Holding true in the decade of AI
It is very rare that one comes across a book that not just tells a story, but is also a case study of case studies. The authors have done full justice by sharing real incidents of metamorphosis across divergent company sizes.
The book talks about multiple scenarios where companies, running under disparate market and competitive situations respectively, have engendered a major transformation. The evolution lead to both success and failure, which have been garnished by the authors with deeper points of view. An aspect elaborated is of culture playing a crucial role in the change that any company undergoes. An excellent example presented is of Capital Holding, where executives were clear early on, that communicating and reiterating the changes would be the second step. The first step would be to understand the existing logical behavior that people adhered to within their business environment. This contributed to pacifying and empowering employees, who were thrust under unfamiliar circumstances, brought about by the new processes in place.
Another example that shined brightly was of Taco Bell. In today’s age, a plethora of startups tend to fail because of a lack of product/market fit. There could be multiple reasons for the debacle. Yet, one of those reasons is not focussing on the user. Taco Bell’s story in the early 1980’s rings true even today. They had been under significantly losses, when the top management decided to undertake a restructuring, with a vision to focus on what the customers wanted. This enabled them to understand where there had been unnecessary money burn, and helped make a successful turnaround.
While the lessons brought out may make a lot of common sense in today’s world (that has been eaten up by software and faster product life cycles), the book serves as a good reminder to product managers and digital leaders. It provides a no holds barred indication about information technology being a key ingredient for overhauling the functioning of companies. With technologies like machine learning knocking at the doors of a new and rapid digital transformation, multiple companies are still reluctant to let go of a culture that could imbibe and integrate the knowledge worker. While it may serve in the short run, it could turn out to be disastrous in the long run, which the book succinctly brings out.
Reengineering the corporation is a book that can help build a mindset which can navigate the emerging complexities of new dimensions in business.