Customer Reviews

Surviving Transformation: Lessons from GM's Surprising Turnaround

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Most case studies on organization transformation simply tell what was planned and what happened, sprinkling in a little theory here and there, but generally as an afterthought. Vince Barabba's book on "Surviving Transformation" offers something different, a well-composed blend of theory and practice. The author enjoys two advantages. First, he was instrumental as a senior executive in designing and orchestrating the changes that occurred at GM. Second, he has a sound background in the "systems approach to change." Combining the two,the author has been able to offer the inside story of the redesign of one of the world's largest corporations while, at the same time, framing it in a conceptual context that helps us to understand exactly why it succeeded. Finally, Vince Barabba offers a model for change that is not unique to his company' situation, but can be used by a wide range of other organizations. I recommend the book highly to those who understand the need for on-going organization learning and adaptability.

If you only focus on just one thing from this book, you will get tremendous benefit. I am referring to coming to term with the core concept that the future is something your company can influence...can create for the benefit of both itself and its customers. Taken to it maximum opportunity-generating dimension, this philosophy can lead business leaders to what is, in my humble opinion, the future of business leadership...for corporate leaders to help redesign all of society so that it adapts - in a healthy and constructive way - to the global challenges all corporations face today.

I was frustrated with the business book that claimed to have THE answer however as I read them they did not fit my circumstances - ever! Surviving Transformation is the first book that gave me a toolkit to understand and apply to many business challenges. The great insight provided by Mr. Barabba is that multiple business models not only can but most likely should exist within one company. Rather than presenting one answer for success in the future, I got an understanding of three types of businesses that must be mixed according to a market and company's characteristics. There are ample great examples to help you understand the drivers behind each model. I think it is also great that Mr. Barabba uses General Motors as his test bed. I always thought of GM as stodgy and lagging the "high tech" companies as far as business approaches. I now understand that GM's business approach is highly sophisticated and actually a better model for most companies facing increasing market challenges. Also, I really enjoyed the discussion on the "zone of discomfort" where a business must face the reality of being a leader in an underperforming or declining industry. I have been in many of those meetings and I now have some perspective on the solution. I would highly recommend Surviving Transformation to expand your awareness of the variables to consider when formulating your business strategy.

Former GM executive Vince Barabba's latest book provides a fascinating example of organizational transformation - namely, GM's turnaround between 1992 and 2003 - and identifies strategic business designs that can benefit any enterprise's strategy development process.

The story is an interesting one, indeed, but even more interesting is the mindset behind the example - that is, the systems thinking approach to creative problem-solving, which can apply to organizations and individuals alike.

Acknowledging the pioneering contributions of avant-garde thinkers Peter Drucker and Russell Ackoff, Barabba shares his personal transformation from business school model-builder to creative visionary. Among the systems thinking principles discussed are respect for the complex nature of problems; management of the whole rather than the parts; flexibility regarding change; and knowledge acquisition through experience, especially through mistakes.

For Barabba, the learning process is as important as the outcome, and enterprises facing difficult times are better poised to see opportunities in changing the way things are done. By combining imagination and market knowledge, Barabba's experiences can benefit us all.

Every once in a while you read a book that's different in a way that makes you question all the other books. In other books, theories fit very nicely on top of pat little stories called cases. When you read them, you don't notice that there is a lot of experience (i.e., struggle and confusion) that is missing from the account. Barabba shows what it is really like to have and hold a theory and strategy, adapt and compromise as necessary, and live to see some effects after a lengthy evolution. Of course there are business histories or memoirs, but they are missing any clear account of the theory that was in play. The books is worth reading just because of its rare perspective -- that of a thinking man who also happens to be an executive. But the thoughts are good too. Plenty of useful stuff for people who worry about large institutions and their renewal.

There is no dearth of business models, as are the books about them. Some models promise the world, others show the ways to salvation, almost always without any practical case to substantiate the claims. If there is any story to tell, it is almost, always a second hand account.

Fortunately, some books are far more refreshing than these ordinary runs of the mills books. Here is one such book worth reading. Based on his participation and study from the automobile industry, specifically GM, Vince Barabba presents a compelling case for the business models, particularly the model of anticipate and lead. It tells the story of how GM was on the verge of bankruptcy pulled its acts together and emerge as the corporation to contend with, all in a few years.

Few key features of this book, that would set it apart from its counterparts, are systems thinking approach, emphasis on process and transparency, author's participation in the decision making process, and a view (albeit brief) into risk management issues.

The personal involvement and experience of the narrator makes it a practice management book. With copious details that would help students prepare business cases, this book would also have relevance in academia.

Most books that follow a specific case of corporate strategy tell a "just so" story where the true messiness of the decisions gets masked. I applaud Mr. Barabba for breaking that mold. He lets us see the context of uncertainty that surrounded decisions taken in GM's transformation. He gives us the added benefit of laying-out the theories behind the decision making approach. I found his concrete recommendations on dealing with organizational complexity and identifying key market development assumptions to be very useful. His discussion of deploying a "Sense & Respond" business model in spite of GM's financial stress gives great examples identifying the opportunity costs from alternative strategies. Lastly, his discussion of using the destination-focused, "Anticipate & Lead" business model is an eye-opener of everyone dealing with rapidly changing, turbulent markets. A great read.

Mr. Barabba has managed to capture the essence of what it means to become an enterprise that can adapt to current conditions and environments in a way that is compelling and entertaining. The perspectives he offers on how to achieve this sort of agility are key lessons that every industry and Federal Government executive should spend some time learning. The simple fact that General Motors, once the poster child for big, entrenched industry, is now in the transportation services business vice just selling vehicles should be a powerful eye-opener! If GM can do this, so can our federal bureaucracies. The practitioners of government transformation and those businesses that sell to government can benefit greatly from understanding the business designs Mr. Barabba presents in this book.

Without much ado, I must say this is an excellent reading on transformation, particularly from systems thinking perspective, which is often missing in organizational transformational accounts (see paper Systems Thinking and Its Implications in Organizational Transformation by Pourdehnad and Bharathy).

Being part of the effort, Vince Barabba narrates with a number of annectdotes and information, which would be a valuable source for writing several business cases. I am sure, the book will spawn many case studies in the future.

It is also refreshing to see risk management treated well in a transformation book.

It is a must read for anybody interested in transformation and business models.

Vince Barabba masterfully brings together a number of different dimensions in, and a fresh perspective on, organizational transformation, including:

~ Systems Thinking mind set,
~ An approach to creating a winning business model - specifically, one which allows for avoidance of risk of failure,
~ Creative use of the Internet to better understand your customers and create trust, and
~ A recipe for creating a large-scale learning and adaptive organization.

This is a must-read for executives, managers, students of management and practioners in the field.