The Alliance: Managing Talent in the Networked Age — Hoffman, Casnocha, and Yeh

It is especially odd to read The Alliance next to “A longtime proponent of marriage wants to reassess the institution’s future,” since the book and the article describe the same suite of ideas but apply them to different arenas: business and love/marriage/sex, respectively. One could do a find and replace for key words and phrases in The Alliance and have an entirely different book. The structure of dating markets and economic markets are more similar than is commonly supposed (though that may be changing).

The_AllianceThe Alliance is excellent and should be read; the authors note that the “family” model many corporations deploy when describing employees is at best dishonest and at worst fraudulent in a way likely to engender tremendous, justified ill-will. Individuals can’t rely on companies to look out for them (“Both parties act in ways that blatantly contradict their official positions”). Despite this, however, a world of strict, consultant-like free agents is not a happy one either, per the Coase Theorem—though Coase is not cited directly. The solution proposed is an “alliance” that doesn’t promise lifetime employment but does attempt to set explicit expectations for employer-employee interactions.

The book is not as heavily researched as I might have hoped but there are numerous useful bits, like this:

The Towers Watson 2012 Global Workforce Study found that even though about half of employees wanted to stay with their current employer, most of them felt that they would have to take a job at a different company in order to advance their careers.

And those workers are probably right. Still, “A business without loyalty is a business without long-term thinking.” Stock options do a little to ameliorate short-term thinking, but not enough; one reason for startups may be to enforce long-term thinking by putting companies in the control of founders. Large companies, however, are here to stay, and The Alliance offers a way to navigate through them.

As the quotes above show, the book is not gorgeously written, but it is competently written and held my attention throughout. It begs to be given.

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