From Top-Down Control to Bottom-Up Empowerment
By (author) H. Thomas Johnson
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Relevance Regained by H. Thomas Johnson
Book DescriptionBuilding on his pathbreaking, award-winning bestseller, Relevance Lost, H. Thomas Johnson presents a devastating critique of the top-down hierarchical accounting systems that have dominated American corporations since the 1950s. In Relevance Regained, Johnson shows exactly how "managing by remote control" through results-oriented accounting information has obstructed the real business objective: to reduce process variation and lead times for the purpose of obtaining and keeping satisfied customers. The failure of most American businesses to be competitive and profitable, he contends, is their reliance on management accounting information to control people's actions and productivity. Cost-focused imperatives from on high must be replaced, Johnson asserts, with information systems that link actions with imperatives of global competition. Self-managing work teams, according to Johnson, must own problem-solving information to reduce variation, delays, and excess in processes. Johnson prescribes the necessary changes in management principles that must replace the outdated style associated with the industrial revolution. Responsiveness to customers-not accounting costs-and flexibility-reducing lead times and removing constraints-are necessary for sustained competitive excellence and long-term profitability. Johnson discusses the radical overhauls of companies, such as General Electric's work-outs/"best practices" program and Harley-Davidson's work simplification programs, and shows how these strong commitments to new strategies maximize a company's most important assets: people and time. To be globally competitive, he claims, a company's work must be directed toward selling to customers, not just selling products.
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Book DetailsISBN: 9780743236270
(228mm x 152mm x 17mm)
Imprint: The Free Press
Publisher: Simon & Schuster
Publish Date: 13-Jul-1992
Country of Publication: United States
Books By Author H. Thomas Johnson
Profit Beyond Measure, Paperback (August 2008)» View all books by H. Thomas Johnson
A bold alternative to the prevailing "management by results" approach, "Profit Beyond Measure" proves how companies who follow the principles governing all living systems -- self organization, interdependence, and diversity -- will optimize their long term performance. Illustrations.
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Author Biography - H. Thomas Johnson
H. Thomas Johnson is Professor of Business Administration at Portland State University in Oregon and Distinguished Consulting Professor of Sustainable Business at Bainbridge Graduate Institute in Washington. He co-authored Relevance Lost: The Rise and Fall of Management Accounting, which is considered one of the most influential management books of the twentieth century by the Harvard Business Review.
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