The Halo Effect 3: Summary and Review

The term "Halo effect", refers to the phenomenon that  people have tendencies to favor the existing performances of a certain feature, either an item, a company or a person, solely based on the previous high rating of a group or a general impression, rather than individual analysis and personal selection.
Dr. Phil Rosenzweig tried to destroy our usual myth that we usually believe in, such as following golden theories, applying business models and using formula strategies drawn by those once successful companies as our perfect paragons.  He demonstrated the myth on the top 19 companies, including Cisco, ABB, IBM, and Lego with excellent growth and profitability in the 90'. These companies had certain vibrant culture, competitive and acquisition strategies; however, they did not sustain high performances in the next 15 years.

If you wish to follow any successful model from any successful cases or textbook models, Dr. Rosenzweig shattered your dream by collecting many failure data  in history and quoting  Michael Porter's  research on "Segments Specific Effects". Porter states that the Specific Segments, including human resource management, customer and supplier bargaining power, corporate culture, and social responsibilities, only contribute 32% of the performance of a company.  Nearly 70% of the performance effectiveness depends on other factors.

There is no perfect formula for a strategic leadership, which encounters risks and uncertainties in making various decisions. In the year of 2010, while change is the constant, innovation becomes the most essential element in a corporation.

This is an unusual business book on management which evokes reader's critical thinking as we incline to grasp for formulas in the past trying to escape chronicle mistakes, but resulting in fiasco. -----By Mindancer----


Author's Guide for Managers:
http://www.the-halo-effect.com/book/documents/StudyGuideManagers.pdf