Did puritanism gave rise to capitalism, or was it its offspring? If the question has puzzled historians of economics for decades at least, the authors, here, don't take side. They merely note that both are perfectly married to each others: the will to establish God's kingdom on Earth is an endeavour engaging a whole society which, in the long term, can serve collective interest (if you agree to capitalism as seen through the Invisible Hand...). More than a happy marriage, though, it's also a combo which, for them, made the economical success of the USA, a country that quickly surpassed Europe and other colonies (e.g. Australia). Why so? They pin it down to the pioneering mindset of its founders, that, they claim, has tickled down to a whole people. What do they mean?
They, of course, retell such successful history, from the arrival of the first colons in Jamestown to WWII, and from the Conquest of the West to the Industrial Revolution (rooted in England, but which truly took off in the USA and it's no coincidence...). They, above all, expose how a religious, puritan mindset birthed a radical way to approach and manage businesses and companies. This is what they call the Golden Age -managers having been promoted from within the workplace, where they had been working for years, and, so, not only insightfully knowing its internal mechanisms but, also, being fully acquainted with its employees with whom they identified. This model (or 'gift', to quote the title) will be so efficient and influential that it will be copied even abroad (e.g. Asia, and Japan especially, which benefited from American influence post-1945). Ironically, though, while such 'gift' was being copied elsewhere, in the USA themselves it was slowly being abandoned in favour of yet another model, which will be catastrophic and the cause of many issues including, according to the authors, the recent financial crisis of 2008. What replaced it?
This no less radical new model was nothing else but Taylorism, a scientific division of labour (which has absolutely nothing 'scientific' about it) that will impose itself and, in a few decades, contaminate even how corporate are being managed. And indeed, if it started by dividing to the extreme the production process, it ultimately ended by doing likewise with leadership. But why would it be bad?
The thing is, when applied to management it will make way for a new type of leaders, divided, and each limited to their own specialities. It's the end of the Golden Age, and the beginning of what they call the Cult of the Experts that is, people no longer extracted from companies themselves but manufactured in Colleges, having no inside knowledge of the enterprises they will lead yet entrusted with their management as soon as they get employed, and equipped with nothing else but mass produced degrees and MBA in businesses, management, and finances. Leadership, then, got completely fractioned in-between directors, committees, consultants, and other partners or what-not, multiplying themselves, and diluting by the same token a central authority to such a point that it's at times very difficult to even know who truly is in charge. This, of course, couldn't be without consequences, not least an increase in the taking of disastrous decisions (they cite the fate of General Motors, the managing of NASA, and the functioning of hospitals). But there is worse.
Since they have been educated in theorical frameworks (and have zero practical experience at lower echelons) we reached a point when companies' performances are being 'measured', depending on their value on a financial market. It's no longer about identifying with employees, then (with whom such new managers are no longer in touch with anyway) but about numbers, data, and statistics. It is, in other words, about satisfying those also more concerned about the financial market that is, share holders, using the system to make profits, more profits, and again more profits without bothering anymore about the common good (for wealth, it has to be said, clearly didn't tickled down as the proponents of such model would claim). How does that matter?
For the authors, it matters because such new leadership and economic model are a betrayal of the puritan spirit. Economics is no longer at the service of mankind, it's mankind who has become enslaved to economics, in a constant race that has gone completely mad. Here's the era, after all, of exploitive and opaque conglomerates, and when a Milton Friedman got awarded a Nobel Prize. The result, of course, could only have been disastrous.
Are we now facing a wall, though? According to the authors, not necessarily. The recent crisis had forced some big companies to re-evaluate how they are being managed, and some made a few attempts to getting back the 'gift' of times gone by. A short chapter is dedicated to them. Will the puritan gift, then, be reborn from its ashes?
Personally, I loved this book for striking of common sense all throughout. What happened to the common good indeed? And how on earth did we came to split leadership ad nauseam, let alone value share holders and abstract data above all else? In any case, it's a very insightful, relevant, and fascinating perspective. Capitalism has gone mad indeed.