15 of 16 people found the following review helpful:
5.0 out of 5 stars
Pogo was right., June 18, 2007
This review is from: Unstoppable: Finding Hidden Assets to Renew the Core and Fuel Profitable Growth (Hardcover)
In two previously published books, Profit from the Core (2001) and then Beyond the Core (2004), Chris Zook shares what several years of extensive and intensive research revealed about "how companies fail to recognize the potential of their core business and, as a result, prematurely abandon it in pursuit of hot markets or sexy new ideas, only to realize their error - often, when it is too late." He suggests a systematic way for organizations to assess their full potential and to make certain, also, that they do not fall into "this common, and typically human, trap."
In this volume, Zook draws upon an even wider and deeper wealth of research sources that include about fifty interviews, mostly of CEOs. The title is explained by the fact that he and his associates chose to study most closely those companies "that beat the odds. We also analyzed patterns of failure and estimated the odds of success offered by various paths in various situations." He goes on to observe that all of the success stories built their renewal on their "hidden assets" that had been previously been undervalued, unrecognized, and/or underutilized. "These assets were not central to the strategy of the past, but they held the key to the future. Furthermore, the older and more complex the company, the greater was the likelihood of finding promising hidden assets." In other words, many companies already "hold most of the cards for "a winning hand" but do not realize it.
I highly recommend all three of Zook's books because, together, they answer three separate but related, and critically important questions:
1. How to define and grow an organization's core assets? (Profit from the Core)
2. How to expand its boundaries into new territory? (Beyond the Core)
3. How to redefine and renew its core? (Unstoppable)
No company is forever "unstoppable" but most (if not all) companies can take full advantage of the information and counsel Zook provides in this book to find correct answers to all three of these questions achieve core renewal without "leaps to distant and hot new markets, ...being the first adopter of a pioneering new strategy,...[or making] as `big bang' acquisition." In fact, unless a given organization has "beaten the odds" by sustaining profitable growth, it should first define or redefine its core assets and then grow or renew them, before committing any resources to organizational and/or territorial expansion.
Zook is to be commended on the care with which he defines various terms. For example, undervalued business platforms "that might have once been secondary in importance but now have the potential to be the foundation for a new major core business"(e.g. IBM's Global Services Group). Also unexploited customer assets that tend to exist in three primary forms: "knowledge gathered as part of serving the customer but that, over time, accumulates an inherently greater value of its own...a unique position of trust of relationship with a set of customers [that gives] much more access and influence than has been recognized (e.g. American Express and Harman International). And finally, underutilized capabilities ("the most difficult hidden asset to discern but no less powerful") that result in losses of position to competitors in terms of cost, speed, logistics, design, and quality of customer service (e.g. the United States Postal Service's inability to invest as much as FedEx and UPS in system upgrades). "At the root of such competitive reversals we often find a yawning capability gap that was undetected, dismissed, or ignored."
I especially appreciate Zook's skillful use of various reader-friendly devices such as check-lists that focus on key points covered within a chapter: "Seven Steps to Redefining Your Core" (pages 24-25), a "State of the Core Diagnostic" (Figure 2-3 on Page 44), "Detecting Undervalued Business Platforms" (Pages 82 and 83), "Identifying Hidden Customer Assets" (Page 115), "Defining Your Core Capabilities" (Page 140), and "Ten Principles of Core Growth and Redefinition" (Page158). These and other check-lists facilitate, indeed expedite frequent review of key points later.
Although hidden assets are the "real key" to redefinition and capabilities are "the building blocks of renewal," and I agree with Zook that they are, it is important to keep in mind that transformation and renewal initiatives should never end. Zook asserts that "the real focus of business should be external - on competitors, shifts in technology, and customer dynamics." However, ironically, for many companies now searching for profitable growth, some "of their most challenging demons are internal" and their "most difficult foes" are often themselves. Unless they identify and then leverage the hidden assets they already have or to which they have easy access, they will either be out-of-business or acquired by another company within the next ten years.
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5 of 5 people found the following review helpful:
5.0 out of 5 stars
Important information on how to continue to survive over the long haul..., June 3, 2007
This review is from: Unstoppable: Finding Hidden Assets to Renew the Core and Fuel Profitable Growth (Hardcover)
Nothing stays the same in the business world, and even successful businesses will face their own demise if they are not thinking ahead to their next "core" business. Chris Zook examines this redefinition of business in the book Unstoppable: Finding Hidden Assets to Renew the Core and Fuel Profitable Growth. This is an important book for all businesses, especially those who think they're on top of the curve right now...
Contents:
Unsustainable to Unstoppable; When to Redefine the Core; Undervalued Business Platforms; Untapped Customer Insights; Underutilized Capabilities; Managing Through the Growth Cycle; Appendix; Notes; Bibliography; Index; About the Author
When a company is trying to redefine their core, often they'll do one of three things. They'll either commit ever more deeply to what they currently do, they'll move into an area where they have no experience, or they'll merge with some other group to form a new mega-power. But Zook shows through research that each of those moves has a very small chance of success over the long term. The odds are much better when companies examine what they already have, and then map out how to leverage those hidden assets. They often fall into the categories of undervalued business platforms, unexploited customer assets, or underutilized capabilities. By moving in these areas where you already have traction, the company can be redefined to meet the next growth period. Zook has plenty of case study examples to back up his premise. PerkinElmer went from precision optics to genetic research using a small niche subsidiary they had. American Express took their massive data assets and redefined how they catered to customers. These and many other stories help to flesh out an important message... Change is inevitable, and it's best to be out in front of it, rather than playing catch-up in survival mode.
I can't think of too many businesses that wouldn't benefit from a structured examination of what they do and where things are going. Even if you don't feel you need to change right now, it's important to be thinking along those lines. That time *will* come, regardless of whether you want it to or not...
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5 of 5 people found the following review helpful:
4.0 out of 5 stars
A good book that stands on its own, October 10, 2007
This review is from: Unstoppable: Finding Hidden Assets to Renew the Core and Fuel Profitable Growth (Hardcover)
Normally the third book in a series either rehashes the prior two books, or requires that you read all three to understand the authors points. Unstoppable is unique in this regard as the book stands on its own and does not require you to read the other books.
Zook talks in depth about how enterprises can find source of growth from the core of their company either by finding hidden assets, customers or capabilities. The strength of this book is its detailed discussion of each of these sources of growth from the core and extending the core. Zook also provides detailed tools to help the reader apply these ideas to their company. This is particularly unique in a book that addresses issues of growth and growth strategy.
In some ways, Zook's book should be used as a companion to the book "BLUE OCEAN STRATEGY" which talks about identifying opportunities where there are no competitors. Used in combination, Blue Ocean will open up new possibilities, while Unstoppable will provide a way to execute on these opportunities and build off of your core to achieve them.
The book is clearly written with detailed case studies and verbatims form actual companies going through their growth processes. This is unique for any business book and Zook's use of extensive interview comments makes the book seem real and actionable rather than academic.
While Zook's book is well researched, there is a subtle and important bias in the research. Zook's results and statistics are largely based on analyzing projects that he and his company have conducted, rather than looking at the general marketplace. This is strength in that the book can talk about implementation details because they did the work. However, it is a subtle weakness in that the cases suffer from selection bias that has a tendency to color the results and conclusions. Zook's attention to detail, pragmatism, and exposing tools do compensate for this research weakness and for most it will not matter, but recognize that it is there.
Overall, I would recommend this book for any executive who is looking to change their enterprise or recognize the need to do more in order to grow. This is one of the top 10 business books I have read so far this year so highly recommended.
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