Focus on Books
Reviews of current books discussing
subjects on the horizon of business
activities will be considered forpub-
/ication, particular/y those on con-
~rovers~a~issues being encouniered
by bofh practitioners and teachers.
Manuscriptguidelinesare available
upon request.
Focus on Books
Dangerous Company
The Consulting Powerhouses
and the Businesses They
Save and Ruin
By James O’Shea and Charles Madigan
The title of this book is geared to grab
the reader’s attention and interest im-
mediately. But this is not the exciting,
fictional thriller one might expect,
Once into the book, the reader finds it
to be an interesting tale of real-life
management consulting firms. Written
in collaboration by two senior journal-
ists from the Chicago Tribune, its un-
derstanding of consulting lends cred-
ibility to the story line and goes a long
way toward bringing the reader into
agreement with its point of view.
As newspaper writers, the authors
would be expected to traverse all as-
pects of consulting-both the good
and bad contributions made by this
necessary industry. Managers of many
companies, both large and small, do
need help from time to time, and they
turn to consulting firms to gain focus
on specific problems and find unbi-
ased solutions derived from previous
experience. However, O’Shea and
Madigan devote most of this book to
the negative side of consulting, with-
out letting the reader decide whether
consultants are charlatans or saviors of
companies in trouble.
Dangerow Com$~ny is divided
into nine chapters, each chronicling a
specific company that has been devas-
tated at some time in its life by a con-
sulting firm. Those that are negatively
portrayed include the Boston Consult-
ing Group, Bain bi Co., Andcrsen Con-
sulting, and McKinsey. One firm that
does receive a good rating from the
authors is A.T. Kearney for its work at
Sears, Roebuck.
The title of the last chapter, “Ca-
veat Emptor,” is apt. As in any pur-
chasing situation, no one should buy
a product blindly. Managers of large
corporations must not buy, accept, or
implement advice from any manage-
ment consultant without a thorough
examination of the “product” and the
firm standing behind it. Reputable
agencies should be able to provide
references from satisfied customers
and demonstrate a track record of suc-
cess. Any advice received from a new
consulting firm should he tested be-
fore betting a company and its future
on someone’s say-so.
The last 50 pages of the book
contain quotes and d~~cunlentation to
back up the writers’ assertions about
consultants. These endnotes add addi-
tional credibility to the point of view
of the writers, who worked hard to be
thorough in carefully documenting
each situation and quote. Moreover,
the book has depth and anecdotes
that probably can be found nowhere
else. Because of these inside stories, it
makes for good reading and should
be perused by managers and manage-
ment scholars.
Overall, it could have been an
excellent book-had it only tried to
tell both sides of the story. Business
Week’s review agreed that the book is
a bit one-sided. Unfortunately, this
limitation dulls the contribution it
makes to our understanding of the
consulting profession. A naive reader
may develop too biased an opinion of
the industry. Consultants will be com-
pared to witch doctors who attempt to
cure client problems with voodoo and
87
magic. Perhaps Dangerous Company
needed to be written because some
consulting firms have made mistakes
and taken advantage of companies
with problems. However, consultants
do provide a necessary service. All of
them should not be punished for the
mistakes made by some.
Dangerous Company: The Consult-
ing Powerhouses and the Busi-
nesses They Save and Ruin, @J
*James O’Shea and Charles Madigan.
Neul York: Times Business Books, 3992
355 pp.
Apple
The Inside Story of Intrigue,
Egomania, and Business
Blunders
by Jim Carlton
The revieujer, Robert D. Gulbro, is a
professor of management at the Florida
Institllte qf Technology, Graduate
Center. Redstone Arsenal, Alabama.
For many years, business students in
colleges across the country have stud-
ied companies on the cutting edge of
technology that have made mistakes.
The one in the computer industry that
seems to have made the most mistakes
is Apple Computers. Not only has it
erred consistently, but it has also failed
to learn from those errors. Unfortu-
nately, it has not lived up to the po-
tential business students could see in
it. or in the available opportunities
Apple had within its reach.
During the early 1980~3, when IBM
and other computer firms were strug-
gling, Apple could have dominated
the personal computer industry. With
its major position in education, it was
poised to follow those school children
on to college and into the workplace.
How could Apple have missed out on
such opportunities? How could it have
fallen so low and gone so wrong?
Finally, a book has been written
that chronicles the history of Apple
during the 1980s and ’90s and attempts
to explain the wrong decisions that
were made. Jim Carlton, an investiga-
tive reporter for the Wall Street.Jour-
nal who has won numerous awards
and has even been a finalist for a
Pulitzer Prize, has interviewed more
than 160 insiders to obtain accurate
information about what happened at
Apple.
Started by Steve Jobs in a Califor-
Apple was incorporated in
nia garage,
1977 and began selling stock in 1980.
It then took off, and sales soared to
more than $10 billion dollars for a
time. Ilnfortunately, the firm took off
in a unique direction that led it away
from the rest of the industry, choosing
an operating system that was incom-
patible with all other computers. Sev-
eral CEOs followed Jobs, but none has
been able to rescue the foundering
firm that had once promised so much.
The constant turmoil and turnover
in leadership demonstrate the impor-
tance of a focused direction for a cor-
poration. Apple never had a vision of
what it should he. where it should go,
or how to get there from here. Jobs is
now back as chairman of the board,
but hc can’t find anyone willing to be
the CEO of a firm so deep in trouble.
In addition to retelling the history
of Apple, this book includes many
revelations that were not known pre-
viously. For example, politics and jeal-
ousy among executives and engineers
led to many deleterious decisions.
Subordinates undermined the author-
ity of their superiors, and workable
projects were abandoned. Potential
mergers were refused and faulty prod-
ucts were brought to market. One
whole chapter is devoted to the oper-
ating system decisions that took Apple
down a lonely-and possibly deacl-
end-road.
The author also writes about Bill
Gates and sheds additional light on
his role in Apple’s problems. Because
Apple has filed numerous suits against
Microsoft, Gates is often viewed as the
villain. However, Carlton depicts a
more sympathetic view of Gates and
his efforts to persuade Apple to be-
come an industry player instead of a
lone wolf. Although this book has an
ending, the story itself still continues.
Microsoft’s cash infusion has helped
Apple stay alive so far. Gates may even
buy controlling interest in Apple one
day if the ShEi CkOp to new lows.
This would be a good book for
both business strategy students and
academicians. Many how-no-to les-
sons can be derived from it. Although
the writing at times is melodramatic.
the author does provide insider infor-
mation that may be of value to the
serious student. The future of Apple is
uncertain at best, and continued de-
cline is expected. Strong leadership
here could make a difference. Will a
white knight step for\h,ard in time to
save the day’
Apple: The Inside Story of Intrigue,
Egomania, and Business Blunders,
@l.Jirn Carlton. Akul York: Times Busi-
tze.ss/Ra?zdom Hor~sc~,199Z 46.3pp.