I always worry when teachers or authors tell their students or readers that their lecture or book carries the magic potion of success.
It implies that everyone who follows will win, and therefore, no student or company can fail and we will have an Utopian world full of successes. But that’s far from the truth. Beyond the Familiar starts like that and I started reading it with some trepidation. But that apart, it is a readable book and it does drive home truths and workable management principles.
A disturbing fact that only 1% of 6,000 large public companies sustained profitable growth over the full 15 years between 1990 and 2004 and only 24% over any five consecutive years, sets the tone of the book. The authors then go on to show with real examples how most companies that mouth the obvious sound principles of management rarely follow or execute. The principles of an “open organisation, relevant customer performance, customer trust, continuous improvement and innovating beyond the familiar” are generally ignored, resulting in dire consequences. How Nokia won by being an open organisation, but lost its global position by not innovating; P&G’s remarkable success story through close contact with its consumers; Infosys’ growth through its clarity of vision; and GE’s investment in adjacent innovation are some examples of success exemplified in the book.
What I found interesting was the fact that to be successful, you do not always need to be the “first” in path-breaking innovation or have the “best” product. In many cases, being a great “follower” and offering “consistency” resulted in sustained growth. Indian examples that come to mind as great followers are Nirma, Ghari Detergent, etc, and the Kwality restaurant chain for consistency of quality. The authors offer examples of Apple and P&G being fast followers. They also emphasise that it is important to deal with customer dissatisfaction rather than mere customer delight. A subtle but critical difference. The use of research and social media is a must.
The book is repetitive in parts but its essence is that apart from trying to deliver a big idea, it is as important to resort to incremental innovations and win consumer trust. Above all, openness for constant improvement and not becoming complacent when you’re a leader, are key to sustained success. The CEO’s role is vital to ensure this.
The book is worth a read. All you have to hope is that your competitors do not read or follow it, so that we have a real world where some succeed and others fail.
