Book Description

A collection of the best thinking from one of the most innovative management consulting firms in the world

The Boston Consulting Group is an innovator in business strategy worldwide. In fact, BCG and its founder, Bruce D. Henderson, may be best known internationally as the creators and architects of the discipline of business strategy. Innovative business concepts originating at the firm include "cash cow," "experience curve," "segment-of-one® marketing," "time-based competition," and "capabilities-based competition." Now, for the Þrst time, BCG’s most influential writings are gathered in a comprehensive collection, offering serious-minded readers access to BCG’s thinking on the theory, development, and practice of business strategy.

"The majority of products in most companies are cash traps. . . . [They] are not only worthless, but a perpetual drain on corporate resources."

"Use more debt than your competition or get out of the business."

"Displacement of high-cost competitors by lower prices benefits the customer."

"As a strategic weapon, time is the equivalent of money, productivity, quality, even innovation."

"When brands become business systems, brand management becomes far too important to leave to the marketing department."

"The winning organization of the future will look more like a collection of jazz ensembles than a symphony orchestra."

"Most of our organizations today derive from a model whose original purpose was to control creativity."

"Dumping should be encouraged. It is a gift from the nation that provides the products."

"Taxes should be levied when, and only when, individuals disinvest in order to consume. Capital still at work should not be taxed at all." ... Read more

Reviews (11)

STRAIGHTFORWARD AND TO THE POINT
Although most of the writings are old, they are still facinating and revealing. Bruce Henderson is clear, concise, and to the point. The book is surprisingly well organized, considering that it is a compilation of articles from different periods and writers. In my opinion, consulting firms such as Mckinsey and BCG have long provided some of the best business writing available to the executive managers as well as B-school students. This book is no exception. Indeed, it makes for a perfect MBA business strategy textbook.

Consult this!
Hello,

This is a great collection of short articles from one of the most influential business consulting companies of all times.

So, if you can put up with or filter out some of the bizarre and apparently politically motivated comments then what you get is a fascinating history of the development of strategic thought in quite a number of key business areas.

Naturally, this is not a "how to" or a "biz strategy for dummies" book, but it does well in explaining some key concepts and of generating a desire to know more, that is, if you don't already know it all.

Regards,

martyn_jones@iniciativas.com

Good collection of concepts in Strategy
When I buy this book I expect to learn more about strategy, business and enterprises, and I must say I get it.

There is a good description of some difficult concepts, and I fine approach to competetive entreprises rules. It is not the definitive book about it, but there is no definitive book for this.

It is rigth that this is not a new book, and some of the articles are old ones (from 1960's and 70's) but If you are not an expert and you look for a complete review, you get your money back.

And for last, I must confess that I like the content.

Good Brain-Twister - BCG should reveal mathematical concepts
This book is excellent - if you understand the mathematical logic behind the BCG-Approach. Most BCG-Theories are based on the formual:
Strategy = Microeconomics + System Dynamics Models
Therefore you should be able to understand differential equations.

Example: The 'experience curve' does not project a decline in 'accounting costs' but in microeconomic costs, that means inflation adjusted marginal cash flows.

If you translate the experience curve effect into a mathematical formula, the result is a first order differential equation . or stated in other terms - a systems dynamics model for a dynamic 'Stackelberg Oligopoly'.

The Logic behind the BCG approach is brilliant, but they unfortunately they do not reveal their mahematical formulas and therefore many people misunderstand their approach.

I managed to discover their mathematical formulas - and I know what I'm saying, if i tell you, that it takes you a dozen pages full of mathematical terms of the highest order to understand the economic logic behind a 'simple' concept like the experience curve.

They can improve the book, if they reveal the mathematical lgic behind their approaches.

An compilation of mostly outdated papers
This was a disappointing bought. I was looking for alive ideas and what I found out was a collection of outdated papers mainly on experience curve. Most of them are simply a homage to Bruce henderson, with almost no value today. Even the most recent papers are not specially insightfull. The two stars come from some usefull ideas picked up from somes papers as the redefinition of a what a company offers as a guide for improving your strategy or the pitfalls of the reductionist thinking. It is not enough for recommending this book. ... Read more

Book Description

Here's a guide that shows managers how to choose the best organizational design for their business from five basic structures identified by the author. In it readers will discover how to avoid typical mistakes, especially those pertaining to conflict among different divisions. ... Read more

Reviews (1)

Excellent book that give good insight in how companies work
When you have read this very practice book, you can see how organisations work, were the weaknesses en strengths are in the company en how you can give advise to solve the problems. ... Read more

Book Description

Praise for Performance Management

" We are witnessing a convergence among advanced management concepts and practices.Performance management is a means to pull it all together, to understand the strengths and limitations of each management practice and leverage it for competitive advantage. Cokins’ book walks us through all this in a manner that makes something confusing much less so.
" There is no one right answer for any situation.The answer lies in a balance of concepts and the integration of them. Performance Management is the glue that holds them all together.
" This book helps the reader understand the breadth of PM.It’s not just about measuring!"
–– John F. Morrow, CPA, AICPA Vice President, The New Finance

"Gary Cokins has articulated the ‘411’ of performance management.His combination of personal anecdotes with fundamental cost and performance management theories provides business leaders at all levels, in any industry or profession, a solid resource for practicing their work.
"This book is not only an invaluable resource for those new to performance management but provides guidance, wisdom, support, and insight to all industry leaders and managers. Cokins has organized and simplified the many complex performance management theories, associated tools, and infrastructure for the reader.
"Buy it, read it, and give it to your colleagues–– then celebrate your successes!"
–– Sue Swertfeger, Senior Manager, Owens & Minor ... Read more

Reviews (4)

Great addition to ABC and Performance Improvement
From TQM to Balanced Score Cards - this is the book that provides a practical synthesis. Focus on cause and effect relationships and away from abstractions. Must have book.

Business performance in context of today's environment
If execution is the goal these days, then this book brings an interesting perspective -- it's both big picture AND 'how to do it' at the same time. Cokins does a great job of putting the execution imperative into the larger context of "why." A good read for a reminder of basic performance management tools and for exploring how they work best in the context of today's tough business environment.

Great Graphics in Performance Management
Gary's book, on Performance Management published by Wiley, does an excellent job of pointing out there are no "Silver Bullets" or management tools that solve all problems. Combinations of the right techniques is an art. Bold graphics and flow charts in the book do much to stimulate the thought process. Business failure is often a result of inadequate performance management systems. Survival in today's global economy requires many of the better performance management techniques described in Gary's new book. A great addition to any business library. Bill Hass, Certified Turnaround Professional, wjhass@aol.com

Gary made a complete view of Performance Management
This not a common book about Performance Management. It integrates several methodologies like Activity Based Management, Balanced Score carding, Value Management and Customer Profitability Management.

If you want to know more about Performance Management roots, this book can be a practical guide to understand several aspects involved when you are working to implement successfully a PM initiative. ... Read more

Reviews (8)

Great book to read when starting an ECommerce site.
This book is very informative on starting an ECommerce site. I especially like the instruction it gives on PLANNING the website and strategy beforehand. The book also discusses the important elements of creating a website, one being Top Management buy in.

eCommerce another powerful channel
The book is excellent but misses out on highlighting the really big successes that established brick and mortar companies gain by adding the Internet as part of their multi-channel marketing, distribution,manfacturing and design and development activities of products and services.

These multi-channel organizations will do 80% of the eCommerce on a global basis. The author should come out with a sequel with a lot of case studies of the incredible success stories of multi-chanel organizations use of Internet technologies.

Fred Held
CEO Site-Tuners, Inc.

I knew Dr. Robert T. Plant
I personally have met Dr. Plant, and I would never have purchased this book if it wasn't required for this class. Dr. Plant last worked in industry almost 20 years ago, and has spent those years in an academic silo. He's certainly no expert, and this book is evidence of it. As someone who has actually implemented e-business solutions for a number of large companies, Dr. Plant's 'ideas' are worthless in the real world. This book is more marketing hype and 'internet bubble' dreamery than reality. Save your money. (And if you are forced to take his class, try to get out of it.)

Required reading for IT professionals too!
My expectations from this book were twofold: (1) gain insights into the business value of e-commerce so I could have a fuller understanding of how my role as a service delivery consultant fit into the bigger picture, and (2) see the implementation strategy from the business process owner's point of view. This book fully met my expectations and provided further insights that I did not expect.

An an IT professional my point of view is different from the intended audience of this book and this is reflected in my review. First, this book provided my with an opportunity to observe the business forces that drive the systems that I support. I gained a good understanding of the business imperatives, as well as the challenges that the business face when developing an e-commerce strategy. From this I gained an appreciation of how the projects that IT initiate are first conceived and was able to see the direct link between these projects and how they ultimately relate to business objectives. These insights are valuable and inspire me to seek ways to better align my domain, service delivery, to business goals.

I also gained a much greater understanding or the many faces of e-commerce, such as the unique requirements of business-to-customer as contrasted with, for example, business to business. From my vantage point prior to reading this book it was just a collection of applications and interfaces. After reading this book I see beyond the technology itself to the real purposes and their associated goals.

This book also contains information that is directly applicable to my profession. The ownership issues and e-strategy leadership chapters gave me a clear view of who the real stakeholders are, which is of the utmost importance to service delivery. This information sparked some ideas about support strategies and other issues that I need to consider with respect to e-commerce systems from an IT perspective. Equally important is the chapters on the roll out strategy, which is a space where I have a definite role, and the scorecard approach to measuring the effectiveness of an internet strategy. The latter gave me some clear ideas about how to align IT service delivery to business stakeholders in the e-commerce domain.

In my opinion this book is as applicable to IT professionals as it is to business process owners and decision makers. It gives the business side a clear understanding of the factors and issues that go into an e-commerce strategy, and an approach to developing and implementing the strategy. It gives the IT professional some unique insights on that drives the requirement to develop and implement e-commerce systems and shows areas where we can add value to the process and help assure a successful implementation.

Strategic Analysis of " Formulation of Strategy"
A comprehensive manual written by a professional to be used as a guide for novice or expert to guarantee successful e-business activity. ... Read more

Book Description

This book is organized and laid out to provide information in quickly understandable chapters and in sections within chapters. Each chapter stands on its own and provides a usable body of information on an aspect of the real-time enterprise. Chapters includes diagrams, tables, and lists to illustrate and summarize key points and real-world case studies and executive interviews to provide further insight into the subject matter presented in the chapter.

Readers of this book will:

• Gain a clear picture of how organizations can profit from use of real-time operations
• Appreciate the theory, technology, and business practices that underpin the real-time enterprise
• Learn a pragmatic and efficient approach for developing real-time systems in their own organizations

The author, Michael Hugos, is the chief information officer of Network Services Company, a $7 billion dollar distribution organization. He has over 20 years experience in applying technology to meet business challenges and he holds an MBA from Northwestern University’s Kellogg School of Management. His discussion of the real-time enterprise is a blend of both theoretical and practical perspectives based on his years of applying real-time concepts to actual business situations. He is also the author of Essentials of Supply Chain Management. ... Read more

Reviews (3)

A safe journey to the Real-time Enterprise
Building the Real-Time Enterprise: An Executive Briefing by Michael Hugos is a timely compendium of lessons about tested and proofed management and operational techniques for all CIO's wanting to create successful internal IT organizations in the global village we live and work in. How is an IT organization to spend its scarce resources to enable its business to excel in a world characterized by hyper-competition and co-opetition? Hugos defines the Real-time Enterprise and systematically explains its business foundations, supported by practical examples. Short overview sections on Information Theory, Cybernetics, General Systems Theory, Total Quality Management, Six Sigma, Business Process Management, System Dynamics and Viable Systems Model, to name a few, provide contextual settings in which the roots for the modern Real-time Enterprise are to be found. The book continues by explaining how to design a real-time enterprise. It does so by motivating the need for change and dynamic management, right through descriptions of real-time observation and action chains [the Observe-Orient-Decide-Act loop, borrowed from aerial warfare]and to guidance on where to start the journey toward the Real-time Enterprise once resolved as strategy. Directions of how to build an IT infrastructure for Real-time Enterprises, and tested project management methodologies are combined to serve as a Best Practice manual towards sure results. Decision-making, modern programming languages, social skills and people management, and the various steps of the system development life cycle, are all described in the context of creating the Real-time Enterprise. Of particular value is sections on hard lessons learned in successes and failures as the author experienced them in his career, and how these are of value in systematically moving towards the Real-time Enterprise. These lessons are classified in strategic guidelines for system design and tactical principles for running projects. Every chapter in the book is supported by a vignette describing a particular executive insight related to the chapter content, and this is where the book's ultimate value lies; it is based on the professional experience of an author, also award-winning CIO, having changed the organization he works for to a Real-time Enterprise with sustainable growth and success in the world of today. Having read Building the Real-time Enterprise left me with fresh and profound insights on how to optimize executive effort and organizational resources for the creation of a dynamic and agile IT capacity in the modern organization. Free of clichés, this book has set a benchmark to be followed as an example of how to combine theoretical principles with practical lessons and verified successes in the IT world. It won't easily be replaced as company on my professional journey!

Building a Real-Time Enterprise: An Executive Briefing
Useful book for the busy executive:I am the CFO of my organization and manage many operating units. I have read Mr. Hugos' book and found it refreshing, to the point and extremely useful.In particular the last chapter has armed me with all of the important questions that provide the framework for keeping all projects on task and within budget.These questions provide a common communication framework between technical people and business unit managers that result in projects that stay focused and on track.

Well written, concise and provides valuable insights
Providing an easy to read, but comprehensive understanding of the real time enterprise, this book is a valuable reference to the busy CIO or IT executive. The book provides insight into not just the theory behind a real time enterprise, but also details on how to implementthis within your organisation. The excellent layout and the use of diagrams and tables does not detract from the message, while the lists provide a valuable reference point. I would recommend this book to any IT executive who is trying to unlock the IT value proposition.
... Read more

Reviews (7)

How To Frame Corporate Strategy Methodically
Jay B. Barney has written an enduring, understandable user's guide to corporate strategy that is a must read for any business student. Barney helps would-be business leaders frame their strategic decision-making process. Barney first explains to his audience the concepts of strategy and performance, and their relevance to the corporate organization both internally and externally. Barney then explores the different strategies that the corporation can adopt in dealing with its competitive environment: Cost leadership, product differentiation, tacit collusion, and alliances. The author does a very good job in demonstrating to his readers that the four strategies are not mutually exclusive but occasionally complementary. Finally, Barney explores how a company can structure itself across markets over time. He successively addresses the issues of integration, diversification, mergers and acquisitions, and globalization. Gaining and Sustaining Competitive Advantage has been one of the most influential business textbooks that I have ever been asked to read.

PERSPECTIVE IS EVERYTHING
This is a great book - more for what it organises than what it adds as new ideas.

Barney sets a model for Competitive Advantage (VIRO) and them compares strategic models as potential sources. It places many of the modern attempts in perspective. Without this starting understanding, the modern gurus (Hamel) are almost impossible to apply as their ideas lack the perspective on the role of strategy within an organisation and within all of the other management tools.

It places Michael Porter within a framework where his work can be better used.

For managers and post graduates, this book sets out the fundamentals of strategy and where it can take you.

Not cheap (by a long way) but a fair price for the knowledge.

Strategy is not that difficult!
This is a very concise and interesting book on competitive and corporate strategies. It compiles all the main issues regarding studies on competitive advantage withouth losing focus on the specifics of each different kind of strategy.

I would recommend using the book only after a review of microeconomic concepts. This will allow graduate business students coming from other areas (like engineering) to grasp the strategy concepts more easily.

One suggestion: it would be nice if the authors included cases at the end of each chapter. Since the book presents the theory from a basic up to a more advanced level, this would let students to quickly fix the concepts by applying them in real world situations.

Required @ Chicago GSM
A very good introduction to both business-level and corporate-level strategy, approached from the perspective of the resource-based firm.  Written at a slightly lower level than Sharon Oster's book, but contains a more extensive discussion of corporate strategy issues.

It is a good book.
I am using it for my class at the University. My professor recommended the students to read. I bought two of this book. One for myself and another for my friend. ... Read more

Reviews (9)

Best book on IRA investing I've read
Just finished Pat Rice's book IRA WEALTH. I've been in investment real estate for 42 years and know Pat Rice. This book is easy to read, easy to understand. No investments are 100% guaranteed, but in this period of low interest rates, the yields that Pat can secure are authentic and just, given the various scenarios he works out.
Real estate is very unlikely to be wiped out, like various stocks in the stock market, or even groups of stocks in mutual funds. Also, you can trust the accounting. Diversify, which is what Pat is saying in here, don't put it all in one real estate loan or one stock deal. To know that you CAN invest in real estate is a great comfort not to mention the higher yield.

Not Worth Reading
I first hear about alternative IRA investments through a real estate class I took to become a broker. I picked up this book because I wanted to learn more about the subject. As I have read extensively in the subject of investments, the fact that I didn't learn much from this book doesn't necessary mean it's not a good read for some people.

My problem with this book is that it holds real estate investments in IRA (specifically Roth IRA) out to be one-size fits all solution to retirement riches for everyone. It claims a minimum 12% annual return with zero chance of going wrong. It claims RE IRAs has a lower cost (including fees to trustee, financial advisor, attorney, accountant, and real estate broker) compared to brokerage IRAs which supposedly cost 3-6% a year. As with all comparison the author makes in this book, real estate IRA is better in all respects to everything else.

Most Americans have high percentage of their net worth tied up in their residence; does it make sense from a diversification point of view to put their IRA in real estate as well? Is a loan to someone who couldn't get a loan from the banks really an investment with zero chance of going wrong?

The author claims to have many years of experience, which I wish could have translated to more examples of what could go wrong so the reader can learn from others' mistakes. I learn absolutely nothing from scenarios after scenarios of perfectly constructed examples that produces double or triple digit returns.

There are several calculation errors and mistaken use of financial terms but in general the book is easy to read. My favorite quote from the book, which comes after a paragraph describing which relatives are not prohibited from transacting with your IRA: "For some of you, this information alone is worth the price of this book."

I think I will be going back to my local book store.

Examining both low-risk and high-return real estate ventures
IRA Wealth: Revolutionary Strategies For Real Estate Investment is the collaborative effort of Patrick W. Rice (investment columnist and the owner of IRA Resource Associates -- offering expertise in investment real estate for self-directed retirement accounts) and Jennifer Dirks (personal finance and real estate issues staff, and winner of the U.S. Small Business Administration's 2002 "Journalist of the Year award for the Pacific Northwest), diverges sharply from the common understanding that IRA holdings can only be invested in stocks and certificates of deposit. In response to the decline of the stock market, IRA Wealth presents real estate as a profitable and worthy investment venture, and one that is perfectly legal to hold in any personal IRA account. Examining both low-risk and high-return real estate ventures, IRA Wealth is a superbly presented, "reader friendly", informational presentation for anyone seeking to diversify their IRA account holdings into property as a hedge against the volatility of the stock and bond markets.

Opened my mind to new ideas
IRA Wealth provides a series of alternatives to the traditional IRA Stock Market investment opportunities. The book is organized to first dispel the myth that investing in real estate with your IRA is illegal and second to explain how to structure your IRA investments with a "self-directed" IRA. The following chapters identify IRA real estate investments based on the level of risk associated with that particular type of real estate investment. The final chapters discuss some of the nuances of liquidating your real estate investments upon the time of your mandatory IRA distributions. Finally, IRA Wealth provides several appendices to help you start your own due diligence with regard to IRA investing in real estate.
Overall, I enjoyed reading IRA Wealth and found that it opened my mind to new ideas on IRA investments. Most of us have probably felt the sting of lackluster stock market returns during the past few years. So the prospect of low to moderate risk real estate investments is clearly of interest. I found the organization of the book to be well thought-out and comprehensive. If you have already read several books on real estate investing, you will realize that several investment methods continue to pop-up. IRA Wealth takes those methods and ties them to your IRA.
Regardless of your level of experience with regard to real estate investing, I believe you will find IRA Wealth a worthwhile read and well worth your time.

Easy and inspirational read
I have just begun to read your book and it is perfect timing as my husband and I have a sum saved in our IRA. We plan to read the book together and investigate the investment strategies suggested. Thank you. The book is an easy and inspirational read on a complex subject. ... Read more

Book Description

Strategic Management: Competitiveness and Globalization, Cases, 5e consists of 35 cases representing a myriad of strategy topics and types of firms and industries. The authors have meticulously reviewed hundreds of cases to create this outstanding package. ... Read more

Book Description

Hayes is a founder of the Operations Strategy field, and all four authors are on the Harvard Business School faculty. In Operations, Strategy, and Technology: Pursuing the Competitive Edge--the long-awaited follow-up to the highly successful classic, Restoring Our Competitive Edge--Bob Hayes, Gary Pisano, Dave Upton, and Steve Wheelwright take a fresh look at the foundations of corporate success. This book addresses the basic principles that guide the development of a powerful operations organization, and describes how a company's operating and technological resources can be applied to create a sustainable competitive advantage in today's "new" (global and IT-intensive) economy. Achieving a competitive advantage through superior operations is what the authors refer to as the "operations edge." ... Read more

Book Description

How to structure, facilitate, and implement the process.

Strategic planning is a critical part of running a business, but when you get a team of people together to plan, it can often become a confused exercise in grand visions without a clear process for establishing workable goals. This book is unique in providing both guidance for the actual content of strategic plans and techniques for how to plan in a team context. Readers will discover how to:

• structure the process so it custom fits their company needs

• effectively facilitate the process (keep meetings on track, train others in planning skills, document decisions made at meetings, present and communicate the plan)

• use teams and teamwork smoothly and productively to create a far-reaching plan—and then to implement it

Features detailed guidelines for each step, dozens of flowcharts, and three self-contained "facilitator’s guides" to follow. ... Read more

Reviews (2)

Key messages get lost
...

There is a whole industry surrounding strategic planning, and the language of this industry is laden with jargon, that is words devoid of any real meaning. Hence, "structure," "facilitate," and "implement" have become an empty mantra with no power. The tendency to ascribe power and authority to organizations rather to the people who work within business, government, and industry undermines many such approaches, and though this book acknowledges that the power is with the people, that message gets lost in the language.

Moreover, it's just not that helpful to read that "The outside world can be hostile, difficult to understand, and sometimes impossible to influence." Too often, I find the advice and observations do not seem like what those working in the trenches need.

Though many folks swear by illustrations laden with arrows, boxes, shading, ALL CAPS, and such, I'm unable to process these sorts of graphics, focusing instead on the disparate elements and wishing I could have worked hand-in-hand with the publisher, author, anyone to suggest friendlier, more understandable designs.

A Must for all Strategic Planning
This book has become my bible for developing strategic plans and marketing plans. It offers a great outline for strategic plans, as well as a detailed plan on how to facilitate the information gathering process. This book, however, is appropriate for not only team-based strategic planning, but also for those working on projects alone. I have recommended this book to several of my associates. ... Read more

Book Description

ROI selling works within a company's existing sales methods to increase the effectiveness and production of their sales force.

Current economic conditions are forcing everyone from large corporations to smaller privately held companies to maximize their revenue streams from new and existing customers.To be successful, firms today must outsell their competition and exceed customer expectations-thus creating long-term satisfaction and loyalty.

While basic sales methodologies instruct salespeople on the nuts and bolts of the sales process-who to approach in an organization, when to ask questions, and what to ask-ROI Selling takes them to a new level.Using a unique "360 Degree Measurement" technique, this guide provides practical tools for turning valuable customer feedback into a compelling case for their products and services.

Sales professionals will be able to demonstrate to the customer how their products and services will produce a more successful and tangibleoutcome than the competition. Techniques from ROI Selling are currently being used to effectively increase the productivity of sales forces in a variety of industries, and they have been licensed bythe authors of Solution Selling as part of their training programs that reach thousands of sales professionals each year.

Through the use of actual case studies, ROI Selling provides stories, success criteria, and actual statistics on value estimation to aid readers in building compelling ROI models for their own products and services. ... Read more

Book Description

If you're like most entrepreneurs, you probably haven't considered the most important step you'll ever take as a business owner—leaving. Did you know that by not having the right exit strategy in place—today—you're risking not only the wealth your business has created but also your own financial security? Too many entrepreneurs have forfeited millions through unwise divestitures. It doesn't have to be that way for you. This book shows you step by step how to develop an exit strategy that's right for you, your business, your employees, and your family.

Whether you're a brand-new entrepreneur or a long-time business owner, What's Your Exit Strategy? is your blueprint for a secure—and profitable—future.

"Peter Engel's advice—that the right time to establish an exit strategy is at the start of a business—is enormously valuable. And the book's fun to read too."—Sid Feltenstein, president & CEO of A&W Restaurants

"Having exited without reading Peter's book definitely hurt. Why wasn't it written when I sold my company?"—Jeffery Ullman, founder & CEO of Great Expectations Video Dating Sevice

"A must-read for anyone who is serious about building a seriously successful business!"—Dr. Jon Goodman, executive director of EC2 (The Annenberg Center Incubator Project), University of Southern California

About the Author

Peter H. Engel is a former senior corporate executive with Colgate Palmolive and a successful entrepreneur who has founded and profitably exited eight different companies. A prolific business writer, he has also been a professor of entrepreneurship at the University of Southern California's business school. He lives in Los Angeles, California.

Reviews (1)

Do You Even Have One?
Engel offers seven ways "to maximize the value of the business you have built." His key point seems to be that, whether or not you plan to "exit" now or within the next 12-18 months, you still need to maximize and quantify the value of your company. He offers a wealth of information and insights which suggest HOW. For owners of privately-held companies, Engel's book will walk them through the process, defining the exit strategies and approaches to them, and then review their implications for funding, income building, personnel, corporate culture, expansion planning, and other matters encountered along the way. Here are the seven strategies:

*Selling to a strategic buyer

*Selling to a financial buyer

*Going public

*Liquidating your assets (that is, milking your business)

*Enforced liquidation

*Managing for life

Engel examines each of these seven strategies (or options) in detail. I am reminded of what Prime Minister Begin said, after formulating the accords with President Sadat at Camp David when asked how their agreement had been reached. "We did what all wise men do. We began at the end." Engel expresses a similar thought in the Conclusion: "The exit strategy, then, should be the first and last piece of the business puzzle every entrepreneur assembles. It ought to be the first decision entrepreneurs make because it has as much impact on their future as anything else -- and it will be their last decision because eventually they must exit." Why wait? Plan the exit strategy now. Engel explains HOW. ... Read more

Book Description

Unleash the power of Long-Term Equity Anticipation Securities (LEAPS) for increasing gains, limiting losses, and protecting your trading and investing profits. The 108 powerful strategies lined out in this comprehensible guide by author Michael C. Thomsett help you both to advance your investing and trading techniques and to achieve your financial goals. Real-world examples and graphic illustrations point out the main keys of this book. Not only are LEAPS a low-risk alternative to buying stock, they are also a great way to maximize your capital. ... Read more

Reviews (2)

AnEXCELLENTbook!
Only one word adequately describes this book:- "EXCELLENT!"

The author not only describes, in detail, and, with numerous examples for clarity, all the advantages of using LEAPS in your investment program, but he also goes into details of the negative aspects, or the downside, of each of these strategies.

Unlike many other books on the subject of options, Mr. Thomsett discusses their use from the perspective of the small investor (using 100 share lots) and not, as in various other publications, institutionally sized lots of 40-50 options (which is 4-5000 shares each time).

In order to obtain the full benefit from this book though, you need to be already conversant with trading options.

A good entry point for this would be a previous book of his:- "Getting Started in Options", or, even better, my personal favorite:- "Using Options to Buy Stocks" by Dennis Eisen.

Perhaps the only fault with the book is the point that it really should have been published in hard cover, thereby better allowing it to stand up to the heavy use that it will undoubtedly receive.

Eye-opening info -- great organization.
The book shows great strategys for long term option investing. Makes it easy and simple. Anyone who knows options will like Leaps because the strategys are much more flexible. Highly recommend the book as user friendly and useful. I am going to use a lot of the things like using Leaps instead of jsut buying stocks. Good stuff! ... Read more

Book Description

The authors present a dynamic approach to effectively link sales and marketing planning directly to the operations side of a business. Demonstrates how to create a connection between a company's business plan and each department's operations, accurately anticipate changes in customer's needs and significantly improve a firm's competitive position with an enhanced level of customer satisfaction. ... Read more

Book Description

Praise for Yes, You Can Time the Market!

"‘Buy and hold’ makes sense for the average investor in stocks. Even better, say Stein and DeMuth, is to buy only when prices are low and hold when prices are high, keeping accumulating savings in Treasuries while waiting for ‘low’ prices. They define ‘low’ and ‘high’ prices by historical experience. An interesting and thoughtful analysis."
–Professor Milton Friedman
University of Chicago, Hoover Center
Nobel Prize Winner in Economics, 1976

"Wall Street, prepare yourself. Ben and Phil hit the nail on the head with their insightful guide to investing. No gimmicks, no games, just tapping the true power of economics to make sensible investment decisions. Add to that the authors’ dry wit, and this handbook is a must-read for investors small and large."
–Diane C. Swonk
Director of Economics, Chief Economist
Senior Vice President, Bank One Corporation

" The logic and reasoning are persuasive. Stein and DeMuth buttress them with evidence, lots of it. The term ‘valuable’ properly applies to the guidance of the conclusions."
–C. Lowell Harriss
Professor Emeritus of Economics
Columbia University

"How refreshing to read commonsense advice about the stock market! Stein and DeMuth’s findings are both verifiable and free of quantitative trickery. What’s more, their writing is as clear and straightforward as the methods they recommend."
–Martin Fridson
author, It Was a Very Good Year:
Extraordinary Moments in Stock Market History ... Read more

Reviews (27)

Yes, You Can Time the Market!
This exceptional book is a must-own for anyone who is serious about investing. I would still give the book 5 stars if all it did was prove its thesis in a highly readable fashion that, indeed, the market can be timed. Or, if all it did was show you why it's not smart to put your money into index funds or to buy stocks willy-nilly at any time of year. The book does all of that -- i.e., tell you why and how the market can be timed and prove it in succinct clear prose -- but it does more: while Stein and DeMuth guide you effortlessly through the trees, you feel like you're seeing the forest (and you are). You'll come away from this book knowing how and why to invest your money today, while understanding the entire market from the beginning of the 20th Century. I can only think that Ben Stein and Phil DeMuth had a large staff of folks to compile a colossal amount of information -- essential information for any serious investor -- and then the two of them distilled it all down and made it easy to consume. As I said, this information alone would make the book worth 5 stars (and indeed makes it a steal at its current price), but it's worthy of 5 stars "plus" because of the presentation. A few weeks ago, The Wall Street Journal reviewed four new books on investing, this one being one of them. Of the four, the Journal liked this book best. It's really a great piece of work.

What the Street won't tell you
A lot of common sound investing strategy. The authors test various pricing metrics agains 100 years of stock/market pricing data and show you the results over 5, 10, 20 years.

They show you how to use p/e, price to book, price to cash flow, price to moving average, as measures to tell if the S&P 500 is overvalued or undervalued. In years when it's undervalued, buy. When overvalued, keep your cash and wait, but hold long term. (Peter Lynches books tell you the same stuff but with more fluff and junk.) This book is packed with usefull tidbits and historical data that you just can't find easily on it's own.

It's the same stuff that you'd learn in an MBA program, that the street professionals don't want to tell you. They want to sell you stocks today because they need commissions today. They'll use whatever metric says yes or make one up, to justify you buying an over priced stock.

If you read this book, you'll know more than 90% of the slobs packing $$$ every month into their 401Ks without a clue on what they're buying. They're buying on faith only..... People that buy on faith and hope get crushed by the market at some point when things get priced back on fundamentals.

Make no mistake, the finanacial markets are buyer beware. As IPO crazed people, day-traders, and holders of ENRON found out.... Don't be a victim, learn before investing.

Real Investing Advice. No Kidding. Really!
When I saw the cover of this book, with Ben Stein and his co-author lounging by the pool, bags of gold coins and gold ingots at their side, I thought it would be a send-up of investing books. Oops.

In spite of the kicky title and irreverent writing style, this is a genuine attempt to educate investors. It's full of rather conservative, long-term advice. Look for undervalued stocks. Don't jump in and out of the market. Diversify. When Stein and DeMuth talk about Market Timing, it is not a reference to day trading, rather to buying stocks when they are cheap. Buy low, in other words.

Their thinking on dollar cost averaging is refreshingly sensible. Instead of the Bob Brinker style of investing a fixed amount every month (or year or whatever) regardless of cost per unit, you should wait until the stock is cheap, then buy as much as you can. This assumes the investor has a brain, and enough discipline not to mess it up, which seems to be Brinker's fear.

Anyway, there isn't much new here. It's solid investing advice, breezily presented, so if you need a refresher, or are new to investing, this isn't a bad book to start with.

I'm buying it for everyone I know!
Finally, at last, a book about the financial market that combines great advice with true wit and common sense. I've bought it for everyone I know. (Including my three year old son... A must for every Mom who'se thought about entering the market, but has never quite felt able to trust it before. With these chaps you're in safe, informative, entertaining hands. Alison Larkin

A Must- Read for Long-Term Investors
This is not a book for traders, but for long-term investors. With wit and wisdom, Stein and Demuth prove their point: long-term investors must pay attention to market cycles. If you buy when the market is high, you are all but guaranteed to wind up under water. You could be buying the best company in the world--it does not matter. Pay too much, and you'll be burned.
The investors of the 90s forgot about market-timing.Wall Street told them it didn't matter, and they followed that advice-- to their eternal regret. As another reviewer has pointed out, Wall Street's salesmen want to sell stocks now. Caveat emptor if you pay too much.
Maggie Mahar's "Bull! A History of the Boom, 1982-1999: What Drove the Breackneck Market and What Every Investor Needs to Know About Financial Cycles" fleshes out the story and gives investors some sound advice on what to do next. Read both books. ... Read more

Book Description

Everyday financial professionals are required to make important decisions regarding how best to execute an investment decision. The process entails estimating transaction costs, forecasting market impact and risk, evaluating alternative strategies, developing optimal trading strategies, choosing agency transaction or principal bid, and selecting the most suitable broker-dealer. Investors know all too well that trading too aggressively will cause too high market impact cost, but trading too passively will expose the fund to more risk, which may result in even higher costs. Investors need to find an appropriate balance between cost and risk, given the goals and objectives of the fund. Improper implementation will effectively erode much of the value added during the investment process and may ultimately cause investors to lose profits and funds to lose investors.

How can you maximize value instead? The answer lies in the proactive management of transaction costs and selection of trading strategy, the process to which this book is dedicated. Optimal Trading Strategies presents well-developed methodologies for managing and reducing costs throughout all stages of the investment cycle. You will find:

· Quantitative techniques for estimating, analyzing, and managing transaction costs
· A framework for forecasting market impact and risk
· Methodologies to develop optimal trading strategies
· A process to achieve best execution
· Metrics for measuring costs and evaluating performance

Consider this: Two money managers invest in and hold identical portfolios but one manager consistently outperforms the other by as much as 50 to100 basis points per quarter. The more successful manager is inevitably the one who better manages trading costs. In a highly competitive environment where every basis point counts, it is critical to seize every foreseeable advantage for your investors. By using the framework and techniques presented in this book, you will better position yourself to achieve higher portfolio returns. ... Read more

Reviews (9)

Great from start to end
This book was well written for the rookies and professionals. Authors explained the trading process from pre-trade to post-trade analysis, with added topics like impact cost and VWAP. Great explanations. A must have desknotes.

Extraordinary Financial Resource!
This is an excellent financial resource for the seasoned professional or enthusiastic student. The book is the first of its kind to address finance and investing from the point of view of the trader.

It widely known that improper implementation of an investment decision can negate much of a manager's anticipated alpha, but how exactly should managers examine the set of potential implementation schemes? The solution to this question is the primary focus of Optimal Trading Strategies. The authors provide a very thorough investigation of transaction costs (e.g. when, where, and why they arise) and continue with an easy-to-understand analytical process to estimate, manage, and control those costs. The authors' approach to developing these "optimal trading strategies" also turns out to be the basis for achieving "best execution." The net result to managers is higher returns. I highly recommend this reference for anyone interested in understanding all aspects of finance and investment theory, and it makes a wonderful complement to graduate level texts.

A worthy read for investment professionals.
Ever since Datek took advantage of the Small Order Execution System and made day-trading popular, every day people have been looking for a sensible way to make money trading stocks.
They are now learning the tools that large investment companies have been using for years. Every basis point counts.

Anybody interested in Program Trading needs to read this book.
I cannot recommend this more highly, and this comes from a comlpetely unbiased review of an excellent book.

VWAP Trading Made Easy
This is the first book that I have found that explains VWAP trading from the point of view of a money manager. It provides a mathematical description and decomposition of the VWAP statistic. It then provides an outstanding approach of how to devise a trading strategy to beat VWAP based upon proprietary price movement estimates and ones risk appetite.

Most industry personnel that I have spoke with, i.e., brokers, give convoluted explanations of what VWAP really is just so they can not be held accountable to any performance measure or trading outcome. Optimal Trading Strategies provides a simplistic explanation of VWAP trading and provides a technique to forecast ones result prior to commencement of trading. And just as importantly, it shows how managers can take the advantage back from brokers and win at the VWAP trading game. This is an outstanding reference and one that has been long over-due in the marketplace.

Signed,
A Very Happy Manager

Transaction Cost Analysis made Easy!
This is the finest resource for Transaction Cost Analysis I have ever seen. The authors give a comprehensive overview of the current trends in the Transaction Cost Analysis arena and discuss advantages and disadvantages of each approach. They then provide realistic and simple measures to evaluate broker-dealer, and trader performance. I have used these techniques to decided upon which brokers to use to execute a trade. The most exciting part of this book to me is that it provides techniques to evaluate both Agency and Principal Bids. Inferior Brokers Beware- Your time is up! ... Read more

Reviews (7)

Excellent Book
I have often felt that many times the leadership of a company or even division was all about defining the strategy, where are we going and what are the overall goals.It was then up to the next level of management to make it happen.I am a manager and like most managers I have had a few occasions when I new where we should be going, I felt I clearly set the direction, but something in the execution failed and we did noting but waste a lot of time to get half measures.The world is full of good plans that failed due to poor performance. This book explains that a true leader needs to keep the execution of the strategy in mind when creating the direction.Combine the two and get your hands dirty in the working of the plan.This book is all about getting the job done, covering the processes and actions that need to get done to make solid strategies work.

The author created this book from real life experiences, either his own or those of case studies and interviews. He is giving the reader solid techniques derived from real world examples that were a success.I also got a great deal out of the final chapter.The author shows the reader how to apply what he has detailed in the book into a real life problem.Making a strategy come together and really work is either good management or luck and most of us are not that lucky.This book gives you the tools for making strategies work.What I liked about the book is even though the author is aiming for the CEO chair with the book, the methods he talks about could be used by any level of management on any size of project.The book is well written and enjoyable.It is well work your time.

A book on Corp Strategy about executing all those plans
You can select from any number of books on what corporate strategy is, how to develop an appropriate strategy, and using strategy to competitive advantage.And yet, we see announced strategies fail time after time.What breaks down?What is the problem with a plan that looked so good on the white board?

Prof. Lawrence Hrebiniak of the Wharton School makes a convincing case that it is in the execution of the strategic plan that things fall apart.He takes us through the reasons why execution fails and they are many.The plan doesn't fit the culture, poor internal communications (silos), lack of patience in building the ability to implement the strategy, a planning culture rather than an execution culture, incentives poorly aligned with the strategy, and so on.

The author does spend a small portion of the book talking about what goes into a good strategic plan.If you have ever read anything on corporate strategy, this summary will seem familiar.However, the rest of the book is about what to consider about executing this great plan and all the things that you will likely face that will work against what it is you are trying to do.

He has several helpful models that are simple and can help you make sense of what it is you are trying to do versus the resistance you are facing.He has good advice on how to manage change.I particularly like his discussion of embracing error versus avoiding it.The denial of problems creates a kind of mental state that needs rigidity because any kind of movement will quickly expose all the errors the rigidity is trying to hide.

This is a book about doing things rather than just thinking about neat ideas.I like that approach a lot.Obviously, the complexity of reality is far beyond the scope of this book, and you will likely only face a portion of what the book discusses in any given situation.However, getting a feel for the broad spectrum of misery execution entails can be quite enlightening and brace you for facing down future futility.

THIS BOOK IS RIGHT ON TARGET!
Based on the experiences of managers, the book focuses on the knowledge, skills and capabilities managers need to execute strategy. It presents an integrated approach, presenting and detailing key execution decisions, incorporating central change-management issues. The final chapter shows how to apply the logic, insights, and guidance presented in this work. Of special note is that one chapter is devoted to motivation, incentives, and the control process encompassing accountability, responsibility and leadership. If you want a book to help guide turning your strategic plan into performance and profits, this book is right on target. Highly recommended.

Putting the exec into execution
Top executives tend to set strategies and then leave the implementation to others. This book sets the path for executive participation in execution, including managing change and growth, to ensure effectiveness.Written by Lawrence Hrebiniak, top strategy professor in the Department of Management at the Wharton School, should make this book credible. Hrebiniak has consulted at Chase Manhattan, DuPont, and General Electric.

There are not many good books on strategy. This book is an exception. Lots of innovative strategy frameworks make this book an indispensable addition to the business library of every manager. I really liked Making Strategy Work and I hope this book will become a classic. I think all interested in business strategy should read this one.

A Strategic Look At Strategy Execution
Volumes have been written about the theoretical and practical frameworks against which senior executives in large companies can run their operations. But in the end, executives are faced with the straightforward task of simply getting things done. Execution is key to every successful project or implementation, and yet, oddly enough, it's in this area that Lawrence Hrebiniak, professor at the Wharton School at the University of Pennsylvania and business consultant to many Fortune 500 companies, believes too many business leaders fall short. And few companies have developed a disciplined approach to it.


In his new book Making Strategy Work (Wharton School Publishing, January 2005), Hrebiniak says that many of today's top executives are far better at developing strategy than executing it and overcoming the political and organizational obstacles that stand in their way. Senior executive editor Patricia Brown spoke with Hrebiniak about overcoming the obstacles to execution and how CIOs can build systematic road maps for tackling it.

Q: You write that execution has been an issue for executives for more than 20 years. Why is it so difficult to bridge the gap between strategy and execution?

A: Execution represents a disciplined process that enables an organization to take a strategy and make it work. One of my arguments is that we've put out a whole class of MBAs in management who are well-versed in planning and conceptually brilliant, but who are very weak in terms of even the theory and the approach to execution. They have to learn about execution on the job.

In the absence of appropriate guidance and conceptual models, many managers jumped into execution head-first and did a lot of things wrong. Only recently have people started thinking, "If we execute better, if we integrate long term and short term better, if we translate strategic objectives into short-term objectives, if we worry about incentives and controls and feedback, we'll execute better, we'll perform better, and we might even gain a competitive advantage because very few people in other companies are so well-versed in execution."

Also related to execution is integration. People gain knowledge in buckets. For example, if you're a marketing person, the whole world becomes a marketing problem. Because of this, we need more integration. We need someone with a perspective, someone who understands various functions and parts of the company. The ability to integrate is essential to execution, and managers who can do this are very tough to find.

Q: Can CIOs play a role in providing this integration?

A: A CIO or senior-level IT employee can provide integration, provide the data-the kinds of things that back up the models of execution we're working with. If I develop a model of execution, I'll need to change the [corporate] structure in a certain way. For example, I create a need to move goods or knowledge around the world from unit to unit, from organization to organization. I've now created an IT issue. I need someone well-versed in information-knowledge transfer. Information sharing becomes a critical part of that execution plan or strategy. The IT people or the CIOs are becoming increasingly important because of this need for integration that we're finally waking up to.

Q: Some C-level executives would rather focus on strategy, and they don't believe they're responsible for execution. Are they?

A: Execution demands ownership at all levels of management. From C-level managers on down, people must commit to and own the processes and actions central to effective execution. Some people say there are two processes going on. One is the conceptual process: The brilliant people look at things like industry forces and competitive forces, and come up with new strategies, new ideas, and new products. And once they're done with the smart work, they turn to their subordinates and say, "Here, execute this."

It's that separation of planning and doing that I contend is wrong. It's important that the CEO, just like all managers, have a hand in execution. Strategic success demands a simultaneous view of planning and doing. Managers must be thinking about execution as they're formulating plans; they're part of an integrated, strategic management approach.

Q: Execution requires more people than strategy, but are companies adding the resources necessary to follow through on the execution? Are they growing fast enough to support effective execution?

A: As soon as you start talking growth, you're talking change. You're increasing tasks. You're focusing on different responsibilities. You're entering new markets. You're developing new products. One thing that relates to execution right away is the speed of change. If I implement a big change during a growth spurt and develop new responsibilities around new strategies in new parts of the world, and I do all these things simultaneously, I'm potentially creating problems with growth because speed can kill. If I make too many changes and do too many things simultaneously, I'm creating additional problems for execution.

As companies grow, it's important that they answer questions like: How fast should we grow, how do I ensure responsibility and clear accountability as I'm growing; how do we ensure that we have the right capabilities, including skills, IT, information, and people? What kinds of people do I need? What training do they need?

However, planning a strategy requires fewer people than the execution. Once you start delegating and getting involved in different aspects of execution, you're getting more people involved at lower levels without even growing. Even assuming organizational size remains constant, there's another problem: As you get more people involved, it's harder to control execution.

Here's an example: A financial institution I was working with created a program at the corporate level to better integrate the branches. When the managers went to check