Billion-Dollar Lessons
What You Can Learn from the Most Inexcusable Business Failures of the Last 25 Years
By: Paul B. Carroll, Chunka Mui
Published: Sept 11, 2008
ISBN: 9781591842194
Format: Hardcover, 320pp
Publisher: Portfolio
Business books routinely look at successes and suggest how to emulate them. But no one looks at failures and lays out methods for how not to emulate them, write Paul B. Carroll and Chunka Mui in their ground breaking book Billion-Dollar Lessons: What You Can Learn from the Most Inexcusable Business Failures of the Last 25 Years. The authors turn the theory of good to great upside down. By focusing on how to avoid going from good to disaster, the book is the definitive textbook, for avoiding misguided strategies that lead to business failure.
Paul B. Carroll and Chunka Mui (photo left) recognize that business failure is caused as much by human behavior as by overall economic conditions. In fact, the authors highlight how flawed human nature, including hubris, failing to listen to advice, or herd instinct, lead to serious strategic errors. The book demonstrates, through detailed case studies, how otherwise strong companies embarked on disastrous courses of action. The mistakes are many, and the authors have examples of the most common strategic failures. At the same time, the authors offer a series of alternative approaches to developing business strategy, designed to prevent the fatal decision in the first place.
Paul B. Carroll (photo left) and Chunka Mui provide a nine point list of potential strategic mistakes, and document them in their company studies section. Each of the case studies is an object lesson in what mistakes led to the corporate failures. The flawed decision making process, that resulted in each failed action, is well analyzed as a teaching tool for executives of all levels. Not only are failures described, but the authors offer many powerful tools for improving decision making in other organizations. The techniques are devised to prevent human nature from leading to the same failed actions in the future.
For me, the power of the book is two fold. The authors provide well written, and incisive analysis, of seven categories of failed strategic actions. The mistakes made by the companies are powerful examples of how bad decisions can take on a life of their own, and effectively derail a corporation. The second power of the book is its practical solutions to the human nature and corporate culture problems that led to the failures in the first place. Through various methods shared by the authors, flawed systemic thinking can be replaced by stronger decision making at all levels. This book is destined to become a classic in the field of corporate strategy and decision making.
I highly recommend Billion-Dollar Lessons: What You Can Learn from the Most Inexcusable Business Failures of the Last 25 Years by Paul B. Carroll and Chunka Mui to any business executives who are serious about avoiding the mistakes that have led other companies to ruin. Along with the case studies in failure, the astute business person will learn powerful techniques for making the right strategic choices in the future.
Read Billion-Dollar Lessons: What You Can Learn from the Most Inexcusable Business Failures of the Last 25 Years by Paul B. Carroll and Chunka Mui, and learn from the disastrous experiences of others, about how bad strategies and flawed decision making can lead a company to downfall. Avoiding mistakes will help any company take advantage of the right opportunities when they arise.
