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— BOO s still mostly poor. s still mostly poor. BUSINESS ’ s big buffet ’

, which our reviewers consider one of the , which our reviewers all of them influential business thought leaders strategy+business s Francis Bacon once said, “some books are to be books are “some once said, Bacon s Francis and some few to be tasted, others to be swallowed, to you welcome Thus, we chewed and digested.” of the best business books published since last fall. of the best business books published —

One World: The Ethics of Globalization The Ethics World: One ve noted before that the books that are published say a great that the books that are noted before ve ’ We Our list of the best business books is both eclectic and subjective. Our Enjoy the brain food that follows. We hope you We the brain food that follows. Enjoy

to seek out works that either make substantive contributions to the that either make substantive to seek out works A best books on leadership ever written by a business executive. In the In a business executive. written by best books on leadership ever latter is deal about the times in which we live. The 2002-2003 crop of busi- The 2002-2003 crop live. we deal about the times in which Times know: already ness books confirms what businesspeople of this year than a little unsettling. Many and more tough, remain best books are about the basics of coping with complexity and uncer- about the basics of coping best books are encouraging innovation, strategy, tainty: devising a successful growth an execution-focused creating building managerial effectiveness, troubling, and insights into recent, provide organization. Others force work corporate scandals, a questing and trends: events ing values, turmoil in the Third World. Third turmoil in the ing values, ask our critics We — insights or bring to business provocative body of business knowledge, Jr. Gerstner the first categoryV. other fields. In from is Louis Says Elephants Can’t Dance? Can’t Elephants Says Peter Singer, a challenge to the way citizens of rich nations think way citizens a challenge to the Singer, Peter in a world that about their responsibilities books reviewed in the following nine essays provide real nourishment. real nine essays provide in the following books reviewed

BUSINESS HISTORY HUMAN CAPITAL VALUES LEADERSHIP CORPORATE SCANDALS INNOVATION GLOBALIZATION

MANAGEMENT STRATEGY BEST 48 INDEX Best Business Books 2003 Classics Recalled 45 by Rob Norton 41 by Charles Handy 37 by Kate Jennings 31 by Bruce A. Pasternack and James O’Toole 26 by Nasar Sylvia 21 by Rob Walker 16 by Randy Komisar 9 by David K. Hurst 3 by Chuck Lucier and Jan Dyer CONTENTS

content best business books 1

content best business books 2

by Douglas Brinkley by Michael Lewis by Louis V. Gerstner Jr. Gerstner by Jr. Louis V. Values The Support Economy: Why Corporations Individuals Failing Are and the Next Episode of Capitalism, by Shoshana Zuboff and James Maxmin Human Capital Moneyball: The Art of Winning an Unfair Game, Business History Wheels His for the Henry World: Ford, Company, and a Century of Progress, 1903–2003, Leadership Who Says Can’t Elephants Dance? Inside Historic Turnaround, IBM’s by Clayton 2003 by Bethany McLean and by Jeremy by Hope Jeremy and Robin Fraser Globalization One The World: Ethics of Globalization, by Peter Singer M. Christensen and Michael E. Raynor Corporate Scandals The Smartest Guys in the Room: The Amazing Rise and of Fall Scandalous Enron, Management Beyond Budgeting: How Managers Can the from Annual Free Performance Break Trap, Innovation Open Innovation: The New Imperative for and Technology, Creating from Profiting by Henry Chesbrough Strategy Solution: and Creating The Innovator’s Growth, Sustaining Successful Peter Peter Elkind

S B’S TOPSHELF

Illustrations by Tavis Coburn Tavis by Illustrations OKS

su 33 issue strategy+business Believe it or not, 25 years ago no one it or not, 25 years Believe Value ow important is strategy and why? ow benefits The asked these questions. even might call what we strategy, of an effective No longer. Today, no self-respecting fast tracker no self-respecting Today, longer. No strategy’s value proposition, seemed overwhelming: The seemed overwhelming: proposition, value strategy’s that could be superior profitability right strategy ensured expected to spend were Executives sustained indefinitely. and communicating their considerable time developing Companies maintained large strategic-planning strategy. mobile exec- as a strategist put the upwardly staffs. Skill on the fast track. utive companies Few would seek a job as a strategic planner. Although strategic planning them anymore. have even ubiquitous — everyremains organization needs to coor- — the planning process dinate its plans for the future attention. no longer commands top management’s of levels — steadily increasing excellence Operational Strategy’s Strategy’s NEW by Chuck Lucier and Jan Dyer Proposition H STRATEGY

content best business books 3 content best business books 4 not

— BOOKS not to justify expectations, ’ — BEST 03 t drive growth growth t drive ’ s major markets may have con- may have s major markets ’ became clear during the past two decades that operational excellence important of prof- driver was a more itability than strategy was, managers that operational recognizing now are doesn excellence even excellence in product innovation, in product excellence even acquisitions. Competi- or marketing, tion has intensified so much that customers exceeding of per- achieving world-class levels formance, and continuously improving and adapting to the changing faster-than- no longer ensures market of Instead in profits. growth market the new strategy value proposition. Of the new proposition. strategy value growth Those of us who believe that strategy is important that strategy Those of us who believe course, growth in both revenue and profitability has and profitability in both revenue course, growth and always been important. recession And although deflation in the world tive industries and on building scale or a strong brand or a strong scale on building and industries tive sustain its profitability a company to that allowed and competitors, demands of customers, despite the key ele- thinking about the Although the best suppliers. competen- time into core over evolved ments of strategy or into of the industry, visions for the future cies, into new for business models, the justification innovative a longer time. over profits be more strategy continued to need a new proposition strategy value demonstrate to pragmatic business- the concept, but to as important as are strategies effective people that more this new propo- Whatever value operational excellence. fundamentally new likely require sition may be, it will strategy. ways to think about Requirement Growth’s of the best strategy books published this year Three make tributed to the increased focus on growth, we think that think we focus on growth, tributed to the increased as it fundamental has changed. Just something more accelerated profitable growth, new product development accelerated profitable growth, and fragmented shorter life cycles produces product mar- to customers shifts the bargaining power kets; marketing of and causes consumers to tune out the bombardment premi- messages; and acquisitions command ever-higher product Great not acquirers. ums that benefit acquirees, are and acquisition programs marketing, development, prof- to match competitors. Accelerated merely required something requires itable growth strategy. more: — (Free unless it gets — expectations ’ Competitive Strategy: Competitive s ’ strategy both s senior executives (and rising stars) s senior executives ’ t naturally swing back to a better balance ’ s value proposition has its roots in the its roots has proposition s value ’ s best managers deliver profits. s best managers deliver ’ Strategy Of course, students of business course, Of Press, 1998, originally published in 1980) defined the Press, meant tak- Strategy all thought about strategy. way we ing the long view; strategists focused on selecting attrac- Techniques for Analyzing Industries and Competitors Industries for Analyzing Techniques 1980s, when Michael E. Porter 1980s, when Michael some help. some help. and operational excellence are essen- are and operational excellence tial, and that, like a pendulum, one to emphasis tends to swing from the other depending on the economic because the tradi- But environment. proposition tional strategy value is no longer (sustained profitability) at most companies, our hypothesis is that the credible pendulum won of strategy and operational excellence of strategy and operational excellence performance that exceed customers performance that exceed have long recognized that long recognized have Damn the strategy; full speed ahead! Damn focus on building organizations that last, continually focus on building organizations that their performanceand adapting to changing improving impatient investors, by Beset requirements. market demanding customers, and ever- competitors, business- improving people juggle too many priorities in seems a luxury: too little time. Strategy Today appears to be a more powerful driver of profitability driver powerful appears to be a more Today than strategy.

su 33 issue strategy+business s ’ are “ s first many ’ “ demon- in which s desktop ’ ” s earlier book ’ s Solution ’ new market, “ Using 75 examples of Using ” s minimills, the airline industry the s minimills, ’ The Innovator The personal computer, Sony The personal computer, ” s pervasive. ’ t been consumers of the previous products t been consumers of the previous ’ s most successful and best-runs most successful and lost companies ’ Look for new-market opportunities dis- for your disruptive technology through your Distribute Christensen and Raynor extend the low-end dis- extend the low-end Christensen and Raynor The steel industryThe Second, the authors offer a wealth of practical the authors offer a wealth Second, • • strates that the dynamic affects more than a few than indus- affects more strates that the dynamic try leaders: It they importantruption ways. First, dynamic in three add a second type of disruption, the disruptive competitor introduces products that products the disruptivecompetitor introduces and simpler to use that to own affordable so much more they enable a whole new to begin population of people do so in a more and to and using the product, owning setting. convenient battery-powered transistor radio, and Canon battery-powered copier are examples. New-market disruptions are dis- disruptionsare examples. New-market copier are their initial target is new because consumers tinctive who haven new networks, and services, value they require because is slightly different dynamic and because the competitive the disruptive competitor by offered (because the value cus- rapidly than the needs of established more increases the established value tomers, customers jump from both types of new to the However, network network). in rev- rapid growth disruption the same result: produce for the disruptive competitor and enue and profit destruction of the established competitors. to be disruptive and advice for companies that aspire the established leadership in their overturning by grow example: For industry. established distant from ruptive that are technology transistors as a popularized customers, as when Sony desktop tubes not in the core for vacuum replacement but rather in the wholly newradio market application of handheld portables for teenagers. channels that see a disruptive opportunity to increase selling motorcycles did this by their margins. Honda sporting equipment and goods retailers power through distrib- did it by dealers), Sony (rather than motorcycle discount competitors like Southwest and JetBlue, dis- and JetBlue, competitors like Southwest discount and discount Wal-Mart, like Kmart and count retailers this pat- Schwab all illustrate like Charles stockbrokers like recorders video disruption. Personal tern of low-end disrupting a estab- effect on beginning to show are TiVo Christensen lished television networks. developed this five-step dynamic to explain how how dynamic to explain this five-step developed of history their positions of leadership. their positions of industry disruptions, s ’ low- “ growth of re rewarded re ’ (published in if not in the busi- — s Dilemma: When New s Dilemma: ’ These three complementary three These growth growth as books together offer more than offer more books together starting point is the five-step ’ (Harvard Business School Press, 2003) Press, School Business (Harvard The Innovator industrythat was the subject dynamic s ’ ” s also our pick as the best strategy book of s also our pick as the BOOKS ’ to them, and for a time enjoy higher margins. to them, and for a time enjoy

Successful companies in an industry companies in an rapidly Successful than slowly much more needs increase Customer less than cus- because companies provide Initially, As the new competitor rapidly increases the the As the new competitor rapidly increases Eventually, a new disruptive competitor intro- Eventually, ” s competitive strategy. Although none of the books Although strategy. s competitive ’ s currently available, but that offer other benefits available, s currently ’ Clayton M. Christensen and Michael E. Raynor and Michael Clayton M. Christensen • • • • •

fringe practical suggestions about how to achieve growth: They growth: to achieve about how practical suggestions from different remarkably strategy, outline growth Porter their strategy together Porter, claims to replace The Innovator’s Solution: Creating and Sustaining Solution: Creating The Innovator’s Growth Successful ness school curriculum then at least in the hands of man- ness school curriculum agers growth. for a systematic way to accelerate searching is the most analytical approach to growth, grounding to growth, approach is the most analytical in a sound theoryactionable insights of industry dynamics. It The authors the year. end disruption of Christensen may prove to be strategy may prove improve the value they provide customers through a customers through they provide the value improve improve- and breakthrough combination of incremental and cost reduction. development ments in both product that successful companies offer. does the value one: As companies tomers need, the pattern is a positive they completely, meet customer needs more 1997 by Harvard Business School Press and named best School Press Business Harvard 1997 by Times/Booz at the Financial business book of that year Book Awards): Business Global Allen Hamilton value it provides, eventually it meets the needs of main- eventually it provides, value Then, the disruptive competitor customers, too. stream the established is on a path that will ultimately destroy competitors. (simplicity, greater convenience, or lower cost) that or lower convenience, greater (simplicity, in appeal to new or less-demanding customers. Secure customers, the established competitors their mainstream the disruption, that seems often welcome exit the market “ duces products and servicesduces products not as good as are that what by increasing margins. However, once these companies once margins. However, increasing by need or want, than they really offer most customers more customers value the basis of competition shifts. Existing less and less, companies compete each improvement constantly pressured. on price, and margins are more

Technologies Cause Great Firms to Fail Firms Great Cause Technologies BEST 03

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’ BOOKS s prod- ’ an oxy- they are (Portfolio, — — t surprising, ’ t aim to be dis- ’ s knee ’ BEST 03 No Matter What Matter No If there ever were any customers were ever there If The oft- — “ ” Double-Digit Growth: How Great How Growth: Double-Digit s ’ offers a offers Treacy writes. Treacy ” Taking business from competitors business from Taking segments rapidly growing Targeting adjacent markets Invading newEntering of business lines Penetrating existing customers more deeply existing customers more Penetrating as we were all told at our father were as we • • • • disciplines aren Although these five • Treacy shares his personal experience about each shares Treacy — Customer loyalty is a contradiction in terms loyalty Customer Growing the Growing Business Core Treacy Michael tries, not only startups not only tries, companies. also established but why startups and Raynor explain Christensen suc- can cessfully disrupt an industry easily than established more of the organizational They catalog many competitors. face, that established companies problems and cultural the offer a fewand they However, possible solutions. companies that don book offers little for Companies Achieve It It Companies Achieve 2003) is a perfect complement. For established compa- 2003) is a perfect For complement. entertaining, a street-smart, easy- provides Treacy nies, a cornucopia of by to-understand handbook, enlivened argues that the Treacy examples. negative and positive masters of sev- are companies that sustain rapid growth disciplines: growth of five eral (at least three) ruptivewarns them what to competitors. Although it to grow. it has little advice about how look out for, moron, they make up a very useful framework for managing expansion of the toward that is heavily weighted growth of profitable business, which is the best source core for most established companies. growth the discussion example, he begins discipline. For growth debunk- of deeper penetration of existing customers by concept of customer loyalty. ing the overhyped “ who would never abandon you for a competitor abandon you who would never doesn loyalty Sentimental to be found today. nowhere committed to complicated exist. Companies that have management don schemes for customer loyalty for it. much to show cited icons of customer loyalty uct s ’ t worry about ’ s profit pools and s profit ’ don t good enough to ’ — offers a definitive guide to offers a definitive t fully meet customer needs, ’ The Innovator’s Solution The Innovator’s s Solution that intend to disrupt their industries. ’ re deciding which operations to keep which operations to deciding re ’ definitive definitive guide to for companies growth When you The Innovator • Finally, Christensen and Raynor speculate about a Christensen and Finally, uting its portable radios through discount stores (not its portableuting stores discount through radios mar- did it by & Johnson and Johnson stores), appliance to the cardiac (not to cardiologists keting angioplasty performsurgeons who operations). bypass growth for companies that intend to disrupt their indus- growth Apple Computer was able to earn great profitability with profitability was able to earn great Computer Apple comput- user-friendly Macintosh its significantly more the inte- through ers, whose usability was made possible and operating system. gration of computer manufacture the needs of most users, Apple PCs exceeded Once architecture Wintel declined, the modular profitability dominated, and new opportuni- not-yet-good-enough and Micro- in microprocessors ties blossomed for Intel this hypothetical law of soft in the operating system. If conservation then the turns out to be valid, of profits popular tactic of mapping an industry are profits added where targeting the stages of value poor to be an extraordinarily made today will prove at a spot in Companies that position themselves strategy. performance good is not yet chain where the value extraordinary profits. enough will capture the core competencies that have served that have competencies in the past. well the core early stages when product integrate in the Vertically aren reliability functionality and one part chain because the needs of cus- from a value of fully met, opportunities for differentiation tomers are example, For elsewhere. created are and profitability they argue, when PCs didn in-house, focus on what you will need to master in the will need to focus on what you in-house, that improvements at delivering to excel in order future importantcustomers will consider new value-chain dynamic that creates opportunities for new dynamic that creates value-chain they intend to be insightful companies, whether or not is a that there They hypothesize disruptive competitors. law of conservation much like the law of con- of profits, drained are When profits servation in physics: of energy address customer needs, and look toward modularity and look toward customer needs, address costs once customer needs to reduce and de-integration fully met. are

su 33 issue strategy+business . … s growth ’ s. Think about ’ Demand innovation is: innovation Demand s efforts, it usually marks ’ demand innovation. Improve their cost structure by reducing waste, reducing by their cost structure Improve operating and capital costs, and process excess inefficiencies. make better decisions, and complexity, Reduce offerings to market. speed their own their risk and volatility. Reduce their top-line revenue. Grow While the product sale may be the culmination sale product While the of the manufacturer Identifying and servingIdentifying of new a series cus- the activities that all focused on tomer needs, company] sells [your the products surround the beginning of the customer the beginning of the • • • • also argue that hidden liabili- Wise and Slywotzky your own product or service. product business is your own If your effort, customers spent time, typical, your and product, to use your how money figuring out it, and eventually it, store maintain it, finance complex interactions may have dispose of it. It or be used as one input to a with other products serve may one than more It complicated process. needs and priorities. each with different user, these opportunities identify for demand innova- To concept that can be the basis of any company basis of any be the that can concept strategy: ties prevent firms from identifying and seizing attractive identifying and seizing firms from ties prevent in a large who works opportunities. Everyone growth the list of 12 hidden liabilities: cor- firm will recognize leadership and and history, porate mind-set, culture skills and capa- commitment, organizational structure, systems, budgeting and incentive bilities, measurements information systems, processes, allocation and resource resistance, investor customer readiness, brand/authority, authors assertThe and distribution channels/alliances. liabilities acting together are that because two or three be the liabilities must initiative, usually fatal to a growth quantified so that middle identified, mapped, and even them and senior man- managers can navigate around con- an organizational system more agers can create tion, Slywotzky and Wise suggest that you should look you suggest that Wise and tion, Slywotzky for ways to help customers: t ’ s Web ’ (Perseus because of ” Would anyone dis- anyone Would ” t contribute a new theory, ’ Double-Digit Growth Double-Digit have in fact achieved limited fact achieved in have rate of repurchase The results: How to Grow When Markets Don When Markets to Grow How any growth any strategy: demand growth innovation. Adrian Slywotzky Adrian and Wise Slywotzky Richard offer s power is not in offering something s power ’ BOOKS s not. Treacy doesn Treacy s not.

’ a new that concept can be the basis of s easy to criticize s easy to criticize ’ 61 percent of the customers were convinced that convinced the customers were of 61 percent Companies that grow in new have lines of business Companies that grow “ It “

t claim the credibility of having analyzed a large mass of having analyzed t claim the credibility ’ unique, pragmatic wisdom and easy-to- but in providing bestseller, communicate frameworks, as in his previous Publishing, 1995), written with Fred Wiersema. with Fred 1995), written Publishing, what it can peo- of data, and offers no tools or newSome concepts. recom- Treacy ple may complain that the principles exam- For obvious. discipline are mends in each growth ple, to: how know They characteristics in common. three and select new evaluate, lines of business and Identify, acquisition and structure potential acquisitions; value financial, managerial, and strategic con- deals; and exert businesses. the acquired over trol Treacy agree? Lexus owners is lower than that of Ford pickup owners, pickup Ford than that of lower is Lexus owners owners; LeSabre Buick and owners, Cadillac DeVille the com- dismantled retailer, the office supplies Staples, all of that tracked the purchases system plex, expensive for its substituted simple rebates its customers and add programs since frequent-flyer largest customers; American Airlines Marketing little to base retention, miles to other Services frequent-flyer focuses on selling Siebel, Even for their customers. companies as rewards man- relationship of customer proponent the foremost customer from results limited shows agement software, firm con- research market When an independent loyalty. companies listed on Siebel tacted the testimonial (Warner Business Books, 2003), by Adrian Slywotzky and Slywotzky Adrian Books, 2003), by Business (Warner new offers a powerful Weber, with Karl Wise Richard Growing by Growing Serving New Needs book, The third The Discipline of Market Leaders: Choose Your Customers, Your Leaders: Choose The Discipline of Market Market Focus, Your Dominate Your Narrow site,

they had yet to achieve a return on investment after two on investment a return to achieve they had yet applications, which cost an average Siebel with the years period. a three-year of $6.6 million over BEST 03

content best business books 7 content best business books 8 s ’ — s sem- ’ s value BOOKS ’ is that it (Princeton — latest think- ’ have, at least have, may be good ” — s Toolkit ’ BEST 03 Hidden assets Hidden “ its value proposition proposition its value Of course, even if strategy course, even Of attempts that make less use of its make less that attempts — — accelerates growth, the three books the three accelerates growth, together offer us many of the elements Christensen and of the strategy. Raynor help us understand the fundamental industry dynamic and disruptive exploitation of advantaged Wise and technologies. Slywotzky about way to think a powerful provide identifying and exploiting unmet cus- helps established Treacy tomer needs. And all companies build on their core. offer complementary advice on the to organizational changes required implement the strategy. s bookshelf. McAfee is an economist with a gift McAfee s bookshelf. ’ s seriously flawed. ’ or clinical support)or clinical in drug competencies distribution core superior returns creating less successful in to date, been a growth, profitable looking for When for investors. to look for disruptiveis much better advised company than to competencies its core or to leverage technologies assets. focus on its hidden University Press, 2002), for example, belongs on every 2002), Press, University strategist Competitive Solutions: The Strategist Solutions: Competitive The New Proposition tries to offer a comprehensive books of these three None Porter the way that Michael in strategy of growth sup- laid out strategy as sustained definitively inal work of suppose that the measure if we Yet erior profitability. strategy an effective marketing for Slywotzky and Wise because the phrase is because the phrase Wise and for Slywotzky marketing to companies, howev- as advice conceptually distinctive; it er, for selecting and communicating the best new thinking often economists about business, translating from by abstruse and understand- mathematics to clear English explains economists able examples. McAfee ing about pricing, auctions, signaling, and incentives ing about pricing, auctions, signaling, and incentives potential for a make-or-break key decisions that have a consumer packaged- book can help His company. many dollars should be goods company decide how much a telecommunications how spent in promotions, company should bid in public auctions of the electro- a magnetic spectrum, or how manager should purchasing proposition is changing, we can still learn from books can still learn from is changing, we proposition McAfee R. Preston about optimizing profitability. s s ’ ’ — First, t. ’ Harvard s demand ’ t nec- ’ the reality is that prof- the reality ” s principal ’ attractive growth strategy; it growth attractive seems to us ” The Core Competence of the The Core s far too early to tell if they will s far too early to tell ’ “ hidden, one “ effective growth strategy and may growth effective s competitive advantage: its compe- advantage: s competitive ’ only article s entry into the landscape distribution ’ may be theoretically established firms can generate superior ” ” How to Grow When Markets Don When Markets to Grow How hidden assets, “ core “ Our other major concern is that other major Our Despite these strengths, we have two major con- have we these strengths, Despite s greatest strengths, which are apparent to all. apparent which are strengths, s greatest ’ itable growth most often results from building on a busi- from most often results itable growth ness Corporation, economics by building on their core competencies building on their core economics by i.e., on their most important assets. While the assets that i.e., on their most important assets. be may leveraged are tencies in managing physical distribution. Cardinal attempts to build businesses that support recent more (like dosage formulation pharmaceutical manufacturers Cardinal Health illustrates the point. Cardinal Health Cardinal innovations in managing pharmaceuticals in hospitals innovations because they built on precisely profitable extremely were of Cardinal the core Business Review Business one of Slywotzky and Wise and one of Slywotzky not even be the most important. be the not even ducive to growth. Addressing these organizational Addressing to growth. ducive at most companies. can jump-startinhibitors growth cerns about business, even though it business, even Slywotzky and Wise significantly overstate the impor- overstate significantly Wise and Slywotzky in their dis- example, For innovation. tance of demand leading pharmaceutical the Health, cussion of Cardinal Treacy- the the authors ignore distributor in the U.S., generated business that Cardinal in the core like growth Similarly, its extraordinary operational excellence. from demand innovations, several the authors cite as successes such as Deere certainly not the concepts, in fact accelerate profitable growth. So reader So growth. in fact accelerate profitable beware. is innovation Demand to be seriously misleading. Their point to be seriously misleading. that some of the competencies that aren for growth can be leveraged essarily correct. But to suggest that a company But correct. it build on its hidden assets is to give The correct license to do anything. point, of course, is that profitable than the discov- more requires growth ery needs: Profits of unmet customer superior business econom- also require ics. As Christensen and Raynor in superior economics can be grounded the emphasize, and Gary as C.K. Prahalad Or, a disruptive technology. than a decade ago in their argued more Hamel

su 33 issue strategy+business MANA Double-Digit Growth Double-Digit and The Innovator’s Solution,The Innovator’s How + structure auctions. If you are the are you If auctions. structure of for one person responsible

BOOKS is senior vice president ([email protected]) ([email protected]) spent 12 years at Booz Allen ([email protected])

And that returns us to the strategy value proposi- to the strategy value us And that returns business is one of the fortunate your few Unless

tion. The 25-year decline in the time, attention, and decline in the The 25-year tion. of the experience to strategy reflects devoted resources only one of many is that “strategy” most senior managers — and a far less important of profitability driver drivers In execution. and effective than functional excellence insights just raise the bar on that context, McAfee’s for those of But excellence. in functional required what’s that the pendulum has swung too far and us who believe sufficiently focused on creating that businesses aren’t will be the new strategies, the question of what powerful acceleration of prof- is critical. Does proposition value think so. We strategy? an effective require itable growth The jury is the on whether or not growth is still out clear but it’s for strategy, proposition value definitive that it is at least part of it. and profitability confident that it can generate excellent then sustain rapid growth, those functions, McAfee’s book helps you do a better job helps you book McAfee’s those functions, senior manager or for a But a hero. you and makes issue is not the manager, to be a senior someone aspiring these decisions; it’s to make how so much understanding ways to make the right powerful are that there knowing are that those approaches sure decision and making book so that you in McAfee’s covered what’s used. Know it to bookshelf and give your when to take it from know for the decision. the person responsible to Grow When Markets Don’t, When Markets to Grow are essential reading. Since each book excels in a differ- each book excels Since essential reading. are pow- more the books are story, ent aspect of the growth separately. together than when read erful when read path to an effective books provide the three Together supported examples and practical concepts by growth, that serious businesspeople can adapt to accelerate prof- these And for the strategists out there, itable growth. new an evolving value important steps toward books are for strategy. proposition Hamilton, Hamilton, consulting to a variety of industries and serving as of first capital. She director the intellectual specializes firm’s in and strategy the application strategic of knowledge and learning. Jan Dyer Chuck Lucier

emeritus of Booz Allen Hamilton. He writing is a currently book and consulting on and strategy issues knowledge with clients. selected latest publications, see Lucier’s www.chucklucier.com. For Mr. BEST 03

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BOOKS that capitalism — . to modern times. (Harvard Business (Harvard C . BEST 03 B (Currency Doubleday, (Currency — (Crown Business, 2003), by Leslie by 2003), Business, (Crown Toxic Emotions at Work: How Work: at Emotions Toxic (Modern Library, 2003), by John 2003), by Library, (Modern Burnham discordance defined the bat- discordance Burnham – (Perseus Publishing, 2003), by James 2003), by Publishing, (Perseus The Managerial False Prophets: The Gurus Who Created The Gurus Prophets: False The Company: A Short History The Company: A Short of a Who Really Matters: The Core Group Theory of Group The Core Matters: Who Really When You Say Yes But Mean No: How Silencing How No: Mean But Yes Say You When Beyond Budgeting: How Managers Can Break Free Break Can Managers How Budgeting: Beyond The Orwell In In School Press, 2003), Jeremy Hope and Robin Fraser and Robin Hope 2003), Jeremy School Press, a newpropose management model that leads to a radi- And two more cal decentralization of managerial power. effects of exercising the negative books investigate power: Compassionate Managers Handle Pain and Conflict Pain Handle Compassionate Managers from the Annual Performance Trap Performance the Annual from Micklethwait and Adrian Wooldridge, tracks the evolu- Wooldridge, and Adrian Micklethwait 3000 tion of the corporation from Revolutionary Idea for Bad Are Their Ideas Why and Management Modern Today Business (Harvard Business School Press, 2003), by Peter J. Frost. J. Frost. Peter 2003), by School Press, Business (Harvard the Framing Debate to begin back in 1941. Con- is useful, however, It notion of the left a favored travening would turn into socialism in Burnham, Conflict Wrecks Relationships and Companies...and What and Companies...and Relationships Wrecks Conflict It About Do Can You Hoopes, takes the management gurus of the past to Hoopes, with the issue of mana- task for failing to deal squarely gerial power. A. Perlow, and A. Perlow, Power, Privilege, and Success Privilege, Power, 2003), Art Kleiner examines the nature of power within of power 2003), Art Kleiner examines the nature organizations. tle lines between the opponents and supporters the opponents tle lines between of man- a field that continues to be creating agerial power, new man- highly regarded Six to this day. fought over state of into the current insight agement books provide the debate. ” and The right “ came in 1984 Animal Farm Animal of are the reigning prin- the reigning are ” s inspiration for ’ s future. s future. ’ cooperation “ is such a loaded word that it is that is such a loaded word s massive wartime bestseller, wartimes massive bestseller, ’ and ” frequently absent from discussions of man- absent from frequently (pre- agement, especially today when such concepts as sumably antithetical-to-power) ower

Orwell is widely regarded as having been Orwell is widely regarded

George Orwell,George whose centenary birth is being cel- collaboration ciples. Yet every a solid manager must have competent Yet ciples. and any organization use of power, grasp of the effective but also the abuse of power, can be crippled, not only by addition, the role imbalances in its distribution. In by lie at the heart of and legitimacy of managerial power any analysis of capitalism ebrated this year, understood this latter issue particular- understood this latter issue ebrated this year, novels for his two known Best ly well. “ Managerial Revolution: What Is Happening in the World, in the Happening Is What Revolution: Managerial published in 1941 by the John Day Company. Company. Day the John published in 1941 by 1984, by David K. Hurst Destruction Destruction Managerial Weapons Weapons about Communism and Fascism, the two ideological about Communism and Fascism, his writings also have But scourges of the 20th century. of capitalism, for what is less a lot to say about the future is that Orwell known well

part his deep antipathy to the central message of from Burnham James

P AGEMENT

su 33 issue strategy+business … The John agency “ ” the rule of right “ The Company, The Modern Corporation The Modern as it came to be known, was as it came to be known, ” s seminal work in the process. s seminal work ’ (Commerce Clearing House, (Commerce writers for the U.K. weekly writers for the U.K. weekly — problem, Micklethwait and Adrian Wooldridge and Adrian Micklethwait in a mar- perspective supply a broader survey, compact, well-written velously 1932), by Adolf A. Berle and Gardiner Berle A. Adolf 1932), by this monumental classic, In C. Means. which is still in print, the duo offered data to document statistical extensive the decline of the individual and the rise of the owner/proprietor The separation of owner- corporation. the or control, ship from consequences that profound to have In continue to play out to this day. their new book, show that from the beginning the corpora- that from show In the modern corporation the decisive the modern corporation In

“ ” — The authors Managerial power did not meet this test, Drucker did not power Managerial Indeed, over the centuries there seem to have been seem to have centuries there the over Indeed, framing Berle and Means framing Berle their subjects, indicating that the lack of such justifica- lack of such that the indicating subjects, their suggest- Drucker tyranny. lead inevitably to tion would brute force society, a functioning, sustainable ed that, in had to be exer- normal times power In resort: was a last he defined as which cised as authority, over might. over suggested: no one from the managers, is derived that of power, to no nobody and nothing and responsible by controlled unfounded, unjusti- is in the most literal sense one. It power. and irresponsible fied, uncontrolled, Corporate Power Corporate in Power Society and Peter Burnham early writings, both James their In heavily upon drew Drucker Economist tion has been both an economic and a political animal: incontestable, are The economic benefits it has delivered but its political legitimacy has always been a problem. and abuse, success, excess, of innovation, cycles several These cycles political outrage and reform. by followed either the exploitation of new by often catalyzed were metals) or the and precious (spices, slaves, resources emergence of new and technologies (canals, railroads, most are cycles These communications technologies). the economic in the U.S. and the U.K., where marked in America has been emphasized, of the corporation role of consideration of its political almost to the exclusion seem less noticeable in contrast, these cycles franchise. In and Private Property and Private To “ (John Day Defenders of Defenders published in is can be read as a can be read doublethink: like sociologists ” contended that both that contended (John Day Company, (John Day 1984 the de facto control of control the de facto — followers, s notion of The End of Economic Man: A Man: of Economic The End ’ “ s lack of concern for the ethical ’ dynamics were changing into changing were dynamics Revolution, The Machiavellians, The Machiavellians wrote Burnham. wrote

” the managers won. the managers won. ” — The Future of Industrial Man of Industrial The Future BOOKS The leaders must profess, “ Indeed, the whole of Indeed, s next book, ’ ” , and Burnham

Orwell concluded that Burnham rather approved of rather approved Orwell concluded that Burnham It is but a short this step from It The subtitle of

although they had to pretend that although they had to pretend The leaders, if they themselves are The leaders, if they themselves the factors of production and the exercise of power by of power and the exercise of production the factors Thus, or workers. rather than shareholders managers of this for the use the rhetorical justifications although was societies, the result across differed might have power always the same this development and accused him of both cowardice and accused this development by seemed bolstered charges that worship, and power Burnham what he called managerialism managerialism what he called Study of the New Totalitarianism of the New Study “ scientific, must lie. chilling thought to Orwell indeed foster, belief in the myths or belief in the myths indeed foster, the fabric of society will crack and they will be overthrown, 1943 by the John Day Company. In it, Burnham argued it, Burnham In Company. Day John the 1943 by eyes the at the evidence through that, when one looked and his of Machiavelli democratic self- Pareto, Vilfredo and Michels Robert ideal: All societies and was an unattainable government inherently were social movements was of necessi- stratified and all power and fraud. Although ty based on force in the the masses might need to believe myths, their leaders and other members of the elite, who studied the evi- could not believe dence scientifically, — they did. Freedom issues distressed not only Orwell but also Peter Drucker, not only Orwell but also Peter issues distressed at about the who had begun his American writing career In same time as Burnham. know and not to know, to be conscious of complete and not to know, know constructedtruthfulness lies, to while telling carefully hold simultaneously two opinions which cancelled out, them to be contradictoryknowing and believing in both of them. 1939) and underlined the need for the 1942), Drucker Company, to justify their behavior as benefiting wielders of power

cautionary tale on what organizations look like if mana- is unchecked. gerial power BEST 03

content best business books 11 content best business books 12

BOOKS bad for busi- “ BEST 03 Distinguished Professor of History Professor Distinguished all of a sudden the organization is all of a sudden the — False Prophets, False because, through superfi- because, through Core Groups are inherently neither good nor bad, inherently are Groups Core In ” James Hoopes of Babson College examines the writings of Babson Hoopes James to Taylor of eight management experts, Frederick from ways in which they the various and shows Drucker, Peter either duck or finesse the question of managerial power. been makes a compelling case that these writers have He that cultures much happier expounding on integrative and on the the ordinary, to go beyond workers empower high performers, virtues plans that reward of incentive argues, Hoopes and threat. than talking about coercion that this bias has been less convincingly, ness cial talk about the possibility of Group. Nevertheless, the Core Group is real: It is the It is real: Group the Core Nevertheless, Group. wants mind, and its of the organizational embodiment will the organization amplified so that are and needs way of describing Kleiner has an eloquent meet them. a Core a member of such like to become what it feels in love organization falls he writes, as if the is, It Group: This is no passing fancy but a deep, with the individual. headlong passion showering you with money and perks and giving you with money and perks you showering The individual is usually secrets. access to its innermost such a power- to resist off his or her feet, helpless swept ful seduction. a fact of organizational life and are Kleiner suggests; they is to make sense of a complex essential if an organization Core however, world. Like the individuals in them, The the potential for both good and evil. have Groups expan- more argues, are the author Groups, better Core and membership in in their spread, and inclusive sive other characteris- them is based on merit rather than on cites Springfield tics, such as gender and race. He and its open-book Company (SRC) Remanufacturing of an Expanded- style of management as an example everyone has access to organization where Core-Group and the accessibility of This transparency, the numbers. of performance of cause and and the webs the measures them, would seem essential to the effect that produce as legitimate. acceptance of managerial power ” s the care and feed- s the care ’ management consultant — and a political animal. Its political a book that began as a series of — The Customer Comes Eighth. The Customer legitimacy has legitimacy always been a problem. “ Micklethwait and Micklethwait show that Wooldridge operations in what was to become the operations in what the corporation the has corporation been both an economic strategy+business s East India Company and the brutalities Company and of the s East India ’ s first priority, or, as Kleiner puts it in the title of as Kleiner puts it in the or, s first priority, ’ From their high-level perspective, Micklethwait and Micklethwait perspective, their high-level From Although the Core Group is present in every is present organ- Group Although the Core Who Really Matters Who Really articles in requires that they be modular and hierarchical in struc- that they be modular and hierarchical requires of people will inevitably be an elite group There ture. for the performance of the who assume responsibility will be applied. whom power organization and through In The complexity and scale of most modern organizations The complexity and scale of most modern The Managerial Elites concessionaire Germany and Japan, where corporations are far more are corporations where and Japan, Germany process. and the political in the community embedded on social pressures economic and As the current social stability however, indicate, and Japan Germany econom- at the price of reduced been bought may have to change. response and a sluggish societal ic benefits of corporate the latest crop by unfazed are Wooldridge just partThis is of the cor- of the evolution shenanigans. of with the bloody excesses poration, and compared England Belgian Congo, the misdeeds of Enron and WorldCom and Enron Congo, the misdeeds of Belgian extract mil- can today if executives do seem trivial. But with- and employees shareholders lions of dollars from Why to such mayhem, the question is, out resorting would they bother? Art Kleiner writes for organizational insiders about this found in every specimens of which are institu- group, does not Group, The elite, which he calls the Core tion. necessarily consist of managers alone, although they usually make up the majority of it. It ing of this Core Group that is far and away the organi- Group ing of this Core zation his opening chapter, his opening chapter, ization, its existence may be shadowy and even undis- and even ization, its existence may be shadowy to admit that any- cussable, with managers reluctant actually exists. the formal structure thing beyond of the members Kleiner suggests that up to 95 percent contractual relationship a purely of an organization have not members of the Core with the establishment and are

su 33 issue strategy+business with — rather than — is among the forecasting of results and the manage- and the of results the forecasting — As every the traditional knows, critic of budgeting The authors emphasize that their proposal is not that their proposal The authors emphasize The authors make two key recommendations: The The authors make two key recommendations: s power structure, so we have been warned! have so we structure, s power ’ consultant Robin Fraser show managers how to aban- how managers show Fraser Robin consultant the whole performance and improve don budgeting process. management organizational two incompatible confounds approach purposes ment of performance. The contradiction between these between The contradiction ment of performance. in the busi- the change by two aims has been dramatized contin- steady, one of relatively from ness environment financial capital dominated, to uous change, where discontinuous change, where one of unpredictable, its budgeting, with Traditional intellectual capital rules. targets to fixed geared incentives emphasis on lockstep and payouts to bizarre has led into the future, projected behavior on the part aberrant of executives, increasingly gaming of the performance widespread ranging from management system to outright fraud. about new metrics but about a whole new management adaptive more model that leads, at a minimum, to the organization and, at a maximum, to within processes Every power. a radical decentralization of managerial to change escalates that resistance change agent knows an organiza- rapidly any time one talks about changing tion first is for firms to move from future-oriented, absolute future-oriented, from first is for firms to move performance contracts to arrangements whose payoff assessment of performance depends on a retrospective key performance to benchmarked indicators relative of the need for solid the second is to take care (KPI); Thus managers set forecasts. numbers with rolling goals based on external comparisons stretch industries or competitors, for example not con- are These targets internally negotiated targets. based on the are Rewards to incentives. nected directly decided and are success of the team or group relative after the fact, which discourages gaming and encourages coopera- creation, managers to focus on continual value communi- open business units, and timely, tion across the conditions short, it creates cation and feedback. In ” — Beyond moral ’ show me show “ on the part — notably by Peter notably by — to convey to the convey glandular experience Toxic Emotions at Work Toxic manipulating culture and by and culture manipulating to managers appealing of the phenomena it describes. emotional intelligence emotional intelligence — s yardstick for democracy is Thomas for democracy is s yardstick ’ the few the management few books able are unlikely to succeed. If, as Hoopes sug- as Hoopes unlikely to succeed. If, are BOOKS and Hope Jeremy management researcher retrospective and provisional. Hoopes has no Hoopes and provisional. retrospective — s agrarian idealism, an unrealistically tough an unrealistically s agrarian idealism, ’

— Hoopes

Budgeting, vanity, writers may blind managers to the inherently may blind managers writers vanity, its and power of managerial nature undemocratic of free- our social values contradiction of fundamental to needed, according What is equality. dom and of managerial on the reality emphasis is more Hoopes, and self-awareness in corporations and more power moral humility of those who wield it. of those who wield a performance trap and a tool for repression. In In a performance trap and a tool for repression. Managers usually say that they employ power only in power usually say that they employ Managers The organizational performance. the cause of improving primary tool for performance management at most And the control organizations is the budgeting process. it the allocation of and through of this process, of managerial potent sources themselves are resources, the know, as many employees Unfortunately, power. of budgets is often a dysfunctional ordeal preparation Power and Power Performance Jefferson variety variety suggestions to make, either on this issue or on the suggestions to make, either on this would Many of corporate governance. issue broader and that the power can control argue that only power checks and balances on the continuing glob- appropriate to be discovered. remain in corporate power al growth for managerial power can be its superior performance. for managerial power such performance, in measuring the problems Given the any such legitimacy must always be of Drucker Drucker and manage- democracy to make us free need gests, we only legitimacy rial capitalism to make us rich, then the

standard against which all political institutions, past and which all political institutions, past against standard would fail to measure let alone corporations, present, case that attempts make a strong he does However, up. with social legitimacy on managerial power to endow it uses the basis of the processes BEST 03

content best business books 13 content best business books 14 s ’

BOOKS organiza- ” BEST 03 poisoned “ s targets to the core issues. The issues. s targets to the core ’ is among the few management The second of the books dealing actions that challenge the organiza- a position of authority and by restrict- a position of authority and by ing one objective of the pattern-breaker is to the pattern-breaker of objective turning seek mutual understanding by difficult situations and devel- around There oping the support of others. does but Perlow nothing new here, a serviceher readers dramatizing by the pervasiveness of organizational silence and the damage that it can do. with managing conflict and the nega- Peter is by of power consequences tive of Kaiser Professor F. the Edgar Frost, on the Behaviour Organizational — actions ” The feelings this arouses are not pleasant: The book not pleasant: are The feelings this arouses The antidotes to endemic silence suggested by The antidotes to s norms, and obviously this is done more easily from this is done more s norms, and obviously ’ s feelings that is the hallmark of the abuse of power. s feelings that is the hallmark ’ deviant books able to convey to the reader the glandular experi- to the reader books able to convey ence of the emotional phenomena it describes. consists of series of vignettes of Toxic Emotions at Work at Emotions Toxic tions, unrelieved by any lighter moments. Because he any lighter moments. Because by tions, unrelieved emotional pollution to be systemic in human believes and deals less with the causes of organizations, Frost for this pollution than with the handling of the cures people he calls by symptoms of organizational toxicity, the handlers. Reading toxin book is a bit like stepping into about a dot-com startup a dot-com about observed she as her capacity in life cycle its entire With ethnographer. an organizational firm goes the years, into a space of two compressed birth, stages of conception, the well-known through with bewildering decline, and death maturity, takeoff, do not have made that are each stage, decisions speed. At but con- Group, Core the entire the commitment of the Indeed, let alone confronted: voiced, rarely cerns are the prob- exacerbated to have to go fast seems pressure then sud- and drifts, at first slowly The company lem. into bankruptcy. denly, the break has to science. Someone not rocket are Perlow and only a person changing his organizational pattern, This will require do this. behavior can or her own “ tion Faculty of Commerce at the University of British at the University of Commerce Faculty image of pollution to uses the powerful Columbia. He visceral book about the damage cre- a far more produce the insensitivity to other peo- ated in organizations by ple desirable “ silence begets — Leslie Perlow, an assis- Leslie Perlow, s book is a compelling story ’ learning stops at both the individ- s organization is a ’ — rather than as to-do items. The authors have items. rather than as to-do ” Hope and Fraser make it clear that radical decen- make it clear Fraser and Hope been made these have like Recommendations The use and abuse of power is not the only cause of The use and abuse of power The core of Perlow The core When You Say Yes But Mean Yes Say No, When You Managing Power Managing Plays Power both legitimate of power, The exercise and illegitimate, can damage people and organizations in many ways. documented these effects are of Some management books. In in two recent model of clarity, and every chapter has model of clarity, helpful summaries. outcomes everygiven a good manager who is serious about change and rationale to go process place to start and an excellent with it. Radical decentralization mini- of managerial the accumulation mizes organizations and, at the top of power creat- avoids its transparency, through can be ing contexts in which power abused. The book for learning within the business context. context. the business within for learning model potential of their is essential if the full tralization centralist tenden- the how They show is to be realized. such as undermine tools, budget model can cies of the and customer benchmarking, scorecard, the balanced designed to support that are management, relationship decentralization demands a Such troops. the frontline framework clear principles and that has new governance local decision making, a high-per- boundaries to guide to decide at the local level, formance climate, freedom and so on. information culture, an open and ethical as across come they have but too often before, organizational silence, but it is probably the leading one. organizational silence, but it is probably impose and encourage contexts and cultures Various egalitarian organizations, for example, silence: Many members refrain norms of politeness, where develop silence can discussing issues that divide them. Such from perpetuate itself in a vicious spiral tant professor at Harvard Business School, discusses the Business at Harvard tant professor of conflict with- of silence and the suppression problem in organizations. of organizational its causes, the result Whatever silence. silence is the same ual and group levels, because people, cut off from time- people, cut off from because levels, ual and group to measures unable to take corrective ly feedback, are deal with identifiable problems.

su 33 issue strategy+business Financial , the Crisis & Renewal: (Harvard Business (Harvard (Free Press, 2002). A Press, speaker (Free Learning Learning from the Links: Mastering + Harvard Harvard Business Review , is the author of ([email protected]), a ([email protected]), contributor to regular , and other leading business publications. Power is needed in organizations at all times, but at all times, in organizations is needed Power Orwell understood this linguis- George would have and fury, but perhaps the resulting debate will help will help debate the resulting perhaps but fury, and organizations in power of managerial the role us clarify and talk about it plainly it easier for us to and make alerting its use is being the occasions when us to openly, concealed. will always be the tough, there really when the going gets at to achieve to use raw power temptation for managers — while least part reward — personal of their objective We alibis. intellectual high-flown cloaking its use with in the this process become all too familiar with have and collapse of firms like Enron aftermath of the together elaborate rationalizations, where WorldCom, used to intimidate crit- were power, with the use of raw ics and hide wrongdoing. mass of … words completely: “A process tic cover-up blurring the outlines falls upon the facts like soft snow, enemy of clear The great up all the details. and covering is a gap between When there language is insincerity. aims, one turns as it were declared and one’s real one’s and exhausted idioms, like a to long words instinctively cuttlefish squirting management writers can ink.” If that masks power, of language help us strip away this veil indeed. it will be progress and writer on management, Mr. Hurst and also writer wrote on management, Mr. Times David K. Hurst strategy+business Meeting the Challenge of Organizational Change Management Using Lessons from Golf School Press, 1995) School and Press, was a visiting scholar/practitioner at the N.C., Center Leadership for in Creative in Greensboro, 1998–99. His writing has in appeared appearing in organi- ” the organizational equivalent of equivalent the organizational The emergency room: a hospital Chief Toxin Handler Chief Toxin

BOOKS “

If you are a toxin handler, or if your organization your or if handler, a toxin are you If The virtue and ana- of this book is that it highlights If Huntington is correct, the coming battle will is correct, Huntington If

needs one (and every Frost organization needs several), he handler, toxin As a for you. advice has some excellent up with pain and follows and your role names your practice, some conduct your to sound counsel on how in the physical world. handlers toxin of it based on real work should never handlers toxin Thus he says that expe- with more alone, and newcomers should be paired rienced partners; handlers should be protected toxin flexible schedules and deadlines that rec- harm by from and the double duty they are special role their ognize to recov- breaks handlers need regular toxin doing; lastly, also empha- rigors of their activities. Frost the er from handlers, like top toxin for effective the necessity sizes performers their phys- in any field, to continually build ical, emotional, mental, and spiritual capacities. and formalizes organizational problem an endemic lyzes the emphasis on it. However, the task of addressing rather than on fundamental preven- symptomatic relief see will means that it is unlikely that we tion and cure the job of toxin handlers battle away bravely, like so many ER sur- like so many bravely, handlers battle away toxin in the and well-being their health geons, sacrificing is little satisfaction there unlike in the ER, But process. organizations to health. sick and damaged in restoring handlers strugglemanagers The toxin insensitive while drip poison. systems continue to and flawed zations anytime soon. make everything look like mere before that has gone of sound will be a good deal doubt there skirmishes. No The respected political scientist Samuel Huntington has Huntington political scientist Samuel The respected and suspicion of suggested that opposition to power of embodiment as the most dangerous government themes of American political the central are power with its absolute moral creed, The American thought. egalitarianism, and democracy, of universalism, values outbursts of what he in regular individualism, results passion, when institutions and their officials calls creedal possi- that they cannot held to puritanical standards are is suggests that because power bly meet. Huntington the seen as corporate rather than governmental, now against the next period of this passion could be directed corporate sector. Power and Power the American Creed BEST 03

content best business books 15 content best business books 16 as

BOOKS . The com- innovation change How Breakthroughs How is BEST 03 like the Internet or like the Internet — In the thesaurus, the first In ” innovation I tend to think of innovations as breakthrough ideas as breakthrough I tend to think of innovations Three of the books chosen explore innovation from innovation of the books chosen explore Three the introduction of something new;the introduction a new idea, succeed. When I am pleasantly surprised by a business I am pleasantly surprised by When succeed. of the insights that it pro- book, it is because of the value examples that it gives. rather than the advice or vokes or game-changing technologies are there the other hand, I know genetic sequencing. On successful businesspeople who con- many hardworking, to be innova- cereal sider new packaging for a breakfast defines OnLine Merriam-Webster tive. bination seems like a good working definition to me: A bination seems like a good working or smallness is not new idea that effects change. Bigness this definition in mind, I set out to see With important. batch of writers had to teach us about what the current innovation. each holds the viewan analytical perspective; that net- In to innovation. critical are works Happen: The Happen: Truth Surprising Companies Innovate How About method, or device: novelty. that comes up for word “

High Art et me admit right up front that I am an et me admit right up front Silicon junkie. Coming from innovation to be the high I consider innovation Valley, operating an efficient, art of business. Sure, t creating something new? Innovative busi- something new? Innovative t creating ’

Business

One more thing before you read on: I am not a big read you before thing more One by Randy Komisar of THE fan of business books that purport to tell you how to fan of business books that purport how to tell you productive, competitive widget maker is the Holy Grail widget maker is the Holy competitive productive, great managers, and I admire for many professional what use is it I find it. But wherever operating prowess all if it isn an engine for change. And change is exciting nesses are because it is ripe with opportunity and possibility.

L INNOVATION

su 33 issue strategy+business s ’ it is then nec- — Henry Chesbrough carries this Henry Chesbrough and that accept the failures that and that accept the failures — then you are likely to fall prey to the to fall prey likely are then you — t have an organization and culture that an organization and culture t have adoption and success. Consequently, ’ ’ remarkably little. Rather, it pulls together little. Rather, remarkably ” Open Innovation, Open dominant logic. In order to innovate, according to innovate, order dominant logic. In ” Take the example of Design Continuum, a prod- Continuum, a of Design the example Take Hargadon holds that it is not enough simply to holds Hargadon In These collectives and communities are directly and communities are These collectives invents safer brokers rather than inventors, not to diminish their diminish not to inventors, rather than brokers most innovation importance how but rather to illustrate actually occurs. its Despite Mass. firm located in Newton, uct-design Continuum Design products, innovative of resume “ knowledge from its divergent experiences to form com- experiences to form its divergent from knowledge When pelling new problems. various solutions to design a new the firm to athletic shoe, retained Reebok with med- upon its prior work Continuum drew Design air bladder for ankle an inflatable ical IV bags to develop support certainly and comfort. not new to bags were IV quite new to the were but they the medical industry, bridged the two Continuum shoe business. Design solution. a novel worlds to create apply disparate ideas to new solutions “ com- it is best to start opening up your to Hargadon, by and developers, and in particular researchers your pany, contrast to the This stands in stark to outside thinking. efforts like those of AT&T classic monolithic research Bell Labs. Bell idea even further. He defines the old methods of He further. idea even essary of support to build communities those around This insight is important and arises again in solutions. is only the first step in innovat- Inventing other works. many parties is to take root, must innovation ing. If must be willing to let People embrace it along the way. thinking and incorporate the new go of their current is critical effect changes, it To work. ideas into their own to build support necessary among those constituencies for the changes organizational skills and structure are key assets in inno- are organizational skills and structure vation. in which they the organizations and cultures affected by don you arise. If encourage risk taking result frequently — that — (Harvard The Slow Pace of Pace The Slow t enamored with t enamored ’ is that innovation available for others available to exploit. seemingly distant, discon- seemingly —

Henry Chesbrough recommends that Henry recommends Chesbrough (Harvard Business School Press, Business (Harvard a sees Hargadon 2003), Andrew ” Open Innovation: The New Imperative New The Innovation: Open (Harvard Business School Press, 2003), School Press, Business (Harvard businesses businesses make their internal innovations BOOKS Happen Breakthroughs How small worlds s most impressive product design firms, and product s most impressive ’ “

Each writer brings something unique to the dis- Each writer brings something unique

Business School Press, 2003), sees a diffusion of knowl- 2003), sees School Press, Business solutions, be knitted into innovative edge that needs to companies. In both inside and outside results from the hard work of talented synthesizers of talented synthesizers work the hard from results small worlds. unrelated people who bridge ideas from often the detached domains of These small worlds are and industries, like health care seemingly unrelated technology calls these synthesizers running shoes. He series of nected, and disparate populations or actions disparate populations nected, and need to be bridged by technology brokers. Henry technology brokers. be bridged by need to in Chesbrough, the notion of solitary, ingenious inventors. Instead, the Instead, inventors. ingenious the notion of solitary, of premise Talented Synthesizers Talented and Valley Silicon hails from Hargadon Andrew experience at IDEO, one of has relevant He Stanford. the world which is likewise its distinguished by Computer, Apple isn Hargadon But products. innovative crucial to creating value from innovation, and that they innovation, from value crucial to creating and develop- internal research can also help to organize that, with the help of game ment. Chakravorti believes of supportive, bene- a new environment market theory, fiting parties dis- around can be successfully negotiated the elephant Each book addresses ruptive innovations. but all perspective, a different from of innovation cogently describe the same beast. cussion. Hargadon emphasizes that the structure and that the structure emphasizes cussion. Hargadon of organizations determines their success with culture feels that business models are Chesbrough innovation. Bhaskar Chakravorti sees a network of constituencies Chakravorti sees a network Bhaskar status if they wish to abandon the that must coordinate a new support environ- and create quo they currently may flourish. innovation ment where Fast Change: Bringing Innovations to Market in a to Market Innovations Change: Bringing Fast Connected World

for Creating and Profiting from Technology from and Profiting for Creating BEST 03

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— BOOKS a near- “ BEST 03 Louis V. Gerstner Jr., an outsider, Jr., Gerstner V. Louis including would-be competitors. — s component customers pay for the From 1945 to 1980, IBM dominat- From ’ DEC. At the end of that year, IBM the end of that year, DEC. At the largest quarterlyand recorded annual loss in U.S. corporate history. had to change. Something in to lead the charge. His was brought products IBM shifted its focus from that its to customers and soon realized being squan- were dollars research tiers in the value on lower dered its chain. IBM needed to redirect the applications and efforts toward So solutions that its customers valued. managers to research hired Gerstner IBM between technology broker ” Chesbrough offers a framework for how businesses offers a framework for how Chesbrough What really caught my attention in Chesbrough What really are instead happier to pursue their university projects at projects university their to pursue happier instead are that the upstart become acutely aware you competitors, inside innovations to lock your built have you fortress the best ideas out. Sure, be keeping the actually may startups from but be momentarily abated, may threat business cycle of the current that is a consequence dynamics. the underlying market of the ultimate trend uses the example He open innovation. toward can move which of closed innovation, of IBM, once a pinnacle as he puts it, after, adopted an open approach In this way, IBM this way, In otherwise contestable right to use a particular technolo- on and IBM earns a return gy that IBM has developed, its intellectual property apart issuing naked licens- from es or selling finished goods. death experience. had the largest sales, largest It ed the computer business. of any company in budget, and most patents research 1992, its business was facing powerful In the industry. competition on every the likes of Microsoft, from front and Hewlett-Packard, Microsystems, Compaq, Sun emphasis on labs and its business units, with special influence sales. directly that could those innovations And IBM stopped using its intellectual property largely to itself the freedom to ensure measure as a defensive it litigation. Rather, safe from products innovate and com- attached its intellectual property to processes ponents that its fabrication and manufacturing supplied to other companies book, however, was his discussion of the role of business was his discussion of the role book, however, The value models in innovation. of technology is not inherent; ’ to the diffusion ” and asserts and the that ” open “ closed “ one where the boundaries one where — Chesbrough points out that this erosion calls into points out that this erosion Chesbrough Chesbrough offers a compelling set of reasons for set of reasons offers a compelling Chesbrough question the closed model of innovation. When the best question the closed model of innovation. to found a new company can easily leave minds in your that quickly discover capital, you business with venture company no longer has a monopoly on the best your When spend on R&D. much you ideas, no matter how relying were find that the newly you you minted Ph.D.s company with state-of-the-arton to inject your thinking Toward the Open Paradigm Toward something happened in the last But undermines the closed that 20 years of model for the majority innovation businesses, which no longer can rely on vertical integration and captive to harvestmarkets internal their innova- closed The conditions favoring breakthroughs. mobility of tal- the increasing by eroded been tion have capital, the abundance of ent, the influx of venture importance startups, and the increasing entrepreneurial of com- network The resulting research. of university strange bedfellows, munications and talent has created been which have like genetics and microelectronics, designed for use in the diagnosis melded in microchips of cancers. the necessity of the move to open innovation. The innovation. to open of the move the necessity a very reflected different of innovation closed paradigm business environment future of innovation lies in being of innovation future company. your that lie outside knowledge of ideas and research and innovation as innovation and research between industries seemed impermeable to outside ideas industries seemed impermeable between the between overlap apparent was little because there What could of each. competencies and core products in the pharmaceutical industry in com- research have industry? in the electronics Large, mon with research the able to reap vertically integrated companies were within their siloed busi- internal research of their value talent in their the best They could hire ness models. manage the speed and timing of their inven- industry, their customers toward those innovations tions, direct stated needs, and realize the full value stated needs, and realize aggres- through of those innovations property intellectual protection sive Labs is an Bell markets. and captive a closed example of just such excellent one that paradigm, innovation successfully for decades. worked

su 33 issue strategy+business s attempts to ’ t be able to convince ’ s success. This harks back to This harks s success. ’ Code Name Ginger: The Story Behind The Story Ginger: Code Name s book presents a cerebral approach to approach a cerebral s book presents ’ especially for startups. Finding points of especially for startups. Finding s lessons about collectives inventing and com- inventing s lessons about collectives ’ — Chakravorti Kemper follows the early days of the Segway, the early days of the Segway, the follows Kemper Chakravorti argues that by concentrating on those Chakravorti that by argues The networks of ideas, talent, businesses, and stake- The networks I started with Segway and Dean Kamen’s Quest to Invent a New World a New to Invent Quest Kamen’s and Dean Segway the challenges that arise after innovations go out the go out after innovations that arise the challenges inter- of Chakravorti network describes a complex door. for an partiesconnected be coordinated that need to in stakeholders These parties are to succeed. innovation by at their positions arrived They have quo. the status self-inter- their maximize intended to rational choices and partners,This ecosystem includes competitors ests. one an innovation, introduce To customers and vendors. market the current away from a move must coordinate in the the group and then recoordinate environment that rein- of a new relationships set of market creation the innovation force Hargadon munities embracing. munities embracing. (Harvard Business School Press, 2003), by Steve 2003), by School Press, Business (Harvard Kemper. Dean by self-balancing scooterlike device invented to the much of the hype related Kamen. Interestingly, started with a leak about Kemper Segway of full disclosure: the interests peddle this manuscript. (In includes me in a cameo appearance because even Kemper the topic. He employs game theory, explaining how game theory, employs the topic. He among a set of strategies companies can choose from game with due consideration the end toward that move others will make for the many independent choices that with is recursive, process This self-interest. in their own each choice dynamically affecting every other. end games that plausibly serve common self-interests the can negotiate a path to constituencies, you of the various ultimately are is critical, since resources success. Focus limited decision makers the various help move to leverage new alignment of businesses and cus- the desired toward won You tomers is also paramount. everyone. Who is necessary And why everyone. to the result? to go there? would it be in their interest these authors make up a whirl- holders envisioned by wind of opportunities and open for technology brokers Armed with these insights, among others, I innovators. cre- into two new to delve tales of remarkable was ready the theo- that happen to reinforce ativity and invention Chakravorti, and in the Chesbrough, ries presented books. Hargadon s ’ lay- “ focuses on t invent technology, but technology, t invent ’ t fit the dominant model. ’ s inventors, John Warnock John s inventors, ’ instead, it is derived from how from it is derived instead, is ultimately the technology s success. ’ The Slow Pace of Fast Change, of Fast Pace The Slow

BOOKS

s dominant, closed-technology business model s dominant, closed-technology business s business model sprang from its legacy copier from s business model sprang ’ ’ Take Xerox, for example. In the 1980s, the corpo- In for example. Xerox, Take This type of phenomenon leads Chesbrough to go This type of phenomenon leads Chesbrough software that enabled Xerox workstations to com- workstations that enabled Xerox software s potential, an innovator can still reap its value by its value can still reap s potential, an innovator ’

” municate with Xerox printers), there did not seem to be did printers), there municate with Xerox as a stand- a compelling business model for PostScript to Xerox captive Rather than remain alone product. out closed systems, PostScript business. The company made a modest profit on equip- made a modest profit The company business. The key heavily on the sale of supplies. ment and relied to customers required was that Xerox to capturing value and maintenance only toner, like paper, things purchase PARC at its famed Xerox When researchers Xerox. from (page PostScript developed Valley labs in Silicon ration rather that they are impaired in creating new business creating in impaired they are rather that nothing invested have best exploit it. Startups models to in their pur- agnostic they are in their business models; on an innova- in which to capitalize suit of the best way con- on the other hand, are tion. Large companies, that pervades the dominant logic strained by their of tal- is the exodus The result organization and culture. ent and ideas to startups. deployed. A major challenge for large companies that for large companies A major challenge deployed. they can is not that innovate Coordinating Stakeholders Coordinating those innovations from value what about realizing But Bhaskar that businesses choose to pursue themselves? Chakravorti, in could not accommodate the open-standard approach could not accommodate the open-standard that underlies Adobe beyond encouraging businesses to open up to outside encouraging beyond that they make their internal also recommends ideas: He struc- Where for others to exploit. available innovations of an inven- tural impediments hinder the realization tion not so impeded; startups, licensing it to others who are spin-offs, and existing companies with compatible busi- in the rewards can still share The innovator nesses. impor- More or royalties. equity investments through will be in research investment from tant, the returns simply from those that result over improved greatly that don shelving innovations and Chuck Geschke, spun off and began selling libraries and Chuck Geschke, The PostScript. of fonts for desktop publishing based on is history. and the rest company they formed was Adobe, Xerox BEST 03

content best business books 19 content best business books 20

Code BOOKS (Perseus s lineage, ’ traitorous “ s comments ’ s creation of s creation ’ s book. I thought I ’ Microchip: An Idea, An Microchip: BEST 03 are empowered, not empowered, are s most amazing feats ’ s seminal work at Bell s seminal work ’ we s greatest piece of bril- s greatest ’ I was more than pleasantly sur- I was more in revealing the lessons from the inno- the lessons from in revealing of the chip. vation Zygmont prised by knew most of the microchip set a fascinating weaves but Zygmont of stories together to illuminate one of the last century of innovation. Of course it discusses Of of innovation. Shockley Bill Labs coinventing the transistor in the Labs coinventing Kilby 1950s and Jack the integrated circuit at Texas Instru- Texas at the integrated circuit transistors with other ments, grouping smaller circuits. components to create very for a business reader insightful s move on to startups like Intel, Advanced Micro Advanced on to startups like Intel, s move t help but reflect on Chesbrough t help but reflect ’ é leave Shockley to form Fairchild Camera, and I to form Fairchild Shockley leave g ” Although it was a fun read, I did not find it was a fun read, Although In contrast, Jeffrey Zygmont, in Zygmont, Jeffrey contrast, In Zygmont sees the competitive market as the master market sees the competitive Zygmont é Its Genesis, and the Revolution It Created It and the Revolution Genesis, Its the innovators who slave endless- who slave the innovators ly to win our acceptance. In Name Ginger Name FIRST has been a tremendous success, attracting more attracting success, a tremendous has been FIRST champi- in 17 regional teams and 20,000 kids than 600 or otherwise, promoter, 2002. Genius, onships in to foster energies and vast using his celebrity Kamen is generations. among future and innovators visionaries because Kemper spills his first-hand observations spills his first-hand because Kemper onto attention to the nuances of the the page without much of his slant, we As a result partiesvarious and interests. characterizations of almost see only two-dimensional Kamen and key members of the devel- everyone except the business The businesspeople and opment team. short given shrift. issues are history 2003), calls upon a rich and textured Publishing, The pace of innovation quickens when Shockley packs when Shockley quickens The pace of innovation Semiconductor up for California to found Shockley is Shockley Here Laboratory. liance: He hires Gordon Moore, Robert Noyce, and a Noyce, Robert Moore, Gordon hires liance: He There of other ingenious engineers and scientists. group when the is a mass diffusion of knowledge eight couldn about the mobility of talent eroding the conditions that about the mobility of talent eroding These stars and their once supported closed innovation. prot and and Mostek, Semiconductor, National Devices, Valley. rise to a new give capital, Silicon eventually his model, In of innovation. s theses, the cre- ’ ” s paradise of innovation prior to the s paradise of innovation ’ s and Chesbrough ’ s achievements. In addition to his many In s achievements. ’ t have to invent any- to invent t have ’ s tireless creativity. As if creativity. s tireless ’ s out there somewhere if I can somewhere s out there I don ’ truth. Kemper favors the perspective of the the perspective truth. favors Kemper s launch. But before he is expelled, we are treat- are we he is expelled, before s launch. But s lone genius and the well-led, s struggle speaks to the passion that fuels creativ- s searing vision and the devel- “ ’ ’ ’ ’ ” Kemper spends a good deal of time whittling spends Kemper There is a tug in the book There To tell a good story, an author has to settle on a has to settle an author tell a good story, To Kamen is revered in the press as a modern-day in the press Kamen is revered whole Kamen down to size, but he nevertheless shows appreci- but he nevertheless shows to size, Kamen down ation for Kamen hardworking team of developers. hardworking visionaries, seeks to maintain Kamen, like many great even and its commercialization Segway of the control the limits of his experience. He when the task exceeds and the leg- Jobs battles wills with the likes of Steve and wins Pyrrhic Doerr, endary capitalist John venture victories that ultimately seem to handicap his success. Kamen to challenge the sta- ity and the tenacity that is required and it is not for does not come easy, Greatness tus quo. the meek. mis- a philanthropic FIRST, Kamen created inventions, models for scientists and engineers as role sion to elevate competitions staged robotic people through young teams of students and their corporate sponsors. between between the mythical image of between Kamen just find it and integrate it. thing. It ation of the Segway borrows from borrows ation of the Segway and feeds off the what has come before birthed already small worlds that have and batter- efficient motors and gyros is in The brilliance of the Segway ies. Kamen opment team concurring, Kamen admits at one point, True to Hargadon True The Scooter as Metaphor point of view. The reader should never expect the should never The reader view. point of “ I informally advised on this project. Caveat emptor.) Caveat project. on this advised I informally ed to a page-turner. of a was more points out that Edison Hargadon Edison. paints Kemper inventor. than a free-form synthesizer same way. Kamen in much the inventor and his team. That is not to say that Kemper That is not to say and his team. inventor to time from on Kamen train his critical eye does not is eventually Kemper for his indiscretions time. Indeed, tossed out of Kamen Segway

su 33 issue strategy+business COR (Harvard (Harvard The Monk and the + Chakravorti’s terms, we are key are terms, we Chakravorti’s in the newstakeholders market ([email protected]) has been a ([email protected]) BOOKS

The microchip saga is an embarrassment of riches an embarrassment saga is The microchip and Chesbrough, The key insights of Hargadon, early 2003, Larry pronounced of Oracle In Ellison

for its wealth of material: There are geniuses like James geniuses are There of material: for its wealth fights off depres- physician who a tenacious Siepmann, Hoerni, the Light Clock, and Jean developing sion by transis- layered the “vertically” from through who broke connected wafers that pre- tors to the “horizontally” Ted formidable engineers like are There dominate today. because who designed the microprocessor the man Hoff, one of his of layouts the convoluted he was appalled at Wang, of Koplow like Harold clients, and misanthropes as processing model for word who formulated the never One waiting to be fired. he was biding his time judging, but rather illuminating the senses Zygmont and garrulous talent Itinerant soup. whole primordial the technologies that customers and suppliers broker clock of Moore’s to the relentless development drive the capacity of chips doubles 18 months Law: Every half. by while their prices drop this engaging story substantiated by Chakravorti are that was unleashed by about the big bang of innovation — cell phones, personal computers, the microchip antilock brakes, etc., etc. I could not ovens, microwave for what the without a sense of awe put this book down wrought. and Kilby likes of Shockley is the Where the decline of technology innovation. the can spawn a bounty of innovations that invention these books. should read did? Ellison way the microchip to the wealth research the walls of captive up Opening offers the opportunity for acceler- of outside knowledge access to an have brokers Technology ating innovation. of inno- abundance of ideas generated in these networks into bril- which they in turn can cross-pollinate vation, The methods may be liant new and services. products and changing, but unchanging is the fact that invention inextricable parts of being are change themselves it is an dead; in fact, is far from human. Innovation of nature. unstoppable force equilibrium that spells success for any innovation. that spells success equilibrium Business School Press, Business 2000). School Press, Randy Komisar Riddle: Riddle: The Education of a Silicon Entrepreneur Valley

founder, executive, or of founder, than executive, director more a dozen companies, including Claris, LucasArts, and He TiVo. teaches entrepreneurship University, and at he Stanford is the author of BEST 03

content best business books 21 content best business books 22 and in the

a sup- BOOKS “ — points to —

partner in ” SCANDALS “ and ” the biggest Broadbandits: Inside Broadbandits: BEST 03 s — Business 2.0, Business ’ (John Wiley & Sons, Wiley (John In truth, the two were In ” but instead ended in radical fail- — doubling every 100 days by logic or by rationale, would lead logic or by by “ snake oil salesman, “

” and now a writer for and now widely circulated in the late 1990s, that widely circulated ” believed, The organizing device is the rogues gallery, one gallery, is the rogues The organizing device ” myth, To distinguish his story distinguish an earlier clutch of from To “ Ponzi scheme, Ponzi 2003), a spunky, noisy, and self-righteous book about noisy, 2003), a spunky, like filled with phrases the collapse of the telecom sector, “ Red Herring Red Snake Snake Oil Theory Malik Om drives Villain the traffic was Internet the $750 Billion Telecom Heist Telecom the $750 Billion to legitimate success most useful, This is the most subtle, but also the ure. central lesson is, in a sense, a warning. Its theory. referred to as Villain Theory: of very A handful bad peo- Villain to as referred ple willfully perverted Another could be the system. compa- diverse Larger and more Synergy: Wicked called and the failures sucked into, and corrupted by, nies were unsound upstarts of problems the wider business in is a theory there that could be summarized world. Finally, This suggests that certain individ- Rationality. as Deadly in came to behave company cultures, entire uals, or even ways they posed trend that sparked the cre- that sparked posed trend ation of what is today a massive slime. chapter per disgraced company or fallen guru, which, if nothing else, makes the book a handy overview a test case for the utility of chalking up the scandal era to a handful of consistently bad actors. tells us that the books about the dot-com bubble, Malik telecom bubble was much bigger history of the modern world. a former writer for fundamentally intertwined. Malik, the why one for — s offerings do have real s offerings do have ’ of s been the most widely embraced) might be any executives at Enron and other compa- at Enron any executives of wave in the recent nies that ran aground fervent evangelists corporate scandals were turns out that It of markets. for the power ’

Speaking broadly, the recent scandal books offer the recent broadly, Speaking Happily, a couple of this year a couple of this Happily, But a more interesting question should be asked in interesting a more But three theories for what went wrong. The simplest (and wrong. theories for what went three the one that value, drawing memorable insights from a period in drawing memorable insights from value, business history to forget. that many would prefer scandal happened. Even now, this is not so easy to do. is not so easy to do. this now, scandal happened. Even by Rob Walker Thievery Tales Tales No Simple the context of the marketplace of ideas: Do these books of ideas: Do the context of the marketplace the past to teach lessons that simply rehashing go beyond scandal A valuable can put to use in the future? readers book would offer a plausible explanation of even their failure has created a market a market has created their failure even begun arriving in These have business-scandal books. Whether the a lot of them. are and there bookstores, embraces these books, and whether it justi- marketplace to be seen. remains fies the publication of so many,

M PORATE

su 33 issue strategy+business t s ” ” ’ ’ — The “ synergy, “ s most com- ’ t let the executive ’ (Simon & Schuster, (Simon Many would soon die. Many “ reporter Alec Klein, tells of reporter touching both the most-discussed touching both the — writes Klein. ” s accounting, which is his book ’ Washington Post Washington s focus is tight, making his book mostly of s focus is tight, making his book mostly ’ which Klein says were weakening even before even weakening which Klein says were s now-infamous purchase of Time Warner and the Warner Time of purchase s now-infamous — ’ Tearing Down the Walls: How Sandy Weill Fought His Fought Weill Sandy How Walls: the Down Tearing Stealing Time: Steve Case, Jerry Levin, and the Jerry Case, Steve Time: Stealing Klein Malik seems to have more of a handle on the ma- on the of a handle more to have seems Malik on AOL 2003), by 2003), by Collapse of AOL Time Warner Time Collapse of AOL merger of the 21st century financial insti- and the largest tution in the world. Post Merger Fallout Merger in the age of these scandals unfolded Because in unex- the fallout would spread it was inevitable that pected directions AOL messy aftermath. Klein wrote a series of stories in the messy aftermath. Klein wrote the company began its courtship of Time Warner Warner Time the company began its courtship of as converting the win- to such measures resorted AOL and book- lawsuit into advertising a revenue nings from cash. ing esoteric barter deals as though they involved in particular in AOL interested to those who are interest in general, but a couple of rather than business culture is that a lot of the points emerge. One applicable broadly deep- be rooted questionable decision making seemed to although this doesn er in the company, pelling material. Again, quarterly turned out projections questionable steps were optimistic, and to be overly make its num- To go away. taken to make the problem bers to make the top from was pressure suite off the hook. It goals that led stretch optimistic (and finally unrealistic) the 800-pound AOL, Also, to desperate tactics below. boom, extracted enormous sums gorilla of the Internet dot-coms desperate for advertising deals. from bruising techniques and negotiations left a string of couldn financially hobbled dot-coms that eventually pay their bills, terial, despite his repetitiveness and a weakness for inex- and a weakness his repetitiveness terial, despite distracting! But are points, which plicable exclamation the teach us little beyond both of the books ultimately Theory is too one-dimensional Villain facts. most basic to satisfy. This points to two more valuable lessons in an endlessly valuable This points to two more is that negotiating one interlinked business world. One revenue sources out of existence is, in the long term, an sources revenue The second is that it is not enough bad idea. extremely the modern economy, synergies: In to look for positive quickly a bubble conta- it is crucial to understand how gion can spread. ” ” ban- “ ). broad- which ” “ ” and then ” Broadbandits, Which is it? ” s chief financial ’ clueless “ boost profits and filed for bank- scam. “ ” “ Disconnected: Deceit and Disconnected: Deceit Of the 105 million Of ” s book, it is mostly based on ’ knew it was time to get out, “ pipes. oversupply of data-transporting of oversupply “ (John Wiley & Sons, 2003), by & Sons, Wiley (John largely unused, “ s villains. The seller claims that he knew the s villains. ’

BOOKS the bad guys often leads for slamming s zeal ’ knew was false but hyped their their promise

” s collapse is the subject of s book seems to have been written in a great hurry. been written in a great s book seems to have ’ ’ Time and again, the moment of reckoning comes moment of reckoning and again, the Time Malik The biggest of the telecom disasters was The biggest of the telecom disasters

in this scenario, and who is the rube? ” demand for bandwidth had grown at breakneck speed, at breakneck had grown demand for bandwidth artificially boost revenues by reducing expenses, reducing by artificially boost revenues Betrayal at WorldCom at Betrayal when a firm realizes that demand is slowing and quar- is slowing that demand when a firm realizes and again, the Time will not be met. terly projections in the accounting department. is solved Most problem that the to believe seems of the time, Malik for Winnick, Gary prices. up share firms to drive not Crossing as the CEO of Global instance, signed on the time, At public in mid-1998. it went long before “ miles of optical fiber in the United States installed from States fiber in the United miles of optical miles were than 80 million 2001, more 1980 through 1995. built after bandits signs of a glut; concedes, but would soon show Malik fiber net- the firm forged ahead with an 85,000-mile today that is work ruptcy protection in early 2002. Winnick had by then had by Winnick ruptcy in early 2002. protection of this tale Variations sold $735 million worth of stock. and so on. WorldCom, play out in chapters on Qwest, It often feels padded, and occasionally confused. At one often feels padded, and occasionally confused. At It is accused of trying to point she tells us that Sullivan “ Jeter officer, Scott Sullivan, and how much CEO Bernie and how Scott Sullivan, officer, knewabout the situation. Also like Ebbers previously published information. Jeter makes more of makes more published information. Jeter previously an effort ultimately shrugging to be evenhanded, at the WorldCom question of what motivated Lynne W. Jeter, a business journalist and native Jeter, W. Lynne Like Malik Mississippian. to contradictions that are never resolved. In his section In resolved. never to contradictions that are company he first calls the on Enron, asserts that it was perpetrating a is obviously impossible (she means is obviously Elsewhere, he quotes the former head of a company that Elsewhere, is one Nacchio, CEO, Joe whose own sold out to Qwest, of the book bandwidth market would crumble, was bandwidth market and that Qwest on a losing path, so he Malik says with apparent approval. But who is the But approval. says with apparent Malik

dit by estimate for the amount most recent the WorldCom; That com- its earnings is $9 billion. which it overstated pany BEST 03

content best business books 23 content best business books 24 t ” ’ —

has a BOOKS (SPEs) ” special pur- “ mark to market mark BEST 03 Texas Monthly, Texas “ she writes. The com- she writes. ” If the regulators didn the regulators If That billing suggests “ ” s SPEs, her first thought s SPEs, ’ and since they worked out, and since they worked but they also were gradually but they also were — — special purpose entities “ s use of ’ What Swartz shows is that many shows What Swartz ve got to get ve ’ I occasion. (Which is just as well, because the sections about her tend to be dull.) of the characteristics that eventually the same were in trouble got Enron ones that led to its early success namely a penchant for daringly bend- ing the rules. accounting, which allowed it to accounting, which allowed the profits immediately recognize energy contracts at long-term from expressly prohibit a transaction, Lay prohibit expressly saw it through, pany “ grew increasingly exotic and opaque, they exotic increasingly grew s share price s share ” ’ ” s office culture is described as cutthroat, s office culture ’ with Sherron Watkins. with Sherron “ (Doubleday, 2003), one of the two truly 2003), one of the two worth- (Doubleday, Power Failure: The Inside Story of the Collapse of Story Inside The Failure: Power Enron was a transporterwas to take that aimed gas of natural trad- itself as a reinventing by of deregulation advantage itself again to reinvent Then it sought gas. er of natural in the long run, and, of other kinds of energy, as a trader a reputa- But could think of. anything you of practically and fundamental masked deep innovation tion for problems. while books on the scandal period, is written by Mimi scandal period, is written by while books on the Swartz that the story of the eyes will largely be told through who became famous for her auditor the Enron Watkins, that the company Lay warning memo to CEO Kenneth in an accounting scandal. In could be dragged down at editor an executive fact, Swartz, wider narrative to offer, and Watkins pops up only on Watkins and to offer, wider narrative Enron current-market prices, dated back to the early 1990s. Its prices, dated back to the early 1990s. current-market use of off-balance-sheet These tactics were too. back just about that far, went not illegal but aggressive, and bold. seemed clever they also probably pose entities saved Enron saved Fastow CFO Andrew in ways that rewarded structured for conjuring the with fantastic payouts and his cronies on the bottom line. Even magic they seemed to work had her epiphany about the Watkins when Sherron in Enron accounting problems was neither to alert the the authorities nor to save firm, but rather: out of here. smug, and ultimately mercenary. As those smug, and ultimately mercenary. s ’ — —

” writer within the ” s were widespread? were ” ’ ” Enron: The Rise and Enron: CEO of the year closed shop There “ “ Wall Street Journal Street Wall “ to the top of Citigroup. to the top Lipton s deal-by-deal ascension), s deal-by-deal ” ’ ” has value as a record of one as a record has value re saying re ’ bad: only a week find out how “ “ You “ Another execu- that ” industry excesses “ ) to a global settle- ” s not ’ pudgy deal maker pudgy deal “ (Simon & Schuster, 2003), a lengthy account 2003), a & Schuster, (Simon that the problems are the are that the problems — (John Wiley & Sons, 2003), by journalist Loren 2003), by & Sons, Wiley (John Tearing Down the Walls the Down Tearing Nearly 400 pages later (filled with all the details you 400 pages later (filled Nearly s office, which soon announces there will be no s office, which soon announces there ’ Fox, covers the basics in workmanlike fashion: Enron the basics in workmanlike covers Fox, remarkable business figure, but its message about the business figure, remarkable into its wake is Weill scandal era that nearly pulled Salomon it make sense to excuse Does ambivalent. Deadly Rationality Deadly in the scan- advantage had a kind of first-mover Enron books than any it the subject of more making dal frenzy, of the earliest, One other company. have been industryhave in which excesses the firm participated. tive questions him: questions tive Way to the Top of the Financial World … and Then Nearly … and World of the Financial Top to the Way All Lost It we come back around to the Grubman disaster. to the Grubman around come back we Langley writes, was a Salomon, running our business. are we could ever want about Weill want about could ever Monica Langley, is largely a tale of the by-the-bootstraps is largely a tale Langley, Monica rise of the Weill someone was anointing star telecom Grubman, scandal. Jack by besmirched has Barney, Smith unit Salomon analyst for Citigroup Congressional a testifying before just spent the day WorldCom, raising a ruckuscommittee that was about is dominating the financial news. and the highlight reel called in powerhouse Weill and empire, Citigroup Lipton to Marty lawyer in a scene Langley later reports, that it recounts, But the book opens with an evening of triumph of triumph with an evening the book opens But Fall of the career of Sandy Weill by by Weill of Sandy of the career behavior because Salomon Smith Barney did what the did Barney Smith Salomon securities industry been doing for had years industrywide of an product disease? Lipton nods. Citigroup eventually Lipton nods. Citigroup pitches in $300 million ( worth of profits attorney gen- York ment with the New eral gets back to work. who promptly Weill, charges against Langley never quite says, and the reader is left feeling quite says, and the reader Langley never Which is pre- just dodged a bullet. Weill that perhaps of us want to pursue. sumably not a strategy that the rest

su 33 issue strategy+business ” , and

” There Once in Once ’” t much of ’ Rather, he Rather, Money “ , . He has Inc (John Wiley (John Wiley & is in some ways Cruver is definite- Cruver ” and it might have — Once in Golconda: A in Golconda: Once — Justification for accept- Justification This place is badass! place is This “ Enron owes me! owes Enron and this is a strength. “ ‘

Whitney did not think of — “ feel sick. — “ The Smartest Guys in the Room, Guys The Smartest New York Times New Magazine York s hard to believe that any of these to believe s hard ’ and + ve done wrong done wrong ve ’ Brooks wrote in wrote Brooks that seemingly right-thinking citizens ” , and a contributing writer for — . Slate valuable to have read it five years ago before years it five read to have valuable (www.robwalker.com) is a journalist, a freelance (www.robwalker.com) is still worth reading is still worth reading that they Power Failure Power s both amusing and somewhat sad that an insight ’ truly It In True Drama of Wall Street 1920-1938 Street Wall of Drama True more troubling. It calls to mind something that the It troubling. more Whitney, Richard about once wrote Brooks author John in the Exchange Stock York of the New the president until reputation 1930s, who had an impeccable public he was caught embezzling. himself as a thief, been Sons, 1999, originally published in 1969). 1999, Sons, not be a thief no thought of himself as one who would superman. matter what he did; that is, as a moral Because in the end it in the Because a erecting of knowingly to the trouble went executives And scheme in the form of a gigantic company. Ponzi the alternative actually without ever havoc great can end up wreaking believing Skilling, Lay, and Fastow emerge as human beings rather emerge as human beings and Fastow Lay, Skilling, than as cartoon characters March 2001, and thinking, and thinking, 2001, March Golconda the recent bubble burst. But nobody was pushing books bubble burst. But the recent wasn about scandals back then. After all, there so useful to understanding the recent past should appear so useful to understanding the recent ago about events in a book published nearly 35 years But earlier. that had taken place 30 to 50 years Within months, he writes, he had learned enough about learned enough he writes, he had months, Within to practices certain Enron at the top. blame squarely Theorist, placing Villain ly a bankruptcy, spiraled into as Enron he tells how, And yet off with proprietary tried to make one group trading racked up laptop, free a he procured data, and adds that and kept quiet cell phone, calls on his Enron overseas coming for sev- kept his paychecks when a clerical error after he was laid off. eral weeks a market for them. a market ing the payments was easy ing the payments was is an irony here that Cruver seems unaware of: Precisely seems unaware that Cruver here is an irony bottom, and top to this attitude pervaded the company, did a lot to bring it down. probably worked worked as an editor for the Rob Walker American Lawyer columnist columnist for the com- s bets were starting s bets were ’ more than more The Smartest Guys in the Guys The Smartest (Carroll & Graf, 2002), & Graf, (Carroll He had no interaction with He The other valuable scandal other valuable The ” book is Anatomy of Greed: The Unshredded of Greed: Anatomy which is both true and misleading ” s meltdown from the point of view from of a s meltdown ’

BOOKS bias, which should disclose my I (And here re in trouble. re ’

s key players and knows no more about their no more and knows s key players ’ Still, his perspective holds some interest because holds some interest his perspective Still, Their account is extremely detailed and offers a bar- Their account is extremely has noth- point most compelling broader The book’s One other book, One

Fortune. credit risk as a commodity. credit an Enron insider, an Enron rank-and-file employee, Brian Cruver. Cruver is billed as Cruver Cruver. Brian rank-and-file employee, “ describes Enron was a The 29-year-old (sort of like some balance sheets). designed to buy and sell in a fledgling division new hire “ from the moment he arrived, Enron the moment he arrived, from Enron the newspaper might. reading than anyone motivations Room: The Amazing Rise and Scandalous Fall of Enron of Scandalous Fall Rise and Amazing The Room: is that both are former colleagues of mine.) They are They of mine.) former colleagues are is that both storyforthrightthat the Enron in arguing is no simple company They even concede that the tale of thievery. was smart ways, too smart, — “in many turned out” as it people who — and that its story is partly one of “smart last disaster their cover their next gamble would believed wrong.” admit they were — and who couldn’t that acrobatics accounting Enron’s rage of specifics on les- of course the real But at times. can be overwhelming — not in the mechanics of the SPEs are sons of Enron that much about them to know to know have don’t you them was concerned with some- concocted whoever of the picture thing other than giving outsiders a clear numbers. company’s ing to do with numbers, but rather with bad manage- Lay as a man who simply The authors paint Ken ment. This is a terrible situations. negative to confront refused the manage- but it was exacerbated by trait in a leader, Jeffrey and successor, protégé ment style of Lay’s smart in hiring was a believer people and He Skilling: This method of giving them a huge amount of latitude. praised for the managing — or no-managing — is often in this case, running it unlocks. But creativity unchecked, it unlocked those mercenary tendencies and company is made up of fero- let them run your amok. If ciously smart people, that may be good; and competitive about themselves but if they care Truth from an Enron Insider an Enron from Truth pany, you pany, (Portfolio, 2003), by Bethany McLean and Peter Elkind and Peter McLean Bethany by 2003), (Portfolio, of

to go bad. He describes walking into the company to go bad. He in on his first day, Houston headquarters in downtown BEST 03

content best business books 25 content best business books 26

BOOKS s poor and IZATION ’ Rich BEST 03 Poor s knights in shining armor. ’ m referring to Peter Singer, to Peter m referring ’

THE THE m not talking about George Bush and Bush m not talking about George ’ Oppressed Free Free Tony Blair. I Blair. Tony he shock of September 11, 2001, pro- he shock of September No, strange bedfellows. duced some pretty I At a time when terrorism and the mounting toll of and the mounting a time when terrorism At T the influential left-wing philosopher who regularly the influential left-wing philosopher chides Americans for being self-absorbed and selfish, historian who the brilliant Oxford Ferguson, and Niall sees Americans as the world One quotes Marx and (John) Lennon, the other quotes Marx One a leather to wear refuses and Kipling. One Churchill belt, the other looks like he stepped out of an Armani other calls on the wants a world government, ad. One these intellec- Yet boldly. more America to wield power a surprisingly similar perspective have tual oddfellows the world owe on what the rich and free oppressed. to retreat yearning many Americans war have the Iraq America, Singer inside a Fortress among the are and Ferguson and by Nasar Sylvia What and Owe GLOBAL

su 33 issue strategy+business s s ” ” ’ ’ the “ makes no almost certainlyalmost

“ ” the injustice of the “ The point is not to punish ” “ A Theory of Justice, A s ’ All this may sound like Singer a sense that we really are one are really a sense that we “ than Islamic terrorists, by depleting by terrorists, than Islamic community, that we are people who are that we community, of pro- the force not only recognize hibitions against killing each other but also the pull of obligations to assist one another. extremes of wealth and poverty that and poverty of wealth extremes societies. different exist between What the world needs, says Singer, is warm-up for an antiglobalization mention of influential work on justice written influential work in 20th-century America, John Rawls ” t. Instead, readers are treated to a short treated are readers t. Instead, ’ absolute priority to the interests of their the interests absolute priority to What he really wants is for Americans, What he really “ ” s wealthiest citizens, to care more about the more to care citizens, s wealthiest ’ s poor. And that, of course, applies to America And s poor. ’ More surprisingly, Singer hints that globalization Singer surprisingly, More Our intuitive sense of right and wrong, he says, has sense of right and wrong, intuitive Our kill far more people kill far more who of the 1950s Like the one-worlders layer. the ozone way to prevent as the only government saw global itself with newly incinerating from humanity invented argues for of mass destruction,weapons Singer abandonment of the absolute idea of state sovereignty abandonment of the notion that national leaders and the closely related ought to give citizens. own sermon, but it isn target for moral out- per se may not be an appropriate Trade American Free hoists critics of the North rage. He pointing out by logical petard on their own Agreement list of plausible proposals for altering the ruleslist of plausible proposals of the his Despite of the benefits around. more game to spread Trade World the star status among those who excoriate and Fund, Monetary the International Organization, a pro- For Chomsky. is no Noam multinationals, Singer unmoralistic fessional ethicist, he adopts a refreshingly genocide and global warm- like to problems approach economists in he joins mainstream the latter, ing. On he admon- trade in pollution rights. Indeed, advocating ishes leftists who find it distasteful to let rich polluters buy their way off the hook: the best nations with high emissions, but to produce outcome for the atmosphere. adding gloomily that SUV owners will owners that SUV gloomily adding the world world corporate citizens as well as its individual ones. as well corporate citizens and technological fact of growing not adapted to the most example, the For economic interdependence. the “ Empire: such as — says Singer, ” One World: The World: One s grappling with the ’ One s high-profile internation- s high-profile s sole superpower. In In s sole superpower. ’ (Basic Books, 2003), Ferguson (Basic (Yale University Press, 2002), Press, University (Yale s borders. Though miles apartThough s borders. ’ most authoritative voices voices authoritative most not less, engage- urging more, Newsweek’ that enable it to work so well at home. so well that enable it to work Singer, best known for his controversial best known Singer, — BOOKS

in particular, seems destined in particular, Business readers will also want readers Business

One World, One Ethics of Globalization Ethics ment beyond America ment beyond World, The Case for Global Sharing In (W.W. Norton & Company, 2003), & Company, Norton (W.W. Zakaria, Fareed by The Future of Freedom: Illiberal of Freedom: The Future and Abroad at Home Democracy (Doubleday, 2002), by Yale Law Yale by 2002), (Doubleday, Amy Chua, and School professor World on Fire: How Exporting Free How on Fire: World Ethnic Breeds Democracy Market Instability and Global Hatred constructs a compelling case for nation building. Their constructs case for nation building. a compelling quite possibly at odds though cosmopolitan perspective, is sufficiently pragmatic and mood, with the current who practical to be useful to anyone Singer shows why preventing genocide and famine, and genocide and famine, why preventing shows Singer moral are home, from far cleaning up the environment for the world imperatives views on animal rights and euthanasia, returns to the views on animal rights and euthanasia, returns in philosophy in the first topic that got him interested that concise prose The book, written in the crisp, place. a worldwide audience, begins with a has won Singer Twin the that reduced What do the planes question: to rubble and sport that emit utility vehicles Towers in common? Both reflect gases have greenhouse way in which we are now one world, now are way in which we The Rise and Demise of the British World Order and the Order World of the British The Rise and Demise Power Lessons for Global al editor. Despite their ominous titles, both volumes are their ominous titles, both volumes Despite al editor. point is to expose some Their internationalist in flavor. model Western of the potential pitfalls of applying the without sufficient attention to institutions of civil liberties, taxation, protection and progressive philanthropy to pick up two other recent books, to pick up two other recent to become a staple of b-school reading lists. politically, both embrace globalization and both want globalization both embrace politically, its for spreading responsibility take more America to effects. In mitigating its ill benefits and

big ethical and political dilemmas facing global business today. BEST 03

content best business books 27 content best business books 28 s s ” ” ’ ’ …

made BOOKS need. ’ — Ferguson can do a — produced an produced Take up the Take “ as the most suc- Empire, “ actively starvingactively preferred values, preferred “ BEST 03 “ as Britain was for most as Britain One World One than any other. But his But than any other. — ” By ” the way Mao did. did. the way Mao ” unbeknownst to each other to each other unbeknownst d like them to be less inhibited about ’ — more to promote the free movement movement the free to promote more “ Reasonable appeals have a way of motivat- appeals have Reasonable s burden/Send forth breed/Go, the best ye s burden/Send ’ ” This, of course, is advice that the Bush administra- This, of course, is advice that the Bush Instead, Singer proposes that affluent Americans that affluent proposes Singer Instead, give at least 1 cent in everygive dollar of their income to O. Henry moment in my own household, when my O. Henry in my own moment husband and I infamous 1899 appeal to America to White Man serve captives your sons to exile/To bind your of appalling ignorance of democratic tradi- This reeks societies tions in non-Western about this later). But (more sets out to radically revise the conventional view the conventional of sets out to radically revise Victoria arguing that Queen imperialism by British spreading markets and democracy. In In and democracy. markets spreading Niall Ferguson wants Americans to do more than open to do more wants Americans Ferguson Niall their wallets; he Imposing Preferred Values Imposing Preferred identical contributions to the International Red Cross Red to the International identical contributions I suppose this year, 2 percent given and Oxfam. Having of. taken care is already next year of the eighteenth and nineteenth centuries on less technologi- values deal to impose preferred great societies. cally advanced order, norms of law, Western chiefly means Ferguson and governance. is sufficient- Ferguson tion is putting to the test in Iraq. quote Kipling to approvingly ly politically incorrect of goods, capital, and labor cessful economy in the world empire did empire punch line is that the United States, States, punch line is that the United when private charity is counted. But the author wisely the author But is counted. charity private when ethicist eschews fellow those of one prominent rants like Tung Tse Mao with Bush George equates who absurdly with lack of generosity and the U.S. people millions of “ eat, clean getting enough to trouble those who have elements, and basic the from water to drink, shelter health care. ing people. Indeed, reading reading ing people. Indeed, s ’ any “ There are There he reports “ He argues He ” ” suggesting that the “ preferred values on less preferred what matters is not inequality “

” The U.S., Niall Ferguson argues, The U.S., argues, Niall Ferguson Such consistency is refreshing, if is refreshing, consistency Such technologically advanced societies.” advanced technologically ” s willingness to take facts on board that facts on board s willingness to take ’ s more, he correctly emphasizes that emphasizes he correctly s more, ’ “can do a deal great to impose s fellow citizens, and none that can override the and none that can override citizens, s fellow ’ s poorest people have become better off overall in become better off overall people have s poorest s population still subsists on little more than the s population still subsists on little more ’ ’ Is it really true that freer trade has made the poor true that freer it really Is Yet an appalling, if diminishing, fraction of the Yet t necessarily square with his ideological convictions. with t necessarily square ’ that it is hypocritical to condemn the treaty for (sup- the treaty condemn to it is hypocritical that of jobs when Americans millions posedly) costing transfer of work from the United States to Mexico can to Mexico States the United from work transfer of on are, of people who to raise the income be expected who U.S. workers off than those much less well average, glob- poverty reducing Those who favor jobs. lose their should see country, own rather than only in their ally, this as a good thing. is Singer So rare. poorer while enriching the rich? Singer skewers com- the rich? Singer while enriching poorer purportedly U.N. statistics monly cited but flawed prov- data show- reliable cites more He ing this to be the case. of the rich and the incomes ing that the gap between the or less continually since more poor has narrowed 1960s. Contending that don but the absolute living standards of the poor, but the absolute living standards China. What The U.N. income is only one indicator of well-being. that real incomes of the poor have doubled in the past incomes of the poor have that real in growth four decades, largely because of spectacular he says, has risen consis- Index, Development Human tently during the last four decades, world terms of income, life expectancy, and the amount of terms of income, life expectancy, education they receive. world that the U.S. should be less stingy when it comes to for- that the point given eign aid, a fairly uncontroversial is virtually last among all rich nations even States United obligation that arises whenever we can, at little cost to we obligation that arises whenever to the make an absolutely crucialourselves, difference need. of another person in real well-being amount an average American spends on the family pet. amount an average in Africa live poverty in extreme of those mired Most and south Asia, but their claim on Americans is nearly says Singer. next door, as if they lived as great to the interest for giving preference few grounds strong of one

su 33 issue strategy+business ’ s ’ will Chua ” and its — — My family My the Achilles “ “ were sleeping were … . When foreign When she was 8 When she … ” s villa: ’ general theory, “ t attacking free markets t attacking free ’ in many countries with in many countries ” that attention must be paid that attention Markets concentrate wealth, Markets “ In the Philippines, millions of the Philippines, In — “

” Chua compares the wealthy Chua compares s interested in figuring out ways to s interested ’ but the analogy feels right. from Serbia and Rwanda to Indonesia Serbia from and Israel. Chinese, like her aunt, who dominate of many Asian countries the markets in the of Europe to the successful Jews 1920s. for Chinese; almost no work Filipinos The for Filipinos. Chinese work Chinese dominate industry and society at every level do business in the investors they deal almost exclusive- Philippines ly with Chinese. she stumbled into recalls, old, she years — To support her case, Chua cites a litany To …” She may be overstating the animus may be overstating She ” . s market-dominant minority, wielding outra- minority, s market-dominant ’ … On close reading, Chua isn close reading, On Without claiming to offer a claiming to Without Americans today are everywhere perceived as the everywhere perceived Americans today are or democracy. She or democracy. economic roots economic roots undoubtedly strike a chord with executives who live in, who live with executives strike a chord undoubtedly in rapidly for operations responsibility in, or have work traditional societies. changing lar franchise can be an unexpectedly combustible mix- combustible unexpectedly be an can lar franchise cautionary Her note ture. globalization fallout from to the emotional elites aimed at ethnic of genocide and racial murder the servantquarters in her aunt houseboys, gardeners, and chauffeurs and chauffeurs gardeners, houseboys, and The place smelled of sweat on mats on a dirt floor. urine. I was horrified. geously disproportionate economic power relative to our relative geously disproportionate economic power become the object have we and numbers. As a result, size of the same and hatred of mass, popular resentment kind Mass Mass Resentment 11 was a sign that Americans are Chua, September For a lot like the Chinese elite in the Philippines. regarded “ world calls economically successful minorities calls economically democracy market heel of free majorities. impoverished often spectacular wealth, in the hands of the market- in the often spectacular wealth, the polit- increases while democracy dominant minority, these In majority. impoverished of the ical power democracy market free the pursuit of circumstances ethno- of potentially catastrophic becomes an engine nationalism s

’ ” Much ” s allies in ’ at least openly: s — ’ With some justifi- With — ” Without the influence of the influence Without “ Her doubts about the kind of Her the notion that British imperial- the notion that British a form of inter- Ferguson is making a serious a is making Ferguson that when he claims argument “ “ World on Fire. World Unlike Singer, who sees a Singer, Unlike he writes. The French, America The French, he writes.

BOOKS ” ” s sophisticated grasp of the ’ s security form the theme of Amy Chua s model and the possible repercussions for s model and the possible repercussions ’ ’

Like Singer, Ferguson believes that believes Ferguson Like Singer, The unintended consequences of exporting

the empire that rules the world today is both more the empire without the spread of British rule it the world, around of British spread without the national government that can work work that can national government and not just for the benefit of the rul- ing power. bigger role for the United Nations, for the United bigger role that the thinks Ferguson however, is the only truly viable States United the moment, this is hegemon. At things seem to be heading. where will appreciate Businesspeople Ferguson politics and eco- interplay between prose. nomics, along with his breezy America that acknowledges Ferguson cation, he flatly rejects cation, he flatly rejects is hard to believe that the structures of liberal capitalism of that the structures to believe is hard in many dif- established been so successfully would have the world. around economies ferent “ ism tended to impoverish colonized countries. colonized ism tended to impoverish the world sorely needs the world sorely less convincingly, he also gives British imperialism cred- imperialism British he also gives less convincingly, democracy. it for spreading would the Neither not agree. 1776, would probably who came to equate democracy with independ- Indians II. War World out after the British ence and threw that the U.S. anti-imperialist tradition makes it doubtful he has in mind will embrace the role British imperial rule, it is hard to believe that the insti- that the to believe imperial rule, it is hard British tutions of parliamentarybeen have democracy would in the world, as they the majority of states adopted by today, are evangelism that Ferguson recommends stem partly from recommends that Ferguson evangelism aunt in of a wealthy on the brutal murder her reflections trauma eventually That the family chauffeur. by Manila led her to conclude that capitalist success and the popu- “… has a much bigger It begetter. and less than its British people, a much larger arsenal. But many more economy, to export that lacks the drive its capital, it is an empire regions to those backward its people, and its culture which need them most urgently and which, if they are security. to its threat the greatest neglected, will breed America America

provocative provocative BEST 03

content best business books 29 content best business books 30 s global ’ . She is s Founding ’ via an inde- A Beautiful Mind Fortune —

just as it is in the ” + , and — namely, popular govern- namely, — can lead as easily to tyranny and s role in the world is either utterly in the s role ’ — ., including times when they were con- they were ., including times when s the kind of thinking that should help the backward regions. the backward ’ C “ . U.S. News & World Report B , ([email protected]) ([email protected]) is the author of have flourished in many different Asian, many different flourished in have — Like Chua, though, Zakaria is a firm believer in the firm believer is a Zakaria Like Chua, though, At a time when the fates of rich and poor nations a time when the fates of rich At need for markets and liberty. His finely tuned argument finely tuned His and liberty. need for markets than elections. For more is that democracy involves in poor countries, considerable democracy to work insulated authority must be delegated to institutions political pressures day-to-day from spicuously absent in Europe (during the Inquisition, for (during the Inquisition, Europe spicuously absent in democracy failing to acknowledge example). By much to and the others concede far too Zakaria roots, is an who claim that freedom opponents of democracy who and to pessimists West, the imposed by alien value dis- in what Ferguson take hold doubt that it can ever calls missively Court, the Supreme As models, he offers States. United The Court, Reserve, and the U.S. military. the Federal freedoms for example, is the guarantor of the individual be will of Rights. Readers enumerated in the Bill of the debates among America reminded who tried to balance majority rule with individ- Fathers, rightsual of Rights and a system of by adopting a Bill extending the point is that checks and balances. His franchise without securing these rights pendent judiciary violence as it can to genuine democracy. violence as it can to genuine democracy. closely intertwined, far too much of the public dis- are cussion of America ment at the local level, public debate, and tolerance of public debate, and local level, ment at the dissent nomics, and Kwame Anthony Appiah, the Princeton Appiah, Anthony and Kwame nomics, that shown others, have among political philosopher, of democracy key elements vacuous or dominated by ideology. Despite their sharp Despite ideology. or dominated by vacuous and occasional blind spots, these authors disagreements argument, manage to combine high ideals with reasoned insights, and a willingness to embrace inconven- fresh That ient facts. African, and Middle Eastern societies as far back as the Eastern societies Middle African, and fifth century to frame the debate about citizenship, government, and government, to frame the debate about citizenship, global business in the 21st century. currently working on currently a book on 20th-century economic thinkers. Sylvia Nasar Sylvia (Simon & Schuster, 1998), the biography award-winning of math- ematician John Nash. She is the John S. and James L. Knight of Business Journalism Professor at the Columbia University Graduate School of Journalism, and was a formerly writer at the Times New York s ’ The s public ’ s roots are s roots ’ s NEP and tens of mil- ’ s difficult to “ ’ on their con- It “ one strategy for — — immediate majority immediate “ s intelligent dissection s intelligent ’ democracy comes in many democracy comes in “ Chua ” s failure to achieve free and open free to achieve s failure ’ Concludes Chua, Singer would certainly agree. would certainly agree. Singer ” is particularly useful. Her propos- is particularly useful. Her s superb book-length essay, s superb book-length essay, s murder, her relatives hired more hired her relatives s murder, ’ ’ ” raises some of the same cautionary s work. Although more cerebral, more Although s work. however temporary however — ’ — India has been unable to engage in sus- India “ s instincts are mostly sound. She describes mostly sound. She s instincts are One result, he says, is that India, which start- he says, is that India, result, One ’ ” s ethnic preference programs programs s ethnic preference s book is also rooted in close personal observa-s book is also rooted ’ Citizens of China have secured many valuable secured of China have Citizens ’ ” Oddly, Zakaria, Chua, and Ferguson never chal- never Chua, and Ferguson Zakaria, Oddly, Chua Fareed Zakaria Fareed Future of Freedom, Future hardly alone when she warns that alone when she hardly bring states would likely many of the Arab elections in and anti-America, anti-Israel, anti-market, to power regimes. anti-globalization advance them while soothing popular resentment. She resentment. popular soothing them while advance themes as Chua stituents. tion of a society, India, that has long grappled with the India, tion of a society, and promis- sometimes conflicting ideals of democracy and ethnic violence. Zakaria es to eradicate poverty argues that largely because its politicians will not tained reform inflict any pain Zakaria Quebec of affirmative action programs like Malaysia like action programs of affirmative ed out no poorer than China in 1960, now lags far than China in 1960, now ed out no poorer infant mortality, behind in terms of life expectancy, to mention however, neglects, He nutrition, and literacy. of China the downside public debate, including setbacks in China defusing tensions and constitutional programs als for tax and transfer independent judi- by of minorities enforced protection makes an important, and She ciaries also make sense. point that often overlooked, lenge the Eurocentric premise that democracy premise lenge the Eurocentric health system since 1979 and, more dramatically, the dramatically, health system since 1979 and, more SARS epidemic. in the recent of censorship role in eco- laureate the Nobel Amartya Sen, Western. purely how, after her aunt how, fences, and bought barbed-wire erected bodyguards, deeds wonders if visible good vicious watchdogs. She cites posi- She protection. them better might not afford in East philanthropists such as Indian examples tive who models in Siberia capitalist Africa and a Jewish Carnegie and has spent himself on Andrew parkas, money airlifting food, lions of dollars of his own boots, and medicine. individual freedoms not available before 1970, even before not available individual freedoms to obtain majority rule, yet multiple though they have press. political parties, or a free guises. see, in any event, how a little generosity and humility a little generosity how see, in any event, could possibly hurt.

su 33 issue strategy+business of

Needs Followers his year’s harvest of leadership books his year’s the performance of the current reflects in the public and private of leaders crop had trouble We sectors: mostly mediocre.

Fortunately, there are a few good leaders, and a few are there Fortunately, LEA T THE THE by Bruce A. Pasternack and James O’Toole finding even six out of the dozen of new six out of the dozen titles that we finding even without qualification — and the best could recommend that can be said for most of them is that they faithfully already unobjectionable advice found in volumes repeat thematic note one positive we However, on our shelves. The examined: running the books we’ve through trend of ideas is continuing to define leadership marketplace And execution. vision or charisma, but by not by is seen not as a bloodless opera- execution increasingly, tional skill, but as a collection of human traits. Most on the encouraging, authors seem to be focusing more and less on the ego require- legitimate needs of followers ments of leaders. good new leadership books.

content best business books 31 content best business books 32

BOOKS s statement that ’ BEST 03 He describes key elements He ” reengineering is like starting a fire on is like starting a fire reengineering Reengineering’s Pain and Payoff Reengineering’s billions by Although IBM saved frankly Gerstner reengineering, was painful, quot- admits the process ing a colleague “ putting it out with a head and your hammer. and reengineering. and reengineering. SHIP in practi- process of the reengineering as cal detail: eliminating bureaucracy quickly as possible; decentralizing for decision making while allowing setting; cre- central strategic direction Gerstner explains how he decided on the how explains Gerstner ” Manage by principle, not process. by Manage behind is the driving force The marketplace everything does. IBM Look for people who work help problems, to solve • • • vision thing, “ together, strategic priorities: keeping IBM following model (expenses changing its fundamental economic were profits faster than its gross needed to be reduced declining), selling underperforming assets to raise cash, ating a common focus on the customer; and right-sizing carryingquickly after cutting costs. In out these the following says he was guided by changes, Gerstner leadership precepts: Fourth Quarter Fourth s ’ s+b,

” (HarperBusiness, 2002) is, to our (HarperBusiness, (which we reviewed last reviewed (which we Leadership Theory and “ Who Says Elephants Can’t Dance? Inside IBM’s Inside Dance? Can’t Elephants Who Says Louis V. Gerstner Jr. gets the nod on both counts. Jr. Gerstner V. Louis Gerstner is not on an executive ego trip designed to is not on an executive Gerstner Historic Turnaround Historic His His Execution: The Discipline of Getting Execution: Things Done convince readers how great a leader he was. Instead, he a leader he was. Instead, great how convince readers minimal space to his own wants to educate us. Devoting telling us how to work quickly gets down life, Gerstner he planned the unexpected (and, for a time, controver- the Dismissing sial) initial steps in the IBM makeover. 2002) would constitute a useful playbook on how to 2002) would constitute a useful playbook on how transform almost any business. minds, one of the best books written by a practitioner of minds, one of the best books written by and appar- in plain English, Writing the leadership art. ently without the help of a profession- logically and ana- Gerstner al writer, what he learned about lytically relates leadership during his successful career at American as a top executive and IBM. He RJR Nabisco, Express, translates those lessons into a set of he how guiding principles, and shows applied them in the complex process IBM. Combining of turning around in his principles with those offered Larry Bossidy and Ram Charan

Practice: So Happy Together, Happy So Practice: year in year ADER

su 33 issue strategy+business t fake ’ is an (Princeton always sweat he writes. You can You ” ” “ Leadership is one of the hottest ” flow winning historian James “ – s experiences and examples ’ You must prepare for everything prepare must You “ Academic Perspectives with the memoirs of Compared leadership books and mayors, CEOs and to be derivative scholars tend by because their authors Yet, deadly dull. important book for leaders in government, and it offers a few useful lessons all to those in business. Unfortunately, Giuliani are from government, and not all government, from are sector. translate to the private the small stuff, stand up to bullies, the small stuff, emotions when your and control under pressure. s notion of t assume a damn thing, ’ ’ brings 40 years of quality research to of quality research brings 40 years s crop promised to be different. Harvard to be different. promised s crop Searching for a Corporate Savior: The Savior: for a Corporate Searching ’ — s s advice tends to be sound, if not original. s advice tends to be don ’ ’ “ the closest thing there is to a Nobel Prize for Prize is to a Nobel the closest thing there ” — Giuliani In a chilling chapter on the events of September 11, of September chapter on the events a chilling In Khurana bring impressive credentials to the subject, four books credentials bring impressive among this year Rakesh Khurana is a new in the field; he professor voice offers data to support and controversial unconventional Prize conclusions. Pulitzer scholar of is the most distinguished Burns MacGregor Mihaly the subject of leadership. our era to address Csikszentmihalyi Irrational Quest for Charismatic CEOs Quest Irrational University Press, 2002) takes the unorthodox 2002) position Press, University is inefficient because it has that the CEO labor market vant data, performance indicators, and regular meetings performance data, vant regular and indicators, the importance of stress Both authors results. to probe details fundamentals and enough of the understanding and authentic between to distinguish of a business truly experts, com- who are those make-believe between game: those who talk a good petent and ideas in psychology today. And organizational theorist today. ideas in psychology Losey of the Michael E. Lawler III, recipient Edward Award management expertise. a tra- preparation, relentless discusses how 2001, Giuliani dition departmental of working across boundaries, and the to positively his team react scenario planning helped almost unimaginable. gifted, one, no matter how because no can think of, you preparation, can performcareful without and underpromise advice to leaders is raise the bar, His overdeliver, his subject. t ’ s: ’ ). ” ” s strategic ’ t hide behind t hide ’ politicians. “ — com- “ Gerstner — colleagues, and don and colleagues, the staff; sack s principles sound like Gerstner ’ people respect what you inspect what you people respect “ (Miramax, 2002), by former New York former New 2002), by (Miramax, s willingness to spell out what they mean in s willingness to spell BOOKS ’

Stay heavily involved in the company in the heavily involved Stay others implement. let direction; new create and committees; hierarchy Reduce teams. leadership the top. Lead change from a sense of urgency. Think and act with looking good. must replace Accountability being better than priorities, with sooner Set perfect. ) and insisting on disciplined reporting and ) and insisting on disciplined reporting ” Leadership • • • • • • These would be truisms and platitudes if it weren Finally, Gerstner describes four kinds of people: Gerstner Finally, t even know that things are happening. The book happening. that things are know t even

’ how people work, how they interact, and what moti- they how people work, how for Gerstner he says a corporation is nothing example, practice. For of its people to create capacity than the collective more of company culture a capacity that is a byproduct value, — to them. Although it is easy vates identify key indicators of culture does it focus on risk taking or consen- or the teamwork by sus? is it driven cult of an individual star? accountability ( those who make things happen; those to whom things happen; those who watch things happen; and those who don says a leader can neither mandate nor the top, from changes in culture change them through reengineer the Instead, management processes. conditions that leader must create enable people to adapt to changes in to Keys the operating environment. strategies doing that include creating with analytical underpinnings ( intelligence wins market and petitive wars City Mayor Rudolph W. Giuliani and Ken Kurson, and Ken Giuliani W. Rudolph City Mayor attempts to describe leadership techniques and princi- indus- and in both government ples useful to executives of Giuliani Some try. offers useful advice to would-be leaders on how to be in offers useful advice to would-be leaders on how the first category.

He says leaders should surround themselves with great themselves says leaders should surround He on rather than relying people, see things for themselves a purpose. Like Gerstner, around others, and organize stating that leaders need rele- accountability, he stresses BEST 03

content best business books 33 content best business books 34 in ” s dark

’ BOOKS Leadership s effort to X factor ’ “ s concern that in times of cri- ’ ” own psychological own “ BEST 03 s ’ s seminal work, work, s seminal ’ which he distinguishes from which he primarily because it has a because it has primarily ” ” but his fascinating historical charisma hungry “ — Transforming leaders define public leaders Transforming “ Such leaders address the wants of the address leaders Such t shrink from the complexity and para- t shrink from ’ ” t necessarily illuminate the subject ’ But wary is of charisma, and as much But as Burns ” Burns doesn Burns James MacGregor Burns MacGregor James transforming leadership, transforming leadership transactional values that embrace the supreme and enduring princi- and enduring supreme that embrace the values ples of a people. most wanting, and their ranks include such notables as most wanting, and The Lincoln, FDR, and Mandela. Jefferson, Gandhi, to deal with the tough philosoph- book was an attempt should and Mao Stalin, Hitler, ical question of whether bad if they were leaders, even be thought of as great that Burns critics concluded men. Most resolve that question was a useful and brilliant failure. that question was a useful resolve Transforming Leadership: The New Pursuit of Happiness Pursuit The New Leadership: Transforming it 2003), he tries to wrestle Press, Monthly (Atlantic The premise once and for all with a grand theory. down book is that leadership is the of the current (Harper & Row, 1978), introduced the concept of the concept introduced 1978), & Row, (Harper “ “ moral dimension: Activity Collective again attempts to is fascinating to watch as Burns It In of leadership. come to grips with the complexities why things historic causation, the key to understanding on the contri- happen. Although most historians focus is warybutions of individual leaders, Burns the tradi- of Erickson cites Erik He tional approach. fearful people become is sis, and notes that in most instances the net result simply gratification of the leader hunger. he still activity, as he claims leadership is a collective seems to equate leadership with individual actions. His central point is that those actions must be undertaken not for the benefit of the for the good of the followers, leader. examples don he describes the categories into which The more corners. the murki- he divides leadership, Were er his distinctions become. doxes of leadership doxes t ring entire- ’ are far more analytical than far more are — “X factor” in historic causation, the key s supposed impact on the economy, ’ The premise The of premise James Burns’s MacGregor to understanding why things happen. s appointment of Gerstner illustrates. s appointment of Gerstner ’ new new book is that is leadership the Khurana lumps people who study executive per- who study executive Khurana lumps people Khurana questions the conventional wisdom that Khurana questions the conventional Lou Gerstner, for one Lou Gerstner, too few buyers and sellers. He argues that most CEO that argues too few He and sellers. buyers trans- not and are lost legitimacy have processes search claims that Khurana and investors. to outsiders parent as look for outsiders firms search and executive boards highly than attributes more charismatic saviors, valuing CEO data on Using skills and experience. relevant that at 850 U.S. firms, the author concludes turnover no significant impact on perform- have top executives a are for outside CEOs That being so, searches ance. waste of money. CEOs those who believe categories: formance into three so constrained important, are feel CEOs those who are and little impact, that they have in what they can do depends. Citing the national fixation those who say it all on Alan Greenspan ly true in light of experience. Many outside CEO hires ly true in light of experience. Many — that Americans Khurana is correct charismatic. Clearly, charisma and err in portraying leadership as a overrate actually seem to focus on few boards solo act. However, looking instead for related charisma in CEO searches, and experience and the demonstrated ability to execute that many correct implement. And while he is probably in CEO successions, overlooked qualified insiders are When dis- to look outside. often good reasons are there regulatory change, or new competi- ruptive technology, tors alter the fundamentals of a business, an outsider is to lead a successful transformation, as the often required IBM board the job of leaders is to be Giuliani-like, helping organi- helping the job of leaders is to be Giuliani-like, to the future zations face up to crises and guiding them believe boards visions. Because way of motivating by up as calls for that, he says CEO job descriptions end and executive change agents with charisma, chemistry, Khurana amasses data to although However, presence. they don support his arguments, somehow he argues Americans have a cultural bias toward the first a cultural bias toward he argues Americans have of indi- the contribution category and thus overestimate vidual business leaders.

su 33 issue strategy+business like his — s Howard so few of ’ ” their people, “ s social responsibility in the 1970 s social responsibility ’ knows too little about business to offer use- knows — For all that, the author has written a book that feels all that, the author has written a book For Moralizing Moralizing and Mush been useful had Csikszentmihalyi also would have It the lip service given paid by the issue of why, addressed to the importanceCEOs of Gardner is a dis- get here What we ful advice to corporate leaders. This is of moralizing and mush. appointing mixture unfortunate because, when all the detritus has been his sluice, a truewashed through golden nugget remains. creating for to assume responsibility were executives If and could develop conditions under which employees about the development of individual potential, and for potential, individual of the development about can that potential where purposes, the place all practical if lead- Thus, organizations. is inside business be realized employees to provide it is a social responsibility, ers have with the opportunity they under which and conditions their potential. can fulfill corporate leaders have out of date. Arguing that 20 years he and society, customers, to employees, responsibilities decades past. of heroes cites business approvingly all farsighted, he mentions were Although the people and virtuousbrave, deserved leaders, and they their hero question to be asked today about status at the time, the They failed to convert other failed. them is why they most cases, even to their noble causes and, in executives organizations. lasting legacies in their own failed to leave had investigated would be useful if Csikszentmihalyi It they communicators? Did they ineffective Were why: society not yet Was fail to practice what they preached? flawed? their ideas were for their messages? Or ready of their track seems unaware Csikszentmihalyi Indeed, of the gallons of ink expended on and unaware records, the subject of business in which environments work them do much to create why he cites as wonders One can truly grow. employees whose poli- CEOs hard-nosed authorities half a dozen ones he advo- the antithesis of the idealistic cies were seems to be that he cates. Alas, the problem Harvard co-researcher, equally innovative to 1990 time frame. Treat People Right! Treat (Alfred (Viking is to create “ s worries and ’ Good Business: Good would have been a per- would have is gaining currency. ” ” ) argues that happiness ” flow buying employee loyalty with buying loyalty hot employee tubs. “ in the success of a corporation? ” LBJ and Queen Elizabeth I Elizabeth and Queen LBJ or transactional transformational We feel confident predicting We ” that feeling enjoyed by artists, by writ- that feeling enjoyed Edward Lawler’s Lawler’s Edward ” s starting point in s name will never become a household s name will never ’ ’ X factor “ flow, “ s view of leadership that the role

BOOKS ’ is not a manual bent for leaders on

In fact, providing happiness for followers is Mihaly happiness for followers fact, providing In Burns still is capable of the elegant prose that prose of the elegant still is capable Burns Sadly, Burns studiously avoids the subject of busi- the studiously avoids Burns Sadly, Bearing, yet not possessing yet Bearing, not taking credit yet Working, not dominating Leading, yet Virtue This is the Primal Csikszentmihalyi has a creative take on the world, has a creative Csikszentmihalyi

Vineyard of Liberty: The American Experiment American The of Liberty: Vineyard CHICK-sent-me-high-ee being in the zone. And Burns people to and expand the opportunities that empower pursue happiness for themselves Csikszentmihalyi fect segue into an exploration of business leadership. fect segue into an exploration of business brought tears to the eyes of those who read his master- who read of those tears to the eyes brought ful leaders? Unhelpfully, Burns makes the case that they makes the case Burns leaders? Unhelpfully, both. were equates with athletes call this feeling set aside. Skilled concerns are “ ers, and others who do creative work when they are so when they are work ers, and others who do creative absorbed in what they do that they lose track of time this blissful condition, all one and place. In Leadership, Flow, and the Making of Meaning and the Making Leadership, Flow, ness leadership. It would be instructive to see him It ness leadership. the business implications of his central thesis, explore Is context: Khurana in a different the question raised by leadership the A. Knopf, 1982), and he offers numerous apposite cita- and he offers numerous 1982), A. Knopf, on the characteristics of the Tzu Lao tions, for example, moral leader: Penguin, 2003). Csikszentmihalyi (pronounced 2003). Csikszentmihalyi Penguin, “ word, but his concept of word, and, in his previous books, he helped remove psycholo- books, he helped remove and, in his previous boxes analytical and experimental its narrow gy from and apply it to the big issues facing individuals and soci- his argument is simple and on target: Life is Here ety. Csikszentmihalyi BEST 03

content best business books 35 content best business books 36 t ’ In different In + The Centerless Corporation: A New ([email protected]) is ([email protected]) a senior vice ways, each author reminds us that ways, each author reminds the leadership is about addressing That point bears needs of followers. it needs because, apparently, repeating every by to be personally rediscovered would-be leader. ([email protected]) is Research Professor in is Professor ([email protected]) Research Leadership Leadership A to Z: A Guide for the Ambitious Appropriately The role of leaders is to create environments in which environments is to create of leaders The role This book is a useful reminder that leadership isn is a useful reminder This book It is hard to imagine how these six authors could to imagine how is hard It their followers can realize their own potential. their own can realize their followers the facts about what works and what does not. does not. and what what works about the facts all glory and games; there is nothing here about head- all glory here is nothing games; there and dramatic bet-the-company acquisitions or line-making that many leadership acknowledges He investments. with Lawler deals only dull but difficult. not tasks are the hated task of performance appraisal, both unpleas- in to do fairly and effectively, ant and almost impossible and best practices reviews He the most practical manner: cons of and pros data about the the research presents for a ton of useful advice, this leaders looking each. For is the book. so dif- subject that are written books on the same have on one important converge their perspectives yet ferent, point: the Center at for Organizations Effective the University of Southern California and has about written political extensively philosophy, and culture, He corporate leadership. has written 13 books, including Bruce Bruce A. Pasternack Organization for Model Growth for Your and Transforming Prosperity (Simon & Schuster, 1998). James O’Toole 1999). (Jossey-Bass, president with president Booz Allen Hamilton in He San is Francisco. the coauthor, with Albert J. Viscio, of Treat and ” (Jossey- swimming, “ work of leadership. work

” — are counterproductive, even if even counterproductive, are and real and real — — walking on water, “ categories self-interest to work pro- to work self-interest ” ’ rating systems requiring supervisors rating systems requiring to divide — There is no gee-whiz or wham in the book; if it There Doing just that has been the lifelong contribution just that has been Doing drowning were any less sexy, its jacket would be a plain brown sexy, any less were pages of research-based are there Instead, wrapper. advice on the routine Bass, 2003) is not a manual for leaders bent on buying 2003) is not a manual Bass, tubs, beer busts, and casual with hot loyalty employee compendium of hardheaded it is a Instead, Fridays. what has been learned about organiza- the last 40 over tional effectiveness which Lawler has during years, arguably been the leading researcher in the field. Lawler describes what to attract, retain, leaders need in order and reward motivate, develop, men- never so doing, he In employees. tions the usual suspects: charisma, Instead, communication, or control. he says the goal of a leader is to create one in which organization, an effective and systems are structure, strategy, aligned in such a way that it is in employees ductively. find meaning, it is highly probable that corporations probable it is highly meaning, find Although and productive. effective more would become to apply the concept how to show tries Csikszentmihalyi he tasks, and work of organizations to the design of flow seems convincingly and his argument fails to make work- and well-documented the numerous of unaware of undertakenplace experiments last third in the the 20th century the very he that addressed problems identifies. although the title of his 34th book Lawler, of Edward about its contents. impression a wrong may give People Right! How Organizations and Individuals Can and Individuals Organizations How Right! People of Success Spiral Virtuous into a Other Each Propel people into Lawler explains in specific terms why leaders need to cor- systems that reinforce devise and implement reward Then he shows values. design, and core porate strategy, more bonuses are that is done, documenting how how explaining why it is better to than merit pay, effective indi- than by skills acquired by determine pay increases vidual performance, distribu- and warning that forced tions currently fashionable. No arm waving or exhortations fashionable. No currently in the exposition: Lawler simply presents involved are “

su 33 issue strategy+business What Should I What Should THE (Random House, 2002) is a col- (Random House, t’s often observed that the leading industry t’s City is not media or fashion York of New of a highly or finance but the creation Of individuated, vigilantly tended self. Three new books tackle this trend and its conse- new trend books tackle this Three I Do with My Life? The True Story of People Who Answered of People Story True The Life? with My Do Question the Ultimate Managing Me Generation by Kate Jennings course, this is not confined to that famously introverted of the city; it can be found along the length and breadth before and as never play, the world. At U.S. and around insisting on the dominion of their people are at work, it seems as if everyone is Sometimes needful natures. gotta be me.” singing in chorus, “I’ve and on the workplace, and indirectly, quences, directly Bronson’s ways. Po in strikingly different

VALUEScontent best business books 37 content best business books 38 ’

BOOKS Network, s ball-bearing ’ s Bryce, a geol- s Bryce, ’ t rip large holes in ’ BEST 03 re not going to take it not going to take re ’ s certainly Scheheraza- ’ t suit their skills or ended t suit their ’ s popularity as a speaker indi- ’ s bestseller status and the ’ s subjects don s approach to his subject is anec- to s approach ’ ’ dotal, it can be criticized for not dotal, it can be criticized but the research, being representative book writer rea- One cate he has struck a chord. son is that everyone likes a good and it story, dian. When Joe, a banker, becomes a banker, a When Joe, dian. superintendent of a school system of flukes, will it work a series through When Claude, a marine biolo- out? he dislikes nature gist, acknowledges he do? people, what will and loves enters He answer: The improbable dentistry winds up happy school and t doing it for the money, as is the case t doing it for the money, ’ s Sidney, a 70-year-old research chemist research a 70-year-old s Sidney, ’ s subjects, selected largely from his peers selected largely from s subjects, ’ re as mad as hell and they as mad as hell and re Bronson Because Bronson Because Most of Bronson Most ’ tenor of our questing times. times. of our questing tenor (middle-class Gen X dot-commers, ex-Clinton staffers, ex-Clinton X dot-commers, Gen (middle-class any number of reasons. dissatisfied for are and MBAs), or they career the wrong them into pressured Parents path that didn chose a career they up in a job that caused them moral disquiet. Others are them moral disquiet. Others up in a job that caused exhilarating jobs in the had or have addicted to change out of work. now but are Valley, or Silicon White House and, like frustrated corporate indifference, by are Many Beal, anchorman Howard the disconsolate television in the 1976 movie Finch Peter by played anymore. They want their professional and personal They want their professional anymore. morali- and private to mesh, and their workplace selves ty to be one and the same. as a pig in mud. What about Kurt, a silver-spoon type a silver-spoon What about Kurt, as a pig in mud. his family to take over under pressure he defies societal and familial pressures Well, company? And then there cop. and becomes a street ogist who works for Big Oil, covering up companies covering Oil, for Big ogist who works misdeeds. When he loses out in some fierce politicking some fierce When he loses out in misdeeds. his company for a position his colleagues, he leaves by with policing those he once worked with the county, those of us with For and earning a quarter of the money. there gray hair, who follows his bliss to become a lawyer. Ah, people in his bliss to become a lawyer. who follows their infinite variety. their life easily. Sidney faced monolithic age discrimina- Sidney their life easily. tion, and he wasn for many who switch careers in for many who switch careers midlife to become lawyers. t s s ” ” ’ ’ ’ The s one ’ We are all are We “ (Random House, an orthodoxy of the “

The Support Economy: The Support — . We demand of it some- We . … , in the new t forthcom- t ciphers with skills but indi- t ciphers with skills ’ ’ ” Bombardiers (Alfred A. Knopf, 2003), throws 2003), A. Knopf, (Alfred magazine essay (Viking Penguin, 2002), Shoshana (Viking Penguin, t respond effectively because mana- effectively t respond ’ but it could also be argued that it learning supplants security; freedom to learning supplants security; freedom t go back in the bottle. ’ — Fortune t understood the disquiet that Bronson t understood the disquiet

’ ” “… . we will not have squandered our time here. squandered will not have . we I Don’t Know How She Does It: The Life of Kate The Life It: Does She How Know I Don’t (Random House, 1999), sounds his theme loud (Random House, … In short, these books argue that In Gray Flannel Suit? Moi? Suit? Flannel Gray This sounds like a bit of easy sloganeering, but Bronson the has written a book that goes deeper and reflects writing the story of our life want to We substantive. or more or richer, thing deeper, know workplace workplace supplants task. relationship power; supplants maneuver “ pokes fun at this trend Stewart Zuboff and James Maxmin argue that corporations Maxmin James and Zuboff either haven Po Bronson, author of Bronson, Po The Sweet Spot novel, novel, lection of personal stories about career dissatisfaction career about stories of personal lection Allison Pearson causes and solutions. and its myriad Nudist on the Late Shift and Other True Tales of Silicon Tales True and Other on the Late Shift Nudist Valley 1995), a classic novel about Wall Street traders, and Street Wall about 1995), a classic novel and clear in the opening of his latest book: Why Corporations Are Failing Individuals and the Next and the Individuals Failing Are Why Corporations of Capitalism Episode the subject of work/life balance into stark and some- balance into stark of work/life the subject a one-two home with bringing relief, times hilarious aren punch that workers Reddy, Working Mother Working Reddy, genie that won unorthodox stories illustrate or the needs of the Kate Reddys of the the needs of the Kate Reddys stories illustrate or the individuation recognized if they have world. Or, they can movement, gerial capitalism, no matter how it contorts itself, isn it contorts itself, gerial capitalism, no matter how employees are asking for more from asking for more are employees and than paychecks life their work corporate ladders to ascend; people to a to belong work, want rewarding for worthwhile enterprise that allows and caters to differ- personal growth isn contentment ences. If up to this potentially economy-transforming task. to feel free increasingly ing, employees Stewart Thomas As seek it elsewhere. pointed out in his terrific and humor- ously titled viduals with lives with which managers have to reckon if to reckon have with which managers viduals with lives talent. In to keep the best they are

su 33 issue strategy+business ’ is — she ” t Know ’ s still an ’ s market, and s market, Much would Much I Don ’ s ideals to pre- s ideals to ’ And her life ” ” fiction. But men fiction. But ” the synapse-snapping s, with the hero, Kate s, with the hero, ’ … chick-lit “ My lovely funny [husband] lovely My s and Ghoshal “ ’ s toxic in most companies for s toxic ’ and now, thirteen into an years and now, s the thing: I love my job, s the thing: I love ’ s going on in the heads of female col- ’ Here “ has sold millions of copies, striking an I love the blood-rush when the stocks I I love s tartly humorous novel s tartly novel humorous “ ’ s also a mirror of a dysfunctional society. of a dysfunctional society. s also a mirror ’ The Big Easy The Big s no way to live a life. I lived in fear. in life. I lived a to live s no way ’ Protagonist Kate Reddy, a star hedge-fund manag- Kate Reddy, Protagonist once looked at me as Dennis Quaid looked at Ellen Quaid once looked at me as Dennis equal, mutually supportive partnership, looks at me the equal, mutually supportive partnership, way a smoking beagle looks at a medical researcher that such experiments may need to be conducted aware plead- but still somehow for the sake of human progress an awful mess. Poor Kate: an awful mess. Poor … in Barkin Balance Balance and Productivity discontent, corporate about employee proactive being In issue, balance work/life the confront management has to This affects all work- it a perfunctorynot just give nod. who are ers, but particularlywomen with children, in a system that working with motherhood. wanting to combine a career anyone Allison Pearson even deeper chord than Bronson chord deeper even How She Does It Does She How Reddy, becoming an Everywoman figure. The novel figure. becoming an Everywoman Reddy, does fall into the category of reading Clancy and Tom putting down would gain from cover paper can always put a brown (guys, you Pearson on it) to learn what leagues. Be prepared for a shock; this is a humorous prepared leagues. Be book, but it hole, and though she peg in a round is not a square er, male colleagues and a gripes about her Neanderthal she hostile to her needs as a mother, workplace inspired worker. worker. inspired That to change for Bronson have vail, although a predicted shortage of college-educated although a predicted vail, this change. force might boomers retire as baby workers a seller create crisis will This demographic employees with to reckon going to have are employers selfhood. needs, including their tells the reader. tells the reader. the goods put a punt on deliver satisfaction of being good at it, of being in control when satisfaction of being good at it, of being in control of life seems such an awful mess. the rest s ” ’ Of ” s own. to find ’ “ s on the ’ s subjects ’ s book is that ’ argument, Bronson ” re sitting on a huge poten- re ’ s a huge economic issue. productivity explodes when productivity would would do well to Po read Bronson’s ’ “ Any manager in interested knowing s not forget the typical callous- . It ’ Although Sidney chose chem- chose Sidney Although istry pique, he of youthful in a fit s book. These are case studies that case These are s book. ’ … What Should I Do with My Life? s suffering from nagging career dissat- nagging career s suffering from because ’ ” release their entrepreneurial hostages. their entrepreneurial release In the U.S. the trend in the labor market is in the labor market the U.S. the trend In “ “ square peg, round hole peg, round square

BOOKS “ what’s on the what’s minds of other employees

s ex-colleagues at the oil company taunt the for- at the oil company s ex-colleagues ’ Anyone who Anyone There is another reason for managers to read what for managers to read is another reason There In his In

mer geologist for his lack of wealth, and they try and wealth, for his lack of mer geologist to he might And although back to his old job. seduce him he has to deal with gov- be on the side of the angels, now it, but makes his peace with He ernment bureaucracy. difficulty. with great had always pined for the puzzling challenges of the law. challenges of pined for the puzzling had always Bryce bring all kinds of thoughts out of hibernation, even if out of hibernation, even bring all kinds of thoughts to one not identical discussed are the problems what in knowing Any managers interested isfaction, no matter his or her age or experience, would isfaction, no matter Bronson benefit from Bronson has to say. He does not just write about the He has to say. Bronson to stay pursuit of happiness but argues that companies, should encourage their employees competitive, minds of other employees would do well to read it, too. it, too. to read would do well minds of other employees spot their sweet people love what they do. We what they do. people love tial boom in productivity, which we could tap into if we which we tial boom in productivity, and round holes pegs in the square got all the square holes pegs in round course, this contradicts the typical corporate imperative must the ranks, employees that says to rise through make sacrifices. And let Although productivity is already booming, at least in the booming, at least in is already Although productivity the implication of Bronson U.S. economy, and longer if man- stronger the boom would be even agers could better understand the mind-set and discon- tents of their employees. School London Business echoes an argument made by has long Ghoshal Ghoshal. management guru Sumantra conform urged companies to stop making employees and instead reminds us: reminds ness of corporations, as one of Bronson

to make you disposable. I was a replaceable commodity. disposable. I was a replaceable to make you BEST 03

content best business books 39 content best business books 40 t ’ new new “ “

econ- BOOKS ” the support “ markets are no are markets also an echo of also an echo “ distributed “ — t up to the care and t up to the care BEST 03 ’

” In this In ” that workers now desire on desire now that workers — Marketing is replaced by by is replaced Marketing Workers delivering the support delivering Workers ” whether they are producers or con- producers whether they are dialogue between customers and dialogue between companies. that makes this happen will be as sat- omy, they write, they omy, longer targeted, attacked, penetrated, corporations. Instead or saturated by self-selected and self-defin- they are ing. sumers. To deliver goods and services, goods deliver To sumers. a federation of agile, they propose support accountable net- responsive, they call which works, economy. — s words s words ’ as the authors call them, or the business call them, or as the authors but because managers are so focused on the so focused on are but because managers ” ” s performance, they aren ’ The end of corporations? The rise of a federation of The rise of a The end of corporations? Organizations are unable to understand these understand to unable are Organizations The paradox is that managerial capitalism and its is that managerial The paradox sanctuary, voice, and connection voice, sanctuary, feel bound by exacting organizational needs but still do feel bound by lives. full and have their jobs well dialogue? by replaced support Marketing networks? might wonder at first Readers are and Maxmin what Zuboff isfied as the consumers because they will be operating by isfied as the consumers because they will a newbased upon collaboration and managerial canon instead of supervisioncoordination and administration. important like personal values of surrendering Instead common sense, judgment, and empathy to organizational demands, the institution will honor each employ- enabling him or her to apply ee as a whole person by support in delivering to customers. personal values often are the women fleeing corporations Interestingly, more to form businesses that are doing so in order don employees where less hierarchal, human-centered, individual, institution individuals, opportunities they represent, because, for all the protes- because, opportunities they represent, capi- first, managerial putting individuals tations about the the task of providing not adequate to talism is just “ Thomas Stewart the job and at home. birth gave and range of choices to the inventions feeding of individuals. Zuboff and Maxmin prescribe a prescribe Maxmin and Zuboff feeding of individuals. capitalism, which of managerial Copernican inversion rather than the business organiza- would put individuals and then imagine a tion at the center of our endeavors, satisfying people everything toward world where works separates them ” s twenty years of years s twenty ’ s never been anything been s never ’ The Support Economy, The Support t be changing anytime a chasm ’ “ t answer them. (Manu- t answer ’ There “ but ” s happened so ’ know their place, know and suddenly it s become an outlet ’ t ’ — . Century after century of women know- Kate, not always likable in her misery, is in her misery, likable not always Kate, ” don … s not a genre that can be s not a genre ’ s scary for men. It ’

To be sure, such glibness is a be sure, To In the end, like many corporate women, Kate real- many corporate women, the end, like In Then she moves her family to the country and goes Then she moves ” more intricate, acute, detailed, vast, and rich than at intricate, acute, detailed, vast, more trademark of chick-lit fiction. All the of trademark same, it ignored, because it ignored, for the frustrations of a new genera- it for the They read tion of women. that an older generation same reasons or Friedan feminists Betty read vent, to laugh, cry, Greer: Germaine make sense of the world. and identify, and it fast. any other time in history, authors Shoshana Zuboff, a social psychologist and pro- a social psychologist Zuboff, authors Shoshana School, and her husband Business fessor at the Harvard Thorn Home the ex-CEO of Maxmin, James try to pro- Laura Ashley, U.K., and Volvo Electronics, As their subtitle indicates, they startvide some answers. and Pearson. as Bronson the same premise from that is a sense of self they argue, have today, Individuals “ The New Individual to They bring writers. zeitgeist are and Pearson Bronson although they pose of an era. However, life problems good questions, they don facturing dollhouses is not an answer to the saddening facturing dollhouses is not an answer their attrition rate among corporate women.) In book rewarding provocative, like us before izes that the work world won world work that the izes neglectful of her husband, but she earns sympathy for she earns sympathy of her husband, but neglectful nanny, of a manipulative at the hands her suffering and those ghastly in-laws, house cleaner, incompetent nasty co-workers. ing for release. ing for from the business organizations in which they work and the business organizations in which they work from them with goods and services. that provide ing their place into business manufacturing dollhouses. Certainlyinto business manufacturing this for someone who says to a is an ungainly capitulation female colleague, younger soon. So, despite a sympathetic boss and an offer of despite a sympathetic soon. So, also departs with She up her job. she gives money, more demise of her career engineering the a bit of venom, most brutish male colleague. women who

su 33 issue strategy+business HU s s ’ ’ + cognitive “ Australian Moral Hazard Los Los Angeles ve been talking ve ’ (Back Bay Books, , the bring to their work in June, “From pay- “From in June, Snake fiction prize. She is also the magazines, and the New York Times New York s time for business to catch up. s time for business to catch up. ’ smoking. Yet their ideas are not ideas are their Yet smoking. is a there already science fiction; s time to make it happen. We have We s time to make it happen. ’ New York Times York New Challenge The Support Economy The Support Los Los Angeles Times and . She working is on currently a book about crea- BOOKS ([email protected]) is the author of d eat up a support economy. Po Bronson Po d eat up a support economy. ’ and consider these ideas. We and consider these ideas. s vision of a new corporate world, Kate Reddy ’ ”

Prospect , All this, of course, is blue-sky thinking. But, still, it But, All this, of course, is blue-sky thinking.

marked trend toward specialization and away from ver- away from specialization and toward trend marked fed- a lot like the way their that sounds tical integration Postrel Virginia As economist would work. eration idea in the announced A New Corporate World The authors of an impressive breadth of references, and, best of all, a of references, breadth an impressive followed Having capacity for thinking outside the box. the indi- favors the authors in imagining a system that will find it vidual and not the organization, the reader not to see possibilities everywhere indi- for linking hard and Zuboff In creation. vidual satisfaction with wealth Maxmin roll management to movie special effects, vertical inte- movie roll management to quotes business is in.” She gration is out. Specialization visible hand of “the who saw Chandler, historian Alfred the invisible hand of [replacing] managerial coordination of Zuboff at the core an observationthe market,” that’s self- and not argument: Let the market and Maxmin’s individual.” to the “new respond organizations interested bunkers to bridge the profes- for a long time about how now often than not we sional and personal divide, but more an impasse. It reach that emphasize, and Maxmin as Zuboff to acknowledge, than the organizations changed much more people have that depend on them. It might not hurtour us to climb out of problems at work and home, for example, would disap- work at problems pear; she transformed from subjects would find the workplace with to beneficially progressive, meanly aggressive and to to maneuver with room shared, responsibility talent. nurture Times author of the acclaimed critically novel Financial Review 1999). She has written for the Kate Jennings HarperCollins, Estate, (Fourth 2002), a novel about in Street Wall the 1990s, Christina which Stead Prize won Australia’s and was nominated for the

tivity in the workplace. BEST 03

content best business books 41 content best business books 42

BOOKS The New (W.W. Norton & Norton (W.W. BEST 03 s won more regular- s won more CAPITAL ’ high ambitions for his to within a few outs of Jim Clark, who founded Clark, Jim — — — is the story of how Billy Beane is the story Billy of how s books, and by watching how they deal watching how s books, and by ’ Moneyball his latest book, he has visited the world of his latest book, he has visited the world Liar’s Poker: Rising Through the Wreckage on Wall on Wreckage the Through Rising Poker: Liar’s (W.W. Norton & Company, 1989), Lewis took & Company, Norton (W.W. Baseball addicts will love the addicts will love Baseball In the New York Yankees Yankees York the New Street did it. Moneyball, Spotting Talent may be a sport, but it is also a business, a big Baseball that many a man- had a problem Beane business. Billy with ager could empathize for the last somehow, Yet team but only a tiny budget. in payroll or next-to-lowest with the lowest years, several A the major leagues, the Oakland lot by living with the characters revealed in the pages of with the characters revealed living lot by Lewis Michael of management. with the big and little problems New Thing: A Silicon Valley Story Valley Thing: A Silicon New Company, 1999), he explored Silicon Valley and one of Valley Silicon 1999), he explored Company, residents exotic its more In and Healtheon. Netscape, Graphics, Silicon the lid off the world of investment banking. In banking. In the lid off the world of investment baseball and, in particular, the Oakland Athletics and Athletics the Oakland baseball and, in particular, manager. their general Beane, Billy elimination. season games than any other team except the Atlanta season games than any other team except and in in a row, years three to the playoffs went Braves, took the richest team in baseball two years the previous — by Michael by Moneyball: The Moneyball: Art

of Winning an Unfair Game, an Unfair Winning of ou can tell at once that Lewis (W.W. Norton & Company, 2003), Company, & Norton Lewis (W.W. is not going to be one of those standard

Baseball

For each of his books, Lewis has charmed his way For by Charles by Handy Charles as Business Business into the culture of a very world, and into the into the culture different characters who inhabit that confidence of some riveting it is; this is how is how read, feel as you This, you world. the ambitions these are these people think and work, the conflicts that them, these are and passions that drive As observers can learn a dog their lives. of business, we business books. It has no index. There are no references are There has no index. business books. It model organ- to other authors, no case studies from here izations, no fine theories or worthy checklists. Michael Lewis people, and writes stories, true stories about real mes- are there If he lets the stories speak for themselves. sages in them for managers or businesspeople, they will his assistance. them out without to work have

Y MAN

su 33 issue strategy+business t ’ t. ’ Bill ” s true, ’ s tradi- ’ t or didn ’ ” You have to realize, have You “ chapter describing the day The better clues, Paul reckoned, The better clues, Paul Moneyball. Moneyball for players and teams are fatally and teams are for players flawed. appearances or in lay not in outward style but in the statistics of the past performances if, of the amateurs, even as sometimes happened, the statistics would do suggested that the player That role. better in a different however, only if the numbers measure however, often they don Too the right things. In baseball, as in many other business- In es,and ratios many of the statistics designed in an earlier age and no were matters. longer count what really as soon as you acquire a taste for inde- acquire as soon as you “ Mining the numbers allowed Billy Beane to pick Beane Billy the numbers allowed Mining Fortunately for Billy and Paul, a maverick baseball a maverick and Paul, for Billy Fortunately James once said, James Measures That Measures Matter was a mine of num- discovered DePodesta What Paul collected for years, had been around bers; numbers that of amateur baseball enthusi- brotherhood a strange by baseball had that nobody in major league asts. Numbers are These sabermetrics, as they paid any attention to. clues to success called, demonstrated that the traditional of the 2002 draft is an absorbing picture of a power shift of a power of the 2002 draft is an absorbing picture the discomfortin process, and, often, disbelief of the players that nobody else bothered with, and to pay them that nobody else bothered players could command. fancied players far less than the more of the scouts cut back the power also, not incidentally, It had the only useful information on the who, previously, The new recruits. pendent thought, that a great part of the sportpendent thought, that a great is ridiculous hokum. tional knowledge enthusiast who was working as a night watchman in a enthusiast who was working and beans factorypork his nights calculating had spent name His reality. what ratios and numbers did reflect and he is just one of the unusual charac- James, was Bill ters who emerge in ruled supreme. In baseball as elsewhere, Paul believed, Paul as elsewhere, baseball In ruled supreme. tendency for everyone was a who had actually there own their from wildly the game to generalize played importantthe human was the way Most experience. on exclusively itself when it relied tricks on mind played couldn was a lot that you There what it saw. see when you watched a baseball game. This provided game. watched a baseball see when you way for nice opportunities spot talent in a different to the reality. the illusion to who could see through anyone s ’ We take We “

— (Reading this, (Reading ” tale, will probably know the know will probably tale, and many involved, names of and inevitably failing to get all they —

BOOKS

and that was revolutionary. — That may not seem very revolutionary, but baseball veryThat may not seem revolutionary, amateurs the selection of promising Traditionally, Michael Lewis joined Billy Beane Lewis joined Billy Michael The fact was that no one had ever bothered to check bothered The fact was that no one had ever

will recall some of the key events. Others will be baffled Others of the key events. some will recall of the game, and the technicalities the jargon at times by on the equal- who was reared reviewer British as was this sportsly mysterious rugby of cricket and but has football But, a game of baseball. watched, let alone played, never the technical bits may be criti- as in most of life, while Beane The point is Billy point. not the cal, they are wanted. To Billy, the draft was a crapshoot Billy, To wanted. is one of those businesses where the people truly are the truly the people are where is one of those businesses has a market player as such. Every priced assets and are is market, and exclusive small a relatively that, in value is reason- it market, such a transparent to all. In known play- expensive able for people to assume that the most the a situation that clearly favors the best players, ers are to dared Beane deepest pockets. Billy did not know suggest that the market best of the impressions had been based on the subjective scouts and on their views of what physique and talents their views of what Unsurprisingly, players. made great similar to those of the scouts of other were mattered teams, which meant that everyone ended up going for the same recruits realization that baseball teams are made, not bought. made, not teams are that baseball realization and his team of scouts in 2002 when they met to discuss the draft, which is the industrywide of recruiting process the new high schools and talent from was a young colleges. Also present DePodesta, graduate, Paul Harvard dis- Paul with his laptop computer. trusted irrationality in human affairs that huge opportunitiesand believed irra- open to those who resisted were base- played had never He tionality. that picking talent might be more ball, but he believed Street. Wall than picking stocks on interesting 50 guys and we celebrate if two of them make it. In what celebrate if two of them make it. In 50 guys and we other business is two for 50 a success? whether college performance translated into a successful assessments of potential Intuitive career. professional one has to wonder how many other businesses could one has to wonder how make the calculation.) even BEST 03

content best business books 43 content best business books 44 s ’ t be ’ Billy sees Billy t need the ” ’ the Oakland — When I started writ- “ Creative Mind profile (Fall 2003). (Fall Mind Creative profile t need the money, and now the money, t need ’ strategy+business ([email protected]) ([email protected]) is a of fellow the London The Elephant and the Flea: Reflections of a Reluctant t adopt his methods even though he has been though even t adopt his methods ’ (Harvard Business School Press, 2002). Mr. Handy was the Business 2002). School (Harvard Mr. Press, + Why, however, one wonders toward the end of the the end toward one wonders however, Why, That sounds all too familiar to anyone who has That sounds all too familiar to anyone for the for enjoyment, The book can also be read s. ’ because Billy feels certain that most of the rest of base- feels certain most of the rest that because Billy ball won changes his mind. He doesn He his mind. changes his true he doesn that everyone value, knows job either. He goes back to his real love love to his real goes back He job either. A be to let his methods agree Beane Billy book, would Lewis says it Michael for all to imitate? here publicized proved right. As Bill James wrote in the preface to his in the preface wrote James right. As Bill proved sabermetrics, first published set of thing to do that X was a stupid ing I thought if I proved doing X. I was wrong. that people would stop the sportworld, self-populating, run as a closed old by insist on doing things the way they baseball men who done. always been have as does the tried to make changes in his or her company, new of the old scouts to contemplate ways of reluctance subjective most organizations, too, doing things. In still play a large part and in recruitment impressions be a set of metrics somewhere there assessment. Might us a better way of measuring human per- that could give subtler messages, too, in this base- are There formance? the but only if they are valuable, are ball tale: Numbers of an industryright numbers; the traditional wisdom is the may not always give often just hokum; the market money discovered, as Billy right signals; and, finally, of everything.may not be the final measure Baseball famil- but the parallels to more may be a law unto itself, every from leap out at you chapter of iar worlds of work the story. the thrill of the character studies, the small dramas, and why learning can is, after all, no reason There chase. fun. Charles Handy Charles Business Business School and an author of many books about management. His latest is subject of a recent Capitalist ” —

” t bottles s make for ’ ’ s had a coach, Ron ’ s a discomfort there, ’ Billy never lets it affect never Billy “ t, and Billy could be ruth- t, and Billy ’ there “ It occurs to Billy at that Billy occurs to It ” s why he trades them so well. ’ s when Paul looks up from his computer and his computer from looks up s when Paul s the only player in the historys the only player of the SEC with ’ ’ He “ s computer, stuffed with detailed records of all the with detailed records stuffed s computer, re human beings. Yes, Yes, human beings. re But some of them weren But That The season ends in a mixture of bad news and good. The season ends in a mixture And sometimes he does so spontaneously, which And sometimes he does so spontaneously, ’ ’ s. Billy has just negotiated a trade in which he acquires s. Billy ’ The selection methods of the Oakland A of the Oakland The selection methods new stories as the recruits, human interest some great a and selection by their recognition often astonished by Although getting the begin to play. major league club, of requirement right people to begin with is the first getting them to team building, the next, of course, is A the Oakland Fortunately play well. was a gift for making players whose secret Washington, of the new Many want to be better than they were. as good as had to be persuaded that they were recruits the statistics suggested they could be. traded up were measure who did not Those players less. with old As to keep. too valuable were for others. Some of one of the wine, it is sometimes sensible to dispose ones, and let not-so-good three to acquire best in order the other hand, these aren On them mature. they A Gifted Team A Builder Gifted Team older scouts as the Oakland group decides to make an to make decides group the Oakland scouts as older the bot- makes who barely Brown, to Jeremy early offer the is too fat and too slow, scouting lists. He tom of the destined for best, one of the rabble and, at say, scouts all clubs. minor league comments Michael Lewis, but comments Michael That what he does. says: the new all metrics, the team loses to the Despite accepts a job but Billy in the playoffs, Twins Minnesota for a guaranteed $12.5 Sox the Boston Red offer from been has ever the most anyone years, five million over The next morning he paid to run a baseball team. a Cleveland player named Ricardo Rincon. Billy leads Rincon. Billy Ricardo named player a Cleveland into the clubhouse and tells him to take off his Ricardo uniform and put on the new one. Cleveland Oakland (The staff has just finished steaming his name onto the back). can be confusing for those involved. There is one scene There can be confusing for those involved. playing the Oakland are Indians in which the Cleveland A 300 hits and 200 walks. 300 hits and 200 games played at colleges across the country, can give him can give the country, at colleges across games played he needs. all the information moment that he could dispense with scouts altogether. moment that he could Paul

su 33 issue strategy+business Wheels for the World: Henry Ford, Henry World: Wheels for the Ford ost corporate histories and biographies of unsatisfying corporate chieftains are is that their authors — reason books. One to usually journalists — often have Douglas Brinkley’s Brinkley’s Douglas Lately? Have You Read Have You ABOUT by Rob Norton research and write in a hurry limited access to research and have Another is that the stories and records. company sources of most companies and business leaders simply aren’t sev- over interest compelling enough to sustain a reader’s pages. A tech merger gone awry?eral hundred A catfight and fall of an The rise at a publishing conglomerate? forgotten dot-com? All that most people will ever already about most such stories will fit pretty want to know to 10 pages of a magazine article.neatly within the five M

BUSINESS HISTORY

content best business books 45 content best business books 46 till ( and

with BOOKS — ” s advertis- ’ Wheels for the

” s limbs, the sick- ’ Fun, Fun, Fun Fun, Fun, s 1978 description ’ BEST 03 Wheels for the World. Wheels for the ) was based on a true) was based s mammoth River Rouge s mammoth River An industrial slum ’ “ ” tells, in similarly interesting pale as a giant s success, noting that the song, s success, ’ s role in the world wars, the com- s role — ’ 1964 hit record hit record 1964 ’ porous smoke rising heavy and lead- smoke porous World ways, the stories of American industry ing-of-age of the trade union move- along the way. Writing about the Writing along the way. backlash in the 1970s environmental that turned many Americans against the automakers, he quotes novelist Oates Carol Joyce of Ford plant: “ en ly air heaving in gusts, sulfuric blooms whipping in the wind. s success was far from certains success was far from in 1903. Ford ’ s love affair with the automobile, as it moves affair s love has done more to enshrine the Thunderbird to enshrine the more has done ’ “ The story of Ford Motor and its creator is woven is and its creator Motor The story of Ford Henry Ford Third Strike Third and all a business story, is above the storyBut of Ford Richest of all is the astounding rise tells it well. Brinkley its formation in 1903 to its commanding from of Ford to which place in American industry later, 20 years nearly half of devotes Brinkley ment, and the rise and demise of the city of Detroit. of Detroit. ment, and the rise and demise of the city her daddy takes the T-Bird away T-Bird takes the her daddy incident. Brinkley tosses out that fact in a passage tosses out that Brinkley incident. T-Bird the explaining baby tens of millions of in the minds of imprinted boomers, Motor in automobile history than all of Ford ing campaigns combined. storytightly into the larger of America in the 20th cen- in is good at illuminating the patterns and Brinkley tury, book is, in part,history a social His this larger tapestry. of America the countryfrom from to the city to the suburbs, and as quotes authors He family. the buggy to the three-car Wharton, Louis- Edith Tarkington, as Booth varied Leonard and Elmore Kerouac, Celine, Jack Ferdinand that the Beach Boys Beach that the was building them at a rate of 1913. In by 200,000 per year had already started and folded two auto companies, and had already no gift for management, much less for had shown building. Competitors such as Cadillac, empire established well already were and Packard Oldsmobile, had 1911, Ford by Yet cars. and successfully producing built a quarter of all the cars sold in the world s ’ t know ’ Wheels for the Wheels for Road & Track. & Road to tell the story of (Morrow, 1986). (Morrow, — — and his first attempt at his- his first attempt at Ford: The Men and the The Men Ford: t seem to be advancing ’ — s exhaustive three-volume s exhaustive ’ s worth asking what Brinkley ’ could support is unlikely to impart much new — The Reckoning Car & Driver Car Wheels for the World Wheels for the s much-admired s much-admired ’ s (764 pages) can tell it ’ s superb ’ (Little, Brown & Co., 1986), and David & Co., (Little, Brown and had free rein to rummage the Ford through rein and had free published by Scribner between 1954 and 1963; Scribner between published by Given that legacy, it that legacy, Given Ford Motor is also an exception is also an Motor Ford a company whose history is so rich Robert Lacey Robert Halberstam and fascinating that even a fat tome and fascinating that even like Brinkley of the dramatic only in part. Many that claim but a chap- episodes at Ford ter or two in — Wheels for the World Wheels for the Ford, His Company, and a Century of Progress, 1903-2003 Century and a Progress, of Company, His histo- A noted is an exception. 2003) (Viking Penguin, for American Center of the Eisenhower rian (director and prolific Orleans) of New at the University Studies edit- or coauthored, books written, previous writer (14 on working six years spent ed), Brinkley Motor Company archives. Better still, he is both a Ford Better Company archives. Motor Toledo, in the suburbs of As a boy nut and a car nut. field trips to the Ford made annual Brinkley Ohio, be- He 55 miles away. Mich., in Dearborn, Museum who had been Henry Ford dealer, friended a local Ford a school and wrote Depression, chauffeur during the paper about their relationship he read while pursuing his academic studies, And tory. but also enthu- not only everything he could about Ford, siast magazines like information. The book doesn brand-new theories about the company and the man, to marshal his vast how knows Brinkley But either. to and pop culture to use literature material, and how the most bleary-eyed make the story Even come alive. history of automotive devotee doesn probably Machine Machine from the Shakespearean fights for con- the Shakespearean from of the company to its wars with trol Japanese, the the U.S. government, Motors and General books of their own, and in many cases books of their own, is on Ford The literature they have. as wide and deep as Lake already including such notable Michigan, contributions as Allan Nevins World brings to the party. The answer is that he does exceed- The answer brings to the party. at what he set out to do ingly well Henry Ford and his company in a single, reader-friend- Henry Ford literature, steeped in the Ford anyone For ly volume.

su 33 issue strategy+business + at The where where — compa- The Web We look We “ “ , and used it Fortune, The Protocols of The Protocols s up to the job. s up to the job. ’ s most unattractive ’ s secret police), which s secret ’ t written for managers ’ isn Brinkley notes that Ford repu- notes that Ford Brinkley ” s a pleasure to read, consistently to read, s a pleasure Dearborn Independent ’ promises that he promises (composed, Brinkley notes, between notes, (composed, Brinkley Among its admirers was Adolf Hitler, was Adolf Among its admirers (Financial Times Hall, Prentice 2001). the importance the imperative of vision, (Financial Times Hall, Prentice 2001) and — The good news is that something about ([email protected]) is a writer, editor, freelance and ([email protected]) ” s nary a buzzword to be found. But lessons s nary to be found. But a buzzword ’ as well as for other would-be authors of as well s centennial in 2008. He has set a high bar for him- s centennial in 2008. He ’ Wheels for the World Wheels for the What Brinkley has accomplished is a rare feat: a has accomplished is a rare What Brinkley — the Elders of Zion the Elders International Jew. International Wheels for the World Wheels for the Henry Ford’s Ugliest Wart Henry Ford’s Ford with deals squarely Brinkley who told an American journalist in 1923 that who told an American journalist in 1923 fascist of the growing as the leader Ford to Heinrich in America. movement son and late in life, and that his diated his anti-Semitism later did much to atone for it. grandchildren to reprint, over 93 weeks, an edited-for-Americans ver- 93 weeks, over to reprint, tract anti-Semitic sion of the notorious 1894 and 1905 by Imperial Russia Imperial 1894 and 1905 by dying, at age 49, of a rare stomach ailment. And for all ailment. stomach of a rare at age 49, dying, in raising employee championed Ford the advancements both the (including hours worked pay and decreasing also ordered he week), day and the 40-hour eight-hour violent and sometimes underhanded or countenanced activities. anti-union least not specifically for managers. There are no organi- are There least not specifically for managers. statements, case studies, or financial zation charts, boxed and there and strategy will suggest about management, leadership, who brings to the book a business anyone to themselves background prices, the need for having the to cut costs and control time, the dis- right leader in the right place at the right for strategy fails to allow asters that can occur when your a change in the world situation. company history that ny books. trait of all: his vicious anti-Semitism. After running After anti-Semitism. trait of all: his vicious bought in 1918, Ford U.S. Senate unsuccessfully for the the a local newspaper, he forced Ford dealers to distribute, and later published dealers to Ford he forced widely in book form under the title and circulated insightful, and informative on several levels. His next His levels. on several insightful, and informative on is an equally ambitious companion volume project scheduled to be published at the com- Motors, General pany self consultant in New York. A editor consultant in of former executive New York. he worked for 15 years, Mr. Norton was he also worked for of 15 director knowledge years, Mr. at development Nua Ltd., an Irish firm, software and is coauthor of Rob Norton Content Critical Content Style Guide giddy — concludes even crim- even ” Wheels of the Wheels for the — with the compa- — He got it. He many times in subse- ”

millionth Model T rolled Model millionth ” — the second year in a row in in a row the second year 10 — also takes a hard look at Henry also takes a hard 1921, the 5 millionth Model T Model the 5 millionth 1921, 1924, By was manufactured. is that something about Bill Ford is that something about Bill efforts to fix it were squelched in efforts to fix it were “ ’ as the warts and all. — “ s up to the job. ’ capped by his failure to visit as his son lay his failure capped by

BOOKS —

is unblinking in examining some of the com- is unblinking in examining some of behavior in designing and selling the Pinto in the behavior in designing and selling the Pinto concludes in 2002 s dark days, such as its irresponsible such as its irresponsible days, s dark s archives. To his credit, he said he wanted this cen- his credit, To s archives. ’ ’ Wheels for the World Wheels for the That triumphant ascent to the zenith of American of zenith ascent to the That triumphant Bill Ford Jr. gave Brinkley broad access to the com- broad Brinkley gave Jr. Ford Bill —

The good news for Ford Motor Company, Motor The good news for Ford order to save money, and at least 59 people, possibly money, to save order burned to death as a result. many more, inal had a basic design shows, Brinkley The car, early 1970s. that made it liable aware, were of which executives flaw, collision. a mild rear-end to explode in flames in even took precedence The flaw originated because styling safety; engineers over quent decades, right up to the present day. day. up to the present quent decades, right Ford himself. Much about Ford was admirable. The rea- was admirable. about Ford Much himself. Ford tells it, sons he succeeded against long odds, as Brinkley the automobile as a his single-minded vision of were simple, and durable machine that could be sold cheap, quantities, his fanatical determination to reduce in vast costs and cut prices, his knack for envisioning and con- and his abil- figuring efficient manufacturing processes, engineers, brilliant architects, ity to attract and motivate ugly ones. Brinkley the warts are and businessmen. But was a liar and a hypocrite who demonstrates that Ford and partners,cheated some of his initial investors and through- he tormented his only child, Edsel, how shows out his life World Fords accounted for nearly 60 percent of all automobiles 60 percent accounted for nearly Fords U.S. made in the pany ny trying its global operations restructure to massively CEO since Jr., Clay Ford William of under the direction of the company founder. late 2001 and great-grandson “ who interviewed the new times several CEO Brinkley, span, a five-year over he promises Jr. which Ford had posted large losses had posted large which Ford industry was followed by a plunge in the mid-1920s that a plunge industry by was followed out of business, as it missed nearly put the company was quick to opportunities Motors market that General that pattern repeated has Motor exploit. Ford off the assembly line. off the assembly sudden by followed share, and market rises in profits bankruptcy tailspins toward World tennial story told pany BEST 03

content best business books 47 content best business books 48

by IZATION by by Loren by Fox Loren by Amy Chua by Mimi Swartz with by Niall Ferguson by (Basic Niall Ferguson by Lynne W. Jeter (John W. by Wiley Lynne by Bethany McLean and Peter by Monica (Simon Langley & Fareed Zakaria (W.W. Norton & Company, Zakaria (W.W. Fareed 2003) (John Wiley (John & Wiley Sons, 2003) (Doubleday, (Doubleday, 2002) & Sons, 2003) Sherron Watkins (Doubleday, 2003) Watkins Sherron by Peter Singer (Yale University Press, by Peter Singer (Yale 2002) on How World Fire: Exporting Free Market Democracy Ethnic Breeds Hatred and Global Instability, page Continued on next Stealing Stealing Time: Case, Steve Jerry Levin, and the Collapse of AOL Time Warner, Down the How Walls: Sandy Tearing His to Fought of Way Weill the the Top Financial Then World…and Lost Nearly It All, The Empire: Rise and Demise of the and British Order the World Lessons for Global Power, Illiberal of The Freedom: Future Democracy at Home and Abroad, One The World: Ethics of Globalization, Disconnected: Disconnected: Deceit and Betrayal at WorldCom, The Enron: Rise and Fall, The Inside Failure: Power Story of the Collapse of Enron, The Smartest Guys in The Room: The Amazing Rise and of Fall Scandalous Enron, Alec Klein (Simon & Schuster, 2003) Schuster, Schuster, 2003) Elkind (Portfolio, Elkind 2003) (Portfolio, Books, 2003) GLOBAL SCANDALS by Brian by Jeffrey by Zygmont Jeffrey by Steve by Kemper Steve by Om Malik (John Wiley by Andrew Hargadon by (Harvard Hargadon Andrew BOOKS by Leslie A. (Crown Perlow by Bhaskar Chakravorti (Harvard & Sons, 2003) Cruver (Carroll Cruver & (Carroll Graf, 2002) Business School Press, Business 2003) School Press, Business, Business, 2003) Anatomy Anatomy of The Greed: Unshredded an from Insider, Enron Truth Inside Broadbandits: the $750 Billion Heist, Telecom How Breakthroughs Happen: How The Breakthroughs Surprising About Truth How Companies Innovate, An Microchip: Idea, Its Genesis, and the Revolution It Created, Open Innovation: The New Imperative for and Creating Technology, from Profiting by Business Henry (Harvard Chesbrough 2003) School Press, The of Change: Pace Slow Fast Bringing Innovations to Market in a Connected World, Who Really Who Matters: Really The Group Core Theory of and Privilege, Power, Success, by Art Doubleday, 2003) Kleiner (Currency Code Name Ginger: The Story Behind Segway and Quest Dean to Kamen’s Invent a New World, When You Say Yes But Mean Say No: Yes When How You Conflict Silencing Relationships Wrecks and Can Companies…and Do What You About It, (Harvard Business 2003) School (Harvard Press, (Perseus (Perseus Publishing, 2003) Business School Press, Business 2003) School Press, INNOVATION CORPORATE MENT by by by Clayton by John Micklethwait by Jeremy by Hope Jeremy and by Peter J. Frost by (Harvard Peter J. Frost

by R. Preston by McAfee R. (Princeton Preston by Michael Treacy (Portfolio, 2003) (Portfolio, by Michael Treacy

and Adrian (Modern Wooldridge Library, 2003) Robin Fraser (Harvard Business School Robin (Harvard Fraser 2003) Press, University Press, 2002) University Press, Adrian Slywotzky and Wise Richard with Business Karl Books, (Warner Weber 2003) Business School Press, Business 2003) School Press, Toxic Emotions at How Work: Toxic Compassionate Managers Pain Handle and Conflict, False Prophets: The Prophets: False Gurus Who Created Modern Management and Why Their Ideas Bad Are for Business Today, The Company: A Short History of a Revolutionary Idea, Beyond Beyond Budgeting: How Managers Can the from Annual Free Break Trap, Performance The Innovator’s Solution: and Creating The Innovator’s Growth, Sustaining Successful M. Christensen and Michael E. Raynor Business 2003) School (Harvard Press, How How to When Grow Markets Don’t, Double-Digit Growth: How Growth: Double-Digit Great Companies Achieve It — No Matter What, Competitive Competitive Solutions: The Strategist’s Toolkit, James Hoopes (Perseus Publishing, 2003)

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su 33 issue strategy+business Reprint No. 03408 by James

by John (John Brooks BOOKS by David Halberstam by James Burns MacGregor by James Burnham (John Day by Adolf A. Berle and Gardiner (Alfred A. (Alfred Knopf, 1982) The Machiavellians: of Defenders Freedom, Company, 1943) The Managerial Revolution: What Is Happening in the World, The Modern Corporation and Private Property, C. Publishers, 1991; Means (Transaction Clearing House, Commerce 1932) Once in A Drama of Golconda: True Wall 1920-1938, Street & Wiley Sons, 1999; Harper & Row, 1969) The Reckoning, of Liberty: Vineyard The American Experiment, Burnham (John Day Company, 1941) 1986) (Morrow, BEST INDEX

CAPITAL RECALLED by by by by Peter by Peter Drucker by Larry Bossidy and Ram by James Burns MacGregor by Douglas (Viking Brinkley by Michael Lewis (W.W. by Norton & Michael Lewis (W.W. by Allan Nevins (Scribner, 1954-63) HISTORY Company, 2003) Drucker Drucker (John Day Company, 1942) Michael E. Porter (Free Press, 1998) Michael Press, E. Porter (Free Charan Business, 2002) (Crown Michael Treacy and Fred Wiersema and Fred Michael Treacy (Perseus Publishing, 1995) Ford, The Men Ford: and the Machine, of The Industrial Man, Future When Dilemma: New The Innovator’s Cause Firms Great to Fail, Technologies by Clayton M. Christensen (Harvard Business 1997) School Press, Leadership, The Discipline of Market Leaders: Your Narrow Customers, Choose Your Market, Dominate Focus, Your The End of Economic Man: A Study of the New Totalitarianism, Execution: The Discipline of Getting Things Done, Wheels for the World: Henry Ford, Wheels His for the Henry World: Ford, Company, and a Century of Progress, 1903-2003, Penguin, 2003) for Competitive Strategy: Techniques Industries Analyzing and Competitors, Moneyball: Moneyball: The Art of Winning an Unfair Game, (Harper & Row, 1978) Robert Lacey (Little, Brown Robert & Lacey (Little, Brown Co., 1986) (John Day Company, 1939)

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SHIP by by by Louis V. by Mihaly by Shoshana by James by Po Bronson by Rudolph Giuliani W. and Ken Kurson (Miramax, 2002) Edward E. Edward Lawler III 2003) (Jossey-Bass, What Should I Do with My Life? The True Story of Who the People Answered Ultimate Question, The Support Economy: Why Corporations Individuals Failing Are and the Next Episode of Capitalism, I Don’t Know How She Does It: The Life of Kate Reddy, Mother, Working Allison Pearson (Alfred Allison A. Pearson (Alfred Knopf, 2003) Who Says Can’t Elephants Dance? Inside Historic Turnaround, IBM’s Treat People Right! People How Organizations Treat and Individuals Can Each Propel Other into a Virtuous Spiral of Success, Transforming Leadership: The New Transforming Pursuit of Happiness, by Rakesh Khurana (Princeton University 2002) Press, Leadership, for a Searching Corporate Savior: The Irrational Quest for Charismatic CEOs, Good Business: Leadership, and Flow, the Making of Meaning, Gerstner Jr. (HarperBusiness, 2002) Gerstner Jr. MacGregor Burns MacGregor (Atlantic Monthly 2003) Press, Csikszentmihalyi Csikszentmihalyi (Viking Penguin, 2003) Zuboff and James Maxmin (Viking Penguin, 2002)

(Random House, 2002)

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content best business books 49