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Confronting Reality: Doing What Matters to Get Things Right
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Sales rank 47,631
Customers rating (based on 28 reviews)
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Confronting Reality will change the way you think about and run your business. It is the first book that shows how to connect the big picture of the new era of business with the nitty-gritty of what to do about it. Through a completely new way to understand and use the business model as the primary tool for confronting reality—a breakthrough that will become the management innovation of this decade—you’ll know sooner rather than later whether your fundamental business premise is under assault, where your best opportunities lie, what you should change and what you should leave alone, and how to realistically plan the future of your business.The fundamentals of how a business makes money are being rapidly and permanently altered by sweeping structural changes. With their extraordinary depth and breadth of experience, Larry Bossidy and Ram Charan are the ideal guides for everyone—entrepreneur, mid-level manager, or CEO—about what is to be done so you can get things right in this challenging, radically changed world. They start by showing you how to understand the most fundamental element of any business: whether you can realistically make the money you hope to in the game you’re playing. Bossidy and Charan show how to use the business model to develop a robust, reality-based process for thinking about the speci?cs of your business in a holistic way. They show how to tie together the financial targets you must meet, the external realities you face, and internal activities such as strategy development, operating tactics, and selection and development of people.Through the lens of the business model, as well as the skillful use of initiatives and development of people with the right leadership characteristics, you’ll see how Robert Nardelli at Home Depot, Jim McNerney at 3M, Dick Harrington at the Thomson Corporation, Michael Wisbrun at KLM, Joseph Tucci at EMC, and John Chambers at Cisco confronted reality. Whether they faced crisis or opportunity, all made the right kinds of changes through a combination of business savvy (the art of understanding the fundamentals driving a business) and business model thinking.
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| Publisher | Crown Business | | Release date | 10/2004 | | Availability | Usually ships in 24 hours | | Edition | Hardcover |
| | List price | $27.5 | | Our price | $18.15 (you save 34.00%) | | Used price | from $0.01 |
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 Play Where the Puck Is Going to Be
"Avoiding reality is a basic and ubiquitous human tendency," write Larry Bossidy and Ram Charan. Leaders often tilt that way also and lack the discipline to confront reality. They comment, "Exercising the power of realism requires an open and inquisitive mind, intense curiosity, the intellectual ability to sort out complexity, the ability to persuade others, and--undergirding it all--the courage of inner strength. People who lack these qualities can't be considered leaders. They should look for other work." Yikes!
This is no quick-read novelette with three points and a poem. It's a thinking person's serious book with an innovative business model as the reward for your reading diligence. When programs, products and services all start to look alike (cell phones, music, churches, hamburgers, conferences, airlines, eNewsletters, etc.) the authors quote IBM's CEO with this warning, "Either you innovate or you're in commodity hell."
Why do leaders fail to confront reality and change? There are six habits of highly unrealistic leaders, suggest Bossidy and Charan: 1) Filtered information, 2) Selective hearing, 3) Wishful thinking, 4) Fear, 5) Emotional overinvestment and 6) Unrealistic expectations of capital markets.
How can you anticipate change before it's too late? The authors reference hockey great Wayne Gretsky's famous answer, "A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be."
 Strategic solutions for a familiar problem
Authors Larry Bossidy and Ram Charan start with what you know: the business world has dramatically, irrevocably changed. Companies confront the new reality of globalization, free capital flows and powerhouse retailers. The book's strength lies in its relentless insistence on a basic fact that business leaders know but have apparently been trying to deny: you must see the economic world as it really is. This is not new. You know the ground has shifted, but have you figured out everything that you need to do now? Most of today's business models describe how companies made money in the past - but survival now requires more than a model based on the old economy. You need that elusive, intuitive attribute Bossidy and Charan call "business savvy." Even if they can't quite seem to nail down a precise definition, their case studies illustrate how this super sense works, and why you need it. We recommend their book to managers and executives who want to learn how to rethink their businesses in today's environment.
Confronting Reality : Doing What Matters to Get Things Right
Clearly a reality check around the problems we all face as our customers and shareholders expectations are changing. In reviewing three major telecom institutions, Larry reminds us of the fundementals of we are in business. It's a good model for use when we're looking in the mirror at our own situation.
Definately worth the investment to read.
Look! A FOREST!!!
Instead of peicemealing a business to death: strategy, marketing, finance, etc. Bossidy and Charan give us a view of a whole business, from the chair of the savvy Entrepreneur or that of the CEO. They show hot to fit all the peices of a business together.
Bossidy and Charan use well-known examples and analyze the pitfalls and successes of these examples (Home Depot, Walmart, Thompson) according to a three-part business model: external environment, internal operations and financial targets. They also show you how to integrate by juggling the three simultaneously!
This was a great introductory book to orient businesspersons of any trade, level and experience to the whole shebang of business.
But. . .
Truthfully, i have read this 'business model' stuff before, with more depth and more analysis. I read the book "The Escher Cycle" by F. Jackson a couple of years back. That book goes into much more detail about most of Bossidy and Charan's three-part business model. Couple that book with "Value Migration" and you'll have a much better handle on the hurly-burly world of business.
Excellent Business Book!
Confronting Reality" is a gold-mine of perspective on how to get an organization properly focused - starting by confronting reality. It belongs on the bookshelf of every manager with bottom-line responsibility.
Bossidy begins by stating that any plan for a business has to answer three questions: 1)What's the nature of the game we're in? 2)Where is it going? 3)How do we make money in it? Incredibly, says Bossidy, in many organizations they rarely get asked, much less adequately answered.
Strategic plans of most companies don't work. A key reason is that little time, if any, is spent harmonizing the facts of the external environment, the financial targets that are set, and the internal capabilities of the business. People with a well-developed sense of business savvy seldom have a strategy ahead of time - instead, they devise their strategies as a means of meeting financial targets, not the other way around.
Buyers have much greater power today than in past years. Globalization + overcapacity (in many business lines) have shifted power to large buyers and intermediaries (Wal-Mart).
Questions that help detail the answers to the first three include: 1)Is the how of making money in my business and industry changing? 2)Who is winning in my industry, who is not, and why? 3)How, specifically, are the winners making money? 4)If my business is a winner, what do I need to do to stay on top? Conversely, if I need to change my game, what specifically should I be doing? 5)Am I in a growth industry or not? If not, and I want to continue, how do I change it or play it better than the competition? 6)Is my organization moving quickly to spot and take advantage of growth opportunities generated by these changes? 7)How do major customers see my products? 8)Am I bound by legacy costs (eg. pensions, healthcare) that make competing difficult?
Bossidy then identifies behaviors as common causes of failure to confront reality. (President Bush needs to read this section VERY CAREFULLY.) 1)Filtered Information: Possibly due to getting information only from those with the same point of view - typically in organizations looking at the world from the inside out rather than outside in. 2)Selective Hearing: The most common reasons are preconceived notions or the arrogance of past success. 3)Wishful Thinking: The merger will succeed because we need it to work (or have the best people on it). 4)Fear: Some tyrants fire people for disagreeing with them; more common is a situation where companies force-rank executives and use "attitude" as one of the criteria.
Summarizing - a well thought-out framework for realistic planning is provided by a highly credible former top executive.
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