Does the belief that a manager‘s overriding duty is to maximize shareholder returns encourage socially destructive actions by corporations? Employing economic, legal and behavioral analyses, the author concludes that, although the shareholder theory is often inaccurately maligned, stakeholder theory may be more conducive to curbing the kind of impropriety seen at Enron and Global Crossing.
Some countries embrace new products more quickly than others and that has significant implications for launch strategies.
Americans are joiners — nine out of 10 belong to at least one group or association, such as the American Automobile Association and the AARP, and these groups provide a potent mechanism for developing, marketing and distributing a host of products and services.
A recent case study finds that enterprise-level software packages may ultimately drive improvement but may not reconcile operational disparities.
Evidence suggests that innovative products boost a company’s long-term financial performance and stock-market value, whereas promotions may negate gains.
“He has flattened the pyramid — there were too many bosses,” a J. Crew financial executive told the New York Times in May 2003, referring to the actions of J. Crew CEO Millard S. Drexler.
For many years, when it came to setting goals, organizations took a top-down approach. It made sense: Goal setting requires information of the sort only top-level managers had, and it was their job to make the calls and pass them along to the lower levels of the company.
Companies must move beyond merely fixing what has “gone wrong” to developing what will “go right” by refocusing on the actual customer experience.
Companies that form joint ventures must learn to avoid five minefields that can blow up the relationship.
People commonly talk about the energy (or lack thereof) associated with certain individuals or company initiatives. Managers can translate such talk into action that creates more energy, improves performance and fosters learning.
For “knowledge-based” to be more than a buzzword, managers must recognize that the concept has little to do with the kind of products they sell. Whether it‘s a cement maker like Holcim or a financial services company like CapitalOne, a company‘s knowledge base is predicated on how it uses knowledge to change processes, overcome traditional boundaries, set strategy, and create a corporate culture.
Leadership consists of opposing strengths, and most leaders have a natural tendency to overdevelop one at the expense of its counterpart. The resulting imbalance diminishes their effectiveness. But leaders who work to guard against such lopsidedness can increase their versatility and their impact.
Disruptive innovation in an industry always creates new markets and new net growth. Companies should go on the offensive, seeking customers who are off the radar of their established businesses.
New information technologies, such as broadband networks, mobile communications and the Internet, have well-known, but often unrealized, potential to transform businesses and industries. The key to success is knowing how and when to apply the technologies. Companies should look at 10 specific drivers to help determine their best strategy.
The use of external sources for help with innovation is becoming increasingly prevalent. Rather than take an ad hoc approach, companies should develop a sourcing blueprint to obtain the consistent results they need.
The next practices of innovation must shift the focus away from products and services and onto experience environments — supported by a network of companies and consumer communities — to co-create unique value for individual customers.
A generation of managers is obsessed with the idea of dramatic, turbulent change. This is misguided hype, say the authors. Drawing on management literature, history and company examples such as IBM, General Electric and British Airways, they contend that a sensible framework for change must recognize the subtle interplay of its various forms as well as the importance of stability and continuity.
Companies often launch spinoffs to enter a market quickly. But the more sustainable strategy is to establish a group that is (or will be) integrated with their existing operations.
Industry competitiveness should dictate how much companies rely on advertising revenue as part of their business model.