Foreword: A Practical Narrative

It is not very often we get a firsthand account from a CEO about how he transformed his organization from a slow decline to an engine of vitality and growth. That is what Vineet Nayar provides in this detailed first-person narrative of his company’s journey over the last five years.

The book offers three perspectives. First, we get a glimpse of a major transformation from Vineet’s viewpoint as the CEO—his doubts, his process of discovery, the validation of his ideas, and the building of consensus. Second, we witness the migration in his thinking about management from the old to the new—from a focus on the traditional hierarchical structure to one that decentralizes power, responsibility, and accountability for value creation. Third, we explore the cultural prerequisites for this approach to management—the need for honesty, transparency, trust, and dialogue at all levels in the organization.

Most important, Vineet recognizes that today the asset base of an organization increasingly resides in the talent and creativity of its employees. Knowledge-based businesses, especially, depend on excited teams of individuals who are eager to take on one challenging task after another and to act as custodians of the tacit knowledge in the organization. To manage them—especially Gen Y employees, and particularly in global organizations—requires a new set of capabilities. Vineet’s story shows how a company can focus on its value creators—the frontline employees—to achieve remarkable growth and profits.

In a time when we are witnessing a rapid shift from traditional manufacturing to knowledge-based companies—and, as a result, a transformation of the work of managers and of management practice—this book raises important philosophical questions. Is there inherent value in every employee—in his or her knowledge, creativity, commitment to tasks, and capacity to collaborate? To create the most value for customers, should we focus on how employees are empowered? Do employees, in short, make a difference?

Vineet answers these questions in this easy-to-read, firstperson account. It is a narrative of organizational transformation and a practical guide for managers who wish to achieve similar results, as well as a story of the personal transformation of a CEO. I recommend it wholeheartedly.

—C. K. Prahalad

Paul and Ruth McCracken Distinguished
University Professor

Ross School of Business
University of Michigan