The ISEOR Series – serie

This volume is a first for the Research in Management Consulting series. As research and theory building in management consulting have grown rapidly during the past several years, the series is dedicated to capturing the latest thinking from applied scholars and scholarly practitioners in this field. Complexity and uncertainty in today’s fast-paced business world have prompted a growing number of organizations—profit and not-for-profit alike—to seek guidance in their concomitant change efforts. External and internal consultants and change agents have become increasingly visible in most, if not all, organizational change initiatives. Individual consultants and consulting firms have become increasingly involved in not only providing organizational clients with advice and new ideas but in implementing those ideas and solutions as well. While the series will continue to seek out and explore emerging trends, innovative perspectives, and new insights into the world of management consulting, it is also useful to look back— especially in different countries and cultures—to recapture and revisit past frameworks, intervention models and contributions. This volume is a translation and modest updating of Henri Savall and Véronique Zardet’s original work on mastering “hidden costs,” initially published in French in 1987.

This volume is a first for the Research in Management Consulting series. As research and theory building in management consulting have grown rapidly during the past several years, the series is dedicated to capturing the latest thinking from applied scholars and scholarly practitioners in this field. Complexity and uncertainty in today’s fast-paced business world have prompted a growing number of organizations—profit and not-for-profit alike—to seek guidance in their concomitant change efforts. External and internal consultants and change agents have become increasingly visible in most, if not all, organizational change initiatives. Individual consultants and consulting firms have become increasingly involved in not only providing organizational clients with advice and new ideas but in implementing those ideas and solutions as well. While the series will continue to seek out and explore emerging trends, innovative perspectives, and new insights into the world of management consulting, it is also useful to look back— especially in different countries and cultures—to recapture and revisit past frameworks, intervention models and contributions. This volume is a translation and modest updating of Henri Savall and Véronique Zardet’s original work on mastering “hidden costs,” initially published in French in 1987.

In May 2014, the French research laboratory ISEOR (Socio-Economic Institute for Firms and Organizations) and the University of St. Thomas co-sponsored a second conference on the application of the Socio-Economic Approach to Management (SEAM) paradigm and methodology in the United States. SEAM is a scientific approach to consultancy that focuses on uncovering the dysfunctions and hidden costs that exist in organizations, 'hidden' in the sense that they are not captured by traditional accounting methods and financial analyses. Through intervention that encompasses the entire organization – what the ISEOR team refers to as the HORIVERT approach (combining horizontal and vertical intervention) – the underlying goal is to enhance organizational performance by attacking the 'TFW virus,' a vestige of the early work by Frederick Taylor, Henri Fayol, and Max Weber that has sufficiently infiltrated our thinking about management and organization to the point where are falling well short of our own potential. The resultant dysfunctions this virus unleashes creates hidden costs that readily destroy a firm’s value-added possibilities.The volume captures the ideas, applications, and exchanges of that meeting, attempting to bring the reader into the conference itself. Chapters include the contributors’ presentations ('Chapter Prologue: Conference Remarks'), revised conference papers, and the question and answer dialogue for the session.

In May 2014, the French research laboratory ISEOR (Socio-Economic Institute for Firms and Organizations) and the University of St. Thomas co-sponsored a second conference on the application of the Socio-Economic Approach to Management (SEAM) paradigm and methodology in the United States. SEAM is a scientific approach to consultancy that focuses on uncovering the dysfunctions and hidden costs that exist in organizations, 'hidden' in the sense that they are not captured by traditional accounting methods and financial analyses. Through intervention that encompasses the entire organization – what the ISEOR team refers to as the HORIVERT approach (combining horizontal and vertical intervention) – the underlying goal is to enhance organizational performance by attacking the 'TFW virus,' a vestige of the early work by Frederick Taylor, Henri Fayol, and Max Weber that has sufficiently infiltrated our thinking about management and organization to the point where are falling well short of our own potential. The resultant dysfunctions this virus unleashes creates hidden costs that readily destroy a firm’s value-added possibilities.The volume captures the ideas, applications, and exchanges of that meeting, attempting to bring the reader into the conference itself. Chapters include the contributors’ presentations ('Chapter Prologue: Conference Remarks'), revised conference papers, and the question and answer dialogue for the session.

The result of half a century of research and experimentation in economics and management, this Treatise is intended for management practitioners. Socio-economic management (SEAM) makes the demands of humanism in professional life and sustainable economic prosperity compatible. It is illustrated with numerous cases from 2,150 companies and organizations from a wide variety of sectors and presents observed and measured results. Most of these chapters are written jointly by managers or executives of companies and organizations, and scholars or consultants involved in the pilot actions.This book is the work of 193 authors, from 16 countries and 4 continents, practitioners or academics in management sciences and management. This reflects the diversity of national and sectoral contexts of SEAM applications. Some chapters situate this concept in relation to the major currents of current thought. Each chapter is preceded by abstracts in French, English and Spanish. The prefaces, signed by Herman Aguinis and Rene Ricol, show the scope of socio-economic theory and management beyond the borders of the company. The book illustrates the international influence (48 countries) of the innovative and robust methods created and developed by the ISEOR team.Socio-economic theory constitutes a "breakthrough innovation", both in terms of its conceptual contribution and the practical methods and tools of its applications. This holistic approach touches on the different functions of the company and its multiple problems. It provides a structured change management method, focused on stimulating Human Potential and on self-financing the development of the company or organization, through the periodic recycling of hidden costs.