Books

Unstoppable
Chris Zook
Translation: Shinji Yamamoto & Hiroshi Makioka
Diamond April 2008

Over the coming decade, two out of three companies' core businesses will become outdated. How will your company survive? "The key to transforming a company's core business is to re-discover and utilize hidden assets"

"Unstoppable" (Japanese version) is based on "Unstoppable" (Harvard Business School Press, 2007). The original best-selling U.S. version quickly became a much-discussed business text, presenting well-researched, thorough cases of Apple, De Beers, IBM and other global companies that have achieved a seemingly permanent state of growth. The Japanese-language version includes two new Japanese case studies, Mitsui Fudosan Co., Ltd., and Suruga Bank Ltd., pointing the way forward for Japanese companies seeking growth.

This volume contains important hints for considering the path that Japanese companies should take to realize proactive and full-scale corporate transformation, while facing turbulent conditions affecting corporate survival amidst huge changes in the domestic socio-economy, coupled with global economic transition and the emergence of borderless financing. The book focuses on maintaining core businesses while at the same time fundamentally adjusting core business models when companies' growth methodologies appear to have reached their limits earlier than expected.

"Unstoppable" is the product of research by Bain & Company's worldwide organization on strategy for continually increasing corporate value. Specifically, this research makes use of a database tracking results for 8,400 companies in the G7 nations over a 15-year period, as well as study results covering 500 public companies in the U.S. from 1995 to 2004. Some 25 companies throughout the world were carefully selected for detailed case studies as examples of ones that had successfully faced the need to re-define their core businesses. Analysis of the database of global companies, including some in Japan, resulted in this proven success methodology shared by successful companies.

In all of the successful cases of core business transformation that were investigated, the key to this transformation was found to be the re-discovery and utilization of hidden assets, providing a clear basis for growth methodology. Hidden assets are those assets that have been previously undervalued, insufficiently recognized, or insufficiently utilized. While many companies possess these hidden assets, studies show that they have not fully realized their worth.

Aligning the Stars
Jay W. Lorsch and Thomas J. Tierney
Translation: Shinji Yamamoto & Satoshi Ohara
Toyo Keizai November 2007

Only companies that can attract and foster "stars" will succeed in moving from self-reliance, to independence, to alignment, "leveraging the advantages of aligned independent professionals."

"Aligning the Stars" (Japanese version) is based on "Aligning the Stars" (Harvard Business School Press, 2002). The authors of the original are writing for people involved in the management and practical operations of professional service firms (PSFs), but the Japanese translation focuses on "people," a dynamic asset for business administration, considering the approach that PSFs are taking in this area. The resulting volume offers important suggestions not only for managers and employees at PSFs, but also those from a much wider spectrum of Japanese companies.

The PSF sector employs a sector-specific business model, with PSF management working to attract, retain and motivate (i.e., "align") the talented professionals who are the "stars" of these companies. These stars of the organization make dramatic contributions to their firms through their individual results and achievements, meaning that they have the greatest responsibility for the future corporate value of the firm. The stars build lasting relationships with customers; continuously use their abilities to the maximum extent to drive results, positioning the firm as a top priority when working, and implementing the firm's strategic goals. Stars not only increase the firm's sales, but also align themselves with its goals and values, exercising a harmonizing type of control via their behavior towards their colleagues.

As Japanese companies seek continued growth, they have moved from the past state in which professionals were dependent on the company, to the current state of encouraging individual results as represented by performance-based systems. The next step is a model in which individual stars can harmonize with the organization so as to define future value to the utmost. By looking at successful methods extracted from the managerial systems examined in case studies of PSFs (i.e., firms that are ahead of the curve in taking up this challenge) readers can derive clues for considering the challenges facing Japanese companies.

This book does not pretend to offer a selection of easy answers to the issues that Japanese companies are grappling with. However, as modern Japanese firms have moved beyond previous financial-capital-intensive growth and towards human-capital-intensive growth, they are finding that the key to building competitive superiority lies in the recruitment and development of superior talent. "Aligning the Stars" introduces successful methods for the "people business" (in which people replace financial capital as the main component), with the Japanese translation published five years after the original in the hope that readers can easily incorporate such methodology in a Japanese way.

Mastering the Merger
David Harding and Sam Rovit
Translation: Shinji Yamamoto & Toshihiko Hiura
Diamond February 2007

Don't dive head first into the M&A boom: 70% of all M&A deals fail. "Know the four basic principles, and the seven pitfalls to avoid in order to be successful."

An M&A boom is now sweeping Japan and the rest of the world. This translated edition starts with the question of whether it's time to join this M&A frenzy, analyzing M&A data from the past 15 years and eliciting successful methods based on Bain & Company's case studies. According to our analysis, the major reasons for M&A failures include "ignoring integration-related issues" (67%), "overestimating synergistic effects" (66%), and "problems in integrating management" (61%). Even more than specialist M&A skills, failure factors generally include problems related to management strategy.

"Mastering the Merger" takes a wide-ranging approach, addressing such overarching issues as corporate strategy, the M&A process, and integration. Successful methods are described in detail, relying on Bain & Company's extensive and global experience in M&A support and consulting related to private equity investment.

The Ultimate Question
Fred Reichheld
Translation: Shintaro Hori
Random House Kodansha 2006

Eliminate "Bad Profit" and chase "Good Profit"

It is not widely recognized that profits are made up of "bad profit" and "good profit". "Good profit" stems from repeat purchases due to increased levels of customer satisfaction, with satisfied customers recommending the company to their friends and colleagues.

The problem is that conventional customer satisfaction questionnaires fail to elicit customers' true feelings and opinions. The concept of "Net Promoter^SM Score" (NPS^SM) proposed in this book provides a new indicator for resolving this set of issues. The steps are simple, but revolutionary.

Asking just one question can get customers to tell you the truth, and can get the entire company focused on dramatically improving the customer experience. The road towards real growth starts here.

This full-scale marketing guide offers an overview of the subject, together with concrete steps, introducing an approach based on various analytical methods and strategic considerations. Written in an easy-to-understand style, the book focuses on case studies of well-known companies such as Suntory, Honda and Kao to discuss the necessary approaches, practical tools, and points that tend to be overlooked to enable a shift in the objective of marketing from just selling to "customer-oriented marketing activities."

This book introduces basic steps and simplified approach to help managers in large- and medium-sized companies, as well as entrepreneurs looking to start new businesses, to create business plans, organize their thoughts, and to develop a business plan accompanied with specific numbers. All the steps (i.e. concepts needed in the preparation stage, framework for plan development, written communications skills, financial planning) are laid out clearly and specifically. The book enables the readers to apply the business planning process to their own business management.

Reichheld, who has been engaged in long-term research on loyalty strategy at Bain & Company, discusses the leadership required of executives. For company executives, loyalty is not merely a force driving growth and profits, but is the most important metric for measuring the degree of success. This book explains the nature of loyalty leadership, introducing case studies on loyalty strategy such as Cisco Systems and Dell Computer. Translation supervised by Bain & Company Japan's former Director Ryoji Itoh.

Shintaro Hori, former Japan President and North Asia Representative for Bain & Company, presents a corporate model for excellence in the 21st century, from the angles of both strategy and organization. This book looks at the difficult theme of fusing global management and Japanese management, offering thoughts from a multifaceted perspective.

In mapping out strategies for corporate growth, there are always dilemmas to be resolved. "Profit from the Core" addresses these dilemmas with abundant case studies to present logical and concrete solutions, providing practical tools for use by management.

This book is a strategic guide for top management and their advisors. It illustrates the best use of intangible management resources, in the form of brands, for increased corporate value. The book offers specific methodology through basic theory and case studies.

The success factors in building e-brands are revealed, with illustrative case studies highlighting the efforts of leading companies. Strong e-branding strategies, essential for business success in the new economy, are discussed.

The book introduces the story of Carlos Ghosn, the man leading the reform of Nissan Motor. The narrative is supplemented with commentary in each chapter of Bain & Company's former Director Ryoji Itoh and former Vice-President Miwa Suto.

Case studies illustrate basic theory and concrete methodologies with respect to the management of corporate groups, including decisions on which businesses to keep and divest, M&A, and methods of enterprise valuation for group companies.

The Loyalty Effect
Frederick F. Reichheld
Translation supervised by Ryoji Itoh
Diamond 1998

A new management model is presented, in which "loyalty of customers, employees, and shareholders serve to maximize cash flow and create corporate value." Complete with extensive references to case studies of well-known successful companies, this book examines the success of companies that are building long-term partnerships with customers, employees, and shareholders.

Given that instances of strong leadership making a clean break with the conventional type of reform or the past to implement flawless innovation are rare, the importance is stressed here of looking for underutilized assets within the firm to identify doors leading to reform and innovation. Taking up case studies of various corporate reforms and analyzing how leadership guided them, Shintaro Hori, together with Toshihiko Hiura consider the form of leadership required to transform Japanese companies in the 21st century.

Based on private interviews with the leaders of 161 globally representative companies, Bain consultants C. Farkas and P. De Backer indicate what these executives consider to be the key points in undertaking their professional roles. With reference to the five approaches to leadership that become clear through this interview process, these corporate heads reveal the strategies and actions that help them achieve success with their organizations.

On what basis should consultants be selected in order to achieve truly valuable results in cases where such consultants are brought in to help resolve management and business issues, and how should the company respond to the advice that is received? Concrete explanations are provided in the book.

Advice is presented for exiting the "psychological recession" experienced by Japanese companies following the collapse of the bubble economy, and restructuring to regain the offensive. The Strategic Corporate Realignment Program (SCRAP) is explained from the perspective of the three components of thinning out, replanting and grafting.

The importance of information systems is considered from the perspective of white-collar productivity optimization, observing the total process all the way to output. The second chapter, "Creating Structures to Support Changes in Consciousness," is accompanied by commentary from Shintaro Hori, the former Japan President and North Asia Representative for Bain & Company.

Many Japanese leading companies, regardless of their individual characteristics, all face the shared, structural issues discussed here. The need is presented for innovative energy on par with the energy exerted at the time of the company's founding, in order to achieve radically effective solutions. "Continuist" management is over, according to this analysis, and a "re-establishment" is required to replace conventional strategy and tactics with completely new approaches. Complete with commentary by Shintaro Hori, the former Japan President and North Asia Representative for Bain & Company.