Head’s Up! A great business book will soon be published.

On October 4, 2011, Demand: Creating What People Love Before They Know They Want It, will be published by Crown Business. Written by Adrian Slywotzky with Karl Weber. In my opinion, it is one of the most valuable and will, over time, become one of the most I influential business books ever written.

It takes full advantage of the breakthrough revelations generated by dozens of major research projects that seek answers to questions such as these questions:

• During the decision-making process (e.g. making a purchase), what role does reason play?
• What role do the emotions play?
•  By what process can it be determined what people want even if they don’t know it?
• Which companies have most effectively created demand for what they offer? How?
• Precisely how and why is demand “a modern alchemy”?
• What is the “Achilles heel” of creating or increasing demand? Why?
• What is Netflix’s “two-hundred-year-old secret”?
• How to “get smarter faster” about what consumers do and do not want?

Slywotzky and Weber provide a brilliant analysis of what the research reveals, citing dozens of real-world examples of what the demand principles offer and how to develop mastery of them.

To read my first interview of Slywotzky, please click here.

To read Curt Finch’s excellent interview of him, featured in the June (2011) issue of Inc., please click here.

Adrian Slywotzky is a Partner of Oliver Wyman, a leading global management consulting firm. Since 1979, he has consulted to Fortune 500 companies from a broad cross-section of industries, working extensively at the CEO and senior executive level for major corporations on issues related to new business development and creating new areas of value growth. Adrian has written several books on strategy and growth, including Value Migration, The Profit Zone, and The Upside. BusinessWeek named The Profit Zone one of its Top 10 Business Books of 1998. The Upside was on the Financial Times list of Best Business Books of 2007. Adrian has been a keynote speaker at a number of senior executive conferences, including the Microsoft CEO Summit, the Forbes, Fortune, and BusinessWeek CEO Conferences, and CFO Magazine and Conference Board conferences. The Times of London has named Adrian one of the top 50 business thinkers, and Industry Week has named him one of the six most influential management thinkers. He holds degrees from Harvard College, Harvard Law School, and Harvard Business School.

Karl Weber is a writer specializing in business, politics, and social issues. He has collaborated with Adrian Slywotzky on four previous books, including The Upside and How Digital Is Your Business? Karl has also collaborated with Nobel Peace Prize laureate Muhammad Yunus, founder of Grameen Bank and author of Creating a World Without Poverty, and he edited the best-selling movie companion books Food Inc. and Waiting for Superman. He lives with his wife Mary-Jo Weber in Irvington, N.Y.

On Intelligence: A book review by Bob Morris

On Intelligence: How a New Understanding of the Brain Will Lead to the Creation of Truly Intelligent Machines
Jeff Hawkins with Sandra Blakeslee
Owl Books/Henry Holt and Company (2004)

I read this book when it was first published (in 2004) and recently re-read it while preparing for an interview of one of countless thought leaders who have acknowledged their great debt to Jeff Hawkins for what they have learned from him and, especially, for what they learned from this book. Written with Sandra Blakeslee, this book provides a superb discussion of topics that include

• Artificial intelligence
• The structure and functions of the human brain
• A “new framework of intelligence” (more about that later)
• How the cortex works
• Consciousness and creativity
•  Hawkins’ thoughts about the future of intelligence

As Hawkins explains, his goal “is to explain [his] new theory of intelligence and how the brain works in a way that anybody will understand.” However, I hasten to add, this is not a book written for dummies and idiots who wish to “fool” people into thinking they know and understand more than in fact they do.

Early on, Hawkins acknowledges his skepticism about artificial intelligence (AI) for reasons that are best explained within his narrative, in context. However, it can be said now that after extensive research, Hawkins concluded that three separate but related components are essential to understanding the brain: “My first criterion was the inclusion of time in brain function…The second criterion was the inclusion of feedback…The third criterion was that any theory or model of the brain should account for the physical architecture of the brain.” AI capabilities, Hawkins notes, are severely limited in terms of (a) creating programs that replicate what the human mind can do, (b) must be perfect to work at all, and (c) AI “might lead to useful products, but it isn’t going to build truly intelligence machines.” At least not until we gain a much better understanding of the human brain.

The material in Chapter 7, “Consciousness and Creativity,” is of special interest to me as I continue to read recently published books that offer breakthrough insights on creativity, innovation, and the processes by which to develop them. (The authors of many of those books, to borrow from a 12th century French monk, Bernard of Chartres, are standing on Dawkins’ “shoulders.” It must be getting crowded up there.) Hawkins asserts that creativity does not require high intelligence and giftedness, and defines creativity as “making predictions by analogy, something that occurs everywhere in cortex and something you do continually while awake. Creativity occurs along a continuum…At a fundamental level, everyday acts of perception are similar to rare flights of brilliance. It’s just that the everyday acts are so common we don’t notice them.” I call this phenomenon “the invisibility of the obvious.”

I am among those who are curious to know the answers to questions such as “Why are some people more creative than others?” “Can you train yourself to be more creative?” “What is consciousness?” and “What is imagination?” Hawkins has formulated answers to these and other questions and shares them in this chapter. Much of the structure of the “new framework of intelligence” to which I referred earlier is in place by the conclusion of this chapter. Then Hawkins concludes the book by looking to the future and offers with eleven predictions. Here’s #8: “Sudden understanding should result in a precise cascading of predictive activity that flows down the cortical hierarchy.” In other words, revelations (whatever their nature and scope) help us, not only to connect dots but to connect those that are most important.

 

In Their Time: A book review by Bob Morris

In Their Time: The Greatest Business Leaders Of The Twentieth Century
Anthony J. Mayo and Nitin Nohria
Harvard Business Press (2005)

How great business leaders “seized the zeitgeist of their times”

I recently re-read Paths to Power, co-authored by Anthony Mayo and Nitin Nohria with Laura G. Singleton, as well as this book in which Mayo and Nohria also focus on some of the greatest business leaders of the twentieth century. As in Paths to Power, rather than limiting their attention to a set number of exemplary leaders – in chronological order — and then devoting a separate chapter to each, Mayo and Nohria chose instead to examine the evolution of 20th century business leadership in terms of the ten decades, assigning to each an appropriate theme while frequently cross-referencing throughout the entire century. For example, Chapter One (1900-1909) is titled “The Land of Opportunity”; Chapter Six (1950-1959) is “Feeding the Machine of Consumption”; and Chapter Ten (1990-1999) is “Reengineering, Restructuring, and Reality Check.”

In my opinion, as in their later book (Paths to Power), Mayo and Nohria’s role, is more that of cultural anthropologists than as biographers or even business historians. They create a social and economic context within a 100-year framework as they examine what differentiated outsiders from insiders in business leadership in the 20th century.

Near downtown Dallas, we have a number of outdoor markets at which slices of fresh fruit are offered as samples of the produce available. In that same spirit, I frequently include brief excerpts such as these from a book to help those who read my review to get a “taste.” Here is a representative selection from the material that Mayo and Nohria provide:

“The business executives of the first decade were driven, opportunistic, and innovative. They operated on a large scale and constantly expanded their base of power. They built businesses that often had far-reaching impact on the way society lived, but they were, for the most part, less concerned about the way people worked; there was generally little regard for progressive employment practices. The focus was not on the quality of work life or necessarily on the quality of the product; it was often the quantity of the output. For many, there was no better way to secure quantity in the 1900s than through consolidation, and the move toward consolidation subsequently spawned another fundamental shift in business – a focus on productivity and efficiency.” (Chapter One, Page 31)

Note: The business leaders discussed in this chapter include Clarence M. Wooley (American Radiator Company), Cyrus H.K. Curtis (Curtis Publishing Company), and Frank C. Ball (Ball Brothers Company).

“Although innovation and technical competence were the principal drivers of products in the 1940s, marketing, advertising, and standardization drove products and services in the 1950s. Sales volume was further increased because many products followed a planned-obsolescence life cycle. Successful businesses adopted this use-and-replace strategy, which was aided significantly with the rise in products manufactured with plastic or other synthetic materials. The lack of focus on product quality would eventually become a major liability for U.S. manufacturers, but that was hard to see in the general prosperity of the 1950s and 1960s as corporate profits continued to rise.”

Note: The business leaders discussed in this chapter include Howard J. Morgens (Procter & Gamble), C. Kemmins Wilson (Holiday Inn), Raymond A. Kroc (McDonald’s), and Malcolm P. McLean (SeaLand Service).

“As we have seen in our analysis of previous decades, the full impact of the entrepreneur’s work is often not visible for many years; these businesspeople often push the limits of what is possible and even what is conceivable. By their nature, entrepreneurs and their businesses are ahead of the curve, and it is relatively dangerous to assess performance and impact as it is unfolding.

Note: The business leaders discussed in this chapter include Alfred M. Zeien (Gillette Company), Louis V. Gerstner Jr. (IBM Corporation), and Meg Whitman (eBay).

Those who share my high regard for this brilliant book are urged to check out the aforementioned Paths to Power as well as Stuart Crainer’s The Management Century and Stewart H. Holbrook’s The Age of the Moguls: The Story of the Robber Barons and the Great Tycoons. (obtaining a copy of it is well worth the effort.) In his book, Holbrook examines a number of “lords of capital” who, in his words, “made `deals’ purchased immunity, and did other things which in 1860, or 1880, or even 1900, were considered no more than `smart’ by their fellow Americans, but which today would give pause to the most conscientiously dishonest promoter….They were a motley crew, yet taken together they fashioned a savage and gaudy age as distinctively purple as that of imperial Rome, and infinitely more entertaining.”

Holbrook’s account of 19th century robber barons and great tycoons “sets the table” for the “feast” of information and analysis that Anthony Mayo and Nitin Nohria so skillfully provide.

James M. Strock: An interview by Bob Morris

James M. Strock

James M. Strock is a businessman, educator  and citizen servant based in Scottsdale, Arizona. His company, Serve to Lead® Inc., works in two areas: 21^st Century Leadership Development, and Clean Tech Sustainability. He is a frequent speaker and has written three books: Serve to Lead: Your Transformational 21ts Century Leadership System, Reagan on Leadership, and Theodore Roosevelt on Leadership. In addition to extensive business experience, he also served as the founding Secretary for Environmental Protection for the state of California, as the chief law enforcement officer of the U.S. EPA, and other national service positions. Strock previously served in the USAR-JAGC in the 1990s.

Morris: Before discussing any of your books, a few general questions. First, other than a family member, who has had the greatest influence on your personal growth?

Strock: I’ve benefited greatly from studying many effective people from history. Among those who’ve influenced me the most are Ronald Reagan, Theodore Roosevelt, and Winston Churchill. I’ve been privileged to be able to study them extensively in my formal and ongoing education. Each of the three altered history; each was self-created to a great extent; and each was a great student of history and leadership. I first learned about TR from children’s books. He held particular interest since I, too, was afflicted with childhood asthma. I became aware of Churchill as a child growing up in the decades immediately following the Second  World War. I recall well his funeral, a major television event in my early school years. Reagan is in a bit of a different category. I worked in several of his campaigns and in his administration. Therefore I have some sense of what it felt like at that time and place, serving as a young adult in enterprises led by President Reagan.

Morris: Was there a turning point (if not an epiphany) years ago that set you on the course in life that you continue to follow? Please explain?

Strock: At the time I attended law school, the progression into a career in corporate law was almost foreordained. I set about to craft a career reflective of my values. These included: public service, environmental protection, and leadership development. Trusting my instincts, following my heart, enabled me to create a calling that became a career.

Morris: To what extent has your formal education, especially your legal training, proven invaluable to your career thus far?

Strock: With every passing year I have increased appreciation for the value of a strong liberal arts grounding. If one studied history as well as quantitative models, one was much better situated during the Wall Street mayhem of the past two decades.  Amid the rapid rate of change today, and the breaking down of industrial categories and academic disciplines, the adaptive capacities nurtured and honed in the liberal arts are vital. Legal training has also been quite useful in developing critical thinking. Whether one attains it in mathematics, philosophy or law, an analytic grounding can add great value in defining and confronting complex problems, or laying out a path to implement a vision.

Morris: How about your military service? To what extent has that proven beneficial?

Strock:  My Army reserve service was in the 1990s. It was, more than anything else, an opportunity for me to express gratitude. My understanding of and admiration for the American armed forces is deeper, better informed as a result. I’m among those who believe that military or other citizen service should be an expected part of every American’s life. In a time when our nation is engaged in multiple, long-term wars, it’s  critical that “the military” not become an abstraction to the vast majority of Americans who are not participants.

Morris: To what extent do you view California as a microcosm of the federal government?

Strock: This is an interesting question. California is, in many respects, best understood as a nation-state. In the environmental-energy realm, California possesses far-reaching legal authorities that other states do not. California leads the nation in auto emissions standard-setting, for example. In recent years, the state’s political system has been hobbled by regrettable dysfunction. This is in evidence in its interminable budget crises. If California can rouse itself to take action on the most pressing public issues of our time, such as pension reform, it could again lead the nation. At the moment, that role is being assumed by other states.

Morris: Of all the U.S. presidents, which do you consider the most over-rated? Why?

Strock:  Woodrow Wilson. Wilson is reported to have told a Princeton colleague, shortly after the 1912 election, “It would be an irony of fate if my administration had to deal chiefly with foreign problems, for all my preparation has been in domestic matters.” In the event, Wilson’s early months were marked by substantial domestic legislative accomplishment. Unfortunately, after Europe plunged into the Great War in August 1914, Wilson’s leadership was uncertain. The postwar settlement of Versailles, in which Wilson had such an important part, was deeply flawed. His administration ended in tragedy, with his insistence on governing following his disabling stroke. I suspect President Wilson is often graded on a special curve, because many academic historians identify with him as one of their own.

Morris: The most under-rated? Why?

Strock: William McKinley has surely been underrated—in no small part because he was succeeded by a memorable leader, Theodore Roosevelt. Curiously, while TR is among the most captivating of presidents in our time, his administration, too, is often underestimated. Roosevelt’s successes in domestic and international affairs are so wide-ranging as to appear obvious or inevitable in retrospect. So too, Dwight Eisenhower has been underestimated, which may relate to his advanced age in office, his somewhat uneven communications skills, and his failure to present a forward-looking vision on the rising issue of civil rights. One wonders if Lyndon Johnson and Richard Nixon’s administrations may come to be viewed, in the future, as having been underestimated in some respects.  To be sure, each ended in failure. Nonetheless, Johnson’s accomplishments in civil rights and immigration legislation, and Nixon’s in respect to relations with China, may loom larger with the passage of time.

Morris: What prompted you to write about leadership in the first instance?

Strock:  My books arose from my own experience, when I sought guidance in practical leadership in my career. In sum, I strive to write the kind of book that I would find valuable in my own life. I often encountered books by academics and others who had not actually done what they had written about. They tend to create artificial simplicity; their prose doesn’t have the vigor of “lived words.”  On the other hand, many practitioners lack the context or introspection to make their experiences and understandings transferable—and, in our time, many don’t actually write the books they “author.” My ideal is to unify theory and practice.

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To read the complete interview, please click here.

Jim Strock invites you to check out the resources at his website by clicking here.