Business @ the Speed of Stupid

Steve MacLaughlin writes with this review. Any book that points out bluntly that most web sites suck already has me nodding, but I wish the authors would have included all the details, instead of protecting the guilty by anonymizing individual failure stories. Business @ the Speed of Stupid author Alan Morrison and Dan Burke pages 256 publisher Perseus Books rating 8.5 reviewer Steve MacLaughlin ISBN 0738205427 summary Things not to do, unless looking stupid really is your intent.

Alan Morrison and Dan Burke have written the first meaningful post-mortem on the New Economy in their new book Business @ the Speed of Stupid. At its core the book clearly explains how the disregard for strategy and sound management principles doomed many a company and Internet project. If this sounds like a lot of other books currently hitting the shelves, then I should point out that Business @ the Speed of Stupid is one of the only books not willing to pull punches.

As you can probably tell by the title, Business @ the Speed of Stupid is not one of those cutesy sugar-coated business books. Consider the opening of Chapter 1: "Most companies of any size have a Web site. Most suck! They suck because they simply fail to communicate with the intended audience." And there's a lot more where that came from! The book is divided into two sections: "@ the Speed of Stupidity and Accelerating" and "Decelerating the Stupidity." This format proves to be a good way of presenting their observations and recommendations.

The "@ the Speed of Stupidity and Accelerating" section is filled with stories about companies that remain nameless to protect both the guilty and the innocent. Some readers may be disappointed that Morrison and Burke have chosen not to reveal the true identities of the companies and people they profile, but I think it actually strengthens the usefulness of the stories. You're not distracted by the sensationalism, and you're not fed the rose-colored version that things just didn't work out for these companies or their ventures. The stories are even more useful because they reveal the real situations, conversations, and decisions that led to failure.

Morrison and Burke are able get their ideas across without sounding like dusty old professors or techno-Latin writers trying to sound intelligent. They are quick to point out that there are no silver bullets and that cutting corners is a recipe for disaster. Consider their take on phantom sales predictions: "A common and widely held misconception is the idea of magic conversion ratios that convert the number of hits on a site to projected customer leads, e-commerce sales, or whatever. Let's be clear: This type of thinking is 100 percent crap."

A major theme in the first section of the book is how the apparent simplicity of the Web lulled business leaders into a trap. The brochureware sites that companies first launched appeared to be simple. But when it came to real e-commerce or real e-business companies quickly learned that these projects were much more complicated. The notion that you could throw together an Internet project without any planning, without any processes, and without experienced professionals was foolhardy. As the authors accurately point out, "the frequency of this type of foolishness is increasing dramatically as more and more projects are sponsored and managed by nontechnical professionals and staffed by zealously ignorant technologists."

This comment illustrates another main point of the "@ the Speed of Stupidity and Accelerating" section: "Get the right people in the right roles or you will find yourself facing insurmountable problems." The wrong people are those that consistently contradict their words through their actions. They say they want things done right, but they end up cutting corners to get the job done fast and cheap. They hire the best people or companies to do the work, but want to totally ignore the processes that create good work. The authors quip, "it is amazing how often executives hire experts and then completely ignore their advice" instead of remembering to "hire smart people and listen to them." Balancing people, processes, and systems is critical to being successful.

Business @ the Speed of Stupid also provides readers with a much needed smackdown about the importance of sticking to the "old rules" of business. Morrison and Burke contend that "technology must take a back seat to core business and customer needs, not the other way around" and that "the 'new rules' are simply a recipe for disaster, and those who continue to propagate them are completely irresponsible." The technology shakeout taught many business leaders just how important planning and communication were to developing successful initiatives. Of course Morrison and Burke get that point across in a less subtle way: "There is a generation of lemming managers who actually believe that telling people 'Just do it!' is the right way to manage because that's the way they've read it in a book or magazine."

The "Decelerating the Stupidity" section of the book tries to bring a lot of the key messages and concepts together, and offers a well-presented framework for putting the brakes on stupidity. I think the "Do's and Don'ts" at the end of each chapter of the first section will give readers more immediate solutions to their problems, but the second section takes a much more big picture approach. The framework the authors put forward is based on the concept that thinking strategically means always balancing the "Organizational Domain" and the "Competitive Domain."

The "Organizational Domain" is made up of the people, processes, and systems that allow your company to get the job done. The "Competitive Domain" is made up of your presence in the market, customers, and your competitor's presence in the market. The connection between these two domains is your strategy, and it acts as the ultimate fulcrum to keep things balanced. The authors note that "to emphasize one thing (e.g., technology) while you slight another (e.g., people) guarantees you will look stupid."

Business @ the Speed of Stupid is a well thought-out book by two people who actually know what they're talking about. The 230 pages of content move at a steady pace, and the accompanying charts and illustrations don't require a PhD in fluid mechanics to understand. Footnotes throughout point readers to other outside resources and a handy "Glossary of E-Terms and Phrases" are nice touches as well. I'm sure you could scan through a lot of the book over an over-priced cup of coffee at one of those bookstores, but I think you'll quickly find it's a book you'd be stupid not to buy.

You can purchase this book at Fatbrain.

Comments

Guinea-Pigs

[Man of E]

It's so easy to write a book like this now that so many companies have failed because of building stupid web sites. How could they not? Back then nobody told them how to work with the web, because everything was new! In effect, everyone was a guinea-pig for the web and e-commerce, and some got lucky enough to find the right formula. Most didn't, but they couldn't know they were wrong when they started out.

Can we really point at companies that failed and say "they were stupid"? It may be the case for some, but a number of companies run by very smart people failed the same way. They were just experimenting, and now thanks to the companies that failed and those that succeeded, we have a better idea of what works on the web, and what's "stupid".

Re:Wow talk about an easy target

[e-gold]

Interesting. Does the book mention WebVan? I saw that and right away I thought it had to be the least-intelligent waste-0-money I'd ever seen. The margins in the grocery-business SUCK, the good thing about selling (not delivering) food is that people have to eat even in bad times, but WebVan wasn't focussed on pleasing customers and was destined for failure in that marketplace even if times had remained good! At the time (in the middle of the "boom") I was trying to raise capital for a good idea (which is still working, but it's not making me any money). I was amazed at how easily various moronic ideas like WebVan raised HUGE money (I was looking for about 100 thousand dollars or so, certainly no more than 150K!).

Anyway, WebVan (like Beenz & Flooz, but don't get me started...) was obviously going to be an enormous waste of money, from the beginning, and I said so at the time. Nobody listened, and the result has since served shareholders right. One of the things to keep in mind is that the media played favorites depending on who wastes the most money on ads (and to hell with covering anyone who spends what could be ad-money hiring smarter nerds). For an example of this media-coverage phenomenon, see the now-dead "Industry Standard" magazine. I doubt playing favorites based on ad spending died with that phone-book-sized magazine, so it's a good idea to keep it in mind when reading coverage of certain companies, IMO.
JMR