25 best business books: 16-20

Background: “What’s special about ‘visionary’ companies–the Disneys, Wal-Marts, and Mercks, companies at the very top of their game that have demonstrated longevity and great brand image?” That is the thesis of this instant business classic, a premise where the authors compared 18 visionary companies versus a control group of average companies.

Takeaway: Business philosophy has many myths. Chief among those is the myth that visionary companies “start with a great product and are pushed into the future by charismatic leaders.” Based on their research, the authors say that having a master plan and flexibility are much more important to the best companies.

Quote:  “Some climbers do indeed die while trying to climb Mount Everest, but only those who fully try to climb Mount Everest (whatever the risk) do in fact ever reach the summit.”

Up next: The Fifth Discipline

17. The Fifth Discipline: The Art and Practice of the Learning Organization (Crown Business, 1990; revised edition, 2005)

By Peter Senge

Background: In Senge’s theory, the organizations that move forward are the “learning organizations.” In Senge’s world, the learning organizations are “ones in which new and expansive patterns of thinking are nurtured, collective aspiration is set free, and people are continually learning how to create results they truly desire.” He makes his thesis by studying companies such as BP, Intel and Ford and organizations like Oxfam and The World Bank.

Takeaway: To become a learning organization, Senge claims that five disciplines must be mastered at all levels of the organization: Personal mastery; Shared vision; Mental models; Team learning; and Systems thinking.

Quote:  “Organizations work the way they do because of how we work, how we think and interact; the changes required ahead are not only in our organizations but in ourselves as well.”

Up next: Blue Ocean Strategy

16. Blue Ocean Strategy: How To Create Uncontested Market Space And Make The Competition Irrelevant (Harvard Business Review Press; February, 2005)

By Renee Mauborgne and W. Chan Kim

Background: In this groundbreaking work, Mauborgne and Kim went against just about every belief held sacred in business circles. Instead of bogging down in the highly competitive “red oceans,” those overcrowded with competitors, the authors argue that companies should look for “untapped market space” and the “opportunity for highly profitable growth.” They say that too many companies spend too much time focusing on new ways to “cut costs and grow revenue by taking away market share from the competition.”

Takeaway: When looking at business opportunities, focus on “value innovation that focuses on utility, price, and cost positions, to create and capture new demand and to focus on the big picture, not the numbers.” 

Quote:  “Red oceans will always matter and will always be a fact of business life. But with supply exceeding demand in more industries, competing for a share in contracting markets, while necessary, will not be sufficient to sustain high performance.”

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