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Editorial Review

"There's no such thing as a mature business," only a growth business, write leading business consultants Ram Charan and Noel M. Tichy. Every Business Is a Growth Business is a step-by-step manual for turning any company into an expanding company. The book is packed with real-world examples and key concepts for executives to get their businesses on an upward trajectory.

Charan and Tichy assert that growth requires sticking to two principles: "strategy from the outside in" and "changing the genetic code." The first means putting yourself in your customers' shoes and asking what are their needs and how are they changing. From this perspective, a company can redefine its market and come up with creative ways to expand demand. The second principle, changing the genetic code, means revamping the corporate culture so that a new mindset for growth can thrive. As anyone who has ever worked in a company knows, corporate culture is a hard thing to overhaul. The book gives concrete steps to make that happen; sometimes it requires whole new leadership.

Reviews (22)

EMMP: Central : A very good book to read.
The book "The Leadership Engine" by Noel Tichy, discusses how to build dynamic leaders at every level within an organization. The book focuses on fundamentals of winning organizations and the characteristics of these leaders giving insight into some of the greatest leaders stories. Noel Tichy has researched companies like General Electric, Ameritech, PepsiCo, Intel and Focus Hope.

The book is concise in its contents and is good for intellectual reading. Author has made his best attempt to present conceptually his thoughts about leadership engine by proving the facts that"winning organizations are teaching organizations". Senior leaders take direct responsibility for developing and teaching other leaders. Those leaders have great "teachable point of view" as composed by ideas, values and E3 (Emotion, Energy and Edge). Each of these leaders has their own style of teaching and the technique may vary based on the needs of the organization. Great leaders use stories to teach and communicate their ideas.

The term "Engine" as used by author, illustrates the dynamic potential of the winning organization to teach the leaders and develop future leaders. Noel says, "Many management theories don't buy the argument that leadership engine is the key factor in determining an organization's success. They assert that a winning culture, or efficient work processes, or any number of other ancillary attributes are the sine qua nons for success". But he believes that leadership takes precedence over everything else and one reason leadership take precedence is that leaders are the people who decide what needs to be done and are the one's who make things happen. To accept the fact as represented by author, the research should also include mid sized organizations and opinions of middle layered managers.

The ultimate test of success for an organization is not weather it can win today but whether it can keep winning tomorrow and the day after. The key ability of winning organization and winning leaders is creating leaders. One of the greatest quotes in the book was "Every person in a key position has to see himself or herself as a mini-CEO. They have to conceptualize what has to be done in the same way the CEO has. Then it cascades."

APPEALING AT THE BEGINNING
I read Tichy's ideas for the first time in a Harvard Business Review exhibit which he wrote to be inserted in an interview with Jacques Nassar, former CEO of Ford Motor in an issue from 1997/1998. That exhibit was so illuminating I went just right then to get a copy of the whole book in the library. I should've stayed with the exhibit in the magazine...

The CORE of the ideas of Mr. Tichy is superb. Really. Building a model (a triangle which is not, for one of the corners includes "emotional, energy and edge" and there's is not the sligthest reference in the book why these are bundle together) where he included values, ideas and the emotional side to introduce the discipline of the storytelling in the organization is a premier work intended to give a method to build those stories (World Bank, 3M, Ford and many other companies with a long tradition of strategic planning are working on this line, prefering it over conventional bullet lists, formats and charts but back in 1997, when Tichy's work arrived it was a weird idea).

BUT that's all! If you expect to learn here how to buid the "teachable point of view" (this is how Tichy christened his baby) forget it. At least an useful one. Many water has gone under the bridges since 1997 and there're many subsequent authors with better techniques to teach you to do so. Nevertheless, Tichy's work is a nice model to keep in mind when you build and use the strategic stories. But as a framework... and I've got that in the little excerpt of the exhibit in HBS.

Last, but not the least... the examples. And this REALLY bothered me. Rather than present the teoric foundations for his ideas, in order to let you to figure out how he get there and then let the reader to develop his own path (like Collins&Porras, Tichy's nemesis, did in "Built to last"), Tichy gives an harangue of two or three lines with his ideas and then throw at you a 3-pages example so tailored-made for the concept you wonder if he's not explaining a coyuntural practice in some organization which he happened to hear about or maybe witness now and then rather than give you some new insights about leadership. And that organization, 70% alongisde 250 pages or so, is GE, 20% is AliedSignal's Larry Bossidy (a GE insider) and the 10% are ocassional references to Ameritech or well-konwn leaders so suitable for the day-to-day environment of XXI century business like Martin Luther King and Winston Churchill. Of course you can learn from any leader, that's what metaphors are for, but it's risky at least to compare the deployment of some set of values and ideas in a company with somebody who broadcast alive in the middle of some war. HOW the leaders deploy their messages (not the build of the message, but the media and the selection criteria they used) is a major absence in this book. And when it comes to learn about diagnostics and measures for the performance of his idea, Tichy olimpically come down from the bronco saying "I think the value market is the best measure to keep track of the performance of the company in the long term". And thats's it: one line and a half and keep going repeated like a mantra (I wonder what does Tichy thinks about some market values like Enron' And by the way, Ken Lay wrote in the back of the book a very nice appraisal of this leadership method to succeed in the market...) Which means if you're CEO in a private held company, a non-profit organization, a multillateral banking institution like IMF, a public company far away from the S&P or Dow Jones or the local chamber of commerce, you can implement these ideas but for measures go to the nearest church.

Noel Tichy was director at mythical Crotonville GE Human Developing Center. And the book become for moments a "Thanks my sweet lord psalms choir" to Jack Welch. Who is, no doubt, the best known business leader worldwide today. And Tichy used his previous book (Control your destiny) about the great man to quote himself a lot of times as authoritative source. But with the teorics of the book, it is at least arrogant to place such an emphasis in this company. I mean, if "winning companies" are the ones who win today, tomorrow and the next day by the inheritance and labor of its present leaders, how Tichy knew it would be the case back in 1997? Jeffrey Immelt hasn't been appointed to the office and you simply can't know, even today, 5 years after the book, if Welch revolution will survive him. Tichy made an example of his method and of a "winning company" out of Coca Cola under Goizueta reign, and you can go to ask about all this revolution to his succesors, Doug specially. Welch might well become a sort of Tom Watson, the head of the company Tichy's beat to death every single opportunity he has to the point you wonder if they fired or offended him in some moment: if he couldn't illustrate some point in the book with some real practice, then he explain it by default showing HOW IBM didn't do this or that and ergo fell down... and GE sure has, no doubt, somewhere around the world, even if he can't prove that, but the wonderful market value of the company is enough proof. And by the way.... if you read "Straight from the gut" by Welch himself, you learn many of Tichy' affirmations about his practices are, to be candorous, descontextualized or mistaken.

In short, a very, very good idea with a very, very bad excution in a very, worse package.

They Can, They Do, They Teach
Noel Tichy's "The Leadership Engine" is a practical and easy to read book on leadership. His research is exhaustive and well documented; there are sixty pages of notes and bibliographic citations. Tichy's central theme is that winning companies possess a "Leadership Engine" that produces dynamic leaders at every level within the organization. He argues forcefully that winning is about leadership and that leadership is the key trait that distinguishes winners from losers. He defines winning as success in adding value, coupled with sustained excellence. For a company or organization to be successful it must have outstanding leaders at every level. In order to have those dynamic leaders at every level, the organization itself must systematically produce them.

Tichy insists that learning, teaching, and leading are intertwined and admits he is a proponent of transformational leadership theory. Elements of this theory are clearly evident throughout his book. Tichy is also resolute in his belief that leading IS teaching-"they can, they do, they teach"-this point is driven home numerous times throughout his book(1). Winning organizations are teaching organizations. Successful organizations have proven leaders who are both teachers and avid learners themselves. The author emphasizes on numerous occasions that leaders must have a teachable point of view and must create teachable moments for the right kind of learning to occur-the kind that transforms an organization. A leader's "teachable point of view" is a trinitarian view composed of: a) ideas, b) values, and c) emotional energy and edge(2). Ideas are the substance of learning and good ideas are teachable.

Tichy uses numerous real life examples from the business world and even the military to highlight his points throughout the book. His liberal use of relevant and true stories to emphasize the point he is making, is in itself, a subtle illustration of a key leadership trait-being a good story teller. Tichy insists that successful leaders are successful teachers because they use stories and share examples from their own personal life. The author's frequent use of stories makes the book interesting, even captivating at times and minimizes the possibility of the reader getting bored.

The Leadership Engine is an outstanding, well organized, and very readable book; and not just a book, but a useful handbook as well. Tichy includes a 99-page workbook with practical exercises designed to both help the reader assess his or her own leadership and to help the reader develop a "Leadership Engine" in his or her own organization. The workbook is what sets this leadership book apart from the thousands of others in this crowded category. Noel Tichy has accomplished what he set out to do-convince us that winning organizations are teaching organizations. However, for the student of leadership, there is no new ground or profound insights in this book and consequently, I am not convinced that it deserved its Business Week "Book of the Year" honor.

Reviews (6)

Sensible advice, but repetitive, repetitive, repetitive
While I will never dispute the premise that great leaders teach, mentor and learn, it doesn't have to be repeated over and over until I get it. The hero of this book, and that is really the only way to describe it, is Jack Welch, former head of GE. There is a lot of ink used to laud Welch and what he did at GE. While I don't dispute that Welch deserves to be acknowledged as a great leader, Tichy comes very close to crossing the line between praising and deifying him.
The basic theme of the book is the dynamics of teaching and learning within a business environment. This includes all levels, from the lowliest greeters to the CEO and board members. It starts with the leader's Teachable Point Of View or TPOV. This is basically the leader's view of the company direction and how well it is communicated to the people underneath. Without question, this is a valuable point in the success of any organization, assuming that the TPOV is reasonable and the leader is capable of accepting feedback. Or, to put it another way, is the leader capable of learning from underlings? While good leaders must teach and do it well, they must also learn even better. For even the best teachers can be rendered ineffectual if the material they are trying to impart is valueless. In the modern business world, if you don't learn and adapt, you die.
Another focus is on the Virtuous Teaching Cycle or VTC, which is about leaders teaching leaders. This is of course sensible; any leader should constantly be training several potential replacements. The problem with this is twofold. The first is that there can be only one leader, so if more than one potential leader is being groomed, it is necessary to have an unambiguous selection mechanism in place. Succession struggles have doomed many countries and organizations. Secondly, this can lead to the successor suffering from the same weaknesses that the leader does, which is why some of the most successful leaders were outsiders, brought in to provide a necessary fresh perspective.
There are two points of criticism. The first is the repetition. Some of the stories are told several times, even to the point of distraction. The other is that education is a complex task and recent revelations in the corporate world demonstrate that there are leaders that are not only incompetent, but are even criminal. I would have preferred reading more about how learning is done in these dysfunctional situations.
With the pace of life and business changing so fast, companies must learn faster than they produce. While I agree with most of the points in this book, there is a tendency of the author to ramble and repeat, which I found distracting.

Robert Knowling?
I just read the intro to this book by Robert Knowling. As far as I can tell Robert Knowling was booted out of Covad having delivered dismal results. He is listed as CEO of Simbion, which according to Hoovers has 1-5 employees and $50-$100K in revenues. He is even featured on the cover. Am I missing something?

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Reviews (4)

Simply the best
I read a quantity of automotive magazines. I have been driving, modifying, and enjoying Porsches since the late 60s.

If your interests lie in Porsche-land, the hands down best magazine is "excellence". From the early days when it was called "Porsche" [PCNA didn't like that and forced a name change], through the latest issue, "excellence" has always had the best, most original reading on the planet.

Sure, sometimes they have inaccurate technical information and incorrect specifications. Sometimes their writers and editors have missed the enthusiast's point. BUT, nothing else even comes close for issue after issue of superior reading enjoyment.

All I can say is keep them coming!
John Rice

Must Read
This is a great magazine for both owners and fans of Porsche. Bruce Anderson's columns alone are a good enough reason to purhcase it. The mix of topics makes it a magazine for everyone; from reviews of the latest and greatest to articles on older Porsches which well within the reach of any enthusiast. I have subscribed for many years and can't conceive of it not arriving in my mailbox.

The market section and owner reports make it invaluable for someone looking to purchase a Porsche (no one would sell one would they?), I have been trying hard not to to use excellent or excellence in this description, but quite frankly it is an excellent magazine!

Excellence was expected
Great magazine with minimum fluff for advertisements.Good technical articles and an interesting mix of street and track and restoration.Nice to see original articles and columns not recyclyed stuff like I used to see in R & T and Car & Driver before I cancelled them.

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