Book Review/IntroductionThe Elephant and the Flea: Reflections of a Reluctant Capitalistby Charles HandyPublished by Harvard Business School Press - 2002 When at midlife Charles Handy voluntarily left the comfort and security of a successful corporate career to become a freelance writer and consultant, he was not aware that he was a good 20 years ahead of his time in the modern workspace. All he knew then was that he wanted to exchange a work life that had become stifling for one that promised to be more independent and free, if financially risky. As it turned out the decision was a good one for him. He found a place for himself as a business consultant much in demand and as a writer of books popular for their wisdom and sage advice. Now with 'The Elephant and the Flea' he has written an insightful analysis of his experiences as a self-employed independent, a status that downsizing and outsourcing is forcing upon a growing multitude of workers today. Handy writes with his usual charm and grace, but produces a sharply penetrating account of what happened to him as a "flea", his metaphor for the independent worker, once he left the world of the large corporation, the "elephant" in the book's title. Making the book largely autobiographical allowed Handy the opportunity to discuss how the diverse factors of education, marriage, religion, social status and so forth bear on the changing nature of employment. Ten Big Ideas from "The Elephant and the Flea" 1. The "elephant" Handy refers to in his title is the large (and getting ever larger) organization. The "flea" is the small (and getting ever smaller) "company," that, in many cases, is simply an independent contractor. Handy predicts that there will be a growing number of fleas and fewer but even grander elephants. 2. As corporations get bigger in their reach, they need to get smaller in their parts. 3. Handy promotes "Shamrock Organization" - an organization with three integrated leaves made up of the central core, the contractual fringe the ancillary workforce.
5. The new "elephants" face four major challenges:
6. Federalism is one method of allowing independent units to collaborate without losing their own identities. But federation is likely to stay together only if the parts are interdependent so that they cannot act as well on their own as they can as part of the greater organization. 7. The answer to the second challenge, Handy writes, is a requisite amount of "alchemy," properly managed. Alchemists want to shape events and make a difference. They have three characteristics that make that possible.
8. Companies should adopt a "triple bottom line" that includes environmental and social audits, Handy believes. 9. Handy also predicts that companies will give employees more choices in how they want to be paid. Options include fixed salary, royalties, commissions, stock options, and targeted bonuses. 10. Handy advocates "chunking" one's life as a means of controlling one's life in the 24/7 week. "The old chunks of work and non-work don't function any more. We have to invent new chunks." Handy calls this the "portfolio life." Who Should Read This Book? Although Handy's own sentiments are clearly with the fleas at this stage in his career, his insights into the relationship of elephants and fleas, the tough questions faced by ever-larger corporations, even the nature and perils of capitalism make provocative reading for almost any serious student of business. If you've read Handy's earlier business classics, you'll find much that is familiar. But in "The Elephant and the Flea," he explores the challenges to corporations in a more profound way than ever before. If you haven't read his earlier books, add them to your reading list. You won't be disappointed. |
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