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The soft edge: where great companies find lasting success
What Does it Take to Get Ahead Now--And Stay There?
High performance has always required shrewd strategy and superb execution. These factors remain critical, especially given today's unprecedented business climate. But Rich Karlgaard--Forbes publisher, entrepreneur, investor, and board director--takes a surprising turn and argues that there is now a third element that's required for competitive advantage. It fosters innovation, it accelerates strategy and execution, and it cannot be copied or bought. It is found in a perhaps surprising place--your company's values.
Karlgaard examined a variety of enduring companies and found that they have one thing in common; all have leveraged their deepest values alongside strategy and execution, allowing them to fuel growth as well as weather hard times. Karlgaard shares these stories and identifies the five key variables that make up every organization's "soft edge"
Trust: Northwestern Mutual has built a $25 million dollar revenue juggernaut on trust, the foundation of lasting success. Learn how to create an environment that engenders trust and propels high performance.
Smarts: In most technical fields your formal education quickly becomes out of date. How do you keep up? Learn how the Mayo Clinic, Stanford University women's basketball team, and others stay on top by relentlessly pursuing an advantage through smarts.
Teamwork: Since collaboration and innovation are a must in the global economy, effective teamwork is vital. Learn how global giant FedEx stays focused and how nimble Nest Labs relies on lean teams with cognitive diversity.
Taste: Clever product design and integration are proxies for intelligence because they make customers feel smart. But taste goes further into deep emotional engagement. Specialized Bicycles calls it "the elusive spot between data truth and human truth." How can you consistently make products or services that trigger these emotional touch points?
Story: Companies that achieve lasting success have an enduring and emotionally appealing story. What's your company's story? How do you tell it your way? Gain the ability to create a powerful narrative in a world where outsiders often exercise the louder voice.
High performance has always required shrewd strategy and superb execution. These factors remain critical, especially given today's unprecedented business climate. But Rich Karlgaard--Forbes publisher, entrepreneur, investor, and board director--takes a surprising turn and argues that there is now a third element that's required for competitive advantage. It fosters innovation, it accelerates strategy and execution, and it cannot be copied or bought. It is found in a perhaps surprising place--your company's values.
Karlgaard examined a variety of enduring companies and found that they have one thing in common; all have leveraged their deepest values alongside strategy and execution, allowing them to fuel growth as well as weather hard times. Karlgaard shares these stories and identifies the five key variables that make up every organization's "soft edge"
Trust: Northwestern Mutual has built a $25 million dollar revenue juggernaut on trust, the foundation of lasting success. Learn how to create an environment that engenders trust and propels high performance.
Smarts: In most technical fields your formal education quickly becomes out of date. How do you keep up? Learn how the Mayo Clinic, Stanford University women's basketball team, and others stay on top by relentlessly pursuing an advantage through smarts.
Teamwork: Since collaboration and innovation are a must in the global economy, effective teamwork is vital. Learn how global giant FedEx stays focused and how nimble Nest Labs relies on lean teams with cognitive diversity.
Taste: Clever product design and integration are proxies for intelligence because they make customers feel smart. But taste goes further into deep emotional engagement. Specialized Bicycles calls it "the elusive spot between data truth and human truth." How can you consistently make products or services that trigger these emotional touch points?
Story: Companies that achieve lasting success have an enduring and emotionally appealing story. What's your company's story? How do you tell it your way? Gain the ability to create a powerful narrative in a world where outsiders often exercise the louder voice.
272 pages, Hardcover
First published January 1, 2014
20 people are currently reading
399 people want to read
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Displaying 1 - 15 of 15 reviews
February 11, 2021
In the real world, however, there is more to developing a successful business than strategy and execution. You need to develop a relationship with people; without people, whether it be your employees or your customers, you cannot hope to succeed.
August 4, 2024
This book was hit and miss for me, some chapters were more relatable than others, but appreciated the overarching theme and concepts.
October 9, 2023
"innovate or die". The choice is not optional. The clock is ticking.
The author grabs our attention in the opening paragraph chapter 1 of THE soft edge. Where great companies find lasting success, by the guy with the hard to pronounce name: Rich Karlgaard
I had previously read Late Bloomers by Mr. Karlgaard, which I enjoyed very much so I decided to read the Soft Edge, a business book, and it did not disappoint.
The overall thesis of the yarn is fairly straightforward; businesses have a triangle that predicts their long-term health. The triangle includes a "strategic base", A "soft edge" and a "hard edge". And Rich argues that while all three are important, the soft edge demands more of our attention today.
What is the soft edge?
1) TRUST: not a new concept by any means, but the author reminds us that "trust is the lubrication that makes organizations work" or said differently " when trust is low, it places a tax on every transaction, communication and decision"Business leaders can never be reminded enough about the importance of trust- it can take years to establish and can be lost in an instant. In the end "Trust Sells"
2)SMARTS: of course one needs "smarts" to lead a business, but Karlgaard points out that what traditionally is considered smarts (IQ and EQ) is not what's most important in business. Smarts in business is: "hard work, perseverance, resilience, grit, courage, tenacity, and a "can do attitude". Sounding like a motivational speaker here the author talks about the importance of "being scrappy" "being tough" and "taking body blows" these idea these ideas are nothing new to business owners, but one has to love these reminders!
The section on smarts also includes other interesting anecdotes, such as how to"Strengthen your neuro lasticity" by learning new skills, such as juggling, playing golf, or plucking a banjo. And by exercising – especially by exercising outdoors, in which scientists call "unenriched environment" like riding a bicycle on a twisty road in the woods. Another way to be smart says Karlgaard is to "think laterally" - that is to borrow ideas from the periphery
3) TEAMS in this chapter, the author reminds us of the power of teams ". Builders of the Egyptian pyramids understood teams" because we are "hardwired to work in teams". Giving us scientific context: the book explains that the "neo cortex" – the higher functioning, outer brain layer – has evolved as a social brain. That puts us in a position to gain advantage by working in teams.
The best part of chapter 3, and perhaps the whole book in my view is "the power of the two Pizza rule" utilized by legends, such as Fred Smith of FedEx and Jeff Bezos of Amazon. Mainly, the two pizza rule implies that a development team should be small enough for two pizzas to feed (8 to 12 people depending on how hungry they are I guess)
Whether your operation is tiny or huge, the most effective teams, are a dozen or less, ideally between 8 to 12. They are 1a)more likely to one care about each other. b) share information and c) come to one another's aid. This unity tends to fall apart as teams scale up
4) TASTE- taste is more than design. It's a sensibility, that appeals to the deepest part of ourselves and the three aspects of taste are function,form and meaning. Taste – in the end – signals the "deep intelligence" of your product or service.
5) STORY: the final pillar of the soft edge is "story" - appropriately begins and ends with a story! Here the author introduces us to the idea of "narrative psychology". While traditional neuroscientists view our brain as an information processor, narrative, psychologists view our brain, as a "storyteller". As humans, we think in stories, hence, it is critical to both understand, and convey the "narrative of your company.
The key to peoples hearts (and perhaps their wallets) is a story.
While most of the information in this book wasn't new or groundbreaking it was extremely well structured anhd written. The book was informative and entertaining - filled with with great reminders along with with a few new insights for any entrepreneur, business owner or leader. I would highly recommend the Soft eSge by Rick Karlgaard
The author grabs our attention in the opening paragraph chapter 1 of THE soft edge. Where great companies find lasting success, by the guy with the hard to pronounce name: Rich Karlgaard
I had previously read Late Bloomers by Mr. Karlgaard, which I enjoyed very much so I decided to read the Soft Edge, a business book, and it did not disappoint.
The overall thesis of the yarn is fairly straightforward; businesses have a triangle that predicts their long-term health. The triangle includes a "strategic base", A "soft edge" and a "hard edge". And Rich argues that while all three are important, the soft edge demands more of our attention today.
What is the soft edge?
1) TRUST: not a new concept by any means, but the author reminds us that "trust is the lubrication that makes organizations work" or said differently " when trust is low, it places a tax on every transaction, communication and decision"Business leaders can never be reminded enough about the importance of trust- it can take years to establish and can be lost in an instant. In the end "Trust Sells"
2)SMARTS: of course one needs "smarts" to lead a business, but Karlgaard points out that what traditionally is considered smarts (IQ and EQ) is not what's most important in business. Smarts in business is: "hard work, perseverance, resilience, grit, courage, tenacity, and a "can do attitude". Sounding like a motivational speaker here the author talks about the importance of "being scrappy" "being tough" and "taking body blows" these idea these ideas are nothing new to business owners, but one has to love these reminders!
The section on smarts also includes other interesting anecdotes, such as how to"Strengthen your neuro lasticity" by learning new skills, such as juggling, playing golf, or plucking a banjo. And by exercising – especially by exercising outdoors, in which scientists call "unenriched environment" like riding a bicycle on a twisty road in the woods. Another way to be smart says Karlgaard is to "think laterally" - that is to borrow ideas from the periphery
3) TEAMS in this chapter, the author reminds us of the power of teams ". Builders of the Egyptian pyramids understood teams" because we are "hardwired to work in teams". Giving us scientific context: the book explains that the "neo cortex" – the higher functioning, outer brain layer – has evolved as a social brain. That puts us in a position to gain advantage by working in teams.
The best part of chapter 3, and perhaps the whole book in my view is "the power of the two Pizza rule" utilized by legends, such as Fred Smith of FedEx and Jeff Bezos of Amazon. Mainly, the two pizza rule implies that a development team should be small enough for two pizzas to feed (8 to 12 people depending on how hungry they are I guess)
Whether your operation is tiny or huge, the most effective teams, are a dozen or less, ideally between 8 to 12. They are 1a)more likely to one care about each other. b) share information and c) come to one another's aid. This unity tends to fall apart as teams scale up
4) TASTE- taste is more than design. It's a sensibility, that appeals to the deepest part of ourselves and the three aspects of taste are function,form and meaning. Taste – in the end – signals the "deep intelligence" of your product or service.
5) STORY: the final pillar of the soft edge is "story" - appropriately begins and ends with a story! Here the author introduces us to the idea of "narrative psychology". While traditional neuroscientists view our brain as an information processor, narrative, psychologists view our brain, as a "storyteller". As humans, we think in stories, hence, it is critical to both understand, and convey the "narrative of your company.
The key to peoples hearts (and perhaps their wallets) is a story.
While most of the information in this book wasn't new or groundbreaking it was extremely well structured anhd written. The book was informative and entertaining - filled with with great reminders along with with a few new insights for any entrepreneur, business owner or leader. I would highly recommend the Soft eSge by Rick Karlgaard
August 21, 2018
The first word that strikes me when I think of The Soft Edge is Infotainment. Rich Karlgaard, entrepreneur, columnist and publisher of Forbes magazine is a genuinely skilled writer and this book is a pleasure to read. The set up is a string of coherent short stories on different topics that add up to an interesting book on applied management. I read the book like a novel in a single day.
The soft edge is the third leg in a triangle, where the two first are the strategic base (the fundamentals, e.g. Porters five forces) and the hard edge (precise execution, e.g supply chain management). The soft edge is about values—the values that are most important for enduring success. According to Karlgaard, these legs balance up together to a unity for long-term lasting success.
“The soft edge is the most misunderstood side of business. It also tends to be neglected and underfunded in too many companies. Several reasons explain this: One, soft edge is harder to measure. Two, because it is tough to measure, it’s more difficult to attach a ROI (return on investment) figure to any investments made in it. Three, most CEOs and board chairmen are not comfortable talking in the language of the soft edge.” Many of us agree to the triangle concept and the relative neglect of values—the main thing that sets this book apart are the five pillars Karlgaard considers most important within the soft edge leg: Trust, Smarts, Teams, Taste and Story.
I have read quite a lot of books on values, but some of the topics actually surprised me. Or rather, the importance the author put on some of them surprised me. Karlgaard devotes one chapter to each of these pillars. The messages center around a collection of observations and anecdotes based on a few companies (always market leaders within their industry) and what we can learn from them, almost like an entry-level Good to Great (Jim Collins). But these books differ substantially on the empirical side—Karlgaard takes the subjective, qualitative road. It is impossible not to notice his passion for the subject though, which makes the presentation truly entertaining. He grounds his points of view on plenty of meetings with currently successful companies and decision makers. Some of the companies were new to me, e.g. Specialized (performance increasing bicycles), and quite intriguing to learn from.
Many of Karlgaard’s observations are insightful and clever. I could give you many illustrations of this but I don’t want to destroy your reading experience so I’ll just mention two. I had never before thought of the connection between genuine trust (internal and external) and innovation or productivity. Nor had I understood before that a usually boring “Vision” might be very elevating when it’s presented as a true story.
I learned in the beginning of the book that we, the author and I, share some favorite books on strategy and management, e.g. Christensen’s The Innovators Dilemma. The soft edge is a worthwhile read—I believe I will remember some of the suggestive anecdotes for a long time and also the importance of storytelling—but this book is not at the same level as some of Karlgaard’s favorites. And maybe that is asking for too much. As mentioned, Karlgaard is a very competent storyteller himself and sometimes I feel that he somewhat dresses the bride with new labels on common subjects within strategy/management. With some distance, the book is not as innovative as it first seems in my view.
However, I do sincerely respect Rich Karlgaard. He also gets convincing acclaims for the book from icons like Gary Hamel. Few have written a book on values with a foreword by Tom Peters and an afterword by Clay Christensen. This might be the perfect book when crossing the Atlantic.
The soft edge is the third leg in a triangle, where the two first are the strategic base (the fundamentals, e.g. Porters five forces) and the hard edge (precise execution, e.g supply chain management). The soft edge is about values—the values that are most important for enduring success. According to Karlgaard, these legs balance up together to a unity for long-term lasting success.
“The soft edge is the most misunderstood side of business. It also tends to be neglected and underfunded in too many companies. Several reasons explain this: One, soft edge is harder to measure. Two, because it is tough to measure, it’s more difficult to attach a ROI (return on investment) figure to any investments made in it. Three, most CEOs and board chairmen are not comfortable talking in the language of the soft edge.” Many of us agree to the triangle concept and the relative neglect of values—the main thing that sets this book apart are the five pillars Karlgaard considers most important within the soft edge leg: Trust, Smarts, Teams, Taste and Story.
I have read quite a lot of books on values, but some of the topics actually surprised me. Or rather, the importance the author put on some of them surprised me. Karlgaard devotes one chapter to each of these pillars. The messages center around a collection of observations and anecdotes based on a few companies (always market leaders within their industry) and what we can learn from them, almost like an entry-level Good to Great (Jim Collins). But these books differ substantially on the empirical side—Karlgaard takes the subjective, qualitative road. It is impossible not to notice his passion for the subject though, which makes the presentation truly entertaining. He grounds his points of view on plenty of meetings with currently successful companies and decision makers. Some of the companies were new to me, e.g. Specialized (performance increasing bicycles), and quite intriguing to learn from.
Many of Karlgaard’s observations are insightful and clever. I could give you many illustrations of this but I don’t want to destroy your reading experience so I’ll just mention two. I had never before thought of the connection between genuine trust (internal and external) and innovation or productivity. Nor had I understood before that a usually boring “Vision” might be very elevating when it’s presented as a true story.
I learned in the beginning of the book that we, the author and I, share some favorite books on strategy and management, e.g. Christensen’s The Innovators Dilemma. The soft edge is a worthwhile read—I believe I will remember some of the suggestive anecdotes for a long time and also the importance of storytelling—but this book is not at the same level as some of Karlgaard’s favorites. And maybe that is asking for too much. As mentioned, Karlgaard is a very competent storyteller himself and sometimes I feel that he somewhat dresses the bride with new labels on common subjects within strategy/management. With some distance, the book is not as innovative as it first seems in my view.
However, I do sincerely respect Rich Karlgaard. He also gets convincing acclaims for the book from icons like Gary Hamel. Few have written a book on values with a foreword by Tom Peters and an afterword by Clay Christensen. This might be the perfect book when crossing the Atlantic.
April 8, 2024
Якщо ви "варитеся" в темі бізнесування, маркетингу, реклами, ПР і всього навколо, що дотичне до цих тем, то нового ви не дізнаєтесь нічого, проте можете ще раз нагадати про головне!
Трішки контексту з анотації: "Річ Карлґаард, видавець американського ділового журналу Forbes, видатний підприємець та аналітик, переконаний: ключ до успіху варто шукати в нематеріальній складовій бізнесу – так званому «людському факторі». Автор розповідає про те, як сформувати сильну команду, створити ідеальні умови для її розвитку та, зрештою, привести свою компанію до високих успіхів і перемог на тривалий період".
Річ Карлґаард зосереджує увагу на нематеріальних факторах: довіра, розум, команда, смак, історія. Автор впевнений (і зрештою розповідає про конкретні кейси), що завдяки цим 5 факторам, компанії можуть вижити, не зважаючи на будь-які виклики, негаразди, конфлікти чи кризи.
Мені вона була корисна лишень в тому, що я ще раз нагадала собі про деякі головні штуки в бізнесі, декілька подам в каруселі, загляньте 😉. Проте, змушена попередити, книжка трошки нудно написана.
Трішки контексту з анотації: "Річ Карлґаард, видавець американського ділового журналу Forbes, видатний підприємець та аналітик, переконаний: ключ до успіху варто шукати в нематеріальній складовій бізнесу – так званому «людському факторі». Автор розповідає про те, як сформувати сильну команду, створити ідеальні умови для її розвитку та, зрештою, привести свою компанію до високих успіхів і перемог на тривалий період".
Річ Карлґаард зосереджує увагу на нематеріальних факторах: довіра, розум, команда, смак, історія. Автор впевнений (і зрештою розповідає про конкретні кейси), що завдяки цим 5 факторам, компанії можуть вижити, не зважаючи на будь-які виклики, негаразди, конфлікти чи кризи.
Мені вона була корисна лишень в тому, що я ще раз нагадала собі про деякі головні штуки в бізнесі, декілька подам в каруселі, загляньте 😉. Проте, змушена попередити, книжка трошки нудно написана.
April 6, 2025
This book was originally recommended to me in 2014, shortly after its publication, and I would have found more value reading it then than in 2025. While it contains some everlasting wisdom, that portion is not presented effectively enough to make this book everlasting. The case studies feel outdated, and much of the book now feels commonsense after companies navigated the pandemic by largely embracing the soft edge and treating employees with empathy. I'll find some takeaways from this one, but it's not saying on my bookshelf.
May 3, 2018
Superb. It all starts with trust.
February 2, 2019
Foreword by Tom Peters(in search of excellence) , that's it..
December 24, 2020
Pretty Basic book, would not recommend to read. Could gloss over first 20 pages and get the just of the entire book
August 2, 2015
During my internship, we were asked to read this book in preparation for a book club discussion with a senior leader. I did a really great job academically reading the book. (aka power skimming!) some of the stories were captivating and others I skipped. I think the ideas around the book are useful and helpful. Some areas were a little intangible (Taste/Style) but still had some interesting thoughts.
I liked "Story is narrative with conflict." being a storyteller, especially the ability to tell a story with data, is a crucial skill and the ability to adequately describe "conflict" in organizations without offending people is a skill and is powerful. It leads to action. I also liked "Team leaders should cultivate the gift of high expectations. Demand great performance from team members. There is no higher compliment."
Nice work, Rich!
I liked "Story is narrative with conflict." being a storyteller, especially the ability to tell a story with data, is a crucial skill and the ability to adequately describe "conflict" in organizations without offending people is a skill and is powerful. It leads to action. I also liked "Team leaders should cultivate the gift of high expectations. Demand great performance from team members. There is no higher compliment."
Nice work, Rich!
July 13, 2015
Forbes publisher Rich Karlgaard sheds light on the ever important but often overlooked soft edge of a company. He professes that strategy and execution are critical, but the human underpinnings of a company--its foundational values--are key to sustained performance. From trust to teamwork, Karlgaard provide case studies of companies who have evolved through difficult times because of their focus on this soft edge. Even if my soon-to-be employer, Northwestern Mutual, wasn't featured in the book, I still would have enjoyed it thoroughly. For those of us who understand that numbers can only take an organization so far, this book is an interesting look into how the soft edge has yielded hard results.
August 18, 2014
Great easy read. Author brings forward many examples about how to be truly competitive in the age of technology, you have to keep people in the forefront. The soft skills are what matter the most and I couldn't agree more.
October 1, 2015
I was suggested to read this book by my mentor to understand how manage people successfully. I found this book to be a reference for those who want to create an effective working environment. To the point. Easy to read and relates it to real cases
Read
February 6, 2015658.4 K1852 2014
August 28, 2014
One of my favorite authors from Forbes - solid book
Displaying 1 - 15 of 15 reviews