Harvard business review 2006 11 november

161 30 0
  • Loading ...
1/161 trang
Tải xuống

Thông tin tài liệu

Ngày đăng: 15/05/2018, 09:36

Customers as Wild Cards…page 92 Fixing City Schools…page 55 www.hbr.org November 2006 72 Innovation: The Classic Traps Rosabeth Moss Kanter 84 Managing Multicultural Teams Jeanne Brett, Kristin Behfar, and Mary C Kern 92 Breaking the Trade-Off Between Efficiency and Service Frances X Frei 106 Facing Ambiguous Threats Michael A Roberto, Richard M.J Bohmer, and Amy C Edmondson 114 Disaster Relief, Inc Anisya Thomas and Lynn Fritz 22 Forethought 39 HBR Case Study The Reign of Zero Tolerance Ben Gerson 55 Big Picture How to Manage Urban School Districts Stacey Childress, Richard Elmore, and Allen Grossman 130 Best Practice How Well-Run Boards Make Decisions DON’T GET Michael Useem …page 72 141 Tool Kit Mastering the Three Worlds of Information Technology Andrew McAfee 154 Executive Summaries 160 Panel Discussion 114 Features 72 November 2006 72 Innovation: The Classic Traps Rosabeth Moss Kanter 106 Every few years, it seems, managers rediscover innovation as a revenue-generating, profit-making pursuit Unfortunately, they often make the same mistakes as their predecessors when executing their innovation efforts Here’s how to avoid the pitfalls and create breakthrough products and services for your organization 84 Managing Multicultural Teams Jeanne Brett, Kristin Behfar, and Mary C Kern Simple, often subtle differences arising from culture can cause serious problems on multicultural teams The good news is, they can be diagnosed early – and the right strategy for dealing with them can actually strengthen a team’s effectiveness 92 Breaking the Trade-Off Between Efficiency and Service Frances X Frei Customers introduce tremendous variability to most service businesses Learning to manage that variability is central to making a service offering profitable – and it doesn’t have to come down to a choice between operational efficiency and a superior customer experience 106 Facing Ambiguous Threats Michael A Roberto, Richard M.J Bohmer, and Amy C Edmondson When an event’s potential for causing a company harm is unclear, managers tend to ignore or discount the risk Such an approach can be catastrophic 114 Disaster Relief, Inc Anisya Thomas and Lynn Fritz In the wake of a humanitarian crisis, many companies respond generously Imagine how much further their contributions would go, however, if they thought systematically about how and to whom they should contribute before the next disaster strikes 92 84 harvard business review | hbr.org COVER ART: JUSTINE BECKETT continued on page 10 Remember when technology had the ability to amaze you? Believe again Now you can believe in a new kind of IT management Unified and simplified to make your business more productive, nimble, competitive and secure We all know that companies are demanding more from IT — expecting IT to be a strategic and competitive advantage Yet today’s complex IT environments require you to manage across point solutions, siloed organizations and redundant technology A better alternative? Choose an integrated approach to IT management An approach in which software unifies your people, processes and technology to increase efficiency and optimization Only one global software company can that CA, formerly known as Computer Associates, has focused solely on IT management software for over 30 years Our technology vision that makes this promise real is called Enterprise IT Management, or EITM At its heart is the CA Integration Platform — a common foundation of shared services that gives you real-time, dynamic control and flexibility Its greatest benefit? CA software solutions come to you already integrated, and able to integrate with your existing technology to optimize your entire IT environment Ultimately, a well-managed IT environment gives you the visibility and control you need to manage risk, manage costs, improve service and align IT investments To learn more about how CA and our wide array of partners can help you unify and simplify your IT management, visit ca.com/unify Copyright © 2006 CA All rights reserved D e pa r t m e n t s November 2006 12 C O M PA N Y I N D E X 14 FROM THE EDITOR 14 102 S T R AT E G I C H U M O R 130 BEST PRACTICE The Great Wheel of Innovation How Well-Run Boards Make Decisions A paradox about innovation is that there’s nothing new about it – about the process, that is Both the well-trodden ways to it wrong and the proven ways to get it right are worth revisiting 22 Drawing lessons from other companies’ best governance practices is often difficult because they’re so closely guarded A detailed inside look at three boardroom decisions makes it much easier FORETHOUGHT Hedge risk in China systematically… A vast new international market… Customer communities pay off…Is the assembly line really efficient?… Get control of your discounts…Focus knowledge-management investments more on employees and less on systems 39 Michael Useem 22 141 Mastering the Three Worlds of Information Technology Andrew McAfee Managers today are overwhelmed by the number of new technologies in the marketplace To sort through the profusion, they should start by understanding three classifications of IT and then learn how to select, adopt, and exploit the ones that will give their organizations the capabilities they need HBR CASE STUDY The Reign of Zero Tolerance Ben Gerson When Simon Pemberton is summarily fired from Applied Devices for unauthorized e-mailing and Internet use, colleagues wonder if AD’s policies have grown too harsh Top management stands by those policies, arguing that safety and the company’s reputation are at stake Should AD modify its zerotolerance program? With commentary by Janet Parker, Eugene Volokh, Jean Halloran, and Michael G Cherkasky 55 BIG PICTURE How to Manage Urban School Districts 55 151 LETTERS TO THE EDITOR Few if any traditional sales-forceautomation vendors complement their sales methodologies with specific presales processes Instead of trying to squeeze the last drops of improvement out of sales reps, companies can boost revenue quickly and costeffectively by focusing on presales operations 130 Stacey Childress, Richard Elmore, and Allen Grossman In the debate over how to fix U.S urban school systems, the district office is often seen as part of the problem But only the district office can create both a strategy for improving instruction at every school and an organization to implement it 154 EXECUTIVE SUMMARIES 160 PA N E L D I S C U S S I O N Homo Uneconomicus Don Moyer 141 10 TOOL KIT Traditional economics is built on the notion of economic man: rational, well-informed, coolly pursuing his own interests But no one actually makes decisions like that harvard business review | hbr.org M a s t e r i n g t h e T h re e W o r l d s o f I n f o r m at i o n Te c h n o l o g y • T O O L K I T designers were reluctant to use the software, even though Bangle had hired CAS specialists to work alongside them One day, Bangle declared that within three months, the CAS team would have to pay for itself – or he would sell the team’s computers He didn’t twist the designers’ arms; he pressured the CAS specialists and modelers They helped the designers adopt the software and create new design processes Bangle knew he couldn’t force the technology’s adoption or merely hope that complements would emerge He had to allow his team to discover new ways of working – although he could prod it a little There’s an interesting dichotomy in executives’ roles when it comes to NIT adoption Because the use of such technologies is voluntary rather than mandatory, they make users feel more, rather than less, in control of their work As a result, their adoption isn’t difficult However, managers still have to intervene with new technologies, such as groupware, wikis, and blogs, by demonstrating how they can be used and by setting norms for participation Once network technologies are properly established, their use takes off, and the challenge for managers is to refrain from intervening too often or with too heavy a hand In stark contrast to FIT and NIT, enterprise IT is hard for companies to adopt The benefits look great to people at the top, but employees usually dislike EIT technologies Unlike network technologies, they don’t just enable new ways of working; they dictate them Enterprise systems define new crossfunction business processes, impose the processes on employees without allowing employees to modify them, and bring higher levels of oversight Most employees don’t like having new processes dictated to them by a piece of software and will use a variety of techniques to prevent the adoption of enterprise technologies Executives must intervene forcefully throughout EIT adoption efforts because new processes, changed decision rights, and greater interdependence come hand in hand with these technologies november 2006 The IT Dialogue Business and IT leaders should meet periodically to discuss the state of the company’s IT-based capabilities During these meetings, the CIO’s role isn’t to unveil new technologies but to collaborate with executives on capability development The discussions should cover organizational footprints: the geographic, functional, and divisional range over which the company will deploy new technologies The expense, difficulty, and time involved in deploying IT – especially enterprise IT – increases as the footprint grows The conversation can be broken down according to IT category and should address some specific questions Functional IT • Will any of the new software on the market enable our engineers, scientists, analysts, and other workers to their jobs more efficiently? • Are our function technologies outdated? If so, why? What has changed? Network IT How our people collaborate? Do we know what technologies they’re using? • • Do we have ways of letting qualitative information flow horizontally and vertically within the company as well as back and forth with customers and suppliers? • If we wanted to get broad feedback on an important topic, how would we it? • How we know what our people are working on and what they think the hot topics are? Enterprise IT In what ways are our current processes not supporting the needs of the business? Which ones need to be redesigned? Which ones should be extended to our customers and suppliers? • • Are there best practices that should be embedded in our enterprise IT endeavors so that they can be deployed more widely? How much more widely? Do they need to be adjusted at all for new environments? • Are there important business activities, events, or trends that we should monitor? If we aren’t monitoring them, why not? Are the data unavailable or stored across so many systems that the information is difficult to assemble? • What’s the most recent period that we could easily analyze? One hour ago? Yesterday? Last month? Last quarter? It’s important for executives to know how long a proposed IT effort will take and what it will cost, but the ROI figure is nearly worthless I’ve seen many business cases prepared to justify IT investments Virtually all of them predicted increased revenues, higher profits, and lower costs And all of them ascribed the benefits entirely to the technology, making it sound like a can’t-lose proposition In reality, IT is never a sure bet because of the complex interplay between technologies, capabilities, and complements Smart companies spend little time predicting the financial benefits that will accrue from IT efforts They keep track of spending and milestones and constantly check to see if they are on track to gain the IT-based capabilities they desire 147 T O O L K I T • M a s t e r i n g t h e T h re e W o r l d s o f I n f o r m at i o n Te c h n o l o g y In fact, the biggest mistake business leaders make is to underestimate resistance when they impose changes in the ways people work In 2002, a Boston-based hospital set up an IT system that replaced handwritten prescriptions with online orders The system instantly checked doctors’ prescriptions for harmful doses or drug interactions and transmitted the orders to the hospital pharmacy Even though studies had demonstrated that the system would reduce medication errors, physicians bitterly resisted They complained that the computer-based process was slower and less convenient than paper-based ordering and that the built-in error checking didn’t work They protested so strongly that the hospital was able to roll out the system in only a few departments Today, most of the doctors continue to write prescriptions on paper and fax them to the hospital’s pharmacy The system’s champions were caught completely off guard by the doctors’ reaction to the monitoring and standardization capabilities that the hospital sought EIT adoptions can give rise to several kinds of problems For example, EIT projects often become delayed as employees and managers negotiate the use of complements, such as new processes, that the technology has imposed Companies often settle for solutions that are more modest than originally planned and gain only some of the capabilities they had initially sought Firms may even abandon EIT adoptions altogether Even worse, some businesses don’t abandon an EIT project when they should, which wreaks havoc on performance For instance, in the late 1990s, both Hershey and Nike implemented technologies that were a poor fit with their business needs and processes As a result, the finances and share prices of both companies suffered All the successful EIT adoptions I’ve studied have used the same process for avoiding failure, and all the unsuccessful EIT adoptions I’ve studied have not used it: They have decided at the outset how key issues about configuration and other aspects of the adoption will be 148 raised and how they will be settled The most important participants in this task are not IT specialists or consultants but business leaders from the areas affected by the new technology The more areas there are, and the more their work is being changed, the more the adoption effort needs a seasoned leader A midlevel project manager doesn’t have the formal or informal authority required to make and implement these tough decisions At CVS, for example, the leader of the EIT project was responsible for both IT and store operations, so he had the authority to deploy the new process despite opposition from the chain’s pharmacists Similarly, despite Cisco’s decentralized culture, the company set The biggest mistake business leaders make is to underestimate resistance when they impose changes in the ways people work up a business process operating committee (BPOC) that consisted of six senior executives and the CIO The BPOC met throughout the EIT adoption effort to make policy and process decisions and to signal that Cisco wouldn’t back away from establishing the complements that the technology needed even though there was resistance within the organization Leaders who successfully implement EIT try to build consensus in the organization, but they’re also willing to push ahead without having everyone on board every step of the way Their decisive style runs counter to the usual advice about how executives should get users to accept and own new technologies For example, in 1999, when a mutual fund company set up a CRM system, it asked its salespeople to enter the information about their meetings with brokerages and institutional investors into the system The sales reps saw this, correctly, as an attempt to capture knowledge that existed only in their heads They refused to use the system, which delivered little value to anyone for years The situation changed with the arrival in 2001 of a new sales president, who demanded that reps enter information into the CRM system, threatened to withhold commission payments from those who didn’t, and instructed her direct reports to cross-check the sales reps’ entries against expense reports The president’s policy was met with stiff opposition, but the reps quickly realized that they had to accede to the demands of the new boss if they wanted to continue working for the company IT exploitation A business leader’s third IT-related responsibility is to extract the maximum benefit from technologies once they are in place Companies can best exploit FIT by fine-tuning organizational complements When HBS professors Marco Iansiti and Alan MacCormack studied the 1995 America’s Cup sailing competition, they found that all of the teams used simulation software to help them design their boat keels Most teams worked with universities and aerospace companies to build sophisticated simulations and used either mainframes or supercomputers to the work They were all beaten by Team New Zealand, which used less powerful workstations but brought the computers down to the docks where its boats were built The New Zealand team also encouraged experimentation and teamwork and pushed keel modification decisions down the organization Because the other teams didn’t all of those things, they couldn’t harness the full power of the FIT Employees exploit older NITs such as e-mail and instant messaging on their own, but business leaders have a role to play in exploiting newer technologies like blogs and wikis They can help sustain and increase the use of complements to make the technology continually more effective, primarily by guiding users Darren Leonard, a managing director in the global equity derivatives business at Dresdner Kleinwort, recalls harvard business review | hbr.org M a s t e r i n g t h e T h re e W o r l d s o f I n f o r m at i o n Te c h n o l o g y • T O O L K I T how he got his colleagues to use the company’s wiki: “First, if a wiki has no structure, it’s perceived not as an opportunity but as anarchy, and our people have no time for anarchy I went back to my initial pages and rewrote them to be a lot more directive For example, I made a page with the agenda for an upcoming meeting and asked people to add to it Second, wikis have to be clearly better than other ways of collaborating There have to be uses [for them] that demonstrate their power One of these uses came prior to a special senior management meeting where we could bring questions from our groups and get them answered I put up a page…asking my [team members] what questions they wanted me to ask on their behalf People used the page to post questions, edit them, and discuss which ones were the most important and why That really accelerated wiki use Finally, old habits are hard to break The tendency is for people to keep using e-mail because that’s what they know….I have to [tell them], ‘I’m not reading e-mails on this topic Use the wiki’ or ‘Everyone’s assignments are on this page – use the same page to report on progress.’” Interestingly, EIT’s exploitation is often easier than its adoption Since the work of imposing new processes is done by this stage, the manager’s task is to leverage already standardized data and work flows Few employees and managers have problems with that; they’re eager to get the most out of a system that was so much trouble to set up Exploiting EIT sometimes requires adding a new FIT on top of it In the mid-1990s, food services giant Sysco implemented an ERP system and data warehouse across its 80 regional businesses Sysco’s executives realized that because all of the companies were now recording orders in the same way, it was possible to analyze the standardized data to answer two questions: Which customers were most likely to defect? and What other products could it be selling to existing customers? Sysco invested in business intelligence software, which sits on top of the ERP system, extracts data from it, and facilitates november 2006 its analysis As a result, salespeople and managers gained something akin to a crystal ball that could provide two critical answers they needed Other companies have exploited enterprise systems by extending them to customers, suppliers, and joint-venture partners That expands businesses’ monitoring capabilities and provides levels of control that they could otherwise have achieved only by employing more people For instance, the $107 million Argentine grain producer Los Grobo uses an EIT system to track all the work done on its farms Los Grobo rents most of the fields, and contractors plant, spray, harvest, and oversee them The contractors enter their activities into Los Grobo’s system through a Web interface, which allows managers and specialists at the company’s Buenos Aires headquarters to make informed decisions about land management and yield improvement This platform has helped Los Grobo grow its sales at a rate of 40% per year since 2000 – without buying more land or hiring as many employees as it used to ••• For a resource to have an impact on a company’s competitive position, it must be valuable, rare, inimitable, and nonsubstitutable Oil wells and diamond mines meet the test; pencils and paper don’t What about IT? At first glance, it would seem that all three IT categories fail to meet these criteria Vendors offer a wide range of FIT, NIT, and EIT, so these technologies are not rare and seem to be highly imitable However, people often forget that while the software itself might not be any of those things, a successfully implemented system isn’t easy to replicate Because of the managerial challenges inherent in its implementation, IT meets all four criteria when a company succeeds in applying a technology and, consequently, gains valuable capabilities Reprint R0611J To order, see page 159 Letters to the Editor Special Issue on Sales The special issue on sales (July–August 2006) was very enlightening, but I wanted to point out a frequently overlooked area of sales performance improvement that can provide a compelling increase in revenue: presales operations On every sales team involved in a complex sales cycle, there are two roles, the sales rep and the support sales engineer (SE) SEs can compose up to 50% of and cost-effectively by focusing on presales operations A program designed to improve presales performance could make cost of sales and revenue generation more efficient through faster solution closure times, larger deal sizes, better-quality sales funnels, and higher win rates Phil Janus President and CTO TechSellEnts Boston THE WORLD’S GREATEST SALESMAN page 16 The Sales Learning Curve www hbr org PLUS: July August 2006 Best of SPECIAL DOUBLE ISSUE 58 68 HBR Benson P Ronald Shapiro S Edward Posner C Bu Dav d Ma rsk yer Herbert M Thomas Greenberg V Bonom a How Right Should the Customer Be? Erin Anderson and V ncent Onyemah Ending the War Between Sales and Marketing Philip Kotler Ne l Rackham and Suj Kr shnaswamy 80 Match Your Sales Force Structure to Your Business Life Cycle Andris A Zo tners Prabhakant Sinha and Sally E Lorimer 90 102 114 124 The HBR Interview Leading Change from the Top Line Fred Hassan of Schering Plough Better Sales Networks Tuba Üstüner and David Godes The Sales Learning Curve Mark Leslie and Charles A Holloway The Ultimately Accountable Job: Leading Today’s Sales Organization Jerome A Colle ti and Mary S F ss the sales force Despite SEs’ large numbers and the critical role they play in generating revenue, few if any traditional sales-force-automation vendors complement their sales methodologies with a specific presales process Lacking such a process, SEs invariably figure out their job on their own This causes abundant inefficiencies in operations and revenue generation Instead of trying to squeeze the last drops of improvement out of sales reps, companies can boost revenue quickly I enjoyed reading Mark Leslie and Charles A Holloway’s “The Sales Learning Curve”(July–August 2006), but I am a bit amused that the article implies this “learning curve” is almost a new idea Sales has always understood this concept The real test is whether the organization has the stomach to the right thing with quotas and plan numbers during times of learning and the patience to tolerate a ramping result without criticizing those who are delivering it Thomas J Miller Vice President, Sales and Marketing Trend Micro, North America Cupertino, California Leslie responds: Entrepreneurial managers and investors know that there is a lot of uncertainty as new products are brought to market The sales learning curve idea is one that resonates exceptionally well with their experience in this area The value of articulating the principle is that the community can then adopt a shared framework, which can inform management decisions as new products are brought to market In We welcome letters from all readers wishing to comment on articles in this issue Early responses have the best chance of being published Please be concise and include your title, company affiliation, location, and phone number E-mail us at hbr_letters@hbsp.harvard.edu; send faxes to 617-783-7493; or write to The Editor, Harvard Business Review, 60 Harvard Way, Boston, MA 02163 HBR reserves the right to solicit and edit letters and to republish letters as reprints november 2006 151 LETTERS TO THE EDITOR companies where both management and board members have bought into the sales learning curve idea, I have seen their view of quotas and compensation come into line with the recommendations in the article In an analogous situation, manufacturing learning curves have become widely accepted over the years and are built into manufacturers’ cost-per-unit planning Maybe someday the sales learning curve will enjoy the same acceptance in the go-to-market programs for new companies and products Leveraging the Psychology of the Salesperson As a career sales professional, I was delighted to see an issue dedicated to the subject of sales Then I read the cliché-ridden interview with G Clotaire Rapaille, “Leveraging the Psychology of the Salesperson”(July–August 2006) Printing Rapaille’s mention of the myth regarding Eskimos’ words for snow demonstrates laziness on the part of HBR Edward Pierpont President and CEO Triga USA Eugene, Oregon Rapaille responds: Thank you for your interest and your emotional response I am sure you are familiar with the differences between clichés, stereotypes, and archetypes My work for the past 30 years has been dedicated to archetypes I have written 14 books on this subject, most of them academic None of them generated the interest and the emotional reactions (including a lot of positive ones) that this article has But this was a journalistic article, not an academic one The Eskimo story, which has been mentioned by numerous authors, is just a question of form I could have made the same point using the Japanese language or the difference between French and German The cliché is the tip of the iceberg; what really matters is its deep unconscious structure If we disagree on the substance, then I think we can have a great 152 discussion about this subject, which obviously concerns you deeply The Wisdom of Deliberate Mistakes After reading Paul J.H Schoemaker and Robert E Gunther’s article,“The Wisdom of Deliberate Mistakes” (June 2006), I question how many companies would encourage their employees to make mistakes To err is human, yes, but to accept error is not company policy in a typical organization Even if a company did encourage deliberate mistakes, one wonders whether its executives would commit them, knowing full well that rather than the lessons learned from them, the mistakes themselves are what people tend to remember The authors are right: In business, “an executive’s reputation and rewards are typically based on the height of her successes, not on the depth of learning from failures.” In my view, the prerequisites for a deliberate mistake-committing culture are open and transparent management, a risk-taking mind-set on the part of the decision makers, and total avoidance of finger-pointing Just as success stories are shared across the organization, lessons from mistakes need to be disseminated S Viswanathan CEO John Fowler (India) Bangalore, India Schoemaker and Gunther respond: We fully agree with S Viswanathan that strong leadership is vital to creating an environment that encourages mistakes, and it is far too rare Without it, the organization will be too risk averse even to engage in experiments, let alone deliberate mistakes Former Johnson & Johnson CEO James Burke recalls how, early in his career, he was product director for several over-the-counter children’s medicines that were all failures When he was called into the chairman’s office, General Johnson told Burke that business is about making decisions, and you don’t make decisions without making mis- takes Just don’t make the same mistake twice A less-talented leader might have fired him on the spot Burke never forgot this lesson, and he went on to become a CEO widely admired for his courage He took a huge risk with the Tylenol recall, which was clearly a mistake in the short term, given the immediate costs, but proved wise in the long term Leaders need to engage in making deliberate mistakes and visibly reward others who fail for the right reasons or succeed by challenging a deeply held assumption that proved false Are Leaders Portable? The only modification I would suggest to Boris Groysberg, Andrew N McLean, and Nitin Nohria’s insightful article “Are Leaders Portable?”(May 2006) is to note that very technical, long-lived investment businesses like oil and gas exploration and production call for an additional, nonportable skill set: technical as well as strategic understanding and confidence When I worked in commodities trading and in other energy industry segments, such as power plants (of all forms), engineering services (including nuclear), pipelines, processing, and retail marketing, this was not the case I assume that the pharmaceutical and computer manufacturing businesses are similar to oil and gas exploration and production in this regard James T Hackett Chairman, President, and CEO Anadarko Petroleum The Woodlands, Texas Groysberg, McLean, and Nohria respond: We are grateful to James Hackett for his insightful letter He correctly notes that different industries can vary along a number of important dimensions One can add to his list other key dimensions, such as “thin”versus “thick”margins, regulatory intensity, competitive intensity, the power of producers relative to their suppliers and customers, product life cycles’ half-life, and intellectual property protections These are reasons why we emphasize the importance of industryharvard business review | hbr.org specific skills in our discussion of how portable a leader’s talents may be A careful analysis of similarities across industries that might, on the face of it, appear dissimilar – like oil and gas exploration and pharmaceuticals – may provide interesting opportunities for identifying leaders whose skills may be transferable to other industries Yet we would caution against being too quick to focus on apparent similarities For example, the regulatory and intellectual property environment that governs the oil and gas industry is quite different from the one that influences pharmaceuticals Taken to an extreme, our argument might seem to imply that leaders can very rarely be effective in an industry other than the one in which they are experienced We would not go so far We would simply encourage leaders and those who choose them to think hard, as Hackett clearly has, about how the structure of an industry influences the experiences and capabilities of leaders and the extent to which that frame of reference would be valuable in the situation the leader is considering or is being considered for Eager Sellers and Stony Buyers I applaud John T Gourville’s application of the psychology of gains and losses to new-product launches in “Eager Sellers and Stony Buyers: Understanding the Psychology of New-Product Adoption” (June 2006) However, I am concerned that the author’s conclusion – that consumers are three times likelier to overvalue an existing offering, while innovators are three times likelier to overvalue their new offering – may be an oversimplification Anomalies, such as the endowment effect and the status quo bias, have both a mean and a distribution Some customer segments, therefore, will overweight the benefits of an incumbent product by a factor of much less than three; that is, they will be more unhappy than the average consumer with the existing products The focus for innovators, then, should be on the distribution rather than the mean: How many november 2006 consumers would be more amenable than average to the introduction of an alternative product? Brad White Open up to great ideas COO (R)evolution Partners Atlanta What B2B Customers Really Expect In their April 2006 Forethought article, “What B2B Customers Really Expect,” Philip Kreindler and Gopal Rajguru suggest that sales managers should hire sales reps on the basis of their product or industry knowledge rather than their interpersonal skills I couldn’t disagree more Customers don’t really see what goes into being a high-performing sales rep They don’t see, or at least don’t appreciate, the political maneuvering, information gathering at various levels, and persistence needed to successfully conclude large sales They only notice when the salesperson didn’t know exactly which bolt went where Knowing all the details about a product is sometimes useful for making a sale; knowing how to handle the complexities of a team- or committee-driven sale is always critical The primary responsibility of any sales manager is to drive sales, not to create some utopian environment in which prospective customers can talk to a product or industry expert and educate themselves about an offering before they go and buy it from a sales expert (at another company) who knows how to get the documents signed If the authors want to argue that businesses should spend more of their training and development dollars on educating their salespeople about the products, services, and industries they represent, they’ll get no objection from me We owe it to our customers and our companies to put well-informed representatives at the forefront in our client dealings But it’s illogical to extrapolate that sentiment into believing sales managers should drastically alter their hiring criteria J.B Smith Sales Manager Cary, North Carolina “A pointed, powerful critique of the failings of our corporate and investment systems.” John C Bogle founder and former CEO, The Vanguard Group “We need grapple with the challenges posed by this provocative book.” Dr Josh Boger President and CEO of Vertex Pharmaceuticals “A fascinating book” The Wall Street Journal Available wherever books are sold, including: www.amazon.com/hbspfall06 www.HBSPress.org I N N OVAT I O N & C R E AT I V I T Y COV E R STO R Y 72 | Innovation: The Classic Traps Rosabeth Moss Kanter Executive Summaries November 2006 Customers as Wild Cards page 92 Fixing City Schools page 55 www hbr org November 2006 72 Innovation The Classic Traps Rosabeth Moss Kanter 84 Manag ng Multicultural Teams Jeanne Brett Kr stin Behfar and Mary C Kern 92 Breaking the Trade Off Between Efficiency and Service Frances X Frei 106 Fac ng Ambiguous Threats Michael A Roberto Richard M J Bohmer and Amy C Edmondson 114 Disaster Relief, Inc Anisya Thomas and Lynn Fr tz 22 Forethought 39 HBR Case Study The Reign of Zero Tolerance Ben Gerson 55 Big Picture How to Manage Urban School Districts Stacey Childress Richard Elmore and A len Grossman 130 Best Practice How Well Run Boards Make Decis ons DON’T GET Michael Useem page 72 141 Tool Kit Master ng the Three Worlds of Information Technology Andrew McAfee 154 Executive Summaries 160 Panel Discussion “ The quest for innovation is doomed unless the managers who seek it take time to learn from the past – page 72 154 ” Never a fad, but always in or out of fashion, innovation gets rediscovered as a growth enabler every half dozen years Too often, though, grand declarations about innovation are followed by mediocre execution that produces anemic results, and innovation groups are quietly disbanded in cost-cutting drives Each managerial generation embarks on the same enthusiastic quest for the next new thing And each generation faces the same vexing challenges – most of which stem from the tensions between protecting existing revenue streams critical to current success and supporting new concepts that may be crucial to future success In this article, Harvard Business School professor Rosabeth Moss Kanter reflects on the four major waves of innovation enthusiasm she’s observed over the past 25 years She describes the classic mistakes companies make in innovation strategy, process, structure, and skills assessment, illustrating her points with a plethora of real-world examples – including AT&T Worldnet, Timberland, and Ocean Spray A typical strategic blunder is when managers set their hurdles too high or limit the scope of their innovation efforts Quaker Oats, for instance, was so busy in the 1990s making minor tweaks to its product formulas that it missed larger opportunities in distribution A common process mistake is when managers strangle innovation efforts with the same rigid planning, budgeting, and reviewing approaches they use in their existing businesses – thereby discouraging people from adapting as circumstances warrant Companies must be careful how they structure fledgling entities alongside existing ones, Kanter says, to avoid a clash of cultures and agendas – which Arrow Electronics experienced in its attempts to create an online venture Finally, companies commonly undervalue and underinvest in the human side of innovation – for instance, promoting individuals out of innovation teams long before their efforts can pay off Kanter offers practical advice for avoiding these traps Reprint R0611C; HBR OnPoint 1497 harvard business review | hbr.org IDEAS & TRENDS HUMAN RESOURCES FORETHOUGHT H B R C A S E ST U D Y 22 | Hedging Political Risk in China 39 | The Reign of Zero Tolerance Global companies that create and institutionalize a systematic framework for assessing risk will be the ones best positioned to capitalize on China’s enormous promise Reprint F0611A Pants on Fire A particularly incendiary example of the law of unintended consequences Reprint F0611B Market Lunacy Rigorous research shows a correlation between stock-market performance and the phases of the moon Reprint F0611C Capturing the Ricochet Economy Immigrants in developed countries who send money to and buy goods for relatives in the developing world are creating a vast new international market Reprint F0611D Do Customer Communities Pay Off? New research says they do, in spades, especially for online businesses Reprint F0611E High Fidelity Ivor Tiefenbrun, head of the high-end audio equipment maker Linn Products, explains why the assembly line isn’t always the most efficient way to manufacture Reprint F0611F A Case for Discount Discipline Few companies even record their discounting practices, much less manage them Here’s how to discounts right Reprint F0611G The Cost of Knowledge Future investments in knowledge management should focus less on enhancing systems that track down information and more on helping employees use what they’ve found Reprint F0611H Book Reviews Featuring Leadership Divided: What Emerging Leaders Need and What You Might Be Missing, by Ron A Carucci november 2006 Ben Gerson Simon Pemberton, a materials chemist at Applied Devices, is escorted by security guards to the company parking lot, where an HR manager tells him he’s fired Until that moment, things seemed to be going well Simon had known, of course, about AD’s zero-tolerance program, but it hadn’t occurred to him that he’d violated it – particularly since his unauthorized e-mailing and Internet use were meant to serve the goal of scientific inquiry Don Hardee, the CEO, strongly believes that deviations from a defined standard of behavior shouldn’t be tolerated at AD The dangers they pose to employees’ health, safety, and morale, not to mention the company’s productivity and reputation, are too great Shirlee North, the head of HR, agrees Ever since the jilted husband of an employee burst into AD’s lobby waving a pistol, workers have been clamoring for security, and the zero-tolerance policies provide that Initially, the program covered only weapon and drug possession, but the list of offenses warranting termination has grown considerably When Shirlee’s second in command argues that such policies are unworkable and unjust, Shirlee points out that the company intervenes only when the action is clearly prohibited, the harm actual or imminent, and the evidence unambiguous Are Don and Shirlee right to stand firm, or should Applied Devices modify its program? Commenting on this fictional case study are Janet Parker, the senior vice president of human resources for AmSouth Bank; Eugene Volokh, a professor at UCLA School of Law; Jean Halloran, the senior vice president of human resources at Agilent Technologies; and Michael G Cherkasky, the president and CEO of Marsh & McLennan Reprint R0611A Reprint Case only R0611X Reprint Commentary only R0611Z N O N P RO F I T M A N AG E M E N T 55 | How to Manage Urban TEAMS O P E R AT I O N S School Districts 84 | Managing Multicultural Teams 92 | Breaking the Trade-Off Between Efficiency and Service Stacey Childress, Richard Elmore, and Allen Grossman Jeanne Brett, Kristin Behfar, and Mary C Kern Frances X Frei One of the biggest management challenges anywhere is how to improve student performance in urban public schools in the United States There has been no shortage of proposed solutions: Find great principals and give them power; create competitive markets with charters, vouchers, and choice; establish small schools to ensure that students receive sufficient attention – the list goes on Although these approaches have created positive changes in individual schools, they have failed to produce a single highperforming urban school system In this article, the authors, who are members of Harvard University’s Public Education Leadership Project (PELP), explain why One reason, they say, is that educators, researchers, and policy makers see the district office, which oversees all the schools in a district, as part of the problem rather than a crucial part of the solution – and this is a mistake The district office plays an important role in developing strategies, identifying and spreading best practices, developing leadership capabilities at all levels, building information systems to monitor student improvement, and holding people accountable for results The authors propose a holistic framework that district leaders can use to develop an improvement strategy and build coherent organizations to implement it The framework is based on three beliefs First, school systems need their own management models; they cannot simply import them from the business world Second,“the customer” is the student; therefore, urban districts need to focus on improving teaching and learning in every classroom at every school Third, district leaders must design their organizations so that all the components – culture, systems and structures, resources, and mechanisms for managing stakeholders and the external environment – reinforce one another and support the implementation of the strategy across schools Reprint R0611B Multicultural teams offer a number of advantages to international firms, including deep knowledge of different product markets, culturally sensitive customer service, and 24-hour work rotations But those advantages may be outweighed by problems stemming from cultural differences, which can seriously impair the effectiveness of a team or even bring it to a stalemate How can managers best cope with culture-based challenges? The authors conducted in-depth interviews with managers and members of multicultural teams from all over the world Drawing on their extensive research on dispute resolution and teamwork and those interviews, they identify four problem categories that can create barriers to a team’s success: direct versus indirect communication, trouble with accents and fluency, differing attitudes toward hierarchy and authority, and conflicting norms for decision making If a manager – or a team member – can pinpoint the root cause of the problem, he or she is likelier to select an appropriate strategy for solving it The most successful teams and managers, the authors found, dealt with multicultural challenges in one of four ways: adaptation (acknowledging cultural gaps openly and working around them), structural intervention (changing the shape or makeup of the team), managerial intervention (setting norms early or bringing in a higher-level manager), and exit (removing a team member when other options have failed) Which strategy is best depends on the particular circumstances – and each has potential complications In general, though, managers who intervene early and set norms; teams and managers who try to engage everyone on the team; and teams that can see challenges as stemming from culture, not personality, succeed in solving culture-based problems with good humor and creativity They are the likeliest to harvest the benefits inherent in multicultural teams Reprint R0611D 156 For manufacturers, customers are the open wallets at the end of the supply chain But for most service businesses, they are key inputs to the production process Customers introduce tremendous variability to that process, but they also complain about any lack of consistency and don’t care about the company’s profit agenda Managing customer-introduced variability, the author argues, is a central challenge for service companies The first step is to diagnose which type of variability is causing mischief: Customers may arrive at different times, request different kinds of service, possess different capabilities, make varying degrees of effort, and have different personal preferences Should companies accommodate variability or reduce it? Accommodation often involves asking employees to compensate for the variations among customers – a potentially costly solution Reduction often means offering a limited menu of options, which may drive customers away Some companies have learned to deal with customer-introduced variability without damaging either their operating environments or customers’ service experiences Starbucks, for example, handles capability variability among its customers by teaching them the correct ordering protocol Dell deals with arrival and request variability in its high-end server business by outsourcing customer service while staying in close touch with customers to discuss their needs and assess their experiences with third-party providers The effective management of variability often requires a company to influence customers’ behavior Managers attempting that kind of intervention can follow a three-step process: diagnosing the behavioral problem, designing an operating role for customers that creates new value for both parties, and testing and refining approaches for influencing behavior Reprint R0611E; HBR OnPoint 1498; OnPoint collection “Serve Your Customers – Efficiently and Profitably” 1500 harvard business review | hbr.org O RG A N I Z AT I O N & C U LT U R E 106 | Facing Ambiguous Threats Michael A Roberto, Richard M.J Bohmer, and Amy C Edmondson On February 1, 2003, the world watched in horror as the Columbia space shuttle broke apart while reentering the earth’s atmosphere, killing all seven astronauts Some have argued that NASA’s failure to respond with appropriate intensity to the so-called foam strike that led to the accident was evidence of irresponsible or incompetent management The authors’ research, however, suggests that NASA was exhibiting a natural, albeit unfortunate, pattern of behavior common in many organizations The foam strike is a prime example of what the authors call an ambiguous threat – a signal that may or may not portend future harm Ambiguous threats differ from threats with obvious causes – say, a fire in the building – for which the response is clear They also differ from unmistakable threats that may lack straightforward response paths (such as the frightening oxygen-tank explosion aboard Apollo 13) However, when the warning sign is ambiguous and the threat’s potential effect is unclear, managers may choose to ignore or discount the risk Such an approach can be catastrophic Firms that a good job of dealing with ambiguous threats not improvise during a crisis; rather, they apply a rigorous set of detection and response capabilities that they have developed and practiced beforehand In this article, the authors outline how to put such capabilities in place long before a crisis strikes First, companies need to hone their teamwork and rapid problem-solving skills through practice Second, they must learn to recognize weak signals, amplify the threat, and encourage employees to ask disconcerting “what if” questions in a safe environment Finally, they should explore possible responses to threats through quick, low-cost experimentation Reprint R0611F; HBR OnPoint 1499 november 2006 CO R P O R AT E S O C I A L RESPONSIBILITY 114 | Disaster Relief, Inc Anisya Thomas and Lynn Fritz When disaster strikes, many corporations respond generously After the 2004 tsunami, for instance, U.S firms alone contributed more than half a billion dollars in cash and in-kind donations But a host of reactive efforts don’t produce the best results – and may even get in the way To make the most of their humanitarian efforts, companies need to address two fundamental questions: What kind of aid we want to contribute – philanthropic (money and in-kind donations) or integrative (backroom, operational assistance)? And how we want to contribute it – by working one-on-one with a single agency or by joining a consortium? The permutations of those two decisions lead to four different approaches, each with its own strengths and challenges Single-company philanthropic partnerships work well when there’s a good match between what a company wants to contribute and what an agency needs, as with Coca-Cola’s donations of water to the Red Cross More diffuse, but also potentially more effective, are the benefits of joining a multicompany philanthropic partnership, which enables the resources of many firms to be matched to the missions of many agencies More difficult to establish but more fundamental in its impact is a single-company integrative partnership, in which a corporation works to improve the way an aid agency operates, as the logistics giant TNT has done to help the distribution efforts of the World Food Programme And most difficult to implement – but potentially most effective – is a multicompany integrative partnership, which brings to bear the collective best practices of many companies to improve the response capabilities of multiple agencies It’s easy to see why the image of a relief worker carrying a sack of grain delivers an emotional wallop, but the behind-thescenes work of process enhancement is just as crucial to humanitarian efforts The sooner executives realize this, the better positioned the world will be to respond to global disasters Reprint R0611G 158 G OV E R N A N C E 130 | How Well-Run Boards Make Decisions Michael Useem In the aftermath of seismic debacles like those that toppled Enron and WorldCom, corporate boards have been shaken up and made over More directors are independent these days, for instance, and corporations now disclose directors’ salaries and committee members’ names Research shows that most of the changes are having a positive effect on companies’ performance They are primarily structural, though, and don’t go to the heart of a board’s work: making the choices that shape a firm’s future Which decisions boards own and how those calls are made are largely hidden from the public As a result, boards are often unable to learn from the best governance practices of their counterparts at other companies This article pulls back the curtain and provides an inside look Drawing on interviews with board members and executives at 31 companies, along with a close examination of three boardroom decisions, the author identifies several formal processes that can help companies improve their decision making: creating calendars that specify when the board and the standing committees will consider key items; drafting charters that define the decisions committees are responsible for; and developing decision protocols that divvy up responsibilities between directors and executives The author also identifies a number of informal decision-making principles: Items that are strategically significant and touch on the firm’s core values should go to the board Large decisions should be divided into small pieces, so the board can devote sufficient attention to each one Directors must remain vigilant to ensure that their decisions are effectively implemented The CEO and either the nonexecutive chair or the lead director should engage in ongoing dialogue regarding which decisions to take to the full board and when And directors should challenge assumptions before making yes-or-no decisions on management proposals Reprint R0611H I N F O R M AT I O N T E C H N O LO G Y 141 | Mastering the Three Worlds of Information Technology Andrew McAfee The information age has brought with it a host of new technologies – and an overabundance of choices Managers are hardpressed to figure out what all those innovations do, let alone which ones to adopt and how to implement them Furthermore, many so-called advancements haven’t lived up to expectations: Frustration, delays, and even outright failures tempt many executives to avoid dealing with IT altogether But those who turn away are selling their companies short Executives have three critical responsibilities when it comes to IT: They must help choose technologies, using an inside-out approach that keeps the true needs of the business in mind; smooth the adoption of those technologies, taking into account that they may encounter strong resistance; and encourage their exploitation, by leveraging already standardized data and work flows What’s most important, though, is that they look beyond the individual IT projects they select to the broader picture of how IT s likely to affect the organization Information technology can be classified into three types, each of which provides companies with a particular level of change Function IT encompasses technologies – such as spreadsheet and wordprocessing applications – that streamline individual tasks Network IT includes capabilities like e-mail, instant messaging, and blogs and helps people communicate with one another Enterprise IT brings with it approaches such as customer resource management and supply chain management and lets companies re-create interactions between groups of workers or with business partners Different types of technology bring about different types of organizational change, and managers should tailor their own roles accordingly Categorizing IT in this manner can help leaders determine which technologies to invest in and how they can assist organizations in making the most of them Reprint R0611J harvard business review | hbr.org Re p r i n t s a n d S u b s c r i p t i o n s Subscriber Online Access Article Reprints and Permissions Harvard Business Review subscribers can access the online version of HBR at www.hbr.org Subscribers visiting the site for the first time will need to verify some subscription information such as their subscriber ID number, which can be found through the “look up” function on the Web page Reprint numbers appear at the ends of articles and executive summaries Contact our customer service team to order reprints or to obtain permission to copy, quote, or translate Harvard Business Review articles Reprints are available in hard copy, as electronic downloads with permission to print, and in customized versions Subscription Services For information or to order Subscribe online: www.hbr.org Orders, inquiries, and address changes U.S and Canada Phone: 800-274-3214 Fax: 813-354-3467 E-mail: subsvcs@HBR.customersvc.com Web site: www.hbrcustomerservice.com Address: Harvard Business Review P.O Box 62270 Tampa, FL 33662-2701 Overseas and Mexico Phone: 31-20-4874465 Fax: 31-20-4874412 E-mail: hbr.intl@customersvc.com Web site: www.hbr.org/customerservice Address: Harvard Business Review P.O Box 20501 1001 NM Amsterdam The Netherlands Rates per year U.S., $119; Canada, U.S.$139 International, U.S.$165; Mexico, U.S.$139 Payments accepted Visa, MasterCard, American Express; checks in U.S dollars payable to Harvard Business Review Bills and other receipts may be issued Customer Service Department Harvard Business School Publishing Corporation 60 Harvard Way Boston, MA 02163 Phone: 617-783-7500 U.S and Canada: 800-988-0886 (8 AM – PM ET weekdays) Fax: 617-783-7555 E-mail: custserv@hbsp.harvard.edu Reprint prices 1–9 copies $6.00 each 10–49 $5.50 50–79 $5.00 80–99 $4.50 100–499 $4.00 (Minimum order, $10 Discounts apply to multiple copies of the same article.) Harvard Business Review OnPoint Articles and Collections Many articles are available in enhanced Harvard Business Review OnPoint editions, which include a one-page synopsis highlighting key ideas and company examples, the full text of the article, and an annotated bibliography Harvard Business Review OnPoint numbers are listed at the ends of articles and executive summaries Harvard Business Review OnPoint collections include three OnPoint articles with a onepage overview comparing the articles’ perspectives on a topic Collection numbers appear at the ends of executive summaries Harvard Business Review OnPoint prices Articles 1–9 copies $7.00 each 10–49 $6.50 50–79 $6.00 80–99 $5.50 100–499 $5.00 (Minimum order, $10 Discounts apply to multiple copies of the same article.) Collections 1–9 copies 10–49 50–99 100–499 $16.95 each $13.56 $11.86 $10.17 Custom and Quantity Orders For quantity estimates or quotes on customized reprints and Harvard Business Review OnPoint products, call Rich Gravelin at 617-783-7626, fax him at 617-783-7658, or e-mail him at rgravelin@hbsp.harvard.edu For subscriptions, reprints, and Harvard Business Review OnPoint orders, go to www.hbr.org Library Access Libraries offer online access to current and back issues of Harvard Business Review through EBSCO host databases november 2006 Postmaster: Send domestic address changes, orders, and inquiries to: Harvard Business Review, Subscription Service, P.O Box 62270, Tampa, FL 33662 GST Registration No 124738345 Periodical postage paid at Boston, Massachusetts, and additional mailing offices Printed in the U.S.A Harvard Business Review (ISSN 0017-8012; USPS 0236-520), published monthly (with a combined July–August issue) for professional managers, is an education program of the Harvard Business School, Harvard University; Jay O Light, dean Published by Harvard Business School Publishing Corporation, 60 Harvard Way, Boston, MA 02163 Copyright © 2006 Harvard Business School Publishing Corporation All rights reserved Volume 84, Number 11 159 PA N E L D I S C U S S I O N by Don Moyer Homo Uneconomicus Traditional economics is built on the notion of Homo economicus, or economic man – the rational, well-informed agent coolly pursuing his own self-interest But no one you know actually makes decisions like that In the field of behavioral economics, Daniel Kahneman and the late Amos Tversky have explored the recurring biases that influence people’s economic choices They’ve found many peculiar patterns – from a sometimes unjustified preference for the status quo to overconfidence in one’s ability to predict outcomes In his article “Mental Accounting Matters” (Journal of Behavioral Decision Making, 1999), Richard Thaler distinguishes between the value a buyer sees in a product or service and the value he sees in the deal.“Some goods are purchased 160 primarily because they are especially good deals,” he writes “Most of us have some rarely worn items in our closets that are testimony to this phenomenon.” Although they may seem irrational, these biases often have a hidden utility because they can serve as effective shortcuts As Thaler says,“Mental accounting procedures have evolved to economize on time and thinking costs…”– that is, they can sometimes yield a decent economic decision without a full-fledged economic analysis But whatever their utility, they’re not going to go away – at least not so long as humans are humans Don Moyer can be reached at dmoyer@thoughtformdesign.com harvard business review | hbr.org Know your signs of innovation INNOVATE MORE There’s no single road to innovation, but there are signs you’re headed in the right direction Leading innovators get to market faster, optimize resources and achieve globalization.They’re also four times more likely to use product lifecycle management (PLM) software to plan, define, build and support their products UGS’ family of PLM solutions helps businesses establish Global Innovation Networks that transform their process of innovation Find out how to drive your business to greater innovation and accelerate your growth MOVE FASTER GET OPTIMIZED GO GLOBAL © Copyright 2006 UGS Corp All rights reserved UGS,Transforming the process of innovation and the Signs of Innovation trade dress are trademarks or registered trademarks of UGS Corp or its subsidiaries in the United States and in other countries Take the UGS Innovation Driver’s Test at www.ugs.com/innovate ... the authors’ and not necessarily those of Harvard Business Review, Harvard Business School, or Harvard University Authors may have consulting or other business relationships with the companies... editorial offices 60 Harvard Way, Boston, MA 02163 617-783-7410; fax: 617-783-7493 www.harvardbusinessonline.org Volume 84, Number 11 November 2006 Printed in the U.S.A NEW YORK November 18 The New... our Web site at www.hbr.org; write to The Editor, Harvard Business Review, 60 Harvard Way, Boston, MA 02163; or send e-mail to hbr_editorial@hbsp .harvard. edu Unsolicited manuscripts will be returned
- Xem thêm -

Xem thêm: Harvard business review 2006 11 november , Harvard business review 2006 11 november

Gợi ý tài liệu liên quan cho bạn

Nhận lời giải ngay chưa đến 10 phút Đăng bài tập ngay