Successive economic crises of the 1990s and early 2000s intensified focus on reform of the "international financial architecture." Because many of these crises involved defaults on sovereign bonds, an important component of the discussion revolved around the composition of international capital flows and sovereign debt restructuring. With the official sector, private creditors, and sovereign debtors focused on different issues, proposals surrounding the topic varied widely. Describes some of the proposals and summarizes scholarship on their advantages and disadvantages.
Conventional wisdom, together with the weight of published management advice, recommends that management teams engage task conflict directly but avoid relationship conflict. Implicit in this advice is the premise that it is indeed possible to separate the task and the relationship aspects of a business conflict. Argues that this separation is not always possible for management teams. When teams discuss "hot topics," substantive disagreements (task conflicts) tend to trigger negative attributions about others' motives or abilities (a key element of relationship conflicts). When this happens, most managers suppress their true thoughts, thus avoiding genuine discussion. Yet, when interpersonal attributions are suppressed, they tend to leak into the business conversation anyway, such as in the form of implied accusations or aggravated tones of voice. These dynamics are virtually inevitable, even when managers try hard to avoid them. Making a distinction between "hot" and "cool" topics can help clarify when avoiding discussion of relationship conflict in management teams is feasible and when it's not. In addition, management teams facing hot topics need to learn to handle relationship conflicts productively, despite the heightened emotions and interpersonal tensions associated with them.
Although many organizations initiate communities of practice to drive performance and innovation, managers typically have little insight into their internal effectiveness and business impact. Offers network analytics, interventions, and metrics (both in terms of network connectivity and business outcomes) to improve and track the success of such community initiatives. Specifically, shows how social network analysis can help move a community from an ad hoc, informal group to a value-producing network by focusing on five critical levers: improving information flow and knowledge reuse; developing an ability to sense and respond to key problems or opportunities; driving planned and emergent innovation; nurturing value-creating interactions; and engaging employees through community efforts.
Online markets have dramatically altered the retail landscape. By eliminating barriers associated with geography as well as the physical costs of maintaining a storefront, online markets have created a "democracy" of buyers and sellers. However, the fluidity of this marketplace and the relative anonymity of transactions has made the problem of maintaining trust critically important. Solving the "trust problem" represents a key competitive advantage for many of the successful players in the online space. For instance, much of the remarkable success of eBay has stemmed from its ability to create valuable and informative reputations for its users through its feedback system. The lock-in associated with a user's reputation on eBay helped it to stave off challenges by Amazon and Yahoo. Describes how eBay's solution to the "trust problem," has led to the creation of a "market for feedback" whose sole purpose is the "manufacture" of reputation for eBay users. Presents a study and statistical analysis of this market in order to show that its maintenance represents a crucial challenge to eBay's future competitive advantage and, more generally, to solving the "trust problem" in other online markets.
With the recent loss of public confidence in firms in America, Australia, Britain, and other countries, more companies are being forced to promote themselves to their internal and external stakeholders in order to maintain and protect their reputations. Advises firms to communicate their reputation message in the form of a corporate story--a narrative that speaks about the company's mission, morality, and modes of operation--and then provides guidelines for creating and evaluating these stories.
In the wake of globalization, still more regional clusters are globally outsourcing (purchasing components that were originally manufactured internally) or offshoring (globally relocating manufacturing while maintaining ownership control). Policy makers and business strategists alike are searching for theoretical frameworks to understand the underlying dynamics of this global reshuffling of production activities and how this will affect innovation and competitiveness. Examines production relocation from a regional perspective and shows that the impact of globalization on regional clusters depends on the modularity and digitalization of the regional production activities, which affect stickiness and coordination costs.
Despite the large number of firms offering loyalty programs and their high levels of consumer membership, many of these loyalty programs have not been successful. Differentiates among four different types of loyalty programs and offers a series of guidelines to assist firms to develop, implement, and control an effective loyalty program. Describes several potential pitfalls that need to be avoided.
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.
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.
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.
Alison Barnard, 27, knows shopping, retail, and fashion. As an MBA, working part time in retail, she devises a business plan for a premium denim and tops boutique based on her view that "women are not brand loyal, they are fit loyal." In-Jean-ius, her six-month-old corner shop in Boston's lovely North End, has been exceeding her revenue estimates since day one-largely because Alison has skill and passion to help her upscale clients find just the 'right' pair of jeans. As it has from the very beginning, running this hit venture consumes nearly every waking hour. Still, the creative, high-energy founder is far less concerned with burning out than with having her retail store duties usurp her ability to plan and manage for growth. While her plan is to roll out In-Jean-ius stores in major cities like New York, Chicago, LA, that will be critically dependent on her ability to attract and develop management talent with a similarly keen eye for fit. Her latest hire with management potential has just decided to quit, leaving Alison to wonder; if it's such a challenge to replicate myself at this one location, how am I supposed to scale?
Iftekhar Enayetullah and Maqsood Sinha, co-founders of Waste Concern in Bangladesh, had earned an international reputation for their innovative approach to dealing with the vast quantities of waste that threatened to overwhelm the overcrowded city of Dhaka. Having just been recognized by the Schwab Foundation for Social Entrepreneurship as "outstanding social entrepreneurs," the two were eager to take Waste Concern to the next level. Their ambitions included scaling up their waste processing operations, introducing new technology, and creating a new trading business selling credits for the reduction of greenhouse gas emissions under the framework develop by the Kyoto Protocol. Describes Waste Concern's model and details two opportunities to raise capital from large foreign firms that would provide the funds to grow the organization. Enayetullah and Sinha were concerned not only about the financial aspects of the two offers but also about the objectives and philosophies of the two suitors. Enayetullah and Sinha wanted any decision to be consistent with Waste Concern's goal of promoting Kyoto Protocol-related (Clean Development Mechanism) projects throughout Bangladesh and converting waste into a resource to benefit the poor.
Headquartered in St. Paul, Minnesota, Minnesota Public Radio (MPR) started as a small public station that 26-year-old William Kling established at St. John's Abbey and University in Collegeville, Minnesota in 1967. By 2004, Kling's venture had grown into a regional network of 38 stations, serving more than five million people. The organization had more than 83,000 members and boasted the highest percentage of listener membership of any community-supported public radio network in the nation. Much of MPR's growth and success had been built through what Kling referred to as "social purpose capitalism...the application of the traditional principles of capitalism...to a nonprofit organization [to] benefit the public sector." Kling's first foray into "social purpose capitalism" was in 1981 when Garrison Keillor, the popular host of "A Prairie Home Companion," wanted to reward loyal listeners with a free poster of "Powdermilk Biscuits," an allusion to a fictitious sponsor that was part of a Prairie Home gag. The giveaway drew over 50,000 responses, much more than originally anticipated, costing $60,000. To avert financial ruin, Kling printed an offer for other products that listeners could buy on the back of the poster. Netting $15,000 to $20,000 from that poster convinced Kling that there were opportunities to secure MPR's financial situation. Kling created a number of for-profit ventures to support and build the MPR empire. By 2004, however, MPR and Kling were the subject of unrelenting public criticism. Ostensibly, the issue was MPR's unwillingness to disclose Kling's compensation from the private for-profit enterprises spawned by MPR. After disclosing this information, Kling became the subject of condemnation amid accusations of conflicts of interest and nepotism. Knowledgeable observers, however, saw the real concern to be fear that a public benefit organization was being driven by profit-making priorities.