Skip navigation
The Halo Effect
Book

The Halo Effect

...and the Eight Other Business Delusions That Deceive Managers

Free Press, 2007 more...


Editorial Rating

9

Qualities

  • Innovative
  • Applicable

Recommendation

This serious book will change the way many people think about the pursuit of managerial excellence and, indirectly, about the criteria they use for managing and (coincidentally) investing. Phil Rosenzweig provocatively challenges prevailing concepts about the traits that drive corporate performance. He asks revealing questions about previous research assumptions that labeled companies "excellent." It seems that earlier accolades about "the best" companies - including the claims in some blockbuster books - were based on faulty research techniques that led authors to mistakenly attribute achievements to companies that did not accomplish them or could not sustain them. Rosenzweig distills his compelling ideas clearly, and buttresses his case with specific examples and original research, adding to the book's power. As a result, getAbstract would compare this very readable, focused book to fine brandy: palatable, enjoyable, memorable, a little heavy - and imbued with the potential to change your mind. Highly recommended.

Take-Aways

  • The "Halo Effect" occurs when people ascribe positive attributes to a person or company, even without evidence that the positive traits, in fact, really exist.
  • The halo effect is rooted in cognitive dissonance theory: people want a cohesive picture of the world, and so they disregard facts that don't fit that framework.
  • Some famous business books were based on delusions about company performance. The authors were victims of the halo effect, snowed by brief success and shallow data.

About the Author

Phil Rosenzweig, Ph.D., is a professor at IMD, the International Institute for Management Development, in Lausanne, Switzerland. He holds a Ph.D. from the Wharton School, University of Pennsylvania, and taught at the Harvard Business School.


Comment on this summary or Start Discussion

  • Avatar
  • Avatar
    A. S. 1 decade ago
    Very insightful book, which makes the case against reading many of the business success stories on getabstract!