Organizational Structure

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Building a Better Car Company With Analytics

Using data and analytics to understand the complexities of modern business has become not only common, but essential. Gahl Berkooz joined Ford Motor Co. in 2004, eventually becoming head of data and governance and a member of the company’s global data insights and analytics skill team. Berkooz became acutely aware of how important analytics is to the company’s ability to thrive in the global marketplace. “What it boils down to,” he told MIT SMR’s Michael Fitzgerald, “is that we know how to make decisions. It’s about finding the opportunities to bring data and analytics to make better decisions.”

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Fighting the “Headquarters Knows Best” Syndrome

Belief that headquarters knows best can be damaging to the long-term success of a company operating in global markets. One company’s solution: a decision to operate out of dual headquarters, in the Netherlands and China. “No longer a prisoner of its home base, the top team was viewed as mobile, agile, and geographically dispersed,” write Cyril Bouquet et al. “The company was able to make more effective resource-allocation decisions informed by diverse thinking and divergent points of view.”

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Getting Workplace Safety Right

Companies aiming to be competitive in the long term do not see safety and productivity as trade-offs. Research drawn from multiple studies conducted with the support of companies, unions, and regulators in the United States and Canada finds no evidence that protecting the workforce harms competitiveness. “Once companies understand that safety is not the enemy of efficiency,” the authors write, “they can begin to build organizational safety capabilities.”

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How Well Does Your Company Integrate Demand and Supply?

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An online questionnaire by the authors of the MIT Sloan Management Review article “Integrating Supply and Demand” helps users assess how well their company’s supply chains are helping meet product demand — and serve key customers. The self-assessment lets users rate their companies in five areas in the demand and supply integration spectrum: relevant value focus, integrated knowledge sharing, strategic resource allocation, integrated behavior, and capacity and demand balance.

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Has Your Office Become a Lonely Place?

With increasing amounts of work getting done outside the traditional corporate office — for example, through employees working at home — those left in the office may face a lonelier, and even less productive, office environment. In fact, working remotely may be contagious, because if many people on a team aren’t in the office much, coming into the office has less benefit for the remaining employees. “Once a certain number of individuals are working offsite, everyone is isolated,” write researchers.

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The 2015 Richard Beckhard Memorial Prize

This year’s winning article is “Combining Purpose With Profits,” by Julian Birkinshaw, Nicolai J. Foss, and Siegwart Lindenberg. The authors examine a familiar question for managers: How can the tension between purpose and profits be best managed? The article explores the kinds of structures companies need to pursue “pro-social” goals. The Beckhard Prize is awarded annually to the authors of the most outstanding MIT SMR article on planned change and organizational development.

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How Global Is Your C-Suite?

New research shows that the vast majority of the world’s largest corporations are run by CEOs native to the country in which the company is headquartered. Does that matter? Some studies indicate that national diversity in the top management team can be associated with better performance. What’s more, the presence — or absence — of nonnative executives in a company’s top management team can send a signal to employees outside the home country: It indicates the long-term career prospects for foreign middle managers already in the company as well as for potential hires.

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Why Managers Still Matter

The role of managers needs to be redefined in today’s knowledge-based economy. Managerial authority remains essential in situations where decisions are time-sensitive, knowledge is concentrated and several decisions need to be coordinated. As well, an important task for today’s managers is to define the organizational goals and principles that they want employees to pursue. “From our perspective, the view that executive authority is increasingly passé is wrong,” write the authors.

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The 2014 Richard Beckhard Memorial Prize

This year’s winning article on planned change and organizational development is “Making Mergers Work,” by Hamid Bouchikhi and John R. Kimberly. The authors examine why mergers and acquisitions so often fail to achieve the results and synergies they promise. “Our work in this field has convinced us that there is no ‘one best way’ but rather four distinct paths that can be followed to achieve identity integration: assimilation, federation, confederation and metamorphosis,” they write.

Photo by Bengt Wanselius

Combining Purpose With Profits

It’s an old idea: If you want to build a company that truly motivates its employees, it has to have a sense of purpose. A sense of purpose that transcends making money can motivate employees. But to sustain both a sense of purpose and a solid level of profitability over time, companies need to pay attention to several fundamental organizing principles, including the need for support systems that reinforce goals.

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From the Editor: Beyond the Organization

Business executives today are figuring out how to harness the energy not just of the talented people within an organization, but of those outside of it as well. The fall 2013 issue of MIT Sloan Management Review features a special report on leveraging external innovation, from the phenomenon of corporations using innovation contests to an investigation of what motivates volunteers to take part in innovation projects.

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The 2013 Richard Beckhard Memorial Prize

The editors of MIT Sloan Management Review announce the winners of the 2013 Richard Beckhard Memorial Prize, awarded to the authors of the most outstanding MIT SMR article on planned change and organizational development published from fall 2011 to summer 2012. The Winners: Eoin Whelan, Salvatore Parise, Jasper de Valk and Rick Aalbers, authors of “Creating Employee Networks That Deliver Open Innovation.”

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How Innovative Is Your Company’s Culture?

Everyone wants an innovative corporate culture, but how do you develop one? This article posits that the ability of a culture to support innovation depends on six key building blocks: values, behaviors, climate, resources, processes and success. The article also includes a 54-element test developed to enable managers to assess a company’s “Innovation Quotient.” A case study in the article outlines the experience of a Latin American company with the assessment tool.

Image courtesy of Flickr user Robert Scoble.

Managing the Human Cloud

Online crowdsourcing platforms are growing at double-digit rates and are starting to attract the attention of large companies. Just as cloud computing offers unconstrained access to processing capacity and storage, the “human cloud” promises to connect businesses to millions of workers on tap, ready to perform tasks and solve problems that range from the simple to the complex. The article explores four new human cloud models: The Facilitator model, The Arbitrator, The Aggregator, The Governor.

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Image courtesy of Kyocera.

Amoeba Management: Lessons From Japan’s Kyocera

A persistent challenge for companies as they grow is how to maintain the high level of dynamism and employee commitment that drove success in the early days. Over the years, thoughtful managers and management theorists have formulated many approaches for dealing with the problem, all aimed at giving managers and employees more responsibility and accountability for the performance of their own profit centers. But few companies have taken things as far as Kyocera Corp.

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Are CEOs Getting the Best From Corporate Functions?

At too many large companies, corporate functions like HR and IT don’t get enough strategic direction from the CEO. The result of this undermanagement is mixed performance. While some corporate functions fulfill their roles highly effectively and win praise from the heads of operating units, most do not. Without sufficient guidance, corporate functions can become — often unintentionally — self-serving.

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7 Reasons On-Site Health Care Works For SAS

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An on-site, full-service health-care center staffed by physicians, nurse practitioners and support staff has saved SAS more than $1.50 on every $1 spent. And, with staff able to stay at work and still see a doctor, the company had an estimated $3.6 million in productivity savings.

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Connecting the Dots in the Enterprise

MIT’s Andrew McAfee has a new book that looks at Enterprise 2.0 tools as a way to span organizational networks. In an interview, he talks about the wide variety of organizations that are embracing the collaborative use of technology, the upsides of being able to identify who knows what, and why managers should be interested in Facebook.

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