FedEx Delivers: How the World's Leading Shipping Company Keeps Innovating and Outperforming the Competition
Madan Birla | 2005-06-15 00:00:00 | Wiley | 215 | Company Profiles
An inside look at leadership practices that enabled the world's leading shipping company to outthink and outperform its competition
Using firsthand accounts from top leaders at FedEx, FedEx Delivers explains how the company became an international powerhouse and one of the most trusted global brands by using leadership practices that tapped into the creativity and commitment of its employees.
Both a compelling business story and a prescription for business success, FedEx Delivers presents a model to show how these practices created and sustained an innovation culture. Readers will learn how to apply this model to their organizations for developing a culture of innovation that evolves with the times and offers fresh solutions to new challenges.
Innovative thinking and disciplined execution are what made FedEx a market leader, and they can help any business in any industry do the same. Each chapter covers a different aspect of innovation with real-life stories that highlight its effectiveness, and offers valuable ideas that lead managers through the process of implementing those practices.
By breaking innovation down to its three simplest steps-generation, acceptance, and implementation of ideas-and offering proven leadership practices that really work, FedEx Delivers offers unique insight and invaluable advice on building an organization that can adapt to any challenge and meet any goal in today's highly competitive global economy.
Reviews
My disclaimer: As with any opinion, it is only my opinion! And everyone's will vary depending on who reads the book and what the reader is looking for. I look for ways to improve businesses, sales, and my life.
On a 1 to 5 scale, 5 being the best:
Readability 4: The book reads pretty well, although a little slow at times. One of those books I picked up for a long flight. It was interesting as well and occupied my time.
Information and new ideas 5: Some great ideas were shared and they demonstrated the simplicity in which some problems can be solved.
Applicable Ideas 5: As I stated, great ideas to innovate into other businesses. Especially in regards to problem solving.
Value 5: I took away several ideas which gave me ways to improve the business that I am in.
Overall Score 5: Another book for reference in my library. You might want to buy it as well.
Madan Birla did a fine job!
Rip Walker
Author: Rip's Book of Common Sense Selling: Improving Sales Through Process Implementation
Reviews
Not sure if this was a book to promote himself or explain the origin and inner workings of FedEx, but it was a pathetic mishmash and virtually unreadble. I now blame this guy personally when my FedEx overnight doesn't arrive on time.
Reviews
Fred Smith and FedEx overcame incredible obstacles in the company's start-up, and cannot be congratulated enough for doing so. In addition, it went on to become the first service company to win the prestigious Baldrige Quality Award in 1990. However, Birla's "FedEx Delivers" does neither readers nor FedEx any service by its incomplete and simplistic coverage.
Birla's book emphasizes a quasi-Baldrige/human-relations perspective. However, my research showed that maintaining an important competitive advantage and low costs are far more important to organizational success. Birla does not address these aspects. (This conclusion is reinforced by several Baldrige Award winners subsequently encountering severe financial downturns after winning the award - even bankruptcy.)
The second major problem with the book is that it does not cover FedEx's series of acquisitions since successful startup. These include Viking Freight, Watkins LTL Express, Roadway Package Express, Flying Tigers, and Kinkos. Again, FedEx has done a great job of building these existing businesses, but Birla tells us none of it - important since so many acquisitions fail. Neither does he address the resulting incursion of substantive competitive disadvantages. (One obvious issue is substantial route and facility overlap between various divisions - this becomes increasingly untenable as fuel prices increase.)
Finally, my experience (FedEx Ground) is that FedEx has NOT tried to substantially change the human-relations environment in these companies - even though they may seriously contradict Birla's summary of the original Baldrige-winning FedEx.
For example, FedEx Ground drivers are not company employees - rather hired by thousands of truck-owners contracting with FedEx, and labeled "independent contractors." If you're an independent contractor, neither the company nor the truck owner pays state workers compensation or federal unemployment and disability taxes. They are also released from matching workers 7.65% Social Security and Medicare taxes; an independent contractor pays the full 15.3% load. This creates great inconsistencies in work environment and pay. Almost all the FedEx Ground drivers and all the owner-operators receive no benefits and are paid far less than their UPS counterparts. (My sense is that FedEx is turning Watkins LTL into a similar situation, while reducing pay, increasing non-productive wait-times, and eliminating benefits at the same time - despite having been ruled in violation of IRS regulations and subjected to assessments estimated to eventually total $1 billion!)
Another issue is that because the over-the-road truck owners have invested considerable time and equity in their trucks and routes, FedEx has been unable to take advantage of much-more fuel-efficient piggy-back rail service - without buying out truck owners at considerable expense, which it has chosen not to do. (UPS uses considerable piggy-back rail service.)
Still another problem arising out of its acquisitions and new start-ups is that FedEx has duplicating routes - FedEx Express (its air arm), FedEx Ground, and FedEx Home Delivery vehicles all overlap in their service areas. (Conversely, UPS' use of a single vehicle for package delivery also allows it to charge by service speed, NOT transport type - often allowing use of low-cost ground transport instead of aircraft to provide higher-revenue next-day service.) Again, FedEx helps overcome these strategic disadvantages by paying employees less, and sometimes hiring unqualified drivers (eg. FedEx Ground OTR) - contrary to Birla's book.
FedEx has greatly benefitted from periodic UPS labor union strikes - a sustained competitive advantage also ignored by Birla. (On the other hand, Birla also ignores FedEx's labor strife among its pilots, especially after acquiring Flying Tigers.)
Bottom Line: "FedEx Delivers" is not worth reading.
Reviews
I'm afraid that I've to say that it is a terrible book on both FedEx and Innovation. The book talks a very little about FebEX in terms of its story and its business innovation, although in the name of FedEX Delivers. And it is very shallow and unsystemic, actually no (much) value, in learning of management and of innovation.
It is almost waste of time!
Sorry of my frank comments but I just share my feeling.
Reviews
I was very disappointed in this book on Fed Ex. This is a great management theory book but really told me nothing about how Fed Ex is innovating again and again. I am hoping that someone will come out and tell us how Fed Ex as a company is succeeding but it is not this book. For those interested in academic management you will find this interesting otherwise don't waste your time and money.
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