Our book report this time features re-th!nk, A Business Manifesto for Cutting Costs and Boosting Innovation, by business architect, Ric Merrifield (Pearson Education, 2009). This title cuts through trendy advice about the current economy and focuses on smart tenets of business thinking. 

Merrifield uses vivid examples of companies that have wasted vast resources and lost sight of their goals on the “hows” of business and at the expense of the “whats,” such as Home Depot, a successful company that was able to increase profits by $35 billion in five years, by concentrating on the “hows” of cutting costs and increasing efficiency.  Still, it had lost the quality that makes it unique—qualified, committed and knowledgeable service.

Robert Nardelli, the chairman and CEO who had brought Home Depot those significant profits, was eventually given his walking papers.  Why?  Because the company had lost the crucial “what” that makes it unique—helpful employees.  This book is loaded with real world case studies like this one that exemplify Nardelli’s insightful and useful concepts. 

He teaches the reader to rise above low-level thinking, identify what really matters to the organization, and act accordingly. Pick this book up and you will gain insight into what makes a great company.  Keep it at your desk so you can refer to one of the numerous practical examples when making and supporting your own business decisions!