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Demonstrates how to design an organization for the 90s using a model to create the entrepreneurial company and provides an effective response to reshaping a business. Describes how to break up the bureaucracy and make a company work more productively by bringing the logic of the market system and free enterprise into the organization. Case studies from MCI, Control Data, Esso and Alcoa illustrate successful management practice.

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CONTENTS
Foreword = xv
Introduction : The Single Most Important Change in Management Today / William E. Halal ; Ali Geranmayeb ; John Pourdebnadd = 1
 New Questions about Old Beliesfs = 2
 Origins of the New Management Paradigm = 4
 Take an Intellectual Journey Through Internal Markets = 8
 A Corporate Perestroika for the Information Age = 9
PART ONE THE PERSPECTIVE OF INTERNAL MARKETS
 1. Corporate Perestroika The Interaal Market Econony / Russell L. Ackoff = 15
  Macro - versus Microeconomies = 18
  Internal Market Economies = 18
  Public Sector Applications = 21
  Possible Objections = 22
  Advantages of an Internal Market Economy = 25
  Conclusions = 26
 2 The Transition from Hierarchy to … What? Market systems Are the Paradingm of the Information Age / William E. Halal = 27
  The Internal Market Model = 29
  Information Technology Short - Circuits the Hierarchy = 37
  Assessing the Pros and Cons = 39
  Entrepreneurial Management : Working and Leading in an Internal Market = 41
  The Global Corporation in a Global Economy = 46
 3 Reconsidering "A New Corporate Design" / Jay W. Forrester = 52
  Commentary on Updating " A New Corporate Design" = 54
  The Authoritarian Paradigm = 54
  A Free Enterprise Paradigm = 55
  Clinging to the Authoritarian Paradigm = 58
  Crosscurrents in Transforming Paradigms = 63
  The Challenge = 65
 4 Internal Markets and Network Organizations / Raymond E. Miles ; Charles C. Snow = 67
  Introduction = 68
  Evolution of the Network Form = 68
  Causes of Failure in Earlier Organizational Forms = 72
  Potential Causes of Failure in Network Organizations = 77
  Avoiding Failure : Developing the Competence for Self - Renewal = 83
  Conclusions = 85
 5 Interanl Markets and Learning Organizations Some Thoughts on Uniting the Two Perspectives / Peter M. Senge = 87
  Some Qualms = 88
  Some suggestions = 93
  A Metaphor : "Organismic Control" in Social Systems = 104
 6 It's Great Idea! But… Answers to commonly Asked Questions about Internal Markets / Ali Gerannayeh ; John Pourdehnad = 106
  Conclusions = 119
PART TWO FROM CORPORATE BUREAUCRACY TO INTERNAL ENTERPRISE
 7 Principles That Make MCI a Dynamic Organization / Bert C. Roberts, Jr. ; John H. Zimmerman = 123
  Promote Individualism = 125
  Stamp Out Bureaucracy = 126
  Seek Change as an Opportunity for Success = 128
  Shape the Environment to Encourage Success = 130
  The Overpowering Importance of Communication = 132
  Conclusions = 132
 8 Reintroducing Alcoa to Economic Reality Corporate Parenting of Indulged Departments / John P. Starr = 134
  Weaning Support Units at Alcoa Separations Technology = 135
  Switching to a Three - Dimensional Internal Market System = 137
  Evolution of the Internal Market Structure = 139
  Revitalization = 141
  Hopes for the Future = 143
 9 The Executive Office Should Also Be a Profit Center ; Highlights from a Career at General Motors and Clark Equipment / James R. Rinehart = 144
  The Decline of General Motors and American Competitiveness = 145
  Restructuring the CEO's Office at Clark Equipment = 148
  Conclusions = 151
 10 Lessons in Converting Corporate Staff Units into Profit Centers : The Control Data Business Advisors Story / David M. Noer = 153
  Overview = 154
  Roots = 155
  Creating Staff Spin - Offs = 156
  Organizational Learnings = 157
  Why It Died = 159
  Benefits Realized = 161
  The Pain and Necessity of Culture - Busting = 161
  Conclusions = 163
 11 Corporate Integrity and Internal Market Economies : Experiences with Armco in Latin America / Julio R. Bartol ; Ali Geranmayeh = 164
  Background = 165
  Organizational Units in Internal Markets = 167
  Criteria Applied in ALAD = 168
  Conclusions = 170
 12 Decentralizing the Canadian Imperial Bank of Commerce : The Metamorphosis of a Sleeping Giant into a Nimble Enterprise / John MacLean = 171
  Origins of the Decentralization Strategy = 172
  Implementing the New Structure = 173
  Results = 175
  Conclusions = 177
 13 How Independent Subsidiaries Tried to Jump - Start Blue Cross／Blue Shield Benefits and Problems of an Internal Market Strategy / Joseph Gamble ; Michael Sheehan ; Seton Shields = 181
  The Internal Market Strategy = 182
  Benefits of the Reorganization = 183
  Problems of the Reorganization = 186
  An Example of the New Subsidiaries = 188
  Conclusions and Suggestions = 190
 14 Creating Customer - Focused Research and Development : A Plan for Esso Petroleum Canada / John Charlton = 194
  Background = 195
  Why an Internal Market? = 195
  Implementation = 197
  Criteria for Selection of a Pilot Unit = 199
  Research and Development as the Pilot Case = 200
  Conclusions = 201
PART THREE ENTERPRISE IN THE PUBLIC SECTOR
 15 The New Paradigm of Government Passing the Torch to a New Administration / James P. Pinkerton = 207
  The Shift from an Old Paradigm to a New paradigm = 208
  Principles of the New Paradigm = 210
  Reclaiming American Creativity = 215
 16 Ten Ways to Turn DC Around / David Osborne = 217
  Lesson 1 : Use Government More to Steer Than to Row = 220
  Lesson 2 : Whenever Possible, Inject Competition into Public Service = 221
  Lesson 3 : Tie Spending to Results = 222
  Lesson 4 : Let People Choose Among Many Service providers = 224
  Lesson 5 : Don't Just Spend Money ; Invest It and Measure Your Return = 226
  Lesson 6 : Use Goals - Not Rules and Budgets - to Drive Your Organization = 227
  Lesson 7 : Decentralize Authority = 230
  Lesson 8 : Push Control of Services Out of the Bureaucracy and into the Community = 231
  Lesson 9 : Choose Prevention over Cure = 232
  Lesson 10 : Whenever Possible, Use Market Mechanisms Rather Than Administrative Mechanisms = 233
 17 Restructuring the Federal Government / William E. Halal ; Charles Blake ; Kathryn Sheldon Hammler = 236
  The Coming Revolution in Government = 237
  Fee - for - Service in Federal Information Management = 240
  Conclusion and Recommendations : Strategies for Restructuring Government = 247
 Appendix A New Corporate Design / Jay W. Forrester = 253
  Basis for a New Organization = 254
  Characteristics of the New Organization = 255
  Analogy to National Economic Structure = 273
  Implementation of These proposals = 274
References = 276
About the Authors = 289
Index = 295