Why Smart Executives Fail: And What You Can Learn from Their Mistakes

by Sydney Finkelstein

Bob Pittman and AOL Time Warner. Jean Marie Messier and Vivendi. Jill Barad and Mattel. Dennis Kozlowski and Tyco. It's an all too common scenario. A great company breaks from the pack; the analysts are in love; the smiling CEO appears on the cover of Fortune. Two years later, the company is in flames, the pension plan is bleeding, the stock is worthless. What goes wrong in these cases? Usually it seems that top management made some incredibly stupid mistakes. But the people responsible are almost always remarkably intelligent and usually have terrific track records. Just as puzzling as the fact that brilliant managers can make bad mistakes is the way they so often magnify the damage. Once a company has made a serious mis-step, it often seems as though it can't do anything right. How does this happen? Instead of rectifying their mistakes, why do business leaders regularly make them worse? To answer these questions, Sydney Finkelstein has carried out the largest research project ever devoted to corporate mistakes and failures. In WHY SMART EXECUTIVES FAIL, he and his research team uncover-with startling clarity and unassailable documentation-the causes regularly responsible for major business breakdowns. He relates the stories of great business disasters and demonstrates that there are specific, identifiable ways in which many businesses regularly make themselves vulnerable to failure. The result is a truly indispensable, practical, must-read book that explains the mechanics of business failure, how to avoid them, and what to do if they happen.

Genres: Business, Leadership, Nonfiction, Personal Development, Entrepreneurship, Self Help

340 pages, Kindle Edition

First published June 2, 2003

Reviews

[Jay · Rating 2 out of 5]

If insights such as "Ask Questions" and "Make sure you earn more revenue than you spend" are new to you, then check out this book. For the other 99% of us, stay away.

[David Harrison · Rating 4 out of 5]

As outlined in the book with lots of case examples and inside scoops from companies such as Tyco International, Mattel, Rubbermaid, Delorian, Samsung, Motorola, Saatchi & Saatchi, Cabletron Systems, Schwinn and more.

The Seven Habits of Spectacularly Unsuccessful Executives:

Habit # 1: They see themselves and their companies as dominating their environment
Habit #2: They identify so completely with the company that there is no clear boundary between their personal interests and their corporation's interests
Habit #3: They think they have all the answers
Habit #4: They ruthlessly eliminate anyone who isn't completely behind them
Habit #5: They are consummate spokespersons, obsessed with the company image (warning sign: blatant attention-seeking)
Habit #6: They underestimate obstacles
Habit #7: They stubbornly rely on what worked for them in the past

[Rrlgrrl · Rating 5 out of 5]

This book was originally assigned in an MBA class I took last summer, and I picked it up now to finish up the chapters we didn't cover. The case studies are excellent examples, but now dated. However, the sections on the causes of failure and how to learn from mistakes are incredibly illuminating and helpful. My class found the book to be very engaging and insightful. Many of us were able to relate to the cases and causes, bringing our own anecdotes of problems and failures. I highly recommend this book to any executive, project lead, manager, and especially the employees. Learn from the mistakes!

[paul ellmes]

A thoroughly worthwhile read

A book full of examples in the vein of 'The Innovator's Dilemma' , and 'The Fearless Organisation', and flowing reads as those are. I learnt a lot about leadership and management, and it was an enjoyable and informative process. Definitely one I'd recommends to people who hold power, whatever your level.

[Rikki · Rating 3 out of 5]

2.5 stars. read for class.

[Doug Wynkoop · Rating 4 out of 5]

Very informative, but at times a bit dry. It's now somewhat dated too.

[Christopher Luna · Rating 4 out of 5]

Excellent resource that delves into the reasons behind the fall of top executives. A key theme throughout the book is that all of these executives were extremely smart, effective, experienced leaders who simply made some bad decisions for various reasons (based on faulty assumptions). Good read for anyone looking to go into long or short term management, or for those who want to know how and why some of the corporate giants fell.

[Ko Matsuo · Rating 4 out of 5]

Great book explaining the paradox of how success can breed failure. Good examples of how business success can lead to a culture of superiority, which in turn leads to a distorted picture of reality and information breakdown. Really good discussion about how to compensate for corporate delusions.

A reminder that good product managers balance internal company pride with a healthy paranoia of not only the competition, but also of current company strategy.

[Kokopelli's Flute · Rating 2 out of 5]

The value of the book lies in the real-world examples of failures by business leaders and corporations. On the other hand, much of the analysis and recommendations that follow are nothing new. Additionally, these latter sections could have been written in a more concise manner.

[Pankaj Kumar · Rating 3 out of 5]

I started reading this book towards the end of my business school. It discusses some interesting real life cases that one can take a cue from, though in real life such cases can barely be any guideline or standard practice. But overall an interesting read with some good cases to refer to.

[Cris · Rating 4 out of 5]

Powerful real examples of colossal failure not from greed, but definitely engaged egos. Would love a sequel!

[Laura · Rating 3 out of 5]

A good collection of case studies and supporting analysis on the title topic. He's an academic and writes that way, but his analysis is clear and to the point.

[George Kobani · Rating 3 out of 5]

Good book that attempts to answer a very pertinent question. I liked it very much

[Lori Grant · Rating 5 out of 5]

A must-read book on executive ability in managing your career.