Coming soon · Book Profile
Halo Effect Rosenzweig
A critical examination of popular business thinking, revealing how the Halo Effect and eight other delusions cause us to mistake attributions for the causes of company performance, leading to a flawed understanding of success.
A profile of this book is on the way.
What it’s about
This book challenges managers to think critically about the conventional wisdom surrounding business success. Author Phil Rosenzweig exposes nine common 'delusions' that distort our understanding of company performance, with the central flaw being the 'Halo Effect'—our tendency to make specific attributions (e.g., great culture, visionary leadership) based on a company's overall performance (e.g., high profits). Through compelling case studies of companies like Cisco and ABB, and critiques of bestselling business books like "In Search of Excellence" and "Good to Great," the book reveals how much of business research and journalism is pseudoscience, relying on stories dressed up as rigorous analysis. Ultimately, it calls for a more discerning, probability-based approach to management that acknowledges the inherent uncertainty of strategy and execution, urging leaders to focus on improving their odds of success rather than searching for a nonexistent formula for guaranteed greatness.
The through-line
- Who it’s for
- The reader is a reflective, intelligent manager or business leader who is under pressure to deliver high performance. They are tired of business fads and simplistic formulas, and want to understand what *really* drives success and failure so they can make wiser decisions.
- The problem
- They are constantly bombarded with conflicting advice, bestselling books, and guru proclamations, all claiming to have the secret to business success, making it difficult to know what to believe and where to focus their efforts. They feel frustrated, confused, and perhaps even inadequate for not being able to replicate the promised success. They are skeptical of the hype but lack a clear framework to critically evaluate it.
- The plan
- Identify and understand the nine delusions that cloud business thinking, starting with the Halo Effect.
- Critically re-examine the stories you've been told about successful companies and bestselling management books.
- Adopt a new framework for performance based on the two uncertain pillars of strategic choice and execution.
- Embrace a probabilistic mindset, focusing on improving the odds of success rather than seeking certainty.
- The payoff
- The reader becomes a wiser, more discerning manager. · They can separate valuable insights from nonsense, making better strategic choices and focusing on the right execution priorities. · They lead their organization with clarity and realism, improving their company's probability of success in an uncertain world.
See our guide
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Additional reading
- The Organism · Kurt Goldstein
Maslow sources the term 'self-actualization' from Goldstein and builds upon his holistic view of the organism.
- Explorations in Personality · H. A. Murray, et al.
Cited as providing an 'excellent discussion' on the basic principle of centering motivation theory on goals rather than instigation or behavior.
- Social Interest · Alfred Adler
Maslow credits Adler and his followers for stressing the importance of the 'esteem needs,' which he felt were neglected by Freudian psychoanalysts.
- Wisdom of the Body · W. B. Cannon
Provides the foundational concept of 'homeostasis,' which Maslow uses as the starting point for his discussion of physiological needs.
- Multipliers · Liz Wiseman
Explores how leaders can either amplify ('multiply') or diminish ('diminish') the intelligence and capabilities of their teams, a key concept for creating a positive, low-anxiety environment.
- The Fearless Organization · Amy Edmondson
Provides the foundational research and practical steps for creating psychological safety, which the book identifies as crucial for reducing interpersonal anxiety and encouraging people to speak up.
- Mindset · Carol Dweck
Explains the difference between a 'growth mindset' and a 'fixed mindset,' which is presented as a key tool for helping employees manage perfectionism and see failures as learning opportunities.
- Crucial Conversations · Kerry Patterson, Joseph Grenny, et al.
Recommended as a resource for employees to learn how to navigate difficult, high-stakes conversations, directly addressing the book's theme of moving from conflict avoidance to healthy debate.
- Better Allies · Karen Catlin
The author is quoted on specific, actionable steps for allyship, making her book a practical guide for implementing the principles in Chapter 7.
- Blindspot: Hidden Biases of Good People · Mahzarin R. Banaji and Anthony G. Greenwald
Explains the science of implicit bias, which is central to the book's argument that leaders need to be proactive allies because 'not being racist/sexist' isn't enough.