Reviews (4)

Want to success in the business? Be customer driven
After reading this book, your should know the importance of treating your customers well:external customers and internal customers. This book is easy to follow with clear structure and concise wording. This book also teach you how to be the customer driven company. Moreover, with the tool kits, you can really move from talk to action. "if you treat your customer good, they will come back, if your treat your products good, they never come back", which mean that to run a success business, you are not only have to produce high quaility products but also treat your Customers well. Check out from this book now to know how to be the customer driven company.

Very practical, worthwhile to read
This book is very worthwhile to read. It tells us
how important customer is. If a business only concerns
about its own product quality without placing a high
emphasis on their services to customers, that business
will not be able to success.

The book is especially useful for businessmen. It provides
7 imperatives for being a customer driven company. There
are also toolkits provided which help guiding businessmen
how to do in reality.

A readable book on how to become a customer-driven company.
The last quote in this book says it best, so let's start with that. According to retailing legend Stanley Marcus of Neiman-Marcus: "There are only two things of importance. One is the customer, and the other is the product. If you take care of customers, they come back. If you take care of your product, it doesn't come back. It's just that simple. And it's just that difficult." Richard C. Whiteley, co-founder of The Forum Corporation, a leading consulting group that works with companies on customer-focussed quality issues, has written a readable, relatively basic (that doesn't necessarily translate to simple) book on how to become a customer-driven company. Based on five years of research conducted by his company, the book reviews such maxims as "Saturate your company with the voice of the customer," and "communicate your vision constantly." While there is nothing particularly new about what Whiteley reports, he carefully catalogs the process of determining what customers want and how to give it to them. In so doing, he leads the reader along the customer's path, and provides insightful points to ponder. What's interesting about this book is the duality of the material presented. Of the roughly 300 pages in this book, one-third is an extensive appendix filled with various customer surveys, and explanations of other research tools. Need to create a histogram? No problem, it's in this book, as are explanations on force field analyses, process mapping and tracking and more. While informative as a reference tool, this last third is starkly different from the main text, which covers the message in a basic, quick-read way. In any case, reading both parts will give you a full sense of the customer-driven movement and some how-to's to begin the journey.

Should be required reading for any business manager.
Simple, interesting, focused. Whiteley hits at some of the 'sacred cows' of business and challenges managers/leaders to change all that is not in the customers' best interest. Could start a revolution in 'cost-centered', narrow-minded corporations. ... Read more

Book Description

Best-selling author Andy Kessler ties up the loose ends from his provocative book, Running Money, with this history of breakthrough technology and the markets that funded them.

Expanding on themes first raised in his tour de force, Running Money, Andy Kessler unpacks the entire history of Silicon Valley and Wall Street, from the Industrial Revolution to computers, communications, money, gold and stock markets. These stories cut (by an unscrupulous editor) from the original manuscript were intended as a primer on the ways in which new technologies develop from unprofitable curiosities to essential investments. Indeed, How We Got Here is the book Kessler wishes someone had handed him on his first day as a freshman engineering student at Cornell or on the day he started on Wall Street. This book connects the dots through history to how we got to where we are today. ... Read more

Book Description

The premier authority on organizational transformation takes his classic work to the next level, showing managers how to prevent a company from falling into aperiod of decline.

For three decades, Ichak Adizes, Ph.D., has studied the patterns of organizational growth and changes in businesses worldwide, from Bank of America to Domino's Pizza to small start-ups.In his breakthrough book Corporate Lifecycles, Dr. Adizes traced the typical corporate path from inception to decline.Now, in this long-awaited follow-up, he guides companies on the optimal path--and reveals how to sustain peak vitality.

Courtship, Infancy, the heady Go-Go years, and turbulent Adolescence.These are the stages every company goes through to reach what Dr. Adizes calls PRIME--the ideal stage of balanced creativity and discipline.At every stage, he shows how to anticipate and handle "normal" problems--whether with goal setting or managing employees--then quickly move on and up.Once in the PRIME stage, the author presents proactive measures for maintaining focus and vision, nurturing cohesion, and achieving "predictable excellence."He also offers strategies for avoiding the typical downhill path--starting with the Signs of Aging, such as risk avoidance; moving on to Aristocracy, where power and protocol dominate; and culminating in the final stages of decay:Recrimination, Bureaucracy, and Death.

Easing the pains of growing, MANAGING CORPORATE LIFECYCLES opens the way for every organization to thrive--indefinitely. ... Read more

Reviews (3)

Buyer beware
Shame on me for not reading the reviews. The information on the download version is readily available all over the net.

Avoid the e-book version
The hardcover and the e-book version should not be linked together because the e-book version is only 12 pages! Complete waste of money, I wish I could return it. I made the mistake of reading the review of the hardcover version (which is shown on this page too), and since I had already read the original book, I though I was making a bargain. The joke is on me... :-(

Helpful in sorting out a turbulent corporate adolescence
This book (an updated, improved version of Adizes' 1988 "Corporate Lifecycles") has given me an extremely useful framework for thinking about and improving the organization I work with. In the Adizes framework, my organization would be considered in Early Adolescence, and a turbulent Adolescence at that. What Adizes has helped me to more clearly see is that some of our turbulence is predictable and structural, just as each stage in the typical corporate lifecycle features problems that are normal (as well as problems that are abnormal or pathological). Furthermore, Adizes doesn't stop at diagnosis; he offers prescriptions for anticipating and addressing the tensions inherent in moving from one stage in the lifecycle to another. As a founder of more than one company, Adizes is also refreshingly candid about the difficulty founders face in helping their companies move through the stages. ("It's hard to see the picture when you're in it.") Adizes has helped me to articulate critiques and advocate solutions that I have long sensed dimly, but couldn't adequately pinpoint. Here's a great resource for your leadership team to discuss at a retreat or planning session -- and then to act upon. ... Read more

Book Description

"I dream, I test my dreams against my beliefs, I dare to take risks, and I execute my vision to make those dreams come true." -Walt Disney. Walt Disney's dreams, beliefs, and daring gave birth to captivating characters, thrilling theme park attractions, and breathtaking tales that have inspired the imaginations of generations of children and adults. Disney also launched an entertainment and marketing empire whose influence is felt around the world, and whose success provides a model of business excellence that can guide any company. Each principle is then examined in detail by illustrating the principle at work at Disney as well as at other successful companies.

Capodagli and Jackson have spent their careers studying Disney and teaching this unique management method to others. As consultants to companies ranging from Illinois Power to Bristol-Myers Squibb and Whirlpool, they have used the Disney principles again and again, and have seen them yield startling performance improvements. They have distilled this wisdom in THE DISNEY WAY. In this book, you'll learn how to: Give every member of your organization the chance to dream, and tap into the creativity those dreams embody; Treat your customers like guests; Build long-term relationships with key suppliers and partners; Dare to take calculated risks in order to bring innovative ideas to fruition; Align long-term vision with short-term execution. And more. No fairy dust. No magic wands. No wishing on a star. Just sound, effective management principles that stem from Walt Disney's values, vision, and philosophy. Lists of questions to ask and actions to take, along with real-life examples, will help you adapt the Disney Way to suit your company's needs. From the hiring and training of employees to the realization of a creative concept to exceptional customer service, every aspect of the Walt Disney Company is linked to Walt Disney's vision. ... Read more

Reviews (20)

Clear, accessible strategy for business success.
In this book, Capodagli and Jackson get right to the heart of adapting Disney's success to an individual or an organization. The format is clearly-focussed and explicated in a precise, insightful manner. It is obvious that the authors both have a wealth of experience where this kind of corporate transformation is concerned. It is unlike many business books in that in The Disney Way, the company examples are not your typical companies from the pages of Business Week and Fortune -- they are indeed major corporations but the tales and experiences related in these pages are deep and robust. The storyboarding chapter is worth the price of admission alone and the overall structure of Dream, Believe, Dare, Do really works as does the end-of-chapter practicals. A must read for anyone who is interested in capturing a bit of Disney's Midas touch.

Dream, Believe, Dare, Do!!
Those four simple words are at the root of the Disney business philosophy, established by Walt himself and carried on by Michael Eisner. I found this book to be both entertaining and informative. The business principles outlined by Capodagli and Jackson seem like simple, common sense - but bear repeating numerous times until more businesses adopt them. Principles like encouraging innovation and even failure, since you learn how *not* to do something...building on the strengths of your employees (development plans instead of demeaning performance appraisals) ... all will make any business work better. I found numerous ideas here that I will be applying in my workplace as well as to my personal life. This is a must-read for any manager who wants to motivate his or her team to really excel - and for any employee who wants to be his or her personal best.

A BUNCH OF MOUSE CRAP!!
In other words...kiss the guests A-- and treat them the way we show you in this book. As for employees just make sure they say yes to everything with a smile. Plain and simple. I actually worked for "house of the mouse" as we call it in Florida. Basically if you are not an enternainer (costumed mainly) you dont get treated as well. Your pay is almost in peanuts. Universal is NOT much different. At Disney WAY to many brown nosers and back stabbers. If you want a company like that then hey this is the book for you ;-)

Where's the beef?
In 30 words or less...vague. Not for those who want a real deep look inside the Disney company's way of doing business. This is a rock skipping across the water...

Lessons for Everyone from a Remarkable Life
Walt Disney was a remarkable man and without a doubt one of the leading influences of the 20th century. The authors have done a fabulous job of capturing the values he represented and practically transferring them to their clients and readers. Definitely a book to be studied by those who want to be Walt-like leaders.

Where one might take issue with them is in their claim that current Disney leadership is more "like Walt than Walt." Most who have truly admired Walt would be first to say that nothing could be further from the truth. If only there were a visionary like Walt at the helm today, standing firmly on the principles which Walt would not be pushed, prodded or persuaded from. It was his very insistence on representing only what was right and wholesome that made him a man to be admired and followed. Today's Disney leadership seems to have conveniently chosen to disregard that aspect of the man whose name, imagination and personality are responsible for the jobs they are fortunate enough to have.

As for promoting and defending Walt's leadership qualities, however, the authors have done an outstanding job. Definitely a valuable book. ... Read more

Amazon.com

Should a company's management be most accountable to employees,customers, or management itself? In Creating Shareholder Value,Alfred Rappaport argues that management's primary responsibility is to company shareholders. First published 12 years ago, the ideas put forth byRappaport have since become commonplace in companies around the world.

Rappaport eschews the most common measures of a company's performance,such as price-to-earnings ratios ("Cash is a fact, profit is anopinion"), return on investment, and equity measures, insteadconcentrating on developing a shareholder value approach that measures "valuedrivers" such as sales-growth rates, operating profit margins, andcost of capital. This revised and updated edition addresses the issuesof corporate downsizing and the social responsibilities of business. Italso includes new sections on the value of mergers and acquisitions andhow to implement a shareholder value system. Both managers andinvestors alike will find this book useful. ... Read more

Reviews (8)

Valuation Fundamentals
Given that investors value bonds by discounting future cash flows, it stands to reason that they value stocks in the same fashion. Alfred Rappaport is the founder of the shareholder value mindset which gained importance in the '80 and is widely accepted in this new millenium. Rappaport starts the book explaining that objections to using a discounted Cash Flow model do not hold. Strong arguments and empirical evidence is given to explain the market's valuation mechanism. What follows is a basic but thorough explanation of the 3 elements for valuing a company (cash flows , risk and the competitive advantage period). In the second part of the book, it will become clear for the reader DCF is closely linked to strategic analysis and is not in contradiction with stakeholder analysis, customer value analysis, Activity Based costing or any other tool. On the contrary, Rappaport shows DCF is a communication tool that helps investors understand a company's implied performance and how to (re)act. Together with the Valuation book from Copeland, Koller and Murrin this is the book you need.

The Classic -- From the "Father" of Shareholder Value
Professor Rappaport's revised and updated edition, provides a clear explanation of shareholder value concepts and application. One welcomed insight: he compares and contrasts the various shareholder methodologies (EVA and CFROI). As an indepent consultant specializing in shareholder value, I owe professor Rappaport and "Creating Shareholder Value" a debt of gratitude for introducing the critical link between corporate finance and competitive strategy. This is definately the "classic" work on shareholder value.

Good explanation of creating shareholder value, but...
Professor Rappaport's revised version of his 1986 book on creating shareholder value provides a good description of the value based management concept that he helped create. However, many of the chapters are stand alone sections that do not flow well together. In some chapters he does not provide enough depth on how this book can actually be used by managers. In addition, the chapters on using his concepts to formulate value-maximizing business strategies was somewhat lacking.

Nevertheless, the book was an easy read and many of his points were right on target. I would also highly recommend interested readers to check out "The Value Imperative" by Marakon Associates and "Valuation" by McKinsey & Co for more information on value based management.

MAKE MANAGING SHAREHOLDER VALUE A CORE COMPETENCY
This continues to be a good book for raising awareness that shareholder value can and should be managed. It was not that many years ago when a survey of CEOs found that they thought it was immoral and unethical to try to raise share price! I am also pleased to see that Mr. Rapparport discussed appluications to planning, M&A, compensation and organizational development. I belong to an organization (SHARE PRICE GROWTH 100) that develops new tools and processes to improve stock price, and we have found new ways directily link stock price, finance, investor realtions and capital management. We also found that each company has different investor sensitivities, and few stocks move directly with cash flow. The concepts that we use are described in THE 2,000 PERCENT SOLUTION. One of Mr. Rapparport's questions, "what is the most appropriate measure of performance" is a question that was asked of Peter Drucker in the 1970s. Dr. Drucker responded by saying that companies should use as many measures as possible, because we learn something different from each one. That is what really improves business. Confusion sets in, however, because people think that the measures used to improve business performance are also the ones investors focus on. That thinking has misled many to improve performance while watching the stock price and the multiple do nothing. Managing stock price should become a core competancy. With the right infomation, you will find your 2,000 percent solutions.

Great insights into aligning shareholder/stakeholder goals.
This book covers: investment and the meaning of shareholder value; unjustified conflict between gaining competitive advantage and creating shareholder value; short-comings of accounting; approaches to calculating shareholder value; business strategy; stock market signals to management; and executive performance. Rappaport stresses the unity of goals between shareholder and stakeholders. An excellent and insightful book. ... Read more

Book Description

A groundbreaking guide to mastering the most important leadership skills

Great Communication Secrets of Great Leaders gives anyone from managers to executives an unparalleled opportunity to do just that. John Baldoni explores the communication styles of many of the world's most influential leaders and extracts powerful lessons that leaders of all stripes can use to improve their communication skills and overall leadership effectiveness. Drawing upon his years of experience as a top leadership consultant, visionary and coach, Baldoni:

• Reveals the communications secrets of Jack Welch, Rudy Giuliani, Colin Powell, Peter Drucker, Winston Churchill, Steve Jobs, Katharine Graham, and many other influential leaders
• Distills the proven communication techniques of today's greatest leaders into core strategies and step-by-step solutions
• Develops guidelines for making the most of computer-aided presentations, videoconferencing, and other new technologies

Reviews (1)

AN INTRIGUING "HOW-TO" OF LEADERSHIP COMMUNICATIONS
Baldoni's "Great Communication Secrets Of Great Leaders" is a well-researched and highly readable "how-to" of leadership communications. This author knows his material, and presents it through the interesting device of linking principles to some of the world's leading communicators. It was refreshing to read a business-centered book that focus specifically on the communication aspects of leadership, which Baldoni obviously understands quite well. As a former professional actor, I also enjoyed how the author links dynamic presentations to effective performance. This book is well worth the modest cover price. A definite "buy!" ... Read more

Book Description

Unlike the M&A fever that gripped so many large, publicly held corporations in the 1980s, the mergers and acquisitions activity of the 1990s is primarily centered around small and midsize businesses. But the sale and purchase of these companies present a unique constellation of problems, pitfalls, and challenges that may lead the unprepared buyer or seller to disappointment, difficulty, or even disaster. In this book—the only mergers and acquisitions guide that focuses on small and midsize companies—experts from every profession and specialty related to the sale or acquisition of a business lead buyers and sellers step by step through each phase of the M&A process. Their aim is to help both parties avoid hazards and mistakes and arrive at a fair and mutually profitable arrangement.

Beginning with the basics, the book offers an overview of the market: the size and type of businesses covered; who the buyers and sellers are; why businesses are put up for sale; how to prepare a business for sale; and how to size up a business that is on the market. The book's second section looks at financial and valuation issues, a particularly important area when purchasing companies that are not subject to SEC regulations. Coverage includes normalizing historical financial statements, using financial forecasts, determining real ROI, valuation methods for midsize companies, and determining the value of partial ownerships, intangible assets, and business risk characteristics.

After a detailed examination of legal issues, the book explores the roles of outside professionals in the M&A process, including intermediaries, attorneys, accountants, business appraisers, and machinery and technical appraisers. The book concludes with a look at various ways of structuring the final deal and the pros and cons of each arrangement from both the buyer's and seller's perspectives.

With 36 self-contained chapters that can be read in sequence or consulted independently, Mergers and Acquisitions for Small and Midsize Companies is both a comprehensive M&A tutorial for newcomers to the process and an indispensable reference for professionals involved in any aspect of the buying and selling of small and midsize companies.

A Step-by-Step Guide to Buying and Selling a Business from a Distinguished Group of Recognized Experts

Mergers and Acquisitions Handbook for Small and Midsize Companies is the perfect guide for anyone who is selling a business or hoping to buy one. Each of the nearly 30 contributors is a recognized expert in a particular aspect of the M&A process. These authors explain their topics from the ground up, assuming no previous experience on the part of the reader and addressing the subject from every conceivable angle.

Areas of discussion include:

• Fundamentals of the mergers and acquisitions process
• Financial and valuation—normalizing historical financial statements, utilizing forecasts, valuation methods, and more
• Legal aspects—disclosure requirements, due diligence, advisor engagement letters, closing documentation
• The role of outside professionals—intermediaries, attorneys, accountants, business appraisers, and machinery and technical appraisers
• The deal itself—deal structures, creative financing strategies, a case study, pros and cons of ESOPs, and much more

Reviews (1)

The Sitting Bull of M & A Techniques & How To Win
IN "STRUNK & WHITE" STYLE MR. WEST PENNED THE PERFECTLY CONCISE GUIDE TO WINNING AT M & A. THIS SMALL BOOK IS A REQUIRED TEXT. NOTHING IS MISSING FROM ITS TEACHINGS. BUY IT AND READ IT. NOW, GO BACK AND REALLY STUDY IT. THANKS AGAIN THOMAS

DR. MARIO T. SCADUTO PH.D. ... Read more

Book Description

Will Your Organization Still Be Here in Ten Years?

It’s a familiar story: A company rises to become an industry leader. Competitors try to emulate it. Analysts rave about it. The CEO’s picture is splashed across magazine covers. Then the company stumbles, profits erode, and the stock plummets. How does this happen? Why do good companies so often go bad? More important, what can you do to prevent it from happening to your company?

In Revival of the Fittest, Donald N. Sull takes a provocative look at corporate failure and proposes a practical new model for effecting change that can vastly increase your organization’s lifespan. Ironically, argues Sull, leaders sow the seeds of failure during a company’s most successful times, when they make a set of commitments—whether to a core strategy, a key customer, or an innovative manufacturing method—that constitute the company’s success formula. Managers become so married to the formula that they can’t divorce themselves from it when the competitive situation changes. They respond to the future by doing more of what worked in the past—a phenomenon Sull calls "active inertia."

Based on extensive global research into successful and failed transformations across many industries, Revival of the Fittest introduces a three-step model for making transforming commitments—actions that prevent managers from reinforcing old behaviors in the face of change. Sull identifies five areas in which transforming commitments can be anchored—strategic frames, processes, relationships, resources, and values—and provides diagnostic tests, hands-on tools, and real company examples to show how managers can:

• Gauge their company’s susceptibility to active inertia
• Determine which commitment is right for a specific situation
• Appoint the best person to lead the charge
• Ensure that the new commitment sticks
• Avoid common mistakes that can sabotage the transformation effort
• Weigh the personal risks associated with leading corporate change

In an unpredictable marketplace, commitments can make and break a company. But Sull shows that corporate demise is not inevitable. Through transforming commitments, revival of the fittest is possible—and managers can make the difference. ... Read more

Reviews (12)

The strong shall become weak, and the weak strong again
At some point in a great battle between good and evil, at least as portrayed in pop culture, we can expect the villain to gloatingly assert: "It is your very goodness that will make you weak and fail." Professor Donald Sull is no super-villain but makes a similar, though rather more developed, claim about the best businesses. Rather than blaming the failure of a previously excellent company on incompetence, corruption, laziness, or lack of imagination, Sull locates the problem of stumbling giants in active inertia: the tendency of management to respond to disruptive changes by accelerating activities that succeeded in the past. In Revival of the Fittest, Sull analyzes this barrier and helps managers tackle the demanding task of overcoming it.

To overcome active inertia, Sull recommends neither evolutionary nor revolutionary change typically prescribed for faltering champions. Instead he explains the power of transforming commitments. Commitments matters, he explains, in that they both enable effective management and can disable it when they no longer fit what is needed. Managers select, make, honor, and less often remake commitments or binding actions by investing capital, making personnel decisions, exiting a business, making public promises, making public promises, forging relationships with resource providers, writing contracts, or by manipulating information. Commitments are a powerful tool for creating the desired future but they also become cognitive, cultural, and structural shackles that prevent a company from changing - even when the need to change is clear to all.

Companies take shape at the beginning of the "life cycle of commitments" through defining commitments consisting of strategic frames, resources, processes, relationships, and values. The character of the organization hardens over time as managers make reinforcing commitments large and small. The best companies develop a "success formula" that becomes the envy of competitors and the source of best practices for writers and consultants. This story takes a tragic turn when, eventually and inevitably, a gap opens and widens between the nature of the company and the business environment. The only way out - if one exists at all - is through transforming commitments that require boldness, prudence, and tenacity.

Sull uses pairs of companies to show how some have spiraled down while others successfully made and kept their transforming commitments. IBM's justly famous transformation under Gerstner exemplifies the latter, though this is only one of a wide range of illuminating examples in the book. Sull casts light on the active inertia trap which can arise from the basis of any of the original defining commitments. He follows this with eight risk factors to check for and some diagnostic tests to administer. If transforming commitments fit your situation, you must then choose the right anchor. This may be a new strategic frame but may also be new resources, processes, relationships, or values. The right anchor needs to be worked on by the right person who gives the transforming commitments traction by making commitments credible, clear, and courageous.

Since commitments are powerful tools, Sull's cautious advice includes an unflinching look at seven common mistakes that can lead transformation efforts off-track. Neither does Sull allow managers to anticipate the benefits without also appreciating the personal costs. The book does not try to delve deeply into every relevant aspect of each stage, allow the book to convey vital points while remaining slim enough for busy executives to actually read.

Revival of the Fittest
I was in the author's class 11 years ago at Harvard Business School when he was getting his degree. The high quality of Don's book Revival of the Fittest is no surprise - his insights were always superior (deep, relevant, and entertaining). No one else came close.

Revival of the Fittest is built on persuasive and powerful arguments that become actionable through the mechanisms/exercises he identifies.

I'm passing the book to each member of my company's executive team - I've said that it's a must read.

I hope that the incumbent set in our industry doesn't read this. Applause for their "active inertia" while the sharp blade of significant innovation gets them in the soft underbelly. So much of the framework was relevant even for early stage organizations like ours - recognizing the active inertia enables us to take greater chances in seeking collaborative arrangements with these potential competitors. Revival of the Fittest and other recent research-based books including Creative Destruction demonstrate that change in industry after industry comes from outside the firm - and significant innovation comes from the margin of the industry. I particularly enjoyed learning how the "success formula" for an organization often mutates into blinders and millstones - early insights and truths become shibboleths.

I read business books constantly - this one is a keeper!

Successful Second Acts
F. Scott Fitzgerald wrote in 1940 that there are no second acts in American Lives. Professor Sull's witty, crystalline prose in Revival of the Fittest offers a rebuttal. Sull's case-studies of corporate rebounds and managerial reinventions provides a global array of second acts.

Contrary to the following review, Sull's wise reflections, his acute hindsight, on what separates mid-course corporate successes from failures is full of insights, though not quick-fixes or one-size-fits-all makeovers.

Rather, Sull provides an array of diagnostic tools for managers, helping them isolate the "active inertia"--a term he has coined and that is gaining currency among business theorists--and sift through the vast horizon of possibilities and risks managers in crisis must face.

A multi-disciplinary work with a global perspective, Revival of the Fittest is both informative and potentially transforming.

Disappointing - lots of hindsight with no insight
Not very impressed.

This book is based upon many interviews and observations with over 2 dozen companies around the world. However its all observation based upon hindsight of 'what' happened, with no real revelations into 'why'.

The selections are not convincing.

There's plenty of reference to Asahi Breweries in Japan who literally bet the whole Company on one idea about creating a market for Dry Beer. It paid off, but such a venture was very dangerous. Other Companies are studied that also bet everything yet didn't pay off; but there's no real insight into why the outcomes were different.

The index is poor; many Companies mentioned in the text don't appear in the Index. Compaq appears indexed under both 'failed transformations' and 'successful transformations' - so I re-read the relevant pages. It's the same anecdote, simply saying that what they did was a success 1991-98, but then caused their failing post-98? So what should they have done? If following the same action is deemed a 'fail' over 10 years, is it appropriate to still call it a 'success' over 8 years?

It's a history lesson, but with no real tools & techniques to take away for the future.

Refreshing look at the rise, fall, rebound of companies
This is an excellent, pragmatic, and thoroughly engaging book on how successful companies can find themselves at risk for failure due to what Sull coins as "active inertia". This concept is illustrated with a great set of corporate examples which are different from the ones used in many other business texts -- and this is a key feature which sets the book apart from its competitors. Sull walks the reader through some very useable steps for how companies can transform themselves and avert obsolescence. A great book, greatly written. ... Read more

Reviews (51)

A rich account of aerospace industry during the Cold War
I picked this book up after having read Don DeLillo's Libra, which pictures the protagonist, Lee Harvey Oswald, at a USAF base in Atsugi, Japan during his military service. The U2 spy plane that was based there definitely adds to the aura of mystery and fatefulness that pervades the whole of DeLillo's excellent novel and aroused my curiosity. Rich's account of the Skunk Works' history entirely satisfied my interest in this mysterious airplane. The book can be read in different ways: as a thrilling account of the Cold War, a captivating portrait of the complex and brilliant designer Kelly Johnson, and as a treatise on corporate innovation, cutting edge management methods and industry-government relationships. I found the book to be exceedingly well written, with just the right dosage of technical details, humour, personal anecdotes and historical drama. The integration of 'other voices' from test pilots, high level policy makers and air force top brass complements Rich's narrative nicely and helps in modulating the sometimes breathless pace. An excellent book. I enjoyed it a lot.

Skunk Works - Behind the Scenes of U.S. Secret Aircraft
This is a great book. It gives a behind-the-scenes look at the development of often secret aviation technology over the past 50 years. The book pulls no punches and tells the stories of failures as well as successes. Written in an easy to read style, the book contains enough technology for the most savvy reader. The book is full of technical and financial information plus humorous anecdotes about developing planes like the U2 spyplane, the F117A Stealth Fighter, the SR-71 Blackbird and others. It also covers the politics behind the sale and production of these aircraft. I could not put this book down! Highly reccommended.

Awesome aerospace/military history
Skunk works is the true story behind the coolest, high tech, top secret, aerospace engineering division operated by the Lockheed Martin corporation. Forged by legendary U. Michigan alumnus Kelly Johnson, the Skunk Works has created the coolest planes of recent memory, including the SR-71 Blackbird (currently visible on the flight deck of the Intrepid Aircraft Carrier in NYC), the F117A Stealth Fighter, and the U2 spy plane. The F22 Raptor and the Joint Strike Fighter are also creations of the Skunk Works, but are not covered in this autobiography written by the successor to Kelly Johnson, Ben Rich.
This quick read is well worth your while for a couple of reasons. First, the stories behind the creation of these planes is very interesting. For example, the Skunk Works engineers found the mathematical key to the stealth design buried within an obscure physics journal originally published in Russian. Oddly, the Russians military never capitalized on the principle, despite urgings from the article's Russian author. Furthermore, when the stealth plane was first designed and kept in a secret hanger infested with some bats, the bats couldn't detect the plane with their "sonar-like" sense, and they ended up crashing into it.
The book also makes for excellent military and therefore world history. Accomplishments of the U2 spy plane and the F117-A Stealth Fighter are covered in depth and literally changed the course of world events during the Cold War, the Vietnam War, the Korean War, the Gulf War, and other skirmishes. Many interesting, behind the scenes (formerly classified?) missions are also revealed in this book. Ben Rich also speculates on the future types of planes currently on the minds of engineers at the Skunk Works, and the implications will change how wars are fought in the future.
For readers who liked this book, NOVA recently published a video on the creation of the Joint Strike Fighter, a contract fought over between the Skunk Works and the Phantom Works of Boeing. These do all fighters are amazing, and this video is definately worth watching for those who enjoyed "Skunk Works."

superb
If you want a great read on U2's Blackbirds and Stealth, then THIS is the book...

Fascinating, well written, informative and a damned fine read.

Story of the Skunk Works told with style
Ben Rich started off as a bright new engineer at Lockheed Martin. He never imagined that taking a job under the famously fearsome Kelly Johnson would lead to a career that took him to the top of the aerospace defense industry. He has an interesting story to tell and does so with style. We catch a glimpse into the inner-workings of the United States defense industry. It's a spellbinding tale about legendary airplanes interlaced with amusing anecdotes. Being an engineer in the defense industry myself, I heartily recommend this book to engineers and anybody else interested in technology. ... Read more

Book Description

Hailed as the Thomas Edison and Henry Ford of Silicon Valley, Robert Noyce was a brilliant inventor, a leading entrepreneur, and a daring risk taker who piloted his own jets and skied mountains accessible only by helicopter.Now, in The Man Behind the Microchip, Leslie Berlin captures not only this colorful individual but also the vibrant interplay of technology, business, money, politics, and culture that defines Silicon Valley.Here is the life of a giant of the high-tech industry, the co-founder of Fairchild Semiconductor and Intel who co-invented the integrated circuit, the electronic heart of every modern computer, automobile, cellular telephone, advanced weapon, and video game. With access to never-before-seen documents, Berlin paints a fascinating portrait of Noyce: he was an ambitious and intensely competitive multimillionaire who exuded a "just folks" sort of charm, a Midwestern preacher's son who rejected organized religion but would counsel his employees to "go off and do something wonderful," a man who never looked back and sometimes paid a price for it.In addition, this vivid narrative sheds light on Noyce's friends and associates, including some of the best-known managers, venture capitalists, and creative minds in Silicon Valley.Berlin draws upon interviews with dozens of key players in modern American business--including Andy Grove, Steve Jobs, Gordon Moore, and Warren Buffett; their recollections of Noyce give readers a privileged, first-hand look inside the dynamic world of high-tech entrepreneurship.A modern American success story, The Man Behind the Microchip illuminates the triumphs and setbacks of one of the most important inventors and entrepreneurs of our time. ... Read more

Reviews (1)

What Your CEO Needs to Know!
Finally something I can use to convince my CEO that reputations can and should be managed! The book provides a comprehensive overview of the critical success factors of reputation management and discusses a number of interesting case studies to underline key points. Though its a complex subject the book reads pretty easy and I could relate most of it to my daily work as a communications professional. To me, the bottom line is I can now start a discussion in my firm about the need for managing reputation and use solid arguments based on both research and other companies' best practice. It seems that being able to explain what drives reputation and who should be involved in managing it is half the work... ... Read more

Book Description

Not since the days of Lee Iacocca at Chrysler has an auto executive captured the imagination of his industry and the broader business world as Carlos Ghosn of Nissan.

Ghosn is responsible for one of the most breathtaking business turnarounds of all time -- taking the near-fatally wounded Japanese automaker Nissan from the brink of ruin back to profitability in just two years. His achievement is all the more astonishing because he did it as a Westerner operating in Japan's closed, tradition-bound business environment.

In Turnaround, business journalist David Magee presents the first behind-the-scenes look at Ghosn, his management methods, and his role as the leader of a new generation of global business managers.

A Brazilian of Lebanese descent, Ghosn has led companies to success in the United States, South America, France, and now in Japan.

Turnaround reveals how he remade Nissan by defying the business and cultural taboos that in the past have stifled the economy in Japan; how he cut costs, smashed Nissan's Keiretsu relationships, and revived the company's design innovation, quality standards, and product.

Readers in and out of the auto industry will learn the essential management techniques that have helped Ghosn achieve spectacular business results on four continents:

• The importance of transparency in all business dealings
• Planning via a cross-functional team approach
• Cost containment through benchmarking
• Breaking cross-cultural barriers among employees
• Sparking innovation through empowerment

Combining the dramatic story of the remarkable Nissan turnaround with new lessons for success in a global economy, Turnaround belongs on the desk of every manager everywhere.

Reviews (19)

The Passionate Pragmatist
Although Magee does indeed provide a brilliant analysis of how Carlos Ghosn "rescued" Nissan, the value of this book extends far beyond that admirable achievement. What we have here is a probing and informative analysis of a leadership and management style which provides important lessons to decision-makers in all organizations (regardless of size or nature) which currently struggle to compete successfully in their respective marketplaces. In a sense, the same skills required by a successful turnaround are also valuable in organizations which are currently prospering: "Be transparent and explain yourself in clear, lucid terms. Do as you say you are going to do. Listen first; then think." Prior to being reassigned by Renault to the Nissan organization, Ghosn had led the revivals of Michelin South America, Michelin North America, and Renault. According to Magee, he "may be the only person to have four verifiable corporate turnaround efforts on four different continents." Serious problems had developed at Nissan in the early 1990s. How serious? It was "strapped by $22-billion in debt, inflated supplier costs, and new product development that was at a standstill." This book explains how, under Ghosn's leadership, Nissan not only solved those and other problems; it regained a position of profitable and prominent leadership in one of the most competitive of industries.

As indicated previously, Ghosn is a firm believer in transparency throughout all areas and at all levels of an organization. For that reason, prior to the merger of Renault and Nissan, he created cross-company teams (CCTs) which "were charged with finding possible synergies between the companies and exploring specifically how these might work if an alliance was formed." Teams studied product planning, vehicle engineering, power trains, and purchasing. It is incomprehensible to me that Ghosn, a native of Porto Velho, Brazil, could convince those who worked in two such different companies, in cultures with such different values, to work effectively together. He advocated the same strategy which had succeeded so well at Michelin North America: "Assume nothing (find answers within the company), work fast, and earn trust and respect with strong results." As American colleague Jim Morton once said of Ghosn, "he knows how to get a commitment."

Obviously, throughout his career thus far, Ghosn has demonstrated a specific style of leadership and management which Shiro Tomii, a senior vice president in Japan, once summarized as follows: He establishes high, yet attainable goals; makes everything clear to all roles and levels of responsibility; works with speed; checks on progress; and appraises results based on fact. In this context, Magee notes by creating intracompany transparency, "only the facts survive. [Ghosn] loves it when data and analysis win and loses his patience when individuals persistently argue a point with nothing to back it up."

Once the Nissan Revival Plan (NRP) had restored hope, profits, and confidence in the company, Ghosn focused everyone's attention on NISSAN 180 which involves even more ambitious objectives and requires even greater commitments to achieve them. "So questions remain as to exactly how high and how far Nissan will go in its ultimate quest." However, this much is certain: "Renault took a chance. Ghosn went to work. And Nissan responded. Together, they changed world business forever." That is the story which Magee has told in this book and he has done so with rigor and eloquence.

unique story
the story of Carlos Ghosn was amazing. I have followed the resurgence of Nissan but did not know how it was done. There is no business book that tells a global management story like this one.

Ghosn-san
The man they hail in Japan as Ghosn-san, superhero, is unbelievable. He changed the work the Japanese approach work and turned Nissan around.

This book tells the story of how he did it and the techniques he used. I read it in two and a half hours and learned from it.

This book is useful if you want to learn about Ghosn, who I think will be taking over the business world in America very soon.

The author obviously knows Ghosn and writes from an inside perspective. He uses many quotes which help me understand his personality. He also quotes many Nissan Japanese executives and that is rare.

I wish maybe he would have told more juicy negative details instead of teaching how Ghosn-san did it, but still, this book is worth reading.

strong leadership title
I got this book to learn about Carlos Ghosn because I work at a domestic in the auto industry. I have since shared it with several of my colleagues because I found it to be a useful leadership guide.

It different than I first thought it would be. I thought it would be a narrative look at what happened at Nissan. Then I realized it was a "lesson" approach and appreciated the approach and writing.

I recommend it for anyone wanting to learn about Carlos Ghosn and his interesting ways of working.

awful writing kills interesting subject
Being an auto-enthusiast, I was very interested in the story of Nissan's turnaround. However, Magee's abysmal writing made it very hard to read the book. It is written at a 3rd grade level, with short sentences that convey no point whatsoever. The plot wanders aimlessly and points that can be summed up succinctly in one sentence are restated over and over again. It is amazing that Carlos Ghosn, being the brilliant business mind that he is, ever allowed a book of such low caliber to be written about him. Maybe Ghosn's next turnaround project should be having someone competent rewrite this book so that it's not a pain to read. ... Read more

Book Description

This book includes a new strategic concept to enable managers to understand and anticipate where the value in their business is headed. It identifies and articulates the key principles that form the basis of a sound strategy: understanding the customer and innovative business design. Techniques to help companies develop profitable business models are described. It shows companies how to act aggressively to capitalize on the opportunities they create. ... Read more

Reviews (11)

Mastering an "Acquired Skill"
According to Slywotsky, there are three phases of what he calls "value migration": In "inflow," the initial phase, a company starts to absorb value from other parts of its industry because its business design proves superior in satisfying customers' priorities; the second phase, "stability," is characterized by business designs that are well matched to customer priorities and by overall competitive equilibrium; in "outflow," the third phase, value starts to move away from an organization's traditional activities toward business designs that more effectively meet evolving customer priorities. Slywotsky explains that Part I of this book describes the basic rules of Value Migration" and the workings of what he refers to as "the new game of business." As when playing chess, winning at this game requires an understanding of the individual pieces (i.e. when to deploy them and how to capture them). One must master basic moves and simple techniques such as openings, traps to avoid, end-game moves, etc. It is also important to understand the the importance of controlling (as in chess) "the four central ones." In business as in chess, one must become familiar with certain "basic patterns" which will ultimately determine success or failure. These "patterns" are examined in Part II. There are seven: Multidirectional Migration (from steel to materials), Migration to a Non-Profit Industry (airlines), Blockbuster Migration (pharmaceuticals), Multicategory Migration (coffee), From Integration to Specialization (computing), From Conventional Selling to Low-Cost Distribution, ands finally, From Conventional Selling to High-End Solutions. Slywotsky shifts his attention in Part III to explaining how to play the Value Migration "game" well on a day-to-day basis. He identifies certain specific initiatives to take which help to (a) avoid value loss and (b) preempt the next cycle of value growth. "The final chapter of the book focuses on the increasingly high-stakes nature of the decisions that determine future value growth."

There are more than a dozen charts which effectively illustrate Slywotsky's key points. For example, Figure 15-1 presents "The Grand Masters of Value Growth" and identifies them, their key moves, and the value each created (in terms of billions of dollars) from 1980 until 1994. All of these visionary leaders (Welch, Walton, Vagelos, Gates, Petersen, Grove, Malone, Platt, Noorda, Iverson, and Kelleher) focused on making the right moves and thereby created enormous value for their respective companies. "Business chess is a game that is as demanding as [football and basketball], but in very different ways. It is not physical stamina, but stamina of thought. It is not transactional concentration, but constant shuttling between a focus on the current move and imagining the next several moves out. It is an unrelenting exercise of matching patterns on the current game board to the countless patterns in your mind." Slywotsky concludes the final chapter with a suggestion that this question be asked: What five moves will capture most of the given industry's value growth? "Give yourself a couple of months to analyze and assimilate the grand masters' key moves. Then come back and determine the five (or fewer) critical moves for your company." In this exceptionally thought-provoking book, Slywotsky indicates why he would be an indispensable guide throughout that difficult but necessary process.

High level view
This book presents a very high level strategic view of business. Slywotzky emphasizes the value of a good business design vs reliance on technology for growth.For example, there is the simplified view of why IBM became a slogging giant in the early 90s. Lou Gerstner would certainly like to add to it

However there is good set of tools to understand your business better. I find his radar screen tool particularly useful to visualize business competitors and analyze the direction of value migration.

All said, this book is worth reading..just don't expect ttoo much.

Insightful and influential
I discovered this book during a business trip to Phoenix in 1996, and it still occupies a space on my special shelf of books that have deeply influenced me.

As the most basic level the concept of value migration is business design, and the ability of that design to evolve in a dynamic market. The simple map of where your business, which is a function of design, is summed up in three states: value inflow, stability or outflow.

At a more complex level, this book provides seven patterns that serve as markers to show how value can migrate from one business (or industry) to another. The final part of this book shows how the concepts and patterns can be applied in your own business.

The foregoing may erroneously give the impression that this book is heavy on concept and lite on practicality. It's not. The material is meticulously presented, reinforced by recognizable examples drawn from industries, and prescriptive measures are laid out with realism and pragmatism. The concepts are what have influenced me. After reading this book I've looked at certain industry trends differently, and after eight years my observations bear out the premise of this book. This is highly actionable information that is invaluable to any company that wants to prevent the outflow of value, while capitalizing on stability and finding ways to create inflow. A more recent book that meshes nicely with this one is "The Ultimate Competitive Advantage: Secrets of Continually Developing a More Profitable Business Model" ISBN 1576751678. In fact, that book extends this book in many ways, especially with respect to business design, and further proves the concepts Slywotzky set forth in this book in 1996.

Great book!!
This book is a must for consultants and managers in general. It provides you with basic understanding of how the value proposition that companies have to deliver to customers has changed and will keep on going. Since the very first pages Slywotsky challenges you to think about the issue customer needs vs. customer priorities, and explains how the business design should change accordingly to these priorities. A must buy.

A whole new way of thinking for me
I normally do not read business books of this book's scope; however, it was recommended by my co-author for an article on which we were collaborating. Our challenge was to support the assertion that the U.S. software industry is being supplanted by India, and a shift in off-shore development resources from the U.S. consumer to Indian provider is actually moving to Indian consumer to Russian and Egyptian providers. This is obviously value migration in its truest form and is consistent with the ideas set forth by Mr. Slywotzky in this book.

Using the inflow-stability-outflow model that is one of the basic paradigms in this book, we developed a model upon which we were able to build a case supporting our assertion. More interestingly, the whole concept and numerous case studies that reinforce it throughout the book provided me with a deeper understanding of the macro and micro issues of value migration - this was eye-opening.

My favorite chapter is at the very end of the book. Titled, "Five Moves ... or Fewer," it showed how major companies captured or recaptured the biggest share of value available, and each of the examples involved five or less moves. I was personally fascinated.

Although my initial reason for reading this book was to research an article, it has changed my way of thinking on a number of levels that go well beyond a single-topic research project. The writing style is clear and engaging, and the concepts and ideas ring true. I am giving this remarkable book 5 stars and highly recommend it to anyone who wants to see a bigger picture of economics or develop a keen business strategy. ... Read more

Book Description

Praise for Flying High

"If you want to know what it takes to develop a great business–not just an airline–Flying High is a must-read. James Wynbrandt does an excellent job of bringing JetBlue founder David Neeleman’s amazing personal journey and business innovativeness to life in an interesting and exciting manner."
–Dave Sclair
Publisher Emeritus, General Aviation News

"James Wynbrandt adeptly captures the elements that have made David Neeleman and his remarkable airline, JetBlue, a huge success. Flying High is a tribute to Neeleman’s true depth. By developing a visionary business model and the right communications strategy, he was able to pilot JetBlue to profitability with finesse. It’s a must-read for people in any business seeking success."
–Howard J. Rubenstein
President, Rubenstein Associates, Inc.

"In Flying High, James Wynbrandt tells the completely beguiling story of how a former Mormon missionary with attention deficit disorder and a history of both bankruptcy and getting fired from a high-profile job created one of the great airline successes of our time. What is David Neeleman’s secret at JetBlue? It’s a new concept called understanding what your customers really need. Neeleman’s fanatical attention to customer satisfaction, employee relations, and technology make for such a fascinating read, I raced through the book in one sitting."
–Rinker Buck
Aviation journalist and author, Flight of Passage: A Memoir ... Read more

Reviews (4)

The JetBlue Story
Very readable and highly entertaining. I haven't even flown on JetBlue, but was curious about the company's history because everyone seems to be talking about it. I was pleased to find that the book offered a combination of JetBlue's history and the CEO's own journey in the business. I really like his way of doing business and how he treats his employees and customers. Hopefully other company executives will read this and apply some of JetBlue's practices as well.

Great Read
I was so excited to see this book featured in a recent issue of "Fortune" magazine, which called it an "excellent" read. JetBlue is my favorite airline, and I was happy to see a book had been written about it. This book does a great job of laying out Neeleman's business approach, which he began developing as a young man. I really enjoyed the insider look at how JetBlue was formed. This is truly an inspirational story that even non-JetBlue fans will enjoy.

Entertaining Look at a Fascinating Company
I have been a huge fan of JetBlue since taking my first flight more than a year ago. I was really looking forward to reading this book, and definitetly wasn't disappointed. It was a great read from start to finish. The first part of the book talks about the airline's CEO David Neeleman, including the many business successes he had before JetBlue. It then talks about how JetBlue was started, down to how the name for the airline came up almost by accident just prior to a news conference to announce it. Even though I have read all kinds of articles on JetBlue, this book had a lot of new material I had never heard before, and the stories about Neeleman's early business ventures were really fascinating. I highly recommend this book both for big JetBlue fans like me, and anyone looking for a behind the scenes look at how to build a great company.

Dull and duller
It's amazing to me how a book about one of the most interesting airlines could be this lame. Actually, it's about JetBlue's founder, and he's surprisingly dull himself. Don't buy this book if you're a fan of the airline (as I am) because you will be sorely disappointed. ... Read more

Book Description

Third Generation R&D, written by three senior consultants from Arthur D. Little, provides managers with a new approach that will make R&D a truly competitive weapon. The authors relate how R&D management has evolved from the naive "strategy of hope" approach of the 1950s and 1960s, when companies spent lavishly in the vague expectation that something good would result, to the more systematic approach of the past two decades. But as we enter the 1990s, it is clear that a new generation of R&D management is needed, one that makes the connection between R&D and broader issues of corporate strategy. The third generation of R&D is a pragmatic method for linking R&D to long-term business planning. It shows managers how to integrate technology and research capabilities with overall management and strategy; break down organizational barriers that isolate R&D from the rest of the company; foster a spirit of partnership and trust between R&D and other units; and create managed portfolios of R&D projects that match corporate goals. ... Read more

Reviews (4)

Excellent Book, Thoughful & Precise
Congratulations to the authors! This is a well-written, honest book, which at least addresses the specific differences in outlook between R&D staff and standard business-oriented management. I worked for many years in R&D and fully agree that R&D people do require a unique management approach. Furthermore, the authors are correct in stating that expert input from technical staff is often "not included in the company's higher councils" that leads to alienation of R&D people. On this subject, I would like to add that the book does not address one aspect crucial to good management/R&D working relationships. Nowhere is it stated that R&D people, because of their higher education and expertise, find it difficult to respect managers, who are not expert in the project's subject area, yet are frequently assigned by upper management, to make all the pertinent technical and business project decisions.

By the way, I recently read another very enjoyable book. It openly addresses many of R&D staff's frustrations with management in a typical company, which has clearly not embraced "Third Generation R&D" management principles! It is a hilarious, witty, sharp, satire that brings to life many of the underlying R&D problems covered in "Third Generation R&D". If you feel like a good laugh, do try "Management by Vice" by C.B. Don.

Patrick Desbrow - Peperdine University Student
Roussel et al's 1991 text, Managing the link to corporate strategy, Third Generation R&D describes that evolution of research and development in the corporate business environment. This text provides a guide to link organizations objectives and strategies to their R&D activities. Below is a description of this reader's reactions, big ideas, implications, and lingering questions after completing this book.

Reactions

The theory behind Roussel's text is very well thought out. It offers a set of easy to understand models for developing a third generation R&D environment for your organization. Roussel present these models in an optimistic way that encourages the reader to reconsider how R&D should be managed. This book is an excellent tool for all technology managers. Roussel blends the business and technology disciples together and helps struggling technology managers to bridge the gap between these long separated functions within the organization. For example, Roussel suggests that projects must be organized into portfolios in order to manage risk and return. The concept of project management is a technology disciple while portfolios, and managing risk is a business discipline.

Big Ideas

There are a number of pressures, which require companies to invest in research and development (R&D) activities. These pressures include competition from local and global companies, as well as a decreasing availability of scientists and technologists. The pressures from competitors require companies to continuously introduce "high quality, innovative, cost-effective new products". Roussel's answer to these pressures is third generation R&D. Roussel states that there are three generations of R&D. The first generation of R&D relies on the insights and intuition of technology managers to determine which projects are worth investing time and money. In addition, there is no connection between the R&D projects and the objectives of the company. Top management only considers these projects as a required cost to the company. The second generation of R&D organizes activities into projects and measures the progress against a set of established goals. In addition, the cost of each project is examined against the possible benefits that will result from the research and development. The third generation of R&D technology managers and top management work together as a partnership to selected and evaluate projects. The goals of the organization are aligned with the R&D activities. Projects are organized in to portfolios in order to manage risk and maximize profits. When companies employ a third generation philosophy they are more competitive, more effective with a smaller investment in R&D activities. Roussel also states that there are three types of R&D. The first type is called incremental R&D. This is referred to as small "r" and big "D" and represents small advances in technology. However, the focus is on clever applications of this research. The second type is called Radical R&D. This is referred to as large "R" and often large "D". The focus is to discover new technologies and to produce a commercial viable breakthrough for the organization. The third type is called fundamental R&D or large "R" and no "D". Roussel calls this a "scientific/technological reach into the unknown". The main goal is to develop a depth in research competencies to build future competitive advances. This includes preparing for the long-term commercialization of these technologies. Roussel believes that a company needs to build portfolio of research projects that blend all three of these types of R&D to guarantee prolonged profits and success. Roussel also explains the function of R&D as a tool to (a) defend or expand existing business, (b) drive new business, and (c) broaden and deepen a company's technologies competencies.

Implications

This model for business and technology change has the potential of redefining many organizations. It also can be the competitive advantage, which determines your success over the competition. The interesting fact is that many companies will not make the change and this simple plan may allow for a few companies to rise to the top. This model can also be a catalyst for technology managers to think out side of the box. Many of these managers have both a technology and business background. However, they may not have tried to connect the learning in these two disciples together. This could be that start of a new way of thinking. It definitely has for this reader. Questions

One concern for that this reader has for the book is related to time and change. Many organizations are not prepare to consider third generation R&D as a realist option. The amount of time needed to transform a company into a third generation environment may seem to great to risk. Even the most advance technology companies many see the investment as unreasonable. How would a technology change to the company's paradigm and consider the possibility of a next generation strategy like Roussel suggests?

Matching R&D projects with corporate strategy
This is one of the great classics in research management. All R&D departments can and want to do more R&D than there are funds available. Prioritisation between projects is therefore unavoidable. For many years there was hope that by forecasting income and costs for the projects and comparing the two the most profitable projects could be chosen. Unfortunately that does not work other than for very simple development projects. This book describes the "portfolio method". The portfolio consists of projects. The projects are presented in two-dimensional diagrams. The axes of the diagram can be competitive position and technological maturity, or reward and probability of success, or annual budget and years to completion. Each organisation must decide which diagrams are relevant for their situation. These diagrams form the basis for a meaningful dialogue between the R&D function and other functions in the organisation and with top management. Another great merit of the book is that it introduces a new vocabulary where words are properly defined. Examples of subjects covered this way are types of R&D, technological impact, technological competitive position and project attractiveness. Even though the explanations of the portfolio system in the book are very clear the reader should not think that they are easily introduced. In a report by the European Industrial Research Management Association (EIRMA) of 95 six case studies are presented describing portfolio installation projects. Four represent successes and two failures. At least two conditions are essential for success: interest and support from top management and active participation in the development of the system of all the funct