Amazon.com's Best of 2001
Five years ago, Jim Collins asked the question, "Can a good company become a great company and if so, how?" In Good to Great Collins, the author of Built to Last, concludes that it is possible, but finds there are no silver bullets. Collins and his team of researchers began their quest by sorting through a list of 1,435 companies, looking for those that made substantial improvements in their performance over time. They finally settled on 11--including Fannie Mae, Gillette, Walgreens, and Wells Fargo--and discovered common traits that challenged many of the conventional notions of corporate success. Making the transition from good to great doesn't require a high-profile CEO, the latest technology, innovative change management, or even a fine-tuned business strategy. At the heart of those rare and truly great companies was a corporate culture that rigorously found and promoted disciplined people to think and act in a disciplined manner. Peppered with dozens of stories and examples from the great and not so great, the book offers a well-reasoned road map to excellence that any organization would do well to consider. Like Built to Last, Good to Great is one of those books that managers and CEOs will be reading and rereading for years to come. --Harry C. Edwards
Book Description
The Challenge
Built to Last, the defining management study of the nineties, showed how great companies triumph over time and how long-term sustained performance can be engineered into the DNA of an enterprise from the verybeginning.
But what about the company that is not born with great DNA? How can good companies, mediocre companies, even bad companies achieve enduring greatness?
The Study
For years, this question preyed on the mind of Jim Collins. Are there companies that defy gravity and convert long-term mediocrity or worse into long-term superiority? And if so, what are the universal distinguishing characteristics that cause a company to go from good to great?
The Standards
Using tough benchmarks, Collins and his research team identified a set of elite companies that made the leap to great results and sustained those results for at least fifteen years. How great? After the leap, the good-to-great companies generated cumulative stock returns that beat the general stock market by an average of seven times in fifteen years, better than twice the results delivered by a composite index of the world's greatest companies, including Coca-Cola, Intel, General Electric, and Merck.
The Comparisons
The research team contrasted the good-to-great companies with a carefully selected set of comparison companies that failed to make the leap from good to great. What was different? Why did one set of companies become truly great performers while the other set remained only good?
Over five years, the team analyzed the histories of all twenty-eight companies in the study. After sifting through mountains of data and thousands of pages of interviews, Collins and his crew discovered the key determinants of greatness -- why some companies make the leap and others don't.
The Findings
The findings of the Good to Great study will surprise many readers and shed light on virtually every area of management strategy and practice. The findings include:
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Level 5 Leaders: The research team was shocked to discover the type of leadership required to achieve greatness.
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The Hedgehog Concept (Simplicity within the Three Circles): To go from good to great requires transcending the curse of competence.
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A Culture of Discipline: When you combine a culture of discipline with an ethic of entrepreneurship, you get the magical alchemy of great results. Technology Accelerators: Good-to-great companies think differently about the role of technology.
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The Flywheel and the Doom Loop: Those who launch radical change programs and wrenching restructurings will almost certainly fail to make the leap.
“Some of the key concepts discerned in the study,” comments Jim Collins, "fly in the face of our modern business culture and will, quite frankly, upset some people.”
Perhaps, but who can afford to ignore these findings?
Customer Reviews:
A very thought-provoking book for people trying to grow their business........2007-10-02
This was a very interesting book for me to read. I have to imagine that I am in a pretty narrow target market for this book, though the concepts may be broadly applied. I work for a small business and can see many opportunities to put this book's findings to work.
The book tells the various stories of companies that made a transition from a market participant to market leader and saw sustained success for at least 15 years. The author was able to identify a few common factors between these companies, and he and his research team present them as a model for us to follow.
I had but one small issue, which is probably not information that contributes to the rest of the research. They detail radical decisions made by upper management, sometimes completely changing the face of an established business. I figure there must be a largely disproportionate number of business that fail when they made the same or a similar move. I would have liked to see some detail behind how those successful companies came to make that decision. The decision itself was largely overlooked.
Like many "business" books, I feel that much of what was written here was largely common sense. They weren't necessarily ideas that I have had or would have come up with on my own, but as I read them they seemed mundane in analysis. It made the reading slow going, but there was a silver lining -- for instant gratification, each chapter ends with a few pages of main concepts extracted from the text.
There was some very insightful research in Good to Great. The common elements identified were relevant and practical. It would not be an easy model to follow, but if it were it would defeat its own purpose to isolate those corporate characteristics that set successful companies apart. If you have ever wondered what steps you should follow to take your company from Good to Great, this is a book you should read (even if it is just the chapter summaries).
"Good" is not "good enough"........2007-10-02
"Good" is not "good enough". When organizations and/or individuals settle for "good" as "good enough" they set themselves up to become obsolete. "Good to Great" looks at those organizations that decided never to settle for "good enough" and became "Great". How about you? Are you striving to become great at what you do, or have you settled for being good enough to get by? Does the organization that you work for have a plan to move from good to great? Are you a part of the change that will take your company to the next level or do you believe that your company is "good enough" right where it is?
I believe there is more value to be gained by pushing good organizations to become great than trying to turn mediocre organizations into good ones. The data presented in "Good to Great" shows just how much value can be gained by those willing to make the leap to Great. The book also shows you what principles of business those companies that made the leap had to adopt.
My favorite chapters are chapter two (Level 5 Leadership) and three (First Who...Then What). Level 5 Leadership address the benefits of having personal humility combined with a strong will to build something great. We have to many leaders at the top that have let their egos become more important than the organizations they run. "Good to Great" explains how the leaders of those companies that made the leap avoided the ego trap while having great ambitions for building something exceptional. Everyone who wishes to become a leader that makes a difference should read this chapter.
"First Who...Then What" does a good job of showing how great companies put "talent" at the top of the agenda. Any leader who wants to build a strong organization must put "talent" at the top of their agenda. Jim Collins address two critical issues companies need to address when it comes to recruiting and developing their talent. He shows us why it is important to get the right people on the bus and the wrong people off the bus. And then goes on to explain how great companies get the people in the right seat. How many people in your organization are in the wrong seat? How many should be taken off the bus entirely? Companies are not good at hiring the right people and then are terrible at assigning them to the right job. This chapter is a must for anyone involved in the hiring of talent.
I also recommend spending some time at jimcollins.com. I have visited and revisited this site to get more information on the concepts presented in "Good to Great". Buy the book, then go to the website and start your own journey from good to great.
Larry Kevin Adams
theactionator.com
Good To Great.......2007-09-28
Our company is taking the advice of the book to heart. We have formed our "hedgehog" group and all are excited. We want to work in an environment of greatness. The book shows us the way. We have 7 of our employees who have agreed to "donate their time" at lunch several times a month to help us identify our circles. I would recommend this book to any company or organization that truly wants to have their maximum impact in the arena in which they operate!
My Business Bible.......2007-09-24
If I have a bible for business, this is it. First who then what is the only way to go!
Still applicable in 2007.......2007-09-19
I enjoyed the thought provoking aspect of this book. The different levels of leadership, the hedgehog concept are the two takeaways from this book.
How many of us fall into the trap of being everything to everyone? Most I suspect from the findings presented in the book.
Read this book to find out how you can strive to be a Level 5 leader. I found the book very insightful. Jim Collins and his team hit a homerun!
Book Description
The author of the bestselling The Art of Innovation reveals the strategies IDEO, the world-famous design firm, uses to foster innovative thinking throughout an organization and overcome the naysayers who stifle creativity.
The role of the devil's advocate is nearly universal in business today. It allows individuals to step outside themselves and raise questions and concerns that effectively kill new projects and ideas, while claiming no personal responsibility. Nothing is more potent in stifling innovation.
Drawing on nearly 20 years of experience managing IDEO, Kelley identifies ten roles people can play in an organization to foster innovation and new ideas while offering an effective counter to naysayers. Among these approaches are the Anthropologist—the person who goes into the field to see how customers use and respond to products, to come up with new innovations; the Cross-pollinator who mixes and matches ideas, people, and technology to create new ideas that can drive growth; and the Hurdler, who instantly looks for ways to overcome the limits and challenges to any situation.
Filled with engaging stories of how companies like Kraft, Procter and Gamble, Cargill and Samsung have incorporated IDEO's thinking to transform the customer experience, THE TEN FACES OF INNOVATION is an extraordinary guide to nurturing and sustaining a culture of continuous innovation and renewal.
Customer Reviews:
How many faces do you recognise?.......2007-08-13
Building on the Art of Innovation, Kelly brings us the new theory of the ten faces of innovation. It is simple to read and easy to understand. Another book which I found just as breezy to read was Eightstorm: 8-Step Brainstorming for Innovative Managers.
Good stories, but very IDEO-centric.......2007-07-30
Tom Kelley's book The Ten Faces of Innovation defines ten personas (thankfully not "named"--Bob, Sally, etc--just titled) that exemplify roles in an innovative team. They aren't job titles or exclusive positions, and people can work across roles as well.
* The Anthropologist, who observes people and discovers ways to help them
* The Experimenter, an expert in prototyping and testing, probably the classic "innovator"
* The Cross-Pollinator, with broad interests who enjoys connecting different cultures
* The Hurdler, who champions projects and carries them over beaurocratic obstacles
* The Collaborator, who brings people together to work cooperatively
* The Director, encouraging, inspiring, supporting, organizing and championing innovators
* The Experience Architect, a specialist in designing full "experiences" that transcend simple products or services
* The Set Designer, creating spaces that inspire and support innovation
* The Caregiver, who improves the subjective, emotional aspects of products and how they relate to us
* The Storyteller, who tells stories about people and products in creative and interesting ways
The book is heavily IDEO-centric, and most of the examples are from Kelley's own 20-year career there. Not really a surprise for a book subtitled "IDEO's strategies..." but worth mentioning; this is basically IDEO in book form. It includes several weird asides that are clearly IDEO/Kelley quirks, for instance his long tangents into the power of napping at work, comfortable hotel beds, and (ugh) T-shaped people. The IDEO focus gets pretty old after a while, and makes you wonder about the broader applicability of the ideas. What works in a design consulting company that works almost exclusively on short-term projects may not be the best structure for others.
But the personas are broad and--as mentioned above--not exclusive to people's job roles, so they are good signposts for anyone interested in developing their own innovation skills. I suspect it would be less interesting for a sole inventor/designer, but for people working at companies they are especially applicable.
Innovation-in-depth.......2007-06-07
The Ten Faces of Innovation describes ten complementary personas - personality types or roles that contribute in different ways to creative teams:
Anthropologist - this is perhaps the most literal title, meaning people who have been professionally trained as social anthropologists to observe people and processes and interactions `with a fresh eye'. These are probably the biggest antidote to "But we've always done it like that" thinking.
Experimenter - willing to take a chance, maybe, but also willing to explore alternatives and test concepts through prototyping, trial-and-error and applied science.
Cross-pollinator - like a bee flitting between the private parts of flowers, the cross-pollinator spreads good ideas and techniques between specialisms, breaking down silos and sharing good practice
Hurdler - able to leap tall buildings (well project hurdles anyway) in a single bound. They are adept at finding ways over (or more likely around) around immovable obstacles to reduce the banging-your-head-against-a-wall bruising.
Collaborator - knits people and teams together by finding common interests and objectives. Sometimes described as the spider who weaves the web linking everyone to everyone else.
Director - nothing to do with the title on her business card, the Director provides clarity and direction, a rallying point for the troops yet with the humility to actively listen to input from the team.
Experience architect - with an uncanny knack of putting themselves in the customer's shoes, experience architects can visualize products and services at the point of use, no mean feat when they are barely on the drawing board and even the customers are an unknown quantity.
Set designer - this is a fascinating persona: someone who creates visual spaces and physical representations relating to the job at hand. Not really office architects as such, set designers invent scenarios and contexts. They are also comfortable to break unwritten rules and help people mix fun with work (now there's a thought!).
Caregiver - in the sense of nurses and doctors (no, not the teenage version), caregivers support their colleagues, providing a sympathetic sounding board and gentle encouragement when times are tough, and motivating and inspiring people to give there all at all times.
Storyteller - anyone familiar with The HP Way or the origins of Apple and Microsoft will recognize the value of constantly telling and re-telling inspirational stories as a way of reinforcing corporate culture. It's clear that this is a comfortable personal for author Tom Kelley since both books quite literally tell a story.
The book is peppered with genuine examples, most of which involve the genesis of familiar but once remarkable products that broke the mold in some way - style, design, functionality, whatever. Some of you reading this may have bought Palm V PDAs, for instance, on the strength of their sleek looks and brilliant user interface - the Graffiti stylus script language so close to English that anyone can pick it up with a few minutes' practice. How many of you appreciate the innovative use of glue instead of screws to bond the Palm V's case together, or the flat-pack lithium batteries inside? Like many other examples, the attention to detail and the multiple overlapping layers of innovation go well beyond the obvious external visual cues. This is innovation-in-depth.
Whether you are interested in applying innovation and creativity to work initiatives or life in general, the IDEO books are inspirational, instructional and fun to read - what a combination. Recommended.
Easy suggestions for increasing innovation.......2007-05-04
Welcome to an enjoyable, easy read - which is not to dismiss Tom Kelley's fine ideas. With the aid of Jonathan Littman, Kelley works throughout this book to show how innovation can be much more painless than most people think, and more fun. Kelley makes thinking collaboratively sound like a blast. In the process, he convinces you that your organization should nurture and cherish playing with ideas. Although he admits that his consulting company, IDEO, found itself grinding along on tedious projects at times, and that he has watched people shoot down perfectly good suggestions, his underlying message is one of open possibility. He presents 10 roles you can play during meetings, any one of which would be enough to add considerable value. By showing that these roles are temporary, he sends the message that if you want to stay competitive, you can change, and even must. As he examines everything from product names to rules governing how workers decorate their cubicles, Kelley demonstrates the many opportunities you have to create something new. The cost is often little or nothing; sometimes innovation simply means getting out of your employees' way. We recommend this book to managers who wish to break old patterns and encourage creative thought companywide.
Inspiring and fun.......2007-04-17
If you want to create an environment where innovation is the norm, what do you do? Tom Kelley doesn't have a prescription, but he does have some people he'd like you to meet. This book is about the roles that people in an innovation driven organization take on to create fresh new ideas on a regular basis.
If you're an individual contributor, this is a very helpful book both to understand the people around you and your own specific skills. What's more, although in some ways Kelley is describing personality attributes, he is also describing skill sets and ways of looking at the world that you can decide to cultivate. No one is going to be excellent at all of these roles- but that doesn't mean you can't strive to be well rounded!
As a manager, the main take-away lesson is that there are many different types of creativity that can reinforce each other if put together. The most important part of building a creative organization may come at the hiring stage, where you can most easily create a mix of the different personas. But if you're in a stable organization, as most of us are, you can use the "ten faces" to identify the different styles of creativity in your people, and use that information to form teams and projects to bring out their best.
The book is very heavy on anecdote and example. Every one of the ten personas has several stories that illustrate how such an approach can generate ideas that otherwise wouldn't have been considered. The Anthropologist will put themselves in the place of the average user or consumer, as did a woman who faked a pregnancy to see how she would improve the birthing experience at a major hospital. The Experience Architect will take a commodity service and turn it into a show that customers will enjoy for its distinctiveness, like the ice cream "cooking" at Cold Stone Creamery.
The persona that I found most intriguing, and perhaps also furthest from my own, was the Set Designer. Kelley believes strongly in the power of space to shape the minds of those who inhabit it, and just reading about some of the things that go on at IDEO is enough to make my own cube - which I had thought very nicely decorated - seem drab and uninspired.
"The Ten Faces of Innovation" is not a good book to read if you want to know exactly how to change your company, but it is an excellent resource for spotting the early creative behavior every innovator should want to encourage in their team.
Book Description
Nothing is more important to business success than innovation . . . And here’s what you can do about it on Monday morning with the definitive how-to book from the world’s leading authority on innovation
When it comes to innovation, Curt Carlson and Bill Wilmot of SRI International know what they are talking about—literally. SRI has pioneered innovations that day in and day out are part of the fabric of your life, such as:
•The computer mouse and the personal computer interface you use at home and work
•The high-definition television in your living room
•The unusual numbers at the bottom of your checks that enable your bank to maintain your account balance correctly
•The speech-recognition system used by your financial services firm when you call for your account balance or to make a transaction.
Each of these innovations—and literally hundreds of others—created new value for customers. And that’s the central message of this book. Innovation is not about inventing clever gadgets or just “creativity.” It is the successful creation and delivery of a new or improved product or service that provides value for your customer and sustained profit for your organization. The first black-and-white television, for example, was just an interesting, cool invention until David Sarnoff created an innovation—a network—that delivered programming to an audience.
The genius of this book is that it provides the “how” of innovation. It makes innovation practical by getting two groups who are often disconnected—the managers who make decisions and the people on the front lines who create the innovations—onto the same page. Instead of smart people grousing about the executive suite not recognizing a good idea if they tripped over it and the folks on the top floor wondering whether the people doing the complaining have an understanding of market realities, Carlson and Wilmot’s five disciplines of innovation focus attention where it should be: on the creation of valuable new products and services that meet customer needs.
Innovation is not just for the “lone genius in the garage” but for you and everyone in your enterprise. Carlson and Wilmot provide a systematic way to make innovation practical, one intimately tied to the way things get done in your business.
Teamwork isn't enough; Creativity isn't enough; A new product idea isn't enough
True innovation is about delivering value to customers. Innovation reveals the value-creating processes used by SRI International, the organization behind the computer mouse, robotic surgery, and the domain names .com, .org, and .gov. Curt Carlson and Bill Wilmot show you how to use these practical, tested processes to create great customer value for your organization.
Customer Reviews:
Highly Motivating.......2007-08-13
If creativity can be learned, this book teachs you how. I think this is an excellent book to jumpstart the creative process. I also recommend Eightstorm: 8-Step Brainstorming for Innovative Managers, as it has a new and interesting theory on brainstomring.
Excellent Book.......2007-08-13
This book doesn't really break new ground, but it systematically guides the reader to think through innovation and creativity in a disciplined manner. The theories toward the end about using disciplined innovation to attempt social and cultural change in the US are very interesting. Definitely a page-turner....
Tremendously Useful.......2007-06-21
This important and timely book deals with one of the most important issues of our times, our ability to successfully innovate. It is one of a very small number of books that addresses the "how" of innovation and not just the "what." The author's demonstrated success at helping create many important innovations makes them uniquely qualified to address this topic. The book makes fundamental points that are simple to understand but critically important.
First, they make the point that we are in the "exponential economy" where extremely rapid improvement is the rule. They show that the exponential economy is a consequence of our being in the knowledge age and they list the four basic conditions necessay for exponential improvement. They then use this model as the basis for their innovation model. Their rational is simple: if you do not innovate exponetially in the exponential economy, you will go away fast.
Second, they make the point that in the knowledge age we require a broader definition of customer value to succeed, in addition to cost and quality. This is certainly true, but this is one of those rare books where customer value is defined in a comprehensive and useful way. It also ties this definition, for the first time, to the widely used and often confused term "value proposition," which they define as "NABC" (i.e., where N stands for the customer's need, A stands for the approach to satisfy this need, and B stands for the benefits per cost resulting from this approach when compared to the competition, C).
Third, they make the case that we are currently doing a poor job at innovation. Even a small improvement in our ability to innovate would have a huge positive impact on growth and prosperity. We are at a point with our poor innovation results that is reminiscent of manufacturing in the 1950's, when product quality was extremely poor. Deming proved that by changing the way we work, product quality could be profoundly improved while simultaneously lowering costs. The Total Quality Management (TQM) movement pioneered by Deming is now used by all manufacturing companies. Like Deming with quality and cost, they argue that large improvements in our ability to innovate are possible. But we are now in the knowledge age, not the manufacturing age, so new innovation processes are required based on a comprehensive definition of customer value, not just quality and cost. In addition, TQM tends to produce incremental results. We need new innovation best practices that result in both incremental and transformational innovations.
Fourth, they argue that to improve our innovation results the process of innovation must be thought of as a "discipline." That is, it needs to become a subject that can be taught, learned, and improved. But the focus needs to be on knowledge workers who produce both incremental and transformational innovations.
Fifth, they propose that there are "five disciplines of innovation" that must be mastered if one is to be systematically successful at innovation. Several of these disciplines have been written about extensively (e.g., innovation teams, although here they make several new important observations) but others have not been (e.g., the process of innovation).
Sixth, and most importantly, they persuasively argue that failure at any one of the five disciplines of innovation can, and almost always does, lead to failure. This observation explains why large improvements in our ability to innovate are possible. Even small improvements in the five disciplines can produce a surprisingly large impact on one's innovation success rate. This is a fundamental point that has been missing in previous management books.
Finally, they show how these ideas can be used by the individual professional, their teams, and their enterprises. Read this book and compare what it describes to what you are now doing. You likely have enormous room for improvement.
Practical and engaging .......2007-06-05
Everybody talks about "innovation" these days, but here's a practical guide to getting it right. Carlson writes in an engaging manner, with real-world examples. It all just seems to make sense when you read it. Any company or organization out there that wants long-term success would do well to follow the five disciplines described in this book.
Innovation: The Five Disciplines for Creating What Customers Want.......2007-03-01
It has been often suggested that innovation comes from an isolated Aha! Carlson and Wilmot strongly contend that successful innovations come from a disciplined approach that creates value through new products, processes, services, or even marketing campaigns. One of their messages is to work on ideas that are profitable not just interesting. They suggest quantifying value in order to identify important innovation opportunities. They teach the reader how to create well tuned value propositions, and even those 10-minute elevator pitches. The authors provide examples their Need, Approach, Benefits per costs, Competition thinking process. This is not one of those magical matrices, it is a realistic approach that requires understanding customer and market needs, identifying costs and benefits, as well as, the value to investors and management. I thought this was a great book even before Business Week (18 Dec 2007 p.156) identified it as one of the top 2006 Business Books. "Innovation: The five disciplines for creating what customers want" is an easy to read, useful volume that helps readers to focus on the value of their idea or innovation as compared to alternatives. I would like to use this book in a course to help students to examine their business ideas
Book Description
Under Andy Grove's leadership, Intel has become the world's largest chip maker and one of the most admired companies in the world. In
Only the Paranoid Survive, Grove reveals his strategy of focusing on a new way of measuring the nightmare moment every leader dreads--when massive change occurs and a company must, virtually overnight, adapt or fall by the wayside.
Grove calls such a moment a Strategic Inflection Point, which can be set off by almost anything: mega-competition, a change in regulations, or a seemingly modest change in technology. When a Strategic Inflection Point hits, the ordinary rules of business go out the window. Yet, managed right, a Strategic Inflection Point can be an opportunity to win in the marketplace and emerge stronger than ever.
Grove underscores his message by examining his own record of success and failure, including how he navigated the events of the Pentium flaw, which threatened Intel's reputation in 1994, and how he has dealt with the explosions in growth of the Internet. The work of a lifetime,
Only the Paranoid Survive is a classic of managerial and leadership skills.
The Currency Paperback edition of
Only the Paranoid Survive includes a new chapter about the impact of strategic inflection points on individual careers--how to predict them and how to benefit from them.
Customer Reviews:
Enriching Personal Real-Life Account by Someone Who Had Managed a Mega-Size Corporation!!! .......2007-03-20
The real value of this book is that it is written by someone, Andrew Grove, who has actual experiences and managed a start-up right up to a mega successful corporation. There are tons of management and marketing books written by people, based on case-studies and analysis, but lack actual experiences managing or working in a corporation.
The main concept of this book is on strategic inflection point, which is a time in the life of the business when its fundamentals are about to change. This change can either infer an opportunity to rise to new heights or signal the beginning of the end. Hence, this book is about the impact of changing rules, guidelines to assist in identifying those situations and about finding your way through those uncharted territories. This book serves to raise our awareness of going through cataclysmic changes and to provide a framework in which to deal with them.
This book uses Porter's competitive analysis strategy in terms of the 6 forces as a base. The 6 forces are
1. Power, vigor and competence of existing competitors
2. Power, vigor and competence of complementors
3. Power, vigor and competence of customers
4. Power, vigor and competence of suppliers
5. Power, vigor and competence of potential competitors
6. Power, vigor and competence of substitutes
Once a very large change happens in one or several of these 6 forces, a "10X" force is in effect. Very often the transition from a normal business environment to that of a "10X" business environment is very gradual and thus, it is difficult to pinpoint the exact time in which the "10X" force came about. Strategic inflection point comes about when this balance of forces shifts from the normal environment to that of the new "10X" environment and it is difficult to pinpoint its exact occurrence.
The circumstances that help to identify this strategic inflection point are
1. Presence of troubling sense that something is different such as changes in customers' attitudes, entrant of new competitors, etc.
2. Growing dissonance or misalignment between corporate statements and operation actions.
3. Emergence of new framework or actions.
4. New set of corporate statements is generated.
Andrew gave an analogy of working your way though a strategic inflection point to be just like venturing into the valley of death, the perilous transition between the old and the new environments. It is difficult to know the right moment to execute the appropriate actions. Since timing is everything, it is attractive to undertake these changes when the company is in a healthy financial state. This means "acting when not everything is known, when the data aren't in.", merely relying on "instinct and personal judgments" (Chapt 2). Hence it is a matter of training your instincts to pick up a different set of signals.
The only way we know whether a change signals a strategic inflection point is through the process of clarification that comes from broad and intensive debate. This debate should involve technical discussions, marketing discussions and considerations of strategic repercussions (how will it affect our business if we make a dramatic move; how will it affect if we don't?). The more complex the issues are, the more levels of management should be involved because people from different levels of management bring completely different points of view and expertise. The debate should involve people from outside the company, customers and partners with different areas of expertise and interests. When dealing with emerging trends, you may very well have to go against rational extrapolation of data and rely instead on anecdotal observations and your instincts. (chapter 6). Constructively debating tough issues and getting somewhere is only possible when people can speak their minds without fear of punishment.
Andrew offers a few guidelines to discern "signal" from "noise"
1. Is your key competitor about to change? Suggested using the "silver bullet test": If you had just one bullet, whom among your many competitors would you save it for? When the answer to this question stops being as crystal clear, it is time to sit up and pay special attention.
2. Is your key complementor about to change? Does the company that in the past years mattered the most to your business seem less important today? Does it look like another company is about to eclipse them? If so, it may be a sign of shifting industry dynamics.
3. Does it seem that people who for years had been very competent have suddenly gotten decoupled from what really matters? If key aspects of the business shift around us, the very process that got us where we were might retard your ability to recognize the new trends.
Generally you cannot judge the significance of the strategic inflection point by the quality of the first version or release of the product. You will need to draw on your experiences to discern its possible impacts.
Strategic dissonance is the divergence between actions and statements; saying one thing and doing another. Strategic dissonance is an automatic reaction to a strategic inflection point that probing for it is perhaps the best test of one.
Clarity of direction, which includes describing what we are going after, as well as, describing what we will not be going after, is exceedingly important at the late stage of a strategic transformation. This book defines strategic plans as statements of what we intend to do, whereas strategic actions as steps we have already taken or are taking. Strategic plans are abstract and are usually couched in language meant for the company's management. Strategic actions matter because they immediately affect people's lives. The most effective way to transform a company is through a series of incremental changes that are consistent with a clearly articulated end result.
This book mentions the "Taillight" approach - some companies may profitably wait for others to test the limits of technological possibilities or market acceptance and then commit to following, catching up and passing them.
A question that often comes up at times of strategic transformation is whether you should pursue a highly focused approach, betting everything on one strategic goal or should you hedge. It takes every erg of energy in your organization to do a good job pursuing one strategic aim, especially in the face of aggressive and competent competition. It is hard to lead the organization out of the valley of death without a clear and simple strategic direction. Demoralized organizations are unlikely to be able to deal with multiple objectives. Thus, hedging is expensive and dilutes commitment, and is not recommended.
"Most companies don't die because they are wrong; most die because they don't commit themselves... The greatest danger is in standing still" (Chapter 8).
The leader needs to show interest in the elements leading to the strategic direction, by getting involved in details that are appropriate to the new direction and by withdrawing attention, energy and involvement from those things that do not fit. At times like this, the calendar is the most important strategic tools in communication. Andrew emphasizes that communicating strategic change in an interactive exposed fashion is important and necessary such as corporate email announcements and meetings, etc.
Companies that successfully navigate through strategic inflection points tend to have a good dialectic between bottom-up and top-down actions. Bottom-up actions come from the ranks of middle managers, who by the nature of their jobs are exposed to the first whiffs of the winds of change, who are located at the peripheral of the action where change is first perceived and who catch on early. But by the nature of their work, they can only affect things locally. Their actions must meet halfway the actions generated by senior management. While those managers are isolated from the winds of change, but once they commit themselves to a new direction, they can affect the strategy of the entire organization. The best results seem to prevail when bottom-up and top-down actions are equally strong. When the top management lets go a little, the bottom-up actions will drive towards chaos by experimenting, by pursuing different product strategies, by generally pulling the company in a multiplicity of directions. After such creative chaos reigns and a direction becomes clear, it is up to senior management to reign in chaos. A pendulum-like swing between the 2 types of actions is the best way to work your way through a strategic transformation. What is needed is a balanced interaction between the middle managers, with their deep knowledge but narrow focus and senior management, whose larger perspective could set a context.
An organization that has a culture that can deal with these 2 phases - debate (chaos reign) and a determined march (chaos reined in) is a powerful, adaptive organization. Such an organization has 2 important attributes:
1. It tolerates and even encourages debates. These debates are vigorous, devoted to exploring issues, indifferent to rank and include individuals of varied backgrounds.
2. It is capable of making and accepting clear decisions, with the entire organization then supporting the decision.
This book emphasizes on the concepts by reliving a few of Intel's crisis; the mid-80s shift from memory to microprocessors business, RISC vs CISC architecture and during the fall of 1994 the floating point bug associated with Intel's flagship device; the Pentium processor. The magnitude of this crisis is so significant in that a tiny flaw in the microprocessor's floating point unit could mushroom into half a billion dollars' worth of damage in less than 6 weeks. This was later narrowed down to 2 key factors. First the success of Intel's merchandising "Intel Inside" program, which has projected a strong Intel image right to the end-user, became a double-edge sword in that end users directly contact Intel for a replacement microprocessor. In a normal incidence, it is likely to be the computer manufacturers who will perform the recall and replacement. But Intel's identity is so strong with the end-users that they became the ones asking for a recall and replacement. Second, the other factor is attributed to Intel's sheer size. Intel had become gigantic in the eyes of the computer buyers. And thus the huge cost in replacement.
This book also relates the transition of the computer industry in the 80s vertical alignment to that in the 90s; the horizontal alignment. This came about with the appearance of the microprocessor and then the personal computer. The "10X" force came about when the technology permitted the integration of several chips into one single chip and this same microprocessor enabled the production of all kinds of personal computers. As the microprocessor became the basic building block, economics of mass production worked its charm giving extremely cost-effective PCs. Over time, this changed the entire structure of the industry and a new horizontal industry emerged. As a result of this trend, companies previously successful in the vertical alignment, but who failed to adapt or recognize this "10X" force failed and no longer existed today. Examples are Wang and Cray. At the same time, this change also spelled opportunities for new entrants such as Dell and Compaq. Thus when an industry goes through a strategic inflection point, the practitioners of the old industry may have trouble, while on the other hand, this new environment provides opportunities for new entrants into this industry.
The key characteristics of horizontal industries is that they live and die by mass production and mass marketing, bringing cost-effective solutions and more specialization, i.e the best in class for that particular market segment such as TV monitors, memory, storage devices, etc.
The new rules of the horizontal industry are
1. Do not differentiate without a difference. Do not introduce improvements whose only purpose is to give you an advantage over your competitor without giving your customer a substantial advantage. Example is a "better PC" departed from the mainstream standard and hence giving rise to software incompatibility.
2. Grab opportunity when there is a technology break or change coming along.
3. Price for what the market will bear. Price for volume. Work like the devil on your costs so that it becomes profitable. This leads to economies of scale whereby by being a large-volume supplier, you can spread and recoup those costs. In contrast, cost-based pricing will often lead you into a niche position.
To be a leader or survivor in a horizontal and commoditized industry, this book provides some food for thought. A prime example is Intel exiting the commoditized memory industry in which they were once in the lead, until the entrance of the Japanese manufacturers.
Rhetoric and boring!.......2007-01-11
This book is rhetoric and boring with a few examples of successful and unsuccessful ventures so I started reading about Grove and his background.
The influence of communism in his early years seems to have put Grove in the paranoia groove. The culture of paranoia is clearly seen in Intel's business today- slow decision making, trust issues with employees and even customers!
Hire and fire culture has made the remaining employees work the system to `survive' rather than innovate and thrive.
Compare and contrast this Apple or for that matter even AMD and you will realize these companies are more in tune with their customers and employees (and hence their stock holders) in terms of basic trust.
We are not in a communist environment anymore. By being paranoid Grove's Intel has proved, you can only survive and barely at that.
Only for business managers?.......2006-08-28
Contrary to popular opinion on this website, I found this book to be boring, repetitive and badly written. It was so boring I struggled to finish it during a journey where I had little else to do. This book summarizes a few events that were significant to Intel and offers advice on how similar business changes should be handled. Being an engineer, and not a manager, I found this to be vague and rambling. However I do agree with the book's title - Only the Paranoid survive. I think this outlook is useful for everyone, and not just business types.
Lengthy Writing.......2006-01-27
I picked up this book after seeing some good reviews about it.
The whole book is about "Strategic Reflection Point".
I was disappointed that Andy Grove didn't try to explain SRP in a more concrete manner. After finishing the book, I still have very vague & abstract knowledge on SRP.
Nevertheless, Andy Grove is still one of the best CEOs I admired.
How to survive in the new economy.......2006-01-22
This a good book based on facts. Andrew Grove goes on describing how Intel managed to shift from a semiconductor to the microprocessor company while he was the CEO... (now it is shifting again under Paul Otellini).
Although the example a bit outdated since it was written in 1996, the same principles still apply. A must read if you want to understand why some great and big companies suddenly go down while others emerge quickly.
You always need to learn the history to understand the future.
Book Description
Creativity, new ideas, innovation -- in any age they are keys to success, but in today's whirlwind economy they are essential for survival itself. Yet, as Robert Sutton explains, the standard rules of business behavior and management are precisely the opposite of what it takes to build an innovative company. We are told to hire people who will fit in; to train them extensively; and to work to instill a corporate culture in every employee. In fact, in order to foster creativity, we should hire misfits, goad them to fight, and pay them to defy convention and undermine the prevailing culture. Weird Ideas That Work codifies these and other proven counterintuitive ideas to help you turn your workplace from staid and safe to wild and woolly -- and creative.
Stanford professor Robert Sutton is an authority on innovation and a popular speaker. In Weird Ideas That Work he draws on extensive research in behavioral psychology to explain how innovation can be fostered in hiring, managing, and motivating people; building teams; making decisions; and interacting with outsiders. Business practices like "hire people who make you uncomfortable," "reward success and failure, but punish inaction," and "decide to do something that will probably fail, and then convince yourself and everyone else that success is certain" strike many managers as strange or even downright wrong. Yet Weird Ideas That Work shows how some of the best teams and companies use these and other counterintuitive practices to crank out new ideas, and it demonstrates that every company can reap sales and profits from such creativity.
Weird Ideas That Work is filled with examples of each of Sutton's 11 1/2 practices, drawn from hi- and low-tech industries, manufacturing and services, information and products. More than just a set of bizarre suggestions, it represents a breakthrough in management thinking: Sutton shows that the practices we need to sustain performance are in constant tension with those that foster new ideas. The trick is to choose the right balance between conventional and "weird" -- and now, thanks to Robert Sutton's work, we have the tools we need to do so.
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Creativity, new ideas, innovation -- in any age they are keys to success, but in today's whirlwind economy they are essential for survival itself. Yet, as Robert Sutton explains, the standard rules of business behavior and management are precisely the opposite of what it takes to build an innovative company. We are told to hire people who will fit in; to train them extensively; and to work to instill a corporate culture in every employee. In fact, in order to foster creativity, we should hire misfits, goad them to fight, and pay them to defy convention and undermine the prevailing culture. Weird Ideas That Work codifies these and other proven counterintuitive ideas to help you turn your workplace from staid and safe to wild and woolly -- and creative. Stanford professor Robert Sutton is an authority on innovation and a popular speaker. In Weird Ideas That Work he draws on extensive research in behavioral psychology to explain how innovation can be fostered in hiring, managing, and motivating people; building teams; making decisions; and interacting with outsiders. Business practices like "hire people who make you uncomfortable," "reward success and failure, but punish inaction," and "decide to do something that will probably fail, and then convince yourself and everyone else that success is certain" strike many managers as strange or even downright wrong. Yet Weird Ideas That Work shows how some of the best teams and companies use these and other counterintuitive practices to crank out new ideas, and it demonstrates that every company can reap sales and profits from such creativity. Weird Ideas That Work is filled with examples of each of Sutton's 11 1/2 practices, drawn from hi- and low-tech industries, manufacturing and services, information and products.
Customer Reviews:
Weird and Wonderful.......2007-07-20
"Weird Ideas That Work" works! This is one of the most compelling books I've read in a long time. Sutton manages not only to come up with ideas that seem weird at first glance, but to actually prove them useful and logical at the same time.
The author instructs readers on how to build a creative company by using his 11½ weird ideas, which range from hiring people who make you uncomfortable to deciding to do something that will probably fail. The list looks hilarious until you read the sense that he makes. Of course, Sutton points out that there are different kinds of companies - some aim for innovation and some for efficiency. (He makes it clear that the weird ideas are not for those who require precision -- like airline pilots, for example!)
This book explains how to shatter old habits by giving advice on enhancing variation, seeing old things in new ways ("vu-ja-de"), and breaking away from stifling routines. Sutton also points out that one should not go hog wild - there is a balance between productivity and creativity which everyone must find for themselves.
"Weird Ideas" offers great wisdom mixed with humor and pure entertainment. If you're a rebel, a brat, or just plain anyone who wants to try completely new management techniques, then you'll love this book. So whip the tablecloth right out from under that crippled, jaded system you've got going and try at least a few of these wild weird ideas.
Agitate, Isolate & Be Ridiculous... Oh, and AGITATE.......2006-12-01
I was a big fan of Sutton's Knowing-Doing gap that offered a real solution to a real problem. This book had an unreal feel to it for me though.
He offers 12 practices for fostering innovation. The first four of these have to do with Human Resources. Hire slow learners. Hire people that make you feel uncomfortable. Hire people you probably don't need. Now forgive me if I am wrong, but as imperfect as Human Resources is anyway, don't we already do some of that? Also recommended is to interview job applicants to get new ideas. What about the people?
The next two have to do with office manners. Encourage people to ignore and defy superiors. Isn't ignore a little strong? Find some happy people and get them to fight. No comment.
The next is to reward success and failure, but punish inaction. OK, we already fire non-producers, but is it really so that success and failure deserve the same billing?
The next two are on the edge of silliness. Decide to do something that will probably fail and be 100% certain of its success. Think of some ridiculous or impractical things to do.
The next is avoid, distract and bore customers and critics.
Then, don't try to learn anything from people who say they have solved the problems you face.
Finally, forget the past success of the company.
This book says some pretty wild things that will get you thinking. Although these counterintuitive ideas are offered as 'proven', you won't find the proof in this book. By the normal lottery of hiring, you will certainly get a mix of the above. There are many better books on the philosophy and practical application of innovation available.
Sorry to disappoint some with this review, but don't let this stop you from reading Sutton's Knowing-Doing Gap which I found excellent and have also reviewed it here on Amazon.
3 Stars
Routine right and wrong.......2006-10-24
All activities need both effective routine and regular innovation. Consider the difference. There are times when it makes sense to do the same thing right, over and over again, without slipping. But there are also times, and types of activities, where doing something in a very new and different way is essential. The real-life examples in this book support these 11½ methods for finding new ways of doing things, and producing new kinds of products and services. Worthwhile reading for anyone who wants to inject a little spice into the routine of software development and delivery.
Productive New Concepts.......2005-11-23
This is a wonderful but dangerous book. The 11 and 1/2 weird ideas it contains are terrific, exciting and slippery. Use them right and you could transform your company into a hotbed of innovation. Use them wrong and you could also transform your company into a disorganized mess. Author Robert I. Sutton clearly explains that some situations do not require innovation - that they are, in fact, terrible settings for new things. Companies focus on the routine for an extremely logical reason: it makes money now. Identifying situations that can make money with routine work versus circumstances that require change is a tough distinction, particularly since innovation requires many failures, disrupts your culture and forces you to take a rough look into the future. We thus recommend this book to a select group: those who know their fields and organizations extremely well. If you can see clearly through both the current jargon that promotes innovation and your organization's often unspoken prejudices, you will find this book exciting and extremely productive.
Not so weird ideas for innovation labeled weirdly.......2005-11-16
This book is a useful and fun read. It offers some solid ideas for innovation but the ideas are labeled in order to draw attention. For instance, the first idea is, "Hire "slow learners"", however the intention behind this is just hire stubborn people who are unaffected by others opinions and norms. These people will go against the standards and breed creativity. Another idea is "Find some happy people and make them fight" with the basic idea behind this technique being get optimistic people, who are naturally more creative. Put them in a room together and let them bounce ideas together until a new and improved idea is created.
Another thing to be prepared for with this book is that the ideas all go against commonly accepted business practices. That is because the ideas are admittedly not for present success but calculated and proven risks for future innovation. So anyone interested in changing their business and preparing to get an edge on competitors in the future will benefit from this book.
Amazon.com
Recall the old saying about all work and no play making Jack a dull boy? World-class companies today need play--serious play--if they want to make truly innovative products, argues Michael Schrage, an MIT Media Lab fellow and Fortune magazine columnist. In Serious Play he writes, "When talented innovators innovate, you don't listen to the specs they quote. You look at the models they've created." Whether it's a spreadsheet that tests a new financial model or a foam prototype of a calculator, what interests Schrage is not the model itself, but the behavior that play--be it modeling, prototyping, or simulation--inspires.
Schrage examines the approaches to successful prototyping at companies such as AT&T, Boeing, Microsoft, and DaimlerChrysler and describes the kind of culture that's needed for encouraging innovation. In the last chapter, he lays out the 10 rules of serious play, including: Be willing to fail early and often; know when the costs outweigh the benefits; know who wins and who loses from an innovation; build a prototype that engages customers, vendors, and colleagues; create markets around prototypes; and simulate the customer experience. Well-written and inspiring, Serious Play, is a first-rate user's guide for managers, project leaders, and other innovators. --Dan Ring
Book Description
Serious Play is about serious work: how the world's leading companies model, prototype, and simulate to innovate. Increasingly, prototypes are the key platforms and models are the core media for managing risk and creating value. They allow for cost-effective creativity, encourage profitable improvisation, and inspire organizations to collaborate in unexpected ways.
Serious Play is a crisply written handbook for product, process and project leaders who are determined to manage their innovation initiatives successfully.
As digital technologies for modeling and simulation offer more value for less money, they provoke fundamental challenges to organizational culture and design. MIT research associate Michael Schrage asserts that conventional wisdom surrounding innovation gets turned inside out: What innovative companies choose not to model often proves more important than what they do. Contrary to the popular assumption that innovative teams generate innovative prototypes, in fact innovative prototypes generate innovative teams. How innovators play with their models and simulations invariably matters far more than what they actually plan. In fact, Schrage shows why innovative firms cannot seriously plan unless they seriously play.
Drawing upon a range of companies as diverse as Walt Disney, Boeing, Merrill Lynch, General Electric, IBM, IDEO, Microsoft, Royal Dutch Shell, DaimlerChrysler and American Airlines, Schrage identifies the common patterns and practices that distinguish productive prototyping cultures from pathological ones. He explores the intimate connection between how leading innovators model reality and how they actually manage it. He examines prototyping failures as rigorously as he explains prototyping successes.
The essential message of
Serious Play is that tomorrow's innovations will increasingly be the byproduct of how companies and their customers behave-and misbehave-around this new generation of models, prototypes, and simulations. The distinction between serious play and serious work dissolves as technology gives innovators ever-increasing opportunities to simulate and prototype their ideas. As the media for modeling radically change, so will the organizations that use them.
With real-world examples and engaging anecdotes, Schrage argues that the future of prototyping is the future of innovation. A User's Guide included in the book helps readers quickly take away the innovation practices profiled throughout. A landmark book by one of the most perceptive voices in the field of innovation,
Serious Play will lay serious claim to the hearts and minds of forward-looking business managers.
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Successful innovation demands more than a good strategic plan; it requires creative improvisation. Much of the "serious play" that leads to breakthrough innovations is increasingly linked to experiments with models, prototypes, and simulations. As digital technology makes prototyping more cost-effective, serious play will soon lie at the heart of all innovation strategies, influencing how businesses define themselves and their markets. Author Michael Schrage is one of today's most widely recognized experts on the relationship between technology and work. In Serious Play, Schrage argues that the real value in building models comes less from the help they offer with troubleshooting and problem solving than from the insights they reveal about the organization itself. Technological models can actually change us--improving the way we communicate, collaborate, learn, and innovate. With real-world examples and engaging anecdotes, Schrage shows how companies such as Disney, Microsoft, Boeing, IDEO, and DaimlerChrysler use serious play with modeling technologies to facilitate the collaborative interactions that lead to innovation. A user's guide included with the book helps readers apply many of the innovation practices profiled throughout. A landmark book by one of the most perceptive voices in the field of innovation.
Customer Reviews:
Readable User-Friendly Book on Innovation.......2005-04-30
I am enjoying this book. I like the title "Serious Play", but I dislike the sub-title "How the World's Best Companies Simulate to Innovate". Companies don't innovate people do is my thought. I think the author could have taken this concept one step further. That is tie in the concepts of how innovation relates to chaos theory and fractals and larger concepts. The author's ideas are not that new to me because I am a project manager in a software engineering environment where prototyping and iterations is the name of the game. We have at most 3 months to make a difference, to deliver and then we are swept into the ocean of change. You have a small window of opportunity before both the game and the players change.
I think that the world may be on the verge of moving so fast that we begin to see things like the wiki, open source culture in that it takes all of us innovating collectively in serious play. Long term I wonder if you are not free, workable and now, you are not in the game.
Some concepts for me are:
1) Importance of being able to improvise in the moment
2) Prototyping both reveals the underlying power cutural structures and changes them.
3) Human beings are relationship morphing entities.
4) the importance of shared collaboration space that invite clever interactions between people.
5) Treating prototypes as conversation pieces
6) Watch for the underlying feeling of geniune fun
7) The importance of the challenge or obstacles to the game
8) We shape our models, our models shape us
9) "In order to have actionable meaning, the fuzzy mental models ... must be externalized in representations in ways... that can be grasped"
10) Prototypes force individuals to confront the tyranny of tradeoffs (i.e. difficult decisions)
11) "All models are attempt to manage the complexity by making it simpler and more accessible"
While the text is very readable I had trouble pulling out the underlying structure of the book. But I felt redeemed when I read the User's Guide at the end of the book. Interesting you would think a User's Guide would go at the beginning. Fortunately I do not read sequentially so I found that chapter fairly quickly.
Three years on, still a great book.......2002-09-16
Here's the best review I can give Michael Schrage's "Serious Play": Three years on, it's consistently the first book I pull out of my bookshelf when I'm looking for ideas for presentations, thoughts on introducing new products or services, etc. His commentary on "mean-time-to-payback" is something that will stick with you for years. It's brilliant stuff, written in clear, concise terms. And, surprisingly, very little of it is dated. Unlike many books from that era, there's no .com or Enron fixation for the author to be embarrassed about. Schrage's examples are pulled from health care technology, animation, theater...in short, an eye-opening spectrum of ideas. I consider "Serious Play" one of my best purchases ever.
Preaching to the choir.......2002-08-22
This is a good book for someone to read if they are skeptical of the benefits of prototypes. However, since I already know the value of interactive prototypes I became quickly tired with the book.
Other critiques: it felt like the author had a bunch of cool little examples lying around and finally got the idea to put it together, surrounded by some fluffy text to make it thick enough to sell as a book, and put it on the market. Lots of space is taken up by these excerpts, as well as big text in the margins summing up "important points," which I would usually find useful but instead gave the impression of just taking up space.
Also, the author makes repeated use of similes to the point that it got annoying; "Just like a is to b, c is to d."
At one point, the author brings up the difference between a "simulation" and a "prototype," and just when you think the core of the matter is going to be distinguished the author backs out, leaving you wondering why they brought it up in the first place if they weren't going to take a stab at defining and differentiating them.
Sorry, but given the hype I was sorely disappointed. Read the first chapter or so in a bookstore before actually buying this.
Enlightening.......2002-07-11
This book gave me a very good and new insight of how to manage prototyping. It is enlightening for not only it explains and lists the topics that are important. It also gives us lots of practical examples of implementations.
I kept refering it, and i DON't usually do that.........2001-03-14
The most significant aspect of this book is that it provides a vocabulary and a language to discuss the nature of creative prototyping and modeling behaviors. The first thing you do is take off the cover, otherwise people think you're reading a really cheesy book. It's everything but that. It's been 4 weeks, and i'm on my 3rd time through it. I reference it and re-use it over and over. I've since recommended it to a genetic scientist friend of mine that works for a major drug company, a software engineer, and a broadcast designer. The thinking in this book has an epidemic effect with those that read it, and the excitement that it carries into their work and mine is the most influential and direct I have ever experienced. Some books are relevant once, but this will be accessed for years to come. This is my first book recommendation i have ever made. that is all...
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"To compete effectively, you must innovate: Not just once, but consistently, in all your products, services, and business functions. But, profitable innovation doesn't just ""happen."" It must be managed, measured, executed on¿and few companies do that well. Making Innovation Work offers the first real solution: A start-to-finish process for driving growth from innovation.
The authors draw on unsurpassed innovation, consulting experience, and a thorough review of innovation research. Their techniques have been proven at top companies ranging from Apple and GE to Toyota. In this book, they demonstrate what works, what doesn't, and how to use all your management tools to maximize the value of your innovation investments.
You'll learn how to define effective strategies and organizational structures for innovation, manage innovation more successfully, incent teams to deliver, and infuse metrics throughout every phase of the innovation process. Simply put, Making Innovation Work takes the mystery out of profitable innovation, showing how to lead it, track it, incent it, and get more of it.
Leading innovation
Defining innovation strategy, designing portfolios, and encouraging value creation
Integrating innovation and business strategy
Matching innovation to your overall business strategy
Balancing creativity and value capture
Generating successful new ideas that drive maximum ROI
Weaving innovation into the fabric of business
Making innovation truly integral to your company's business mentality
Neutralizing organizational ""antibodies""
Preventing your company from killing off its best new ideas
Building innovation networks
Leveraging innovation resources both inside and outside the organization
Measuring and rewarding innovation
Implementing the right metrics and the right incentives to drive results"
Customer Reviews:
Innovation: Thrive or Fade Away.......2006-07-20
The term "Innovation" has been used so much in recent years that it's become cliche. Humans have been innovative for over 30,000 years, before the day of the first fire pit. People have always utilized innovation. But now it's is more vocally emphasized in the business realm because of ultra-competitive global market forces, and because we've reached the stage where technology enables change at a more rapid pace. "Innovation" is a Mantra. For lack of better words, creativity, adaptability, and innovation have always been vital. They've always been used by the successful: the winners; the victors. Innovation has always been mandatory. Survival: both literally and figuratively.
Authors Tony Davila, Marc Epstein, and Robert Shelton list 7 rules for innovation. This book uses matrices and tables to detail the different choices and the positives and negatives of choosing these various options. There are three types of innovation: 1) Incremental 2) semi-radical and 3) Radical.
Of the tons of information in this book, some things noted are the case study of the Coca-cola company and it's drop in sales, to Individual employee motivation in the "pay-performance relationship." Why do incentives for employees fail at times? Because they are overused. What can inhibit and actually kill creativity? "Fear, Failure, and Fairness" affect calculated risk taking by individuals, staff-teams, and entire companies. As for Radical Innovation, what is the motivation for radical innovations? That groundbreaking new idea, invention, product, vaccine, or piece of technology? Answer: intrinsic motivation.
One example of the types of innovation is a combination of them, such as in "Ersatz Radical Innovation." Ersatz is when a company (e.g. Apple) combines two forms of semi-radical change to create of successful product that changes an entire industry.
One case study enumerated how a company can focus too much on
innovation and lose site of the goal, such as in the case of Xerox PARC. The creative process must have the crucial ingredient that's equally vital: commercialization. It's a symbiotic relationship. Another very relevant issue discussed is the Outsourcing of Innovation. Which developments should be kept in-house? Which should be shared and outsourced? Innovation is so critical that it can't be outsourced entirely, so partial and selective outsourcing (sharing) is done under the proven concept of "partnering." Innovation is obviously borrowed, and oft-times today, it's outright stolen.
Perhaps a lot of this new focus on "creativity," and "innovation" and "adaptability," and "co-operation" is because of the recent rise of China, India, and other parts of the world. Game Theory's concepts are sprinkled about in this book because Game theory is an underlying and also an explicit element in economics, business, and calculated risk taking. Because of the theoretical and applicable strengths of
Game Theory we see innovation and adaptability + Game Theory.
This book deserves more attention. The writing style is
reader-friendly and keeps your interest. The authors provide
numerous case studies, stats, tables & figures, theory, and
practicality, and specific ways on how to survive and thrive in
today's world. Great book that more people should know about.
The first word on innovation.......2006-05-01
We recommend this book to everyone involved in innovation. Whether you're involved as a creative thinker, a promoter of new products, a manager guiding the innovation process or an investor evaluating an innovative company, there's gold here for you. Authors Tony Davila, Marc J. Epstein and Robert Shelton compress a mass of research and experience in innovation practices into a set of rules and guiding principles. Then, they use stories, lucid explanations, charts and careful definitions to illustrate how these principles work. A few of these concepts could have been expanded profitably - for example, how to tell in practice when radical innovation is needed, how to determine if you're innovating too much or too fast, and how to sort out the best ideas without discouraging the creators of the rejected concepts. That's the only caveat; everything else is fascinating and immediately applicable.
An Important Guide to Establishing Innovation Processes.......2006-03-01
Many executives decide they want more innovation from their organizations . . . but aren't quite sure how to encourage that result. Relax. You can read and apply Making Innovation Work, and you'll do a lot better.
The authors clearly understand today's best practices in innovation both for breakthroughs and for on-going incremental improvements. They take what seems amorphous to many and make it as concrete as is desirable to do.
The basic approach entails helping readers to understand that the processes you use to innovate determine what kind and how much innovation you will accomplish. From there, the book focuses on how to use a process that permits all of the kinds of innovation to prosper that the company's strategy pursues.
While many such books exhort everyone to go for breakthroughs, Making Innovation Works also explains when it's appropriate to have a more defensive innovation strategy . . . but to stay in the game . . . rather than to fall behind by being too defensive.
For me, though, the book really hit its stride in chapter six where the appropriate measurements are described to identify how your innovation process is doing. The book became even more impressive in chapter seven where incentives for innovation are explained. Chapter eight on how to learn innovation is perhaps the most pivotal section in the book. Chapter nine on creating a supportive culture for innovation was also solid.
I was pleased to see that Making Innovation Work looks beyond just innovating products and processes. The book also addresses business model innovation, perhaps the most important subject for innovation.
The only weakness I found in the book came in describing business model innovation and how to pursue it. The authors have too narrow a view of what's involved in business model innovation. They need to become more familiar with the less frequently cited best practices in business model innovation. Although their bibliography on innovation is a marvelous one, I was surprised to see how thin it is on the subject of business model innovation.
Until a better overview of how to manage innovation comes along, Making Innovation Work will be the standard reference.
My review is addressed to undergraduates.......2006-02-25
It is a good book that clearly shows models to map the different types of innovation and the problems involved to manage it.
A Fresh Look at Nothing New.......2006-01-21
There is a dire need for a fresh look at innovation.
Contrary to popular belief, the authors assert, much of what is held as common wisdom regarding how innovation is managed is wrong. Tony Davila, a faculty member of Stanford's Graduate School of Business, Marc Epstein, a research professor at Rice University's School of Management, and Robert Shelton, managing director of Navigant Consulting's Innovation practice write that contrary to popular belief, innovation:
* Does not require a revolution.
* Is not alchemy
* Does not require a "creative" culture.
* Is not solely about processes and stage-gate tools.
* Does not focus exclusively on new technology.
* Is not needed in copious quantities.
The authors write that innovation, like many business functions, is a management process that requires tools, rules and discipline. It needs to be measured and promoted if sustained, high yields are going to be delivered. It is a necessary ingredient to safeguard an organization's tangible and intangible assets. In short, it is a vital and must be managed.
To do so, the book identifies seven rules:
1. Strong leadership encourages value creation.
2. Innovation is a vital part of an organization's mentality.
3. Innovation matches the organization's business strategy.
4. Creativity and value creation are balanced.
5. Seek to neutralize forces that discourage good ideas.
6. Networks, not individuals, are the building blocks of innovation.
7. Metrics and rewards make innovation manageable.
Execution of innovation is not difficult, the authors conclude. It is similar to other management activities, such as manufacturing or financial control. There are no secret formulas. This book replaces the myths and half-truths with clear and concise thinking on how to manage and execute innovation.
Book Description
The successful implementation of health information systems in complex health care organizations ultimately hinges upon the receptivity and preparedness of the user. Although the Information Age is well underway, user resistance to information systems is still a valid concern facing the informatics community. This book provides effective management strategies to health care administrators, for the productive integration and maintainance of such information systems. The Second Edition covers three main areas: technical skills, project management skills, and organizational and people skills, including the practical implementation strategies necessary to make the system an operational success. The text will be complemented by 40 illustrations and 20 tables, as well as providing more guides and "how to" information, which are of great use to the reader. Key topics include: setting the stage; strategic vision, direction, and project planning; critical issues in project planning and management; critical design issues; the implementation process; negotiating political minefields; the critical role of leaders and leadership; dealing with end stage people issues; evaluating project success; managing the altered organization; and organizational and personal preparation for the future. The audience for this book consists of those who require sophisticated health information systems, namely health care administrators, CEOs, clinicians, IT developers, librarians, and professors.
Book Description
When The Knowledge-Creating Company (OUP; nearly 40,000 copies sold) appeared, it was hailed as a landmark work in the field of knowledge management. Now, Enabling Knowledge Creation ventures even further into this all-important territory, showing how firms can generate and nurture ideas by using the concepts introduced in the first book. Weaving together lessons from such international leaders as Siemens, Unilever, Skandia, and Sony, along with their own first-hand consulting experiences, the authors introduce knowledge enabling--the overall set of organizational activities that promote knowledge creation--and demonstrate its power to transform an organization's knowledge into value-creating actions. They describe the five key "knowledge enablers" and outline what it takes to instill a knowledge vision, manage conversations, mobilize knowledge activists, create the right context for knowledge creation, and globalize local knowledge. The authors stress that knowledge creation must be more than the exclusive purview of one individual--or designated "knowledge" officer. Indeed, it demands new roles and responsibilities for everyone in the organization--from the elite in the executive suite to the frontline workers on the shop floor. Whether an activist, a caring expert, or a corporate epistemologist who focuses on the theory of knowledge itself, everyone in an organization has a vital role to play in making "care" an integral part of the everyday experience; in supporting, nurturing, and encouraging microcommunities of innovation and fun; and in creating a shared space where knowledge is created, exchanged, and used for sustained, competitive advantage. This much-anticipated sequel puts practical tools into the hands of managers and executives who are struggling to unleash the power of knowledge in their organization.
Customer Reviews:
Documented and thoughtful.......2004-04-16
This book made me discover knowledge management. It is very well documented, very thougthful, easy to read... An excellent starting point.
Knowledge Enabling not KM !!.......2002-06-18
I had a pleasant surprise when a friend of mine decided to gift me "Enabling Knowledge Creation" by Georg Von Krogh, Kazuo Ichijo and Ikujiro Nonaka. It forms a sequel to "the Knowledge Creating Company" co-authored by Nonaka and Takeuchi published in 1995 . The first book was a seminal work which has profoundly influenced my views on Knowledge Creation (Nonaka refuses to entertain the concept of KM , resolutely denying that Knowledge
can ever be managed!) along with writers like Tom Davenport and Larry Prusak. However, the first book was open to a lot of criticism saying that it was just too "theoretic", "vague" and "generalised" ...Nonaka et al try and get more hands on, and tool bookish with this book.
However, this book is likely to disturb people who have read and formed ideas about KM by reading works of the American thought leaders.
In the start of the book the authors try and make the difference explicit.
In a passage titled "what's wrong with knowledge management?" they spell it out :
Pitfall I: KM relies on easily detectable, quantifiable information.
Pitfall II: KM is devoted to the manufacture of tools.
Pitfall III: KM depends on a Knowledge Officer.
While the premises of Knowledge Enabling and Creation are:
Premise I: Knowledge is justified true belief, individual and social, tacit and explicit.
Premise II: Knowledge depends on your perspective.
Premise III: Knowledge Creation is a craft , not a science.
The authors reiterate that organizational Knowledge Creation involves five main steps :
1. Sharing tacit knowledge
2. Creating concepts
3. Justifying concepts
4. Building a prototype
5. Cross-leveling knowledge.
To facilitate this the following 5 enablers need to be in place :
1. instill a knowledge vision
2. manage conversations
3. mobilize knowledge activits
4. Create the right context
5. Globalize local knowledge
The book is rich in case studies which show how different companies that follow these concepts are growing in leaps and bounds and innovating over others who remain stuck in the KM paradigm.
The authors note that in the Knowledge journey companies can be mapped in 3 phases, which might or might not be sequential.
1. The Risk Minimisers , whose focus is capturing and locating knowledge. The tools they use are data warehousing, datamining, Yellow pages, IC-Navigator, Balanced Scorecard, Knowledge Audits, IC-Index, Business Information Systems, Rule-based systems [these firms still view knowledge as a resource that needs to be collected and managed]
2. The Efficiency Seekers, who focus on transferring and sharing knowledge. The tools they use are internets, intranets, Lotus Notes/Groupware, Networked organization, knowledge workshops, knowledge workbench, Best Practice Transfer, Benchmarking, Knowledge-gap analysis, Knowledge sharing culture, Technology transfer units, Knowledge transfer units, Systems Thinking
3. The Innovators who enable Knowledge creation are typically those who embrace a knowledge vision, managing conversations, creating the right context, mobilize knowledge activists, globalize local knowledge, professional innovation networks, new organizational forms, New HRM-systems, new corporate values, project management systems, corporate universities, communities and storyboards.
Highly Recommended!.......2001-03-21
Dust off those liberal arts degrees before opening this challenging treatise on knowledge management, written by a trio of academics who call themselves "constructionists," quote Sartre and speak passionately of "post-modernism." Their work explains how to gain initiative and constructive input from workers by modifying traditional command structures - a grounded approach that is much more realistic than the revolutionary conversions called for by other experts. Managers who balk at the thought of granting autonomy or increased access to their employees may well be converted away from their hierarchical dogma here. We at getAbstract particularly recommend the lively knowledge-creation case histories and the wonderful section explaining how companies can create valid, imaginative futures. (What if IBM had imagined a world in which software was more important than mainframes?)
Sustainable advantage through knowledge enabling.......2000-06-05
In the many publications on Knowledge Management, the writings by Von Krogh and Nonaka (and, in this case, Ichijo) stand out in a number of aspects: 1) their emphasis of knowledge "management" as an essentially human and social process 2) their emphasis on linking knowledge management with strategic focus and business results 3) the inspiring examples and writing style.
This book is a clear showcase of these elements. It provides a profound yet pragmatic guidance on the road to becoming a learning organisation. Where capturing & locating, and transferring & sharing knowledge are essential in achieving competitive advantage through knowledge, the real source of sustainable advantage is, as the authors claim, the continuous creation of new knowledge, as a result of developing a strategic vision and an enabling organisation and culture to realise that (evolving) vision.
Being involved in implementing a number of the concepts in our organisation, I am convinced this book provides many ideas and tools that will help today's corporate world in reshaping our business for the knowledge economy.
Highly recommended!
Focus on knowledge creation, but what about integration?.......2000-05-30
The author's of this book are leading thinkers in the KM field. Perhaps the best way to describe this book is as a sequel to Nonaka's earlier 1995 book. But, we all remember what happened to Scarlett, again a much touted sequel. Although this book was a slight disappointment since Nonaka has set reader's expectations a little too high with his earlier groundbreaking title "The Knowledge Creating ompany" that, for the most part, defined KM as we know it. An academic reader will appreciate they theoretical insights provided and extensive references to supporting literature. But there are some aspects that this book underplays: 1. Knowledge creation is fine, but knowledge integration is perhaps as important---an issue to which the authors pay little attention. 2. Excellent ideas aside, this book underplays the significance of empirical evidence and most cases tend to be descriptive qualitative analyses. 3. The role of technology is highly underplayed. 4. The book has "sufficient" overlap with the authors' research papers in the uropean Management Journal. For academic readers who have read those, this might be a little disappointing. 5. The concept of KM and it's relationship with innovation at architectural and component levels is not described in much detail.
On the positive side, you will find that: 1) Lots of issues that were barely touched upon in Nonaka's preceding book are described in further detail. 2) The book is very well written and the tone is accsible to both academic and non-academic readers. 3) the concept of BA is elucidated in further detail Readers who do not follow academic research journals might find that an interesting extension. 4) A link between strategy and KM is well illustrated. For businesses, KM is of little value if there are no results. The authors describe how to look for those results (or in lay terms, ROI). Academic readers will also find Nonaka's recent paper in a recent issue of Organization Science (2000) to be of much interest. Academic readers must also realize that the approach here seems to be "post modern," and indeed quite qualitative in the European research tradition.
To sum my opinion, this book is a worthy addition to the bookshelves; but, it is not to be read without reading Nonaka's preceding book "The Knowledge Creating Company." A word of warning is in order: Academic readers will enjoy this title however, managerial readers might find it a little heavy and abstract. Indeed, this book stands out of the crowd with three authors who are well respected in the American research circles---consequently, its high overall quality comes as no surprise. Recommended.
Book Description
Most learning on the job is informal. This book offers advice on how to support, nurture, and leverage informal learning and helps trainers to go beyond their typical classes and programs in order to widen and deepen heir reach. The author reminds us that we live in a new, radically different, constantly changing, and often distracting workplace. He guides us through the plethora of digital learning tools that workers are now accessing through their computers, PDAs, and cell phones.
Customer Reviews:
Highly Recommended.......2007-03-26
Jay Cross has written an invaluable book here for many reasons.
It can be hard to face up to, but the medieval basis of our education is suddenly and starkly out of touch with the needs of a post-network society. After reading this book, it's hard not to face up to that fact, because we now have a compelling, if nascent, alternative. The web enables a wholly different, but infinitely more effective approach to learning - through self-direction, and peer collaboration, motivated by individual choice, for example. As Jay points out, given the complexity and pace of change of 21st century life, we simply must change. (I have an 8 year -old daughter in school and it pains me to see what she's going through when it will all become obsolete in just a few years.) He outlines a kind of proto-pedagogical alternative, taking 'natural' learning as its starting point. He blends online/offline ideas with ideas from design, motivational psychology, etc, but is careful not to lose sight of learning objectives.
As an educator/trainer of over 20 years myself, I believe the book succeeds. Jay isn't a tremendous stylist, nor are his ideas wildly original, but he does exactly what is needed. He makes the case for alternative approaches to learning in a clear and simple way with plenty of diagrams, and examples. Although his focus is on corporate training, rather than traditional education, the implications reverberate. He brings years of training experience, together with an optimistic outlook to practice what he preaches. Having read his blog o ver the course of severalk months it has left it's makr on my own
The book is almost a metaphor for the kinds of challenge we face: hard to pin down, constantly changing, yet sometimes so obvious that we fail to see the significance. Jay doesn't have all the answers because that is the kind of (medieval) certainty he cautions against. He has brought an important discussion into the light of day. I don't know anyone who wouldn't benefit from this book.
Ken Carroll
Cycling to knowledge.......2007-01-03
Formal learning is like riding a bus, it goes, starts and stops when & where someone else decides (bus driver and urban transport committee) - informal learning is then like riding a bicycle, you choose the time, route and destination.
Way more learning happens in the coffee room than the classroom, but firms continue to spend way more on formal training than informal learning - there is a huge disconnect right there. The theme is similar in KM - formal structured tools, top-down mandates, ROI and the smells of project management dominance, do little to enhance agility, awareness, creativity, shared understanding and meaning - which add the real value.
Jay talks about unblended learning, emergence, grokking, envisioning, unconferencing, connecting, conversation, community, web2.0 and JDI (just do it). He makes the point that classes are dead, that every learner needs to cultivate an ecology, share via voicing, communicate using stories and build common text by collaborative editing (wikis).
Jay has written this timely book in the form of short stories and vignettes, recounting his experiences and perspectives. I did not find much new stuff, although there are many interesting examples and truths, but Jay managed to hit the high spots so often, I was nodding in agreement as I read along. Clearly we all have to assume responsibility for our own awareness, learning and critical inquiry. Jay neatly illustrates the tools, hints at the practices (which need more refinement) and paints the landscape.
http://informl.com/
10 Things I Like About This Book.......2006-12-17
First, a bit of context: I'm a seasoned (30+ years) practitioner in the field of leadership development, organizational learning, design and change. I've come to see that the work of transforming our organizations to new levels of consciousness, effectiveness and sustainability rests on our skill as practitioners and leaders in achieving a breakthrough an organization's capacity to learn how to learn--to be responsive to ever-increasing challenges and ever-increasing rates of change.
I've long been aware of the high cost and relative ineffectiveness of conventional "butts-in-seats" approaches to individual and organizational learning. The accelerating emergence of relevant learning strategies, methods, technologies and tools over the past decade has been encouraging--necessary but not sufficient. Jay Cross' wonderfully crafted Informal Learning constitutes a major breakthrough for all who care about transforming the organizations they serve.
10 THINGS I LIKE ABOUT THIS BOOK --
1. It does a magnificent job of explaining how we actually learn. It turns much "conventional wisdom" on its head. It provides us a cornucopia of innovative ideas for how to stimulate a culture of learning and innovation throughout an organization.
2. It's clear, clean and creatively written/formatted. I was pulled into and through the book by Jay's open, straight-talking, conversational style. His use of a variety of illustrations and juicy sidebar tidbits kept luring me to go just a bit further. The accessibility of information is superb.
3. It's alive. It's up-to-the minute and it anticipates a future where organizations are becoming increasingly alive and conscious because they've mastered the art of encouraging and nurturing informal learning.
4. Jay has distilled hard-earned wisdom from a rich collection of experts and pioneers--transformation-minded innovators and practitioner-theorists who I deeply respect--infinite players such as John Seely Brown, Etienne Wenger, David Cooperrider, Juanita Brown, David Sibbet, Verna Allee, Bruce Cryer and George Leonard.
5. Informal Learning is extraordinarily comprehensive and discerning. Jay has cast a wide net and presented us with only that which is value-adding. He has separated the wheat from the chaff.
6. It's an out-of-the-box paradigm-shifting book. He shakes up our traditional ways of thinking about learning, training and education in organizations. Informal Learning provides a variety of cures for "hardening of the categories."
7. It challenges and supports HR and Training departments to multiply their effectiveness in promoting and sustaining a vibrant informal learning culture. It provides pragmatic guidance in creative ways of weaving the work of people development throughout the fabric of an organization's operations.
8. It both challenges all organizational leaders to take direct responsibility for creating and maintaining an environment--a "learnscape"--where informal learning will naturally take root and flourish. It then provides a plethora of ideas for how to make that a reality.
9. I can easily visualize a number of generative ways of planting this book in organizations--ways that will cause relevant ideas to germinate, take root, grow and spread.
10. Best of all, Jay has built a strong case for treating an organization's approach to learning as a potential core business strategy. As we move into an era of ever-increasing change, an organization's capacity to learn and to innovate will become increasingly crucial to it's sustainability.
So -- Thank you, Jay Cross! Your book is a great piece of work--a major contribution to the world of organizations, leadership development, organizational design, learning and change. Leaders and practitioners everywhere will gain much by accessing and experimenting with the many ideas and insights you have provided us in this book.
Informality at its best.......2006-04-15
Informal Learning begins with a discussion of how the passage of time is accelerating. The 21st century will see the experience of 20,000 old 20th century years. That said, I'm hardly surprised to find this book on Amazon, eight months before it will be published. (I'm still editing the copy.)
As long as you're here, I'll share what the book is going to be about. People learn how to do their jobs informally - talking, observing others, trial-and-error, and simply working with people in the know. Formal training and workshops account for only 10% to 20% of what people learn at work. Most corporations over-invest in formal training while neglecting more natural, simple ways to learn.
Learning is that which enables you to participate successfully in life, at work, and in the groups that matter to you. Informal learning is the unofficial, unscheduled, impromptu way people learn to do their jobs.
Learning is adaptation. Taking advantage of the double meaning of the word network, to learn is to optimize the quality of one's networks.
Executives don't want learning; they want execution. They want performance. Informal learning is a profit strategy. Companies are using informal learning to:
* Improve knowledge worker productivity 20% - 30%
* Increase sales by Google-izing product knowledge
* Generate fresh ideas and increase innovation
* Transform an organization from disaster to record profits
* Reduce stress, absenteeism, and healthcare costs
* Invest development resources for maximum impact impact
* Increase professionalism and professional growth
* Cut costs and improve responsiveness with self-service learning
Training is something that's pushed on you; learning is something you choose to do. Many a knowledge worker will tell you, "I love to learn but I hate to be trained." Knowledge workers thrive when given the freedom to decide how they will do what they're asked to do. They rise or fall to meet expectations.
Informal Learning is about challenging workers (and executives) to be all they can be.
Books:
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- High Five (A Stephanie Plum Novel)
- History: Fiction or Science? (Chronology, No. 1)
- History: Fiction or Science? (Chronology, No. 1)
- History: Fiction or Science? (Chronology, No. 1)
- History: Fiction or Science? (Chronology, No. 1)
- History: Fiction or Science? (Chronology, No. 1)
- History: Fiction or Science? (Chronology, No. 1)
- Hotel Design, Planning, and Development, New Edition
- How to Say It At Work: Putting Yourself Across with Power Words, Phrases, Body Language, and Communication Secrets
Books Index
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