BUSINESS: The Ultimate Resource

February 2004 Upgrade 17

MANAGEMENT LIBRARY
Funky Business
by Jonas Ridderstrle and Kjell Nordstrm

Why Read It?

The book by two Swedish academics sets out a view of the type of companies that will succeed in the new economy. The ability to manage time and people are the keys to success, together with the flexibility to adapt to constant change. The book provides a useful framework for developing a competitive strategy.

Getting Started
The authors argue that the economy will be characterized by friction-free markets. Every supplier will have access to the same resources, ideas, methods and technology, and consumers will also have even greater choice. Time and talent will be the critical differentiators. Companies that succeed will be flat, open and small; they will maintain core values but pursue constant innovation and change, entering new markets without hesitation. Successful companies will take risks and never accept that average is good enough. They will offer products and services that take the customer by surprise. Management and leadership are keys to competitive advantage, but their nature has changed, the authors claim. How you attract, retain and motivate your people is more important than technology. The new economy calls for far greater flexibility in working patterns: new roles demand new skills, and work will be viewed as a series of projects.

Contribution
1. Toward friction-free markets The economy is moving towards a state of super capitalism, with near friction-free markets, say the authors. As a result, every supplier everywhere has access to the same resources, ideas, methods and technology. The problem is that every consumer now has access to fantastic choice. 2. Time and talent differentiate

Bloomsbury Publishing Plc 2004

BUSINESS: The Ultimate Resource

February 2004 Upgrade 17

In a friction-free market, time and talent are the two critical commodities. How companies deal with these two factors determines which fall by the wayside and which move through to the next round. The goal is to be momentarily ahead of the game. 3. A model for staying ahead Funky Inc. is a theoretical model for achieving this fleeting competitive advantage. The company is flat, open, and small. 4. Change is vital Signal what you stand for in terms of values or branding. Maintain those values through relentless innovation and change. Bring your products to market faster than anybody else, and replace them frequentlymost of Hewlett-Packards revenues, for example, derive from products that are less than a year old. Use your core competencies to enter new industries without hesitation. 5. Go beyond the average Recognize that being average is not good enough. The goal is to be 100% completely right for a specific market, not ordinary and 95% right to everybody. Take risks; accepteven welcomefailure, and spurn all things average. 6. Surprise the customer Change the frame of reference from what you are selling to what the customer is actually buyingthe two are not always the same. Get on the same vibe as your customer. Offer products and services that constantly take him or her by surprise. For example, former online bookseller bol.coms free copy for a friend campaign increased sales three-fold. 7. Manage your talent Leadership and management are more important than ever before. We are selling, exploiting, organizing, employing and packaging time and talent. In the authors view, as a result, management and leadership are keys to competitive advantage they differentiate you from the mass and create sustainable uniqueness. How you attract, retain and motivate your people is more important than technology, as is how you treat your customers and suppliers.

Bloomsbury Publishing Plc 2004

BUSINESS: The Ultimate Resource

February 2004 Upgrade 17

8. Changing style of management Management and leadership have reached maturity as potent competitive weapons. Their nature has changed, and autocratic leadership is no longer effective. Management by numbers and by fear wont work. If management is people, management must become humanagement. 9. New working patterns The new economy calls for far greater flexibility. Throughout most of the 20th century, managers averaged one job and one career. Now, we are talking about two careers and seven jobs. The days of the long-serving corporate man are long gone. The emphasis will be on getting a life instead of a career. Work will be viewed as a series of gigs or projects. 10. Demand for new skills New roles demand new skills. Thirty years ago, we had to learn one new skill per year. Now, it is one new skill per day. Tomorrow, it may be one new skill per hour. Skills, like networking, are more important. In 1960, the average manager had to learn 25 names throughout his or her entire career; today we must learn 25 new names every single month. Tomorrow, it may be 25 new names per week.

Context
Funky Business is about how successful companies differ from their competitors. This book draws extensively from rigorously researched data, but presents its findings with wit and intelligence, reinforced with excellent examples. The book offers provocative ideas, but it is not a practical how to survive the future road map; nor is it a set of predictions on what the future will be like. It is, however, a comprehensive and coherent philosophy. Unusually, in an age of instant gurus and ready prescriptions, Ridderstrle and Nordstrm leave it up to the reader to embrace, integrate and apply the thinking contained in the book.

The Best Sources of Help

Ridderstrle, Jonas, and Kjell Nordstrm. Funky Business. Financial Times Prentice Hall, 2000. Web site: www.funkybusiness.com

Bloomsbury Publishing Plc 2004