There's a palpable sense of dread in the air.
Is it just me? I don't think so.
A friend recently mentioned that it's like watching a swaying house of cards. The U.S. economy, propped up by consumer spending, bad debt and inflated real estate prices, is starting to tumble. He added that things are probably even worse than they appear, since the current administration's self-serving approach to reality and the rule of law is surely concealing a veritable library of cooked books. Whoever takes over will inherit a big mess to clean up -- or sweep under the rug. We'll see, but meanwhile, what will get us out of this morass?
I wish I knew, though I strongly suspect that many people will rise to the challenge in a typically American fashion by innovating and creating new products, services and markets. Here are two new books on business innovation and the forces that encourage and impede it.
The Milkshake Moment: Overcoming Stupid Systems, Pointless Policies and Muddled Management to Realize Real Growth. Steven S. Little. Wiley. 192 pages.
Remember the famous scene in the great Bob Rafelson movie Five Easy Pieces when Jack Nicholson tries to get a side order of toast that isn't on the menu? ''No substitutions,'' he's told by the surly server. (You can watch the scene at youtube.com, search for Five Easy Pieces Diner Scene.)
Speaker and consultant Little encountered a similar problem. He craved a milkshake while staying at a hotel, but room service wouldn't deliver one, despite having all the ingredients on hand; it, too, wasn't on the menu. This typifies the rules, regulations, procedures and other customs that impede companies' innovation, he says. It also stifles growth.
Little is a humorous, down-to-earth writer, and this unpretentious little book is a very pleasant way to get the conversation started in evaluating whether or not your firm's rules -- and overall approach to business -- benefit customers or achieve the opposite effect.
Here's his money quote: ''The purpose of any organization is to identify and fill the relevant needs of those they serve.'' Sometimes, that requires ignoring or breaking the rules, and he also looks at a handful of individuals and companies whose actions transcend job descriptions and mission statements.
The Game-Changer: How Every Leader Can Drive Everyday Innovation. A.G. Lafley and Ram Charan. Crown. 320 pages.
Ram Charan, the ubiquitous author and consultant, teams up with the chairman and CEO of Procter & Gamble to explore the ways that innovation tripled that company's profits. As usual, Charan seeks to apply rational, reproducible models that can be exported to other industries and organizations.
As a marketing behemoth, P&G found itself with a surplus of brands, so part of its innovative approach included repositioning or eliminating some of its trademark products. Interestingly, there seems to be an atypical emphasis on intuitive product development and marketing here, which I don't recall seeing in other tomes by Charan, so we'll credit Lafley's influence for that.
Despite the P&G connection, this book also looks at a diverse array of innovative organizations, including Samsung, L'Oreal and others, as well as retailers with whom they collaborate on a number of ventures.
Overall, this is one of Charan's better recent offerings, as he has a more defined, albeit enormous, subject to study. But the lessons can be applied to other companies as they seek to reinvent themselves and emerge from the doldrums. As usual, however, bold and honest leadership will be the catalyst.
To receive business book reviews by e-mail or join the Business Monday Book Club, e-mail Richard Pachter at rap@WordsonWords.com. To read more of Pachter's musings, go to www.reviewrap.blogspot.com or read his weekly personal finance blog at www.moli.com/p/moliview/3/category.
