Monique Diderich - Böcker

Theodore Levitt’s 1960 article “Marketing Myopia” is a business classic that earned its author the nickname “the father of modern marketing”. It is also a beautiful demonstration of the problem solving skills that are crucial in so many areas of life – in business and beyond. The problem facing Levitt was the same problem that has confronted business after business for hundreds of years: how best to deal with slowing growth and eventual decline. Levitt studied many business empires – the railroads, for instance – that at a certain point simply shrivelled up and shrank to almost nothing. How, he asked, could businesses avoid such failures?His approach and his solution comprise a concise demonstration of high-level problem solving at its best. Good problem solvers first identify what the problem is, then isolate the best methodology for solving it. And, as Levitt showed, a dose of creative thinking also helps. Levitt’s insight was that falling sales are all about marketing, and marketing is about knowing your real business. The railroads misunderstood their real market: they weren’t selling rail, they were selling transport. If they had understood that, they could have successfully taken advantage of new growth areas – truck haulage, for instance – rather than futilely scrabbling to sell rail to a saturated market.

What makes a good manager? Though we can probably all point to someone we think of as a good manager, what precisely makes them so good at their job is a complex question – and one central to good business organization. Management scholar Douglas McGregor’s seminal 1960 book The Human Side of Enterprise is perhaps the most influential attempt to answer that question, and provides an excellent example of strong evaluative and reasoning skills in action. Evaluation is all about judging the strength and weakness of positions: a critical evaluation asks how acceptable a line of reasoning is, how adequate, relevant and convincing the evidence is. McGregor sought to find out what makes a good manager by evaluating different management approaches, their assumptions about human behavior, and effects they had. In his view, management approaches could be roughly broken down into two “theories”: Theory X, which held a negative idea of employee motivations; and Theory Y, which made positive assumptions about them. In McGregor’s evaluation, Theory Y produced markedly better results in productivity and other measurable areas. On this basis, McGregor reasoned out a strong, persuasive argument for adopting Theory Y strategies on a grand scale.

Theodore Levitt’s 1960 article “Marketing Myopia” is a business classic that earned its author the nickname “the father of modern marketing”. It is also a beautiful demonstration of the problem solving skills that are crucial in so many areas of life – in business and beyond. The problem facing Levitt was the same problem that has confronted business after business for hundreds of years: how best to deal with slowing growth and eventual decline. Levitt studied many business empires – the railroads, for instance – that at a certain point simply shrivelled up and shrank to almost nothing. How, he asked, could businesses avoid such failures?His approach and his solution comprise a concise demonstration of high-level problem solving at its best. Good problem solvers first identify what the problem is, then isolate the best methodology for solving it. And, as Levitt showed, a dose of creative thinking also helps. Levitt’s insight was that falling sales are all about marketing, and marketing is about knowing your real business. The railroads misunderstood their real market: they weren’t selling rail, they were selling transport. If they had understood that, they could have successfully taken advantage of new growth areas – truck haulage, for instance – rather than futilely scrabbling to sell rail to a saturated market.