Beware the halo effect
In what has to be one of the business books of the year, Phil Rosenzweig unmasks the delusions that are commonly found in the corporate world.
These potent delusions affect the business press and academic research, as well as many bestselling books that promise to reveal the secrets of success or the path to greatness. Such books claim to be based on rigorous thinking, but operate mainly at the level of storytelling. They provide comfort and inspiration, but deceive managers about the true nature of business success.
The most persuasive delusion Rosenzweig argues is the Halo Effect. When a company’s sales and profits are up, people often conclude that it has a brilliant strategy, a visionary leader, capable employees, and a superb corporate culture.
When performance falters, they conclude that the strategy was wrong, the leader became arrogant, the people were complacent, and the culture was stagnant.
In fact, little may have changed - company performance creates a Halo that shapes the way we perceive strategy, leadership, people, culture, and more.
Rosenzweig shows how the Halo Effect is widespread. He shows how business bestsellers, In Search of Excellence, Built to Last and Good to Great use flawed data which has been corrupted by the Halo Effect.
Read the book. It will make you rethink how you look at business performance.
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