On the Firing Line

The Book of the Week is “On the Firing Line” by Gil Amelio with William L. Simon, published in 1998. In this informative book, Amelio chronicles his short tenure as Apple Computer’s CEO from early 1995 to mid 1997.

Some might say Amelio made a foolhardy decision to take on the challenge of turning Apple around, when he had a secure and promising future as the CEO of National Semiconductor, whose recovery he had spearheaded. Throughout the book, he discusses the series of difficulties he faced and admits his errors in judgment.

Amelio handed grist to his critics on a silver platter because he allowed his employees to talk to the media, which had a field day on many fronts. The media also played him for a fool.

There were numerous factors out of the CEO’s control that also gave him a tough time. His predecessor allowed extreme price cuts on Apple’s products, and the sales team was playing a short-sighted game– a vicious cycle every holiday season, whereby they would give deep last-minute discounts to retailers to move inventory, putting a better face than otherwise on the financial condition of the company, as its fiscal year started on October 1.

Amelio was distressed to find that the corporate culture was fragmented along departmental lines. The engineers worked on products the sales department had no intention of selling. “Apple never had an official statement of strategy – which inevitably means that every executive, and most managers, design their own versions. Everyone pursues their own goals, rowing frantically but each pulling in a different direction.” One reason was that managers knew the company was in dire financial straits and feared their projects were going to be cut.

Some thought Amelio desperate and a sellout for holding meetings with the enemy, Bill Gates, to propose making Apple products compatible with Microsoft products. Nonetheless, he was wary of Gates because Gates was unreasonably stingy in his negotiations.

With Amelio at the helm, performance of the desktop models improved tenfold but sales fell. He attributed this to the presence of a subjective element in people’s reaction to Apple “…irrelevant to product quality, and has … a lot to do with what they read in the newspapers and how comfortable they are with the state of the company.”

Read the book to learn: how Amelio was too trusting when he negotiated his employment contract; about the fronts on which he did make progress, and how he was done in by Steve Jobs.

The Hoax

The Book of the Week is “The Hoax” by Clifford Irving, published 2006.

This is a personal account of an incredibly talented, savvy phony and writer, who, starting in 1969, with a co-conspirator, Dick Suskind, proceeded to write the autobiography of reclusive businessman Howard Hughes; phony, because he had never met Hughes.

McGraw Hill, Irving’s publisher, believed Irving when he told them he had actually spent time with Hughes. McGraw wanted to believe that it was going to produce an exclusive work on a billionaire businessman who, up to that point, had refused to let anyone publicize significant information on his personal life.

Irving and Suskind perpetrated their deception because: trying to get away with preying on the gullibility and greed of the publishing industry was a challenge that would make them feel alive.

Pursuant to the writers’ scheme, the book was “…based on fact and yet we had the freedom and power to infuse fact with the drama of fiction.” The writers did extensive research– spent hours poring over old city telephone directories, old maps, surveys, society columns and classified documents in order to perfectly embody Hughes’ voice in print. When they were concocting anecdotes, they inserted (real) people who were dead because dead people couldn’t sue for libel.

Incidentally, a whole other book could be written on the name for the marital anguish: soul-vomit, that Irving caused his wife with his adulterous behavior– that has so much female appeal on the big screen and in books.

Read the book to learn what was becoming of Irving and Suskind when Irving was heard to say, “You know, I’ve had a lot of experience in this past year burning manuscripts. It takes a long time and it’s not easy.”

Jimi Hendrix

The Book of the Week is “Jimi Hendrix” by Sharon Lawrence, published in 2005. This ebook is the biography of the world-renowned guitarist.

Hendrix suffered numerous hardships and deprivation in his childhood. Born in 1942, he was shuttled among various relatives, including his alcoholic father– divorced from his mother when he was 9; she died when he was in his mid-teens. He developed a passion for music, which was his one solace.

By the mid-1960’s, he had formed a band with two other musicians, and they were touring and recording on an unusually rigorous schedule. This prompted them to resort to partaking of pills, marijuana, hashish and LSD to mitigate severe sleep deprivation and stress.

Hendrix was afforded the opportunity to meet or play music with many other rock stars of his generation. Due to his incredible talent, he experienced tremendous fame very suddenly. Unfortunately, he was too passive and nice. Read the book to learn the details of how Hendrix fared after he allowed numerous greedy, manipulative and ungrateful people to enter his life.

 

The Good Girls Revolt

The Book of the Week is “The Good Girls Revolt” by Lynn Povich, published in 2012. This short ebook discusses what happened when a group of female employees sued Newsweek magazine’s parent company in March 1970, for gender discrimination.

Shortly thereafter, similar litigation followed at other publications– at Time, Inc., Reader’s Digest and various newspapers across the United States. The author briefly describes the historical backdrop before, during and after. One of many cultural phenomena she relates is that the year 1973(!) saw the elimination of classified ads divided into “Help Wanted– Female” and “Help Wanted– Male,” the former of which were mostly for menial and/or low-paying jobs. “Saying you worked at Newsweek was glamorous compared to most jobs available to college-educated women.”

The author says that from the early 1920’s up until the aforementioned lawsuits, periodicals publishers relegated women to dead-end positions. At Newsweek, the vast majority of female employees held the title “researcher”– a fact-checker, who could never become a reporter or editor like, or get paid as much as, the male employees. Besides, many of the men were hired “…as reporters and writers with no prior professional journalistic experience” and most of the female researchers had the same qualifications as they did.

One reason many women did not protest or were not even consciously angry about their situation, is that they were conditioned by the workplace and society in general to comply with gender stereotypes. Four decades ago, women were limited in their opportunities and criticized if they chose a male-dominated career field. They were given to believe they should not aim too high, but stay where they were, because otherwise, they would encounter difficulty.  It became a self-fulfilling prophecy for most of them. Even many women’s colleges at that time had the goal of providing an education with the assumption that a graduate might get a job, but she would quit the workforce when she had children.

Even today, in the American workplace, there is an environment in which women are jockeying for position and power. According to the book, they are less well-liked, the higher up the corporate ladder they climb. The opposite goes for men. In certain aspects of their lives, such as weight-loss groups and fitness, women band together and cheer each other on. But not usually in the workplace.

Read the book to learn about the consequences of the initial legal action, and whether Newsweek’s workplace policies changed when, in 2006(!), three female employees recognized the recurrence of gender discrimination.

Dot Bomb

The Book of the Week is “Dot Bomb” by J. David Kuo, published in 2001. This ebook details the business dealings and the ensuing suspenseful power struggle at a dot-com company called Value America between 1996 and 2001.

The online retailer’s intended brand image was to boast maximum selection of merchandise shipped directly from sellers. This delivery-on-demand arrangement allowed the company to remain inventory-free, and thus minimize overhead costs. However, in reality, it needed to use resellers for many of the supposedly infinite products it sold.

Value America’s founder and leader, Craig Winn, was a charming megalomaniac who had grand plans to partner with various major corporations in order to attract investors and make the company worthy of an IPO. Unfortunately, Winn had planned to sell stock to the public just after the peak of the dot-com boom, when brokerages’ confidence in internet companies had started to wane.

After Value America went public, Goldman Sachs issued a report that Amazon.com was the internet retailer with the highest potential for success because it had high sales margins on its then-merchandise consisting only of books; a $30 billion valuation was not out of the realm of possiblity. Goldman went on to say Value America had the worst prospects, with sales margins of 1% and runaway costs. It would have to achieve revenues of billions of dollars in order to make any money.

Toward the end of the story, the author realized “Despite the hype, headlines, and hysteria, this was just a gold rush we were in… a lot of us were kin to those poor, freezing fools in Alaska who had staked everything on turning up a glittering chunk of gold.”

Read the book to learn the fate of the author, his family and the other Value America employees with dollar signs in their eyeballs.