Features
- Cover Type: Hard Cover with 336 pages
- Published by: Harvard Business School Press; Rev Upd edition October 2002
- Written in: English
- ISBN 10 Number: 1591391466
- ISBN 13 Number: 978-1591391463
-
Book Dimensions:
9.2 x 6.2 x 1.4 inches
- Weighs: 1.4 pounds
Product Review
So much for the old economy, new economy divide. According to Gary Hamel, the professor-turned-strategy-guru author of
Leading the Revolution, complacent establishment giants and one-strategy start-ups are on the same side of the fence--the wrong side. Corporate complacency and single-strategy business plans leave no room for what Hamel describes as the key to thriving in today's world of business: a deeply embedded capability for continual, radical innovation.
Leading the Revolution is not a calm analysis of what will or will not work in a post-industrial world. Instead, it's an impassioned call for revolutionary activists to shake the foundations of their companies' beliefs and move from a linear age of getting better, smarter, and faster, to a nonlinear age of becoming
different. While in the past incremental improvements in products and services were accepted as good enough, Hamel shows that true innovation is the demolition and re-creation of an entire business concept. He blows apart the popular myth that innovation lies solely in the hands of dot.com dynamos like AOL and Amazon by scrutinizing the examples of such "gray-haired revolutionaries" as Enron and Charles Schwab, companies that have managed to reinvent both themselves and their entire industries, time and again.
After an in-depth examination of what business-concept innovation involves (for starters, it's "based on
avoidance, not
attack"), Hamel goes on to motivate his readers to see their own revolutionary future, and train them in the art of being an activist. As he puts it in various headings, be a novelty addict, be a heretic, know what's
not changing, surface the dogmas. And then get out there and transform your ideas into reality. Not simply a round-up call, Hamel's book provides would-be activists with an intelligent, comprehensive plan of action. He illustrates each imperative with examples of real-life corporate rebels, such as John Patrick and David Grossman at IBM, Ken Kutaragi at Sony, and Georges Dupont-Roc at Shell. His message is the same to "old" and "new" companies alike: "Industry revolutionaries are like a missile up the tail pipe. Boom! You're irrelevant!" So join the revolution and avoid the explosion.
Hamel writes in a clear and compelling voice, preaching with passion but supporting what he says with detailed, experiential evidence. Each chapter is packed with probing questions and inspirational examples that aim to dig through the apathetic corners of your mind and throw hand grenades into any creative synapses still slumbering. Even the alternative (read innovative) design of
Leading the Revolution will jolt you into a new level of awareness and imagination. Indeed, the only problem you might have with this book is an increasing desire to put it down before the end, get out there into the wild world of the activist, and start living the revolution.
--S. Ketchum
--This text refers to an out of print or unavailable edition of this title.
From Publishers Weekly
Hamel's first edition of this volume, published in 2000, urged managers help lead a business revolution by embracing change-developing e-commerce, participating in joint ventures and engaging in selective cooperation. Centuries of incremental progress have given way to a time of revolution, Hamel argued, and companies must change or die. His revised version keeps the focus on far-reaching innovation-imagine the kind of future you want for your company, Hamel urges, and then go out and create it-but he makes sure to dismiss the "helium" of the dot-com bubble and focus on meaningful business change. He highlights Cemex, the third largest cement company in the world, as proof that "new attitudes and new values can change an old industry"; UPS, too, gets the nod as another "gray-haired revolutionary." (Unsurprisingly, Hamel's positive Enron profile from the earlier edition gets the axe.) Hamel's presentation is powerful and his core argument that corporate leaders must be more entrepreneurial remains convincing; the worst that can be said about this volume is that, by rehashing his earlier writings, Hamel may not be fully following his own advice.
Copyright 2002 Reed Business Information, Inc.
Reader Reviews
This review is from: Leading the Revolution (Hardcover)
"This is a book about innovation-not in the usual sense of new products and new technologies, but in the sense of radical new business models. It begins by laying out the revolutionary imperative: we've reached the end of incrementalism, and only those companies that are capable of creating industry revolutions will prosper in the new economy. It then provides a detailed blue print of what you can do to get the revolution started in your own company. Finally, it describes in detail an agenda for making innovation as ubiquitous a capability as quality or customer service. Indeed, my central argument is that radical innovation is the competitive advantage for the new millennium"(from the Preface). Within this general framework, in Chapter 3, Gary Hamel writes, "In the new economy, the unit of analysis for innovation is not a product or a technology-it's a business concept...I doubt you can find a dozen individuals in your company who share a common definition of your company's existing business concept. How could they if they can't even identify the elements of a business concept? Though consultants talk incessantly about 'business models,' I've never met one who has a coherent definition of what a business model actually is. It's hard to invent a new business concept if you can't agree on its components...To be an industry revolutionary, you must develop an instinctive capacity to think about business models in their entirety." Then, Hamel describes his business concept that comprises four major components and several subcomponents: I- Core Strategy: It is the essence of how the firm chooses to compete. 1. Business Mission: This captures the overall 'objective' of the strategy-what the business model is designed to accomplish or deliver. 2. Product / Market Scope: This captures the essence of 'where' the firm competes-which customers, which geographies, and what product segments-and where, by implication, it doesn't compete. 3. Basis for Differentiation: This captures the essence of 'how' the firm competes and, in particular, how it competes 'differently' than its competitors. II- Strategic Resources: These are unique firm-specific resources. 1. Core Competencies: This is what the firm 'knows.' (skills and unique capabilities) 2. Strategis Assets: They are what the firm owns such as brands, patents, infrastructure, proprietary standards, customer data, and anything else that is both rare and valuable. 3. Core Processes: This is what people in the firm actually 'do.' (activities) III- Customer Interface 1. Fulfillment and Support: This refers to the way the firm 'goes to market,' how it actually 'reaches' customers-which channels it uses, what kind of customer support it offers, and what level of service it provides. 2. Information and Insight: This refers to all the knowledge that is collected from and utilized on behalf of customers. 3. Relationship Dynamics: This refers to the nature of the 'interaction' between the producer and the customer. 4. Pricing Structure: This refers to the price choices depending on the traditions of your industry. IV- Value Network: It surrounds the firm, and which complements and amlifies the firm's own resources. 1. Suppliers 2. Partners 3. Coalitions On the other hand, according to Hamel these four major components are linked together by three 'bridge' components: 1. Configuration: Intermediating between a company's core strategy and its strategic resources is first bridge component. 2. Customer Benefits: Intermediating between the core strategy and the customer interface is second bridge component. 3. Company Boundaries: Intermediating between a company's strategic resources and its value network is third bridge component. More detailed discussion of these business concepts briefly mentioned/summarized above and the other unique ones, I highly recommend this invaluable study.
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