Article review - Book Report/Review Example

The objective in this book is to speak to every level of a business organization, and this includes large and even small companies (Welch and Suzy, 7). This book lays down certain fundamental procedures that business organizations need to undertake, in case they want to succeed in a fiercely competitive market. This includes knowledge of the market under consideration, offering effective leadership, managing to deal with change, and having strategies that can effectively manage crises when they occur.

This book begins with an introductory chapter whereby the author identifies his business philosophy. This chapter is referred to as “underneath it all”. In meeting its objective, this book explores the importance of dignity, candor, and differentiation in a business organization (Welch and Suzy, 16). He denotes that candor revolves around developing great ideas that have the capability of transforming the business organization into a successful venture. Without ideas, the organization cannot succeed.

In explaining these ideas, Welch uses personal anecdotes and thus manages to offer insights, solution to various business problems, whose main intention will be to change the manner in which people think about their businesses, and how they embrace the various aspects of change. Central Pillars: One very important lesson that this book tries to identify is the importance of budgeting in a business organization. Welch denotes that when developing a budget, it is important for the manager’s to answer the following crucial question; How can they improve on the performance of the previous year?

What are the budget estimates of their competitors, and how can they win over their competitors? From his discussions on budgeting, Welch identifies two types of budget; namely negotiated settlement budgeting and phony smile budgeting (Welch and Suzy, 36). For example, in a negotiated settlement budgeting, a manager might want to give the sales department an increase of 10% budget allocation. However, the sales department might see this as to minimal, because of an increase in their operation costs, they may demand 19% increase.

The sales department and the manager might therefore negotiate, until the increase reaches a percentage of 14%. This is referred to as negotiated settlement budgeting. Phony smile budgeting on the other hand referrer to a proposal of an increase in an organization budget, the manager makes a smile, but only agree to allocate a smaller amount as suggested by the department under consideration. The second important lesson from this book is on how to deal with change in an organization. The book identifies four main principles that an organization needs to undertake during a process of transition.

These principles are, ensuring that everybody within the organization knows why it is changing, getting rid of employees who resist change, hiring and promoting employees who accept change, and seizing opportunities, even if they came as a result of the downfall of another person. For instance taking advantage of a fall in housing prices, and buying them at a cheaper price. It is important to denote that any business organization, at one point or another must experience changes in its policies, management, and a shift in the market direction.

The third lesson that this book manages to give is on how to develop a winning strategy for the