Managing in the Next Society

Rating:
Summary: Prepare Yourself for the Challenging Changes
Review: It is a sobering thought.

In his latest book, Peter F. Drucker, writer, lecturer, business philosopher, argues convincingly argues the greatest technological changes of the Information Revolution lie ahead and most of them will have little to do with information.

To illustrate, Drucker retreats to the dawn of the Industrial Revolution. James Watt improved the steam engine in 1776; it was not until 1785 when the engine was harnessed to an industrial operation - the spinning of cloth, that society appreciated its benefits. During the following half century, Drucker notes, output increased and the price of cotton textiles fell 90 per cent.

In short order the great majority of manufacturing processes were mechanized. Yet it was not until the 1820s with the adaptation of the steam engine to land based transportation - the railroad - that society witnessed its first new product. It was without precedent and it transformed the economy, society and politics of its day.

The Information Revolution is standing today at the same doorstep where the Industrial Revolution in 1820, Drucker believes.

Some of the chapters of the book, which are essays or articles that have been previously published, deal with management topics; some do not. Although none offers a cure-all, it remains a management book. The societal and social changes will dominate the executive's thinking for the next 10 to 15 years. His or her response, Drucker says, may be more important for the success or failure of their organizations than their response to any economic event.

Rating:
Summary: Excellent foresight
Review: Mr. Drucker is probably the most experienced Management Consultant, teacher and Guru who has traveled through business transformations of the twentieth century. In his characteristic style of narration, with exceptional command over facts and the English language, he is once again at his best in this book - a collection of his recent articles on the new economy and the future of Society. Starting from the invention of the steam engine ( James Watt - 1776), the steam boat ( 1807) to the first railroad ( 1829), the first article "Beyond the information Revolution" describes similarities between the Industrial revolution and the Information Revolution. Moore's law is applicable to the computer's processing power today. A similar phenomenon happened to the cost and productivity of textiles in the Industrial age. Since then, the global economies have transformed completely and today we have a knowledge-based society. The decline of Agriculture during the Industrial age is similar to the decline of Manufacturing in the last four decades.

What lies ahead, in terms of demographic, social, economic and business scenarios, during the next three decades makes fascinating reading. If you are in a hurry to find out what is in store, you may visit the last chapter directly. But the journey is more exciting than the destination. Please take the railroad powered by the steam engine and enjoy the lovely trip.

Rating:
Summary: The grimm perspectives for Latin America
Review: What makes me think deeply from this book is the criticism Mr. Drucker writes about the first world modern states. According to his point of view, they are already lagged in the race for being fitted to the new society and the social changes coming up from the new technological wave. If this is the present situation of the best national states, what could we say about the perspectives of the latin american nation-states?.

The globalization creates ties among many firms and people who don't have their national states as a major intermediation. But the other face of the same process is the fragmentation that happens inside the countries. Mr. Drucker does not outline ideas about the fragmentation process, the other side of the coin, the shadow of the globalization process. This reality does not include all people. The exclusion of some from the benefits of the new model of creation of wealth has political consequences. In the fisrt world, with their bureaucracies, long stablished political parties and rich welfare-states, it will be possible the handling of all undesirable consequences of globalization. With the political ground stable enough, the first world should be able to continue allocating its resources, public and private, well, in an ever changing environment. But what about the latin american nation-states?, they don't have political systems with sufficient legitimacy to produce major consensus and improve the performace of the public policies, at the same time that petty private interests are hold back. And, in addition, they lack the financial resources that come from a fully industrialized economy to face the same kind of problems, but at a higher scale.

I recommend this book to every top latin american politican. The future of business and society will depend more than ever on good enough national states and public policies.Every latin american political elite has the opportunity to show how useful they are. And please, don't blame markets, nor selfish and shy investors, neither unfair trade policies. We know that there are some troubles about them, but they are not as important as the flaws of our national states.