Confronting Reality : Master the New Model for Success

Rating:
Summary: Not much new
Review: I got this book because of their previous book, "Execution". The core idea in "Confronting Reality" is the Business Model, which is, simply put, looking at three factors: External Forces, Internal Capabilities, and Financial Goals, before deciding on how to solve problems and set direction.

The issue is that the book is full of case studies (too many from ex-GE execs - I wonder how wide these guys travel outside their "GE Club") but one idea. The illustrations at the end of every case study are always the same - they don't even go to the trouble of customizing the three factor model to show how Sun is different then Cisco for example - and the point is always the same. This should not have been a book, but instead limited to an HBR article or something like that.

The best part is Bossidy's style of how he interacts with teams and asks good questions....but "Execution" is much better at this.

The title was catchy and Bossidy is a pro at this topic of facing reality and turning around businesses...but he should have either invested more to fill it out or skipped it all together.

Rating:
Summary: Old material well documented with good case studies
Review: In Confronting Reality, Larry Bossidy states the obvious: wishful thinking is dangerous and businesses must carefully assess reality. Bossidy describes various airlines who did not heed warning signals in sufficient time to avert serious consequences. Martin Seligman, Ph.D. alluded to this issue in his classic book "Learned Optimism" at the end of the 80's. He recognizes that when the cost of failure is high, optimism is the wrong strategy. In her reality-based classic book, "Optimal Thinking", Rosalene Glickman, Ph.D. describes the five flaws of positive thinkers, one of which is the tendency to suppress and ignore negativity. Optimal Thinking provides simple roadmaps to face harsh realities and optimize each and every situation. Glickman shows the reader how to interpret negative feedback as an Optimization signal. These books should be mandatory reading at home and in every business.

Rating:
Summary: Clarity in Complexity
Review: In today's world of rapid change fuelled by globalization and competition, business success in the past in no guarantee for success or even existence in the future. Yesterday's innovative products are today's commodities. Industry Clock Speeds are increasing at faster rates thanks to the digital age. Multinationals are relocating manufacturing to low cost locations and realigning their supply chains. Shareholders are impatient for growth in revenues and earnings. This book is a guide to success in such challenging times.

Patterns and frameworks are key to understanding and analysis of problems. The authors present a simple framework consisting of External Realities, Internal processes and Financial Targets as the three interlinked dimensions of their Business Model. Initially this model appears to be too simplistic and common sense approach that does not add much value. As the book progresses into specific case studies on companies in a wide range of industries ( like Cisco, Thomson, Home Depot, 3M, EMC ), the depth of understanding of business issues, attention to detail and the rigor of analysis to build up the ability to propose and execute successful strategies are truly world class. The Business Model as it is named in the book is a tool for reaching clarity in action in the maze and fog of complexity. It is intense, iterative and intuitive , providing a tool that acts as the lens for viewing the business world in the continuous search for opportunities and success.

The distinction between cyclical change and structural change in industry is clearly illustrated. Many business failures are largely due to the inability to recognize this fundamental difference as it happens unannounced and unnoticed. Incumbents refuse to realize this reality. They are used to selective listening from executives who either do not acknowledge or refuse to confront the reality on the ground. Business leaders need to remove this lacuna at all levels and instead encourage and aggregate diverse opinions. A stomach for touch action with inner strength differentiates the winners from the rest. CEOs also need to cure themselves of Quarteritis, and shift gears towards sustainable long term financial targets rather than short term symptomatic remedies.

A rare combination of Business Strategy and Leadership in one book. Embrace this book and confront reality.

Rating:
Summary: Solid, pragmatic, but not as good as "Execution"
Review: The strength of this book, like the earlier "Execution", is its solid basis in pragmatic fundamentals of business, and actionable recommendations. Though not as impactful as the predecessor, this focus of fundamentals helps to make it timeless, and sets it above most of its trendy business book-of-the week peers.

Hindsight is, of course, 20-20, so it easy to point out the failures in the past. Objectively looking forward to future danger zones, is much more difficult. This books offers a three-point framework, or "business model" to help executives analyze their business and confront reality.

Though this book is a quick read, this three-pointed model is helpful for many businesses. My biggest complaint about the book, and the authors, is the focus on the largest of businesses. For those of us involved in small businesses, some of the same principles hold, but other's don't. A similar book focused more on the needs of smaller businesses would be a very interesting read.

Rating:
Summary: Buy their bestseller EXECUTION instead
Review: There are many good and new things in this book. Unfortunately, the good things aren't new, and the new things aren't good.

I have reviewed Charan and Bossidy's book on EXECUTION as well as Charan's book on PROFITABLE GROWTH. Both were great readings that asked us to confront reality in order to do what matters to get things right.

I've just read CONFRONTING REALITY. And I cannot help asking myself, why it was published at all? It doesn't add any new material compared to their marvellous bestseller; Execution. Instead this book spends most of its time telling case stories on the subject. I find too many of them too long and too boring.

The authors' new focus on the vague concept of the business model is still a mystery to me. Why not build on strong concepts such as McKinsey's business system or Porter's value chain with proven track records. Please, confront reality!

My advice is that you buy Execution instead. It's much better. It has a clear concept, a stronger structure - and exactly the same highly important messages.

If you're a hardcore fan - like I am - of Charan and Bossidy's execution concept, you may just want to have this as an audio book for a long highway trip... that's how I managed to get through it.

Peter Leerskov,
MSc in International Business (Marketing & Management) and Graduate Diploma in E-business

Rating:
Summary: Not Bad, But Not Outstanding Either
Review: There are not many new or striking ideas in this book. Very common sensical when it comes to the Business Model-building suggested in the book.

Actually the Business Model-building suggested in the book does not provide a complete paradigm. Many essential elements for Business Model-building such as Product & Service Strategy, Value Proposition, Pricing Strategy, and Corporate Culture Building, etc. have been left out.

I suggest reading "The Art of the Start"---even more practical. This book draws upon too many cases from biggies like Dell, Walmart, Amazon, and the like, by which they are successful only at this point in time, not forever!

Rating:
Summary: Buy the 2 Books Together!!
Review: This book has a lot of good case studies. The authors argue about the importance of execution in the first book and now the focus is back to the importance of strategy. Its like going a full 180 degree of choosing what you do is more critical than how you do it , wheras the previous book talked about executing well and with discipline. I like this book better because this personally rings true with me more, I have always believed the key to win is to pick what you do first(markets, players, products,services etc) and then execute it per the principles of the book on execution. All in all these 2 books go hand in hand and I would advise readers to read the Confronting Reality book before Execution. As always Ram and Larry have done a superb job of capturing their experiences.

Rating:
Summary: Confronting Reality
Review: This book was an insight to my life. It really put you into perspective of what matters. I reccomened this book to anyone if you're interested in management, leadership of just for fun.