The Resilient Enterprise

Stories from Nokia, Dell, UPS, Toyota, and other companies show how firms can reduce their vulnerability to high-impact disruptions, from earthquakes to strikes, from SARS to terrorism, and use them for competitive advantage.

What happens when fire strikes the manufacturing plant of the sole supplier for the brake pressure valve used in every Toyota? When a hurricane shuts down production at a Unilever plant? When Dell and Apple chip manufacturers in Taiwan take weeks to recover from an earthquake? When the U.S. Pacific ports are shut down during the Christmas rush? When terrorists strike? In The Resilient Enterprise, Yossi Sheffi shows that companies' fortunes in the face of such business shocks depend more on choices made before the disruption than they do on actions taken in the midst of it--and that resilience benefits firms every day, disaster or no disaster. He shows how companies can build in flexibility throughout their supply chains, based on proven design principles and the right culture--balancing security, redundancy, and short-term profits. And he shows how investments in resilience and flexibility not only reduce risk but create a competitive advantage in the increasingly volatile marketplace.

Sheffi describes the way companies can increase security--reducing the likelihood of a disruption--with layered defenses, the tracking and analysis of ldquo;near-misses,rdquo; fast detection, and close collaboration with government agencies, trading partners, and even competitors. But the focus of the book is on resilience--the ability to bounce back from disruptions and disasters--by building in redundancy and flexibility. For example, standardization, modular design, and collaborative relationships with suppliers (and other stakeholders) can help create a robust supply chain. And a corporate culture of flexibility--with distributed decision making and communications at all levels--can create a resilient enterprise.

Sheffi provides tools for companies to reduce the vulnerability of the supply chain they live in. And along the way he tells the stories of dozens of enterprises, large and small, including Toyota, Nokia, General Motors, Zara, Land Rover, Chiquita, Aisin Seiki, Southwest Airlines, UPS, Johnson and Johnson, Intel, Amazon.com, the U.S. Navy, and others, from across the globe. Their successes, failures, preparations, and methods provide a rich set of lessons in preparing for and managing disruptions.

Additional material available at www.TheResilientEnterprise.com

Review text:

'The Resilient Enterprise is more than a grab bag of stories about fires, thieves, and tornadoes. It is the timely analysis of an important--and overlooked aspect of business strategy. Mr. Sheffi argues that crisis control can be a competitive advantage for companies that get it right. Wise planning at headquarters is part of the answer, but only part: Companies need a whole culture of flexibility. It is impossible to know where trouble will hit next, but it is possible to create an atmosphere in which people at all levels respond to disruptions quickly and confidently. Metaphorically, levees can break at any time.'

-- Wall Street Journal

'This may be the most important business book that you will buy this year. Sheffi, an MIT Professor of engineering who writes with refreshing clarity and first-hand business knowledge has produced a practical guide, not just another risk management manual.'

-- Director Magazine

'However counter-intuitive this may sound, Sheffi's detailed examination of the supply chain breadsowns at companies such as Amazon, Dell, General Motors, Intel, and UPS leaves little room for doubting his key messages: disaster might not be frequent but it is inevitable. And, the measures that organizations undertake before the event will almost certainly have a greater influence on the subsequent consequences than anything they might do afterwards.'

-- Information Age

'[Sheffi is] quickly becomin