By 1986 its domestic market share fell below 15%, it had lost money in steel for five years running, and its stock was at the lowest point in over three decades. Based on a decade of research, historical case studies, and intensive work with established enterprises and start-ups, this book lays out the fundamental logic of opportunity and provides a series of practical steps to translate insight into action. In the remainder of this review, I would like to offer a critical perspective on these three tests. Professor Sull talks about how to survive in constantly changing market conditions while maintaining an agile firm. Why were these specific sectors or narratives selected, and in which aspects are they comparable to firms managing under conditions of unpredictability? The best chapters in the book by far are Chapter 8 — the Agility Loop, Chapter 10 — Avoiding a Corporate Mid-life Crisis and Chapter 9 Building an Agile Organization. After I die, I hope God will explain turbulence to me.
They quickly seized major opportunities that positioned them well for the future. This content may not be used for any other purposes in any other formats or media. New technologies disrupt long-standing businesses and entire industries. When the power system later collapsed, Mittal bought that as well. The essence of leadership, in the deep logic that underpins this book, relies on a leader's flexible tenacity to plot a course that can withstand and even be propelled by the complexity and dynamism that the modern business terrain contains. However, rather than just repeating these management approaches, Sull puts them into a broader executive context and pairs agility with the idea that enterprises also have the ability to absorb market turbulence- which is sometimes necessary to achieve long term plans. Donald Sull challenged these preconceptions.
Through his celebrated career as a professor of business and a medicine man to companies big and small, Donald Sull has studied how best to reconcile this paradox. By 2008, Mittal was the world's largest steel company. But throughout history, volatility has not only dethroned incumbent leaders, it has also created untold possibilities to create economic value. This is here that I find Donald Sull's lack of publications in peer-reviewed scholarly journals a matter of concern. Uniroyal Goodrich Tire was another.
What was more compelling was one of his sub-arguments on how different management styles are appropriate to different phases of the life cycle of products and the implications for companies to rotate their managers through the business to match management styles to life cycle stages. Management scholars and practitioners had better pay attention to this new challenge. We lapse into inertia when we should adapt with agility, and we cling to rigid dogmas when we should improvise. A break that starts out small may swell into a golden opportunity as circumstances shift. We often respond to turbulence by accelerating activities that worked in the past. Donald Sull claims that he submitted the findings of his previous research to three screening tests.
We look to leaders in business and government to have the genius to know the future and lead the rest of us to where that vision becomes a reality. Opportunities to cut costs are as important to value creation as increasing sales. The book explores realms ranging from improvisational comedy to the U. How do we plan when plans become irrelevant? Plus, some of the process improvement methods and ideas were enlightening. Not that what Donald Sull writes is wrong.
Based on a decade of research, historical case studies, and intensive work with established enterprises and start-ups, this book lays out the fundamental logic of opportunity and provides a series of practical steps to translate insight into action. In The Upside of Turbulence, Donald Sull goes one step further and brings home the lessons earned on the new frontiers of global capitalism. But entrepreneurs and businessmen also know that without some risk, there likely is not much reward. Emerging realities the financial crisis of 2008, the rise and fall of oil prices, the creative destruction of the Internet, for instance often distort and destroy established maps. The result is a series of provocative insights that defy conventional wisdom.
Then in only 18 months, four of the five disappeared as independent companies, while Detroit's Big 3 continued their own decades-long slide. Here Sull offers the ideas of five forces that shape these commitments: Frames, Processes, Resources, Values and Relationships. Two years later came the Great Recession. This book combines high-level strategy and stories from the trenches to provide an engaging and compelling guide to managing in the face of complexity. With his previous books on Brazil and on China, Donald Sull could easily be cornered in one specific segment of the management book market: as a specialist of emerging countries. Throughout the 1990s, politicians privatized money-losing mills, and the percentage of global steel production controlled by governments fell from 70% to 30%. His basic insight is that the whole world is becoming more like the emerging markets of his previous book studies.
But a paradigm shift needs to address the theoretical core of the paradigm. This is a challenge, so you may want to read chapters 1,2,7,8,9, 10,4,11,5,6,3. However, the theory didn't explain Toyota, Carnival Cruise Lines, or Mittal Steel - they thrived in turbulence. To get an idea of what that means, picture the captain of a ship sailing through a tempest, or an army officer amidst the fog of war of a confused battle, or a fighter pilot engaged in aerial combat against a more powerful but less agile opponent. Size also increases the odds the government, customers, or suppliers will prop up an ailing firm. According to Sully, turbulence undermines strategic plans, management ability to see and respond to change, as well as their ability to see situations from the outside in.