Editorial Review

Why do you do what you do?

Why are some people and organizations more innovative, more influential, and moer profitable than others? Why do some command greater loyalty from customers and employees alike? Even among the successful, why are so few able to repeat their success over and over?

People like Martin Luther King Jr., Steve Jobs, and the Wright Brothers might have little in common, but they all started with why. It was their natural ability to start with why that enabled them to inspire those around them and to achieve remarkable things.

In studying the leaders who've had the greatest influence in the world, Simon Sinek discovered that they all think, act, and communicate in the exact same way -- and it's the complete opposite of what everyone else does. Sinek calls this powerful idea The Golden Circle, and it provides a framework upon which organizations can be built, movements can be lead, and people can be inspired. And it all starts with WHY.

Any organization can explain what it does; some can explain how they do it; but very few can clearly articulate why. WHY is not money or profit-- those are always results. WHY does your organization exist? WHY does it do the things it does? WHY do customers really buy from one company or another? WHY are people loyal to some leaders, but not others?

Starting with WHY works in big business and small business, in the nonprofit world and in politics. Those who start with WHY never manipulate, they inspire. And the people who follow them don't do so because they have to; they follow because they want to.

Drawing on a wide range of real-life stories, Sinek weaves together a clear vision of what it truly takes to lead and inspire. This book is for anyone who wants to inspire others or who wants to find someone to inspire them. ... Read more

Reviews

Provides the inspiration to build a reputable business with loyal customers and dedicated employees
Simon Sinek's "Start With Why" is a must read for any entrepreneur or leader struggling to create a long-term vision and guiding principles for their company or cause. The book can provide just the inspiration needed to get started in the right direction. You'll learn that the most important thing you can do as a leader is to figure out why your company or organization exists and why that should be meaningful to customers and others in society. Once the answer to this becomes clear and you believe it in your heart, the rest of the decisions about what to do and sell and how to do it become infinitely easier.

For those faced with competition, price-war and customer churn, Sinek's book can provide great insights for developing a new long-term strategy to combat these issues once-and-for-all. Sinek explains that while your product's features may be replicated and commoditized, no one can copy the kinship and confidence that your customers feel when doing business with you. This is because those feelings come from intangible values and beliefs that only you share with your customers.

How does one create such kinship with customers? The book explains the Golden Circle concept, which shows business leaders how to inspire instead of manipulating customers or employees to act. Sinek explains that trust is built naturally when you target customers that understand and believe in your WHY. So, if getting repeat and word-of-mouth business is important to you, then use inspiration, not manipulation to get the sale. Also, when business leaders properly articulate their company's WHY to employees, it makes it easier for the employees to believe in what they are selling. When sales reps sound authentic, it builds trust and loyalty with customers. It all starts with WHY.

In light of the last decade of greed and short-term trading mentality with little regard for future consequences, I found myself wholeheartedly agreeing with Sinek's observations that there are no short cuts to long-term success. Manipulation may help achieve short term results, but long-run success is only achievable when leaders are ready to make short run sacrifices/investments and willing to account for long-term impact of their decisions from the start. There is much that our universities and MBA programs can do to teach these principles to the next generation of leaders. All and all, this book left me truly inspired. Beyond the tons of practical business insights, the mental framework that "Start with Why" provides can also make anyone a better communicator as a mother, father, husband, boss or just a decent human being.

More Than Inspiration
As an avid reader of Simon Sinek's blog, I have been eagerly awaiting his book, START WITH WHY. I am a small business owner who had grown tired of the typical marketing advice that spells out how to manipulate people into buying your products. START WITH WHY blows that advice out of the water and, instead, encourages business people to succeed with inspiration and integrity.

Every business owner should take the time to read this book and drill down as far as necessary to discover his/her WHY. It does indeed cause you to rethink your business and the message you are sending the world about what you do.

HIGHLY recommended!

Learn From Yourself
Every bookstore is filled with business books that tell you WHAT to do and HOW to do it. They often seem to give contradictory recommendations. This WHY book will resolve many of the apparent paradoxes and put you on your path.

The truth is most people are too busy doing to think about the most important question which is WHY they are doing. It is likely thinking through the examples in the book you will discover why you are working too hard for your results and more importantly be able to concentrate on achieving far more with far less effort.

Want to know why people love some companies and not others, why it usually takes 2 guys in a garage, why some companies soar and others crash? It's in there.

A note on what is not in the book. There are no 7 steps to accomplishing anything you want. What and how you do things are up to you, once you figure out the why. But again there are no shortages of other books and people who can help with that.

A final note, this is a business book, but the applications extend far beyond business.

Why Start With Why is important.
I love this book. According to Simon Sinek, one simple thing can make your business run better. It can make your employees happier. It can make your customers more loyal. It can even turn your suppliers into partners. Simon reverse engineers the most successful companies in the world to find out why they are successful. The reason is simple - they understand why they exist and they share that reason with everyone. This emotional connection, a relationship based on mutual allegiance to a cause, is part of our biology and is rooted in the part of our minds that controls decision making. As a practical matter, if you understand how people make decisions, you have the opportunity to create alignment and mutual success. Everyone wants to be happy. Everyone wants to feel like they matter. If you start with why, everyone will win.

Must read for all companies
I've been coaching & mentoring entrepreneurs around the world for years. I have CEOs that I mentor in 5 countries. This book will be a must read for them and their teams.

I was lucky to be exposed to Simon and his content years ago and have anxiously awaited it in book format so that I can begin sharing it with others. Just purchased yet another copy today to give to another CEO.

My Why - "helping entrepreneurs make their dreams happen" was developed using Simon's formula and his book Start With Why will also make it easier for me to help the entrepreneurial companies I'm mentoring to figure out theirs too.

Must read - in fact - buy a few to give away.

....helping entrepreneurs make their dreams happen.

Cameron Herold
Founder
BackPocket COO
[...]

Identify the right WHY and the right WHAT and HOW will eventually reveal themselves

I agree with Simon Sinek that individuals as well as organizations must have a crystal clear sense of purpose or it will be very difficult (if not impossible) for them to decide what to do and how to do it. If they have the right purpose, it will guide and inform their decisions and, meanwhile, inspire and then sustain their efforts. Sinek suggests that the Golden Circle "helps us to understand why we do what we do. [It] provides compelling evidence of how much more we can achieve if we remind ourselves to start everything we do by asking why." In brief, here is Sinek's outside-in explanation:

"Every single company and organization on the planet knows WHAT they do...Everyone is easily able to describe the products or services a company sells or the job function they have within that system. WHATs are easy to identify."

"Some companies and people know HOW they do WHAT they do...Not as obvious as WHATs, many think these are the differentiating or motivating factors in a decision. It would be false to assume that's all that's required. There is one missing detail."

"Very few people or companies can clearly articulate WHY they do WHAT they do...By WHY I mean what is your purpose, cause or belief? WHY does your company exist? WHY do you get out of bed every morning? And WHY should anyone care?"

Brief digression: Whenever I meet with a new client's marketing team, I go around the table and ask each person to answer three simple questions. One after another around the table, they have no problem answering the "first two: "Who are you?" and "What do you do?" So far, so good. Then I ask the third question and the subsequent silence is deafening: "Why should I care?" Eventually, one brave soul finally responds, citing and praising functions, features, benefits, etc. Without the right WHY, a company's customers won't care. Worst yet, without the right WHY, a company's employees won't care.

Credit Sinek with a thorough coverage and brilliant analysis of issues inherent to statements such as these:

o "People don't buy WHAT you do, they buy WHY you do it."

o "Those whom we consider great leaders all have an ability to draw us close and to command our loyalty. And we feel a strong bond with those who are also drawn to the same leaders and organizations."

o "A WHY is just a belief. That's all it is. HOWs are the actions you take to realize that belief. And WHATs are the results of those actions - everything you say and do: your products, services, marketing, PR, culture, and whom you hire."

o " You have to earn trust by communicating and demonstrating that you share the same values and beliefs. You have to talk about your WHY and prove it with WHAT you do. Again, a WHY is just a belief, HOWs are the actions we take to realize that belief, and WHATs are the results of those actions. When all three are in balance, trust is built and value is perceived."

o "Charisma has nothing to do with energy; it comes from a clarity of WHY. It comes from absolute conviction in an ideal bigger than oneself. Energy, in contrast, comes from a good night's sleep or lots of caffeine. Energy can excite. But only charisma can inspire. Charisma commands loyalty. Energy does not"

o "What companies say and do matters. A lot. It is at the WHAT level that a cause is brought to life. It is at this level that a company speaks to the world and it is then that we can learn what the company believes."

I hope that these brief, representative excerpts from Sinek's narrative suggest the thrust and flavor of his thinking. Here in a single volume is just about all that any business leader needs to determine precisely what her or his organization's WHY is...or should be. Sinek also provides a wealth of information, insights, and recommendations as the alignment and coordination of the organization's WHAT and HOW with its WHY.

Without the right WHY, even great leaders cannot inspire everyone in the given organization to take action. Only with the right WHY can an organization develop great leadership at all levels and in all areas of its operation.

A must-read for business owners
I am a small business owner & have read everything from "The Art of the Start" to "Good to Great" - and everything in between. "Start with Why" is a must-read for anyone responsible for managing, leading and inspiring people. From the type of people who we ask to join our team, to the clients we work with and the relationships we form with them, identifying and communicating our WHY has been a game-changer. ... Read more

Editorial Review

Napoleon Hill was one of the earliest producers of the modern genre of personal-success literature. His most famous work, Think and Grow Rich, is one of the best-selling books of all time. Hill called his success teachings "The Philosophy of Achievement" and he considered freedom, democracy, capitalism, and harmony to be important contributing elements. For without these, Hill demonstrated throughout his writings, personal beliefs are not possible. ... Read more

Reviews

Truly inspirational. The single best book I have ever read.
If you asked me to recommend to you the single best book I have ever read, my answer would be a very definite "Think and Grow Rich".
First published in 1937, this is the end product of two decades of research conducted by Napoleon Hill. His research started when Andrew Carnegie (the steel tycoon who was then the richest man on earth) gave him the assignment of organizing a Philosophy of Personal Achievement. Hill, who was a poor journalist, armed with just an introductory letter from Carnegie, set out to interview over five hundred successful people including Henry Ford, Thomas Edison, Alexander Graham Bell, John D. Rockefeller, George Eastman, William Wrigley Jr. and Charles M. Schwab. Hill then revealed the priceless wisdom of his research in the form of the thirteen steps to success (in Think and Grow Rich) and the seventeen principles of success (in courses and lectures he conducted).
The concepts taught by Napoleon Hill transformed my life. Some of these include developing a definite purpose, building a Positive Mental Attitude (PMA), channeling the power of the sub-conscious mind and dealing with adversity. Everything he wrote about or talked about is thought provoking. He was wise, humble and funny. His philosophy is universal; he did not mix it with religion. The riches he referred to were more than money, for the Philosophy of Personal Achievement can be applied to anything in life.
Hill was well ahead of his time. This book has a chapter dedicated to some of today's most important issues - Specialized Knowledge, Decision Making, Imagination and Organized Planning (in which he deals with Leadership). He also has principles for Teamwork, Creative Vision, Health, etc.
This is a classic, and hence the examples are old (not to be confused with outdated). But they are as relevant today as they were in the early twentieth century. Here is an example from T&GR in the chapter on Desire:
On the morning after the Great Fire of Chicago (1871), a group of merchants on Chicago's State Street went into a conference to decide whether to rebuild their stores or leave Chicago. All but one decided to leave. The merchant who decided to stay pointed a finger to the remains of his store and said "Gentlemen, on that very spot I will build the world's greatest store, no matter how many times it may burn down." His name was Marshall Field and his store still exists, and in Hill's words is "a towering monument to that state of mind known as a burning desire." I lived in Chicago from 2002 through 2004 and worked three blocks away from this impressive store on State Street. Sometimes I would visit it or stand outside it to derive inspiration and be reminded of the power of desire. It is amazing that Hill describes "burning desire" with a story based on the Chicago Fire.
There are thousands of self-help books out in the market and hundreds of self proclaimed "gurus" who have made a living by copying the wisdom in Hill's books. As I went through some of those books I realized that there was not much in them that Hill had not already written about. I recommend quality over quantity. Instead of reading through many books, I recommend that you study the following works of Hill and internalize his wisdom:
1. The Think and Grow Rich Action Pack (1937) - I recommend the Action Pack edition,
2. Napoleon Hill's Keys to Success: The 17 Principles of Personal Achievement - this is an excellent guide to his principles,
3. Your Right To Be Rich [Unabridged] - this consists of 12 hours of live lectures covering the 17 principles, that Hill conducted in Chicago in 1954.
By internalizing, I mean studying in depth - analyzing the ideas, making notes and summaries. I own more CDs by Hill, but I believe that these 3 items make the perfect study plan on the Philosophy of Personal Achievement.
I am greatly indebted to Napoleon Hill. The purpose of my writing this is to spread awareness of his work so that more people can benefit from it. This, I believe is the best way in which Hill would have liked to have been repaid.

Best personal development book ever!
Although this book has been around since the 30's, it is still head and shoulders above the others.

The title can be misleading. You do need to think and by reprogamming your mind with these time tested and proven techniques, you will become rich.

The most beneficial part of the book to me was the exercise of holding a mental picture of myself for 30 minutes per day along with affirmations.

All I can say, is that it works, it really works.

Read yourself into a fortune
I was introduced to Think and Grow Rich over 25 years ago. WOW! What an outstanding book. This book contains money making secrets that have changed my life.

"Think and Grow Rich" is based on Napolean Hill's famed "Law of Success", a 16 lesson, 2 volume course on personal development and success. "Think and Grow Rich" represents the distilled wisdom of distinquished men of great wealth and achievement.

Andrew Carnegies magic formula for success was the direct inspiration for this book. Carnegie demonstrtaed it's soundness when his coaching brought fortunes to those young men to whom he had disclosed his secret.

This book will teach you that secret. And the secrets of other great men like him. It will show you not only what to do but how to do it.

If you learn and apply the simple basic techniques revealed here, you will have mastered the secret of true and lasting success.

And you my have whatever you want in life. As Napolean Hill says; "Whatever the mind of man can conceive and believe, it can achieve. I also recommend "The Law of Success" on which this book is based

A very well researched book that gets results
Napolean Hill spent over 20 years interviewing the most successful men of his time and then put the findings of his study; the characteristics of the most successful people in Think & Grow Rich.The fact is that successful people think differently. This is why a multi-millionaire can lose his entire net worth and have it all back in five years or less while unsuccessful people plod along and never amass any real level of wealth or success.Hill states that when the secret appears to you, whether it be in the first ten pages or on the 200th page, that is when your life will change.This is when you are ready for it.I have known people who read the book and never got it. Not surprisingly, these people have never achieved very much in life either. If you don't get it...you don't get it.Think & Grow Rich is a must read for all those who want success and are ready for it.I wish you the best of succe$$, happiness and wealth.

The handbook on personal development
This book teaches what we never learn in school---the principles of success.I own book the book (Action Pack) and the cassette tapes which I play in my car. I never fail to pick up a new idea everytime I read the book or listen to the tapes. I recommend Success through a Postive PMA by Hill and Turner, Turner, Turner: The King of Network Marketing.

This book turned my life around
In 1990, I returned home (Orlando,Fl) after a crashing business failure in Hawaii. I had read Think & Grow Rich many years before along with other mind books including "You can if you Think you can" by Norman Vincent Peale. Frustrated, I decided to go back to my "roots" and dug out the old dog eared copy of "Think and Grow Rich" that I had packed away and began to read and most importantly apply the techniques. Within weeks, I found a new opportunity and within months, my income had grown to a personal high. I really can't say enough about Think and Grow Rich, except read it and apply the principles. The other book that came into my life at the same time I began to reread Think and Grow Rich was "More Wealth without Risk" by Charles Givens and oh yes, I also reread You can if you Think you can by Dr. Peale. I highly endorse all three books for anyone serious about success.

Still the best!
I have read over 400 books on personal development. Think and Grow Rich is the best.It's not just positive thinking, but also strategies and techniques to reach your goals.It's great to see Napolean Hills great book has such a high rating here at Amazon and is still one of the best selling books.If you want just one book, this should be it.If you are in business or want to be or in a leadership role, I also suggest Direct From Dell by Michael Dell. If Napoleon Hill were alive today and interiewing the most successful people of the times, surely Michael Dell would be at the top of his list.I am also sure that Mike Dell has read and applying the strategies from Think and Grow Rich.Read and apply the techniques from both books and you can't help but be successful.

A LIFE SAVING BOOK
In 1992, I suffered three major crisis; loss of my job, marital seperation and loss of a loved one. These elements put me into a tailspin financially and emotionally. THINK & GROW RICH was one of two books that I read at that time and significantly turned my life around! I found myself with no money, huge debts, no friends and no job. I had lost my self esteem and felt powerless. The principles in Think & Grow Rich gave me the how to turn mylife around. After applying the technique descibed on page 36, opportunities began to come to me. Within two weeks, I found new employment actually at a higher income than before. I started a very successful part time home based business, within two months, all bills were caught up and within six months all debts were paid off! With a better attitude I started to attract new people into my life. I went from a extreme negative attitude to a positive attitude, from a negative cash flow to a positive cash flow and from a life of emptiness to a life of aliveness. I believe that THINK & GROW RICH is the very best self developent book of all time! I also own the 8-cassette tape program/course and highly recommend it to everyone. I mentioned that THINK & GROW RICH was one of two books that turned my life around, the other book was More Wealth Without Risk by Charles Givens which is to personal finance what Think & Grow Rich is to Personal Success. I make it a habit to review both books and their tape programs continously and get continued results and ideas.

The bible of Personal Development!
While there may be many "how to" books out there, this is the best. Principlesnever change. And while this book was written over 60 years ago, the technique's are still in vogue. In fact, most of the newer books are "peppered" with Napolean Hill, perhaps the best testiment to the effectiveness of Mr Hill's techniques. This is a extraordinary book. I alsorecommend "Life Strategies" by McGraw and "Superself" by Givens. Two more great books.

The all time classic that still delivers
It's hard to believe that Think and Grow Rich has been aroud now for over 70 years!When I first heard of this book in the early 70's, I thought it was a new book at that time. Then when I heard it was nearly 40 years old (at that time) I, being a college grad and highly sophisticated figured that Hill's work was outdated.About that time I met a young businessman with a harelip and a severe speech impediment. This guy was an 8th grade dropout and was extrolling the merits of Think & Grow Rich and network marketing. This guy didn't look like much. He was pretty ordinary looking. Average, maybe even below average and he wasn't rich. In fact he had to borrow money from his uncle to get into business because he had worked on a farm all his life and came from a poor family.I figured this guy was insane and had gotten sucked in by some city slickers.Many years later I noticed a big limo coming through town. Curious I waited to see who would come out. In this little southern town, newer cars were rare and seeing a limo was like the president was coming to town.Much to my surprise the man that walked out was the harelip! I walked up to him and started to introduce myself but amaziingly to me, he remembered me even though we had only met once.I asked him what the occasion was and was actually belligerent enought to suggest that perhaps his uncle had paid for the limo. He then told me he owned the limo..in fact a whole fleet of limo's. He had moved to Orlando, Fl and created a cosmetic/personal development company that extrapulated into over 78 companies. His net worth, he said, was over $350 million ($1.5 billion in todays money)Stunned, I asked him how he did it.He attributed his success to Think and Grow Rich and some other books like How To Win Friends and Influence People and he said the most important book, The Bible.I went ahead and bought a copy of Think and Grow Rich. I didn't get into his motivational or mlm company or any mlm or direct sales company, buut I did use what I learned from Think and Grow Rich to achieve success that was extraordinary for me.Surprisingly to me, I also became a better parent, a better spouse, a better friend, a better coworker, a better manager and became better in everything I did with more balance all the way around.This book may have been around for along time, but the principles are timeless. Since the 70's I have not met a single person who has achieved any level of success who has not at least read Think & Grow Rich.Napolean Hill's book is a classic because it delivers...but ony if you read it and use it. ... Read more

Editorial Review

First time in paperback. The #1 New York Times bestseller from the phenomenal author of The Courage to Be Rich.

The world's most trusted expert on money matters answers a generation's cry for help-and gives advice on

- Credit card debt
- Student loans
- Credit scores
- The first real job
- Buying a first home
- Insurance facts: auto, home, renters, health
- Financial issues of the self-employed

And much more advice that fits the realities of "Generation Broke." ... Read more

Reviews

Why isn't this required reading in high school?
How many people graduate from high school and even college within knowing the basics of financial literacy - deciphering credit ratings, maintaining and balancing a bank account, getting through college with a minimum of student debt, making the most of that first job and, eventually, buying a home and planning for retirement?
Orman strives to close this "financial illiteracy" gap by providing invaluable info for those just starting out - although I found plenty of information I needed to know as well - and I'm well outside the "young and broke" range she seems to be targeting.
The info is not only cutting edge but many of the websites have NOT appeared in other books. One example of how new the info is: Orman notes the recent changes in credit rules noting that EVERYONE has access to a FREE credit report once a year.
Because she knows younger adults may be intimidated by a ton of financial info, Orman (wisely) delivers her advice in innovative, user-friendly ways. Each page is short, easy to read and yet chock full of info. In short, she doesn't waste words.
Each section is launched with a Lowdown on what will be covered in the chapter and there is a quick summary at the end with checklists to make sure readers know what they shouldn't have missed. A Glossary at the back of the book explains some of the more complex terms. Important website resources and key terms are boldfaced in green, a great asset when looking for important info.
Reading this book could help young people avoid many pitfalls, since Orman covers the basics such as:
* Understanding that all important credit rating and deciphering your FICO score

*Making a small paycheck stretch as far as possible while maximizing opportunites for career advancement.

* A special area on her website where buyers of the book can get UPDATES on info in the book and CONNECT with others on message boards, a great way to get info and share viewpoints (and Suze stops in regularly to answer a few select questions, giving readers an opportunity to have her answer YOUR questions)

* Current websites to get information quickly and fill in gaps. She even notes that readers can now get their FICO score FREE once a year, valuable information that is on the cutting edge of new legislation. This info alone could well be worth the price of the book.

* The rignt and wrong way to handle student debt

* How to start investing and the best funds for ROth IRAs and 401(k) accoutns.

* Buying a car, auto insurance and a home.

I consider this MUST reading for anyoone just starting an independent life and this will definitely be at the top of my gift list for any high school or college graduate. What better gift than to give someone the tools for an independent and financially secure future?

GOOD EVEN FOR US FORTY-SOMETHINGS
I haven't watched Suze on TV for that long but she always seems to make sense and what's more, common sense when it comes to making financial decisions. I guess I am a bit outside of the age range that this is intended for being in my early 40's but I still found a lot of very valuable information inside. Granted the book is squarely aimed at younger people who have just gotten out out college and are maybe a few years or more into their careers and faced with the bills of student loans. The information though is of great value to me as my first child is only 5 years away from going to college and the information about financial assistance was invaluable.

Thus while the information inside my not help me directly, I think it sets up a wonderful plan that we can use to its fullest extent when my son starts college as well as the years after. This is always a very hard time, especially when "kids" get their first lines of credit and often make the same extent of forgetting that at some point the bills have to be paid. I had some $15,000 in credit card debts, small compared to many I know, when I was in my early 30's and now have less than $2,000 which is very manageable. If i had had this book 15 years ago I might not have found myself in such a rough position. And certainly had I had the book I would have taken the advice about retirement plans much earlier than I did. As Suze puts forth, getting that 401K setup as early as you can will make life much easier down the road. Great Book!

I wish it were common sense
I purchased this book because I work for a student loan and financial literacy nonprofit organization. Having reviewed the student loan chapter of the book in its early stages, I was interested in the final product.

Not being so young or so broke (of course, I'm not satisfied with my money, but am better off than many), I still enjoyed and respected this book. It is written appropriately for this audience and addresses a number of hot topics.

Before considering this review, I read several others. Many indicated that Suze's advice is just "common sense". If only this were true. Unfortunately, studies show that the average student graduates from high school lacking basic financial literacy skills. To them, "balancing a checkbook" means using a calculator to ensure your adding and subtracking is correct. Even worse, a small percentage of the population thinks that checks in their checkbook mean they have money to spend!

Knowing this, I highly recommend Suzie's book! In addition to her clear writing and good examples, you have access to even more information on her web site, including excellent and FREE resources.

Here's to good reading and financial savvy!

The LAST of my Available Credit-Chinese Food or Orman's Book
Faced with a true financial conundrum, with a mere $30.00 in available credit on my Student Platinum Visa, I chose to purchase Suze Orman's book and settle for a doctored up frozen pizza instead. I made an incredible choice and found myself engulfed in reading a book that seemed to answer ALL of my questions and concerns about my finances wtih REAL SOLUTIONS!

I can remember how intimidated I was at completing my first Federal Student Loan Applications and Pell Grant Requests. I was terrified at the consequences of answering one of those "trick questions" improperly and ending up with little or no financial assistance. Little did I know how easy it was to get loans and to later learn that I could use a portion of the funds for material things that likely were not necessary for the completion of my degree. This is a common mistake that Ms. Orman describes in her book. Again, she turns our anxiety into UNDERSTANDING and helps us to TAKE BACK CONTROL OF OUR MONEY!

The Financial Aid Office was full of credit card offers that seemed almost too good to be true. Within a month I had accumulated 3 credit cards. Could it really be this simple? How could I manage to get extremely high credit limits from banks that knew little or nothing about me? I take full responsibility for overextending myself, but what were they thinking when they offered a Junior College Student a $4000 line of credit, especially when my source of income read "Full Time Student with No Income?"

The job market is quite anemic right now, so I settled for a position that offers great benefits in exchange for a salary that makes flipping burgers appear to look better and better! So much for ranking in the 98th percentile in the field of International Relations! Instead of working abroad, helping to make the world a better place, I'm working for a bank in the collections department for their credit card division. SUZE ADDRESSES SIMILAR ISSUES, ABOUT THE LACK OF JOBS FOR COLLEGE GRADUATES, AND HELPS US TACKLE THIS PROBLEM WITH EASE!

Enough of the negativity as my career is just beginning and I'm being productive and making payments towards the debts I owe. "I Owe, I Owe, So Off to Work I Go...!" This is one of the best books, of this important genre, that I've ever read and been so enlightened by-in every possible way. I finished reading it this evening and had so much energy that I went for a run, focused on her many strategies for making positive changes in my life, and arrived home to sit down and face all of my "Debt Demons" head on. ORMAN REACHES THE HIGHEST LEVEL EVER AND TEACHES US HOW TO RECOVER FROM ANY TEMPORARY BUMP IN THE ROAD!

In the typical financial sense, I might be considered "...Young...and Broke!" But money is only one form of currency in life. It is NOT everything and there are many other important forms of "Currency" in life. I'm blessed with a good amount of spiritual currency and friendship currency-so I'm far from being broke. I'm still Young and, for the first time in a very long time, I feel Fabulous about myself and my future. Orman's book gives each of us every possible tool we need to start saving money AND to help us take action steps to start making positive changes in many aspects of our lives.

For a long time I felt as if I was no longer the conductor of my life. "The Money Book for the Young, Fabulous and Broke" has instilled in me that I AM in control of my life and the outlook of my future is Fabulous.

If any of this makes sense to you, my suggestion is that you either purchase this book or check a copy out at the library. Because the book has so many useful tips and strategies for guaranteed success, you'll probably want to make some notes in your own personal copy.

THIS IS A BOOK THAT IS FULL OF SOLUTIONS. I review books that I think others will either enjoy or benefit from in some way. This is a book for young and old, students and parents of students, educators and financial aid planners. Don't spend another dime on another book that addresses our "Generation Debt" until you give this comprehensive and intelligent book a thorough read.

Good luck to all of you! If I can make it through this financial mess that I have created, so too can the rest of the world. And one day, I'll hear from someone who is seeking a really nice, intelligent, YOUNG and FABULOUS employee for a position in any form of International Relations.

Feel free to contact me, Peter Cannice, of Scottsdale, Arizona, at Horsepete@aol.com for additional comments or a copy of my entensive review.

I may not exactly be YF&B...
I'm thirty-something. I have a wife and two children. I've been extremely fortunate in my life to have side-stepped many of the financial potholes that Suze mentions in this book. So...Young? I'm probably topping out the range. Fabulous? In my children's eyes, yes. Broke? In a sense, but I'm doing all right.

Now, even though I may not be truly YF&B, this book has really opened my eyes. With two young children, I think more and more about obtaining a secure financial future for my family. To be honest, I've always been a little confused as to what I should really be doing to achieve that goal. Suze has made it so very clear in her book. She has confirmed in my mind that some of the things I am doing are right. In other areas (like "Big Ticket Purchases", investing and insurance) I see opportunity and room for improvement. I've already taken action. Out of all this, I finally feel confident that I'm doing the right thing for my family and myself. Thank you, Suze.

Better than the rest!
I have read many financial books, and this one by far is the most refreshing. I am learning step by step how to secure a successful, and non-broke future even after acquiring enough school loans that would make most people faint. Suze gives the young the tools to not get lost in the shuffle and to take control of their own destiny. I am very excited to no longer be broke...Thanks to Suze I am definitly on the right track!!! I highly recommend this book to ANYONE, It is very user friendly and easy to understand...not your typical money-ease.

Absolutely Fabulous
With all personal finance books, you should take the writing with a grain of salt. You have your own experiences to draw on to see if whether the advice offered is something feasible. The vast majority of personal finance books I read are not only totally unsuitable for my financial situation, they are also incredibly boring to read. To quote the author, "This is definitely not your parents' money book."

Personal finance is not the most "sexy" topic out there. It happens to be something most of us have had to figure out for ourselves through mistakes made or through the few fiscally responsibly parents who take the time to teach these things to their children. Most schools do not require a mandatory course in money managment before we graduate, although we could all benefit highly if this were added to the curriculm of high schools across the country (while I am still skeptical on the physical eduation requirement being necessary). These are lessons we need in order to get ahead in life. These are things we can not afford to not know.

Suze Orman recognizes the changing economy and realized the right financial advice for our parents is not right for us, the younger generation. She aims this book at those of us in our 20s and 30s, although it would not be a bad idea for the older generation to read it to understand the younger generation's financial situation. She understands many of us are starting out and we managed to build up a lot of debt due to the nature of the current consumer and economic environment. She does not hold these actions against us, preaching to us on how horrible we are to mishandle our finances. She tells us how to fix these problems we created for ourselves. She seems to understand the change in economic status in this country means, unlike our parents, we will not have social security, pensions, and other legitimate avenues our parents persued to fall back on.

Ms. Orman also realizes not everyone is a spreadsheet geek. Budgeting is not the grand solution to all our problems. She's still kind to those of us who are spreadsheet geeks and who like to see the numbers in front of us, but it's not a requirement to have a successful personal finance plan.

There are several surprising key points Ms. Orman makes, especially if you have read other personal finance books:

* Learn your FICO score and make sure you maintain it at a high level. This score not only effects your ability to get loans, but also the interest rate you'll pay once you get them!
* Do not close credit card accounts even if the balance is $0. These hold your credit history and effects your FICO score. Instead, keep the accounts open and destroy the physical card if you feel you can not trust yourself not to use it. Credit card companies are always happy to issue new cards.
* We are currently paying the lowest tax rates in the history of our country for our earned income. There is a very high chance these rates can not be maintained for when we retire and need to withdraw our retirement funds. This makes economic sense given the state of the country's economy. Since traditional IRAs and 401(k)s and other similar plans are taxed when you remove the money later, it makes sense to instead only invest in your 401(k) (or similar plan) for what your employer will match (never say no to free money) and then put whatever else you would put into the 401(k) into a Roth IRA. In a Roth IRA, you pay your taxes now, at a lower rate. You will not pay tax on the interest or dividends earned in the Roth IRA or the money you put in when you take it out during retirement.
* Always pay at least the minimum amounts on your credit card debt. Just missing one payment can have severe detrimental effects on your FICO score
* Do not even think of defaulting on your student loans. This is the best deal in unsecured debt you will ever get and the government will not let you get away with not paying. You are better off paying the miniums or working out a deferral if you are in financial hardship.
* Once you place your finances in order, and get your credit card interest rates on your unpaid balances (and any other loans) below 8% (it just takes a couple of phone calls), then concentrate on building savings. You should work on having 8 months of living expenses available to you.
* Once you set up your 8 months of savings, then concentrate on putting savings into a Roth IRA for retirement.

There are, of course, many other points, but these are the main highlights I was able to pull from the reading. Ms. Orman also understands it might take time to complete each of these steps. She reiterates time and time again to not rush moving on to the next step before completing the one before it, even if it takes several years to do so.

One wonderful feature of this book is the way it is organized. Instead of expecting you to read the book straight through (like I did), Ms. Orman expects you will use it as a guide to answer your specific financial questions. She does not expect people will want to read every situation in her book. After all, not every situation is the same. Customize the book to match your situation and read it. I do say this with a caveat. Reading the book in this manner would have had me skip the part about trusts. I now realize, as a single home owner, it would be a good idea to set up a revocable living trust and transfer title to my home to this trust in order to not burden my family with probate issues in the case of my death. So, there is something to be said to reading the book cover to cover. You might learn something new.

The material in this book is extremely important to read and understand. The way this book is written, in plain English, helps make this the most readable and understandable personal finance book I have ever come across. If you find the Amazon.com price is too much for you, ask for it at your local public library and borrow it. Take notes on the pertinent parts. Ask your parents to get it for you for Christmas, Hanukkah, or your next birthday. They could not buy you a better gift. Just having it as reference material has been invaluable. If you find you will not be able to get the book right away, Ms. Orman's website has an action planner where you can fill in a questionaire and have a customized action plan set for your particular financial situation. There are also forums and material updates for the book available at the website. Above all, the key to maintaining sound personal finances is to pay attention to your situation. Ignoring the problem will not make it go away. Reading this book could be your first, positive step in the right direction.

This Ain't Your Parents' Money Book
Suze's book caught my eye as I was browsing my local bookstore. Young, Fabulous, and Broke is the perfect descriptor for my life right now. The cover price was ridiculous--why ask $25 for a book for broke people? Because the first thing you read in the book will make you at least that much back.

I've read dozens of personal finance books that tell you how to "just save" this much money and how life is better when you can just control your spending. Until this book, there has been nothing out there on what to do when you already are controlling your spending, and you can't make ends meet.

Suze offers advice on how to find out your credit score, how to keep it pristine (the drilldown of the components of the FICO score and how you can take advantage of each part is just fantastic). She doesn't say, "Pay off your balance every month," because she knows that a lot of the younger crew just honestly can't do that. This is about how to manage your debt, realistically, how to bank on career advances, how to understand everything from credit scores to government bonds to mortgages to 401(k)s and IRAs.

This is the book that will tell you when to prioritize saving over paying down debt, when to withdraw money from your savings and which savings, and to pay for what, how to understand the fine print on all those applications for this money fund and credit card, and what pitfalls to avoid. This is the book that generation broke has been waiting for.

Tells you exactly what to do and gives clear reasons why
My mother is a fanatic of Suze's show, so she bought this book for my sisters and me. So far I am the only one to pick it up, and I'm glad I did and I will be suggesting my sisters do the same. I don't know much about finances beyond common sense (I have no debt and pay off my credit cards every month). This book gives excellent descriptions of how to and where to invest, giving the exact information you need -- there is no need for ridiculous amounts of research since this book gives you the info you need (these companies are good companies -- the one I looked at that was highly recommended had a very low cost rate and it faired much better than my current investiments in the high rate cost company that invests my money... it won't have my money for more than another month since these other companies will as well). This book thoroughly covers 401k's and Roth IRAs, which were the two things I really wanted to look at since I am not looking to get out any serious loans in the next few years.

This book also covers a plethera of other topics, such as 403b, which loans to take in what situations, what your FICO score is and why you should care (Suze's obsession with FICO is justified -- if you don't know why, just another reason to read this book), life insurance, car insurance and car purchasing (explains why not to lease -- if you lease, you need to read at least that part of this book), advice on purchasing a home, and many other topics. If you find yourself in a tough situation, perhaps her dozens of scenarios she draws up in her book will apply to you and give you a more direct answer to your question.

This book is essential to pretty much anyone, but especially to those of us who are still reasonably young (but you are never too old to start saving for retirement!). Get up and purchase this book -- take the initiative and use this book to begin giving yourself a solid foundation. Skipping over the portions that didn't apply to me (about half of the book), it only took me about 2-3 hours to read this book. That isn't a lot of time and it has a lot of payoff, so there is no excuse except being lazy about your future. Buy this book now and follow its advice -- it will pay for itself over and over in the money you will both save and make. ... Read more

Editorial Review

"A provocative title for a fascinating book."-Charlie Rose

Asked to explain why a few people truly excel, most of us offer one of two answers. The first is hard work. Yet we all know plenty of hard workers who have been doing the same job for years or decades without becoming great. The other possibility is that the elite possess an innate talent for excelling in their field. We assume that Mozart was born with an astounding gift for music, and Warren Buffett carries a gene for brilliant investing. The trouble is, scientific evidence doesn't support the notion that specific natural talents make great performers.

According to distinguished journalist Geoff Colvin, both the hard work and natural talent camps are wrong. What really makes all the difference is a highly specific kind of effort-"deliberate practice"- that few of us pursue when we're practicing golf or piano or stockpicking.

Based on a wide array of scientific research, Talent Is Overrated shares the secrets of extraordinary performance and shows how to apply these principles. It features the stories of extraordinary people who never stopped challenging themselves and who achieved world- class greatness through deliberate practice- including Benjamin Franklin, comedian Chris Rock, football star Jerry Rice, and top CEOs Jeffrey Immelt and Steven Ballmer. ... Read more

Reviews

Exhilarating, Infuriating or Terrifying -- it all depends on you
I inhaled this book. The informal plan was to read it over a few short weeks. Instead I plowed through it in maybe three days.

For those teetering on the edge of greatness -- or thinking about really going for the gusto, in whatever field or endeavor that has captured their spirit -- this book is an invitation to walk among the gods.

For those who have soured on their dreams and bitterly written them off, however, this book will be painful. It might even read like a damning indictment, and thus incite a hostile emotional response.

And finally, this book also has the potential to be terrifying. For those who feel the pull of greatness but also wrestle with a deep-seated fear of failure, the starkness of the choice will be revealed to them in these pages.

Why? Because Colvin's deeper message, beyond the powerful insights into "Deliberate Practice" and what it can do, is that there is no excuse. Whatever it is you like (or love) to do, the fact that you don't hate it means you probably have the basic tools -- and so there's no reason you can't get better, maybe a lot better. And so, at the end of the day, there is simply no real excuse for not being great. Only the classic Bartleby the Scrivener response: "I prefer not to."

Greatness requires dedication and sacrifice, period. Being good at something requires a fair amount... being great requires a huge amount. If you truly desire greatness -- or simply to be great at what you do -- then much sacrifice is required.

But I fudge slightly. The book does leave room for one excuse of sorts, but not a very satisfying one. In some cases of highly competitive endeavor, wunderkinds (like Mozart and Tiger Woods) have built up a nearly insurmountable "time in the saddle" advantage via taking up the hard work of Deliberate Practice (which I shall from here on out refer to as DP) at an astonishingly young age.

Olympian swimmer Michael Phelps has analogized his hard training to putting credits in the bank. DP is like a disciplined investing program -- the longer you do it, the more compounding you see, and it takes many years up front to get to a point of real momentum. This makes it all but impossible in certain prodigy-dominated arenas to come to the game late and try to catch someone who has been continuously working their butt off from, say, age twelve. (Or in Tiger and Mozart's case, age three.)

My personal experience with DP -- which I practice in the world of trading and investing -- is that it's a lot like running. The brain is like a muscle, or rather a group of muscles, that has to be built up, like legs and heart and lungs for the runner, if a rigorous DP program is to be sustained.

This is another reason why getting into DP is so hard for the average individual. People don't intuitively grasp the concept that the brain is like a muscle... that you have to strengthen your cognitive control and tighten up your executive functions before you can become a powerhouse.

Nobody starts out on a running program from a dead stop and assumes they'll be able to run three marathons every week. They build up to it, and work on ways to overcome the initial physical pain and resistance that act as a barrier before "runner's high" kicks in and positive addiction carries them through.

It's a similar dynamic with DP. Many people fail in their early quest for excellence, I suspect, because the mind flags and the will tires, and instead of taking this as a normal part of the training process -- like being winded in the early stages of a running program -- they decide they can't hack it and quietly slip back into mediocrity.

Another thing I liked about this book is how it puts talent in the proper context. Is it true that talent is overrated? Well, yes. Based on these findings, absolutely. But that doesn't mean talent plays no role in success. It simply means that having some modicum of talent (whether imparted by genes or favorable early developments) is often a necessary, but not sufficient, condition for success. That lack of sufficiency, i.e. talent alone not being "enough," or even anywhere close to enough, is an absolutely critical point.

It's a further interesting quirk that too much talent can even be an impediment, in certain cases, if the obvious presence of said talent convinces the individual that it's okay to shirk on DP. It's no statistical accident, for example, that the less flashy "work horses" of the baseball and basketball worlds tend to have longer careers than their flashier co-players, thanks to a tighter regime of working hard on the fundamentals to make up for lesser natural gifts. And it seems like we all know someone who had a great knack for playing guitar or piano by ear in high school, but couldn't be bothered to put in the sweat equity of trying to develop it into something more.

Now, go forth and get on the path to greatness.

Deliberate practice "hurts but it works."

Colvin set out to answer this question: "What does great performance require?" In this volume, he shares several insights generated by hundreds of research studies whose major conclusions offer what seem to be several counterintuitive perspectives on what is frequently referred to as "talent." (See Pages 6-7.) In this context, I am reminded of Thomas Edison's observation that "vision without execution is hallucination." If Colvin were asked to paraphrase that to indicate his own purposes in this book, my guess (only a guess) is that his response would be, "Talent without deliberate practice is latent" and agrees with Darrell Royal that "potential" means "you ain't done it yet." In other words, there would be no great performances in any field (e.g. business, theatre, dance, symphonic music, athletics, science, mathematics, entertainment, exploration) without those who have, through deliberate practice developed the requisite abilities.

It occurs to me that, however different they may be in almost all other respects, athletes such as Cynthia Cooper, Roger Federer, Michael Jordan, Jackie Joyner-Kersee, Lorena Ochoa, Candace Parker, Michael Phelps, Vijay Singh, and Tiger Woods "make it look so easy" in competition because their preparation is so focused, rigorous, and thorough. Obviously, they do not win every game, match, tournament, etc. Colvin's point (and I agree) is that all great performers "make it look so easy" because of their commitment to deliberate practice, often for several years before their first victory. In fact, Colvin cites a "ten-year rule" widely endorsed in chess circles (attributed to Herbert Simon and William Chase) that "no one seemed to reach the top ranks of chess players without a decade or so of intensive study, and some required much more time." The same could also be said of "overnight sensations" who struggled for years to prepare for their "big break" on Broadway or in Hollywood.

Colvin duly acknowledges that deliberate practice "is a large concept, and to say that it explains everything would be simplistic and reductive." Colvin goes on to say, "Critical questions immediately present themselves: What exactly needs to be practiced? Precisely how? Which specific skills or other assets must be acquired? The research has revealed answers that generalize quite well across a wide range of fields." Even after committing all of my time and attention to several years of deliberate practice, under the direct supervision of the best instructor (e.g. Hank Haney, Butch Harman, or David Leadbetter) I probably could not reduce my handicap to zero but I could lower it under those conditions. Colvin's insights offer a reassurance that almost anyone's performance can be improved, sometimes substantially, even if it isn't world-class. Talent is overrated if it is perceived to be the most important factor. It isn't. In fact, talent does not exist unless and until it is developed...and the only way to develop it is (you guessed it) with deliberate practice. When Ben Hogan was asked the "secret" to playing great golf, he replied, "It's in the dirt."

Others have their reasons for thinking so highly of this book. Here are three of mine. First, Colvin's observations and suggestions are research-driven rather than based almost entirely on theories developed in isolation from real-world phenomena. He commits sufficient attention to identifying the core components of great performance but focuses most of his narrative to explaining how almost anyone can improve her or his own performance. He reveals himself to be both an empiricist as he shares what he has observed and experienced and a pragmatist who is curious to know what works, what doesn't, and why. I also appreciate Colvin's repudiation of the most common misconceptions about the various dimensions of talent. For example, that "is innate; you're born with it, and if you're not born with it, you can't acquire it." Many people still believe that Mozart was born with so much talent that he required very little (if any) development. In fact, according to Alex Ross, "Mozart became Mozart by working furiously hard" as did all others discussed, including Jack Welch, David Ogilvy, Warren Buffett, Robert Rubin, Jerry Rice, Chris Rock, and Benjamin Franklin. Some were prodigies but most were late-bloomers and each followed a significantly different process of development. About all they shared in common is their commitment to continuous self-improvement through deliberate practice.

Here's another reason I hold this book in such high regard. Throughout his narrative, Colvin inserts clusters of insights and recommendations that literally anyone can consider and then act upon to improve her or his individual performance as well as helping to improve the performance of a team of which she or he is a member. For example:

1. Attributes of deliberate practice (Pages 66-72)
2. What top performers perceive that others do not notice (Pages 89-94)
3. Benefits of having a "rich mental model"(Pages 123-124)
4. Rules for peak performance that "elite" organizations follow (Pages 128-136)
5. Misconceptions about innovation and creativity (Pages 149-151)
6. How innovators become great (Pages 159-161)
7. How to make organizations innovative (Pages 162-166)
8. What homes can teach organizations (Pages 172-175)
9. The "drivers" of great performance (Pages 187-193)
10. How some organizations "blow it" (Pages 194-198)

Colvin provides a wealth of research-driven information that he has rigorously examined and he also draws upon his own extensive and direct experience with all manner of organizations and their C-level executives. Throughout his narrative, with great skill, he sustains a personal rapport with his reader. It is therefore appropriate that, in the final chapter, he invokes direct address and poses a series of questions. "What would cause you to do the enormous work necessary to be a top-performing CEO, Wall Street trader, jazz, pianist, courtroom lawyer, or anything else? Would anything? The answer depends on your answers to two basic questions: What do you really want? And what do you really believe? What you want - really want - is fundamental because deliberate practice is a heavy investment." Corbin has provided all the evidence anyone needs to answer those two questions that, in fact, serve as a challenge.

Colvin leaves no doubt that by understanding how a few become great, anyone can become better...and that includes his reader. This reader is now convinced that talent is a process that "grows," not a pre-determined set of skills. Also, that deliberate practice "hurts but it works." Long ago, Henry Ford said, "Whether you think you can or think you can't, you're right." It would be "tragically constraining," Colvin asserts, for anyone to lack sufficient self-confidence because "what the evidence shouts most loudly is striking, liberating news: That great performance is not reserved for a preordained few. It is available to you and to everyone."

The Importance of Deliberate Practice
Last fall my friend Ron gave me a copy of Geoff Colvin's Talent Is Overrated: What Really Separates World-Class Performers from Everybody Else, which is far and away my favorite business book of the past year. (And, yes, I read more than one.)

Why do some hardworking people remain in a job for many years without increasing the quality of their work? Why do they fail to make the transition from average to outstanding performers? Too quickly we assume that the difference lies in innate abilities, those natural talents and gifts bestowed upon us at birth. Not so, argues the author. What distinguishes top producers from others is hard work, and not just any kind of work, but work that has at its foundation the specific concept of "deliberate practice."

What is deliberate practice? Deliberate practice is characterized by five basic elements: (1) it is designed specifically to improve performance, (2) if can be repeated a lot, (3) feedback is continuously available, (4) it is highly demanding mentally, and (5) it isn't much fun. (66-78)

You've heard the saying, "Practice makes perfect." No, it doesn't. Only perfect practice makes perfect. If I go to a batting cage daily and flail away at hundreds of pitched balls, month after month, I will probably show modest improvement in my hitting. But my untutored approach won't be disciplined or consistent, and the progress of my improvement will soon level off. In fact, the more I hit the more I will reinforce bad habits. Without an instructor's help and feedback, I'll waste a whole lot of time. Hours of hard work with little benefit. What's more frustrating than to work hard but produce little?

What I need is deliberate practice, which requires a teacher who gives me not only instruction but also immediate feedback. Marked improvement will follow as he instructs me in the mechanics of hitting, and then watches me practice, reinforcing what's right about my batting stroke, correcting what's wrong, and working with me over many months, even years. Hitting will never become automatic, because as I reach each new level of proficiency in striking the ball, additional areas of improvement will become clear to my instructor, first, and, and then to me.

Obviously, deliberate practice takes time. After evaluating top performers in a variety of fields, Colvin concludes, "not one, not even the most `talented' performers, became great without at least ten years of very hard preparation." (61-62) Others have called this the "Ten Thousand Hour Rule" - approximately 10,000 hours of deliberate practice is required to become first-rate in any profession. Deliberate practice requires such sustained concentration that four or five hours a day is about the upper limit. (71) To put this in perspective, to reach 10,000 hours of deliberate practice requires a commitment of four hours a day, five days a week, for ten years. It's easy to see why so few make the transition from average to great. Also clear is the threat of constant distractions - from cell phones, computers, and PDA's - all of which, if we are not careful, deplete our powers of concentration, as well as hobbies that routinely consume enormous amounts of time. We must be able to distinguish between hobbies that refresh us from those that control us. Time is precious, and must be closely guarded.

People often attribute the early successes of people like Warren Buffet, Tiger Woods, and Mozart to their natural talent, and label them child prodigies. Certainly, each possessed raw natural and intellectual abilities. Nevertheless, what sets them apart from equally gifted people is deliberate practice, and each of these men put in their 10,000 hours earlier than most because of parental example and a rigorously enforced and supervised practice schedule. Tiger Woods would not be the golfer he is today if he first picked up a club at age 18 and started hitting golf balls. Demands of higher education, jobs, and family life would probably have made it impossible, that late in life, for him to achieve 10,000 hours of deliberate practice devoted to a game.

The book has a helpful chapter on cultivating the habits of deliberate practice among the members of organizations. Parents will want to consider Colvin's thoughts on how a supportive home environment helps a child to start developing early.

I've heard people say that success is more about "I will" than "IQ," an assertion the author's studies support. He writes, "IQ is a decent predictor of performance on an unfamiliar task, but once a person has been at a job for a few years, IQ predicts little or nothing about performance." (45) But even hard work is not enough. Without deliberate practice at its foundation, much human potential is wasted.

I highly recommend this book to anyone interested in improving performance. Whether it's preaching or teaching, honing sales skills, becoming a top actor or musician, or mastering the intricacies of a complicated technology field or organizational system, each of us should be building our work on the concept of deliberate practice.

Great performers work harder and in a more focused way than everybody else
I have always held that talent is a multiplier of work rather than the decisive factor in accomplishment and success. By this I mean that someone whose has a high level of talent, say a 10, and an average level of work, a 5, is going to accomplish at a level of 50. While a person of a level 7 talent who works very hard, a level 10, will outperform them at a level of 70. I have seen this borne out again and again in my life.

Geoff Colvin says that it isn't talent or hard work that are the deciding factors in achieving great performance, but a specific kind of focus when developing and practicing your skills. He calls it deliberate practice. Highly successful people not only practice a lot and work very hard at it, but they also have the ability to focus on what it is that must be practiced and how to work at it. And they can do this even though it is not particularly enjoyable and can, in fact, be painful.

Colvin argues that what we often point to as talent, say, for playing a musical instrument or any specific skill really doesn't exist. When high performers are examined there is little consistent evidence that being a prodigy is a strong predictor of later success. Even Mozart and Tiger Woods, were less about a Divine Spark and more about who their father's were, the focused training they received, and the immense amount of deliberate practice they put in. The author shows us how Jerry Rice worked six days per week during the off season to develop his abilities. Rice identified areas that mattered to his success and developed them systematically. He worked on developing his cardiovascular strength in the mornings, weight training in the afternoons, and those who joined him to see what is was like ended up feeling sick. These people tried to jump into a practice regimen that Rice had built up over years. No wonder they couldn't keep up! Deliberate practice requires building up abilities through repetition after repetition after repetition regardless of how you feel about doing it at any given time.

This repetition provides you with a level of familiarity and insight that others will not possess. While it may appear to be talent or luck, it is really based on becoming so familiar with the tasks involved and knowing at every moment what is going on. The book also takes you through how to apply it to your own life and in your business.

The multiplier idea I have long held is discussed on page 198 in very similar terms to my own. I also agree with him when he says, "What you really believe about the source of great performance thus becomes the foundation for all you will ever achieve." Colvin is honest that great achievement has a high price, a price most people are not willing to pay. However, even if you aren't aiming at greatness, you can still use these ideas to improve and accomplish more.

I think this is right. However, can I note that I think that insight to know what the right practice is and the capacity for that level of work is also a talent, is it not?

May 2009 revision. After thinking about this book a bit more, I want to push back a bit on the notion of someone like a Mozart being just a more focused worker. Or that there are more gifted prodigies today. Bunk. Point me to the body of work created by the hard working musicians who did their "deliberate" practice and created a body of work like Mozart? I think Haydn would be a much better example of the kind of thing the book is aiming at, but the general public doesn't know Haydn so well anymore. The musicologist the author cites trying to bring Mozart down to earth is only a musicologist, and not the final word on Mozart. While it is true that Mozart was not not as popular in his day as he is today, the people of real musical sophistication, Haydn above all, knew his worth. The public is always a poor barometer of artistic worth. Haydn's work is just as wonderful as it was a century ago, or two centuries ago, but the public doesn't esteem it as it should. Is Haydn less than he once was? No. We don't judge the art, our reaction to it judges us. The reputations of Mozart and Haydn were just about opposite a century ago than they are today. In reality, they are both musicians of inestimable worth and deserve our constant attention and careful study. Remember, this book is really about averages and statistics. You are an individual, not a statistic. The capacity for focused work is indeed a talent and one you can develop like any other. If you want something, go after it with your heart and soul.

Reviewed by Craig Matteson, Ann Arbor, MI
... Read more

Editorial Review

The essential book for anyone bringing a product to market, writing a business plan, marketing plan or sales plan. Step-by-step strategy of how to successfully organize sales, marketing and business development for a new product or company. The book offers insight into what makes some startups successful and leaves others selling off their furniture. Packed with concrete examples, the book will leave you with new skills to organize sales, marketing and your business for success. ... Read more

Reviews

What is customer development?, January 19, 2006
This book is required reading at our company - even for the engineers. Following its methodology, we were able to uncover flaws in our product and business plan and correct them before they became costly. Rapid iteration, customer feedback, testing our assumptions - these are all part of our company culture, thanks in no small part to this book. Essential reading for anyone starting something new.

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Above is what I wrote about this book two years ago. Here's what I wrote on my blog, after having more time to think about it:

What is customer development?

When we build products, we use a methodology. For software, we have many - you can enjoy a nice long list on Wikipedia. But too often when it's time to think about customers, marketing, positioning, or PR, we delegate it to "marketroids" or "suits." Many of us are not accustomed to thinking about markets or customers in a disciplined way. We know some products succeed and others fail, but the reasons are complex and the unpredictable. We're easily convinced by the argument that all we need to do is "build it and they will come." And when they don't come, well, we just try, try, again.

What's wrong with this picture?

Steve Blank has devoted many years now to trying to answer that question, with a theory he calls Customer Development. This theory has become so influential that I have called it one of the three pillars of the lean startup - every bit as important as the changes in technology or the advent of agile development.

You can learn about customer development, and quite a bit more, in Steve's book The Four Steps to the Epiphany. I highly recommend this book for all entrepreneurs, in startups as well as in big companies. Here's the catch. This is a self-published book, originally designed as a companion to Steve's class at Berkeley's Haas school of business. And Steve is the first to admit that it's a "turgid" read, without a great deal of narrative flow. It's part workbook, part war story compendium, part theoretical treatise, and part manifesto. It's trying to do way too many things at once. On the plus side, that means it's a great deal. On the minus side, that has made it a wee bit hard to understand.

Some notable bloggers have made efforts to overcome these obstacles. VentureHacks did a great summary, which includes slides and video. Marc Andreeson also took a stab, calling it "a very practical how-to manual for startups ... a roadmap for how to get to Product/Market Fit." The theory of Product/Market Fit is one key component of customer development, and I highly recommend Marc's essay on that topic.

Still, I feel the need to add my two cents. There's so much crammed into The Four Steps to the Epiphany that I want to distill out what I see as the key points:

1. Get out of the building. Very few startups fail for lack of technology. They almost always fail for lack of customers. Yet surprisingly few companies take the basic step of attempting to learn about their customers (or potential customers) until it is too late. I've been guilty of this many times in my career - it's just so easy to focus on product and technology instead. True, there are the rare products that have literally no market risk; they are all about technology risk ("cure for cancer"). For the rest of us, we need to get some facts to inform and qualify our hypotheses ("fancy word for guesses") about what kind of product customers will ultimately buy.

And this is where we find Steve's maxim that "In a startup no facts exist inside the building, only opinions." Most likely, your business plan is loaded with opinions and guesses, sprinkled with a dash of vision and hope. Customer development is a parallel process to product development, which means that you don't have to give up on your dream. We just want you to get out of the building, and start finding out whether your dream is a vision or a delusion. Surprisingly early, you can start to get a sense for who the customer of your product might be, how you'll reach them, and what they will ultimately need. Customer development is emphatically not an excuse to slow down or change the plan every day. It's an attempt to minimize the risk of total failure by checking your theories against reality.

2. Theory of market types. Layered on top of all of this is a theory that helps explain why different startups face wildly different challenges and time horizons. There are three fundamental situations that change what your company needs to do: creating a new market (the original Palm), bringing a new product to an existing market (Handspring), and resegmenting an existing market (niche, like In-n-Out Burger; or low-cost, like Southwest Airlines). If you're entering an existing market, be prepared for fast and furious competition from the incumbent players, but enjoy the ability to fail (or succeed) fast. When creating a new market, expect to spend as long as two years before you manage to get traction with early customers, but enjoy the utter lack of competition. What kind of market are you in? The Four Steps to the Epiphany contains a detailed approach to help you find out.

3. Finding a market for the product as specified. When I first got the "listening to customers" religion, my plan was to talk to as many customer as possible, and build them as many features as they asked as possible. This is a common mistake. Our goal in product development is to find the minimum feature set required to get early customers. In order to do this, we have our customer development team work hard to find a market, any market, for the product as currently specified. We don't just abandon the vision of the company at every turn. Instead, we do everything possible to validate the founders' belief.

The nice thing about this paradigm is it sets the company up for a rational discussion when the task of finding customers fails. You can start to think through the consequences of this information before it's too late. You might still decide to press ahead building the original product, but you can do so with eyes open, knowing that it's going to be a tough, uphill battle. Or, you might start to iterate the concept, each time testing it against the set of facts that you've been collecting about potential customers. You don't have to wait to iterate until after the splashy high-burn launch.

4. Phases of product & company growth. The book takes its name from Steve's theory of the four stages of growth any startup goes through. He calls these steps Customer Discovery (when you're just trying to figure out if there are any customers who might want your product), Customer Validation (when you make your first revenue by selling your early product), Customer Creation (akin to a traditional startup launch, only with strategy involved), and Company Building (where you gear up to Cross the Chasm). Having lived through a startup that went through all four phases, I can attest to how useful it is to have a roadmap that can orient you to what's going on as your job and company changes.

As an aside, here's my experience: you don't get a memo that tells you that things have changed. If you did, it would read something like this: "Dear Eric, thank you for your service to this company. Unfortunately, the job you have been doing is no longer available, and the company you used to work for no longer exists. However, we are pleased to offer you a new job at an entirely new company, that happens to contain all the same people as before. This new job began months ago, and you are already failing at it. Luckily, all the strategies you've developed that made you successful at the old company are entirely obsolete. Best of luck!"

5. Learning and iterating vs. linear execution. I won't go through all four steps in detail (buy the book already). I'll just focus on the paradigm shift represented by the first two steps and the last two steps. In the beginning, startups are focused on figuring out which way is up. They really don't have a clue what they should be doing, and everything is guesses. In the old model, they would probably launch during this phase, failing or succeeding spectacularly. Only after a major, public, and expensive failure would they try a new iteration. Most people can't sustain more than a few of these iterations, and the founders rarely get to be involved in the later tries.

The root of that mistake is premature execution. The major insight of The Four Steps to the Epiphany is that startups need time spent in a mindset of learning and iterating, before they try to launch. During that time, they can collect facts and change direction in private, without dramatic and public embarrassment for their founders and investors. The book lays out a disciplined approach to make sure this period doesn't last forever, and clear criteria for when you know it's time to move to an execution footing: when you have a repeatable and scalable sales process, as evidenced by early customers paying you money for your early product.

It slices, it dices. It's also a great introduction to selling and positioning a product for non-marketeers, a workbook for developing product hypotheses, and a compendium of incredibly useful tactics for startups young and old.

When I first encountered this book, my first impulse was as follows. I bought a bunch of copies, gave them out to my co-founders and early employees, and then expected the whole company's behavior would radically change the next day. That doesn't work (you can stop laughing now). This is not a book for everyone. I've only had luck sharing it with other entrepreneurs who are actually struggling with their product or company. If you already know all the answers, you can skip this one. But if you find some aspect of the situation your in confusing, maybe this will provide some clarity. Or at least some techniques for finding clarity soon.

My final suggestion is that you buy the book and skim it. Try and find sections that apply to the startup you're in (or are thinking of building). Make a note of the stuff that doesn't seem to make sense. Then put it on your shelf and forget about it. If your experience is anything like mine, here's what will happen. One day, you'll be banging your head against the wall, trying to make progress on some seemingly intractable problem (like, how the hell do I know if this random customer is an early adopter who I should spend time listening to, or a mainstream customer who won't buy my product for years). That's when I would get that light bulb moment: this problem sounds familiar. Go to your shelf. Get down the book, and be amazed that you are not the first person to tackle this problem in the history of the world.

I have been continually surprised at how many times I could go back to that same well for wisdom and advice. I hope you will be too.

A must have for anyone starting a company!!!!!, November 26, 2005
Every once in awhile you come across a book that changes how you live your life or in this case how you start and operate a company. For years people have talked about "Crossing the Chasm" as the book to read if you are building a company. What you didn't realize is that it takes a few years of hard work to get your company ready to cross the chasm. Well if you are looking for the book that provides the roadmap to the chasm, then this is the book.

What is amazing about this book is how it takes you step by step thru how to actually figure out the right product and market for you startup. It has actual steps to follow, something many books lack.

On the down side, the book needs a good edit as it seems to be a companion to the author's course at Berkeley.

All in all, if you got one idea that saves you making a mistake in the early days of your startup, this book is worth it.

Essential Reading for a High Tech Startup, November 28, 2005
I heard Steve Blank talk in Silicon Valley and bought the book. The good news; this book is a real eyeopener. If you have ever done a startup, failed, and never understood what went wrong, here is a clear insight of what breaks in early stage high tech ventures. And tons of concrete suggestions of how to fix it. The bad news; don't expect a polished book. This is essentially Steve's Berkeley and Columbia class notes for his business school classes.

will change your [business] life..., January 9, 2006
I first heard about this book from a potential investor and immediately ordered it on his recommendation. This book is FANTASTIC. It creates a step-by-step process for determining if your business "vision" is really a "hallucination." You might be successful without reading this book, but your odds will increase if you do. I cannot recommend this book strongly enough. Ignore it at your peril.

Essential Reading, July 5, 2006
If you are starting a company and have never done so before, don't bother with this book. It will all sound completely obvious and you will think you know it all. However, if you've tried to build a company or two and failed (or even succeeded) this book is the bible. Experienced entreprenuers will literally be slapping their foreheads and saying "duh" as they read the chapter by chapter stories and recognize almost every mistake they made. The Customer Development methodology is the first place I've ever seen the wisdom of experienced investors and startup CEO's distilled into something readable, repeatable and actionable. Buy this book and increase your odds of getting it right.

Best Startup Book Ever Written, May 3, 2007
The reasons it's great:

Takes product decisions out of the realm of "my vision is better than your vision" into the realm of "the facts say we should prioritize this way..."

Helps a startup discover its CORE value proposition, forcing it to iterate until it has paying customers clamoring for the product.

Emphasizes a low-burn experimentation model rather than a high-burn product milestone focused model.

Helps all of the employees of a company get a visceral sense for what it will take to achieve early traction.

Has been proven to work in both B2B and B2C


Disclosure: I've (gladly) worked with Steve at his courses at Stanford and Berkeley

An invaluable guide for B2B startups, September 28, 2006
This book gives a systematic and step-by-step roadmap on how to discover and cultivate paying customers - arguably the most important thing for a startup. The Customer Discovery process discussed n this book is quite different from the traditional Product Development process, or the sales process used by established companies. But the Customer Discovery process distills the author's years of successful entrepreneurial experience, and most likely will work better than alternatives in real life startup environments.

A few typos notwithstanding, this is definitely a worthwhile reading for any aspiring entrepreneurs, especially if the company is a B2B startup.

Great Business Book, December 5, 2005
This is an awesome book -- it provides a clear and concise roadmap to follow in order to launch a successful new company. It's easy to read and to follow and it contains the lessons learned from a lifetime of successful entrepreneurial activity. Blank teaches the content of this book to "standing room only" crowds at some of the best business schools in the world.

The best book for someone starting a company, December 4, 2005
This book tells you the essentials about starting a company. That is, find out who your customer is, and how you will relate to him. Every VC in the Valley thinks he knows this stuff, but if you look at their track records, it is apparent that a great many do not. And, particularly, the entrepreneurs who have not done it before don't know the customer development process as laid out here. They are the real audience for this book. Particularly, if you are an engineer with a great idea, this book tells you the other part of the story. I lived with, and profited from, Steve's advice before he wrote this book, and it would have saved me a lot of time had he written it 10 years ago. There are a lot of typos and misprints in this book. This is the first draft of what is becoming a classic.

Great content, embarrasing production/printing, January 2, 2010
The Good:

The content of this book is of incredibly high quality. Having gone through the process of building a couple companies I found myself nodding in agreement frequently and often because the author articulated something I had felt and understood but not yet found a way to clearly communicate. There are some really great quotes and advice in this thing and as you progress through the pages the entire content is just solid and I could not recommend it enough. This really should be required reading for entrepreneurs starting companies as it clearly states issues and problems that otherwise require a lot of hard work and pain to discover.

The Bad:

There is a lot of repetition and much of the book is long winded. There are some chapters and sections
that could have been significantly reduced without losing any value. That said, there is enough meat that this can be overlooked.

The production quality of this book is perhaps the worst I have ever seen (especially considering it cost $40). It reads as though it had no proofreader with glaring typos, word omissions, and grammatical mistakes occurring with distracting frequency. I counted 7 glaring mistakes in the first 30 pages and that rough pace is maintained throughout the book. Additionally the quality of the printing is quite poor with bad alignments, varying margins, horrifically butchered charts and graphs (see pg 56 for a good example), and bulleted lists (the author uses these too much IMHO) appearing when I don't believe the content called for it at all.

I almost did not read this book because the production quality bothered me so much but I am glad I stuck with it. Once you get about 50 pages in it will be difficult to not read it through to conclusion. ... Read more

Editorial Review

IN LITTLE MORE THAN HALF A DECADE, Facebook has gone from a dorm-room novelty to a company with 500 million users. It is one of the fastest growing companies in history, an essential part of the social life not only of teenagers but hundreds of millions of adults worldwide. As Facebook spreads around the globe, it creates surprising effects—even becoming instrumental in political protests from Colombia to Iran.

Veteran technology reporter David Kirkpatrick had the full cooperation of Facebook’s key executives in researching this fascinating history of the company and its impact on our lives. Kirkpatrick tells us how Facebook was created, why it has flourished, and where it is going next. He chronicles its successes and missteps, and gives readers the most complete assessment anywhere of founder and CEO Mark Zuckerberg, the central figure in the company’s remarkable ascent. This is the Facebook story that can be found nowhere else.

How did a nineteen-year-old Harvard student create a company that has transformed the Internet and how did he grow it to its current enormous size? Kirkpatrick shows how Zuckerberg steadfastly refused to compromise his vision, insistently focusing on growth over profits and preaching that Facebook must dominate (his word) communication on the Internet. In the process, he and a small group of key executives have created a company that has changed social life in the United States and elsewhere, a company that has become a ubiquitous presence in marketing, altering politics, business, and even our sense of our own identity. This is the Facebook Effect. ... Read more

Reviews

Incredibly Insightful Account of the True Facebook Story
I've just finished reading The Facebook Effect, and it was like a movie I didn't want to end. I'm considering reading it again. As a budding internet startup entrepreneur, learning from major successes, such as Facebook, is incredibly valuable. The problem is, where can you learn about the juicy details that essentially positioned a company like Facebook to be so ubiquitous? Details such as:

- how Facebook gained so much traffic early on
- how they scaled the site school by school
- the major decisions Mark and his team grappled with at every stage
- the strategy and thought process that went through Zuckerberg's mind
- how they raised their first dollar of investment
- what sort of information did they pitch their first professional investors
- etc...

It includes everything that an internet startup entrepreneur would want to know, encapsulated in one of the world's most fascinating phenomenon -- The Facebook Effect.

Enjoy.

Engaging read
Kirkpatrick was for years one of Fortune's best writers, and that talent is on full display here. He assesses the often broad and complex situations around facebook deftly, in accessible and subtle ways. But it's when he lets his interview subjects speak in their own words -- from founder to current and past executives to investors -- that the book really shines. It's better than a good book, it's an important book.

Get affected (yes its the right affect; is effect ever a verb?)
It's hard to comprehend an internet user who hasn't heard of Facebook, sure there are many out there who don't feel the need to use the application, and some who stubbornly resist signing up for various reasons (usually privacy fears or strange phobias of their friendships being somehow changed irreparably by the experience) but the chances are that if you've logged onto the World Wide Web you're familiar with the phenomenon known as Facebook.

In this work, Kirkpatrick takes us through a candid journey with Mark Zuckerberg, the brains behind the whole thing. It's a surprising journey in many ways, for one thing - compared to other `phenomenon' entrepreneurial tales, Facebook's is quite short, spanning barely more than half a decade. Despite this, there is more than enough material for a full non-fiction book, (and a feature length film.)

Most of the information for The Facebook Effect is straight from Zuckerberg himself, who like his creation, is open to sharing details of his personal and professional life with anyone who cares to see them. That is except for the specific details of a few lawsuits brought against Zuckerberg for theft of ideas - which unfortunately for us curious readers, were settled with confidentiality agreements meaning we'll likely never know the exact details of what went down behind closed doors.

The Facebook Effect, is really a story of delirious success, both financial and world changing. Even for those not so keen on geekery and computers, the political wrangling of the company supplies plenty of drama. For those heavily into Facebook, or at least who have been keeping up with the web app's changes over the past few years, you'll enjoy reading about the developments you've already experienced from the side of the developers - in particular I loved the irony when the `newsfeed' was added it allowed users easy access to groups they might want to join, which promptly lead to mass numbers joining anti-newsfeed groups.

Love it or leave it, Facebook has done what Zuckerberg intended it to - it has changed the way we conduct our social relationships - and thus changed society itself. Employees, employers and public figures are re-evaluating how they manage their very public profiles on Facebook, with some pundits predicting that rather than people tending towards circumspect and professional Facebook profiles, society will just come to accept that Facebook will reveal certain aspects of our lives that we don't necessarily want public, and not judge too harshly. Even if you don't have a profile yourself, there is no way you can prevent others from posting photos of you, or revealing personal information about yourself (although one might question why said acquaintance is doing so) so perhaps a society that doesn't judge our drunken photos too harshly is more preferable to trying desperately to keep such things from the internet.

My only real criticism of this book is it left me wishing that I had a college friend on the verge of creating a billion dollar company who just needed a small amount of investment to get started - and that I got to be one of those lucky fools who gave thousands only to have the investment return in the millions...

Fantastic
The book is an amazing read. If you know anything about Facebook and are curious about how technology is evolving the world, you won't be able to put it down. It includes the backstory and all the drama of how Facebook grew from nothing to the newest world changing company of Silicon Valley. It has all the incredible details that you will never see anywhere else. and you feel like you are there and rooting for the heros.

Fast and interesting read
After seeing "The Social Network" I wanted to learn more about the story of Facebook. This book is an amazing commentary on the quirky nature of Mark Zuckerburg, the inter-workings of venture capitalism, and the tech behind the site itself. Sometimes non-fiction books can get dry and boring, but this book kept me intrigued.

Intelligent, Insightful and Enjoyable
I originally purchased this book because I thought it was required reading for someone like me who works in Silicon Valley. However, after a few chapters, I realized this could be one of the top ten business books of the decade and...it was fun to read.
Here is why I found it so enlightening:

-The book was filled with anecdotal stories of incredible financial and business growth challenges, potential technology disasters and public opinion/communication crises--that for the most, were handled swiftly and successfully. Valuable lessons learned were scattered throughout the book, cover to cover. The author made you feel like you were part of the team taking the company through its first five years of phenomenal growth.

-Mark Zuckerberg. You will learn about one of the most visionary CEOs of our time by the way he handled the above mentioned situations, his passion for transparency, philosophy on the "gift economy" and vision of global communication and via a number of direct quotes that the author chose to include (and noted below):

"The best thing we can do is to move smoothly with the world around us, and to have constant competition, not build walls."(commenting on the possible integration of Facebook across the Web)

"We're a vehicle that gives people the power to share information, so we are driving that trend. We also have to live by it." (commenting on user backlash and potential government intervention)

-Finally leveraging social media as a global communications platform; the book contains a bevy of inspirational examples of the potential for positive change--a glimpse into the future, that we should all be aware of.

Excellent
Easily one of the best books I have read this year. A page turner that will give you a more positive view of Zuckerberg versus what the movie portrays of him. Read the book and you will enjoy the movie even more.

A Must Have to Really Understand Facebook.
"Every person under 40 knows Facebook and every person has heard of it. The Facebook Effect is for those of us who have barely heard of it and it takes the Facebook story from the 19 year olds in a Harvard dormitory room to Facebook's social website and business media number one role in the universe. Is a Twitter book next?"

Great Reading
This is a very good book on how facebook was created and became the giant it is today. It is a fast ready and enjoyable. I would recommend it to anyone who's interested in learning the history of facebook! ... Read more

Editorial Review

The book that shows how to get the job done and deliver results . . . whether you’re running an entire company or in your first management job

Larry Bossidy is one of the world’s most acclaimed CEOs, a man with few peers who has a track record for delivering results. Ram Charan is a legendary advisor to senior executives and boards of directors, a man with unparalleled insight into why some companies are successful and others are not. Together they’ve pooled their knowledge and experience into the one book on how to close the gap between results promised and results delivered that people in business need today.

After a long, stellar career with General Electric, Larry Bossidy transformed AlliedSignal into one of the world’s most admired companies and was named CEO of the year in 1998 by Chief Executive magazine. Accomplishments such as 31 consecutive quarters of earnings-per-share growth of 13 percent or more didn’t just happen; they resulted from the consistent practice of the discipline of execution: understanding how to link together people, strategy, and operations, the three core processes of every business.

Leading these processes is the real job of running a business, not formulating a “vision” and leaving the work of carrying it out to others. Bossidy and Charan show the importance of being deeply and passionately engaged in an organization and why robust dialogues about people, strategy, and operations result in a business based on intellectual honesty and realism.

The leader’s most important job—selecting and appraising people—is one that should never be delegated. As a CEO, Larry Bossidy personally makes the calls to check references for key hires. Why? With the right people in the right jobs, there’s a leadership gene pool that conceives and selects strategies that can be executed. People then work together to create a strategy building block by building block, a strategy in sync with the realities of the marketplace, the economy, and the competition. Once the right people and strategy are in place, they are then linked to an operating process that results in the implementation of specific programs and actions and that assigns accountability. This kind of effective operating process goes way beyond the typical budget exercise that looks into a rearview mirror to set its goals. It puts reality behind the numbers and is where the rubber meets the road.

Putting an execution culture in place is hard, but losing it is easy. In July 2001 Larry Bossidy was asked by the board of directors of Honeywell International (it had merged with AlliedSignal) to return and get the company back on track. He’s been putting the ideas he writes about in Execution to work in real time. ... Read more

Reviews

The Discipline of Getting Done With This Book, June 6, 2006

My dogged desire to get through this book ruined the first half of a windsurfing vacation in Aruba.

It's very, very dry going, and at the end one wonders what, if anything the authors really had to say.

It sounds on the surface like cutting edge management practice. For instance Bossidy and Charan introduce the concept of "the social software of execution" as a key element for creating the framework for cultural change in the organization. They go on to elaborate, "A key component of software is what we call Social Operating Mechanisms". At this point I was on the edge of my chair, ready to absorb what was being teed up as an idea of potentially transformational impact. So what are Social Operating Mechanisms? The authors go on to explain, "These are formal or informal meetings, presentations, even memos or e-mail exchanges - anywhere that dialogue takes place".

Wow - this is really deep stuff...

One wonders why the authors don't simply refer to communication rather than Social Operating Mechanisms. And, as a separate matter, the lack of literacy is surprising. Since when, for example, are memos and e-mail exchanges places?

Stripped of all of this, what the authors have to say is simple common sense that can be summarized as follows:

* Successful companies have the important ability to get things done (or execute).

* Good leadership (knowing people, setting clear goals, following through, etc.) is a prerequisite of execution.

* Reward systems, communications, and feedback processes need to foster action and provide incentives for getting things done.

* Some people are more capable than others are to get things done. These are the people that should be put in positions of authority in the organization.

* Strategic plans need to reflect the real world and link to operational plans. They also need to be tested for feasibility in the context of the organization's capabilities.

None of this is rocket science, that is until one begins to cloak it in management techno speak such as that described above.

And one more thing. The editor should have had a "robust conversation" with the authors about their overuse of the word "robust". It's really annoying.

Check your own personality for execution traits, August 3, 2004
What's left to say about this book on execution? With 130 online reviews many issues are covered already. One point's missing, though. Look at the reviews; they are divided into two camps. The reviewers either think this is a mediocre book with very basic ideas (management 101) or they see the light. The latter realize that there's no need for new acronyms or faddy words in the management-speak. "Execution" is about getting things done, being persistent and realistic, as well as managing the 3 core processes; strategy (why? and what?), operations (how?) and people (who?).

Building a performance culture is never as easy as it sounds. Looking back a few years, try to recall a few of those companies with great media attention and grand strategic visions. Many of them failed. And many of them will fail again and again, because the heroes are strategic visionaries that never bothered to deal with the issue of execution; continually and personally making sure that things were actually done. You know, when all is said and done, usually more is said than done...

If you found this book fascinating, you'll probably have some of the execution traits hidden in your personality preferences. If you want to check it out, you might visit some of free Internet sites for a test (e.g. keirsey.com). For a business, I believe it's paramount to make sure that you have a well-balanced team on all levels in the hierarchy. This also includes having enough executives with execution traits. Advice: Don't assume you have it; test it!

Conclusively, this is a great book. I liked it so much that I even also bought the audio version! The reason for the audio version is that these execution ideas simply are needed to be absorbed over several readings (or listenings). Otherwise, you won't be able to start changing your behavior (which you can change, unlike your innate preferences). While commuting, I often turn the CDs on and find it inspiring to forget about traffic jams and just getting the views of Charan and Bossidy in their own voices. However, I do agree that the book easily could have been shorter.

Peter Leerskov,
MSc in International Business (Marketing & Management) and Graduate Diploma in E-business

Tips for the CEOs and Group Heads of Large Conglomerates, June 12, 2003
Larry Bossidy is clearly a five-star leader, and Ram Charan is a gifted consultant and teacher. It surprised me that their book didn't work as well as I had hoped.

Execution's title confused me. Hopefully, you won't have that problem. I thought Execution would be all about how to take a strategy and operating plan and implement them well. Instead, Part III makes it clear that Execution is about meeting overall financial objectives through being an effective organization in setting strategies and operating plans to serve customers well while building an organization that can implement the plans for outperforming competitors. Part I, by contrast, makes it sound like Execution is only about implementation, noting that almost all organizations have the same strategies (or can quickly get them from consultants), access the same top talent and can easily acquire and employ competitively effective innovation.

I also thought Execution would apply to all business people. Instead, the context for most of the AlliedSignal (Honeywell International's name when Mr. Bossidy became CEO there the first time) and General Electric examples which dominate the book is that of the CEO or group executive to whom divisions report in a large conglomerate. In this sense, Execution is like reading the latter chapters of Mr. Welch's book, Jack.

The main difference between Jack and Execution is that Execution tries to build a framework for the book's concepts while sharing examples (mostly of failure) from other organizations. Mr. Charan's sections of the book mostly focus on that positioning. Mr. Bossidy mostly tells about his own experiences at AlliedSignal and Honeywell. Mr. Bossidy, of course, worked with Mr. Welch at General Electric for many years. Mr. Bossidy reports that you could take execution for granted at GE, but that it was lacking at AlliedSignal when he arrived. The two coauthors alternate in providing long monologues on the chapter topics and subtopics.

Three aspects of Execution are valuable to almost any business leader: how to hold a strategy review (chapter 8), building an organization (chapter 5) and the "Dear Jane" letter to a new leader (conclusion).

For those who would like to become CEOs and heads of divisions of large, disparate organizations, Mr. Bossidy's many anecdotes from his experiences at Honeywell International about how to do the leader's job will provide a valuable model that can be used repeatedly. In many such organizations, there are no good leadership examples and this book can help fill the gap.

Here's the book's structure:

Part I: Why Execution Is Needed

Chapter 1. The Gap Nobody Knows

Chapter 2. The Execution Difference

Part II: The Building Blocks of Execution

Chapter 3. Building Block One: The Leader's Seven Essential Behaviors

Chapter 4. Building Block Two: Creating the Framework for Cultural Change

Chapter 5. Building Block Three: The Job No Leader Should Delegate -- Having the Right People in the Right Place

Part III: The Three Core Processes of Execution

Chapter 6. The People Process: Making the Link with Strategy and Operations

Chapter 7. The Strategy Process: Making the Link with People and Operations

Chapter 8. How to Conduct a Strategy Review

Chapter 9. The Operations Process: Making the Link with Strategy and People

Conclusion: Letter to a New Leader

Execution addresses these problems. First, many company and division heads have little knowledge about the businesses or the most important functions and processes needed to prosper. Boards, for example, often bring in a brilliant person who has performed as a "role player" elsewhere, and they cannot scale up into the CEO job. When a company has had poor leadership, its processes and organization also become weak and it's hard to get anything done. There are several poignant examples including Richard Thoman at Xerox and Richard McGinn at Lucent Technologies. It's hard to fix that problem. It took years at AlliedSignal and can be quickly lost (which happened in the two years after he retired the first time). That's why Mr. Bossidy had to come back to restore execution (as he means it) at Honeywell International. Lacking these perspectives, the business system is misdirected (see The Fifth Discipline).

Second, many leaders make bad assumptions about their circumstances. Acting on those assumptions makes matters worse.

Third, companies plan to pursue strategies for which they lack the processes and organizations to implement. The strategies need to match the ability to execute.

As a solution, you as leader must:

"--Know your people and your business
--Insist on realism
--Set clear goals and priorities
--Follow through
--Reward the doers
--Expand people's capabilities
--Know yourself."

I was uncomfortable with many of the examples. The unending praise of Dick Brown at EDS didn't seem to make any sense knowing that EDS's stock melted down and he was asked to leave. He was in big trouble when Execution was written, having encouraged his people to grow by taking on large unprofitable new accounts. It seems like he might have been executing the wrong strategy, one that couldn't be executed. Most of the "failure" examples are anonymous which makes them less credible and less compelling. Finally, Dell is heralded for executing very well (which it certainly does). However, in describing how the company has evolved its business model to outperform competitors, Execution fails to notice that its business model innovation has been essential to success. No competitor has this business model. Execution's assumption that everyone can have the same strategy ignores research that shows that business model innovation creates unique strategies and superior execution compared to making the old business model and strategy more efficient.

Unless you are shooting to be CEO of GE or Honeywell International, I suspect that you would do better to read Good to Great for getting ideas related to improving effectiveness.

After you finish this book, ask yourself what one thing you could improve would make the most difference in your organization's performance over the next week, month, quarter, year and three years.

How, Why, and Why Not, June 1, 2002
This may well prove to be one of the most influential business books published in recent years. In it, Bossidy and Charan (with Charles Burck) focus on what effective execution involves. Having read or observed interviews of Bossidy, I realized while reading this book that his is the primary role in the collaboration. Mercifully, the reader is spared vague theories as well as buzzing words and overheated phrases. Anchored in a wealth of real-world business experience, the book's core insights could be of substantial value to literally anyone who currently has problems "getting things done", doing them well, and on-time.

In the first chapter, the authors identify what they call "the gap nobody knows." That is somewhat hyperbolic. Obviously Bossidy and Charan are aware of it as are, presumably, countless other decision-makers in various companies which sustain profitability while attracting and then retaining "the best and the brightest" people, often from competitor companies. In any event, the authors correctly stress the importance of eliminating the gap between recognizing what must be done and getting it done. The authors focus on three former CEOs of major corporations, each of whom they hold in high regard: Richard A. McGinn (Lucent Technologies) G. Richard Thoman (Xerox), and C. Michael Armstrong (AT&T). However, McGinn was "clearly out of touch" with day-to-day operations during his last year as CEO. For whatever reasons, Thoman lacked two essential "building blocks": the right people in key positions on his management team, and, appropriate core processes by which to implement his strategy, one which the authors view as being sound. As for Armstrong, the ambitious growth strategy he pursued was "disconnected from both external and internal realities" such as the regulatory climate at that time and the AT&T culture which was resistant to the major changes which Armstrong's strategy required. These three examples illustrate that even those with exceptional intelligence, energy, and character can fail to achieve their worthy objectives. The authors acknowledge that "Shaping the broad picture into a set of executable actions is analytical, and it's a huge intellectual, and emotional challenge." Some organizations and their leaders succeed. This book explains how. Most organizations and their leaders do not. This book explains why.

Some readers of this review may incorrectly infer from my comments thus far that this book was written primarily for and about senior-level corporate executives. For that reason, I reiterate that all of the observations, evaluations, and suggestions provided in this book are directly relevant to almost anyone in any organization (regardless of size or nature) who is expected to "get things done," whatever those "things" may be. I agree completely with Noel Tichy (author of The Leadership Engine) that every organization needs aggressive and productive initiative at all levels.

Including the word "discipline" in this book's title was intentional and is appropriate. Obviously, those who are decisive are not always successful. (What I call the "Fire! Ready! Aim! Syndrome" is far too common, especially among less-experienced but eager and ambitious executives.) The most effective decision-making process is one based on sufficient and relevant information which has been rigorously analyzed. (Thus evaluated, information becomes intelligence.) Relevant and (especially) painful realities are taken into full account. All appropriate options are identified and prioritized. When a major crisis occurs which requires an immediate response, the decision-maker(s) involved must also have courage. Discipline is essential throughout this entire process, a discipline which includes what Daniel Goleman characterizes as "emotional intelligence" or what Ernest Hemingway characterizes as "grace under duress."

As indicated previously, I think this book will be of great value to any decision-maker (regardless of title or status) in any organization (regardless of size or nature) because the authors focus relentlessly on HOW some decision-makers get results and WHY most others don't. I recommend this book to individual executives, of course, but also to those involved in management training programs which involve others. (It would be terrific for developing "fast trackers."). Also, if and when appropriate, this book in combination with Michael Hammer's The Agenda would be an excellent "homework assignment" to be completed prior to an executive retreat or (as some prefer) advance. Moreover, I think anyone in the management consulting business should also read it. If ever there was a time when clients expect those such as I to help them "get things done," is it now.

Those who share my high regard for this book are urged to check out Hammer's book as well as David Maister's Practice What You Preach, Jim O'Toole's Leading Change and The Executive's Compass, and Kaplan and Norton's The Strategy-Focused Organization.

Are you the one to get it done?, June 26, 2002
The two authors have obviously worked together before writing this book and have now collaborated on practical lessons learned that leaders should want to stay sharp on. I have met Ram Charan at numerous meetings and found that his greatest strength is challenging people to think. I do not always agree with his insights, but I do like how he makes me and the reader think about how they act as a leader.

Now I will tell you that I learned from Larry Bossidy's comments in the book. I actually sought out his comments as the book went on. Why? Well, each and every section that he contributed was no nonsense, practical advice. It appeared to me that his comments were straight from his thoughts, as if he were speaking. Spontaneous and candid. I made a list of take-away actions that I wanted to check myself on or apply in the future.

The basic principles of the book are simple: identify the best people, give them clear objectives, challenge them to improve and check up on them frequently. It sounds too simple...but the simple things that Bossidy mentions are the important aspects of the book. Listening. Writing follow-up letters outlining the expectations of the leaders previous day interactions with the boss. Talking with people to find out for yourself what is going on, how people are being managed, what management is doing right and what they are doing wrong.

I found the advice from Bossidy the real key to the book. I especially recommend this for all leaders that think execution is something that is delegated for others to do. I also recommend this for any leader, no matter what size company, to validate the basics in their personal toolkit...are you "executing" the basics?

Content Light, December 23, 2004
This book is absolutely painful to read. Execution is an elementary managerial guidebook - basically Management 101.

The book is light on real, substantive content. Experienced managers (like those so often used as examples in the book) will fall asleep reading this book. The crux of the book is that good leaders should know their people, insist on realism, set clear goals, follow through, reward the doers, expand people's capabilities, know yourself, and be personally involved in hiring your managers. Duh!

There are several letters used as examples of in-depth analysis, careful evaluation, meticulous due diligence, and deep personal involvement in the operating plan development. I personally felt that the letters (like the letter used on pages 255 to 257) demonstrated that only a superficial and cursory analysis of the operating plan had been performed.

The only possible addition to the world of leadership science is the repeated recommendation (throughout the entire 265 pages) for implementing Six Sigma and digitization into organizations. Six Sigma is an excellent quality management program. I highly recommend using Six Sigma, but this is not necessarily new to the world of management.

I personally felt that the authors wrote this book not so much for the purposes of adding something truly relevant to the business world, but for self gratification and personal agrandizement. They share personal example after personal example of wins and successes leaving one to wonder, "why have I never heard about these guys? They must walk on water!" I have heard about Jack Welch, their mentor, - perhaps because he also suffers from a healthy self-promoting ego structure.

I believe success also usually masks the personal failures - something almost completely absent from the book except in the examples of others. I think sharing a few of their personal failures would have given the book a level of authenticity. Moreover, the personal trials and failures would be meaningful for learning purposes.

The writing style used in Execution alternates between third person, first person (Larry), first person (Ram), and even an interviewing style. I went crazy with the style issues. Most of the time I was just trying to remember or figure out who was writing/talking/speaking. I am surprised that this book made it through editing.

Execution is filled with redundancy and repetitive comments driving the reader crazy. I read the entire 265 pages thinking maybe the gem or nugget of information is saved for later in the book. Unfortunately, all that is contained in the latter pages is repetitive content and more personal agrandizement.

I would never compare this book to Good to Great - as many reviewers have done. Good to Great is quite honestly good - it relies on data, facts, and research. In fact, General Electric (their oft cited example of a role model company) missed being included in the Good to Great companies list. GE stock outperformed the market by about 2.8 times during the period between 1985 and 2000 while the average Good to Great company outperformed the market by 6.9 times (more than double the performance of GE). General Electric was good, but not great.

This book is half baked, poorly written, and content light. There are a number of half finished stories and examples to demonstrate various points throughout the book. For example, Larry Bossidy shares an example of advice given to his son in preparation for his first planning session as a Vice President at GE Capital on page 208 (making me wonder about nepotism policies at GE). The story shares the fatherly advice, but never conveys the resolution of the story or how things turned out. This happens repeatedly throughout the book. It leaves the reader wondering "what happened?"

I can only give this book 1 star. I sincerely hope someone else will write on this subject. Execution is invaluable in today's business climate.

Good Reading for Corporate Executives, August 3, 2003
I bought this book because I thought I could learn something new from a couple of high level people. Unfortunately, it failed to deliver on that premise for me, though reading this book was not a waste of time.

My wife and I own a relatively small service business. Many of the techniques and suggestions in this book are best for a large organization with lots of resources. For instance, the book talks about conducting strategy and reveiw sessions several times a year. If we took our top 10 people out for a couple of days each quarter, we'd close because we only have 10 employees, including us! In fact, much of the analysis suggested can be done even more regularly for a small business since your focus is on your business only and not several units.

However, the chapters on the people process were helpful. Having the right person in the right job is important in any organization, no matter how small. I intend to use several ideas from this section, scaled down for a small business like ours.

I found some of the writing occasionally pompous and filled with cliches. Phrases like "robust dialogue" and "social software" sound like high-priced consultant double-speak. Also, I got the feeling that Mr. Bossidy always knows he's the smartest guy in the room.

The bottom line, however, is that if you are a rising executive at some big manufacturing corporation that is implementing Six Sigma processes, you will probably find this book helpful. If you own a small service business like we do, you could probably spend your reading time in better ways.

Nothing new or original, November 1, 2002
I did not find anything new or original in this book. The authors start off talking about "The Gap Nobody Knows" (by Gap they mean Execution) and go on to say that "countless companies are less than they could be because of poor execution, and the gap between promises and results is widespread and clear ... as if no one has ever heard about the words strategy and implementation and execution before. I don't know of a single manager worth his/her salt who hasn't heard and doesn't know about the importance of execution. The authors try to grab attention by coining and explaining terms like asset velocity which is just another name for asset turnover ... a metric that has been in existence almost as long as accounting itself. They spend an inordinate amount of time explaining how and why Dell Computer Corporation has a low cost structure and efficient operations - as if we hadn't already heard this from numerous sources over all the decades that Dell has been in business. They pontificate that "unless you translate big thoughts into concrete steps for action, they're pointless," and use negativisms like "if you don't know how to execute, the whole of your effort as a leader will always be less than the sum of its parts." All these are age old ideas already beaten to death in business literature. I couldn't find anything new or original. This book might be worth spending your time on if you have never read another management book and don't know how to search for a really good one either.

A different management book, August 12, 2002
This was an atypical management book - rather than focus on "the idea that changes everything" or "the next revolution", it dives into the nuts and bolts of getting things done. In today's economy, this is what we need.

The authors bring distinct viewpoints: Larry Bossidy has the hardnosed viewpoints of a product of the GE management machine. He lived through the GE execution culture and reapplied it at the Honeywell. Ram Charan displays the broader view of a business school professor with extensive senior level consulting.

The book starts with a self evident description of why execution is needed. It moves into the types of behaviors a leader should exhibit, and how they set up the framework for change. It concludes with the three major processes an execution oriented leader should run: people, strategy and operations.

Yes - the book is generic, but it has to be to reach a broad audience. The concept of focusing on all 3 areas: people, strategy and operations is obvious, but important. In the context of calling them processes - it becomes a discipline. The general management focus and need for ongoing persistance is valuable to people of all levels.

There are some interesting ties to other management gurus. Tom Peters - as outlandish as he may be - is also big on getting things done. Deming's quality approach is ultimately about application. Collins in Built to Last focuses on execution - the steady and stable leader trumps the charistmatic showpiece. The ideas developed here have been building for some time. Their time to come to the front of every executive's thought is now.

The book does have a few knocks:
- If Bossidy built such a great culture for success at Honeywell, why did it fall apart immediately after his exit?
- Is there any hard research behind this? (With a former Harvard and Kellogg alum, you'd expect some)
- There is much less focus on the customers than one would expect.

Despite these small misgivings, this is most definitely a useful read for any manager or aspiring leader.

You can't really learn to execute from a book, July 24, 2002
Bossidy and Charan's book has a simplicity in its advice that is a breath of fresh air after much of the new economy hype that has filled the bookshelves in the past few years. The book argues that the primary reason for much of the poor corporate performance we've seen in the past few years (outside of outright dishonest companies like Enron, WorldCom, and their ilk) has not been muddled strategy, lack of innovation, or an ever more rapidly changing marketplace but poor execution. Conversely, they argue that great execution has been one of the cornerstones for the great corporate success, such as General Electric. (Jack Welch looms large in the background here.) And good execution is a lot more commonsensical than you might think: it is merely insuring that corporate strategy is well-conceived and solidly grounded in the company's human and operational capacities.

This is a difficult subject for a book, because there is no cookie-cutter methodology the authors could provide that could help you drill deeply into your own company's strategy, staffing, and operational plans and really root out the strengths and the weaknesses of them. Good execution, they argue, has its roots in asking good probing questions, questions that will be different in each situation. The authors include a number of general questions in each area to help begin this probing, but that's about as far as a book can take it. The bulk of the book, though is anecdotes illustrating how this has worked either well or poorly at other companies. If you're looking for clear-cut instructions, this is likely to be disappointing.

What is most interesting about this book is how well it dovetails with Jim Collins' recent bestseller "Good to Great." Collins' book describes the general patterns to successful corporate change (or execution). Bossidy and Charan's book describes some of the nuts and bolts needed to follow that pattern, from styles of leadership, getting the right people in the right jobs, doing honest assessments of a company's capacity, and then working toward goals with great focus. If you enjoyed Collins' book, this book can help you figure out better how to make great execution happen in your own company. ... Read more

Editorial Review

A philosopher/mechanic's wise (and sometimes funny) look at the challenges and pleasures of working with one's hands

Called "the sleeper hit of the publishing season" (The Boston Globe), Shop Class as Soulcraft became an instant bestseller, attracting readers with its radical (and timely) reappraisal of the merits of skilled manual labor. On both economic and psychological grounds, author Matthew B. Crawford questions the educational imperative of turning everyone into a "knowledge worker," based on a misguided separation of thinking from doing. Using his own experience as an electrician and mechanic, Crawford presents a wonderfully articulated call for self-reliance and a moving reflection on how we can live concretely in an ever more abstract world. ... Read more

Reviews

Radical, Timely, Moving.
This could easily be the most important book a parent or young adult reads this year.

Matt Crawford's Shop Class as Soulcraft touched a chord with me. Both his life and his book are a rebuke to the assumptions which govern modern ideas about work, economics, self-worth, and happiness. Crawford would seem to have lived the American Dream right into his twenties. He finished his formal education (which, to judge by the breadth of references to literature and philosophy in the book, wasn't shabby) and was quickly hired by a Washington "think tank". Any young, aggressive climber would recognize this as a coveted place from which to launch of career. But where others would see a rapid ascent up the social pyramid, Crawford sensed emptiness. He left to work in a motorcycle repair shop, where he got his hands dirty, fixed bikes, and used his brain. Where others might see "mere" manual labor, he learned the value of a tangible skill. He now shares with readers his thoughts on this value, how it is vanishing from modern society, and the implications for us as a people.

Crawford traces the evolution of shop class, its intended and unintended consequences, and its subsequent rapid retreat from our schools. He lays out the historical transition from individual craftsman to interchangeable piece of a human assembly line during the industrial revolution. Much more frighteningly, he reviews how the same approach is well underway in the "white collar" information economy. Whether one has lived the absurdities of cubicle farms first hand or only through Dilbert, it is not hard to see how the modern, homogenized college prep education and liberal arts degree leaves a modern worker predisposed to try to fit as a cog in a modern information assembly line. Crawford taps a fundamental part of the psyche as he reminds us of the inherent pride in being able to say "I fix bikes" when asked what he does for a living. Does a country really need every high school student to strive to attend college? Crawford makes the case that for many this will not only be a waste of time and money, but will ultimately land them in careers in which they have trouble seeing the value of what they do. Too many will, in the words my son once used to describe my job, "type on the computer and answer the phone".

This advice may be coming at a perfect time. Although he claims it is not his goal to discuss the economics of working with one's hands, Crawford still makes a compelling case. As anyone who has called tech support can vouch, it is easy to transfer information economy jobs overseas. Helping someone deal with computer software can be done from India or the Philippines, but you can't hammer a nail over the internet. Crawford builds his case with anecdote, WSJ articles, and quotes from professors of economics. We may all make jokes about droopy overalls and plumber's crack, but there's a good chance that that plumber has better job prospects than many in the graduating college class of 2009. Plumbing may not be totally recession-proof, but there will always be a demand for a person who can fix a plugged drain.

Still, the best parts of the book are where Crawford talks about what working with the hands can do for a person's mind and soul. When he describes the satisfaction of hearing the roar of a motorcycle leaving his shop, knowing that it arrived in the bed of a truck, it is clearly heartfelt. His desire to share that experience with others is palpable. Well, maybe that not exactly it. More the desire to say "there is another path" to the members of our society, in particular those about to shuffle off to college because that's simple what one does after high school. To them I would say: read his book, and consider how your brain might be engaged by the thoughtful application of experience and labor in a trade. Decide if the potentially hundreds of thousands of dollars of college and years of debt really return enough value to your life to make college worthwhile.

For the rest of us, now past that decision point, consider Crawford's thoughts on freedom and specialization. Maybe it _does_ make financial sense to contract out our projects and repairs, but does that necessarily make it wrong to try to fix things ourselves? Are we truly free if so much of the technology we depend on is beyond our ability to repair it? Perhaps Crawford has a point, that there is more to work than simple money and time. Maybe dirty hands will be good for our souls.

"A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects."
-Robert A. Heinlein

A great book with so many useful lessons.
It's hard to put into words the message I got from this book. As a college graduate with dual degrees in economics and engineering who spends most of his day in a cubicle, pushing paper and feeling my soul drain out of my body, this book put into words a lot of the feelings and internal conflicts I struggle with daily. About a year ago, I grew tired of not working with my hands and using my creativity so I enrolled in a machinist training program at a local community college to satisfy my needs. I got so much out of working with my hands, it was almost therapy for me. The author writes about how much we can gain from working with our hands, stimulating creativity, problem solving, and a real connection with a tangible result from our work. Think of how many days you've spent at the office, making conference calls, sending emails and filling out spreadsheets, only to go home and wonder "What did I really do today? What is the proof of my work today?" Reading this book puts a lot into perspective and extolls the virtue of skilled trades, and the author urges a well-deserved re-examination of the skilled trades as a rewarding career option.

"you can't hammer a nail over the Internet"
"Today, in our schools, the manual trades are given little honor. The egalitarian worry that has always attended tracking students into "college prep" and "vocational ed" is overlaid with another: the fear that acquiring a specific skill set means that one's life is determined." (19)

"Occupations based on universal...knowledge are more prestigious, but they are also the kind that face competition from the whole world as book learning becomes more widely disseminated in the global economy. Practical know-how, on the other hand, is always tied to the experience of a particular person. It can't be downloaded, it can only be lived." (162)

These two quotes pretty much sum up the focus of this book, that we have lost value and appreciation for craftsmanship and hands on work in this country in favor of a ridiculous belief that somehow the only work that is to be valued is work that is performed "intellectually" in a shirt and tie. Crawford left a political think tank to start his own motorcycle repair shop and this book is his reflections on how our country has come to view work, the values and unstated labels we place on "white collar" vs. "blue collar" work, and how our schools and government are partly to blame for our unrealistic beliefs that everyone needs to go to college to have a "good life." As someone who lost more then $20,000 a year in a "blue collar" job to happily go into the "white collar" teaching profession, only to specialize in teaching a majority of future "blue collar" kids, I have a passionate interest in this debate. I have and will continue to advocate for a revision of these destructive and condescending educational beliefs. Crawford believes, and I agree, that we have turned our schools into "square holes" with no room for our "round" non-college bound kids to fit into by eliminating trade oriented classes such as wood and auto shop in favor of more (less expensive) college prep classes. Crawford reflects on the Catch-22 of addressing or changing this situation by stating:

...any high school principal who doesn't claim as his goal "one hundred percent college attendance" is likely to be accused of harboring "low expectations" and run out of town by indigent parents. This indignation is hard to strand against, since it carries all the moral weight of egalitarianism. Yet it is also snobbish, since it evidently regards the trades as something "low" (32).

I deal with kids everyday in my high school intervention classes that exhibit what happens when years of passive aggressively telling kids through our educational actions that their interests and their skill sets are not as "good" or "valuable" to our community as those of the college bound kids. My kids repeatedly tell me that high school has absolutely no purpose or use for them and looking at what they are up against I can sympathize with their frustrations. When students believe this about school it only results in negative self images and frustration which then, over time, turns into behavior and truancy issues as these "round kids" struggle with being forced into our school's "square holes."

I wish school boards and administrators would take the time to read and think about the issues that a book like this raises so we can begin to give the trade and non-four year college track kids the respect and dignity they deserve, and more importantly, are entitled to. After all, these are going to be the only truly secure professions in our growing global economy. As Princeton economist Alan Binder states in the book, "you can't hammer a nail over the Internet" (34).

A Professional Perspective
I connected with this book in several ways. First, while in Junior High (remember when it was called that) in the 60s I was told by my guidance counselor I couldn't take Shop II because I was on a college prep track and Shop 2 was for those kids who would be blue collar workers. The bias of those comments stuck with me all these years. Second, there is an option pursued by myself and many of my close friends. While I was a white collar worker my entire professional career my hobby was restoring and maintaining cars. I needed the satisfaction of that work so took it on as a hobby and developed mechanical proficiency many mechanical skills including engine and gearbox rebuilding. After reading this book I realized many of my close friends have the same approach. A teacher who built his own house. A doctor who hand builds kayaks. A CPA who welds, restores and works on cars. Somehow we all value working with our hands and while we don't do it to pay the bills we all do it to satisfy our souls to great success. Crawford explains why we all feel this way. All of these friends have now read the book and enjoyed it. Crawford nailed it.

A Return to Common Sense!
Working with one's mind instead of one's hands has been considered "better" for as long as I can remember - increasingly so in recent years. Crawford's "Shop Class as Soulcraft" will hopefully help eliminate this prejudice.

Crawford identifies two problems with this thinking. The first is that being able to fix things allows one some control over their life, instead of having to turn to a repair shop when eg. a "low oil pressure light" comes on in one's car. The second is that today's average worker is mired in an ill-defined world where it is often not possible to evaluate the quality of one's work, or to derive a sense of pride. Worse yet, he/she is often required to do a task incorrectly, to suit corporate biases - eg. employment in a "think tank." Worst of all, is being placed into a white-collar situation (managing, writing abstracts) without any area-specific knowledge, and being required to act guided only by a standard management outline. A third, not mentioned by Crawford, is that on-site working with one's hands is probably the occupation most protected from outsourcing. And a fourth is that it bypasses the increasingly exorbitant expenses of going to college.

Crawford doesn't bring these insights down purely from an ivory-towered abstract academic world - he himself owns a motorcycle repair shop and has worked on an assembly-line and as a VW mechanic. He clearly enjoys being his own boss and the mental challenge of diagnosing motorcycle problems and selecting the best repair strategy. On the other hand, it is a bit too easy to see the book as an apology for the career choices he has made, rather than a tested thesis. (P.S.: This reviewer has sympathy for Crawford's conclusions, having worked as a college instructor, middle/upper manager in a sea of back-stabbing and political correctness, and a cross-country truck-driver.)

A must read look at life in the new economy
As an avid motorcyclist (Harley-Davidson) and cubicle dweller (software engineer), I was intrigued by this book: it spoke in intelligent, cogent, and approachable terms to what I have observed in the workplace - and to what I have felt in my own soul searching. Through introspection, there was a realization (epiphany?) that I get a better sense of satisfaction changing my own oil or getting the FXDWG to start in the springtime than I realize installing a major piece of financial software.

While the author is obviously a man with an above-average(quite possibly off-the-charts)IQ, he remains approachable with his occasional wry sense of humor and his pertinent, personal anecdotes. The reader is left pondering what should have been obvious to him all along - there is recognizable and important personal value in working with one's hands. Success - economic and psychological - comes from recognizing that supplying a demand on one hand and exerting noble effort on the other leads to rewards. There is an overabundance of college graduates - armed with a four-year liberal arts degree - hoping to find white-collar office jobs that probably pay less than their freshman year's tuition. Maybe they should fill the demand for competent, honest carpenters, painters, and mechanics.

My formal education (catholic grade school and junior high school under the tutelage of the Sisters of Saint Joseph, catholic high school overseen by the Christian Brothers, catholic college - B.C. - directed by the Jesuits, and graduate school at a world-renowned research university - B.U.) steered me to the white-collar destiny that promised prestige and reward. While I have had economic success - an above average income and benefits package - there has been something lacking: an actual physical product that can be recognized and appreciated. A legacy is missing as I am invisible to those who use my "product" (i.e., the usable software). People are impressed to hear that I am a software engineer armed with a graduate degree - but, am I impressed with myself?

Popular culture depicts men who work in the blue-collar world as primates (I never got through more then 5 minutes of the television program "Tool Time" since the main character actually grunts) and their jobs as something you "end up" doing. Becoming a mechanic or plumber is something that was eschewed and left to those who did not have adequate SAT tutors - or so I thought. The author challenges this long-held notion with pertinent comparisons between white-collar and blue-collar work, the first often seen as cognitive; the latter as just physical and unskilled. As we push white-collar workers more towards unskilled, autonomous labor we realize that the white-collar workplace is no longer intellectually challenging at all. One project I am currently working on will dramatically decrease the number of times a data entry operator has to look left and right while processing a form - how zombie-like. And, these zombies are required to have college degrees.

Recently I began a course in furniture upholstery through a local adult education school. It was for fun but opened my eyes. There is as much cognitive and creative activity in this area then in any other I have tried. A tired piece from a thrift store can be brought back to life, appreciated, touched, admired... and resold. No high school or trade school offers this particular training anymore. There may be a chance for a lucrative business - not to mention the desire to get to work early and leave late that I have not had in a long, long time.
... Read more

Editorial Review

Reviews

Overrated, extremely light on content, January 22, 2009
I rarely review books, but this one was such a waste that I'd feel guilty if I didn't at least TRY to persuade you not to buy. The main problem with the book, as other reviewers have alluded to, is that it sort of tries to BE a design masterpiece rather than teach you. The design is interesting, but it is to the point that the content is subordinated to the design. There are maybe 5 pages worth of useful content.

Another irritant to me is that this is by far the most commercial book I've ever seen (more ads than a magazine). It seemed that every few pages I was being told to buy this book, or buy all of some other guys books. There is a two page section that is taken from Guy Kawasaki's blog. The whole thing is incredibly derivative (but shallow).

Finally, and this I can take responsibility for, it didn't meet my needs because I am not Al Gore, nor am I the CEO of a company. If I gave a presentation in the style of this book I'd be laughed out of the office. I'm an analyst, and the warm and fuzzy slides would not be good. Duarte's advice on data intensive slides? "Both [of Stephen Few's] books should be on your shelf along with everything Edward Tufte has written."
I have two Tufte books and they are virtually identical, I don't see myself buying his others (and they suffer from the same lack of relevance to corporate analysts). Disappointing.

Yet another designer's book, September 12, 2008
I have to rain on the parade of this book and Garr Reynold's book (and other ones).

The message is "I'm one of the best slide designers in the world (which is true) and I'm going to show you WHY."

The message should be "I'm one of the best slide designers in the world and I'm going to show you HOW."

You'll see plenty to interest you, but unless you're a full-fledged graphic designer you'll never recreate these slides. Imagine putting this book (and the Reynold's book) into a room with some of your worst slide creators, or even yourself. Would you see an improvement in their skills? I doubt it.

You might as well become a painter by reading books that have the world's greatest pictures in them. Even though there is explanatory text here it isn't enough to bridge the gap.

To see a book written for its audience, try the "Before and After" books by Jon McWade which deal with desktop publishing. Unfortunately John has not yet tackled slides, but you can see an page layout idea and make it yourself in minutes.

So, sorry about this, because both this and Reynold's book are "nice" books. The energy has gone into the book's design and production rather than the content. But that makes them coffee-table books, and unless you have a coffee table in your office I'd advise that you give both of them a miss.

Emperor's New Old Clothes, November 25, 2008
I had high hopes for this book. It looks very nice. It has the right nods to Tufte early on. But...

But the true content is very thin, includes a load of chart junk (the anti-Tufte - I guess the true cue is in the title, this is a PowerPoint book) and page after page of abstract diagrams demonstrating "flow" - much like the woeful second half of "Say it with Charts" which is about 50 pages of arrows.

Very very disappointing indeed.

don't buy this book, October 27, 2008
Don't buy this book. The text is maddeningly small and poorly contrasted. With postage stamp size visuals it's like reading a telphone book.
Get The Non-Designer's Design Book by Robin Williams and check out the website of the author of The Craft of Scientific Presentations, Michael Alley for templates and research based design tips.
With these two resources you'll have everything you need without having to wade through the padding in Duarte's book.

AMAZING--not about slides, about mind to mind communication, August 26, 2008
I just destroyed this book with folded pages and ink annotations, so the perfectionists out there may want to order two copies, one for eating and one for sharing. The price is phenomenally reasonable, especially for something that is all color and totally elegant.

This is not about powerpoint slides. If anything, it is a very subtle but explicit critique of how retarded they still are (e.g. no separation between bullet groups). This is an utterly inspiring combination of wisdom, education, visual excitement, and plain fun that "lives" what it preaches.

When I get back to the office I am going to read this book again while I create a briefing on the Earth Intelligence Network and educating the poor one cell call at a time that respects the deep knowledge being imparted by this author and her team. Mills Davis, visualization and semantic genius (Project10X) called my presentation "dense" yesterday, and I needed this book to understand just how polite he was being.

Bottom line mechanically: 10 slides, 20 minutes, 30 font size MINIMJM. For the advanced audiences, 20 slides, 20 seconds each, 6 minutes and 20 seconds total.

I read and reread sections, and the recurring thought in my head was that this book may well be all one needs to run a semester long course on the communication of important complex ideas. The author does not just show a correct slide, the author breaks down every aspect (e.g. fonts, color, grid layouts, use of images, creating your own art) into separate chapters with very ably-illustrated palettes covering all the options. I have a note on this, "nuances are unpackaged and illustrated."

I note the author's admonition that change across the presentation is a distraction, that animation should support the message and the continuity of understanding.

For large organizations, the author covers templates as a means of harnessing the diversity of knowledge of varied functions and employees, while maintaining a consistency of brand. BRAND is huge within this book, and in this book BRAND is not a legal term, it is a philosophical term. I am hugely impressed by a chart showing UK companies that treat BRAND as a design imperative being so much more competitive and profitable than those that do not. This book is not just asserttions and demonstrations, it is fact and case based and eminently authoritative.

I learn for the first time that powerpoint slides can be instantly made to be black and white to focus audience on the speaker, or made all white, by pressing B or W. Why didn't I learn that from Microsoft? Because their tool bar is not designed to teach....perhaps?

Special pages for me:

10-11 The Presentation Ecosystem (Message, Story, Delivery)
12-13 Time Estimate for world-class presentations (36-90 hours)
18-19 Rick Justice and 27 slides on eight topics (organization)
58-59 Making Diagtrams Work Together
64-65 Following the Five Data Slide Rules (Tell the Truth is Rule 1)
82-83 The (Financial) Value of Good Design
116-117 Lose the logo on every slide....
142-143 Dissecting a font (this section alone was HUGE eye-opener)
148-149 Typesetting a block of text (what powerpoint does not do)

The references are phenomenal, and comprise an instant library for any person, firm, or school of design. I only have ten links allowed, so below I list the reference categories, and link to a single book from the multiples identified--no disrespect intended for the others!

DESIGN
Presentation Zen: Simple Ideas on Presentation Design and Delivery (Voices That Matter)

BRANDING
The Brand Gap: How to Bridge the Distance Between Business Strategy and Design

VISUAL THINKING
Zag: The Number One Strategy of High-Performance Brands

INFORMATION GRAPHICS
Nigel Holmes On Information Design (Working Biographies)

DATA DISPLAY
Information Dashboard Design: The Effective Visual Communication of Data

CONTENT
Made to Stick: Why Some Ideas Survive and Others Die

BUSINESS BOOKS
The E-Myth Manager: Why Most Managers Don't Work and What to Do About It

The index is very good, another manifestation of the utter devotion to quality of the publisher, O'Reilly (I dislike most of their book sets, this one very properly rose to a proper high level).

Lots of white space. There isn't an ounce of fat or irrelevance in this book. It is world-class in every respect, and most publishers are so crummy about price and color that I want to end with a tip of the hat to o'Reilly for getting this one "just right."

Thoughtless design, November 17, 2009
This book is amazing in that it is a book on presentation and is simultaneously a fine example of how NOT to present something. The print is far too small and is a faded grey. How in all the world could someone who put this much effort and care into a book - I did manage to read some of it - fail to notice that it is nearly unreadable?

A must have for any presentation developer, September 15, 2010
I read some of the other reviews and I think some of the people who gave low ratings missed the point of this book. This is not a "How to" PowerPoint book. This is a "How to" effective presentation book. And if you read the introduction you should see the intent of Slide"ology.

Slide:ology provides theory behind visual communication using presentation media. The message is well, focus on the message of the presentation and provides basic design concepts that should help anyone in understanding what are the components of a well designed presentation. Key word here being design. I think some people struggle to understand that design means function and purpose instead of just making things pretty.

Some people mentioned small type and the book being hard to read. I thought the book was well designed and didn't have a problem with reading it. The pages provide ample room for taking notes.

It's a good reference, January 29, 2009
This was my first PowerPoint book so when I first read it, I thought it was fantastic.

What it is:
A reference that offers great design ideas, guidance on presenting information, layout, content, PowerPoint and storytelling. Sure, applying all of her principles will take a lot of time, focus, and clients/higher ups that are willing to try her method. But applying just one of her principles is easy to do. Either way, formatting your slides the slide:ology way will shift your presentation from good to better.

What is isn't:
This is not really a how-to book meaning it shows you the principles to follow but not necessarily how to achieve it. While I don't have a recommendation on which book to get, if you are a PowerPoint beginner, it would be wise to invest in a step-by-step guide as well.

A Must-Have for Seminar Presenters, August 20, 2008
I'm a trainer, offering live seminars which we convert to video presentations for our distance learners. I'm comfortable with creating good video, but not so with creating strong slide presentations. For years, we've felt the need for dynamic slide presentations that would heighten the excitement we work to build in our seminars. The slide presentations we created or had created for us, relayed information but they seemed flat to me, not what we were going for.

If you're hoping to create a great slide presentation or a great visual presentation of any sort, you will find that this book shows you how to do so. You will learn how to avoid kicking the audience into the yawn zone by creating presentations that have power and impact.

If you are even considering the possibility of creating a slide presentation, please consider picking up this book sooner than later. The author will help you to put together a strong presentation that will get your message across to your audience in a powerful and interesting way. This book is highly recommended.

Great ideas, great design! Just a very great book., August 12, 2008
Nancy Duarte has designed a winner with her first book - and it's an instant classic on presentation design. Not only will anyone be able to make MUCH better presentations, they will have fun learning how. Whether beginner or expert, Nancy helps anyone get to the top of their game in making a impact through presenting their ideas visually.

It's also interesting and inspiring reading as well, and goes far beyond presentations. The success of Duarte Design is well deserved, and you'll see why in reading this book.

Bert Decker ... Read more

Editorial Review

In The Forgotten Man, Amity Shlaes, one of the nation's most-respected economic commentators, offers a striking reinterpretation of the Great Depression. She traces the mounting agony of the New Dealers and the moving stories of individual citizens who through their brave perseverance helped establish the steadfast character we recognize as American today.

Reviews

Brings You Back to the 1930's
The Forgotten Man (TFM for short) is not a polemic. It is not an argument for a particular theory or economic interpretation of the Depression. Instead, the author steps back and lets the story tell itself. She has sifted through memoirs and contemporaneous accounts in order to carry the reader back into the mindset of the 1930's. She focuses on a diverse selection of protagonists from that period, including opponents of Roosevelt like Andrew Mellon and Wendell Wilkie as well as members of Roosevelt's "brain trust" like Paul Douglas and Rexford Tugwell. Note that in the context of that time, "trust" meant the same thing as cartel (as in anti-trust laws). Roosevelt was claiming that with his advisers he had cornered the market on brains. If so, then after reading TFM, my sense is that there was not much value in this particular monopoly.



I came away with three major conclusions.



1. For better or worse, much of the country saw the Depression as something akin to a natural disaster, and people accordingly lowered their expectations for their standard of living.



2. Economic ignorance among policymakers was much worse than I had realized. I was steeped in the myth that the reason the Depression was so bad was that only Keynes had the answer, and he had to overcome the resistance of "the classical economists," such as Irving Fisher. But the differences between Fisher and Keynes seem small when compared to the differences between the policymakers and both economists. In physics, it would be like watching an academic debate over the meaning of quantum mechanics while policymakers are unable to grasp the simple concept of gravity.



3. The struggle over economic policy in the 1930's was really an episode in the long, historical conflict between business participants in the market and anti-business academics. Roosevelt gave free rein to the professors, until the start of the Second World War led him to realize that he would need the tycoons to help mobilize to defeat Hitler. I suspect that one reason that Roosevelt and the New Deal come off so well in the conventional wisdom is that history books are written by professors, not by entrepreneurs.



I should stress that these are my own views, and that TFM is much less prone to making generalizations and drawing conclusions. Readers with a variety of backgrounds and predispositions can appreciate the book and learn their own lessons.

Beware of the Elites
Amity Shlaes has written an enormously important book. She offers abundant evidence that both the Republican Hoover and the Democrat Roosevelt unwittingly worsened the Great Depression. They opted for policies preventing the economic system from self-correcting. These two American leaders foolishly relied on the advice of elites infatuated with the Soviet Union. They essentially thought that the graduates of our best schools should manage the country. To be blunt, the elites were supposed to be our benevolent dictators.

Pay particular attention to Shlaes analysis of the Schechter brothers' confrontation with intellectual thugs associated with Harvard University. The author never mentions the vastly overrated works of Arthur M. Schlesinger, Jr. Nonetheless, The Forgotten Man is something of a direct attack on the late historian's less than admirable scholarship. Did Franklin D. Roosevelt save our nation? He admittedly may have done so in our fight against the fascists during WW II. Roosevelt's attempts to manage the American economy, however, almost destroyed our democratic institutions. The road to hell is sadly often paved with good intentions. We should learn form history---and never let this happen again. Regular citizens must be willing to check and balance the behavior of those most inclined toward arrogant ego-tripping and power seeking. The Forgotten Man deserves three cheers. You should obtain a copy immediately.

Changes your understanding of the Great Depression
Amity Shlaes: The Forgotten Man: A New History of the Great Depression HarperCollins, 2007, 433pp

This is a remarkable book which will forever change your understanding of the Great Depression, Franklin Delano Roosevelt's role and the lessons to be learned from government intervention.

Amity Shlaes makes a compelling case that Hoover and Roosevelt actually lengthened the Depression. They did this, Shlaes argues, by following bad monetary policy, which further deflated the currency, and by raising tariff barriers, which broke up world trade and reduced economic activity everywhere.

Shlaes makes the best case I have seen that business confidence is the key to economic expansion and that each step of the New Deal was a further blow to business confidence.

She also explains the view of the pre-government control entrepreneurs and investors who had created an extraordinarily successful country prior to 1929.

This is a superb book well worth reading, studying and then thinking about for a long time.

What were the actual effects of New Deal policies?
For offering a critical view of FDR's policies in her terrific new book THE FORGOTTEN MAN, Amity Shlaes has been taken to task by those who say that his charisma helped lift American spirits and get us through the Great Depression. FDR certainly had charisma, but what were the effects of his New Deal policies?

Dozens of economists, including two Nobel Prize winners, have evaluated the consequences of New Deal policies. Empirical research at many universities raises suggests that the New Deal actually prolonged the Great Depression. Consider some key questions like these:

1. Why did FDR triple federal taxes during the Great Depression? Federal tax revenues more than tripled, from $1.6 billion in 1933 to $5.3 billion in 1940. Excise taxes, personal income taxes, inheritance taxes, corporate income taxes, holding company taxes and "excess profits" taxes all went up. FDR introduced an undistributed profits tax. Consumers had less money to spend, and employers had less money for growth and jobs.

2. How much net benefit did the New Deal provide ordinary people who paid most of the costs of the New Deal? For instance, the biggest New Deal welfare programs were funded before 1936, when federal excise taxes on beer, wine, cigarettes, soft drinks, chewing gum, radios and other things purchased by millions of ordinary people, generated more revenue than the federal personal income tax and the federal corporate income tax combined. According to the standard reference work HISTORICAL STATISTICS OF THE UNITED STATES FROM COLONIAL TIMES TO THE PRESENT, in 1936 the federal government collected $674.4 million from the personal income tax, $753 million from the corporate income tax and $1.5 billion from excise taxes. Despite big income tax hikes, the federal excise tax continued to be the single largest source of federal revenue until after the United States entered World War II. So FDR's New Deal was mainly financed on the backs of the middle class and poor people who bought things subject to the federal excise tax. To hear one of FDR's "Fireside Chats," Americans had to pay a federal excise tax on a radio and a federal excise tax on the electricity needed to run it.

3. Why did FDR discourage investors from taking the risks of funding growth and jobs? As Robert Higgs (Independent Institute) pointed out, frequent tax hikes (1933, 1934, 1935, 1936) created uncertainty that discouraged investment, and FDR further discouraged investors by denouncing them as "economic royalists," "economic dictators" and "privileged princes," among other epithets. No surprise that private investment was at historically low levels during the New Deal era.

4. Why did FDR channel government spending away from the poorest people? Research by Gavin Wright (Stanford University), Robert Tollison (Clemson University), John J. Wallis (University of Maryland), Jim F. Couch (University of North Alabama), William F. Shughart II (University of Mississippi) and others documented how political influences skewed New Deal spending away from the poorest people. The South, America's poorest region, received significantly less than would have been the case if New Deal spending were allocated according to the amount of poverty. More New Deal spending went to political "swing" states in the West and East, where incomes were more than 60% higher.

5. Why did FDR make it more expensive for employers to hire people? By enforcing above-market wages, introducing excise taxes on payrolls and promoting compulsory unionism, the New Deal increased the costs of employing people about 25% from 1933 to 1940 -- a major reason, as Richard K. Vedder (Ohio University) and Lowell E. Gallaway (Ohio University) showed, why unemployment averaged 17 percent during the New Deal era. Demanding that employers pay above-market wages created incentives for employers to introduce more machines, go with part-timers or independent contractors or otherwise avoid expanding full-time payrolls.

6. Why did FDR destroy all that food when millions were hungry? FDR promoted higher food prices by creating scarcity -- paying farmers to plow under some 10 million acres of crops and slaughter and discard some 6 million farm animals. The New Deal food destruction program mainly benefited big farmers, since they had more food to destroy than small farmers. This policy and subsequent New Deal programs to pay farmers for not producing victimized the 100 million Americans who were consumers. As William E. Leuchtenburg (University of North Carolina) reported, "Only the war rescued the New Deal farm program from disaster."

7. Why did FDR make everything more expensive during the Depression? Americans needed bargains, but FDR signed the National Industrial Recovery Act to establish some 700 industrial cartel codes that forced consumers to pay above-market prices for goods and services. Moreover, FDR banned discounting by signing the Anti-Chain Store Act (1936) and the Retail Price Maintenance Act (1937). During the New Deal, Americans were actually prosecuted for cutting prices!

8. Why did FDR break up the strongest banks? George Benston (Emory University), Eugene White (Rutgers University), Lester V. Chandler (Princeton University) and others showed how FDR's banking laws had different consequences than what had been intended. FDR broke up the strongest banks, which had diversified with both commercial banking and investment banking. FDR's federal deposit insurance didn't stop bank failures. Rather, New Deal federal deposit insurance undermined the incentives of bankers to manage their businesses prudently, and it transferred the cost of bank failures to taxpayers who, among other things, had to pay the $500 billion tab for the S&L debacle during the 1980s. About 90% of depression era bank failures occurred because of unit banking laws that prevented small banks from diversifying through branches. Canada, free from branching restrictions, didn't have a single bank failure during the Great Depression.

9. What was the point of New Deal securities laws that made it harder for employers to raise capital and didn't help investors to do better? Employers desperately needed to raise capital, but FDR authorized costly regulations for issuing stocks. These regulations impeded the raising of capital. As George J. Stigler (University of Chicago) and Greg A. Jarrell (University of Rochester) showed, the average rate of return from new stock issues failed to improve after the SEC was established. Since securities fraud reduces the rate of return for investors, the SEC's failure to increase the rate of return implies either (1) that there couldn't have been much fraud before the SEC was established, or (2) that the SEC has been ineffective. Supposedly the SEC's primary mission has been to protect investors. Yet for decades, the SEC enforced price-fixing on Wall Street by preventing securities firms from discounting their commissions.

10. How did the Tennessee Valley Authority become a drag on the economy? FDR taxed 98% of the American people who didn't live in the Tennessee Valley, then used this revenue for the TVA power-generating monopoly, exempt from federal and state taxes and regulations. Like other big public works projects, the TVA mainly provided jobs for well-paid engineers, heavy equipment operators and others with technical skills. The TVA was slow to produce electricity - the first TVA dam wasn't finished till three years after the TVA law was passed, most TVA dams were finished after the Great Depression was over, and many TVA dams provided power for war-related government projects, not poor farmers. To the extent that the TVA-subsidized electricity affected poor farmers, it gave them an incentive to remain in farming. Battelle Memorial Institute senior scientist William U. Chandler reported that non-TVA Southern states such as North Carolina and Georgia experienced faster growth of jobs and incomes than TVA states, because there was a faster exodus out of farming and into manufacturing and services, which offered higher incomes. In any case, to improve their lot poor farmers needed tools like tractors and hay bailers, powered by internal combustion engines rather than TVA electricity. As for flood control, the TVA seems to have flooded more acreage (behind the dams) than it protected from flooding (below the dams). According to economist John Moore, the TVA flooded an area about the size of Rhode Island. Thousands of people, including black tenant farmers, were forced out of their homes.

11. Why did FDR disrupt companies employing millions? In 1938, FDR authorized an unprecedented barrage of antitrust lawsuits against about 150 employers and industries. There were lawsuits against the milk, oil, tobacco, shoe machinery, tires, fertilizer, railroad, pharmaceuticals, school supplies, billboards, fire insurance, liquor, typewriter and movie industries, among others. But the antitrust crusade was a flop. The government won few cases, and they dragged on as long as 13 years. FDR's antitrust crusade disrupted a depressed economy, making it harder for employers to recover and provide more jobs.

More than 6 decades have passed since FDR died, and it's past time to consider the New Deal in light of the consequences of his policies.
There's a substantial economics literature about the consequences of New Deal policies, steadfastly ignored by political historians who continue to build their narratives with personalities, speeches, correspondence and other traditional sources, and ignore evidence from outside their field, even when writing about a major economic event like the Great Depression.

In THE FORGOTTEN MAN, Shlaes has dramatically connected findings about New Deal policies with the lives of ordinary people during the Great Depression.

Many books have showed what it was like to suffer from unemployment, drought and other aspects of the Great Depression, but Shlaes - telling her story like a good novelist -- is perhaps the first to show what it was like to suffer from the era's misguided policies.

The lessons are particularly important now that presidential candidates are urging us to support more big, complex, costly government programs which, like the New Deal, are likely to be loaded with unintended consequences affecting us all.

Bravo, Ms. Shlaes!

-- Jim Powell, author of FDR'S FOLLY

A beginning of the reappraisal of Roosevelt and the Depression.
Amity Schlaes is well chosen to begin the contemporary reappraisal of the Depression, its causes and the role Roosevelt played. She does not support the theory, described elsewhere, that the Federal Reserve System, itself, over-reacted and worsened a financial panic into a full blown collapse. She blames a lot of the problem on Hoover, but not for the usual reasons given. He is often described as passive in the face of a crisis. She points out that this is not accurate and he acted vigorously but wrongly to deal with the problem. Macroeconomics was not understood and the fact that deflation was the problem was ignored by everyone. New for me was her opinion that Hoover and Roosevelt acted in very similar ways that worsened the problem. Balancing the budget was one misguided step. Taxes were raised at a time when no one but a few had any money and business needed capital to keep going. Roosevelt's attacks on businessmen caused those who could afford it to pull back and avoid investing. Many of the rest failed and added to the unemployment lines. Her research added greatly to the picture of the times. I learned in grammar school about the Smoot-Hawley tariff and the harm it caused. I wonder if schoolchildren today would recognize the term ? I doubt it. Her descriptions of the Schecter Brothers and Andrew Mellon filled in the detail that history must have to be understood. I hope that economics professors are adding this to class reading lists. It can be a bit tedious in places but is highly recommended to anyone who wants to understand this period in American history.

Much of the negative reaction to FDR now makes better sense....
This is a fascinating book. Most serious historical writing about the Crash, the Depression and the New Deal has been either an essentially adulatory hymn to Roosevelt and his team (think Arthur Schlesinger, Jr.) or critical from a leftist perspective arguing the New Deal was too conservative (think Gabriel Kolko). Criticism of Roosevelt and the New Deal by contemporaries, to the extent it's read much anymore, has tended to seem overwrought (think H.L. Mencken on 'Roosevelt Minor'). Writing by economists has been better, but less approachable by the ordinary educated reader.

Shlaes provides a much needed perspective, a heavily anecdotal history of the run up to the Depression and the Depression which emphasizes the ideas about political philosophy and political economy held by, and motivating the actions of, the key players from Coolidge, Mellon, and Hoover, through Roosevelt and his Brain Trusters (including the execrable Tugwell) and executives and lawyers like Insull and Wendell Wilkie.

What I got from the book was a sense, for the first time, of why the incredible outrage that the New Deal generated in many people was fully justified: the capriciousness of both Roosevelt and his minions, their lust for power, the ineffectiveness of most of their nostrums, and, their indifference to the effect on actual citizens (as opposed to their idealized groups of downtrodden whom they hoped to recruit to keep them in power) that borders on Lenin's guffaw when talking about murdering kulaks (recounted by a horrified Bertrand Russell in his essay Eminent Men I Have Known in his 1950 Unpopular Essays). Those who realized what Roosevelt and his wunderkinder were doing were choleric at their own helplessness in stopping him or making people understand how counterproductive the New Deal really was.

When I first read Ayn Rand's Atlas Shrugged and The Fountainhead, I thought the portraits of the professors and government types ranged against Rand's heroes were almost cardboard caricatures, which was confirmed by my graduate school reading of historical scholarship on the New Deal. Now, after hearing Shlae's portraits, however, I am struck by how much like her cardboard characters the New Dealers actually were, based on their own words and recollections.

One caution: this should not be the only book you read on the New Deal. It's relatively short and not comprehensive. For the reader who has a solid working knowledge of the Depression and the New Deal (say the equivalent of a fresh, but careful, reading to the appropriate chapters in Morison, Commager aand Leuchtenburg's The Growth of the American Republic which is very favorable to the New Deal), Shlaes makes her argument by letting the facts and the protagonists speak for themselves. And a damning portrait it is.

A Revelation
The revisionist view of the Depression, that it was not a crisis of capitalism so much as a crisis of perverse government, has long been persuasively argued and, at least in conservative circles, accepted. Contraction of the money supply instead of expansion, raising tariffs instead of lowering them, and perverse wage and tax policy all worked together to prevent the kind of rebound typical of previous recessions. What this book adds is the human face of this failure. I grew up in an Arthur Schlesinger, Jr. world. I was raised to think of the New Dealers as geniuses and saints. The school books of the 1950s, and college professors of the 1960s, taught me so. That myth is forever shattered by this book, and its depiction not just of the odd cast of characters who made the New Deal, but of the utter intellectual chaos and self-contradiction that underlay it. The New Deal was one failed improvisation after another. (One must remember, however, how much of the responsibility lay with Hoover and his own failed interventions, an aspect of the times that Shlaes emphasizes.)

Much of the entrenched bad policy that bedevils us today had its origins under FDR. Not even the great Ronald Reagan (whom I now see as channelling Andrew Mellon!) could do more than ameliorate it. Yet this sad story makes a great read. The personalities involved, the very texture of the 1930s, come delightfully alive in this book. It remains a mystery how a President as inept and unprincipled, as fundamentally disorganized, as FDR could have defeated Hitler and the Japanese. Or perhaps it's not such a mystery. Some of the qualities that made for a disastrous domestic policy may have served him well as Commander in Chief. The "fog of war" is better suited to the improvisatory approach. Perhaps Shlaes can address this in a book on the 1940s. She, at least, will not succumb to hagiography despite the wartime successes.

The audio version of this book, by the way, is very good, with an excellent reader. ... Read more

Editorial Review

The New York Times bestseller: "A lucid account" (New York Times) of the recent financial crisisand the way forward by the Nobel Prize-winning economist, with a new afterword.The Great Recession, as it has come to be called, has impacted more people worldwide than any crisis since the Great Depression. Flawed government policy and unscrupulous personal and corporate behavior in the United States created the current financial meltdown, which was exported across the globe with devastating consequences. The crisis has sparked an essential debate about America’s economic missteps, the soundness of this country’s economy, and even the appropriate shape of a capitalist system.

Few are more qualified to comment during this turbulent time than Joseph E. Stiglitz. Winner of the 2001 Nobel Prize in Economics, Stiglitz is “an insanely great economist, in ways you can’t really appreciate unless you’re deep into the field” (Paul Krugman, New York Times). In Freefall, Stiglitz traces the origins of the Great Recession, eschewing easy answers and demolishing the contention that America needs more billion-dollar bailouts and free passes to those “too big to fail,” while also outlining the alternatives and revealing that even now there are choices ahead that can make a difference. The system is broken, and we can only fix it by examining the underlying theories that have led us into this new “bubble capitalism.”

Ranging across a host of topics that bear on the crisis, Stiglitz argues convincingly for a restoration of the balance between government and markets. America as a nation faces huge challenges—in health care, energy, the environment, education, and manufacturing—and Stiglitz penetratingly addresses each in light of the newly emerging global economic order. An ongoing war of ideas over the most effective type of capitalist system, as well as a rebalancing of global economic power, is shaping that order. The battle may finally give the lie to theories of a “rational” market or to the view that America’s global economic dominance is inevitable and unassailable.

For anyone watching with indignation while a reckless Wall Street destroyed homes, educations, and jobs; while the government took half-steps hoping for a “just-enough” recovery; and while bankers fell all over themselves claiming not to have seen what was coming, then sought government bailouts while resisting regulation that would make future crises less likely, Freefall offers a clear accounting of why so many Americans feel disillusioned today and how we can realize a prosperous economy and a moral society for the future. ... Read more

Reviews

Excellent and Credible Insights!
Stiglitz believes that markets lie at the heart of every successful economy, but do not work well without government regulation. In "Freefall" he explains how flawed perspectives and incentives lead to the 'Great Recession' of 2008, and brought mistakes that will prolong the downturn.

Between 1996-2006, Americans used over $2 trillion in home equity (HELOC) to pay for home improvements, cars, medical bills, etc., largely because real income had been stagnant since the early 1990s. Economic recovery requires that we repay the remainder of these amounts, overcome stock market losses (10% between 2000-2009), the loss of some 10 million jobs, and reductions in credit card balances, and find an equivalent amount to the former home-equity sourced financing ($975 billion in 2006 alone - about 7% of GDP) to finance another consumer-driven GDP upturn - without the prior boom in housing and commercial building. Stiglitz also points out that the Great Depression coincided with the decline of U.S. agriculture (crop prices were falling before the 1929 crash), and economic growth resumed only after the New Deal and WWII. Similarly, today's recovery from the Great Recession is also hampered by the concomitant shift from manufacturing to services, continued automation and globalization, taxes that have become less progressive (shifting money from those who would spend to those who haven't), and new accounting regulations that discourage mortgage renegotiation.

Stiglitz is particularly critical of the U.S. finance industry - its size (41% of corporate profits in 2007), avarice (maximizing revenues through repeated high fees generated by over-eager and over-sold homeowners needing to refinance adjustable-rate mortgages that repeatedly reset), and 'sophisticated ignorance' (using complex computer models to evaluate risk that failed to account for high correlation within and between housing markets; 'eliminating risk' through buying credit default swaps from AIG - blind to the likelihood AIG could not make good in a housing downturn), and excessive risk (banks leveraged up to 40:1 with increasingly risky mortgage assets - 'liar's loans,' 2nd mortgages, ARMs, no-down-payments; taking advantage of the 'too-big-to-fail' and 'Greenspan/Bernanke put' phenomena). Much of this behavior was driven by lopsided personal financial incentives (bonuses) - if bankers win, they walk off with the proceeds, and if they lose, taxpayers pick up the tab. However, to be fair, any firm that failed to take advantage of every opportunity to boost its earnings and stock price faced the threat of a hostile takeover.

The impact of mortgage defaults is greater than one would otherwise expect because financial wizards found that the highest tranches of securitized mortgages would still earn a AAA rating if some income was provided to the lowest tranches in the 'highly unlikely' event of eg. a 50% overall default, thus boosting the ratings and saleability of lower tranches. (Fortunately for the U.S., many of these mortgages ended up overseas, spreading the disaster.) Another problem is that mortgage speculators make more profit from foreclosure than partial settlements. Meanwhile, investors worried that mortgage servicers might be too soft on borrowers required restrictions that make renegotiation more difficult and lead to more foreclosures. Similarly, those with 2nd-mortgages often found that those holding the second were unwilling to accept a principal write-down as their share of assets would be wiped out. Finally, new government regulations aimed at making banks seem healthier than otherwise allowed changing from 'mark-to-market' valuation of mortgages to long-term 'mark-to-hope' valuation - thus, writing down assets in a renegotiation would generate the very mortgage write-downs the new regulations avoided, and thus increased bank reluctance to do so.

"Freefall" also does an excellent job refuting many of the simple explanations, alibis, and remedies for the 2008 Great Recession. For example, Greenspan's 'nothing he could do' alibi is countered by Stiglitz's 'require higher down payments or margin requirements' (or increase interest rates). To those blaming Community Reinvestment Act requirements for increased mortgages to those with low incomes, Stiglitz says the default rates on those loans was less than in other areas; as for Fannie and Freddie being responsible, they came late into the sub-prime game. Responding to claims that increased regulation would stifle innovation and its role in economic growth, Stiglitz asserts that it is impossible to trace any sustained economic growth to those 'innovative' mortgages. (A 'real' contribution could have been made by less profitable innovative mortgages that helped homeowners stay in their homes.) On the other hand, he also admits that just giving more regulatory power to the Federal Reserve is not a solution - the Federal Reserve didn't use what it did have prior to late 2008; similarly, the SEC boosted leverage limits from 12:1 to 30:1 and higher in 2004 - exactly the wrong move. Banks suggest banning short sales in the future as a preventive measure - Stiglitz, however, points out that the incentive provided short-sellers to discover fraud and reckless lending may actually play a more important role in curbing bad bank behavior than government regulators have.

Other factors, especially government actions, also receive attention from the author. Overall, global supply exceeds demand - thus, the recovery focus needs to be on boosting demand. Stiglitz points out that growing inequality shifts money from those who would have spent it to those who didn't - weakening overall consumer demand. High oil prices have also impacted most those with low incomes, and probably encouraged Greenspan to hold down interest rates to counteract the negative impact. On a broader level, Stiglitz contends that IMF encouragement of national self-discipline and 'rainy-day' funds also weaken consumer demand. As for recommendations for more tax cuts and rebates, Stiglitz says these won't have much impact on consumers saddled with debt and anxiety, and as long as there's excess capacity, businesses will be reluctant to invest (Laffer's supply-curve tax-curve is an irrelevant theory, at best). Stiglitz even suggests elsewhere that the failure of Bush's 2001 tax cuts to stimulate the economy may have also influenced Greenspan to hold down interest rates for too long.

AIG, once bailed out, paid off billions to Goldman Sachs at 100% (Secretary Paulson's former firm), while defunct credit-default-swaps elsewhere were settled at only 13 cents on the dollar, says Stiglitz. Overall, he is very negative on the financial-sector bailout (TARP), believing that the money would much better have been used to capitalize new banks at 12:1 leverage, or not spent at all. The resulting bank subsidies were unfair to taxpayers (Treasury put up most of the money and got short-changed on potential benefits), and implementation was inconsistent - some institutions and stockholders were bailed out, others were not. (The reason lending 'froze up' is that banks didn't know whether they or their peers ere underwater.) The stimulus package, on the other hand, was too small (aimed at 3.6 million jobs, vs. 10 million lost plus 1.5 million new workers/year needing jobs), and was delegated to Congress without clear guidance. The result was a failure to provide mortgage insurance for those losing jobs, while instead creating the 'cash-for-clunkers' (mostly just moved sales from one period to another - [...] estimated only 18% were added sales, costing taxpayers $24,000 apiece; eight of the top ten purchases came from Asian manufacturers), ineffectual tax cuts, putting money into a failing auto industry, and increased road construction (greater global warming) instead of giving even more money to high-speed rail. The stimulus emphasis should have been on fast implementation, high-multiplier impact, and addressing long-term problems (eg. global warming). The employment situation now is worse than just the unemployment rate suggests - there are a record 6 applicants for every opening, the average work week is at 34 hours - the lowest since data was first collected in 1964, many have turned to disability instead of unemployment and are not counted.

Overall, Stiglitz believes there is far too much short-term thinking driving decision-makers, that business lobbies are too strong, and that markets are not naturally efficient. (Other inefficient market areas besides finance include health care, energy, manufacturing.) Meanwhile, we have done nothing to correct the underlying problems (big banks are even bigger) and Stiglitz also fears (reported elsewhere) the U.S. economy faces a "significant chance" of contracting again.

Interesting side-notes: 1)Stiglitz suggests that banks 'too-big-to-fail' should pay higher rates of deposit insurance, and incur restraints on executive incentives. In 1995 our five largest banks' market share was 11%, 40% now. Regardless, the world's largest three banks are now Chinese - #5 is American. (Not to worry - scale economics are no longer a factor for any of those banks, says Stiglitz.) 2)President Reagan made a major mistake in removing Paul Volcker as Chairman of the Federal Reserve Board and appointing Alan Greenspan in his place. Volcker had brought down inflation from more than 11 percent to under 4 percent, which should have assured his reappointment. But Volcker believed financial markets need to be regulated, and Reagan wanted someone who did not. Thus, Stiglitz believes regulations must be mandated, and enforced by a neutral, not political, source. 3)Repealing the Glass-Steagall Act in 1999 changed the culture of banking from conservative to high-risk, and also encouraged even larger institutions. 4)It is ironic that the Bush/Greenspan efforts to minimize government involvement in the economy resulted in our becoming de facto owners of the world's largest auto and insurance companies, and some of the largest banks. 5)Stock options are doubly damaging - they undermine stockholder wealth while remaining largely hidden from stockholders, and they encourage maximum short-term accounting manipulation to move stock prices up. 6)The U.S. national debt will reach 70% of GDP by 2019, and when it hits 90%, paying 5% interest on that debt will consume one-fifth of federal taxes.

Bottom-Line: Most books on current economic issues written for the public are superficial, or even worse, mere demagoguery. Stiglitz's qualifications - Nobel prize-winner in economics (2001), former Chairman of the President's Council of Economic Advisors (1995-97), and former World Bank Chief Economist help provide an important, interesting and credible alternative. "Freefall" was a pleasure to read.

Economics 101
I admit that economics confuses me, so when I read a book written in lucid easy to understand language I can begin to understand a compound-complex idea a little more clearly. Nothing in economics is as it seems because politics can often obfuscate with ideological explanations that are neither simple or even partially true when based on politics. Stiglitz doesn't say that the free market can't work, but that it isn't the entire answer. Regulations, as the banking meltdown of 2009 demonstrates, are necessary to prevent greed from becoming the dominating motivation for Wall Street and big banks, especially investment banks that measure success only in terms of how big their next bonus will be.

"Freefall" doesn't give us all the answers, and again I admit that I still have questions, but for a basic understanding of the markets as they played out in the past couple of years and how deregulation merely increased the problems for most of Main sreet this is a very good place to start. Some critics have already panned this book as a call to socialism, but those critics obviously lack even a basic understanding of what socialism really is and are only looking for a buzz word to sustain the belief that a totally "Free Market" system is the only good thing, when in fact it increases the chances of boom and bust cycles coming even closer together in the future. To begin, modest regulations are all that might be needed, and if bankers once again act trustworthy and preform ethically it could be enough. If greed continues unabated, then the middle class will disappear and only the wealthiest will profit.

Speaking Truth to Power -- Again
Professor Stiglitz has repeatedly spoken truth to power. He wrote about the perils of unchecked globalization, the disaster of the Federal Reserves policies in the 90s and 00s, the wrong-footed solutions to the Asia crisis, and the cost of the Iraq War. Here he lays out in simple, straightforward jargon-free language, what happened to cause the worst economic crisis since the Depression and what steps we need to take to prevent it from happening again. Highly recommended.

Accurate and timely
Stiglitz accurately reflects on the mistakes made by the US government to prevent and address the financial crisis. The book is a must reader for those who want to understand the the economics and politics behind the crisis. This is an enlightening piece of work from one of the world's best economist.

Until Conservatives Produce a Credible Rebuttal, I am Sticking with Joe
Nobel aureate Joseph Stiglitz produces one of his best books, in which he interprets the reasons leading to, and the possible ways out, of the Great Recession that started in October 2008.
Stiglitz wrote: "Growth (in America over the past decade) was based on a mountain of debt." By 2008, Americans had to suffer from their "unsustainable levels of consumption," and the economy crashed.
Sitglitz, a Keynesian economist, had predicted looming problems for the economy in Davos 2006, and according to this book, he felt embarrassed in 2007. He therefore told skeptics that either his theory was wrong, or crisis would hit harder. His second guess proved to be the right asnwer.
In Freefall, Stiglitz blamed most the greedy bank managers, brokers, lenders, rating agencies for what he described as "preying on" what they knew was destined to inevitably collapse: Subprime mortgages, or high risk people who borrowed beyond their means to buy houses.
He argued that many wrong assumptions led to the housing bubble, the first and foremost amongst them being that housing prices would keep on rising. American home owners were therefore engaged in further debt, often borrowing against their houses.
Stiglitz also blamed deregulation that started in 1987 under President Ronald Reagan.
"Interests, ideas, and ideologies" were the main drive behind such deregulation. The Nobel aureate showed some bias, and rightly so, toward former Fed Chairman, Paul Volker, who brought down America's inflation from 11.3 percent in 1979 to 3.6 in 1987, mainly through regulation, before Reagan replaced him with Alan Greenspan in order to reverse the regulation process.
And for those who call him socialist, Stiglitz wrote that he is a staunch capitalist, except that sometimes there are "flaws in the capitalist system," especially in the "American version of capitalism that emerged in the second half of the twentieth century."
According to Stiglitz, America exported its flawed version of capitalism to the world, thus leading to a global crisis that should to be rectified. To do so, "it may be difficult to have a strong global economy do long as part of the world continues to produce far more than it consumes and another part - a part which should be saving to meet the needs of its aging population - continues to consume far more than it produces," he wrote.
On the way President Barack Obama handled the 2008 Great Recession, Stiglitz wrote: "Hope with Obama was only partially fulfilled as the financial system remains less competitive... the too-big-to-fail-banks problem persists, and the [bailout] money to restructure economy was spent to save old and failed firms."
Stiglitz argued that the bailout was too small, and that it was mainly designed by people from the George Bush administration, who led the economy into its current crisis. These include Treasury Secretary Timothy Geithner and Chief Economist Larry Summers.
Stigliz believes that the government should have stepped in to rescue troubled homeowners by offering loans at low interest rates (say 2 percent), as the government was borrowing at zero percent interest rate. He criticized how the government made the cheap money available to banks, who lent it to Americans at an interest rate of 6 percent, therefore making 4 percent profit off the government's cheap money.
The government should also take into consideration the ratio of multipliers (i.e. the return on each dollar it spends), and should invest in long term projects that would certainly update America and make it more competitive - in the world - for the coming century, according to Siglitz.
"Other aspects of Obama's economic policy have been decidedly movements in the right direction," Stiglitz wrote. ... Read more

Editorial Review

START-UP NATION addresses the trillion dollar question: How is it that Israel-- a country of 7.1 million, only 60 years old, surrounded by enemies, in a constant state of war since its founding, with no natural resources-- produces more start-up companies than large, peaceful, and stable nations like Japan, China, India, Korea, Canada and the UK?

With the savvy of foreign policy insiders, Senor and Singer examine the lessons of the country's adversity-driven culture, which flattens hierarchy and elevates informality-- all backed up by government policies focused on innovation.In a world where economies as diverse as Ireland, Singapore and Dubai have tried to re-create the "Israel effect", there are entrepreneurial lessons well worth noting. As America reboots its own economy and can-do spirit, there's never been a better time to look at this remarkable and resilient nation for some impressive, surprising clues. ... Read more

Reviews

Israeli exceptionality in contributing to global technological progress
There is a growing literature which speaks of the distinctiveness of Israel and its unique contribution to global culture. I think most recently of George Gilder's outstanding 'The Israel Test'. No doubt one impulse for the creation of such books has been the worldwide campaign to delegitimize Israel, as prelude to physically destroying it. Thus the very pro- Israel books come in a way as contributions to the justification of the Jewish state, and as defense of it. What is of course distressing about this, and the need for paeans to Israeli exceptionality is the fact that Israel is the only country in the world which is required to 'justify' its existence in this way.
In any case this present book focuses on Israel's scientific and even more technological achievements. It speaks about the Israeli reaction to the Arab boycott, and the special situation of 'confinement' Israelis feel at not having normal access to neighboring countries. Israel is a very small country physically and thus many have a certain claustrophobic sense , especially those youngsters who have served in the Army. After the Army many young people adventurously use their new - found freedom.
Two forms of this are the trekking Israelis do throughout distant regions of the world, with special emphasis on South America, and the India- Nepal region, and the 'tech-ing' Israelis do in creating start-ups at a rate all out of proportion to their numbers in the world. Israelis have hooked into high- tech communications and rode on the wave of a world economy which is increasingly electronic.
The start- ups too come in part because of an encouraging government policy, which devotes a high proportion of funds to research. But they also come because Israelis are a people continually forced to find non- conventional answers to very difficult and unusual problems.
For any supporter of Israel, and I assume that this is the real audience of this book, this book will be a real pleasure. It will provide yet more evidence of how one small state manages to make real contributions to the global economy, and the scientific and technological progress of mankind.

Spectacular insights into building an entrepreneurial society
As a serial entrepreneur, VC and angel investor, and teacher of entrepreneurship for many years, I am enthralled by "Startup Nation". It is a fascinating story of how Israel has succeeded disproportionately to its size and certainly to its geographic situation. It teaches valuable and unique lessons about region building and industry building. The principles of the country that stimulate individual entrepreneurial behavior in the military, in agriculture, and especially in high technology are lessons for all. I have shared the book with several leaders of industry and finance who have seen it as a remarkably interesting read.
Congratulations to the authors.

Edward Roberts
Professor of Management of Technology, MIT Sloan School of Management
Founder and Chair, MIT Entrepreneurship Center

An enjoyable read
This is an enjoyable read that highlights how Israel has come to become such a leader in high tech startups. It is quick, light reading that explores the historical and cultural aspects that lead so many Israelis to pursue entrepreneurship.

In Israel, it seems, there is a culture that embraces the questioning of authority, a flat hierarchical structure across society, and risk seeking behavior. For those who have traveled to Israel, these notions will not be unfamiliar to you. Furthermore, the book explores how the contacts made during mandatory army service serve as valuable social networking tools later on.

The book was exactly was I was hoping for. It is written for the layperson, and did not read like an academic journal. While most books about Israel focus on its conflict with the Palestinians, this book only brought up politics and conflict as it pertained to the subject at hand, and didn't editorialize in the process. Furthermore, the multitude of stories and vignettes made it a engaging read that held my interest for the time I sat reading it.

Where did all of Israel's innovation and entrepreneurship come from?
In 2001, what started as a long discussion between Dan Senor, adjunct senior fellow for Middle East studies at the Council on Foreign Relations and Saul Singer, a columnist and former editorial editor at the Jerusalem Post, morphed into an excellent book, Start-Up Nation: The Story of Israel's Economic Miracle.

Senor had led a group of twenty-eight Harvard Business School classmates to Israel to explore Israel's economy, politics, and history. It was a time when there was considerable business opportunity in Israel but also, it was when the peace process collapsed and there was escalating insecurity. At the end of one week, many of the participants were asking, where did all of Israel's innovation and entrepreneurship come from? Senor and Singer didn't have an answer and furthermore when they tried to find some book explaining what made Israel's start-up scene so vibrant and seemingly impervious to the security situation, they came up empty-handed. Thus, they decided to write their own book that would try to answer what makes Israel so innovative and entrepreneurial?

Part of the answer to this amazing phenomenon, and as pointed out and exemplified in the book, is Israel's tight proximity of great institutions of higher learning, large companies, start-ups, and the ecosystem that connects them. The latter includes everything from suppliers, a fantastic pool of well-qualified engineers, and venture capital. In addition, and one very important element, is the important role of the military in molding future business leaders and innovators. It is the IDF that fosters a culture of chutzpah and critical, independent thinking that distinguishes the Israeli entrepreneur from their competitors. It is also the IDF's R&D funds that is pumped into the most sophisticated military hardware and software that eventually finds its way into the civilian economy, both in technologies and human resources.

Other factors include Israel's isolation or as one of its business leaders, Shai Agassi stated, by isolating Israel, its adversaries had actually created the perfect laboratory to test ideas. And when you look at the patents registered by Israel from 1980 to 2000 which numbered 7, 652 as compared to the combined total of 367 from Saudi Arabia, Egypt, Kuwait, United Arab Emirates, Syria and Jordan, you can't help being impressed. It is little wonder that technology companies and global investors such as Google, Cisco, Microsoft, Intel, eBay have entered the Israeli market discovering unique combinations of audacity, creativity and drive. As the authors mention, Israel has the highest density of start-ups in the world, "a total of 3,850 start-up, one for every 1,844 Israelis." In addition, more Israeli companies are listed on the NASDAQ exchange than all companies from the entire European continent.

However, as Senor and Singer argue, all of the above does not fully explain Israel's success. What Israel also has is "a cultural core built on a rich stew of aggressiveness and team orientation, on isolation and connectedness, and on being small and aiming big." This is something that is lacking with some of its competitors as Singapore or Korea.
Quite interesting is that the original Israeli settlers were pioneers creating a country from nothing, whose milieu was socialist and profit was a dirty word. Today's Israeli entrepreneur is likewise a pioneer and their new narrative is about creating things for the world in a variety of fields-"You're not just trading in goods, or you're not just a finance person. You are doing something for humanity. You are inventing a new drug or chip."

Apart from Israel's successes, the authors also explore why American innovation industries have not taken full advantage of the entrepreneurial talent of the U.S. military training and experience, why the Arab world is having difficulty in fostering entrepreneurship, and what are the challenges that Israel faces in maintaining its brilliant economic miracle.

Very often books of this nature digress into pages crammed with all kinds of graphs and statistics that, to put it bluntly, are just plain boring. However, Senor and Singer avoid this with an entertaining prose style, bolstered by meticulous research and many first hand interviews with people in the know.

Norm Goldman, Publisher & Editor Bookpleasures

A very good book on industrail policy
Even though I am very far from being an Israeli fan, I sincerely enjoyed this book. OK, it is too much Israeli marketing&PR, but what can you say: it is legitimate. Despite the fact that I was intimidated until almost page 100 by authors' delving too much into the "goodness" of Israeli armed forces, and almost glorifying the neighbour-bashing Israeli army and air forces, I still kept reading the book which, in the end, turned out to be a very fruitful endeavour.

This is a good book. It provides a very nice vision for those who are interested in economic development, industrial policy and especially innovation/entrepreneurship policy. There are invaluable hints regarding those topics, however much they are hidden in between the lines. Nevertheless, as I said, the tips are invaluable and very teaching.

The main question I had in mind while reading the book was whether I could take home some of the experiences and lessons described in the book. Some definitely cannot be imported. They are those idiosyncratic things which are very much Israeli and Jewish-specific:

- For example the role of Jewish diaspora and the resultant "connectedness" that came with it,
- the geographical positioning of Israel, the 'culture' of Israeli jews,
- war-related chance-based motivations,
- reverse Jewish brain-drain en masse and
- the never ending US-support of Israel (though, in the book, you hardly trace any mention of this tremendously important fact, which I believe, is a major bias of the book).

There are, however, many other factors that you can take home regarding innovation and industrial policy, like:

- The importance of talent & human resources,
- critical roles of cross-training, of
- venture capital financing,
- multidisciplinary approach to business problems,
- proximity of the elements of an ecosystem,
- of sense of community membership for the success of business clusters, and
- culture of risk-taking, failure-welcoming and 'chutzpah'.
- Also very important is the book's verification of the positive and critical role of government intervention in a country's entrepreneurial push and economic development.

Those are very valuable aspects of the book.

Moreover, the book is also very enlightening for those people like me who have very little knowledge about Israel and never interested in learning about that country's inner workings. Because, while you read with a focus to find clues regarding innovation and entrepreneurial policy, you learn the history, predicaments and some aspects of the inner workings of Israel's economic system. This, I personally found very interesting; kind of buy one, get one free.

In a nutshell, even though this is a deliberate 'marketing' effort for Israel, it is still a very valuable book for those interested in industrial, entrepreneurial and innovation policy. It is, however, not at all a guide for company-specific innovation policies and certainly NOT a business-related book.

Beyond Clusters
Beyond Clusters: Review of Dan Senor & Saul Singer, Start-Up Nation: The Story of Israel's Economic Miracle (Twelve, 2009).
Ari Applbaum
December 2009

I wrote my first business plan in high school. The two-page plan (perhaps an overstatement) was promptly filed and forgotten instead of pitched to investors. The concept of offering free internet access to attract an audience for highly targeted advertising was later "stolen" by California-based NetZero, a company once valued at three billion dollars. This type of Chutzpa, a teenager's audacity to think he could reinvent the way people connect to the Internet, is not uncommon in Israel.

But why? Why does Israel produce "more start-up companies than large, peaceful and stable nations like Japan, China, India, Korea, Canada and the United Kingdom?" Why is it that "after the United States, Israel has more companies listed on the NASDAQ than any other country in the world?" These are the questions Dan Senor and Saul Singer set out to answer in their short and intriguing book.

Senor and Singer begin by asserting that the answer "it's simple - Jews are smart, so it's no surprise that Israel is innovative" will not suffice as it "obscures more than it reveals". Instead they offer a thesis based on the Cluster Theory of Harvard Business School professor Michael Porter. Porter's clusters are "geographic concentrations of interconnected companies, specialized suppliers, service providers, and associated institutions in a particular field,(1)" in Israel's case, high-tech. The closeness and interconnectedness of such institutions help foster innovation and economic growth. The authors demonstrate throughout the book how Israel serves as a cluster, if not The Cluster, of high-tech. The three main players that form this cluster, in addition to the business sector, are the Israeli government, universities, and military.

The government encourages immigration and investment in research and development. The investment is both ample (per capita, Israel spends more than any other country on civilian R&D) and smart. The authors cite for example a 16-year old, government-funding program which incentivized investors and effectively gave birth to the country's startup boom in the 1990s.

Israeli universities are world-class scientific research centers which create scientists who naturally find a home in the business sector. In 1959, with the creation of Yeda - the Weizmann Institute of Science's technology transfer company - Israeli academic institutions pioneered the practice of commercializing academic discoveries. This is a particular strength of Israeli universities today.

The unique element in the cluster might be the military. Senor and Singer explore the IDF's significant role in producing innovation. Elite intelligence and technology units train many of the next generation's entrepreneurs. Combat units empower Israelis to make split-second decisions and both assume awesome responsibilities and challenge -rather than blindly obey - their superiors. Compulsory military service is where future business relationships are made and reserve duty is where they are maintained. CEOs don't turn up their noses but seek out veterans and value their experience. The authors survey the birth of Israel Aerospace Industries (IAI) as a case study highlighting the security industry's role as a growth engine for other industries, and how security technologies often migrate into the high-tech industry.

This cross-pollination between government, academia, military and the business sector greatly contributes to Israeli innovation. But the heart and soul of the cluster is Israeli society. The interconnectedness between these institutions works primarily because of Israel's small size and close-knit society. Israeli startup veteran Yossi Vardi's statement that "everybody knows everybody" in Israel is a clich� but not without some truth. But there's more to it than size.

"The greatest contribution of the Jewish people in history is dissatisfaction," Shimon Peres tells the authors. "That's poor for politics but good for science." Peres notes that when a new shipment of the latest technologies arrives from the U.S, within five minutes Israelis are taking it apart and trying to improve. This is true throughout Israeli society. Israelis are constantly inventing and reinventing, thinking and rethinking, trying to improve themselves and everything around them. Additionally, Israelis are not afraid to fail, and most possess the right balance of personal ambition and an individualistic drive with a spirit of collaboration and sense of community. These are all critical success factors for a healthy startup culture.

Try as they may to steer clear from the "Jews are smart" theory, Senor and Singer end up recognizing that the unique conditions of Israel as a Jewish State and Israelis' unique sense of purpose that results are the core of Israel's success as a startup nation. The personal and professional journeys of Israelis Shai Agassi and David Frohman are prime examples. Had Shai Agassi stayed in California, he would have likely been appointed the next CEO of SAP, one of the most lucrative and sought-after jobs in Information Technology. But Agassi, whose story is told in great detail in the book's introduction, decided to help free Israel and the world from oil dependency. An ardent Zionist, he launched Project Better Place, the most ambitious electric vehicle project in history, and chose Israel for his pilot site.

David Frohman helped build Intel from the ground up in California. The obvious career choice for him was to stay put and benefit from Intel's growth and success, yet Frohman returned in 1974 to the Jewish State to realize the then improbable vision of turning Israel into a world leader in chip design. During the 1991 Gulf War, with missiles falling on Israeli population centers, Intel instructed Frohman to "do whatever you must do." Why did Frohman keep Intel's plants open? And why would Intel employees choose to continue showing up to work, as the authors note, "the more brazen the attacks, the larger the turnout?" Senor and Singer answer in a single word - davka, a unique Hebrew word loosely translated as to spite'. Israelis possess a sense of purpose that drives them to thrive davka in the face of security threats and adversity.

After 242 pages of an easy and enjoyable read, one realizes that the answer to the authors' question was hiding in the book's title all along. Israel does not just produce startups, it is a startup. Israel is a young, entrepreneurially spirited, small yet fast-growing, fast-paced, nimble, impatient, risk-taking, anti-hierarchical, creative and - perhaps most importantly - successful startup. If Zionism was a daring two-page business plan (with Herzl as a starry-eyed entrepreneur knocking relentlessly on doors of European venture capitalists), then Israel is its equally unimaginable successful outcome. Today, "The new pioneering Zionist narrative is about creating things," entrepreneur Erel Margalit tells the authors. Startups are not grown in a vacuum; they need the right breeding grounds, an incubator, if you will. And what better country to serve as a startup incubator than a country that is a startup? Therein lies the author's main revelation.

Senor, a former Deputy White House Press Secretary, and Singer, a Jerusalem Post writer, and are first and foremost excellent storytellers. What makes the book a must-read are the dozens of anecdotes and case studies. The authors' two comprehensive rolodexes translate into more than 100 top-quality interviews. They spoke with senior Israeli officials such as Prime Minister Benjamin Netanyahu and President Shimon Peres, met with chief executives at Google, Cisco and Intel, and interviewed military experts, Jewish historians, and some of the key figures in Israel's venture capital and high-tech scene, including Erel Margalit, Chemi Peres, Yossi Vardi, Jon Medved and many others. The outcome is fascinating. The authors' access to industry experts also brings to light lesser known tales, such as the account of a power struggle between Intel Haifa and Intel Santa Clara, which may be the highlight of the book. Senor and Singer unveil a 2003 drama, little known outside the semiconductor industry, in which Intel Haifa managed to save the company and perhaps the entire industry from an almost certain downfall by thinking out of the box and using Israeli chutzpa to relentlessly force senior executives into a paradigm shift.

It is not clear who the target audience is for this book. First and foremost, the authors hope it will become the ultimate playbook for CEOs, a compilation of lessons American executives can learn from Israelis about innovation. Senor and Singer quote HBS Professor Jon Kao, who says that the United States is "rapidly becoming the fat, complacent, Detroit of nations." The authors repeatedly state that America has much to learn from Israeli innovation but struggle to find exportable lessons and end up focusing mostly on what is unique to Israel. Consequently, their recommendations seem forced and not completely hashed out. They derive from the Israeli experience, for example, that mandatory service - either in the military or in some sort of national service - could help foster innovation. But what would this system look like? How would this affect the deeply-rooted capitalist ethos of American society? These questions remain unanswered. Perhaps the book is meant for business students. It is certainly not academic, but Senor's HBS background and investing involvement are apparent through the use of business jargon and academic theories. It is not implausible that a chapter would be used by professors in the field of business innovation, but more than that is unlikely. Most seriously, the authors touch upon but do not offer an adequate explanation of how to take startups to the next level and create larger, viable corporations that thrive over time. Israel may have the same problems.

The book clearly tries to appeal to Zionist audiences. The Jewish authors are unabashedly Zionist and are clearly ideologically motivated. Singer dedicates the book to his brother, an officer in the IDF who was killed in Lebanon. Senor dedicates the book to his father who helped start the Weizmann Institute's pioneering solar energy research program. While the authors need not completely distance themselves from the subject matter in such a book, at times it reads like a Ministry of Foreign Affairs or an "Invest in Israel Hasbarah" (Israel advocacy) book. Their juxtaposition of Israel with Gulf States is helpful in highlighting why growth without civil liberties, creativity, and an engaged population cannot build a cluster of high-tech innovation. But the authors seemed to have too much fun with the analogy, as if to say "look what Israel can do and its Arab neighbors cannot." As a Hasbarah piece, it is indeed the long-lost, mature, sophisticated and beefy cousin of the Israel21Cs and "Israel invented the Cell Phone" burgeoning positive messaging resources, but that's the problem: by definition it isn't a Hasbarah project.

The average business student might enjoy the book as light reading, but it is not likely to be assigned as an academic textbook. CEOs might read it to learn lessons from the stories told, but it falls short of becoming "a playbook for every CEO." There is too much technological jargon for non-techies and at the same time it is probably too journalistic for industry insiders. And for those interested in innovation outside the Jewish/pro-Israel community, the book's Zionist focus might be too hard hitting.

It is impossible to understand Israel as a startup nation without examining the many components that make it so. While there is something for everyone in the book - academic, businessperson, Zionist, technologist and story lover, it is the possibly rare reader who combines all of the above who would take greatest pleasure in the book. That may imply a narrow readership - although I can think of at least one now-post high school business plan writing Israel advocate who thinks it's a must read. There may also be seven million other potential readers, Israeli entrepreneurs who fuse many interests to form an entrepreneurial spirit. But if the authors are right in asserting that all those interested in innovation could stand to benefit from following Israel's entrepreneurial model, this book may be a good place to start.

i Harvard Business School - Institute for Strategy and Competitiveness Web Site - [...].

Exciting, untold story
This book showed me another side to the whole middle east story. It's not just wars and terrorism. There are vibrant, creative, and entrepreneurial activities going on that more people should be aware of.
Also, a great read for anyone thinking about creating a new business. ... Read more

Editorial Review

Presentation designer and internationally acclaimed communications expert Garr Reynolds, creator of the most popular Web site on presentation design and delivery on the net — presentationzen.com — shares his experience in a provocative mix of illumination, inspiration, education, and guidance that will change the way you think about making presentations with PowerPoint or Keynote. Presentation Zen challenges the conventional wisdom of making "slide presentations" in today’s world and encourages you to think differently and more creatively about the preparation, design, and delivery of your presentations. Garr shares lessons and perspectives that draw upon practical advice from the fields of communication and business. Combining solid principles of design with the tenets of Zen simplicity, this book will help you along the path to simpler, more effective presentations.

Reviews

This should be required reading for all presenters..., January 1, 2008
This is everything that I want my presentations to be when I'm up on stage... Presentation Zen: Simple Ideas on Presentation Design and Delivery by Garr Reynolds. This will make you rethink everything you've known (and likely done) about how a presentation should be designed.

Contents:
Introduction: Presenting in Today's World
Preparation: Creativity, Limitations, and Constraints; Planning Analog; Crafting the Story
Design: Simplicity - Why It Matters; Presentation Design - Principles and Techniques; Sample Slides
Delivery: The Art of Being Completely Present; Connecting With an Audience
The Next Step: The Journey Begins
Photo Credits; Index

There's so much good stuff here that it's hard to figure out where to begin. Reynolds advocates for a departure from the ordinary style of presentation involving PowerPoint. You've all sat through those (or given them)... Pages of slides, chock full of text, gratuitous use of special effects, etc. Presentation Zen is more about simplicity and storytelling. Your slides should support *you*, the speaker. If someone can get all the information from your slides, why do they need you? Your slides should not overwhelm the audience, but should draw their attention to the point that you are making in your talk. Couple this approach with the ability to tell stories rather than recite facts, and you can put together presentations that will be appreciated, remembered, and best of all, acted upon.

He also gets into how best to design appealing and arresting slides. Reynolds uses sites like iStockPhoto to avoid the overused and cheesy clipart that comes part and parcel with PowerPoint. And rather than just pasting a graphic on the screen under some text, the graphic *becomes* the slide, and the minimal text is positioned on the graphic in such a way that the slide becomes a work of art. Since I do technical presentations, my first objection was that this doesn't give the listener anything to take away in terms of content. But rather than make your slides the take-away, Reynolds suggests that you put together a separate "handout" document that can be given out after the talk (or downloaded). That document can contain the details and facts that you present, without overwhelming the listener during the actual talk. It's a simple concept, but not one that I've seen done often.

The bad thing about a book like this is it points out just how bad I actually am at presenting. The good thing is that it challenges me (as well as shows me) to get a whole lot better. This should be required reading for anyone before they start to put together anything in PowerPoint...

Useful but disappointing, February 26, 2008
I found Presentation Zen disappointing. It seemed to violate in writing style many of the principles it seeks to correct in slide design, reading more like a meandering conversation over drinks than a well-laid-out, step-by-step primer. For example, the book was frustratingly repetitive, with even the simplest points restated through multiple chapters (really, how many times do you have to suggest using post-it notes?). Some central points came and went quietly in sidebars, and others completely lacked explanation or justification (i.e. the rule for using six words maximum per slide). Every time I thought I was about to discover a new and enlightening concrete principle of visual design with valid reasoning, it seemed the point from the previous chapter was repeated instead. Moreover, exceptions or alternate approaches also weren't considered, such as times when using a whopping seven words on a slide might be useful, or when more complex slide builds and transitions could help an audience grasp a concept. In addition, many of the points made in the book, such as the value of "taking risks," seemed obvious and trite.

Overall, like many tedious slide shows I've endured, I felt the book could have been half as long and made its points with the same clarity, and would have showed more respect for the reader's time. To its credit, it does offer some useful ideas on slide design, and some excellent graphic examples. It's also visually appealing, with beautiful slide reprints, tons of "good" and "bad" examples to learn from, and cleanly-designed pages. Still, I'd trade the appealing design for tighter, more solid, more useful content.

Lacking Gravitas, January 18, 2008
Like many others, I have grown (very) weary of the so-called "death by PowerPoint" culture which saturates the IT sector in which I work. I would gladly substitute every minute of mindless suffering sitting through too many presentations by sales persons and various "engineers" with 150% more time at the Dentist's. Much as I hate visiting my Dentist, at least I'll be healthier afterwards.

Also like many others, I wager, I found out about Presentation Zen the book from Presentation Zen the blog of which I am a fan. I am sorry to report that I am a bigger fan of the blog than I am of the book. First, the good.

The book itself is pleasing with good binding and great color. It's easy to read with clear type and an attractive layout. Chapter heading and sub-headings are clear and the flow of the book's content is harmonious. The reader can tell that good quality work went into the typesetting and publishing--kudos to New Riders.

How about content? Well here a few shortcomings appear and although not enough to dismiss the book outright are enough to cause me wonder. At 230 odd pages, the first impression as I flipped through is how "light" it is, literally and metaphorically. There is a surprising amount of white space and while that's understandable from a design perspective, from a reader's however, it falls short of fulfilling the promise of content a similarly priced book should deliver on.

Focused reading reveals surprisingly little that is original. I stopped counting at 12 the number of books by other authors referenced and quoted from; and while that isn't a crime per se, it's certainly a shortcoming. At best, it looks like Reynolds did a great job of editing, creating a pastiche of content from other authors and the reader might as well do the same thing: amass a large enough library and perform the acquisition of knowledge himself. That, at least, comes with the advantage that reader will be getting it wholesale from the source instead of the Presentation Zen pr�cis.

There is some practical and usable advice (start with analog brainstorming then proceed to the digital, keep the lights on, use a remote) but it's inadequately fleshed out. This information is better presented and with a heightened emphasis on practicality in other books--Beyond Bullet Points by Cliff Atkinson comes to mind, one of the many cited as reference for further instruction.

A possible defense to the accusation of being light is that Reynolds' wrote the book, as the subtitle hints, as more of a philosophical treatise on presentation design. Fine, but even then, it's still light on those points as well. Reynolds is content to regurgitate some Japanese aphorisms and quotes from various personages that, while certainly inspirational, possess little value beyond that. The book ends up reading like a "pop psychology" cheer leading tome than what it means to be: a book instructing on presenting information to an audience.

Some of the subtext I noticed from reading is that Reynolds is a dye in the wool fan of Apple products with little if any regard for PC and PC software (from Windows to PowerPoint) including them as an afterthought, perhaps to sell more books. There is also a subtle but discernable thread of condescension toward American society--the number of "fat" Americans appearing in example slides started getting a little tired after a while. I don't know if this was purposeful and I doubt it, but nevertheless it's there.

The latter section of the book truly runs out of steam replete as it is with examples (with little to no analysis of them) filling page after page of slideware. It peters out with some feel-good advice from the author about creativity, etc. in what felt like padding.

In summary, Presentation Zen owes its existence (with apologies to Isaac Newton) to standing on the shoulders of giants on which it stands. Amazon has it for sale at a great price so definitely get it from here. Otherwise, there's no way I see of plunking down full price for this book at your local bookstore.

Don't buy this book (Unless you want to know all the inside secrets of presentations!), February 8, 2008
There's a reason that none of the country's best presentation coaches and presenters want you to purchase this book: that's because it will put the former out of business, and make you as good as the latter. Seriously!

Garr Reynolds has done what everyone else (at least among the presentation cognoscente) has been talking about for years. He has created what is truly THE book that is an absolute, positive must-read for everyone who is even thinking about presenting. I coach hundreds of entrepreneurs and CEOs each year for their fundraising road shows, and Garr has written and illustrated with stunning clarity the essence of what I and others have been preaching for years: visual clarity, simplicity, presence, planning and more.

If you are even *thinking* about buying a book on presentation skills, this is it. After you devour it cover to cover, you can then go on to the two other books I recommend: "Presenting to Win" by Jerry Weissman, and "The Articulate Executive" by Granville Toogood (the top presentation coaches on their respective sides of the country.) But start here, heed the lessons in this instant classic, and your audiences will be guaranteed to be putty in your hands.

David S. Rose (Described by BusinessWeek as "The Pitch Coach")

And another designer's book . . ., August 23, 2009
I have to rain on the parade of Nancy's book and Garr Reynold's book (and other ones). This is based on the review I gave Duarte's "Slideology."

The message is "I'm one of the best slide designers in the world (which is true) and I'm going to show you WHY."

The message should be "I'm one of the best slide designers in the world and I'm going to show you HOW."

You'll see plenty to interest you, but unless you're a full-fledged graphic designer you'll never recreate these slides. Imagine putting this book (and Duarte's book) into a room with some of your worst slide creators, or even yourself. Would you see an improvement in their skills? I doubt it.

You might as well become a painter by reading books that have the world's greatest pictures in them. Even though there is explanatory text here it isn't enough to bridge the gap.

To see a book written for its audience, try the "Before and After" books by Jon McWade which deal with desktop publishing. Unfortunately John has not yet tackled slides, but you can see an page layout idea and make it yourself in minutes.

So, sorry about this, because both this and Duarte's book are "nice" books. The energy has gone into the book's design and production rather than the content. But that makes them coffee-table books, and unless you have a coffee table in your office I'd advise that you give both of them a miss.

Recommendable only for beginners, January 7, 2009
I had high expectations on this book. And I found it interesting only for beginners. Too much text saying basically the same, and few visuals. I would had expected more, considering that it's a book on presentations.

Design 101, Zen Philosophy 301, December 13, 2008
"Presentation Zen" is written for people tasked to create powerpoint presentations despite the fact that they have no creative talent, no design training, and no money or desire to hire a real designer. It's an all too common fact of business life today.

If this describes you, you'll find the book very helpful. Garr offers good insights on overarching graphic design principles and a Zen philosophy of communicating visually. The reader looking to help develop a mind-set to improve their presentations will find food for thought and action. Taking a holistic approach to presentations, not just the medium of powerpoint, Garr offers well-considered advice that is enough to recommend the book to its target audience.

Further, if you're interested in Zen philosophy, this provides insight into Zen and its relationship to visual design. The mantra of simplicity espoused here is one that can be traced back to art movements of the 1880's, and more specifically the Bauhaus movement in Germany in the 1920's.

However, you may still be hungry after reading Garr's book. Especially if you desire to continue to develop whatever design skills you've discovered while creating powerpoint's. Also, if you are a trained graphic designer, you shouldn't need this book. It reiterates what you should have learned in the first semester of any competent design program. K.I.S.S.

For those wishing to take their design skills to the next level, I would recommend "slide:ology" by Nancy Duarte. This essentially provides a masters' level course in creative design as related to powerpoint presentations.

Replace Bullet Points with Dental Posters That Evoke Positive Feelings, Tell Stories, and Be Mentally Present, October 21, 2008
Long before there was PowerPoint, most presentations contained more columns of numbers and bullet points than pictures. PowerPoint seemed designed to capture the essence of those transparencies and make it faster to create them . . . while adding color. Compared to those ugly transparencies, PowerPoint seemed like an improvement.

By comparison, my dentist has always covered his walls with beautiful bleed images of gorgeous places combined with intriguing sayings about life. Those posters are the only uplifting thing about my trips to the dentist's office. He doesn't tell me any entertaining stories.

In presentationzen, Garr Reynolds shares with us that today's audiences like a standard PowerPoint presentation about as much as I like going to the dentist (I doubt if you are surprised by that). His prescription is to turn the typical presentation into a series of stories aided by exhibits that remind me of those dental posters while being very responsive (present . . . in his terminology) to the audience.

The book's main strength, and one that makes it well worth reading and following, is in describing a process that can be used to create a presentation that will be compelling. Even when I see a presentation that I like, I don't learn much from the example because the presenter doesn't share the process behind the result.

The examples almost all showed someone in a black turtle neck, black pants, and black shoes who looked like a Steve Jobs acolyte. As a result, there's an Apple versus Microsoft tone to the book that didn't match any environment where I ever see or give presentations (usually board rooms and senior corporate conference rooms).

Most presentations should be much shorter, should have a lot less material, and should be much easier to grasp. This book will help you if that's the way you want to go. Beware, however, that you don't go over the edge into becoming an "artiste" in your presentations. This book will probably push you a little too far in that direction.

For those who cannot imagine how an image might fit into a presentation, this book will be a great breath of fresh air. To those who want to copy the advice closely, keep your audience in mind. You might try to take them places where they don't want to go.

In my 30-plus years of presentation experience, I find that the story is the key to success. One good story will more than carry the day. You can draw on a chalk board with your fingernails for graphics and a good story will still work just fine. To me, the weakness of this book is that it doesn't pay enough to the story telling aspect of successful presentations.

I recommend Stephen Denning's books on story telling to help you with that aspect of presentations.

Good concepts; ironically, book misses its own ideals, July 12, 2009
I like the design principles and process tools that are provided in Presentation Zen: those are definitely usable and useful, and if I were rating on the book only on the learnings I came away with, I'd give it higher marks.

But I felt I really had to dock marks because of my experience with the book: I found it quite ironic that, for me, the book really failed in the very goals the author says we should have for our presentations: content that is engaging and is clear.

I was quite surprised to find this book non-engaging: for me, it has been a slog to work through. Typically I can read only part of a chapter before I wanted to put it down. I don't normally read like that, and I can usually get through a book like this within a few days, but it has taken me weeks to endure just the first half!

At first, that left me puzzled: The book has visual appeal; the chapters aren't overly long and there are only ten of them; why can't just get through them? The probable reason came to me in reading the chapter "Simplicity: Why it matters": the author really fails at his own ideals of simplicity. Not in the visual design; the visual design of the book is good in this respect. Rather, he fails to keep the written content simple. That very chapter on simplicity made this apparent to me. Let me explain.

He starts with two pages introducing the topic: simplicity really means clarity: getting the essense of the message and presenting that in a way that's clear for the intended audience -- and a key to that is eliminating the non-essential (simplicity). So far, so good.

Then he spends two pages using a comparison of Steve Jobs and Bill Gates as illustration. Now, I'm not convinced that the stereotypes of these two are fully valid, and maybe that was a factor, but overall these two pages really added nothing to my understanding of the author's message. In other words, for me that was two pages of non-essential content that only distracted and detracted from the author's message.

The next sub-section is six pages long. The last page is well done and simply has a quotation that is relevant to the author's message: "By stripping an image to essential meaning, the artist can amplify that meaning..." (Scott McCloud). But that was preceded by five redundant and somewhat-tedious pages:

The sub-section starts with a discussion of three Japanese concepts: kanso (simplicity), shizen (naturalness) and shibumi (elegance). But the discussion of shizen really just re-iterates the need for simplicity: the recurring theme in that portion is restraint; naturalness is never mentioned after the opening sentence. (Along the way, he introduces another Japanese term "miegakure" without explaining it -- more distracting content that added nothing meaningful for me.) After that is a full-page discussion of elegance, and that was just more elaboration on simplicity (good taste can be attained in restraint). Then there are two more pages ("Wabi-Sabi Simplicity") in which the author further reiterates the less-is-more idea.

That's followed by a page with a side-bar anecdote that I found pretty silly: it leads to a nonsensical conclusion that a fish shop doesn't need any sign to advertise and identify itself. (More useful would have been a discussion of pros and cons for different signs.)

So, six pages on "kanso", "shizen" and "shibumi" that I found highly redundant with many paragraphs of text that added nothing new to the message. I think that has been typical of my experience in the book so far, and the reason I've found it a slog: there's been a lot of content that adds nothing to the message.

Like the bullets of text on slides that the author wants to steer us away from.

How ironic!

In part, I think the author's obvious interest in Zen and in Japanese culture may be contributing to this problem in the book. He wants to include elements of Zen and Japanese throughout the book because they interest his and because they relate to _his_ understanding of simplicity, clarity and elegance. But it seems to me that he failed to apply his own recommendations of going through a process to understand the audience and to tailor the presentation in a way that will get across his core message to them -- including elminating non-essentials. His core message is not about Zen or about Japanese culture (and if those are topics you want to read about, you can find much better books than this). His core message is about something else, and excessive incorporation of these other themes is, at least for me, a distraction.

In summary, then, I found the book to have some really useful ideas on creating presentations, but that they are presented in a way that really misses the mark in the very goals it strives for. I can readily imagine that Reynolds does live presentations on the same topic that are excellent and highly effective, but for me this written presentation is neither of those things. I'd give a buy rating for the usefulness of the ideas but with this strong caveat for the written presentation. (It's the first book on the topic I've read, so I don't have better alternate suggestions.)

Not up to expectations, February 17, 2009
I was really disappointed with this book, perhaps because of the expectations I built after reading the positive reviews. The book lacks originality as many of the key concepts are based on other books.

The author assumes that slides in a presentation should remain very simple with one chart perhaps and/or very few bullet points in each, which I agree is more elegant in the case of live presentations. Often however, business reports come in "power point" formats and are meant to be read without the presence of a presenter, and therefore have to be more comprehensive.

The samples of slides displayed in the book are very well designed and inspiring, which I thought was perhaps the strong point of this book. ... Read more

Editorial Review

NATIONAL BESTSELLER
WINNER OF THE NATIONAL BOOK AWARD

In this groundbreaking biography, T.J. Stiles tells the dramatic story of Cornelius “Commodore” Vanderbilt, the combative man and American icon who, through his genius and force of will, did more than perhaps any other individual to create modern capitalism. Meticulously researched and elegantly written, The First Tycoon describes an improbable life, from Vanderbilt’s humble birth during the presidency of George Washington to his death as one of the richest men in American history. In between we see how the Commodore helped to launch the transportation revolution, propel the Gold Rush, reshape Manhattan, and invent the modern corporation. Epic in its scope and success, the life of Vanderbilt is also the story of the rise of America itself. ... Read more

Reviews

A marvelous biography of a quiet and mysterious man of immense power and stupendous wealth
"The First Tycoon: The Epic Life of Cornelius Vanderbilt" is an impressive and fascinating biography, wonderfully evocative of the quiet man with enormous power, influence and wealth. At the time of his death he owned five percent of America's wealth.

Even though he was known as the king of the railroad, he was much more than that: he was the king of the steamboats and ships, and the king of industries and corporations as well. He built the original Grand Central Terminal in New York, and also the mighty New York Central Railroad system connecting New York with Chicago.

This tycoon also had his share of pains, disappointments, sadness, and regrets that life offers all mortals. His son Cornelius Jeremiah's addiction to gambling and also the affliction of epilepsy greatly distressed him.

Written in simple and lucid prose, the book is gripping and entertaining to the very end: "Vanderbilt was an empire builder, the first great corporate tycoon in American history. Even before the United States became a truly industrial country, he learned to use the tools of corporate capitalism to amass wealth and power on a scale previously unknown, creating enterprises of unprecedented size."

Mr. T. J. Stiles has written a marvelous biography of Cornelius Vanderbilt. Reading this book was a joy.

Stiles Vanderbilt Biography is Good Beyond Words
I don't often write "reviews" because I would prefer to spend the time reading. But Stiles new book demands high praise and unreserved recommendation to any readers who enjoy good history, colorful life stories and well written and compelling narrative. The Vanderbilt story, his times, and Stiles fine writing make this long history pulse with the "can't put it down" quality of a great mystery. This truly is a must-read, and a joy from cover to cover. At the end I only wanted more!

Exceptional at any price
A superlative and memorable biography, easily winning comparison with the works of David McCullough, William Manchester, and Robert Caro. While I joined with those who protested the original Kindle pricing of this book, and am gratified to see the reduction in price, I'll also say that the book is well worth whatever price you pay. It's without doubt a remarkable accomplishment and a rich display of Mr. Stiles' considerable talents.

Fascinating Book
This is a fascinating look at one of the great men of capitalism and the dynamics of the 19th century. Amazing how much is relevant to the situation we are in today.

Ignore the "one star" reviews of those who were complaining about the Kindle product (probably all the same person). Very sad when the review process is hijacked by cheaters.

This book deserves better
Full disclosure: I have the book but haven't finished it yet. I'm enjoying it so far, much as I enjoyed the last book by T.J. Stiles, on Jesse James. Both books are highly readable, and provide a vivid, illuminating portrait of their respective subjects, as well as the society that made them (and which they came to shape).

What compelled me to post a review this early in the process, is the flood of negative ratings - most (if not all) of which are about the e-book's pricing, not the book itself. Those criticisms, however understandable, have little to do with the substance of the book. This book and its author deserve better than that.

A Truly Epic Life
I thoroughly enjoyed reading this biography of Cornelius Vanderbilt. Not only is this his life story but also the story of New York's rise to prominence as the financial center of the United States and the development of transportation that made America such a mobile society. You will also read through the initial stages of a maturing nation during the financial panics and civil war of the 19th century.

Vanderbilt had an enormous influence on each of these as he built one of the first true corporations. The biographer gives a balanced presentation of Vanderbilt as one who not only brought about changes through his unbending competitive nature but also how that nature effected the people and society around him. It is striking to learn how one man's decisions during that time could influence so many for good or bad, and Vanderbilt would do whatever it took to protect his business interests. He did not seem to go to the unethical or illegal lengths that other business leaders did, but he did make decisions that could inconvenience or even harm others. He was a man who marched steadily forward, valuing loyalty and personal integrity. But he was impersonal and grappled with family issues, especially with his sons.

Some of the other interesting parts of Vanderbilt's life were his involvement in Nicaragua and having to raise a small army to face William Walker's filibustering in that country, the internal battles to maintain control of his companies, the determination to consolidate the railroads and the rescue of the nation's economy on more than one occasion. Vanderbilt truly led an epic life during a most transformational period of history. I recommend this biography to anyone interested in Cornelius Vanderbilt because it will give you so much more in understanding how this country developed during his lifetime. It is worth the time and investment. ... Read more

Editorial Review

A richly original look at the origins of money and how it makes the world go 'round

Niall Ferguson follows the money to tell the human story behind the evolution of our financial system, from its genesis in ancient Mesopotamia to the latest upheavals on what he calls Planet Finance. What's more, Ferguson reveals financial history as the essential backstory behind all history, arguing that the evolution of credit and debt was as important as any technological innovation in the rise of civilization. As Ferguson traces the crisis from ancient Egypt's Memphis to today's Chongqing, he offers bold and compelling new insights into the rise- and fall-of not just money but Western power as well. ... Read more

Reviews

The Financial Subplot, November 15, 2008
Niall Ferguson has written an easily accessible and very entertaining history of finance, ranging from the clay tokens of Mesopotamia 5,000 years ago to the hedge funds of today. The title of this book has apparently been modelled on Jacob Bronowski's "The Ascent of Man," and like that book it will be made into a television series. Being a television celebrity is not something that wins the admiration of one's peers in the history profession, to say the least. But those little rebukes are relatively mild compared to the scorn he received for his political views in Empire: The Rise and Demise of the British World Order and the Lessons for Global Power and Colossus: The Rise and Fall of the American Empire. In those works he argued that empire was beneficial not only to the mother country but the dominated countries as well. In this work he chronicles not only the history of money but also makes a case for liberalized finance.

Ferguson examines the financial subplot behind some of the major historical powers such as the role of money in ancient Mesopotamia, the denarius in Roman society, and gold and silver in the civilization of the Incas. He is very good in his descriptions of financial families like the Medicis and the Rothchilds, and how they became banking dynasties. Another memorable episode was the rise of Amsterdam as the world's financial center and the center's subsequent shift to London.

History is also filled with financial disasters of which we are well aware today. Ferguson tells the story of John Law and how he became France's head of finance. He engineered a financial bubble that took them several generations to overcome. Making matters worse, it occurred at the same time as the British South Sea Bubble.

Also instructive is the history of the first great globalization (1870-1914). (For this period also read Jeffrey Frieden's Global Capitalism: Its Fall and Rise in the Twentieth Century.) The world had become so economically interdependent that the pundits believed the possibility of war between great powers had been eliminated. This sentiment was famously expressed in "The Great Illusion" by Norman Angell.

Although this book was written before the current economic crisis, the last chapter is very prescient. "From Empire to Chimerica" tells of the symbiotic relationship between China and America. The combined country "accounts for just over a 10th of the world's land surface, a quarter of its population, and a third of its economic output, and more than half of the global economic growth of the last eight years". This relationship, in which China saves and America spends, and in which China's savings is used to enable America to spend even more, is clearly unsustainable. Ferguson sees this savings glut as the cause of the current subprime crisis. That, in my humble opinion, was one of the causes; there were many bad actors involved in this catastrophe, citizen-borrowers included.

Although it is not obvious to everyone in the midst of a crisis, Ferguson correctly points out that financial engineering is one of the great forces behind human progress. The history of finance is a process of creative destruction. Financial risk-taking is necessary for economic expansion and human development, and Ferguson does a good job in making the case. Too bad it reads like a script made for the History Channel.

Good overall narrative, sketchy on the details, August 28, 2009
Angry about the bankers going bust? Ferguson starts from this premise to educate the reader into the history behind how international finance got to its current position. Beginning with loan tablets in ancient Mesopotamia, Ferguson traces the origins of government lending, the stock market, the bond market, the mysteries of quants, and a fascinating final chapter on how China and America have up to now been in a symbiotic relationsip with Chinese goods funding American avarice, but this may not be for much longer.

Ferguson's books have been getting bigger and more ambitious the more famous as he has become. With this comes a necessary amount of reductive argument, lurching from Glasgow loan sharks, to Potosi silver mines, to the reckless Scotsman John Law who set up a French state bank in the 18th Century which ended up ruining its investors. This is probably because, like all Ferguson's recent books, it is a TV tie in.

Ferguson is also very much in favour of globalisation and international finance. He plugs the book in the introduction as a teaching tool for those who are sceptical or shaky of the systems that drive money around the world. Wise up, or be a loser is his essential message. This book was finished just before the great bank collapse, and as a result doesn't have much to say on the current crisis.

This kind of chest thumping history is clearly very lucrative for Ferguson, but after his brilliant early books on the Rothschilds and the First World War, one can't help thinking with his mid career media don posing, he has acted a bit like the hedge fund managers such as Ken Griffin he idolises in this book who gained great wealth at the expense of something more solid, decent and lasting.

TV tie-in, not a history book, December 20, 2008
When I was given this book, my heart leapt because I know Niall Ferguson is a robustly contrarian, sharp, articulate and well-informed historian, but it sank immediately that I saw that the book, like many of his recent works, was again based on a television series. Ferguson is a man of genuine talent; it is a shame he chosen to prostitute that talent. No doubt "The Ascent of Money" made for a TV show of far more than average quality, but the book is necessarily scrappy and somewhat shallow. It seems to evolve according to the picturesqueness of certain locations (the televisual imperative), rather than the logic of the argument. I would like to see the television link flagged much more prominently on the cover so one is made aware in advance that this is not a serious work of history, but a potboiler designed to raise funds so that Ferguson can boost his earning power to the levels of equally (or less) brainy college contemporaries who went into finance or the law. Frankly, I was disappointed. I hope Ferguson will get back to being a proper historian soon.

Descriptive but not Prescriptive, May 17, 2009
Niall Ferguson's THE ASCENT OF MONEY, as its subtitle promises, is a broad overview of financial history, from the dawn of the first form of currency in Ancient Mesopotamia to the proliferation of complex residential asset-backed securities early in the twenty-first century. In six chapters, Ferguson traces the genesis and evolution of the pillars of modern finance: currency, bonds, corporate stock, insurance, and real estate. A final chapter focuses on the US and China's symbiotic debtor-creditor relationship, and an afterword discusses the current global recession and includes a somewhat strained evolutionary analogy comparing financial development to natural selection.

The objective here is to illuminate the modern economic system by surveying its historical origins, and to a large extent, Ferguson succeeds. The book is targeted to a lay audience and such readers are certain to walk away from a reading with an enhanced understanding of modern economics. The author generally takes the time to explain even elementary concepts in an effective manner, but there are also several maddening instances throughout where he casually references somewhat arcane metrics and complex ideas (e.g., VaR) without any explanation as to their meaning and significance. In this respect, Ferguson can be at times simultaneously too basic for the advanced reader and too complex for the novice.

Never dry reading, the narrative flows freely over its 358 pages, with perhaps the most interesting and edifying chapters being those on the bond, equity, and real estate markets. I especially enjoyed Ferguson's exploration of the five stages of "bubble" (displacement, euphoria, mania, distress, and revulsion).

Ultimately, though, the book will be of most benefit to those with a casual interest in economics, as it is entirely descriptive and not prescriptive. Ferguson never really offers anything resembling a thesis, nor does he reveal his own views except for the most fleeting of moments when singing the virtues of late-19th/early-20th century imperialism. He is focused exclusively on reporting, not analyzing. As such, THE ASCENT OF MONEY, though well-written, does not transcend its status as a historical chronicle and will be of trivial value to those seeking a sophisticated economic treatise.

Erudite hodgepodge, December 5, 2008
When I saw the interview with Niall Ferguson on CNN, I thought that I would get an insightful book that would enable me to understand and navigate the current economic crisis. After all, Ferguson is a Harvard professor (thus he is superbly credentialed), and the interview suggested that he had the foresight of the coming events.

Yet the book turned out to be an utter disappointment. On the surface, the book seems to have a good structure. The chapters logically follow a sequence: the history of money, credit, bonds, stocks, insurance, real estate, globalization, hedge funds, computer models of investing, and behavioral finance. The text is easy to read and crafty. However, the chapters fall short on several accounts. The chapters present selected events in the history of their respective subject rather than a broad overview. I did not expect a comprehensive history, but the selection was minimalist, often skewed, and the events were more often than not presented in a disjointed manner. There was some semblance of logic tying them together, but one had to know way more than the average reader to see the connection. If the reader had that kind of knowledge, the book did not offer much. Without the knowledge, the book's logic was lacking and, indeed, contained gaps and jumps.

Even before I reached the end of the book, I developed the feeling that the Author's pretty shameless primary goal was to write a book that can sell many copies, and make money. It is a quickly assembled patchwork that, in spite of the polished writing, is mostly useless fluff. There are much better books on the subject that will explain the concept of money and the current economic crisis. (Just an example: Robert Prechter's Conquer The Crash, published in 2002.) Since the interview on CNN, I heard additional interviews with Niall Ferguson (e.g., on NPR). The timing of the publication and the marketing efforts are way superior to the qualities of the book.

If you can borrow this book from someone, you will only waste some time by reading it, but at least you will save your money. This book is certainly not worth having on your shelf - in the long run it will only collect dust, and you will not open it again. Probably you would be better off not reading it at all (there are better alternatives). The knowledge you will gain is most likely not proportionate with the time invested (wasted) in the reading. The two stars I gave might be a little too generous, especially considering that one expects a much better book from a Harvard professor. However, I have to give credit for the style and a modicum of usefulness.

Should be titled "The Descent of Harvard", December 30, 2008
In these hard times, we really could use an up-to-date, thoughtful reappraisal of the history of finance and the role it has played in advancing and periodically severely retarding economic and political development around the world.

Unfortunately this is not it.

Prof. Ferguson, who divides his time between Harvard and Oxford, has become the "James Michener" of world history. He writes effusively on everything from "Britain's contributions to civilization" and "warfare in the 20th century" to "the Rothschilds." Having dipped into several of his long-winded tomes, I can honestly say that the game has seldom been worth the candle.

And now this. Here a documentary project for Channel 13 evidently drove this "Ascent" book project, with predictable consequences -- jump cuts from subject to subject that leave readers almost sea-sick; topic choices that seem to have been made for video potential and notoriety, not objective importance; "mile wide, inch deep" scholarship that yields a very large pile of half-truths and incomplete thoughts.

I did like his chapter on housing finance, though it raised many more questions than it answered, and seemed to suggest that ignorant residential borrowers had more to do with the current debacle than, say, trillions in derivatives issued by Wall Street banks and insured by outfits like AIG.

Clearly the faults are not for want of ability. Where Prof. Ferguson actually gets up out of the armchair and does some first-hand research, as in his treatment of the Rothschilds, we get a few moments of serious, original scholarship.

Beyond that, and a few colorful tales, the book amounts to coffee table nostrums for readers who want to be reassured that the "wall is not coming down" on our Capitalist Empire.

Among Prof. Ferguson's comforting conclusions: (1) finance capitalism really is the best of all possible worlds, at least in the long run; (2) hedge funds and global banks really are wonderful new instruments for "guarding against risk"; (3) "financial innovation" really is "indispensable" -- despite all the innovation in REGULATION that this wizardry seems to constantly requires; and (4) "poverty" is NEVER "caused by" financial innovation -- a conclusion that Ferguson repeats over and over, never with any evidence. (This one may come as a surprise to the 2 billion citizens of low-income countries outside China and India whose incomes utterly failed to grow from the late 1970s to 2000 because of "Third World sub-prime loans."

The book also contains any number of factual errors. The dollar has strengthened, not declined, during current financial crisis. China and other Asian countries have hardly "decoupled;" quite the reverse. Chile's 17-year flirtation with fascism under the corrupt, bloodthirsty Pinochet regime was a horribly costly mistake, not some interesting little experiment with privatized pension funds. China's economic backwardness in the 19th was not due to a shortage of financial institutions (which are not an "uncaused cause" of anything) but to -- as Ferguson, contra ipsum, seems to acknowledge -- the impact of Western imperialism on China's weak state; Ken Griffin's Citadel hedge fund is hardly a work of genius, but a monumental failure; etc. etc. etc.

In short, this is a dumbed down, pollyanish, made-for-TV "hasty pudding" of a book. Its success - like the mortgage debacle itself - is based largely on hype and the "impeccable reputation" of its principle "securitizer."

We need to remember two golden rules of book selection -- (1) always be suspicious whenever a film project leads to a book, rather than the reverse; and (2) always be suspicious of any book whose title is printed in a smaller font than that of the author's own name.

BOGUS BOOK, DELIVERS TOO LITTLE, November 23, 2008
Niall Ferguson has published another sweeping book, this time in his purported field of expertise in financial history, not in political economic history, where he had most famously written 'The War of the World.' For that one must be grateful, since his neo-imperialistic views, sensational support of empires and subjugation, and controversial justifications of Nazism, were just too jarring.

Here he makes an ambitious attempt to tell the whole story of finance. It begins in Mesopotamia and ends in the credit crisis of 2008. The title is a play off the title of Jacob Bronowski's Ascent of Man. Overall it is a considerably worse book than Birth of Plenty by William Bernstein, and even more so when compared to Empire of Wealth, a recent book on economic history. It cannot replace Peter Bernstein's trilogy, including Against the Gods, Gold and Capital Ideas. It lacks the details of Vincent Carruso's Investment Banking in America or other detailed tales of financial history. Yet it lacks synthesis too, certainly when compared to Birth of Plenty or Bernstein's trilogy.It is worth buying though, hence the 4 stars, but only for a quick jog through history, not for an understanding of it.

The book does not delve deep into the details, which is its weakness. It does not give a bird's eye view either, because the vignettes he chooses, the facts he emphasizes, and the stories he stresses are generally the unimportant ones. That flaw is not only true of ancient finance, about which he may not be an expert, but also so of medieval and modern financial history, an area in which he should have better selected the stories he chose to emphasize.

What the author ends up doing is overemphasizing stories about the Rothschilds, who he covered in a bio years ago, or about current events, including ones about the current credit crisis, which seems oddly placed (and likely added at the last minute, once the markets collapsed and the book likely appeared too optimistic). There are at least two references to the compensation of Lloyd Blankfein, CEO of Goldman Sachs, anecdotes which would be out of place in any serious history of finance. Then there are the detailed discussions about some obtuse scandal in Britain but hardly the same space to Enron or Milken or other scandals which have plagued history.

Not only is the selection of stories poorly done but the level of the narrative also fluctuates between sweeping statements unsupported by the facts (a habit of Niall Ferguson) or minute details about this or that, very often irrelevant to boot, leaving the book appear put together in a hurry (which too is a longstanding weakness of the author). There is the mathematical formula of the Black-Sholes, which seems out of place in a short history of finance, and especially so since the author claims he does not even understand what it means. The points made could surely have been driven home without the formula.

Third and worst still is the decision of the author (or his research assistant) to summarize issues into five or six bullet points, a la a McKinsey presentation. This occurs in several places, with paragraph headings (!) and summaries, a style unsuitable for a history book, and truly not even used by newspapers. One does not buy a book to rush through issues in bullet points!

Fourth, the author has tacked onto the end of the book a note about the Descent of Finance. Clearly he does so to tone down the story, to fit the current collapse of the markets, but there too he insists on playing on Charles Darwin's Descent of Species, much as his title plays off Jacob Bronowski's Ascent of Man. The only problem is that the title of the Epilogue must convey the current sad state of affairs, and it does, but to explain the title as having a double meaning, that it also refers to the organic evolution of finance, is too kitchy and clumsy. Such clever simplicities pervade the book.

Finally, the book inevitably also misses the mark on account of the messenger. Niall Ferguson is at his best a neo-imperialist who believes in the superiority of one dominant empire, versus today's multipolar world. Such a stance cannot but weaken both his credibility and capability in explaining finance, which is at its core a diffused, democratic, even chaotic, system. In sum thus, this book is too quickly written, too carelessly put together and too clumsy in its conclusions to have a long shelf life.

Readable and engaging, November 14, 2008
Historian Niall Ferguson teaches economic history at Harvard so he certainly has credentials for a book like this. While his historical knowledge is impressive his financial claims can seem a bit cavalier and broad-sweeping.

Ferguson celebrates financiers as the source of modern wealth and prosperity. He backs up his claim by a historical examination of the last 500 years. This includes the Italians in the late Middle Ages, as well as the Dutch in the 17th century and Britain's empire success which he partially attributes to the establishment of the Bank of England in 1694.

After setting the historical context Ferguson becomes a pundit on the current global situation. Commenting on those who speculate in the financial markets today Ferguson writes, "When people have a run of luck, they very quickly impute this to their own brilliance. Once you start interpreting your good fortune as your skill, you're very quickly a master of the universe who can never fall. That, of course, is precisely when you fall." He likens financiers to gamblers, which may not be a completely fair connection. Of course there is risk involved in investing, but the primary concern in the financial world is how to limit that risk, react wisely, and be patient.

As Ferguson considers the financial crises his assessment is neither overly positive nor calamitous. "Before this crisis," Ferguson says, "there were people who thought there would never be another recession--that kind of crazy, myopic, unhistorical belief. That was followed in the last month or so by wild panic, as if it's the end of the world."

Ferguson states the obvious when he declares we will all be affected by the current financial mess, and that it will take a while for the market to correct itself.

In short, if you like history more than finance, this is going to be an enjoyable book for you. However, if it's the other way around the details might be suffocating.

below average, July 16, 2009
I am not an expert in finance but I am an avid reader of history. In that context, I do agree with many of the 1 and 2 star reviewers about this book.

Firstly, the subtitle is a bit presumptuous. This is not a financial history of the world. It is a financial history of the western world and other bits that affect the western world. The treatment of non western economy is given only a passing glance. The chapter on Chimerica is only detailed because of it's impact on American finance.

Secondly, there is an obvious bias that I have seen before with popular attempts at scholarship. There is an underlying thesis. In this book it seems to be that capitalism is good and so all of history is reinterpreted in fulfilment of this thesis. To seriously suggest that WWI was caused by a reaction against globalization simply ignores the nationalist political pressures that were building up in Europe for nearly half a century that only had an incidental connection to trade and finance. Statements like this merely made me wary of any other conclusions.

Thirdly, and probably the biggest sin for a popular work, is that it was unnecessarily wordy and therefore dull. I agree with other reviewers who found that there were large jumps of logic, time and geography which made following the text difficult. Indeed some of the text is reproduced verbatim in the TV series narrative. Having said all that there were still excellent chapters such as the discussion of the Rothchilds.

It would have been better to conclude with a chapter on the Global Financial Crisis as we now know it, but that will probably form another book a few years from now when it is all over.

In brief: wordy mediocre history which is sometimes difficult to read.

One star or minus two?, June 8, 2009
The author is a professional historian. However, he seems to have decided it is more profitable to be a pundit. As others have remarked, the historical presentation is more anecdotal than comprehensive. Sadly, the author has elected to cherry pick his history to make his points rather than tailoring his notions to fit history.

Ferguson seems to think the Chicago school thinking on economics is, in some sense, definitive. One would expect a historian to actually look at the history of outcomes where Chicago school theories have been applied. Applications range across South America and to Russia, across the 1970s into the 1990s. One might reasonably expect, were the theories sound, all successes or at least mostly successes. Instead, the failure rate is 100%. Interestingly enough, Anna Schwartz spoke in public recently. (The Chicago school is, allegedly, founded on the Schwartz-Friedman tome "Monetary History of the United States.") She very circumspectly implied disagreement with the theories of that school other than the very narrow area of the book itself. It was almost if one were speaking with a constitutional conservative now sitting on the Supreme Court. Yes, at 93 she is still alive, well, working at the NBER and still sharp as a tack.

Then Ferguson misanalyzes both the LTCM implosion and the sub-prime mortgage disaster. Evidently the author knows little about the Black-Scholes-Merton theory, its reliance on the Central Limit Theorem and the limitations of the CLT in the real world. The short version of that is, when you most need protections provided by the CLT is the precise time when the precursor conditions break down, making the CLT no longer applicable. Add ever shrinking profit per trade, resulting from other players analyzing the nature of what LTCM was doing, followed up by the desire to keep making very high rates of return which implied ever increasing leverage and you have the witches brew that was the LTCM situation before the Baht collapsed. The collapse of the Baht triggered a domino effect which meant the CLT no longer applied. Vastly excessive leverage meant LTCM had less than no chance to weather the storm. This critical truth is left out of the author's analysis.

In the banking and financial sector, certain key facts were also notable by their absence. Imagine writing an insurance policy in which the following are true: 1. you have no idea how often the event which will trigger payment will occur; 2. you have agreed to pay out 100% of the face value of this policy even if the losses are less than 1% (but greater than zero); 3. you decide to write such policies for more than the total net worth of your company. Can you say, "AIG?"

Bankers saw AIG make huge profits, so decided to sell their own wholly opaque, unregulated derivatives, CDOs, CDSs and all the rest. Were it not of such disastrous proportions, the situation might have been amusing in its irony. A bunch of supposedly prudent bankers engaged in trading instruments the value of which was intentionally made indeterminate and, arguably, indeterminable, to one another on a scale far beyond the national debt and the GDP combined.

The irony occurred when these same bankers then appeared before congress and claimed that rocket science was required to value said derivatives which they themselves had intentionally made to have uncertain value.

All this and much, much more was swept under the rug by Ferguson. I expected a far better book of considerably more accuracy and analytic care than this. ... Read more

Editorial Review

THE NATIONAL BESTSELLING BOOK THAT EVERY INVESTOR SHOULD OWN

Peter Lynch is America's number-one money manager. His mantra: Average investors can become experts in their own field and can pick winning stocks as effectively as Wall Street professionals by doing just a little research.

Now, in a new introduction written specifically for this edition of One Up on Wall Street, Lynch gives his take on the incredible rise of Internet stocks, as well as a list of twenty winning companies of high-tech '90s. That many of these winners are low-tech supports his thesis that amateur investors can continue to reap exceptional rewards from mundane, easy-to-understand companies they encounter in their daily lives.

Investment opportunities abound for the layperson, Lynch says. By simply observing business developments and taking notice of your immediate world -- from the mall to the workplace -- you can discover potentially successful companies before professional analysts do. This jump on the experts is what produces "tenbaggers," the stocks that appreciate tenfold or more and turn an average stock portfolio into a star performer.

The former star manager of Fidelity's multibillion-dollar Magellan Fund, Lynch reveals how he achieved his spectacular record. Writing with John Rothchild, Lynch offers easy-to-follow directions for sorting out the long shots from the no shots by reviewing a company's financial statements and by identifying which numbers really count. He explains how to stalk tenbaggers and lays out the guidelines for investing in cyclical, turnaround, and fast-growing companies.

Lynch promises that if you ignore the ups and downs of the market and the endless speculation about interest rates, in the long term (anywhere from five to fifteen years) your portfolio will reward you. This advice has proved to be timeless and has made One Up on Wall Street a number-one bestseller. And now this classic is as valuable in the new millennium as ever. ... Read more

Reviews

Be smart and BUY this book!
We really do know more than we think about investing. This book shows you how to apply your knowledge to make good investments.

But, like many people, I didn't have spare money to make investments with.

So I also recommend the book, SIMPLE MONEY SOLUTIONS, because it showed me and my kids how to "free up cash" every month without feeling deprived.

I highly recommend both books!

These 2 Books Worked For Me, Too
Make sure you are buying the correct version. This one here is listed as mini version. (I've seen this version get a lot of bad reviews.) Mini version is cheaper = $4.50 but the FULL version is $9.50. The full version is the more famous of the two.

The 2 Best Money Books of 2000
This is *not* the full version. Check out the size and the number of pages and compare to other versions. Don't buy this book if you want the complete version.

Great book!
This is the sixth book I have read on investment in one year. Along with "A random walk down wall street" by Burton Malkiel it has bee the best and most informative. For a while I do not think I will read any investment books before I make sure I can follow Mr. lynch's SIMPLE AND PROFITABLE advice. His classification of stocks are great and his timing for buying and selling each of these classfication are also great (fast growers, slow growers, turnarounds, asset plays, cyclicals). His chapter "stocks I would avoid" is full of sincere warnings of foolish mistakes we make over and over. Add to this the introductory chapters where he explains why we should invest in what we already know makes this book a must read. It is amazing how many opportunities we all miss on stocks that are right in front of us, yet we ignore them and waste our time finding the hottest stocks when mostly these stocks are overly priced. Let me tell you about a small example of what I am talking about. I use Yahoo finance alot in my research almost on daily basis, but I never thought of knowing the company that provides it with all this wonderful information. And while once scrolling down the Yahoo page I read that Tibco Software provides it with the quote technology. (I remembered Lynch when he says that we spend most of our time trying to find the great stock when the great stock has been striving to find us). I rushed to check the stock out. Too bad it has already increased more than tenfold in a month time. GOOD LUCK TO ALL OF YOU WITH YOUR NEXT TEN BAGGERS.

The *MOST* SENSIBLE and FUN investment book you'll ever read
Forget about those "Here-are-my-Wall-Street-secrets- that-will-make-you-a-millionaire" books. Peter Lynch takes all the "non" out of the "nonsense" about investing in stocks. For whoever you are, you're an expert in your field and you can beat Wall Street fund managers by following two simple Peter Lynch rules: "Invest in what you understand" and "Invest in companies you like". Not only will this be MOST SENSIBLE and USEFUL investment book you'll ever own, it'll also be the MOST FUN investment book you'll ever read. BUY THIS BOOK! ... Read more

Editorial Review

How to profit from the events leading up to the likely collapse of the U.S. dollar

Society is at a crossroads. Here at home and around the world, we are living in a manner that is absolutely, unconditionally, irrevocably unsustainable. The Day After the Dollar Crashes: A Survival Guide for the Rise of the New World Order outlines the kinds of events that could trigger a global economic collapse, describing in detail the events that are likely to occur just prior to, during, and immediately following such a total collapse. It also explains how investors can profit and support a sustainable future by anticipating social trends. The book

• Describes what government can do now to soften the dollar's fall later
• Details how to lead the charge to introduce innovations and solutions to meet the inevitable challenges of new kinds of economic forces
• Reveals how to profit by changing expectations and taking action to align investments with reality

The Day After the Dollar Crashes tears away the illusions generated by politicians, media, and the financial industry to show how investors can position themselves to survive and thrive in a New World Order. ... Read more

Editorial Review

One of the world's foremost experts on business leadership distills 25 years of experience and wisdom in this visionary guide to what it will take to lead the organization of the 21st century. "Every business leader can profit from Kotters thinking on change."--Larry Bossidy, Chairman and CEO, AlliedSignal, Inc. Available August 1996. ... Read more

Reviews

"The Eight Steps to Transformation"
"Over the past decade," John P. Kotter writes, "I have watched more than a hundred companies try to remake themselves into significantly better competitors. They have included large organizations (Ford) and small ones (Landmark Communications), companies based in United States (General Motors) and elsewhere (British Airways), corporations that were on their knees (Eastern Airlines), and companies that were earning good money (Bristol-Myers Squibb). Their efforts have gone under many banners: total quality management, reengineering, right-sizing, restructuring, cultural change, and turnaround. But in almost every case the basic goal has been the same: to make fundamental changes in how business is conducted in order to help cope with a new, more challenging market environment. A few of these corporate change efforts have been very successful. A few have been utter failures. Most fall somewhere in between, with a distinct tilt toward the lower end of the scale. The lessons that can be drawn are interesting and will probably be relevant to even more organizations in the increasingly competitive business environment of the coming decade."

In this context, John P. Kotter lists the most general lessons to be learned from both (I) the more successful cases and (II) the critical mistakes as follows:

I. Lessons from the more successful cases:

1. Establishing a sense of urgency

* Examining market and competitive realities

* Identifying and discursing crises, potential crises, or major opportunities

2. Forming a powerful guiding coalition

* Assembling a group with enough power to lead the change effort

* Encouraging the group to work together as a team

3. Creating a vision

* Creating a vision to help direct the change effort

* Developing strategies for achieving that vision

4. Communicating vision

* Using every vehicle possible to communicate the new vision and strategies

* Teaching new behaviors by the example of the guiding coalition

5. Empowering others to act on the vision

* Getting rid of obstancles to change

* Changing systems or structures that seriously undermine the vision

* Encouraging risk taking and nontraditional ideas, activities, and actions

6. Planning for and creating short-term wins

* Planning for visible performance improvements

* Creating those improvements

* Recognizing and rewarding employees involved in the improvements

7. Consolidating improvements and producing still more change

* Using increased credibility to change systems, structures, and policies that don't fit the vision

* Hiring, promoting, and developing employees who can implement the vision

* Reinvigorating the process with new projects, themes, and change agents

8.Institutionalizing new approaches

* Articulating the connections between the new behaviors and corporate success

* Developing the means to ensure leadership development and succession

II. Lessons from the critical mistakes:

1. Not establishing enough sense of urgency - A transformation program requires the aggressive cooperation of many individuals. Without motivation, people won't help and the effort goes nowhere.

2. Not creating a powerful guiding coalition - Companies that fail in this phase usually underestimate the difficulties of producing change and thus the importance of a powerful quiding coalition.

3. Lacking a vision - Without a sensible vision, a transformation effort can easily dissolve into a list of confusing and incompatible projects that can take the organization in the wrong direction or nowhere at all.

4. Undercommunicating the vision - Transformation is impossible unless hundreds or thousands of people are willing to help, often to the point of making short-term sacrifices.

5. Not removing obstacles to the new vision - Sometimes the obstacle is the organizational structure: narrow job categories can seriously undermine efforts to increase productivity or make it very difficult even to think about customers. Sometimes compensation or performance-appraisal systems make people choose between the new vision and their own self-interest. Perhaps worst of all are bosses who refuse to change and who make demands that are inconsistent with the overall effort.

6. Not systematically planning and creating short-term wins - Creating short-term wins is different from hoping for short-term wins. The latter is passive, the former active. In a successful transformation, managers actively look for ways to obtain clear performance improvements, establish goals in the yearly planning system, achieve the objectives, and reward the people involved with recognition, promotions, and even money.

7. Declaring victory too soon - Instead of declaring victory, leaders of successful efforts use the credibility afforded by short-term wins to tackle even bigger problems.

8. Not anchoring changes in the corporation's culture - Change sticks when it becomes "the way we do things around here," when it seeps into the bloodstream of the corporate body. Until new behaviors are rooted in social norms and shared values, they are subject to degradation as soon as the pressure for change is removed.

Finally, John P. Kotter writes, "There are still more mistakes that people make, but these eight are the big ones. In reality, even successful change efforts are messy and full of surprises. But just as a relatively simple vision is needed to guide people through a major change, so a vision of the change process can reduce the error rate. And fewer errors can spell the difference between success and failure."

Highly recommended.

Make Change Irresistibly Attractive
The leaders of some organizations have no idea how to make successful changes, and are likely to waste a lot of resources on unsuccessful efforts. Professor Kotter has done a solid job of outlining the elements that must be addressed, so now your organization will at last know what they should be working on.

On the other hand, if you have not seen this done successfully before, you may need more detailed examples than this book provides or outside facilitators to help you until you have enough experience to go solo. I suspect this book will not be detailed enough by itself to get you where you want to go.

Here's a hint: The Harvard Business Review article by Professor Kotter covers the same material in a much shorter form. You can save time and money by checking this out first before buying the book.

I personally find that measurements are very helpful to create self-stimulation to change, and this book does not pay enough attention in that direction. If you agree that measurements are a useful way to stimulate change, be sure to read The Balanced Scorecard, as well, which will help you understand how to use appropriate measurements to make more successful changes.

If you want to know what changes to make, this book will also not do it for you. I suggest you read Peter Drucker's Management Challenges for the 21st Century and Peter Senge's Fifth Discipline.

Good luck!

Eight-stage process for transformation programs
John P. Kotter is Professor of Leadership at the Harvard Business School. He has written several books and articles on general management and leadership issues. This particular book builds on his 1995 Harvard Business Review-article 'Leading Change: Why Transformation Efforts Fail'.

The book is split up into three parts. In the first part - The Change Problem and Its Solution - Kotter discusses the eight main reasons why in many situations the improvements have been disappointing, with wasted resources and burned-out, scared, or frustrated employees. Each of these eight errors are discussed in detail, using simple, clear examples. "Making any of the eight errors in common to transformation efforts can have serious consequences." But Kotter argues that these errors are not inevitable. And this is why Kotter has written this book. "The key lies in understanding why organizations resist needed change, what exactly is the multistage process that can overcome destructive inertia, and, most of all, how the leadership that is required to drive that process in a socially healthy way means more than good management." In Chapter 2, Kotter discusses the reasons why organizations (can) need changes and improvements. Although some people suggest otherwise, Kotter believes that organizations can implement change successfully. "The methods used in successful transformations are all based on one fundamental insight: that major change will not happen easily for a long list of reasons." Kotter introduces an eight-stage process for creating major change.

This eight-stage process is discussed in Part Two of this book:
(1) The first stage of the process involves the establishment of a sense of urgency, which is required to overcome complacency. The nine sources of complacency are discussed, whereby Kotter emphasizes that "a good rule of thumb in a major change effort is: Never underestimate the magnitude of the forces that reinforce complacency and that help maintain the status quo." He further discusses methods for raising urgency levels, the role of crises, and the role of middle and lower-level managers.
(2) The second stage involves the creation of a guiding coalition. "A strong guiding coalition is always needed - one with the right composition, level of trust, and shared objective." According to the author the four key characteristics to effective guiding coalition are position power, expertise, credibility, and leadership. And he emphasizes that management and leadership must work in tandem, teamwork style.
(3) The third stage requires the development of a vision and strategy. Good vision clarifies the general direction for change, motivates people to take action in the right direction, and it helps coordinate people's actions. The characteristics of an effective vision are imaginable, desirable, feasible, focused, flexible, and communicable. But vision alone is not enough. "This is where strategy plays an important role. Strategy provides both logic and a first level detail to show how a vision can be accomplished."
(4) The power of a vision is most powerful when all people within an organization have a common understanding of its goals and direction. Although the general myth is that failures to communicate vision are attributed to either limited intellectual capabilities among lower-level employees or a general human resistance to change. But that is not really the problem. The vision needs to be communicated in a clear, simple message (focused and jargon-free). Kotter discusses each of the seven key elements in the communication of vision.
(5) Empowering employees for broad-based action - "Discouraged and disempowered employees never make enterprises winners in a globalizing economic environment. But with the right structure, training, systems, and supervisors to build on a well-communicated vision, increasing numbers of firms are finding that they can tap an enormous source of power to improve organizational performance. They can mobilize hundreds or thousands of people to help provide leadership to produce needed changes."
(6) Major change takes time and it is therefore advisable to pay serious attention to short-term wins. Short-term wins should be visible, unambiguous, and related to the change effort. Short-term wins play various roles in a change effort, most notably building the necessary momentum.
(7) Many forces can stall a change process short of the finish line. And we should be aware that irrational and political resistance to change never fully dissipates. We should not let the celebration of short-term wins allow complacency back into the organization. We should also be aware that progress can slip away for two reasons: corporate culture (see more in the next stage) and increased interdependence as a result from interconnections.
(8) "Culture refers to norms of behavior and shared values among a group of people." In large organizations, there are some social forces (corporate culture) that affect everyone. Corporate cultures have a powerful influence on human behavior, since it is almost impossible to change and invisible. Kotter believes that "culture is powerful for three reasons: (i) Because individuals are selected and indoctrinated so well. (ii) Because the culture exerts itself through the actions of hundreds or thousands of people. (iii) Because all of this happens without much conscious intent and thus is difficult to challenge or even discuss." He provides with one other important warning: "most cultural change happens in stage 8, not stage 1."

Part III - Implications for the Twenty-First Century - consists of two chapters. In the first chapter, Kotter discusses the organization of the future. In particular, the impact of the future on the eight stages in the change process. There is an interesting table, which compares the differences in structure, systems, and culture between 20th-century and 21st-century organizations. "The key to creating and sustaining the kind of successful 21st-century organization is leadership - not only at the top of the hierarchy, with a capital L, but also in a more modest sense (l) throughout the enterprise." These two notions are discussed in detail in the final chapter of the book.

Yes, this is an excellent book on controlling change. The book provides an extremely useful framework for a change process and should be kept as a checklist. Although the process looks rigid, the stages are flexible and take place concurrently. I recommend this book to all people involved in a major change process within larger organizations. The author uses simple business US-English.

Clear and direct to the point guide for management success.
This invaluable reading helped me navigate through the numerous challenges encountered when establishing a long term direction for my organization. Kotter does an excellent job in breaking down the basic elements to developing a success vision. Most importantly, his book leads you into a self evaluation of your personal traits, skills , and leadership style and how they support or encumber your goal achieving process. I believe "Leading Change" is a must read for those of us who think we are high performers and certainly recommend it for pre-interview brush ups.

Transforming Organizations is Tough Without Leading Change!
Transforming organizations is tough! It is more difficult than many people realize. Generally, leaders attempt change efforts that are too mild and then give them too little time to succeed. As a result, many transformations fail.

Even though this book was published four years ago, it is still on the cutting edge of modern, linear change in organizations. In my own consulting work I see this book--more than any other--used as a reference point when dicussing change strategies.

Kotter's ideas of establishing a sense of urgency and creating a guiding coalition brought great insight to the part of the change process known as readiness. Another great contribution is the idea that culture--being the most difficult thing to change--is generally the last change tackled, and the capping change that must take place for true lasting change to occur.

John Kotter begins this book by sharing why transformation efforts fail. He then takes the reader on a journey through an eight stage process of creating major change. He concludes this three-part book with a look at the implications for the twenty-first cnetury related to organizations and leadership.

Any facilitator or recipient of change efforts who has not read this book, has missed one of the mandatory books about the change process in North American culture.

Buy it today!

Leading Change by John P. Kotter
The book is terrific if you really intend to move your organization forward through change. The insights proferred by the author are exceptionally pertinent to today's global changes. Provided in the book are step-by-step processes to achieve success as well as pitfalls to avoid. The eight primary mistakes of leading changes are clearly identified and relevant discussions are presented in a clear and concise manner. I would recommend this book to anyone who wishes to accompish change with the least amount of pain to their employees and with the most guarantee of success. Outstanding.

Organizational Diagnosis - Powerful insights
Working in an organization where change stalled, to a point where innovation is absolutely discouraged, there were some sleepless nights when I couldn't stop thinking "Why? What went wrong?" After reading the first chapter of Leading Change, the answers come to surface with surgical precision. In fact, I can now pinpoint almost all reasons why things went wrong, and how one can turn from a leading prince into a caged victim. If I had had this insight earlier in my job, perhaps early warning could have been given. In fact, Mr. Kotter's books reads (for my organization) almost like a case study on "make the 8 basic mistakes, relax and watch chaos emerge". In my particular case, I can even give the names and position for each key player that failed. At the level of this book, I can only place Sun Tzu 's classic, "The Art of War", and I would reccommend this book to every person having management resposibilities, since it gives the necessary insight to diagnose malfunction symptoms clearly and precisely. All that is needed is good sense and fair judgement. ... Read more

Editorial Review

Reviews

The Visable Hand
A solidly written biography of one known by most of us only as the Scottish author of an unread great book. Professor Phillipson's fine effort should lead many to go back and read "The Wealth of Nations."

Adam Smith's thoughts still have direct relevance to today's bucketful of economic problems--and resulting strident political debates--over government's proper role in terms of expenditures, debt, taxation, and business regulations.

While this book concentrates on the scholarship of Adam Smith, the author also intelligently traces the era within which Smith lived and his private life that included such striking people as David Hume, James Boswell, and Voltaire.

In this current age of instant and empty celebrities, Smith still stands, after about 250 years, as a man worth knowing.

"The Elusive Invisible Hand Comes Alive Again".
This is a great, thoughtful & engaging biography on the elusive Scottish academic & philosopher, Adam Smith, titled "Adam Smith : An Enlightened Life" by professor Nicholas Phillipson. Adam Smith is well known for his description of the market's/capitalism's "invisible hand" that guides the economy, keeping 'everything' under control. But there is more to this elusive philosophical man than meets the eye : he was a private man, a hypochondriac who lived with his widowed mother most of his life. His popular lectures at the University of Glasgow turned Adam Smith into an 'institutional figure of note'. He wrote two great influencial books, "The Wealth Of The Nations" which took him 10 years to write on colonial America & the philosophical, "The Theory Of Moral Sentiments". By drawing from his published works & lecture notes, his thinking on social theory & ethics influenced his theory of economics & human behaviour.

Adam Smith instructed his executors to destroy all his lecture notes, but seven upublished philosophical essays & 193 letters survived to give us a glimpse of this elusive Scottish academic & philosopher, making the market's "invisible hand" come alive again, even if it's only at an intellectual level. This is a highly recommended reading on the 18th century's influential philosopher & academic that is Adam Smith.

An Important Contribution to Our Understanding of Smith
I have read five book-length biographies of Adam Smith and concluded that the one by Ian Simpson Ross was definitive. I purchased the latest by Nicholas Phillipson because of his reputation rather than an expectation to learn much that is new. Reading it has proven that labeling a work as definitive does not mean it is the final word on the subject. Quite the contrary, Phillipson's work is aptly titled: Adam Smith: An Enlightened Life, as it traces the development of Smith's thought in the milieu of the Scottish Enlightenment and British geopolitics during the second half of the eighteenth century. What was especially enjoyable was to learn more about the great debt Smith owed Hume as an intellect in shaping his works and as a friend. Phillipson expresses puzzlement about why Smith may not have held up his end of the friendship. After reading E. C. Mossner's The Life of David Hume and the Smith biographies, it seems clear Smith was too prudent to do so. If given a change, this reviewer would rather have kept the company of Hume than Smith.
Yale has done justice to this wonderful work. The production is a delight to see and to hold. It provides the best answer to e-books because we buyers will surely enjoying pulling it from our shelves, looking at the illustrations, and reading it again.

The Owl of Minerva
I thought this book would have a million reviews, but since not let me give it another fiver. I was just astonished at how Smith's grand worldview is in fact a projection of his own provincial, very historically constrained culture. The author, while emphasising this fact, is oddly (seemingly, reading between the lines)still inclined to view it as somehow objectively correct as a model of human behavior. Phillipson's mastery of the Scottish Enlightenment is absolutely complete, what a great tour. This is a must read for anyone interested in the humanities.

The owl of wisdom flies at night. After it's over, then we understand. About capitalism, that's the feeling I get from this book. ... Read more

Editorial Review

•Why are lovers quicker to forgive their partners for infidelity than for leaving dirty dishes in the sink?•Why will sighted people pay more to avoid going blind than blind people will pay to regain their sight? •Why do dining companions insist on ordering different meals instead of getting what they really want? •Why do pigeons seem to have such excellent aim; why can’t we remember one song while listening to another; and why does the line at the grocery store always slow down the moment we join it?In this brilliant, witty, and accessible book, renowned Harvard psychologist Daniel Gilbert describes the foibles of imagination and illusions of foresight that cause each of us to misconceive our tomorrows and misestimate our satisfactions. Vividly bringing to life the latest scientific research in psychology, cognitive neuroscience, philosophy, and behavioral economics, Gilbert reveals what scientists have discovered about the uniquely human ability to imagine the future, and about our capacity to predict how much we will like it when we get there. With penetrating insight and sparkling prose, Gilbert explains why we seem to know so little about the hearts and minds of the people we are about to become. ... Read more

Reviews

A pretty happy read- but not as happy as you think it is going to be
Here are some of the most important points of this book:
1) We often exaggerate in imagining the long- term emotional effects certain events will have on us.
2) Most of us tend to have a basic level of happiness which we revert to eventually.
3) People generally err in imagining what will make them happy.
4) People tend to find ways of rationalizing unhappy outcomes so as to make them more acceptable to themselves.
5) People tend to repeat the same errors in imagining what will make them happy.
6) Events and outcomes which we dread may when they come about turn into new opportunities for happiness.
7) Many of the most productive and creative people are those who are continually unhappy with the world- and thus strive to change it.
8) Happiness is rarely as good as we imagine it to be, and rarely lasts as long as we think it will. The same mistaken expectations apply to unhappiness.

Gilbert makes these points and others with much anecdotal evidence and humor.

A pretty happy read, but not as happy as you think it is going to be.

Before you try to get happy, read this to get smart
I love a quote by Dr. Richard Feynman, the late Nobel Prize winning physicist: "The first principle is that you must not fool yourself - and you are the easiest person to fool". If you want to be happy, happy with your choices and the outcomes of your efforts you should buy and read this book to at least understand why you are pretty much hard-wired to break Dr. Feynman's first principle while you are trying to do so.

Until recently, when someone asked me "what do you want from life?" I would survey the myriad wishes and desires floating around in my mind and pull out some random musing to do with creating a family or making more money than I knew what to do with. I have certainly worked towards these things and had varying levels of success with love and career and material wealth. But I have always been baffled by why virtually nothing could make me happy in a lasting and predictable way. I am not baffled anymore, even though I am still unhappy in a lot of ways. "Stumbling on Happiness" has educated me to the ways that people exhibit self-delusion when looking forward to predict how happy some future experience will make them happy.

Gilbert is wickedly funny at times as he describes the mechanisms that lead us to distort our thinking; our projections about what will bring about our future selves happiness. This is the kind of information (why we're so deluded) I expected to get from the book. But he goes further and explains how we often don't even know how we feel in a particular moment and how we can have an *experience* of something, without it ever bubbling up into our conscious *awareness*. The onslaught of the information demonstrating the failures of human imagination in achieving contentment is a lot to take in... I felt myself a little depressed at my chances at choosing any future path that was any better than what I'd done up to this point.

But I came to a realization about what I'd learned here: if you are like me and are actively looking to increase your level of happiness, while this book is not directly practical in accomplishing that, it is an essential base upon which to evaluate other materials. Having this book as a counterpoint to other, more practical books (say in the field of Positive Psychology) will increase your chances of not fooling yourself (at least not as badly or for as long). And to be fair, he does offer one suggestion.

I heard about this book listening to an interview with him on the CBC Radio program 'Tapestry'. I highly recommend taking the 24 minutes to listen to that interview (Google: 'tapestry daniel gilbert' to listen online) if you want a preview of the fascinating content of the book.

This Too Will Pass
Mr. Gilbert has written a lively academic approach on the subjective subject of happiness. The reader looking for advice on how to manage their own lives will not find it here. Rather the author looks at the way people manage their own expectations of impending events and how they cope with anxiety. Many persons re-evaluate both stressful events in a more positive light (childbirth) and achieved goals in a less satisfactory fashion (buying that new car does not buy happiness). Ironically, clinically depressed persons see how how difficult life can be and have an inability to re-evaluate stressful situations. They lack this coping mechanism that other persons have : that both happiness and unhappiness will have their season and move on. For the reader desiring further reading on this topic, Dan McMahon's "Happiness: a History" takes a longer and more historical approach to how happiness has changed over the ages.

When I just get the (fill in the blank), then I'll be happy ...
I loved Dan Gilbert's Stumbling on Happiness. With a great sense of humor, Gilbert presents interesting studies and tests to explain why humans have difficulty determining what will make them happy. Gilbert's writing style kept me engaged throughout the entire book. His work brought clarity to my prior views on happiness, and provided me with keen insight into the function of the human mind. I especially enjoyed Gilbert confronting the reader with seemingly impossible scenarios, which challenge preconceived notions on happiness. For example, how can lottery winners and paraplegics have the same level of happiness one year after winning the lottery, or one year after the loss of one's legs?

While reading Stumbling on Happiness, I was reminded of two of my favorite books by Ariel and Shya Kane: Being Here: Modern Day Tales of Enlightenment and Working on Yourself Doesn't Work: A Book About Instantaneous Transformation. In Working on Yourself Doesn't Work, the Kanes assert that satisfaction, or well-being, is not dependent on the circumstances of one's life. Gilbert, in Stumbling on Happiness, lends support for the Kanes's view, by demonstrating that people are often very inaccurate when predicting their levels of happiness if certain circumstances were to occur. I recommend Stumbling on Happiness, Being Here, and Working on Yourself Doesn't Work, to anyone who is interested in discovering the human condition and how it relates to happiness, satisfaction and well-being.

Happiness is in the Small Things

This book confirms aspects about human personality that I have been interested in for some time. One of these things concerns our ability to delude ourselves ABOUT ourselves. For example, studies show that 90% of people think they are better than the average driver. Since 50% of drivers have to be in the bottom half, 4/5ths of that 50% must be mistaken about their skill level. Surveys taken amongst college students bear this out. Except for those who are depressed, they consistently vastly overestimated their good qualities and badly underestimated their poor ones - as judged by their peers. Perhaps the depressed ones are in the more realistic group.

One of my favorite quotes about the ability of people to delude themselves is from "The Moral Animal," by Robert Wright: "...humans are a species splendid in their array of moral equipment, tragic in their propensity to misuse it, and pathetic in their constitutional ignorance of the misuse."

A second interesting aspect about human personality concerns the nurture/nature contributions to personality. There is much evidence that genetics governs the biochemistry that controls a person's general outlook - perhaps realistically thought of as one's "happiness thermostat." Nurture, on the other hand, is judged much more influential about learned behaviors such as personal habits. This author shows and studies confirm that after good or bad life-changing events, people tend to eventually return to their inherent steady state level of happiness.

Aside from confirming some of my preconceptions, I did come away from this book with one new (renewed) valuable thought: That our general level of happiness on a day to day basis is more likely to suffer from nitpicky, seemingly insignificant irritants rather than how generally well off we are otherwise. Old saying such as "Don't sweat the small stuff," seems to hold up well here, as does, "Have the serenity to accept the things I can't change, the courage to change those I can, and the wisdom to know the difference."

It makes sense to try to realistically identify and change recurrent irritants - also to re-evaluate the things that one REALLY likes, and make the appropriate adjustments in lifestyle. Anyway, this is a highly readable, thought-provoking book; entertainingly disguised as psychology - first rate.

... Read more