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Mean Business: How I Save Bad Companies and Make Good Companies Great, by Albert J. Dunlap, John (Editor) Mahaney, Bob Andelman
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Al Dunlap is an original: an outspoken, irascible executive with an incredible track record of injecting new life into tired companies. The business media have coined a new verb--"to dunlap"--when describing a fast company turnaround. In April 1994 he became CEO and chairman of Scott Paper, which had lost $277 million in 1993, was on credit watch for excessive debt, and whose stock had been comatose for seven years. In a mere nineteen months, Scott had record earnings, the stock had increased in value by $6.5 billion (over 200 percent), and Dunlap merged Scott with Kimberly-Clark in a stock swap that valued Scott at $9 billion and created the second largest consumer-products company in the United States.
Mean Business combines Dunlap's colorful personal history--his working-class background, employment, friendship with such people as Sir James Goldsmith and George Soros, his views on why too many executives think of themselves as corporate royalty--and his provocative ideas on management and leadership. His specific, tested program on how to evaluate and choose a management team, get the lowest costs from suppliers, improve the balance sheet, and develop a real strategy make this an invaluable book.
The controversy about corporate performance and how to achieve it is near the boiling point, as executives face the hard fact of business life: What is good or even excellent today won't be satisfactory tomorrow. Mean Business is absolutely essential for both companies in trouble as well as those at the top of their game.
- Sales Rank: #2016365 in Books
- Published on: 1996-08-27
- Released on: 1996-08-27
- Original language: English
- Number of items: 1
- Dimensions: 1.02" h x 6.41" w x 9.55" l, 1.10 pounds
- Binding: Hardcover
- 289 pages
Amazon.com Review
Al Dunlap, whose corporate behavior has earned him nicknames like The Shredder, took over as CEO of Scott Paper when the venerable paper goods manufacturer was on the brink of death. His ultimately successful efforts at corporate resuscitation are recounted in his typically colorful and exhilarating manner in Mean Business: How I Save Bad Companies and Make Good Companies Great, written with Bob Andelman.
From Publishers Weekly
Company turnaround specialist Dunlap is termed by his critics "Rambo in Pinstripes" or "Chainsaw Al." Most recently notable for a 16-month stint at Scott Paper during which company stock rose 163% (Dunlop sold off non-core businesses and cut executive perks), he now heads the appliance maker Sunbeam. Dunlap scorns trendy management theories and considers downsizing not a bandwagon action but a response to a company's fundamental weaknesses. His formula appears deceptively simple: pick a good (and small) team, figure out what business you are in, concentrate only on that, cut costs and market your product well. He approaches boards in a similar fashion, arguing that all directors should buy stock when they join, be paid only in stock, serve no more than five years and never forget they work for the stockholders. Much of Dunlap's argument makes sense, and he is probably right when he says that he would not be hired if managers had done their jobs right. But, having made his reputation now, he'd do well to take the chip off his shoulder and stop positioning himself as "A Nothing Kid from Hoboken" who takes cheap shots at Harvard M.B.A.s. Author tour.
Copyright 1996 Reed Business Information, Inc.
Review
Allan Sloan Newsweek He's been fixing troubled businesses for more than twenty years. Dunlap's strength is being able to look at troubled companies objectively.
Patricia Holt San Francisco Chronicle His outspokenness is refreshing...workers and shareholders alike will applaud his approach to high-salaried CEOs whose companies are crumbling.
Barbara Sullivan Chicago Tribune Hate him or love him, this is a fascinating book.
Most helpful customer reviews
0 of 0 people found the following review helpful.
Separate the Man from the Message
By Edward J. Barton
The first thing anyone will probably say when they see the "reccomended reading" component of the review is "Why?? Al Dunlap is a crook and he played all sorts of accounting games, bankrupted Sunbeam and was fined by the SEC." All true. But, this bok requires you to both separate and learn from the man and the message.
The message that Dunlap preaches in this admittedly very self-congratulatory tome is that companies are run for shareholder value. Period. By maximizing shareholder value, you will create a strong business that will provide good employment for the best employees, that will add value to the economy, and allow shareholders a rate of return they can then use to reinvest, or be philanthropic, or whatever they want to spend their returns on. Dunlap gives four basic rules for business success:
1. Get the right management team
2. Pinch Pennies
3. Know what business you are in
4. Get a real strategy
If we look at the execsses of the last decade, many companies - especially the banks - would have been smart to heed this message. Corporate greed and abuse, absurd pay and perks, lack of understanding of shareholder value led to massive risk taking and execsses.
Now, shifting to the man and away from the message. Dunlap strikes this reader as an excessively short term thinker. His greatest success - Scott Paper - as well as most of his career successes were extremely short run "put lipstick on the pig and sell her" turn arounds that made him and his investors significant returns, but didn't demonstrate the ability to actually carry through on his fourth rule - getting a real strategy.
The gig was up at Sunbeam because there was little substance behind the facade, and he couldn't get the company sold fast enough to cover the fact that the business approach he used to "turn around" the company wasn't sustainable or a "real strategy". There was no excuse in his use of accounting fraud or channel stuffing to cook the books at Sunbeam, and his hubris cost many investors, employees and others dearly.
The message in "Mean Business" echos Jack Welch, Donald Trump, and countless others - focus on the business and shareholder value. The man, however, failed to heed his own advice or follow his own rules. That cost his shareholders hundreds of millions at Sunbeam and cost him his reputation.
Read the book, heed the business message, and learn from the failure as well. The message is powerful and useful, the lesson of the man himself teaches humility.
3 of 3 people found the following review helpful.
The Notorious Career of Al Dunlap in the Era of Profit-At-Any-Price
By David
Al Dunlap -- a.k.a. "Chainsaw Al" -- was ruthless in downsizing corporations for short-term shareholder profit. While reviled on Main Street, Dunlap was loved on Wall Street for bringing huge returns to investors and shareholders ... until the dark side of his actions began to emerge.
0 of 6 people found the following review helpful.
ABC of management
By Manny Hernandez
This book addresses in a very autobiographical way, the basics of management, not just for companies in problems, but for business in general: surround yourself with best possible people, focus on cost control, increase shareholder value, etc.
In general it's worth reading. However, once you reach the second half of the book it starts to become repetitive.
Overall: it's very good.
See all 42 customer reviews...
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