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Waste has plagued almost every industrial-age firm for the past century. In this powerfully argued alternative to conventional cost management thinking, experts H. Thomas Johnson and Anders Broms assert that any company can avoid the waste that is generated through excessive operating costs in the short run and excessive losses from market instability in the long run. To gain more secure levels of profitability, management must simply change how it thinks about work and how it organizes work. Profit Beyond Measure details how two extremely profitable manufacturers, Toyota and the Swedish truck maker Scania, have rejected the traditional mechanistic mindset of managing by results that generates waste. Johnson and Broms explain how Toyota and Scania achieve their legendary cost advantage through a revolutionary concept they call managing by means (MBM). Instead of being driven to meet preconceived accounting targets, the production systems of Toyota and Scania are governed by the three precepts that guide all living systems: self-organization, interdependence, and diversity. Amid a wealth of new insights into Toyota's vaunted system, Johnson and Broms introduce the tools of MBM to show how design, production, and profitability analysis are done to customer order. They demonstrate that by following the principles that emulate life systems, even a lean and profitable company can organize work to greatly lessen its long-term earnings instability and sharply reduce its short-run operating costs. Scania has achieved sixty-five years of financial stability and longevity in the face of fierce competition. Toyota has amassed a market value since 1988 that has rivaled -- or sometimes surpassed -- the American "Big Three" automakers combined. The principles that Johnson and Broms set forth in Profit Beyond Measure can guarantee the same richer, longer life to any company that applies them."
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Bartley J. Madden, Partner HOLT Value Associates, and author of "CFROI Valuation" This is a profoundly important book that lays out extraordinarily insightful ways to think about managing organizations. It will become a classic. Michael Rothschild, CEOMaxager Technology, and author of "Bionomics"Once again, Thomas Johnson leads the way in rethinking fundamental management systems. David Berdish, Corporate Governance ManagerFord Motor CompanyJohnson and Broms' "management by means" provides insight and methods for us to better learn about operating within the natural system and achieving greatness. Bartley J. Madden, PartnerHOLT Value Associates, and author of "CFROI Valuation"This is a profoundly important book that lays out extraordinarily insightful ways to think about managing organizations. It will become a classic. Dan Saint, PartnerDeloitte & ToucheFascinating...this practical alternative guided by principles of living systems may finally enable us to shed our superstitious beliefs in the efficacy of focusing on outcome and managing by fear. Richard J. Schonberger, PresidentSchonberger & Associates, Inc., and author of "World Class Manufacturing"Just what the business world needs to escape from the entrenched, ineffective, backwards mode of trying to steer the ship "by watching the wake." Roger Saillant, Ph.D.Vice President and General Manager, Energy Transformation Systems, Visteon CorporationDefinitely a must read. Building a culture is more important than building personality cults focused on the bottom line. Nature has shown the way. Tom Johnson has identified nature's best mimics, Toyota and Scania. It's up to the rest of us to catch up. Johnson and Broms' book gives ample insight to the rest of us about where we need to go. Bala V. Balachandran, J. L. Kellogg Distinguished Professor of Accounting and Information Management, and Director, Accounting Research Center Northwestern University A masterpiece...With insights, imagination, and illustrations, Johnson shows how excellent businesses can be created, cultivated, nurtured, and built to last. Roger Saillant, Ph.D. Vice President and General Manager, Energy Transformation Systems, Visteon Corporation Definitely a must read. Building a culture is more important than building personality cults focused on the bottom line. Nature has shown the way. Tom Johnson has identified nature's best mimics, Toyota and Scania. It's up to the rest of us to catch up. Johnson and Broms' book gives ample insight to the rest of us about where we need to go. David Berdish, Corporate Governance Manager Ford Motor Company Johnson and Broms' "management by means" provides insight and methods for us to better learn about operating within the natural system and achieving greatness. Michael Rothschild, CEO Maxager Technology, and author of "Bionomics" Once again, Thomas Johnson leads the way in rethinking fundamental management systems. Richard J. Schonberger, President Schonberger & Associates, Inc., and author of "World Class Manufacturing" Just what the business world needs to escape from the entrenched, ineffective, backwards mode of trying to steer the ship "by watching the wake." Dan Saint, Partner Deloitte & Touche Fascinating...this practical alternative guided by principles of living systems may finally enable us to shed our superstitious beliefs in the efficacy of focusing on outcome and managing by fear. David S. Cochran, Ph.D., Assistant Professor of Mechanical Engineering MIT Superbly written...Johnson provides tremendous insight regarding the re-direction that is needed in business management thinking. The effect of the approach on the design and engineering of manufacturing systems is profound. Roger Saillant, Ph.D.Vice President and General Manager, Energy Transformation Systems, Visteon CorporationDefinitely a must read. Building a culture is more important than building personality cults focused on the bottom line. Nature has shown the way. Tom Johnson has identified nature's best mimics, Toyota and Scania. It's up to the rest of us to catch up. Johnson and Bro ms' book gives ample insight to the rest of us about where we need to go. Richard J. Schonberger, PresidentSchonberger & Associates, Inc., and author of "World Class Manufacturing"Just what the business world needs to escape from the entrenched, ineffective, backwards mode of trying to steer the ship "by watching the wake." Dan Saint, PartnerDeloitte & ToucheFascinating...this practical alternative guided by principles of living systems may finally enable us to shed our superstitious beliefs in the efficacy of focusing on outcome and managing by fear. Bartley J. Madden, PartnerHOLT Value Associates, and author of "CFROI Valuation"This is a profoundly important book that lays out extraordinarily insightful ways to think about managing organizations. It will become a classic. Michael Rothschild, CEOMaxager Technology, and author of "Bionomics"Once again, Thomas Johnson leads the way in rethinking fundamental management systems.

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