Harvard Business Review

Reviews

Chasing the Rabbit

How Market Leaders Outdistance the Competition
and How Great Companies Can Catch Up and Win

Steven J. Spear

(McGraw-Hill, 2008)

Steven Spear is no stranger to Toyota watchers, students of the Toyota Produc-
tion System, or HBR readers. Over the past 10 years, ever since he cowrote
(with H. Kent Bowen) his first HBR article, “Decoding the DNA of the Toyota
Production System,” Spear, now a senior lecturer at MIT, has dazzled readers
with his insights into what makes Toyota tick and

his understanding of how any organization can use those ideas to improve its effectiveness. Not surprisingly, his first tome was highly anticipated, and it’s probably an understatement to say that it won’t disappoint.

Writing in an eminently approachable fashion, Spear quickly sets up the problem he plans to tackle: namely, how companies can catch up with what he calls high-velocity organizations, such as Alcoa, Southwest Airlines, and, of course, Toyota. He argues that the reason companies like these excel is that they accept, first, that because

systems are complex, problems are bound to occur, and second, that because processes cross boundaries, problem solving has to cut across functions.

Spear draws on the ideas in his HBR articles but elevates the argument, suggesting that to get to the front of the pack, companies should

■ See problems as they occur. He describes this capability in different ways as the book unfolds – a slightly confusing approach that he doesn’t explain.

■ “Swarm” those problems (by which Spear seems to mean solve them quickly and treat the causes systematically) to create fresh knowledge.

■ Share that new knowledge throughout the company.

■ Lead – by developing those three capabilities.

Spear’s arguments are fascinating, and he pays meticulous attention to detail, but a couple of small issues arise. First, is Toyota really a rabbit? Most people believe that the Japanese company is more like a tortoise: slow, steady, and a long-term thinker – as one of the book’s first customer reviews on Amazon pointed out too.

Second – and this is just a personal preference – why didn’t Spear write a book about just Toyota? He has packed in a great deal of his research on the company – chapters six to 10 are all about Toyota – but other industries, such as health care, and other companies, such as Alcoa, share the spotlight in the book’s first half. There’s a lot about Toyota that we still don’t know, particularly how it has adapted its systems as it chases growth at an unprecedented pace globally. The strains are showing: In 2009, Toyota is likely to report its first operating loss in 70 years as sales in the United States, Japan, and Europe plunge. This, I daresay, would be the perfect moment to read Spear’s description of the changes the company is making to stay ahead of its rivals.

These are mere quibbles, though. I have a dozen books on Toyota stacked on my shelf, in order from the least read to the most referred to – and Chasing the Rabbit is probably going to stay right on top of the pile.

– Anand P. Raman

The Truth About Middle Managers: Who They Are, How They Work, Why They Matter Paul Osterman (Harvard Business Press, 2009) American companies have been playing a dangerous game. While promoting a collaborative culture of empowered knowledge workers, they’ve widened the pay gap between top executives and the rest of the organization. Will the divide make it harder for these executives to lead? Osterman, a business professor, interviewed dozens of middle managers and found them increasingly cynical about their leaders. They’re still devoted to their immediate tasks, but they shy away from the cross-departmental work that bosses now urge them to tackle. Osterman also blames declining job security and fewer opportunities for promotion in flattened organizations for their alienation. Though his sample is too small and his historical comparisons are too limited to make his findings definitive, they are provocative.

Helping: How to Offer, Give, and
Receive Help

Edgar H. Schein

(Berrett-Koehler, 2009)

Corporate mentoring has changed significantly in the past decade or two: Today’s protégés often have serial or topical advisers rather than the godfathers of old. With mentoring now informal and short-lived, both sides have to work harder to establish and maintain productive relationships. Schein, an eminent business professor, provides many anecdotes about mentoring from his consulting practice, and his short, practical book is rich in insights. For instance, he argues that giving help is an inherently threatening act. The recipient fears losing status and often struggles to accept the gift – and perceives advice to be unrealistic or even antagonistic. Helpers are most effective, he says, when they refrain from providing expert diagnosis or advice right off the bat. Instead, they should assist with an inquiry into the problem and only later, after a trusting relationship is established, offer suggestions.