Harvard business review 2010 june

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.e:::t:I HBR ORG JUNE 2010 ~ 40 The Big Idea Start an Entrepreneurial Revolut ion • Daniel J Isenberg 94 Sust ainability Strategies for Gree n Product Development Gregory Unruh a nd Richard Etten son • 114 Managing Yourself Turn the Job You Have Into t he Job You Want Amy Wrzesniewski, Ju stin M Berg, a nd Jane E Dutton , I il l ANAGING CHANGE HOW TO DO IT WHEN TO DO IT PAGE 53 Smarter business for a Smarter Planet: Over 1,500 CEOs are tackling complexity with creativity See how they're getting it done More volatile and complex than ever before, the business climate has forever changed IBM found that 79% of CEOs expect increased global complexity, yet only 49% feel prepared But forward-thinking CEOs are actually finding ways to capitalize on this The findings are in the 2010 IBM Global CEO Study, the largest study of its kind From tace-to-tace conversations with over 1,500 CEOs-from companies of all sizesacross 60 countries and 33 industries, IBM identifies four types of organizations and distinguishes what successful ones have in common Not only does the study give you access to executive-level thinking, it serves as a roadrnap for smarter, more creative leadership A smarter business needs smarter thinking Let's build a smarter planet Get Capitalizing on Complexity: Insights from the Global Chief Executive Officer Study at ibm.com/ceostudy7 One in a series of C-suite studies www.WorldMags.net & www.Journal-Plaza.net (1M, the (1M ~, tJ'no:rn ~ FInl iI'Il the pInllX1+EN TO 00 IT • Aboutthe spotl1lht Artkt Over the past 25years Antony Gormley has revitalized the human image in sculptu re through a radical investigation of the body asa place of memory and transformation, using his OWll body as subject tool and material Since 1990 he has expan ded his concern with the human condition to explore the collective body a nd t he relationship between self and other in large-scale installations His work has been exh ibited throughout the UKand internationally Gormley was awarded t he Turner Prize in 1994 and the South Bank Prize for Visual Art in 1999 .~~ Antony Gormle y Doma in 'I~l d, 4.76 mm square st ainlO'SS steel bars I Varioos siles' 287 eleme nts, derived from molds of loca l inhabitants of Newcas tle · Gatl/'Sr>ead ux aged 2.5-84 years Installation vjew- BALTIC centre for Contemporary Art, Gateshead Commio;sion for BALTIC centre for Contemporary An, Gateshead 54 The Decision-Driven Organization Most CEOs t hink fi nancial performance is tied to company structure, so ifyou want to increase value, you have to reorganize, But in t rut h, most reorgs fall flat , The ones that work best a re built around decisions: Firms that make them faster and better than riva ls get ahead Marcia W Blenko, Michael C Mankins, and Paul Rogers 64 The productivity Paradox: How sony pictures Gets More Out of people by Demanding Less Companies often burn employees out by expect ing them to run like machines- always on and at full t hrottle Sony Pictures , however, has found that allowing staffers to take t ime out to renew th eir energy boosts t heir perfor mance-and generates impressive fi nancial resu lts Tony Schwartz 70 Change for Change's Sake Just as seemingly fit people can have high choleste rol, well-pe rforming companies can suffer from a buildup of inflexible networks, unquestioned routines, and overly powe rful units A corporate "cholesterol test " can reveal how much and what kind of cha nge to consider Freek Vermeulen, Phanish Puranam, and Ranjay Gulati HBR.ORG Ma RE aN STRATEGIES FOR A CHANGI NG WORLO Practical advice to hel p you energize your company, your team and yourself hbr org/strategies· cha nging·world June 2010 Harvard Business Review www.WorldMags.net & www.Journal-Plaza.net HBR.ORG Feat ures June 2010 THE BIG IDEA How to Start an Entrepreneurial Revolution As the leaders of Rwanda, Israel, and Chile have seen, entrepreneurship can transform an economy But creating a breeding - ground for new ventures isn't simple; you need to get many elements right Here's what we know works Daniel J Isenberg • Are You a High Potential? 78 High-pot ent ia l managers have distinguishing characteristics and behaviors that companies rout ine ly recognize l earn what those qualities are- and what you can to exhibit them-so that you make the list Douglas A Ready, Jay A Conger, and • Linda A Hill 86 The Coherence Premium Rarely is a com pany disci plined enough to focus on "what we better t han anyone" in making every decision across all its businesses Rarer still is the company that has aligned its different iating inte rnal capabilities with the right external market posit ion The firms that are "coherent," and they reap a reward Paul Leinwand and Cesare Mainardi '- //4 ey respondents top teams ss than 10% of me developing -potent ial leaders Growing Green: Three Smart Paths to Developing Sustainable Products Most executives believe that sustainability is a revenue driver, but t hey're not sure how to make it work for the m Here are three broad strategies for aligning companies' gree n prod uct goals with thei r capabilities Gregol}' Unruh and Richard Ettenson VINEET NAYAR On inverting the leadership pyramid blogs hbr.org/nayar 103 THE GLOBE 94 The China Rules A practical guide t o leadi ng a company in the world's t hird-largest economy Lynn S Paine 110 HOW I DID IT A Maverick CED Explains How He Persuaded His Team to Leap into the Future The CEO of HCl recnnctcgree wanted to tu rn the organizat ion ups ide down -so he put his employees before his customers Vineet Nay ar June 2010 www.WorldMags.net & www.Journal-Plaza.net Most of what expat CEDs learn inChina hasn't made its way into management books or classrooms EXPERIEN CE Your job comprises a set of building blocks that you can reconfigure to create more engaging and fulfilling experiences at work -T pressures and other constraints may compel you to see you r job as a fixed list ofduties Or you may be afraid ofgetting mired in office politics, stepping on other people's toes simply because you 're unhappy at work lob crafting requires -and ult imately engenders-a different mindset, however: Yourjob comprises a set of building blocks that you can reconfigure to create more engaging an d fulfilling experiences at work Diagramming Your Job Backat the multinational foods company, Fatima is st ill frustrated What would happen if she engaged in job crafting? She's already been reflecting on her dissatisfaction, albeit in no systematic way lob crafting would give her the means to diagram a more ideal-but still realistic-version of her job, one bett er aligned with her motives, strengths, and passions First, she looks at the present makeup of her job In he r "before diagram," Fatima uses a series of squares to represent the tasks that her job comprises, with larger squares representing time-intensive tasks, an d smaller squares tasks to which she devotes less time (See the exhibit "Fat ima's Before Diagram.") She notices that she's spending lots of time monitoring her team's performance, answering questions, and directing market research She's spending a fair number of hours setting budgets, writing reports, and running meetings And she's spending very little time on critical tas ks such as professional development and designing marketing strategies These tasks are in the smallest squares Lookingat the full sweep of her job in this way gives Fatima a clear se nse -truly at a glance-ofexactly where she is devoting her time and energy Next, she concentrates on changes that wou ld increase her engagement at work This "after diagram" will serve as the visual plan for her future (See the exh ibit "Fatima's After Diagram.") She begins by identifying her motives, st rengths, and pass ions -three important considerations in de termining which aspects of her job will keep he r engaged and inspi re higher performance Each will be represented by a different color Her main motives, for instance, are cultivating meaningful relationshi ps and achiev ing personal growt h She plugs these into green ovals Fatima takes stock of her core strengths: one-on-one communica· tion an d technical savvy.These appear in the blue ovals And she highlights her passions: teaching others and using and learni ng new technology-entered in orange ovals Then, using her before diagram as a frame ofreference, Fatima creates a new set of task blocks whose size represents a better allocation of her time, energy, and attention To take advantage of how well "designing marketing strategies" suits her motives, strengths, and passions, she not only moves it from a small to a med ium block but also add "use social media" to this newly expanded task To incor porate even more social media into her job, she adds a small task block to represen t "teaching colleagues to use social med ia." And for those tasks that not fit her as well, she makes a note to adapt them (for instance, using "professional deve lopment" to "improve public speaking skills") She draws rectangles around groups of tasks that she thinks serve a com mon purpose or role For exa mple, she identifies "building and using socia l media expertise" as one role Framing her roles " Harvard Business Review June 2.010 www.WorldMags.net & www.Journal-Plaza.net in this way is meaningful to her because it taps into her key strengths and passions Byrea rranging the sha pes, Fatima gains a greater appreciation for how the elements of her job come together A New Outlook Fatima then moves to the final step of the exercise, in which she considers the challenges she will probably face in making her new job configuration a reality She would like to use her technical savvy to help other marketing teams and departments take advantage of social media, but she is concerned about encroaching on their work or insulting the m by offering her expertise With her after diagram in han d , Fatima takes anot he r look at the list of projects sitting in her in-box and begins to consider how to incorporate social media into them Tasks She identifies two possibilities: a new snack food aimed at teens an d a cross-company initiative to improve commu nication between Marketing and Sales Fatima thinks a campaign involving Facebook and Twitter could help build buzz around the snack food - and reveal to the organization the benefi ts and limitations ofreaching out to a new demographic And by launching a blog, Fatima and her colleagues in Marketing could track initiatives and com munications from members of the Sales division Relationships Fatima recognizes, ofcourse, that she'll need support to establis h the technological presence she envisions for these two projects She must build or refocus her ties to ot he rs in the company in order to learn about the best ways to move forward She recalls that Steve Porter is constantly fiddling with the latest gadgets in weekly interdepartmental meetings an d that he is known for the clever ways he uses social media to keep salespeople in the loop She decides to approach him for help Within a month, HBR.ORG Steve's and her own employees' su pport has unleashed a wave of interest in and knowledge abo ut how to put technology closer to the hea rt ofthe division's wor k Her initiatives have become testing grounds for using social media to accomplish ot her important goals Fatima has been recognized as the driver ofthese programs and finds that managers from ot her divisions are coming to her to learn more about how they might use her ideas in their own projects - all ofwhich is encouraging her to be bolder in introducing new ideas and tec hnology Perceptions Rather than thinking of he r work as a daily slog, she begins to see herself as an innovator at the intersection of marketing and tech nology And she views herselfas an entrepreneurial pioneer unafraid ofexperiments that could bridge those worlds She also, to her pleasure, recog nizes that rather than taking her away from he r prescribed goals, her passion for deploying technology in pursuit ofthese objectives gives her a more fulfilling way to approach the m to explore what interests her most abo ut the role ofthe operat ions group in that region She sees the gro up as becoming more critical for cost savings as economic recovery drags on- a ma jor focus for the CEO, as well Ivan spots an opportunity He can build on what is already a good relationship by directing more of his efforts to special projects that will save money in that region Sensing a chance to craft his job, Ivan focuses more and more ofhis time and energy on this aspect of his work, which wins him exposure and credit as the projects he takes on crea te sign ificant savings for the company As a bonu s, he To win support for your job crafting, focus on creating value for others, building trust, and identifying the people who will accommodate you Ivan's Story In anothe r company, in another pa rt of the world Ivan Carter is caught betw een a rock and a hard place But the source of angst for this 45-year-old operatio ns manager at a global office products com pany is qu ite di fferent from Fatima's He's a solid Bplayer w ith a dedicated and successful team Ivan leads a gro up that serves Latin America and he reports to both the head ofglobal opera tions and the head of the Latin America gro up His relationship with the latter is great, but the operations head is often no nresponsive or even hostile when Ivan needs information or support All his efforts to strengt he n the relatio nship have been met with silence He likes his job, but he often leaves the office with his stomach in knots Ivan knows he ca n either accept the reality ofhis toxic relationshi p with the head of operations or change his situation So, during his nex t phone meeting with the head of Latin America, he pushes a bit spends more time interacting with the Latin Ame rica head while meeting his responsibilities to the opera tions head without having to interact wit h him as much After several months, Ivan learns that the Latin Americ a head has recommended him highly to others in the C-suite Fatima focused first on tasks and then on relationships Bycentering his job crafting primarily on relationships (the ones that energized rather the n depleted him), Ivan was able to figure out how to change his job for the better dis tribu ting tasks in complementary ways After all, one person's dreaded assignment may be anot he r's favorite To win others' support for your job crafting, these three things: o Focus on deploying an individual or organizational strengt h that will create value for others For instance, Fatima position ed her work to enhance what other teams were doing while Ivan found a way to help meet the objectives of the Latin America group o Build trust with ot hers (typically your supervisor) Fatima assured her supervisor that she would n't let tasks slide and that some ofher newer tasks could become central to the orga nization Ivan was careful to align his efforts wit h his role, building trust with the head of the Latin America group o Direct your job-crafting efforts toward the people who are most likely to accommodate you Fatima reached out to Steve Porter because he was interested in her pla ns to bring technology into the heart of her job tasks Ivan realized that his time wo uld be wasted pursuing a toxic relationship and instead focused on a more prorrustng one JOB CRAFTING is a simple visual framework that ca n he lp you make meaningful and lasting changes in your job-in good economies and bad But it all has to start with taking a step back from the daily grind and realizing that you actually have the ability to reconfigure the elements of your work The bottom line? Make su re that you are shaping your job, not letting your job shape you HBR Re pri nt Rl006K The Limits of Job Crafting Not all job crafting is bene ficial It can be stressful ifas a result you take on too much or alter tasks without understanding your ma nager's goals Since job crafting is something you can on your own, it's important to be open about the process Your manager may even be able to help you identify opportunities for re- " Amy Wrzesniewskl (amy.wrzesniews ki@ ~ yale.edu) is an associate professor of organizational behavior at the Yale School of Ma nagement Justin M Be rg (bergj@wharton upenn.edu) is a doctoral student at the university of Pennsylvan ia'S Wharton School Jane E Dutton (janedut@umicll.edu)istlieRobert l Kahn Distinguished Un iversity Professor of Business Administration and Psychology at the University of Michigan's Ross School of Business For more on job crafting, visit www.jobcrafting.org June 2010 Harvard Business Review 117 www.WorldMags.net & www.Journal-Plaza.net EXPERIENCE Randle D Raggio (raggio@lsu.edu)isanassistan t professor of marketing at l ouis ia na State university's Ourso College of Business Case Stud The CEO wants to focus his CSR efforts on finding a cure for his daughter's disease Is he acting in the company's best interests? by Randle D Raggio " The Experts OJ \~ J -"" -,:: =.~rt~V~i~or (bart victor@ owen.vanderbilt.edu) is the Cal Turner Professor of Moral l eadership Across the Professions at Va nderbilt University hen the CEO's Personal Crusade Drives Decisions ing," sh e said Carolyn had ridden the he senior leaders ofDM Bicycle Greenway many times since she joined Company filed into the conference the company, but she could n't remember room, their hands full of colfee ever seeing so much traffic containers, BlackBerrys, and the agenda "Bingo!" Gino sa id "More and more for that morn ing's meeting With the end people are biking to work, and that's good of the fiscal year in sight the CEO Gino news for us." Duncan, wa nted to discuss sales projec Gino had created DMBC, now a public tions for FYn compa ny, out of his passion for the "Good morn ing, eve ryone," he said outdoors and his eye for unique bicycle "Thanks for coming in ea rly I know y'all designs The company's 1,500 employees can't wa it to break down the budget, but all worked at its headqua rters and factory be fore we get started, you notice anything un usual outside?" He ges tured at the in Greensboro The bikes were called window be hind him "Cree ntes," as a tribute to their hometown Carolyn Bridges, DMBC's HR director Everyone in the room knew that orders peered down on what looked from the were coming in at a record rate Carolyn 10th floor like a procession of shiny beetles relished the thought offinally being able scuttling down the Bicentennial Greenway to staffup for increased production She They were act ually bikers wearing helmets hoped that the strong sales growth meant the company could reinstate the bonus that reflected the bright North Carolina sunlight "Lots ofcyclists out this mornpool that had been discontinued when the T Charmian love (charmian@volans com) is the chief executive of votans, a think tan k and consultancy focused on social innovation HBR's fictiona l cases present dilemmas faced by real leaders and offer solutions from experts "B Harvard Bus iness Review June 2010 www.WorldMags.net & www.Journal-Plaza.net i• l I Secure global IT and Comm unications solutions for anyti me, anywhere p roductivit y Work i5n't limited to cubicles ncorescent light, or business hours anymore.The world moves much too fast for that Which is why we have solutions that can he lp your enterprise keep up Solutions that let you securely access applications from almost anywhere, he lp you communicate and collaborate more efficiently, and empower you and your employees to make faster, more informed decisions Verizon: nect ing systems, machines, ideas, and people wor ldwide for altogether better outcomes venzon.com/ better www.WorldMags.net & www.Journal-Plaza.net altogetherbette r EXPERIEN CE fI I \' financial crisis struc k But her excitement was short-lived Gino's face grew serious "As most of you know," he said , his emo tion nea rly ove rcomi ng him, "about eight months ago my nine-year-old daughter, Nicole, was diagnosed wit h Batten disease:' His listeners nodded sympathetically Most ofthe m could remember Nicole and her brothers riding the ir bikes around the office on training wheels Gino had taken Join the conversatio n about what Carolyn should at hbr.org/boomerang·employee '/ for his daughter's life She respected his fat herly feelings, but was this really a corporate responsibility? Make It Happen After the meeting, Gino pulled Carolyn and Dottie Thompson, the marketing VP, aside "So, what you think?" he asked DMBC's current CSR efforts focused on combating childhood obesity through its Ride for Life program, which sponsored "Lots of companies can a phys-ed program," Gino said "We're the only one with a welt-known spokesperson who has the disease." Nicole's diagnosis very hard and had spent several months working from Rochester, New York while she was u ndergoing experimental treatment "It's an inherited neurological disorder that affects two to four children out of every 100,000 born in the U.S each year:' Gino tinued "They start exhibiting symp toms between the ages of fi ve and 10, and don't make it past their ea rly twenties They go blind, become mentally impaired, and are afflicted with seizures :' His voice began to crack After a mo ment he said , "As you can see from our projections, we're about to have the best year in our zj-year history I'd like to divide the windfall between a new CSR program focused on Batten disease and employee bonuses." The room was silent The n on e of the executives asked the question that was on everyone's mind: "Just for clarificationby 'divide between' you mean split equally?" Gino's eyes fl icked toward the speaker "To be blu nt, which you think is more important? Finding a cure for a devastating disease, or putting a little extra padding in someone's wallet?" Carolyn was shocked The company had not given raises in three years and in some cases had been forced to cut salaries, yet Gino seemed to want to direct the bul k ofthe expected profits towa rd fighti ng 120 Harvard Business Review June races and all-dey biking excursions for the city's schoolchildren The program had been so successful-both in raising employee morale and in creating positive public relations- that Dottie had been wor king for nearly a year to take the program national Now she said, wit h clear hesitation in he r voice "I think it's great Of course we should support finding a cure for Batten disease But does this mean the end of Ride for Life?" Gino seemed puzzled that Dott ie didn't get it "This company's CSR efforts have always been directed toward keeping kids healthy," he said "There's no thing healthy about little kids going blind and dy ing Ride for Life can be put on hold." "Nicole's picture has been on eve ry girl's bike we've eve r sold," he tin ued "Lots ofcompanies can doa phys-e d program We're the only one with a well-known spokesperson who has the disease I want you two to work toget her to ma ke this happen." Gino looked at Carolyn "I'd like you to announce this at the prod uct ion kickoff meeting" - which was to be held at Gino's farm in early July With that he turned and left them standi ng in the doorway of the now-empty conference room Carolyn could feel a pit forming in her stomach 2010 www.WorldMags.net & www.Journal-Plaza.net The Chief Evangelist Over the nex t two days Carolyn spoke informally with employees at different levels of the company Everyone felt for Gino, but they were already burned out The upcoming production schedule was aggressive, and, as one employee said, "Putting the whole company th rough Gino's personal struggle is not going to make him his daughter or the company any better:' Gino was known as someone who invested considerable persona l and fi nancial resources in a variety of social and environme ntal causes; he acted as "chiefevangelis t" for each new one that caught his fancy Some employees found him inspiring and relied on him for information about the next "hot" issue Others played along, having foun d that the easiest way to get face time with him for business purposes was to feign interest in his cause du jour Whatever their motivations, many employees had contributed time and money to Gino's crusades When Carolyn joined the company four years earlier, Jim Miniter, the CFO had told her, "Gino is more 'intuitive' than 'structu red,' and he tend s to shoot from the hip He expects the analytical types around him to worry about the details But DMBC is a fam ily-if you take care of business, Gino will take care of you." He and Gino were old high school buddies, and he had left his job as a Wall Street fi nancial analyst to join his frien d's venture Carolyn hoped that even though the two we re d ose Jim wo uld be willing to liste n to her concerns about this shift in dir ection Family or Big Brother? She caught up wit h Jim as he was heading back to his office and followed him in Surp risingly, he seemed to know exactly what was on her mind "I'm wo rried too," he began "We're going to have to present this cha nge in the annual report and at the shareho lder HB R.ORG meeting- but Iguess Gino can finesse those things." DMBC allowed employees up to 20 hours ofpaid work time each year to volunteer with a program associated with its CSR efforts, and it matched all employee financial contributions to those causes It also highlighted corporate social responsib ility in its ann ual report These policies had kept DMBC in the ranks of "most admired" companies, which made the shareholders happy "What worries me more," Jim said, "is that Gino has started to cancel or walk out of meetings to talk on the phone with families ofother children wit h Batten disease, or anyone who might have some information relating to the disease or a treatment Wecan't get anything done." "So you'll talk to him?" Carolyn asked, reliefwashing over her "I ca n't," said Jim "I was at his wedding in Trinidad Iwas there when Nicole and the boys were born It wo uld be like betraying a brothe r." Carolyn could understand loyalty, but this was ridicu lous "You're the only one he'll listen to," she said, "and you're a major s hareholder Don't you have an obligation to the company? The folks on the line are already feeling pressure with the ramp-up Some ofthem have asked if it's appropriate for Gino to force the whole company to go on this painful journey with him A couple of hourl y employees even called him selfish for putt ing his family ahead of the irs." Jim anticipated Gino's reply in a mock mo notone: "The employees will get paid for the wo rk they did to generate the profits, and I would have paid the m the same amo unt eve n if their efforts were not as successful In this case they get a bonus and we can give more to CSR." He conti nued, speaking in his own voice, "Also, companies like Starbucks and Sun Mtcrosystems and lots of ot hers support vast efforts aimed at water conservation, recycling, education, wildlife preservation, and so on They get aw ards and recog nition for their CSR efforts, not all ofwhich are directly related to their businesses And I can tell you that universities regu larly report-and some accrediting age ncies count- the number of faculty and staff members who give money to the university So this isn't way out ofthe mainstream." "But you know how it is aro und here; ' Caro lyn retorted "Employees expect that Gino will track who complies-er, partic· ipa tes- for the annual report, and they're afraid ofthe possi ble effect on evaluations and promotions The company cou ld start to feel like Big Brother rather than fam ily Bottom line, they think Gino is going to req uire everyone to contribute money or time to fight Batten disease, and that doesn' t seem right You need to speak to him." "I'm sorry, Carolyn, I just ca n't it:' Jim replied As Carolyn walked slowly out ofhis office, she thought back on the past four years She was an experienced HR manager, havi ng joined DMBC from a Fortune 50 ma nufacturer But because of Jim and Gino's long history, she had been kept on the fringes ofthe inner circle Without stronger alliances, she wasn't willing to rock the boat But she was wo rried that Gino's griefand concern for his daugh ter d overshadowed his concern for the company Has Gino gone too far, and should Carolyn try to stop him? see commenta ries on he next page Conquer Biz Bestsellers in a Flash the fastest way to expand your business knowledge with the world's largest book summary company Books piling up on yo ur desk or nighrstandl No t ime ro read! You're n01 alone For years successful executives have been re lying on getAbstract to summarize the most critical business books and delive r them in a flash Now you can, roo! 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