This is a practical manual for the management of innovation systems in industry. It contains over 20 proven systems which have been developed to help practising managers overcome the problems that exist in creating and developing profitable new business. The principal conclusions of the book are that the management of innovation needs a set of organizational structures and systems which are significantly different from those used in the management of existing business. It also rcquircs the application of a more creative, less judgemental psychology, if original and creative ideas are to be developed successfully. The difficulty in developing new business is continually underestimated, and the conflict between the approaches in core business and new ventures is never easy to manage.
Sotrrrrs qf.%ropc~arr Economic arzd Business Informatiorl, UNIVERSITY OF WARWICK BUSINESS INFORMATIONSERVICE, Gower (1990), 239 pp., A65.00. The aim of this directory is to provide a listing of the major sources of economic and statistical information by country, covering both Eastern and Western Europe. The fifth edition has been completely revised and updated, and it includes 6000 entries. Ideal for an On-lint Data Base or Disc option next time?
Book Reviews Mapping and Measuring the lnformation Economy, IAN MILES and contributors, The British Library Research and Development Department (1990). 279 pp., A25.00. Alternative definitions of the information economy are reviewed and the main chapters go on to assess what official sources of statistics are available, how good the data are, and what limitations need to be taken into account. Aimed at information scientists and librarians, researchers in academia and in business, and to a wide range of policymakers’ and produced by a group of researchers at the Science Policy Research Unit. It is a subject with far-reaching management it is not easy to identify implications but, unfortunately, exactly what these are from this piece of research. A continual problem with many research based academic books.
perhaps, failures.
greater
emphasis
should
have
Based on a 6-year INSEAD analysis of practice at Philips, IBM, Shell, Olivetti, Matsushita, Digital Equipment, ICI, Volvo and others; it reports the lessons of their experience in managing major strategic and cultural change in intemationalizing their staff, and in building more innovative organizations. A critical and extremely difficult subject that needs to be ‘much more widely recognized by strategic planners.
Reinventing the Future: Global RUSHWORTH M. KIDDER, The Al6.25.
Goals for the 2lst Cenfury, MIT Press (1989), 194 pp.,
In April 1987, 35 individuals from 12 nations gathered at a conference organized by the Christian Science Monitor, The Johnson Foundation, and the University of Maryland. Full of good common-sense but more concerned with what partipants would like to happen than perceptive insights into what was likely to happen.
given
The Photo& Manager, MARION DEVINE (Ed), Unwin (1990), 192 pp., R18.00.
to the
Hyman
Includes 17 U.K. authors’ views on defining and developing managerial competency. A stimulating, readable, often contentious, overview of the best way to develop and use managerial profiles.
1992~Planning for the Food Industry, BUSINESS INTELLIGENCE, Butterworths $220.00. Human Resources Management in International Firms, Edited by PAUL EVANS, YVES Doz and ANDRE LAURENT, Macmillian (1990), 258 pp., ~25.00.
been
IBI INTERNATIONAL (1989), 379 pp.,
Summarizes the legislation proposed and adopted for the elimination of technical, physical and fiscal barriers to trade in the food and drink sector.
Positive Leadership: How to Build a Winning Team, MIKE PEGG, Lifeskills Publishing Group (1989), 150 pp., E12.95. Leaders develop a clear vision, get commitment from their people and guide their team to success. A practical, readable book for managers at all levels; particularly those involved in managing radical change. This whole subject is critical to the implementation of strategic planning, but it is rarely given the attention it deserves. It also needs to be emphasized that the difference between ‘good’ and ‘bad’ leaders is not just a matter of technique; it involves making difficult value judgements about the objectives/vision.
The Best is Yer to Come: A Workbook for the Middle Years, MAGGIE SMITH, Lifeskills Publishing Group (1989), 166 pp., 412.95.
Managing Technology for Competitive Advantage, BRIAN TWISS and MARK GOODRIDGE, Pitman (1989), 234 pp., A25.00.
The author recognizes that, while major life changes may be highly stressful, mid-life transition can be a positive and highly motivational part of our lives. Relevant to both individuals and organizations concerned with promoting early retirement.
Many companies which have invested heavily in new technology have been disappointed in the results. Why is this so? There are two main reasons: (a) The strategic implications have not been fully understood, and (b) The impact of technical change on the organization as a whole has been ignored. This book distills answers to these issues and presents them in a readable way for both general and technical managers; it needs to be widely read.
Lifeskills have also produced a basic open learning workbook, NOW (1989), A44.95, that usefully covers: Transitions; Communications; Assertiveness; Time Management; Manage Disappointment; Relationships; Benefits of Balance; Creative Problem Solving; Creative Decision Making.
International Hutchinson
Joint Ventures in Action, (1988). 242 pp., A25.00.
SUSAN GOLDENBERG,
Drawing on discussions with managers of scores of joint ventures in the U.S., Japan, China and Europe, the author attempts to explain the momentum behind corporate couplings and outlines a route to the initial decision, as well as the hazards of planning a venture and how to run it. Essential reading for anyone involved in this high risk business but,
The Performance of Management Buy-outs in the Longer Term, Warwick Business School Commissioned by Touche Ross Corporate Finance (1989). 27 pp. plus data pages, L50.00. An indepth analysis of the annual reports of 58 management buy-outs, which took place between 4 and 7 years ago, shows that the financial performance of MBOs is generally worse than their industry averages. This finding is a complete reversal of the better-than-industry performance by MBOs that exists in the medium term (up to 3 years)-established in an earlier Touche/Warwick survey and confirmed in this report. This
122
Long
Range
Planning
Vol.
23
August
study finds that MBOs engender the motivation to improve company financial performance up to about 3 years after the buy-out, but after this time a change of ownership structure is often needed to maintain or improve company performance. A subject that merits continual study.
Simulation-Gaming: On the Improvement of Competence in Dealing with Complexity, Uncertainty and Value Conjicts, Edited by JAN H. G. KLABBERS, WILLEM J. SCHEPER, CEES A. TH. TAKKENBERG and DAVID CROOKALL, Pcrgamon Press (1989), 368 pp., A35.95. This volume records the proceedings of the International Simulation and Gaming Association’s 19th. International Conference which took place at Utrecht University. The first section on complexity, uncertainty and conflict deals with theoretical and methodological issues and offers an introduction to the conference theme ‘On the improvement of Competence’. The other sections cover broad areas: organizational change, business simulation policy, exercise, methodology, learning environments, and special topics such as environmental planning, health care, diplomatic games and gambling. Designed for educationalists and trainers who use, or are interested in using, simulations and games to improve competence in uncertain situations.
Beyond the Casino Economy: Planning for the 199Os, NICHOLAS COSTELLO, JONATHAN MICHIE and SEUMAS MILNE, Verso (1989), 303 pp., A9.95. The authors argue they are producing a comprehensive critique of ‘post-Fordest’ economic theories, which postulates a move to smaller, decentralized companies, maintaining instead that the new technologies in fact necessitate large-scale companies with flexible capacity; and hence they feel the answer is a new move towards public ownership and planning. Although their hearts are in the right place, unfortunately the academic and political authors appear to have little knowledge of how innovation occurs and how it can be cffcctivcly managed. Another case for Government interfcncc is made by The Mcaniq (zf Socialism, MICHAEL LUNTLEY, Duckworth (1989). 206 pp., A14.95. The paradox of a period of rapid change is that it is even more difficult to know the r($t 2nswers.
Career Couples, SUZAN LEWIS and CARY L. COOPER, Unwin paperbacks (1989). 276 pp., A5.99. Compares the cxpericnces of two career families, based on interviews with over 300 couples. Plenty of sound scnsc but it is a pity there arc no figures analysing underlying trends. This is an important subject for both organizations and individuals which could have far-reaching consequences for society by the next century-if not before.
Morality and the Market: Corrsrrmer Pressure for Corporate Accountability, N. CRAIG SMITH, Routledge, Chapman and Hall (1990), 351 pp., E40.00. Professor Craig ethical purchase
Smith examines the theory and practice of behaviour, a crucial mechanism for ensuring
1990 social responsibility in business. He explains how and why consumers, often in conjunction with pressure groups, have used their purchasing power to influence corporate policies and practices. He argues the case for the social control of business, drawing on perspectives from marketing, economics, politics, sociology, and business policy. The approach considers practical aspects of ethical purchase behaviour, focusing on consumer boycotts as a specific form of this consumer behaviour, and explaining how boycotted businesses should respond. A subject of increasing concern to top management but the book is likely to be heavy going for most managers.
The New Tycoons: Becoming Seriously Rich at 40, JUDI BEVAN and JOHN JAY, Simon and Schuster (1989), 244 pp., A15.95. Some examples of U.K. high-flyers in the 1980s: Body Shop, Sock Shop, Williams Holdings, Amstrad, Carlton Communications, Coloroll, Ratners, Next, WPP and London & Edinburgh Trust. There is much to be learned from studies of this kind, although they can quickly become dated if they are too superfical.
The David Solution, VALERIE STEWART, Gower ~22.50.
(1990), 164 pp.,
A small, readable, book to help people demolish the blockages that prevent people from consistently delivering peak performance. It shows how to: bust bureaucracy; avoid paralysis by analysis; break down the barriers oforganizational empires; empower junior managers; put customers first and create an enabling culture. Always easier to say than do, but this is likely to be one of the major challenges over the years ahead.
Inrzovatiorz: A Battleplarl_for the (1990), 179 pp., L65.00.
~~%~,JoHN
W. CARSON, Gower
This is a practical manual for the management of innovation systems in industry. It contains over 20 proven systems which have been developed to help practising managers overcome the problems that exist in creating and developing profitable new business. The principal conclusions of the book are that the management of innovation needs a set of organizational structures and systems which are significantly different from those used in the management of existing business. It also rcquircs the application of a more creative, less judgemental psychology, if original and creative ideas are to be developed successfully. The difficulty in developing new business is continually underestimated, and the conflict between the approaches in core business and new ventures is never easy to manage.
Sotrrrrs qf.%ropc~arr Economic arzd Business Informatiorl, UNIVERSITY OF WARWICK BUSINESS INFORMATIONSERVICE, Gower (1990), 239 pp., A65.00. The aim of this directory is to provide a listing of the major sources of economic and statistical information by country, covering both Eastern and Western Europe. The fifth edition has been completely revised and updated, and it includes 6000 entries. Ideal for an On-lint Data Base or Disc option next time?