Competing in volatile markets feels a lot like boxing: Punches come from all directions; strategies change constantly; and one powerful blow could knock out your company at any moment. As firms fight their way through tumultuous times, they can learn much from boxing champions. London Business School professor Donald Sull outlines two fundamental approaches to mastering uncertainty - agility and absorption - using the classic "Rumble in the Jungle" between Muhammad Ali and George Foreman to illustrate them. Both capabilities can help companies survive turmoil. Agility, exemplified by Ali, is the ability to quickly spot and exploit opportunities. It comes in one of three forms: operational agility, the capacity to seize opportunities to improve operations and processes within a focused business model; portfolio agility, the ability to shift resources out of less-promising units and into attractive ones; and strategic agility, the ability to jump on game-changing opportunities. Each kind of agility is enhanced by a distinct set of assets and leadership priorities. Absorption, exemplified by Foreman, is the strength to withstand punishment and weather sudden shifts. Sull describes 10 ways that companies can build absorption, including capitalizing on size, diversifying assets, and stockpiling a war chest of cash. Balancing agility and absorption is critical. Apple's iPod is an excellent example of agility, but it was absorption - in the form of a small core of fanatical customers - that kept the company going during the 1990s, when its market share shrank dramatically. Those customers kept Apple alive until changes in context created its golden opportunity. Ali won the Rumble by maintaining his agility while enhancing his absorption. Companies that follow his lead and cultivate both capabilities increase their chances of emerging from turbulence as new market leaders.
In May 2008, a group of management scholars and senior executives worked to define an agenda for management during the next 100 years. The so-called renegade brigade, led by Gary Hamel, included academics, such as C.K. Prahalad, Peter Senge, and Jeffrey Pfeffer; new-age thinkers, like James Surowiecki; and progressive CEOs, such as Whole Foods' John Mackey, W.L. Gore's Terri Kelly, and IDEO's Tim Brown. What drew them together was a set of shared beliefs about the importance of management and a sense of urgency about reinventing it for a new era. The group's first task was to compile a roster of challenges that would focus the energies of management innovators around the world. Accordingly, in this article, Hamel (who has set up the Management Lab, a research organization devoted to management innovation) outlines 25 "moon shots" - ambitious goals that managers should strive to achieve and in the process create Management 2.0. Topping the list is the imperative of extending management's responsibilities beyond just creating shareholder value. To do so will require both reconstructing the field's philosophical foundations so that work serves a higher purpose and fully embedding the ideas of community and citizenship into organizations. A number of challenges focus on ameliorating the toxic effects of hierarchy. Others focus on better ways to unleash creativity and capitalize on employees' passions. Still others seek to transcend the limitations of traditional patterns of management thinking. Not all the moon shots are new, but many tackle issues that are endemic in large organizations. Their purpose is to inspire new solutions to long-simmering problems by making every company as genuinely human as the people who work there.
Although most managers can recognize an off-kilter leader (consider the highly supportive boss who cuts people too much slack), it's quite difficult to see overkill in yourself. Unfortunately, that's where leadership development tools such as 360-degree surveys fail to deliver, say Kaplan and Kaiser. Dividing qualities into "strengths" and "weaknesses" and rating them on a five-point scale will not account for strengths overplayed. The authors suggest several strategies, based on their years of consulting experience and research, for figuring out which attributes you've employed to excess and adjusting your behavior accordingly. Strengths taken too far have two consequences: First, they become weaknesses. For instance, quick-wittedness can turn into impatience with others. Second, you're at risk of becoming extremely lopsided - that is, diminishing your capacity on the opposite pole. A leader who is very good at building consensus, for example, may take too long to move into action. To strike a balance between two key leadership dualities - forceful versus enabling, and strategic versus operational - you need to see your actions and motivations clearly. That's no easy task since most leadership development tools don't spell out that you're overdoing your strengths. But there are other ways to bring that information to light. You can start with a review of the highest ratings on your most recent 360 report. Ask yourself: Is this too much of a good thing? Another technique is to make a list of the traits you most want to have as a leader. Are you going to extremes with any of them? To check for lopsidedness, you can prompt feedback from other people with a list of qualities you've composed or one you've gleaned from other sources. Once you know which attributes you're overdoing, you can recalibrate.
Josh Lewis, a young staffer at Rising Entertainment, is frustrated because his boss, marketing chief Sarah Bennett, won't listen to his ideas about using new media to promote films. She's trapped in the 1990s, he thinks, when people actually watched network TV! Rushing through his assignment for a team presentation, he works up a plan and pitches it to the CEO in the hallway. The CEO loves it, but Sarah is upset with Josh for going over her head - and submitting subpar work on the presentation. How can these members of two different generations work together effectively? Three experts comment on this fictional case study in R0902B and R0902Z. Clashes between impatient Generation Y and pay-your-dues Generation X are inevitable but certainly manageable, says Ron Alsop, author of The Trophy Kids Grow Up. For starters, Sarah should reprimand Josh for bypassing her; he should respect her authority and work with her, not around her. But Sarah must address Josh's frustrations. Like many Gen Yers, he wants to know that his work is meaningful, and he needs constructive feedback on suggestions. Enterprise Rent-A-Car president Pamela Nicholson says that given the CEO's enthusiasm, Sarah should commend Josh's initiative but remind him to keep her in the loop. Sarah and Josh also might be able to forge a more productive relationship if Rising Entertainment set up training and feedback programs to help integrate Gen Yers into the workforce, as Enterprise has. Jim Miller, an executive VP at General Tool & Supply, thinks Josh put his team in jeopardy by doing his assigned tasks poorly. Sarah needs to coach him on being a team player and set clear expectations about performance and communication. However, she could have done a much better job of validating his good idea - perhaps by asking him to spearhead some experiments for the group.
Josh Lewis, a young staffer at Rising Entertainment, is frustrated because his boss, marketing chief Sarah Bennett, won't listen to his ideas about using new media to promote films. She's trapped in the 1990s, he thinks, when people actually watched network TV! Rushing through his assignment for a team presentation, he works up a plan and pitches it to the CEO in the hallway. The CEO loves it, but Sarah is upset with Josh for going over her head - and submitting subpar work on the presentation. How can these members of two different generations work together effectively? Three experts comment on this fictional case study in R0902B and R0902Z. Clashes between impatient Generation Y and pay-your-dues Generation X are inevitable but certainly manageable, says Ron Alsop, author of The Trophy Kids Grow Up. For starters, Sarah should reprimand Josh for bypassing her; he should respect her authority and work with her, not around her. But Sarah must address Josh's frustrations. Like many Gen Yers, he wants to know that his work is meaningful, and he needs constructive feedback on suggestions. Enterprise Rent-A-Car president Pamela Nicholson says that given the CEO's enthusiasm, Sarah should commend Josh's initiative but remind him to keep her in the loop. Sarah and Josh also might be able to forge a more productive relationship if Rising Entertainment set up training and feedback programs to help integrate Gen Yers into the workforce, as Enterprise has. Jim Miller, an executive VP at General Tool & Supply, thinks Josh put his team in jeopardy by doing his assigned tasks poorly. Sarah needs to coach him on being a team player and set clear expectations about performance and communication. However, she could have done a much better job of validating his good idea - perhaps by asking him to spearhead some experiments for the group.
In 2005, to the astonishment of many sports industry insiders, superstar basketball player LeBron James fired his agent and established his own firm, LRMR, to handle all aspects of his business ventures and marketing activities and named his childhood friend Maverick Carter as the CEO. LRMR is tasked with turning James into a global icon as well as helping him reach his personal goal of becoming basketball's first billionaire. In late 2008, James has entered various lucrative endorsement deals and is considering three exclusive videogame endorsement opportunities from Electronic Arts, 2K Games, and Xbox Live to add to his portfolio. Allows for a rich discussion about how superstar athletes and other celebrities can create and capture value from their brands as well as what role talent agencies and other intermediaries play in that process. Provides in-depth information on three endorsement opportunities that each represents a common way in which talent can (choose to) get compensated: through a fixed-fee payment, a bonus payment structure, or a revenue-sharing agreement.
The book A Primer on Corporate Governance was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. The book discusses corporate governance from both a macro- and micro-perspective. Historical data and examples including the recent scandals that have torn the fabric of capitalism pave a pathway to the principal challenges facing today's boards, and how to successfully manage them. Chapter 1, "Corporate Governance: The Link Between Corporations and Society," describes the U.S. corporate governance system and its principal actors and briefly surveys the history of corporate governance in the United States, including the wave of governance scandals that occurred around the turn of the century.
The book A Primer on Corporate Governance was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. The book discusses corporate governance from both a macro- and micro-perspective. Historical data and examples including the recent scandals that have torn the fabric of capitalism pave a pathway to the principal challenges facing today's boards, and how to successfully manage them. Chapter 2, "Governance and Accountability," building on the review of history presented in Chapter 1, delves deeper into the philosophical questions of ownership and accountability and asks, "Who owns the corporation?" It contrasts the shareholder and stakeholder perspectives and tries to find common ground between the two.
The book A Primer on Corporate Governance was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. The book discusses corporate governance from both a macro- and micro-perspective. Historical data and examples including the recent scandals that have torn the fabric of capitalism pave a pathway to the principal challenges facing today's boards, and how to successfully manage them. Chapter 3, "The Board of Directors," focuses on the role of the board and provides an overview of recent trends in board composition, structure, and leadership.
The book A Primer on Corporate Governance was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. The book discusses corporate governance from both a macro- and micro-perspective. Historical data and examples including the recent scandals that have torn the fabric of capitalism pave a pathway to the principal challenges facing today's boards, and how to successfully manage them. Chapter 4, "Recent U.S. Governance Reforms," takes a close look at the flurry of reforms adopted in the last 10 years. This analysis shows just how much effective corporate governance depends on a delicate balance of power-among shareholders, directors, managers, and regulators-and on properly aligned incentives, clearly defined accountability and transparency, and last but not least, a steady ethical compass.
The book A Primer on Corporate Governance was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. The book discusses corporate governance from both a macro- and micro-perspective. Historical data and examples including the recent scandals that have torn the fabric of capitalism pave a pathway to the principal challenges facing today's boards, and how to successfully manage them. Chapter 5, "CEO Selection and Succession Planning," discusses a key responsibility of boards.
The book A Primer on Corporate Governance was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. The book discusses corporate governance from both a macro- and micro-perspective. Historical data and examples including the recent scandals that have torn the fabric of capitalism pave a pathway to the principal challenges facing today's boards, and how to successfully manage them. Chapter 6, "Oversight, Compliance, and Risk Management," discusses a key responsibility of boards.
The book A Primer on Corporate Governance was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. The book discusses corporate governance from both a macro- and micro-perspective. Historical data and examples including the recent scandals that have torn the fabric of capitalism pave a pathway to the principal challenges facing today's boards, and how to successfully manage them. Chapter 6, "The Board's Role in Strategy Development," discusses a key responsibility of boards.
The book A Primer on Corporate Governance was written by Cornelis A.DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. The book discusses corporate governance from both a macro- and micro-perspective. Historical data and examples including the recent scandals that have torn the fabric of capitalism pave a pathway to the principal challenges facing today's boards, and how to successfully manage them. Chapter 8, "CEO Performance Evaluation and Executive Compensation," discusses a key responsibility of boards
The book A Primer on Corporate Governance was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. The book discusses corporate governance from both a macro- and micro-perspective. Historical data and examples including the recent scandals that have torn the fabric of capitalism pave a pathway to the principal challenges facing today's boards, and how to successfully manage them. Chapter 9, "Responding to External Pressures and Unforeseen Events," discusses a key responsibility of boards.
The book A Primer on Corporate Governance was written by Cornelis A. DeKluyver, Dean of the Lundquist College of Business at the University of Oregon, and published by Business Expert Press. The book discusses corporate governance from both a macro- and micro-perspective. Historical data and examples including the recent scandals that have torn the fabric of capitalism pave a pathway to the principal challenges facing today's boards, and how to successfully manage them. Chapter 10, "Creating a High-Performance Board," discusses a key responsibility of boards.
Arcelor believes its shares are undervalued and has to decide whether to buy back stock via a repurchase tender offer or via an open market repurchase. Before doing so, it has to value the company to get an estimate of the fair value of the company. It has also to decide whether it can afford the buyback: is the increase in leverage a move to a better capital structure?
A French executive with Michelin is expatriated from Clermont-Ferrand to South Carolina. Initially confident in his leadership skills, the protagonist learns quickly that many aspects of leading a team are quite different in the American environment. Although he ultimately succeeds, Chalon initially struggles to understand the different culture in which he is working and adapt his style accordingly.
A French executive with Michelin is expatriated from Clermont-Ferrand to South Carolina. Initially confident in his leadership skills, the protagonist learns quickly that many aspects of leading a team are quite different in the American environment. Although he ultimately succeeds, Chalon initially struggles to understand the different culture in which he is working and adapt his style accordingly.