Customer Reviews

FedEx Delivers: How the World's Leading Shipping Company Keeps Innovating and Outperforming the Competition

5 star:		(2)
4 star:		(5)
3 star:		(1)
2 star:		(0)
1 star:		(3)

 

 

Fred Smith and FedEx overcame incredible obstacles in the company's start-up, and cannot be congratulated enough for doing so. In addition, it went on to become the first service company to win the prestigious Baldrige Quality Award in 1990. However, Birla's "FedEx Delivers" does neither readers nor FedEx any service by its incomplete and simplistic coverage.

Birla's book emphasizes a quasi-Baldrige/human-relations perspective. However, my research showed that maintaining an important competitive advantage and low costs are far more important to organizational success. Birla does not address these aspects. (This conclusion is reinforced by several Baldrige Award winners subsequently encountering severe financial downturns after winning the award - even bankruptcy.)

The second major problem with the book is that it does not cover FedEx's series of acquisitions since successful startup. These include Viking Freight, Watkins LTL Express, Roadway Package Express, Flying Tigers, and Kinkos. Again, FedEx has done a great job of building these existing businesses, but Birla tells us none of it - important since so many acquisitions fail. Neither does he address the resulting incursion of substantive competitive disadvantages. (One obvious issue is substantial route and facility overlap between various divisions - this becomes increasingly untenable as fuel prices increase.)

Finally, my experience (FedEx Ground) is that FedEx has NOT tried to substantially change the human-relations environment in these companies - even though they may seriously contradict Birla's summary of the original Baldrige-winning FedEx.

For example, FedEx Ground drivers are not company employees - rather hired by thousands of truck-owners contracting with FedEx, and labeled "independent contractors." If you're an independent contractor, neither the company nor the truck owner pays state workers compensation or federal unemployment and disability taxes. They are also released from matching workers 7.65% Social Security and Medicare taxes; an independent contractor pays the full 15.3% load. This creates great inconsistencies in work environment and pay. Almost all the FedEx Ground drivers and all the owner-operators receive no benefits and are paid far less than their UPS counterparts. (My sense is that FedEx is turning Watkins LTL into a similar situation, while reducing pay, increasing non-productive wait-times, and eliminating benefits at the same time - despite having been ruled in violation of IRS regulations and subjected to assessments estimated to eventually total $1 billion!)

Another issue is that because the over-the-road truck owners have invested considerable time and equity in their trucks and routes, FedEx has been unable to take advantage of much-more fuel-efficient piggy-back rail service - without buying out truck owners at considerable expense, which it has chosen not to do. (UPS uses considerable piggy-back rail service.)

Still another problem arising out of its acquisitions and new start-ups is that FedEx has duplicating routes - FedEx Express (its air arm), FedEx Ground, and FedEx Home Delivery vehicles all overlap in their service areas. (Conversely, UPS' use of a single vehicle for package delivery also allows it to charge by service speed, NOT transport type - often allowing use of low-cost ground transport instead of aircraft to provide higher-revenue next-day service.) Again, FedEx helps overcome these strategic disadvantages by paying employees less, and sometimes hiring unqualified drivers (eg. FedEx Ground OTR) - contrary to Birla's book.

FedEx has greatly benefitted from periodic UPS labor union strikes - a sustained competitive advantage also ignored by Birla. (On the other hand, Birla also ignores FedEx's labor strife among its pilots, especially after acquiring Flying Tigers.)

Bottom Line: "FedEx Delivers" is not worth reading.

In a very easy-to-read book, Birla uses his vast experience in FedEx to outline how the philosophy of FedEx evolved and thrives on innovation. The vantage point enjoyed by the author certainly reflects in this "big picture" viewpoint of one of the better known company's growth. Of particular interest is the notion of innovation ( spelt with an "i") dealing with process improvements and Innovation (spelt with an "I") dealing with business model changes. The author provides an interesting discussion on what constitutes innovation and how FedEx defined (or didnt define) it. The rest of the book explains how a 5-dimensional employee base can be created. This discussion is certainly novel and adds some interesting perspective for anyone involved in managing people and/or processes.

Though the book will certainly please any "managerial-type" reader, I was a bit disappointed to see that the author's vast engineering experience was essentially untapped in this book. There is no meaningful discussion on the operational side of "how " FedEx actually implemented innovation....In that sense, the title is a little misleading for an engineering-minded reader. Regardless, this is an excellent read, provides a different perspective on how innovation should be seen, and a broad paradigm that enables developing an employee-base committed to and thriving on innovation. A good read. (It may be interesting to read this book along with the autobiography of Kinko's founder - "Copy This!". FedEx's buying of Kinkos is discussed in this book and for even a casual observer the synergy between these two companies seems real.)

I was very disappointed in this book on Fed Ex. This is a great management theory book but really told me nothing about how Fed Ex is innovating again and again. I am hoping that someone will come out and tell us how Fed Ex as a company is succeeding but it is not this book. For those interested in academic management you will find this interesting otherwise don't waste your time and money.

I'm afraid that I've to say that it is a terrible book on both FedEx and Innovation. The book talks a very little about FebEX in terms of its story and its business innovation, although in the name of FedEX Delivers. And it is very shallow and unsystemic, actually no (much) value, in learning of management and of innovation.
It is almost waste of time!
Sorry of my frank comments but I just share my feeling.

Author Madan Birla spent 22 years with FedEx, watching its culture of innovation develop as it applied new ideas in the marketplace. Birla's fluid writing style and his first-hand observations and insights make this an exceptional corporate story. He knows the people who built FedEx at all levels, from delivery drivers to CEO Frederick Smith. Birla focuses his book on how FedEx became a leading innovator and reshaped the global airfreight business. While many corporations give lip service to innovation and employee development, Birla says FedEx delivers the real thing, and he provides rare specifics as he shows companies in other industries how they can replicate FedEx's successes. We recommend this book for executives at all levels in large and small businesses. If you absolutely, positively must learn to innovate, this book delivers.

There is not a manager or executive throughout the world who would not benefit greatly from reading this book. In only 200 pages Madan captures the very essence of what is needed by any business in order to survive and thrive in today's economy.

Through the story of FedEx he both illustrates why companies need to engender a culture of innovation and, also sets out exactly what is needed to execute on that strategy. Any negativity on the part of a reader will have more to do with their own personal doubts or fear of failure, for the ideas are sound and well illustrated.

In the work I do I spend a lot of time reading management and success books, this is one of the best that I have read in a very long time. The linkage between Strategy, People, Process and Systems is as strong as I have ever seen.

Madan Birla successfully described the innovation and the role of the employee at the company's performance by giving real life examples from the history of FedEx.

Not sure if this was a book to promote himself or explain the origin and inner workings of FedEx, but it was a pathetic mishmash and virtually unreadble. I now blame this guy personally when my FedEx overnight doesn't arrive on time.

My disclaimer: As with any opinion, it is only my opinion! And everyone's will vary depending on who reads the book and what the reader is looking for. I look for ways to improve businesses, sales, and my life.

On a 1 to 5 scale, 5 being the best:

Readability 4: The book reads pretty well, although a little slow at times. One of those books I picked up for a long flight. It was interesting as well and occupied my time.

Information and new ideas 5: Some great ideas were shared and they demonstrated the simplicity in which some problems can be solved.

Applicable Ideas 5: As I stated, great ideas to innovate into other businesses. Especially in regards to problem solving.

Value 5: I took away several ideas which gave me ways to improve the business that I am in.

Overall Score 5: Another book for reference in my library. You might want to buy it as well.

Madan Birla did a fine job!

Rip Walker
Author: Rip's Book of Common Sense Selling: Improving Sales Through Process Implementation

There are lots and lots of useful management ideas in this book. Fed Ex seems to know how a business should run and how to treat its customers and its employees. If you have a business with employees or are contemplating starting one this book would be good to have around. It will help you to grow your business by incorporating the help of others whith their views which may be different from your own.