Book Description

Winning by Not Competing: A Fresh Approach to Strategy

Since the dawn of the industrial age, companies have engaged in head-to-head competition in search of sustained, profitable growth. They have fought for competitive advantage, battled over market share, and struggled for differentiation. Yet these hallmarks of competitive strategy are not the way to create profitable growth in the future.

In a book that challenges everything you thought you knew about the requirements for strategic success, W. Chan Kim and Renée Mauborgne argue that cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, the authors argue that lasting success comes not from battling competitors, but from creating "blue oceans": untapped new market spaces ripe for growth. Such strategic moves-which the authors call "value innovation"- create powerful leaps in value that often render rivals obsolete for more than a decade.

Blue Ocean Strategy presents a systematic approach to making the competition irrelevant and outlines principles and tools any company can use to create and capture blue oceans. A landmark work that upends traditional thinking about strategy, this book charts a bold new path to winning the future.

W. Chan Kim is the Boston Consulting Group Bruce D. Henderson Chair Professor of Strategy and International Management at INSEAD. Renée Mauborgne is the INSEAD Distinguished Fellow and Professor of Strategy and Management.

... Read more

Book Description

Whether challenged with taking on a startup, turning a business around, or inheriting a high-performing unit, a new leader's success or failure is determined within the first 90 days on the job.

In this hands-on guide, Michael Watkins, a noted expert on leadership transitions, offers proven strategies for moving successfully into a new role at any point in one's career. The First 90 Days provides a framework for transition acceleration that will help leaders diagnose their situations, craft winning transition strategies, and take charge quickly.

Practical examples illustrate how to learn about new organizations, build teams, create coalitions, secure early wins, and lay the foundation for longer-term success. In addition, Watkins provides strategies for avoiding the most common pitfalls new leaders encounter, and shows how individuals can protect themselves-emotionally as well as professionally-during what is often an intense and vulnerable period.

Concise and actionable, this is the survival guide no new leader should be without.

"Few companies develop a systematic 'on-boarding' process for their new leaders, even though this is a critical function with major organizational implications. Michael Watkins's The First 90 Days provides a powerful framework and strategies that will enable new leaders to take charge quickly. It is an invaluable tool for that most vulnerable time-the transition."

-Goli Darabi, Senior Vice President, Corporate Leadership & Succession Management, Fidelity Investments

"Every job-private- or public-sector, civilian or military-has its breakeven point, and everyone can accelerate their learning. Read this book at least twice: once before your next transition-before getting caught up in the whirl and blur of new faces, names, acronyms, and issues; then read it again after you've settled in, and consider how to accelerate transitions for your next new boss and for those who come to work for you."

-Colonel Eli Alford, U.S. Army

"Watkins provides an excellent road map, telling us what all new leaders need to know and do to accelerate their learning and success in a new role.The First 90 Days should be incorporated into every company's leadership development strategy, so that anyone making a transition in an organization can get up to speed quicker and smarter."

-Suzanne M. Danielle, Director of Global Leadership Development, Aventis

"Michael Watkins has nailed a huge corporate problem and provided the solution in one fell swoop. The pressure on new leaders to hit the ground running has never been greater, and the likelihood and cost of failure is escalating. Watkins's timing with The First 90 Days is impeccable."

-Gordon Curtis, Principal, Curtis Consulting "The First 90 Days is a must-read for entrepreneurs. Anyone who's been the CEO of a start-up or early-stage company knows that you go through many 90-day leadership transitions in the course of a company's formative years. In this groundbreaking book, Michael Watkins provides crucial insights, as well as a toolkit of techniques, to enable you to accelerate through these transitions successfully."

-Mike Kinkead, President and CEO, timeBLASTER Corporation, serial entrepreneur, and Cofounder and Trustee, Massachusetts Software Council ... Read more

Reviews (10)

Good advice, wish I'd read it sooner
I bought this book in anticpation of a move that never happened. That said, it was remarkably useful even in my current position. It helped me frame many of my career experiences in a larger context, and when I do make a move in the future, I will be prepared for it.

I even bought it for a friend as a "happy new job" gift. She loved it, too.

His earlier stuff is good too
I work for a leading health care company and went through one of Watkins's transition forum programs here. If really helped me get off to a running start. We also got his negotiation book, Breakthrough Business Negotiation, which also was very helpful. I've since also read his book on influencing government and business strategy, Winning the Influence Game. Definitely helpful if you are dealing with issues of regulation and reimbursement as we are. It's nice to see him getting recognition for the First 90 days, but his earlier stuff is just as good, if negotiation or influence are important to what you do.

Watkins' negotiation book is great too.
I bought The First 90 Days when I was heading into a new VP Sales position. It was a huge help just like the other reviews say. Then I got his Breakthrough Business Negotiation book and it was great too. I bought copies for all my regional and district sales managers. It's the best thing for tough negotiations I've read.

just what I needed
I was on day 6 of a new CEO job and everything was falling apart -- I encountered serious resistance to even minor changes that obviously needed to be made. Reading this book, I realized I had walked into a problem where management saw the company was in need of a turnaround, but the employees had no idea and saw their company as a steady success story.

Every bit of this book is gold. From how to approach change implementation based on situation, to managing upwards, to making the mental switch to your new position, it's all been helpful.

Many great ideas to think about!
There are many original great ideas presented in this book which stand alone on their own merit. But perhaps the biggest idea of the book is for companies to view a job transition as any other business process- and subsequently look to optimize it. There are so many transitions in most companies in any given year, that having a process that makes more transitions successful and the new employees effective sooner should noticeably improve the bottom line. Most importantly, this book makes you think!

Also noteworthy in this book is its straightforward organization- the book lays out 10 areas to consider during a transition, then dedicates a chapter to each, and concludes with a brief summary. The book also reads well, and has examples to clarify the 10 areas. ... Read more

Reviews (47)

Make Change Irresistibly Attractive
The leaders of some organizations have no idea how to make successful changes, and are likely to waste a lot of resources on unsuccessful efforts. Professor Kotter has done a solid job of outlining the elements that must be addressed, so now your organization will at last know what they should be working on.

On the other hand, if you have not seen this done successfully before, you may need more detailed examples than this book provides or outside facilitators to help you until you have enough experience to go solo. I suspect this book will not be detailed enough by itself to get you where you want to go.

Here's a hint: The Harvard Business Review article by Professor Kotter covers the same material in a much shorter form. You can save time and money by checking this out first before buying the book.

I personally find that measurements are very helpful to create self-stimulation to change, and this book does not pay enough attention in that direction. If you agree that measurements are a useful way to stimulate change, be sure to read The Balanced Scorecard, as well, which will help you understand how to use appropriate measurements to make more successful changes.

If you want to know what changes to make, this book will also not do it for you. I suggest you read Peter Drucker's Management Challenges for the 21st Century and Peter Senge's Fifth Discipline.

Good luck!

THE Standard for Organizational Change
This book was recommended to me as being the standard for organizational change, and that recommendation was close to the mark. For any project manager who is involved in the mechanism of change, this is one book that should be right at the top their 'short list.'

This may seem like a strong statement, but reading this book can be life changing. Its concepts apply across many other business ideas, and it is particularly useful for implementing project management into an organization.

Lots of resources are wasted on unsuccessful efforts because often the leaders of some organizations don't know how to implement successful changes. The thought process gets tied up in the existing bureaucracy and remains stalled, going nowhere. In Leading Change, Professor Kotter has performed a commendable job of outlining all the elements that must be addressed. He identifies the most frequent mistakes in effecting change, and suggests eight steps to overcoming obstacles.

The author offers some good business essentials, but also adds a solid structure for implementation that can be applied across organizational cultures. Following his recommendations should make it easier for an organization to know what they should be working on and how to progress to the next steps.

There are good books that may be more recent than this, but you would do yourself and your organization a disservice if you passed this book by just based on that. As stated earlier, this book lives up to its reputation of being the standard for organizational change.

One of the Best
I agree with some of the earlier reviews that recommend this book along with "Execution" by Bossidy & Charan, "Strategic Organizational Change" by Beitler, and "Good to Great" by Collins.

This book is a little light on practical tools, but it does offer a good overview for managers who are dealing with change.

Recommended
One of the great books on self help practical leadership that has come out in recent years. You can complete your philosophical knowledge on leadership of character by going on to read the Remick book, "West Point: Jefferson: Character Leadership..." when you finish Kotter's "Leading Change".

How to lead change
Kotter's eight-step formula for leading change provides some practical and valuable strategies, but it does not get to the core of the problem. When an organization hires and retains only those who have made the commitment to do their best regardless of the circumstances, then complacency is never a serious problem and the leader does not need to falsely impose a sense of urgency. I recommend this book, and suggest Optimal Thinking: How to be your best self is read along with it. We are integrating Optimal Thinking into our company (mission statement and culture) and moving away from the old paradigm of managers and employees to the new optimized paradigm of corporate optimizers. ... Read more

Book Description

Here is the book--by the recognized architects of the Balanced Scorecard--that shows how managers can use this revolutionary tool to mobilize their people to fulfill the company's mission.More than just a measurement system, the Balanced Scorecard is a management system that can channel the energies, abilities, and specific knowledge held by people throughout the organization toward achieving long-term strategic goals.

Kaplan and Norton demonstrate how senior executives in industries such as banking, oil, insurance, and retailing are using the Balanced Scorecard both to guide current performance and to target future performance.They show how to use measures in four categories-financial performance, customer knowledge, internal business processes, and learning and growth-to align individual, organizational, and cross-departmental initiatives and to identify entirely new processes for meeting customer and shareholder objectives.

The authors also reveal how to use the Balanced Scorecard as a robust learning system for testing, gaining feedback on, and updating the organization's strategy.Finally, they walk through the steps that managers in any company can use to build their own Balanced Scorecard.

The Balanced Scorecard provides the management system for companies to invest in the long term-in customers, in employees, in new product development, and in systems-rather than managing the bottom line to pump up short-term earnings.It will change the way you measure and manage your business.

... Read more

Reviews (38)

Overcome Poor Communications and Bureaucracy for New Actions
The Balanced Scorecard looks at the important issues of alignment, coordination, and effective implementation. Most business thinkers like to start with the big picture, and end there. As a result, most ideas for going in a new direction are quickly diluted by misunderstanding, falling back on old habits, and lethargy. Since Peter Drucker first popularized the idea of business strategy, there have been vastly more strategies conceived than there have been strategies successfully implemented as a result. Much attention has been paid to devising better strategies in the last four decades, and little to implementing strategies. The big pay-off is in the implementation, and The Balanced Scorecard is one of handful of books that provide important and valuable guidance to explain what needs to be done to successfully execute strategy. You must have more measures, and different measures than the accounting system provides. You also need to link measures and compensation to the key tasks that each person must perform. This book is simply the Rosetta Stone of communicating and managing strategy. The Balanced Scorecard is the beginning of the practical period of maturity in the field of business strategy. Read this book today to enjoy much more prosperity! I also recommend that you read The Fifth Discipline, The Fifth Discipline Handbook, and The Dance of Change to understand more about the context in which you are trying to make positive change. These four books are excellent companions for each other.

Book that spawned a core business approach
This book is a seminal work that has significantly affected the way businesses frame and execute strategy.

In a nutshell, the authors show you how to view your business strategy, drivers and key indicators in four dimensions - financial, external (customer satisfaction), internal (processes) and learning/growth. They then show you how to link these to your strategies and develop and execute plan for transforming them into action and results.

The good and the bad. First, the good - before Kaplan and Norton published this book there was no standardized method for framing and measuring what's important. This book rectifies that. Also, the ideas first introduced have been embraced and extended to the point that a book search of similar titles returns over 2600 hits, and a google search using 'balanced scorecard' as a keyword returns ten time that many. This is a clear indication of how influential this book is and remains eight years after publication. But those are simple statistics. What's important about this book is many of the other resources that have sprang from it assume that you are familiar with the concepts and approach in this book.

The bad - the writing style, as noted by others is ponderous. That does not diminish the concepts and approach. It is also showing its age, but only because of the body of work that this book has inspired, which has greatly extended and refined the basic ideas. You will still need to read this book to get the most out of the body of work that is based upon it. Also note that even Kaplan and Norton, the authors, have extended this work into strategy maps and a 'strategy-focused organization' paradigm.

Overall this book has - and will continue to - influence thinking. The ideas set forth are still evolving and have been embraced by some of the largest (and smallest) companies on the planet. If you are new to this material I recommend visiting Balanced Scorecard Institute (ASIN B00006CKQ2) for introductory information, and Balanced Scorecard Online (ASIN B00006DBZ5) for more detailed material.

Be a Top Performer
If you want to rise to the top in your business and career you need to have a great system for managing results. The management cycle involves defining objectives, assigning responsibilities, developing performance standards, evaluating results, and developing improvements where necessary.

There may be many layers or hierarchies of organizational objectives, such as Corporate, Branch, Department, Team, and Individual. A good management system will capture all of the organizational objectives, and all will be linked to the overall business strategy. One helpful tool for capturing organizational objectives is the Balanced Scorecard. This system
uses measures in four major categories:

1. FINANCIAL PERFORMANCE

2. CUSTOMER SATISFACTION

3. INTERNAL BUSINESS PROCESSES

4. LEARNING AND GROWTH REQUIREMENTS

The actual measures selected are highly dependent upon the type of business and should be carefully developed to ensure proper
results are obtained. The goal is to select measures that best relate to the overall company strategy. As such, each scorecard will be unique. I have used a Balanced Scorecard and highly recommend them to help organize the complex assemblage of organizational objectives into a unitary whole. This fantastic book tells you everything you need to know. Highly recommended!

Once a 5 star essential, but now slightly outdated
Kaplan and Norton are the visionaries behind the Balanced Scorecard (BSc), and this is their first book on the subject. BSc as Kaplan and Norton conceived of it was focused on measurement, specifically measuring variables that had some linkage to corporate financial results so that the direction of the organization could be determined prior to the occurrence of a bad quarter or two. THE MEASURES OF ANY MANAGEMENT CONCEPT ARE ITS ADOPTION AND ITS STAYING POWER, AND KAPLAN AND NORTON'S BSc IS AN OVERWHELMING SUCCESS.

BUT companies that enacted BSc's started to tie them to corporate strategies, making them strategic management tools and not just measurement tools. One of the advancements was to tie define measures that measured the success of strategic intent as defined by specific objectives and goals. Another was to create cause and effect maps of the objectives, called "strategy maps."

Measurement is, of course, still an important part of the BSc, but the process of determining what to measure begins higher up the strategic ladder. KAPLAN AND NORTON THEMSELVES CHRONICLE THE GROWTH OF BSc INTO A STRATEGIC MANAGEMENT TOOL IN THEIR SUBSEQUENT WORK.

So, this book is a bit outdated, though it is still a useful introduction. However, I recommend that you try:
* Strategy Maps: Converting Intangible Assets into Tangible Outcomes by Kaplan and Norton

* The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment, also by Kaplan and Norton

* Balanced Scorecard Step-by-Step: Maximizing Performance and Maintaining Results by Paul R. Niven

And a good introductory article to the idea of strategy mapping is "Using the Balanced Scorecard as a Strategic Management System", a Harvard Business Review article by Kaplan and Norton that is also available on Amazon.

OK
The book is somewhat helpful, but given the current conditions, it is no longer applicable. I would rather go for the new book Six Sigma Business Scorecard, which is a surprisingly good modification and has a new revolutionary theme to it. ... Read more

Book Description

Enter Innovation's Most Fertile Breeding Ground

Why is it that so many world-changing insights come from people with little or no related experience? Charles Darwin, after all, was a geologist when he proposed the theory of evolution. And it was an astronomer who finally explained what happened to the dinosaurs.

Frans Johansson argues that breakthrough ideas most often occur when we bring concepts from one field into new, unfamiliar territory. In this space-which Johansson calls "the Intersection"-established ideas clash and combine with insights from other fields, disciplines, and cultures, resulting in an explosion of totally new ideas. The Medici Effect-referring to a remarkable burst of creativity in Florence during the Renaissance -shows us how to get to the Intersection and how we can turn the ideas we discover there into pathbreaking innovations.

From the insight that created the first Cherokee written language to the ideas that enabled scientists to read the mind of a monkey-The Medici Effect is filled with vivid stories of intersections across domains as diverse as business, science, art, and politics.

Johansson reveals the core principles-including breaking down associative barriers, routinely combining unlike concepts, and executing past your failures-that can enable individuals, teams, and entire organizations to create their own "Medici effects" in any arena of work and life.

... Read more

Book Description

Classic Strategies for Unapologetic Winners

Great companies stumble and fall when they lose it. Highfliers crash when a competitor notices they don't have it. Start-ups shut down if they can't develop it.

"It" is a strategy so powerful and an execution-driven mind-set so relentless that companies use it to gain more than just competitive advantage-- they achieve an industry dominance that is virtually unassailable and that competitors often try to explain away as unfair. In their "hardball manifesto," authors George Stalk and Rob Lachenauer of the leading strategy consulting firm The Boston Consulting Group show how hardball competitors can build or maintain an enviable competitive edge by pursuing one or more of the classic "hardball strategies": unleash massive and overwhelming force, exploit anomalies, devastate profit sanctuaries, raise competitors' costs, and break compromises.

Based on twenty-five years of experience advising and observing a range of companies, the authors argue that hardball competitors can gain extreme competitive advantage--neutralizing, marginalizing, or even destroying competitors-- without violating their contracts with customers or employees, and without breaking the rules.

A clear-eyed paean to the timeless strategies that have driven the world's winning companies, Hardball redefines and reinterprets the meaning of competition for a new generation of business players.

... Read more

Amazon.com

Spawned by a 10-year study of 2,000 firms conducted at Bain & Company, a global consultancy specializing in business strategy, Profit from the Core is based on the fundamental but oft-ignored maxim that prolonged corporate growth is most profitably achieved by concentrating on a single core business. To help companies identify this true essence, narrow their focus accordingly, and move forward in a manner that builds upon existing structure, Bain director Chris Zook and former Bain director James Allen present "a set of practical and proven principles, diagnostic tests, and questions for management teams to use as tools for reexamining or revising their strategies in search of the next wave of profitable growth." Bolstering their argument with real-world examples--including companies such as Disney, which succeeded by taking this approach, and Bausch & Lomb, which faltered by eschewing it--the authors show how to effectively uncover true corporate strengths, elevate them to realize their potential, identify related new businesses that could be successfully added, and even completely redefine a core when confronted with factors forcing such action. (For example: they offer a step-by-step method for mapping "adjacent opportunities" that may prove complementary, ranking them according to potential, and developing strategies to further evaluate and ultimately implement them.) The result is recommended for anyone tired of the management theory du jour who seeks a proven way to propel their company into the future. --Howard Rothman ... Read more

Reviews (27)

Facts and common sense
It is such a pleasure to read a business book free of the gibberish catch-phrases and stilted prose that characterize so many in this saturated segment. Zook's expositions on how companies grow and create value are not driven from guesswork or force-fitting examples into a pre-conceived frame. He started with data and draws the unavoidable conclusions from the data elegantly and simply. Relative market share in a well-defined industry is shown time and again to be a sure way to sustainable growth. Running a business is 95% operations, 5% strategy, but the 95% is useless if the 5% is wrong. This book deals comprehensively with the 5%. Practitioners shouldn't need much else to guide their most important decisions.

Without a Core, Chaos
After a two-year study of the key strategic decisions that most often determine growth or stagnation in business, Zook (with Allen) realized that clients of Bain & Company were eager to share the results of that study. Only later did he decide to write this book, one in which he presents and then develops "a useful framework for understanding and addressing the key decision points encountered in growing a business." He concluded that this framework is practical and could be applied (with appropriate modification) within almost any organization. In the Preface, Zook acknowledges that he was surprised by some of the findings which he briefly identifies. He then observes: "Central to our findings are three ideas: the concept of the core business and its boundaries; the idea that every business has a level of full-potential performance that usually exceeds what the company imagines; and the idea that performance-yield loss occurs at many levels, from strategy to leadership to organizational capabilities to execution." In the five chapters which follow, Zook (with Allen) examines "the types of strategic business decisions that most often seem to tilt the odds of future success or failure." Zook correctly suggests in this book that many organizations cannot resist the appeal ("the siren's song") of "miracle cures" of their problems. Zook focuses entirely on what has been verified in real-world experience, on what is practical, and on what will reliably achieve the desired results of sound strategic decisions.

He and his associates learned a great deal from the study, confiding that "some of the results were quite counterintuitive to us." Several of the findings caught my eye and caused me to challenge a few of my own cherished assumptions. For example, that "the choice of the next hot industry was much less important in driving growth and profitability over the long term than were strategy, competitive position, reinvesting rates, and execution." They also learned that many of the most successful sustained growth companies are actually in lower growth businesses (e.g. Enron in energy, ServiceMaster in basic services, and Bechtel in engineering). Why? Zook suggests that "it might be precisely the difficulty of of these market environments that elicits superior business creativity in the search for new growth out of their core businesses." In other words, these companies ignored "the siren's song" and stuck to the aforementioned "basics": strategy, competitive position, reinvesting rates, and execution. In the last chapter, Zook quotes Sun Tzu: "The more opportunities that I seize, the more opportunities that multiply before me." He then asserts that this phenomenon "is at the heart of growth strategy and embodies the fundamental tension between protecting the core [i.e. 'the basics'] and driving into more and better adjacencies, propelled by greater and greater success."

The various mini-case studies provided are very informative. I also appreciative the dozens of check lists (e.g. "Ten Key Questions for Management"), charts (e.g. 3-1 "Adjacencies Radiate from the Core"), and chapter "Conclusion" sections, all of which serve two important functions: they distill key ideas, and, they can serve as helpful reminders when reviewed later. Obviously, the "goal posts" in today's business world approach and then withdraw, widen and then narrow, with sometimes maddening unpredictability. Wait until they are closer for an easier kick or kick now ("carpe diem") before they begin to back up? Wait until they are wider? What if they become narrower? This metaphorical situation is complicated by the fact that opponents are trying to block the kick in what may well be inclement weather or at least against the wind. Kick now or wait?

One of the most interesting concepts shared in this book is what Zook refers to as "The Alexander Problem." Briefly, Alexander the Great and his armies eventually conquered an area stretching from Mount Olympus to Mount Everest. That was accomplished in less than four years. His resources became overextended. "His sticking point -- the failure to anchor in the core business (in his case, governance) and consolidate a rapid expansion --exemplifies the most common problem across all growth strategy": pursuing the wrong adjacency opportunities. With Alexander's premature death, his empire died with him. He was its core. The same is true of countless companies which expand into related segments which do not utilize, much less reinforce, the strength of their profitable core. "Business adjacencies are growth opportunities that follow a company to extend the boundaries of its core business. What distinguishes an adjacency from another growth opportunity is the extent to which it draws on the customer relationships, technologies, or skills in the core business to build competitive advantage in a new, adjacent, competitive area." Have you ever wondered why at least 70% of all mergers and acquisitions either fail or perform well below expectations? The board members and senior-level executives of those organizations obviously had not read Zook's analysis of "The Alexander Problem" in Chapter 3.

Those who share my high regard for this book are urged to check out Crawford and Matthews' The Myth of Excellence, Fitz-enz's The E-Aligned Enterprise as well as The ROI of Human Capital, and Collins & Porras' Built to Last.

Very Realistic and very useful
This book is very good, it explains very clearly the different growth concepts with clear definitions, and a very interesting growth matrix. in addition, unlike other books, this book uses a lot of real world examples to illustarte the different concepts and growth startegies. It explains how companies, that succeded, evolved from their core business and developed new products without getting lost in the process. Also, explains why and how some companies failed. The book is realistic, and gives you some tools and matrix that you can apply when analyzing and developing a growth strategy. You should also check out the web site, it has some examples of how to apply the gowth matrix.

Dell has applied this book idea very well
This is a very good book for anyone interest in business strategy. Especially reading it with Creative Destruction. One company which has applied this strategy very well is Dell. Its strategy to stay at the core in PC while adjaceny expansion into Printer, PDA ... etc. It stated in Businessweek that it is entering into the low-end (maybe ignorant by market leader) market for market share first. It is similar to a point mentioned in the book. I guess it has a lot to do with Rollin (one of the head of Dell)

These guys really messed up
This book is clearly overrated -- very simplistic and nothing more than a marketing tool for would-be customers. The book's fatal flaw is probably its praise of Enron and its ability to grow from its "core" ... Read more

Amazon.com

In their previous book, The Balanced Scorecard, Robert Kaplan and David Norton unveiled an innovative "performance management system" that any company could use to focus and align their executive teams, business units, human resources, information technology, and financial resources on a unified overall strategy--much as businesses have traditionally employed financial management systems to track and guide their general fiscal direction. In The Strategy-Focused Organization, Kaplan and Norton explain how companies like Mobil, CIGNA, and Chemical Retail Bank have effectively used this approach for nearly a decade, and in the process present a step-by-step implementation outline that other organizations could use to attain similar results. Their book is divided into five sections that guide readers through development of a completely individualized plan that is created with "strategy maps" (graphical representations designed to clearly communicate desired outcomes and how they are to be achieved), then infused throughout the enterprise and made an integral part of its future. In several chapters devoted to the latter, for example, the authors show how their models have linked long-term strategy with day-to-day operational and budgetary management, and detail the "double loop" process for doing so, monitoring progress, and initiating corrective actions if necessary. --Howard Rothman ... Read more

Reviews (19)

The Perilous "Journey" to Breakthrough Performance
If you have not already read Kaplan and Norton's The Balanced Scoreboard, I presume to suggest that you do so prior to reading this book. However, this sequel is so thoughtful and well-written that it can certainly be of substantial value to decision-makers in any organization (regardless of size or nature) which is determined to "thrive in the new business environment." Research data suggest that only 5% of the workforce understand their company's strategy, that only 25% of managers have incentives linked to strategy, that 60% of organizations don't link budgets to strategy, and 85% of executive teams spend less than one hour per month discussing strategy. These and other research findings help to explain why Kaplan and Norton believe so strongly in the power of the Balanced Scorecard. As they suggest, it provides "the central organizing framework for important managerial processes such as individual and team goal setting, compensation, resource allocation, budgeting and planning, and strategic feedback and learning." After rigorous and extensive research of their own, obtained while working closely with several dozen different organizations, Kaplan and Norton observed five common principles of a Strategy-Focused Organization:

1. Translate the strategy to operational terms

2. Align the organization to the strategy

3. Make strategy everyone's job

4. Make strategy a continual process

5. Mobilize change through executive leadership

The first four principles focus on the the Balanced Scorecard tool, framework, and supporting resources; the importance of the fifth principle is self-evident. "With a Balanced Scorecard that tells the story of the strategy, we now have a reliable foundation for the design of a management system to create Strategy-Focused Organizations."

After two introductory chapters, the material is carefully organized and developed within five Parts, each of which examines in detail one of the aforementioned "common principles": Translating the Strategy to Operational Terms, Aligning the Organization to Create Synergies, Making Strategy Everyone's Job, Making Strategy a Continual Process, and finally, Mobilizing Change Through Executive Leadership. Kaplan and Norton then provide a "Frequently Asked Questions" section which some readers may wish to consult first.

There are many pitfalls to be avoided when designing, launching, and implementing the program which Kaplan and Norton present. These pitfalls include lack of senior management commitment, too few individuals involved [or including inappropriate individuals at the outset], keeping the scoreboard at the top, too long a development process (when, in fact, the Balanced Scorecard is a one-time measurement process), treating the Balanced Scorecard as an [isolated] systems project, hiring consultants lacking sufficient experience with a Balanced Scorecard, and introducing the Balanced Scorecard only for compensation. When organizations experience one or more of these pitfalls, their key executives can soon become impatient, confused, frustrated, and ultimately, opposed to Balanced Scorecard initiatives. It is imperative to understand both what the Balanced Scorecard must be (e.g. cohesive and comprehensive) and what it must not be (e.g. fragmented and episodic). Kaplan and Norton correctly note that the journey they propose "is not easy or short. It requires commitment and perseverance. It requires teamwork and integration across traditional organizational boundaries and roles. The message must be reinforced often and in many ways." Those who are determined to achieve organization-wide breakthrough performance are fortunate to have Kaplan and Norton as companions every step of the way during what is indeed a perilous "journey."

Extremely detailed, highly informative, dryly written
The Strategy-Focused Organization

Building on their Balanced Scorecard approach, Kaplan and Norton have developed an impressive framework in The Strategy-Focused Organization for the implementation of strategy. They have found that 90% of strategic initiatives fail due not to formulation but to implementation difficulties. Successful implementation of strategy requires all parts of an organizations to be aligned and linked to the strategy, while strategy itself must become a continual process in which everyone is involved. The Balanced Scorecard, originally seen by the authors as a measurement tool, is now presented as a means for implementing strategy by creating alignment and focus.

Financial measures report on lagging financial indicators. The Balanced Scorecard aims to report on the drivers of future value creation. The book shows in detail how this is done from four perspectives: Financial, customer, internal business perspective, and learning and growth (these are outlined on p.77). These four perspectives produce a highly detailed framework when combined with the five principles of a strategy-focused organization: 1: Translate the strategy to operational terms. 2: Align the organization to the strategy. 3: Make strategy everyone's everyday job. 4: Make strategy a continual process. 5: Mobilize change through executive leadership.

Absorbing every detail of this book will require many hours. The sheer detail of this complex system requires considerable attention, perhaps more than some readers can muster, but clearly distinguishes this work from many books full of business fluff. The style tends to be turgid and pedantic while being admirably complete. Readers can grasp the essence of the book's central points by reading only Chapter 1 (Creating the Strategy-Focused Organization), Chapter 3 (Building Strategy Maps), and Chapter 8 (Creating Strategic Awareness). Skip quickly through the chapters in Part Two: Aligning the Organization to Create Synergies. This section is the least engaging of the five. The balanced scorecard approach to strategy will appeal to those with a systematizing frame of mind. The book is filled with complex diagrams of corporate processes consisting of interrelated boxes and forces.

This approach is extremely detailed and complex. It requires a major commitment and effort. Though the authors claim it can be implemented by smaller organizations, this will be more challenging than for large companies who can commit a team full time to working out the details.

Much of the value of the approach may lie not so much in following through on completely working out the balanced scorecard but on absorbing the lessons regarding organizational integration across silos and the importance of clarity about mission, strategy, and goals. The balanced scorecard is one way to achieve and implement this clarity but not the only way. Another would be continual reiteration of these (as in Confessions of An Extraordinary Executive). Some companies may benefit from strict use of this system, including finding units of measurement for its implementation. Others will gain much from applying the insights without such a formal and complete implementation.

A "Must Read" for Executives!
If you are an executive don't fail to read this. Kaplan and Norton's Balanced Scorecard approach has had a tremendous impact on thinking in the executive suite. Buy and read a copy today. I have bought copies for all of my clients.

Michael Beitler
Author of "Strategic Organizational Change"

Overblown and impractical
Having used the BSc a few times in my work, I expected this to be a hepful addition to my knowledge base in the area. I found that it added little to the author's other published tomes and to his articles in journals like HBR. Although the basic concept is sound, the implementation challenges are dealt with as you'd expect from an ivory tower-based profesoor and are several steps removed from the challenges that most of my real-world, and smaller company clients, need to address. I truly felt as though I didn't get my money's worth with this purchase and I should have stuck with the materials I already had by the author that was available in other forms. I would have saved time, money and a degree of frustration.

A must have tool for business improvement
If you're attempting to improve the way you do business, this book is a must have. It is a little dry so you have to be committed to using the concepts presented. If you can manage to stick with it, you will reap the benefits of the BSC. Good Luck! ... Read more

Book Description

All companies must grow to survive-but only one in five growth strategies succeeds. In Profit from the Core, strategy expert Chris Zook revealed how to grow profitably by focusing on and achieving full potential in the core business. But what happens when your core business provides insufficient new growth, or even hits the wall?

In Beyond the Core, Zook outlines an expansion strategy based on putting together combinations of adjacency moves into areas away from, but related to, the core business, such as new product lines or new channels of distribution. These sequences of moves carry less risk than diversification, yet they can create enormous competitive advantage, because they stem directly from what the company already knows and does best.

Based on extensive research on the growth patterns of thousands of companies worldwide, including CEO interviews with twenty-five top performers in adjacency growth, Beyond the Core (1) identifies the adjacency pattern that most dramatically increases the odds of success: "relentless repeatability;" (2) offers a systematic approach for choosing among a range of possible adjacency moves; and 3) shows how to time adjacency moves during a variety of typical business situations.

Beyond the Core shows how to find and leverage the best avenues for growth-without damaging the heart of the firm.

... Read more

Reviews (11)

Standing Tall
Standing Tall among Business Books, Chris Zook has indepth research examples of Companies portraying picture of today's business times. Numerous CEO reports, charts and graphs with real practical illustrations are varied. Outside a core business, the expansion is detailed in this book - on how to go ahead framing and practically applying the ways and means so as not to harness the existence levels. The books offers nurturing roots of business, examples on adjacency expansions with pros and cons of success and failure measures. The name itself speaks big 'Expand market without abandoning Roots' and the rule of the game lies in effective management. The author pin points steps to leverage best avenues and the possible adjacent moves so as to reach competitive edge and pooling profit without harnessing the roots of main frame business. In today's time, with diversifications, 'Beyond the Core'- the book serves a Good Reference and as I read on Chris zook's comments, I feel this is a 'Grab Pick' and Must for all Big Company Executives.

Not All Adjacencies Are Appropriate
Perhaps you have already read Profit From the Core: Growth Strategy in the Age of Turbulence which Zook co-authored with James Allen. It was based on rigorous research which revealed the key strategic decisions that most often determine growth or stagnation in business. They note: "Central to our findings are three ideas: the concept of the core business and its boundaries; the idea that every business has a level of full-potential performance that usually exceeds what the company imagines; and the idea that performance-yield loss occurs at many levels, from strategy to leadership to organizational capabilities to execution." In the five chapters which follow, Zook (with Allen) examines "the types of strategic business decisions that most often seem to tilt the odds of future success or failure." Zook correctly suggests in this book that many organizations cannot resist the appeal ("the siren's song") of "miracle cures" of their problems. Zook focuses entirely on what has been verified in real-world experience, on what is practical, and on what will reliably achieve the desired results of sound strategic decisions.

In the first chapter of this book, Zook discusses what he calls "the growth crisis" which many (most?) organizations encounter. He observes, "Finding or maintaining a source of sustained and profitable growth has become the number one concern of most CEOs. And moves that push out the boundaries of their core business into 'adjacencies' are where they are most often look these days." I agree with Zook that these strategies have three distinctive features: "First, they are of significant size, or they can lead to a sequence of related adjacency moves that generate substantial growth. Second. they build on., indeed are bolted on, a strong core business. Thus the adjacent area draws from the strength of the core and at the same time may serve to reinforce or defend that core. Third, adjacency strategies are a journey into the unknown, a true extension of the core, a pushing out of the boundaries, a step-up in risk from typical forms of organic growth." Much of the material in this brilliant book is guided and informed by what Zook claims is "the new math of profitable growth." Specifics are best provided by Zook himself.

Zook presumes that those who read this book already know what a core business is, and more specifically, what the core business is of their respective organizations. Given his objectives, that assumption is probably necessary so that he can explore the opportunities which (key word) appropriate adjencies offer. Fair enough. However, my own experience suggests that companies frequently extend the boundaries of a core business without fully understanding what that core business is. Railroads probably offer the best example. Only much too late (if then) did senior-level executives at major railroads realize that their core business was transporting people and cargo, NOT "railroading." Obviously, trains are confined to the tracks as are ships to the water and trucks to the roadways over which they proceed. Early on, what if owners of railroads and their associates had addressed questions such as those Zook poses in his Preface (Page ix)? Had they done so, presumably they would have recognized appropriate adjacencies which include taxi cabs, Super Shuttle, local delivery services, and "overnight" delivery services (e.g. DHL, FedEx, and UPS). While they're at it, why not own or forge strategic partnerships with over-the-road trucking companies and cargo airlines? Given the central locations of railroad stations in major metropolitan areas, it would have been easy enough to combine a full-range of travel services within an upscale retail mall.

The question to ask, therefore, is not what an organization's core business is. Rather, what could AND SHOULD it be? The correct answer to that question is important, of course, because without a proper core, there can be chaos. Also, the correct answer suggests appropriate adjacencies by which to achieve and then sustain increasingly more profitable growth.

In the Afterword, Zook imagines himself engaged in what he calls the proverbial "elevator" conversation during which he reviews the "key messages" contained within his book. It serves no good purpose to list them here because each must be carefully considered within a meticulously formulated context. However, once the book has been read, I strongly recommend that all of these "key messages" be reviewed on a monthly (if not weekly) basis. For decision-makers in at least some companies, this may well prove to be the most valuable book they have read in recent years.

An Outstanding Growth Guide for Global Business Leaders
As a second year MBA student at the Kellogg School of Management and a future corporate strategist for a global financial services firm, I found reading Beyond the Core to be one of the best time investments that I've made over the last few years. Chris Zook seems to have a knack for writing great books that not only stand the test of time but that are also highly relevant to the current business and economic environments. Specifically, his first book, Profits from the Core, which focused on maximizing the value of the core business, was launched when businesses needed it most - during the economic downturn. Now, Beyond the Core is perfectly timed since, from what I and other MBA's are observing in the market, most businesses are remobilizing for growth.

Overall, I greatly enjoyed Beyond the Core - it's a relatively quick read that is focused, insightful and well structured. More specifically, I think there are three key things that make this book stand out in comparison to many other business books I've read: 1) it takes a global perspective 2) it is highly data driven and has great examples and 3) its very actionable and offers lots of insights on implementation.

To elaborate, the first thing I really liked about Beyond the Core is that it takes a truly global perspective with examples from Europe, Asia and Latin America. As an MBA student majoring in International Business Strategy who will be working in a global firm after graduation, it was great to read about the strategies that firms such as Li & Fung (HK), Ambev (Brazil), Lloyd's Bank and Vodephone (UK) and STMicroelectronics (Italy). Overall, I also liked that the book mixes an array of fresh case studies (Tesco, Biogen, Ambev) with more traditional ones (Dell, Nike, American Express).

Secondly, Beyond the Core is highly data driven and the recommendations are based on empirical evidence, not conjectures. As a student of business strategy, I too often come across books or theories that are supported by nothing other than a few select examples that prop up the author's hypotheses. Beyond the Core, in contrast, is supported by an enormous amount of financial, competitive and market research and by many CEO interviews and studies by Bain & Company. This is extremely insightful as it helps the reader understand the odds of success and failure across the business world and thus leads to much more informed strategies.

Finally, Mr. Zook has focused nearly a third of the book on implementation and execution strategy. This makes the book and its recommendations highly actionable instead of leaving the author asking "so what?" The book sets out a systematic and understandable road map for adjacency expansion. More importantly, it discusses issues that are critical to growth initiatives such as: organizational structure, decision making processes, staffing, accountability and reporting, etc.

In sum, I highly recommend Beyond the Core, especially to global business leaders looking for a practical guide for profitably growing their businesses. Enjoy!!

Questionable Choice of Examples and Lack of Definitions!
Many people who have been burned by going into new areas will grade this as five-stars for encouraging caution in expanding a company's scope. If that's all you want from a book, this is a five-star book. If you want to learn what the exact lesson is, and why that lesson is true, you'll have to look elsewhere however. If you want to learn how to beat the odds in this area, you will also have to look elsewhere.

I found Profit from the Core to be a directionless mishmash of data without firm definitions that repeatedly espoused the idea of "stick to your knitting." As a result, I took up Beyond the Core with great trepidation. At first blush, Beyond the Core seemed to cure some of the peripheral problems of Profit from the Core . . . until I began to notice how almost all of the important examples of continuing business model innovation had been excluded that seemed to fit all of the criteria (except perhaps being willing to be interviewed by the author). Mr. Zook continues to avoid defining what "the core" is, so that basic problem continues.

The book's message is "stick to your knitting . . . unless you have not choice . . . then don't go away from your cost advantages and knowledge." If you want to know a little more about that message, you can read all of the key points in the book summarized in the Afterword on pages 189-192 in less than five minutes.

The book will mainly be helpful to those who are thinking about making unrelated acquisitions. The advice: Don't do it! The odds are way against you . . . but even the most unrelated acquisitions sometimes work (GE bought NBC and has done well with it, for example). The book lacks clear direction for how some overcome the odds.

The book was also curiously silent about how companies can use small experiments to test their way into new areas. That's the way that most firms expand beyond their core.

The methodology looks very much like those employed in Build to Last and Good to Great . . . but don't believe it. Cases were selected in part based on whether Mr. Zook could interview the companies. So it's really a subjective sample. So take the conclusions with a selective grain of salt. Here are some of the cases of those who have prospered with expanding into new areas that seem to fit the Zook criteria but don't appear in the book: Beckman Coulter; Berkshire Hathaway; Clear Channel Communications; Education Management; GE; Iron Mountain; Nucor; Paychex; Sony; Virgin Group; Xilinx; and Zebra Technologies. It's not surprising that the book fails to describe the discipline of continual business model improvement as a best practice . . . a serious omission for this subject.

Ultimately, I think the flaw behind the book is to look at moving "beyond the core" separately from looking "at the core." If the two books had been combined into one that looked at how to outperform the competition, there would have been the basis of helpful insights. Or, this book could have been scoped down into how to grow into new areas with internal development activities versus acquisitions. That would have been helpful. But with the focus of "beyond the core," you are left in a never-never land that you may not want to be in. The other interesting question that could have been addressed is how companies prospered by eliminating the old core and replacing it with a new one through acquisition as a number of companies have.

As I thought about why the author might have chosen this direction, I realized that it may be an unconscious use of the older ways of strategic thinking. Those analytical schemes separated thinking about existing business areas from entering new ones. For some time though, most strategic thinkers have emphasized seeing the questions as connected. You should, for example, be pursuing your best opportunities. That means comparing all choices in some manner at the same time.

The other problem with data-heavy studies like this one is that you are relying on backward impressions (with 20-20 hindsight). Studies of best practices are best done by looking at the decisions and actions when they are made . . . and then measuring the results to see what happens. Interviews taken at such times reveal much different information than the neat success stories spun after the fact. Clayton Christensen does a good job of explaining this issue in chapter one of his new book, The Innovator's Solution.

As I finished the book, I began to think about the many unsuccessful unrelated acquisitions that I have run into among companies. In almost every case, I remember reading a thick book by a name consulting firm that had explained at the time of the purchase why the acquisition could not miss. Perhaps a follow on for this book would be how to avoid bad advice in evaluating acquisitions.

A great lead-on to Profit from the Core
A very well documented lead-on to Profit from the Core, with practical real life examples on adjacency expansions, including successes, failures and comparisons of companies that started with similar points of departure but went different ways. It comes as no surprise that the book was rated by The Economist among the top 5 business books of the season. The book and its thinking are highly relevant to today's business climate in Europe. ... Read more

Book Description

A strategic guide to unleashing explosive growth

If all firms face similar obstacles to profitable growth, how do some companies successfully burst through these barriers, leaving their competitors in the dust?

Rita Gunther McGrath and Ian C. MacMillan argue that an answer to this question lies in MarketBusters: strategic moves that dramatically reconfigure profit streams in an industry and upend conventional competition.Best of all, the authors say, opportunities for identifying and executing such moves can be unearthed throughout a company's existing business platform-if managers know where and how to look for them.

Based on an extensive three-year study, McGrath and MacMillan identify five arenas in which exceptional growth opportunities can be found: the customer experience, reconfigured offerings and services, key metrics, industry dynamics, and emerging market shifts. The authors outline forty specific marketbusting moves and provide practical tools and checklists to help leaders determine the best move to use in a given situation. Vivid company examples illustrate the moves in practice, and clear guidelines aid managers in implementing their chosen moves effectively.

Driving continuous growth is imperative for every leader in every industry. MarketBusters is the field guide that will help them succeed.

... Read more

Amazon.com

From the time our ancestors lived in caves to that day in the late '80s when Chrysler sanctioned unofficial "tech clubs" to promote the flow of information between teams working on different vehicle platforms, bands of like-minded individuals had been gathering in a wide variety of settings to recount their experiences and share their expertise. Few paid much attention until a number of possible benefits to business were identified, but many are watching more closely now that definitive links have been established. In Cultivating Communities of Practice, consultants Etienne C. Wenger, Richard McDermott, and William Snyder take the concept to another level by describing how these groups might be purposely developed as a key driver of organizational performance in the knowledge age. Building on a 1998 book by Wenger that framed the theory for an academic audience, Cultivating Communities of Practice targets practitioners with pragmatic advice based on the accumulating track records of firms such as the World Bank, Shell Oil, and McKinsey & Company. Starting with a detailed explanation of what these groups really are and why they can prove so useful in managing knowledge within an organization, the authors discuss development from initial design through subsequent evolution. They also address the potential "dark side"--arrogance, cliquishness, rigidity, and fragmentation among participants, for example--as well as measurement issues and the challenges inherent in initiating these groups company-wide. --Howard Rothman ... Read more

Reviews (10)

A community of practice == a virtual community ?
Wenger, McDermott and Snyder draw on the past to describe the usefulness of a community of practice. In the Stone Age knowledge was passed on to others while people gathered around a fire and discussed hunting strategies. A community of practice is a group of people who may be trying to solve a problem and who interact about a topic in order to deepen their knowledge. The aim is shared insight and information. The authors write that in the time of ancient Rome corporations of metalworkers, potters, masons and craftsmen formed communities with a combined business and social function. Moreover, in the Middle Ages artisans formed guilds as a way to share knowledge and experiences. Therefore, the authors argue that community as a basis for knowledge creation and management has a long historical tradition.

Wenger, McDermott and Snyder believe that knowledge management needs to become more systematic and deliberate. The authors believe in the collective nature of knowledge, which involves every person contributing their perspective of a problem. A Community of Practice (CoP) allows for the connection of isolated pockets of expertise across an organization. The CoP consists of a domain of knowledge, a community of people and the shared practice they are developing. The community environment allows for interactions, relationships, sharing of ideas and the opportunity to ask difficult questions. The purpose of the CoP is to create, expand and exchange knowledge. The authors believe that a large number of CoP members rarely participate. Instead they watch the interaction and learn from the discussions that occur, learning from them. The authors believe that the most valuable activities consist of informal discussions that occur between members to solve a particular problem. A case study given is that of Shell, which has created CoP's around particular technical topics.

Wenger, McDermott and Snyder go into detail over how a CoP functions. At the beginning it is important to find common ground between all the members of the community. Members need to find out if they share similar problems and passions with one another. The authors believe a variety of communities exist: help communities, best practice, innovation and knowledge stewarding communities. Usually a community coordinator is needed who identifies important issues and plans events. The author's method for assessing the performance of a community consists of asking the questions: What did the community do? What knowledge did they produce? And how were those applied to get results?

All the characteristics mentioned, although are only intended by the authors to represent a CoP, share similarities with a virtual community. In fact the authors believe that Internet technology such as asynchronous threaded discussions can be used for distributed communities of practice. In fact some CoP's have websites where members have their pictures and biographical information on the site. However, Wenger, McDermott and Snyder make no connection between a community of practice and a virtual community. In fact they don't mention the two being related in any way at all, despite the dynamics appearing to be very similar. At the end of the book this omission seems very obvious given the incredible growth of virtual community at eBay and Amazon.

Communities within large organizations
This is a very useful detailed assessment of the role of communities of practice as developers and stewards of knowledge and their interaction with the application of knowledge inside commercial organizations. (The book is written around business organizations, but its content applies very well to public sector organizations as well and will be useful to public sector knowledge managers.)

The authors' focus of attention is - explicitly - on communities within (almost by definition quite large) organizations, and how they can be cultivated as a key element in the organization's success. Although the authors acknowledge that communities of practice can and do cross organizational boundaries, their attention to this aspect is cursory. As a result a number of very important issues (for example the degree of openness permitted/encouraged where communities cross organizational boundaries, the challenge to professional loyalties, access by specialists who are isolates within their own organization to communities of practice across the nation or the world, the management of communities of practice across strategic alliances) do not get attention.

That is about my only criticism and is almost more in the nature of a plea for someone to provide equivalent coverage of that critically important and growing field of interest.

The book defines communities of practice (COP) in relation to other groupings (for example it makes a useful distinction from communities of interest, while acknowledging that the distinctions are 'fuzzy' - see the useful table on P. 42). It also identifies the key roles, key elements and principles affecting the successful operation of COPs and factors requiring attention over their life cycle. The authors also identify diseases of COPs and their causes, address the difficult issue of measuring and managing value creation through them and provides guidance on the role of the management structure of an organization in fostering and supporting COPs within it.

Interesting and Practical Guide for Organizational Leaders
The metaphor in this book's title says it all. Wenger, McDermott, and Snyder have written a practical guide aimed at helping you grow and develop semi-informal communities capable of having a life of their own. The model they put forward is fairly simple and easy to understand.

Communities of practice, according to the authors, have three essential focal points. The first is the "domain" which is essentially the topic area or subject that people gather around to discuss, learn, and improve. Next is the "community" which includes the people who want to learn, share, and engage one another. In the words of the authors, these communicating people are the "social fabric of learning." Finally you have the "practice" which is a specific set of frameworks, tools, information, language, stories and documents that the community shares and produces with one another. All communities of practice must address the domain, community, and practices if they are going to be successful and meaningful.

With this framework in mind, the authors go on to discuss how communities of practices move through five idfferent stages--from potenital to transformation--as they mature. The majority of the book discusses the opportunities and obstacles that we face when working with a community of practice throughout the five stages. Many key ideas emerge in these chapters. Stewrdship seems to be more important than management. We cannot expect communities of practice to only solve the problems we face (which they can), but we must also expect them to create problems of their own. Building connections and aiming to add value to each community member should be an early priority. These statements are just a small sample of the ideas discussed.

Finally, the book ends by discussing how you might measure the value added and how community-based knowledge initiatives can help an organization improve its overall learning and performance.

No doubt the addresses a "soft" topic. My reaction is that effectively stewarding a community of practice requires a fairly unique person who is able to work for the good of the group and has particularly strong networking and opportunity identification skills. That said, the authors do a superb job of helping us see exactly what skills are needed for growing our own community.

This is a highly practical and easy to read book. I read this cover-to-cover in a single day. The theory of communities of practice is largely limited to only essentials and most of the time is spent helping the reader see how communities operate. If you are looking for advice about how to form a learning or discourse community around a particular issue or topic at work, or if you are interested in forming a collegial group that shares and learns about a topic, then this book is for you. This book is very much about life long learning in a professional context. It presents the community of practice as a nice alternative to the formal team or ad hoc committee. In short, this is a users' guide for meaningful and productive knowledge management groups and learning communities.

An essential reading for the knowlege economy
This book, just published by "the three musketeers of Communities of Practice", is a practical guide to managing knowledge. What makes this book special is that it goes far beyond the simple explanation and advocacy for communities of practice, which we have all been reading about for the last five years. Through in-depth cases from firms such as DaimlerChrysler, McKinsey & Company, Shell, and the World Bank, the authors expand on many practical aspects one should have in mind when engaging in a community development: The "seven principles", the "five development steps" are presented in practical terms and with great details so that they can be used as a framework for all practitioners.

The approach to "cultivating" and nurturing communities, as opposed to "managing" them, is also explained so that managers will hopefully resist the urge to try and control them using mechanistic mental models. At last, the question of measuring value creation for organizations is addressed in convincing and, again, practical ways.

There is also some wisdom in this book. The "dark side" of communities of practice is also addressed. If unproperly managed, communities of practice can indeed create isolation, collusion, or tensions, which can be quite destructive for community members and sponsoring organizations.

This book is an essential reading for any leader in today's knowledge economy. It will undoubtedly remain as a reference for all of us practitioners who want to develop communities of practice for the benefit and long-term success of organizations and their employees.

Relevant, Insightful and Practical
This is a very interesting book in explaining how to initiate communities of practice, their lifecycle and their role in the sharing and development of knowledge. Over the last ten or twenty years there has been much written about new organizational structures and the emerging importance of developing and retaining knowledge within corporations. Wenger, McDermott and Snyder approach this topic from a social perspective and apply some standard community building concepts to "communities of practice". This contrasts much of the popular thinking on these topics that tend to overemphasize the role of technology in helping to build communities or address knowledge management issues.

Cultivating Communities of Practice is and excellent handbook for anyone involved in the setup, participation or stewardship of "communities of practice" within a corporation. I would though suggest that the emphasis is on "corporation", which in some cases implies individuals having some predetermined alignment (presumably with the interests of the corporation). There is some very good discussion at the end of the book covering communities of practice outside of the corporation with and some review of supply chains and 3rd sector examples, although very limited coverage. It was noted that the focus has been on corporations as this is where there are solid examples of these practices. Hopefully a future book will address this area in more depth.

This book is identified as "A Guide to Managing Knowledge", and it does fit this description well. If you still believe that technology can be the primary component of a knowledge management strategy, then you need this book to better understand the nature of knowledge management in terms of communities of practice. ... Read more

Book Description

CEOs are more than frustrated by marketing's inability to deliver results. Has the profession lost its relevance?

Nirmalya Kumar argues that, while the function of marketing has lost ground, the importance of marketing as a mind-set-geared toward customer focus and market orientation-has gained momentum across the entire organization.

This book challenges marketers to change their role from implementers of traditional marketing functions to strategic coordinators of organization-wide initiatives aimed at profitably delivering value to customers. Kumar outlines seven cross-functional and bottom-line oriented initiatives that can put marketing back on the CEO's agenda-and elevate its role in shaping the destiny of the firm.

Nirmalya Kumar is Professor of Marketing at IMD-International Institute for Management Development, Switzerland.

... Read more

Reviews (3)

Marketing is Strategy and Kumar explains why
Professor Nirmalya Kumar explores the world of Marketing from the CEO's perspective, making a strong case in favour of a major role for the marketing director in the developing of the company's strategy.

His message is clear: marketing and strategy are closely related, if not the very same thing, and in today's highly competitive environment no single company could afford to ignore this fact.

Perhaps two of the most important contributions of this book are the use of the "three Vs" approach (Valued customer, Value network and Value proposition) as a means to get answers to the three basic strategic questions: Who, How and What, and the section devoted to the discussion of the concept of strategic segmentation.

I had the privilege of having Professor Kumar during a term of my Sloan Fellowship Masters Programme at the London Business School, in 2003, and we used parts of his then unpublished manuscript to explore some of his revolutionary concepts. Even though nothing can replace having Nirmalya in front of you talking about his experience and incredible knowledge of the Marketing science, by reading this book you will have access to some of his most innovative ideas.

Definitively, a Marketing/Strategy reference book for the years to come

Making Marketing Matter to Your CEO
With increasing pressures on CEOs to deliver profits in the short term and increasing concerns of Board members about financial reporting requirements, the corporate agenda is less and less likely to include marketing issues. Yet in every organization, it is marketing's answers to the who?, what? and how? questions that build the growth engine of the enterprise. Professor Kumar explains why leaders must have their eyes on the marketing ball.

Though Professor Kumar is a marketing academic, his book is useful not just for marketers, but also for CEO's and general managers. He convincingly argues why marketing must be elevated from the tactical responsibility to sell more of our products and services to a strategic influence in the future direction of the organization.

To do this, he suggests that marketing no longer employ the traditional four Ps model of product, promotion, price and place (distribution) but rather a more strategic approach he calls the Three Vs: valued customer (who to serve), value proposition (what to offer) and value network (how to deliver).

With practical suggestions and examples, he details a menu of seven marketing initiatives that will drive growth and innovation in all organizations. The seven transformational initiatives along with some questions from the checklists provided are:

1. From Market Segments to Strategic Segments: Who are our valued customers?; Which customers are unhappy with current offerings in the industry?; Is the target large enough to meet our sales objectives?; What is our value proposition?; Does it fit the needs of customers we are trying to serve?; What benefits are we delivering?; Can we deliver and earn a profit?

2. From Selling Products to Providing Solutions: Do we guarantee customers outcomes and benefits instead of product performance?; Have our sales people developed consulting skills and deep industry knowledge?; Have we developed effective processes to allocate resources to solution projects?

3. From Declining to Growing Distribution Channels: What service outputs will the new channel provide?; H