Handy was born in Kildare, Ireland, the son of a Protestant Archdeacon, and lives with his wife Elizabeth – a portrait photographer – in London and Diss in Norfolk. He obtained a BA in Greats from Oxford in 1956 before working as an executive in the oil industry in the Far East.
He then resumed his studies and obtained an MBA from Massachusetts Institute of Technology in 1967 to facilitate a move into academia at London Business School. Here he became professor, governor and then visiting professor, eventually becoming a fellow. Also from 1977 he served four years as Warden of St George's House, Windsor, a conference and private study centre.
His first book Understanding Organisations (1976) was a best-seller, and his ability to communicate his ideas in clear, concise writing belies a considerable intellect which extends the boundaries of management ideas.
He continues to command a high placing in the international "gurus" listings, and for several years contributed to Thought for the Day on BBC Radio Four's flagship news programme Today.