My intellectual journey has focused on three related passions: understanding how firms create value and the link to their stock market valuations, systems thinking, and knowledge building. This has led to the Madden Center for Value Creation at Florida Atlantic University that promotes the key value creation principles that are the foundation for a prosperous society. Prosperity is more widely shared through a society rooted in dynamism with enthusiastic support for experimentation, knowledge building, and innovation by firms. The Madden Center offers a Certificate in Value Creation online course that packages a learning experience to upgrade the knowledge, skills, and resources you need to create value.
I wrote...
Value Creation Principles: The Pragmatic Theory of the Firm Begins with Purpose and Ends with Sustainable Capitalism
In Value Creation Principles, Madden introduces the Pragmatic Theory of the Firm that positions the firm as a system fueled by human capital, innovation, and, at a deeper level, imagination. He challenges us to understand how we know what we think we know in order to better discover faulty assumptions that often are camouflaged by language. His knowledge-building loop offers guideposts to design experiments and organize feedback to facilitate early adaptation to a changed environment and to avoid being mired in ways of thinking rooted in "knowledge" of what worked well in the past, a context far different from the context of today.
Humanocracy addresses perhaps the biggest opportunity for value creation at scale, i.e., transitioning large command-and-control corporations to flatter organizations.
What I like most is the combination of rigorous thinking, plain language, and company stories illustrating the worldwide movement to purge bureaucracy. I have personally studied one of the companies spotlighted, the preeminent steel manufacturer Nucor. Four layers of management from the CEO to those working in the steel plants.
The authors understand what makes Nucor excel (page 82): “True to the spirit of humanocracy, Nucor’s model isn’t about pushing employees to do more, but giving them the opportunity to be more—more than blue collar workers, more than order takers, more than mere operators, more than employees… every job can be a good job.”
In a world of unrelenting change and unprecedented challenges, we need organizations that are resilient and daring.
Unfortunately, most organizations, overburdened by bureaucracy, are sluggish and timid. In the age of upheaval, top-down power structures and rule-choked management systems are a liability. They crush creativity and stifle initiative. As leaders, employees, investors, and citizens, we deserve better. We need organizations that are bold, entrepreneurial, and as nimble as change itself. Hence this book.
In Humanocracy, Gary Hamel and Michele Zanini make a passionate, data-driven argument for excising bureaucracy and replacing it with something better. Drawing…
For almost six decades, I have studied the histories of firms and their successes and failures in creating value. I am always looking for heavy hitters who write about their thinking/doing process. Curt Carlson qualifies.
When he was CEO of SRI International, he guided the conception and development of HDTV, Siri, the computer mouse, electronic banking, robotic surgery which evolved into Intuitive Surgical (the dominant robotics surgical firm with its Da Vinci system), and much more.
I first found Carlson via a Harvard Business Review article in which he laid out his proven steps for value creation that seem so straightforward, yet are rarely followed. I wanted a more comprehensive discussion, and I got it with this book.
Nothing is more important to business success than innovation . . . And here’s what you can do about it on Monday morning with the definitive how-to book from the world’s leading authority on innovation
When it comes to innovation, Curt Carlson and Bill Wilmot of SRI International know what they are talking about—literally. SRI has pioneered innovations that day in and day out are part of the fabric of your life, such as:
•The computer mouse and the personal computer interface you use at home and work
•The high-definition television in your living room
One of my passions is gaining insights about the knowledge building process. That, in turn, leads to how we perceive the “world out there”—a topic that most people ignore.
However, the top of my reading list is reserved for an author that does serious scientific research on the role of past experiences in shaping our perceptions and is focused on developing practical insights and communicates in easy-to-understand language. Beau Lotto is that rare author.
The key reason for reading his book is to get a better handle on our thinking/perceiving process in order to uncover faulty assumptions and ask better questions, which is the path to impactful value creation solutions to problems.
World-renowned neuroscientist Beau Lotto reveals the truths of human perception and devises a cognitive toolkit for how to succeed in a world of uncertainty.
Perception is the foundation of human experience, but few of us understand how our own perception works. By revealing the startling truths about the brain and perception, Beau Lotto shows that the next big innovation is not a new technology: it is a new way of seeing.
In his first major book, Beau Lotto draws on over a decade of pioneering research to show how our brains play tricks on us. With an innovative combination of…
From a distance you would label me a supporter of capitalism. A closer look says a free-market capitalist with a heart.
However, an even closer look would reveal how much I love dialogues with smart people who have big ideas that may not currently be a hand-in-glove fit with my worldview. And we both want to learn about different ways of looking at problems and are not concerned with selling the correctness of our strongly held beliefs. Jack Reardon is a good friend and one of those smart people with big ideas.
The book that Jack and Graham Boyd wrote should be read in the spirit of learning about different ways of applying a systems thinking lens to critically important sustainability issues. Their book explains how to travel a path to achieve a sustainable world with a regenerative economy in which both competition and cooperation are more closely aligned.
The book is an easy read in the sense of clearly written but a long read because the impact of the ideas presented requires (for me) considerable time to digest. Important stuff.
We believe that there has never been a better time to start businesses and build an economy that works for all of us, and all our needs. This book gives you the best toolkit and building blocks available today to build antifragile, net positive, regenerative, circular businesses and ecosystems of businesses. Antifragile, because each is designed from the DNA up to adapt and stay at the optimum for a regenerative, sustainable, circular economy that delivers a good life for all within the planet's boundaries. Whatever you are focused on, from the rapid depletion…
I believe systems thinking is a prerequisite to developing innovative solutions to complex problems.
Lean thinking positions the firm as a system comprised of value streams that incrementally produce the final products delivered to customers. Lean thinkers say that all activities spent that do not add value in the eyes of customers are waste. So, purge all waste everywhere.
The intellectual leader of this approach to value creation is Jim Womack. He is the master of Gemba Walks—verify the purpose of the value stream, then go to where the work is done, and generate ideas for purging waste. The power of this type of fundamental observation is illustrated in the diverse stories Womack tells of his Gemba Walks over many years.
The life of lean is experiments. All authority for any sensei flows from experiments on the gemba [the place where work takes place], not from dogmatic interpretations of sacred texts or the few degrees of separation from the founders of the movement. In short, lean is not a religion but a daily practice of conducting experiments and accumulating knowledge." So writes Jim Womack, who over the past 30 years has developed a method of going to visit the gemba at countless companies and keenly observing how people work together to create value. Over the past decade, he has shared his…
As a young doctor, Carl Holman has experienced the horrors of World War I and the death of his lover, a fellow officer. Back home after the War, he befriends a young jazz musician who he hopes will become a companion he can share his life with. But this is Oregon: the Ku Klux Klan is gaining influence, homosexual acts are illegal, and such a relationship will jeopardize Carl’s promising medical career.
Musician Jimmy Harper has his own dreams for the future and his own obstacles to overcome before he will allow himself to accept Carl’s love. More than a gay love story, Acquaintance is a deep dive into gay and lesbian history based on extensive period research of the 1920s.
As a young surgeon, Carl Holman has experienced the horrors of World War I and the loss of his lover, a fellow officer. Back home after the war, he befriends a young jazz musician who he hopes will become a companion he can share his life with. But this is Oregon: the Ku Klux Klan is gaining influence, homosexual acts are illegal, and such a relationship will jeopardize Carl’s promising medical career. Musician Jimmy Harper has his own dreams for the future and his own obstacles to overcome before he will allow himself to accept Carl’s love. Acquaintance is a…
