The first thing that stuck me about the book was its title, What I didn’t learn at Business School as opposed to what “they didn’t teach me at Business School”. Given that the book is published by Harvard Business Review Press, an arm of one of the leading business schools in the world, whetted my appetite further.
Even though the title suggested the application of strategy in the real world, would this book be different from the run-of-the-mill fare that laments the difference between the real world and the theoretical world of B-schools? On the other hand, would this be a typical business strategy book that sells you a concept developed by the authors that is a panacea for strategy development in companies?
Not really, the authors Jay Barney and Trish Gorman Clifford present their ideas through a “business novel", a first for me. It is a refreshing approach that sets this book apart from any another business strategy book.
Meet Justin Campbell, a newly minted MBA, who has landed a coveted job in consulting. He’s headed to Chicago to serve HGS, a large client with an intriguing new technology its executives haven’t yet decided how to exploit. Constrained by a short timeline and limited information, Justin and his teammates have to use strategy tools to analyse various possibilities that HGS could exploit.
Thus begins Justin’s journey in applying what he learnt in B-school to a real-world situation. The reader experiences Justin’s trials and tribulations as he tells the story of a roller-coaster ride that is his first consulting assignment, and how he learns to negotiate the “real world” of strategy development and consulting.
Here’s an example of a situation that describes how Justin feels after a phone conversation with his team leader, Ken, and this when he felt that he had cracked the case. “What a difference a phone call can make. In under five minutes I went from thinking that I might actually understand what’s going on at HGS to then bam, getting slammed into the ground — I don’t have what it takes, I’m not willing to argue an independent point of view, I get sucked into the latest arguments I hear. After Ken’s call, it was clear that I was going to need time to process what he’d said.”
The authors take great pains to explain that they are not introducing any new, improved concepts that they might have developed for strategy development. Instead, they use a “real-world” situation to apply some of the practical frameworks that Justin and team would need to use to evaluate the strategy of HGS and develop a possible path for the company to choose. However, the authors do introduce the VRIO framework of strategy evaluation that is a simple yet effective way to ask the “right questions”.
The book also does not dwell on a central concept with various charts and graphs and models for the reader to use in the real world. Justin applies various techniques he learnt at B-school, e.g. NPV, DCF, etc. and understands both the benefits and limitations of applying a singular approach to strategy development. He is encouraged by his team members to focus on framing the questions, the answers to which will help him develop a dispassionate and an independent point of view.
Through the story Justin shares the mistakes he makes, the preparation he needs and the nuances of organisational politics he and his team need to recognise in evaluating the possible applications of the “new wonder technology” which could create exponential value for HGS or prove to be a costly mistake. Justin learns that if you don’t know the right questions to ask, then the answers aren’t going to be right either.
Each chapter ends with a set of questions that the authors pose to the reader that help synthesise the learnings. While you experience the real-world situation, the questions almost take you back to the B-school experience of trying to “crack a case”. In fact, Justin is reminded by his team leader that the HGS issue is quite unlike that experience.
What makes this book an interesting read for newly minted strategists is the authors’ attempt to weave in the organisational nuance (read personal agendas), politics and positioning, and how that impacts the course of action a company might take and how Justin learns to negotiate that landscape. This is the single-biggest USP of the book.
Written in an engaging and easy-to-read story format, the book is a good read for young, experienced and on-the-go executive. Don’t be disappointed, though, if you don’t find the narrative as gripping as a Tom Clancy thriller; after all it is still a business novel.
The authors successfully combine the theory of strategy development with the real-world push-pulls of the corporate world to give readers a view of how business strategy really works. A worthwhile read if you are taking your first steps to developing corporate strategy.
The reviewer is managing director and chief executive, South Asia, Penn Schoen Berland. Contact at:
asingla@ps-b.com
WHAT I DIDN’T LEARN IN BUSINESS SCHOOL
How Strategy Works in the Real World
Jay Barney and Trish Gorman Clifford
Harvard Business Review Press
288 pages; $25.95
