Almost all discussions of corporate governance focus on boards of directors. But what about managers? Faults in the way a company is governed can be found in certain limits imposed on managers and in the relationship between managers and directors, a relationship that managers themselves can make more productive. One of the world's leading management thinkers offers some ideas for doing so.
Customer Relationship Management (CRM) initiatives have been disappointing There are five major reasons why CRM's failure rates are abysmally high. This article describes these five reasons and what was learnt from them. First, CRM is not properly understood, leading to unrealistic and inappropriate expectations. CRM is an attitude rather than a technique or software and implies comprehensive relationship marketing rather than mass marketing for most of the clients. Furthermore, any understanding of what CRM is must be accompanied by an understanding of what it is not. CRM does not replace, but rather complements, other marketing and customer service initiatives. Second, CRM initiatives should add value to the relationship for the customer, not just the company. Too many CRM initiatives are designed to help the company rather than the customer. Third, it is difficult to choose the appropriate CRM solution as the technology is constantly evolving. Recently, many CRM vendors are launching industry-specific suites (referred to as vertical tools) that enable companies to deploy the software faster than generic packages, and without the costly customization. Fourth, Implementing a CRM system is complex and difficult. While resistance may come from salespeople who do not wish to give up ownership of customer information or from IT people who do not wish to change legacy systems, experience has shown that for a CRM program to be successful, above all else it must have the full support and ongoing commitment of top management. They must view CRM as a strategic initiative, not as a technological tool or tactical program. Lastly, it is easier to demonstrate the costs of CRM relative to the benefits. While measuring the costs are fairly straightforward, measuring the payoff of a CRM system, especially in its early stages, can be difficult and contentious, which can lead to poor judgments by management. Measurement criteria should be based on the objectives of the CRM program and used to manage and continuously improve strategic CRM performance.
The Big Three no longer have the automobile market to themselves, but almost every market, including the one for cars, is ruled by three dominant firms. That reality does not prevent other firms from being successful. However, all firms, regardless of their market share, must still understand The Rule of Three and how it will affect their strategy and attempt to operate efficiently.
Noranda is a $7 billion international mining and smelting company headquartered in Canada. It has been cited for its fine environmental record. This case explores the issue of sustainability--in this case, for a mining company. Over time, and under nongovernmental organization and governmental pressure, Norando moves gradually to goals approximating sustainability. At issue is the sustainability of Noranda's expenditures on environmental mitigation and the degree to which Noranda employs (or should employ) "best country" standards everywhere it operates.
In mid-June 2000, Michael Saylor, the CEO of MicroStrategy, is considering an investment of $125 million of convertible preferred stock in his firm by a group of private investors including Citadel Investment Group LLC. The offer comes at a difficult time for the company, as only three months earlier, its stock had reached a record price of $300 per share. At that point the company had registered a $1 billion seasoned equity offering. Shortly thereafter, the company was forced to restate its earnings after running afoul of the U.S. Securities and Exchange Commission (SEC) for its revenue-recognition practices. Although the restatement did not change the company's cash-flow position, it did result in an SEC investigation and the cancellation of the stock offering. In order to meet Saylor's ambitious plans for MicroStrategy, additional funding must be obtained. With public-market funding sources shut off, students must evaluate what the best course of action is for the firm at this moment. Students are asked to evaluate a new form of venture financing called private investments in public enterprises (PIPE). PIPEs differ from conventional floating-rate convertibles in that the conversion price in most cases can only be adjusted downward. The case considers both the pros and cons of these investments.
Organizations need a leadership pipeline where leaders use and develop their judgment to a point where it becomes wisdom. This author uses 25 years of teaching experience to conclude that leaders can be developed within a company. The challenge for human resource development is to accelerate the development of high-quality leadership in organizations, increase the yield of mature leaders from a pool of high potentials, and create a pipeline of management talent that delivers leaders where and when they are needed. Organizations should involve the expertise of senior executives in the recruitment process and hire talented individuals. These individuals should be channeled into the right experiences that encourage individual development. Learning should be combined with doing so practical skills are gained and development must be integrated with personal career management and organizational development. People in development programs must be monitored for dedication levels and high-potentials should be given frequent performance reviews and constant reassurance that they are high-potentials. The article also examines the extensive role of human resource development in development. The best organizations centralize ownership of high-potential leaders rather than delegating responsibility to individual departments. Human Recourses should ensure that leadership development is connected to broader organizational strategy, integrate critical HR systems around the leadership development challenge, manage the leadership development process, advice and consult on individual career plans , brief management on developments in leadership thinking, seek and evaluate outside leadership development resources and benchmark leadership development practices against high-performing organizations.
In this interview, the author of Emotional Intelligence, one of the most influential books on organizational behaviour, discusses what he calls primal leadership, the emotional dimension of leadership. A leader's primal task is an emotional one, to articulate a message that resonates with their followers' emotional reality and so moves people in a positive direction.
Heroic leaders are always conspicuous and sometimes successful. However, more often successful but always inconspicuous are quiet leaders. In this article, the author profiles the quiet leader and the leadership style that he embodies. Based on his recently published book, Leading Quietly, this article discusses and defines a leadership style that is deliberate and circumspect, ethical and considerate - and successful, particularly in today's complex business environment. The author also has very sound advice for managers who must make tough choices under intense pressure.
When it comes to communicating effectively, leaders must not only be mindful that less is more but that strategy trumps tactics. These co-authors, professors and communications consultants, argue that leaders are more than willing to communicate, but that they too often approach the task on a tactical rather than strategic level. Moreover, these same leaders may use every medium and format available, but they rarely co-ordinate their use and deploy them selectively. Four steps taken - assessing the context, crafting the strategy, implementing the strategy and provoking the dialogue - will enable leaders to deliver messages that are clear, effective and achieve their goals.
Monsanto, one of the world's largest producers of commodity chemicals, had decided to focus its operations on the biotechnology and pharmaceutical industries. The first shipment of genetically modified soybeans arrived in Europe in November of 1996. Genetic engineering promised to reduce the use of pesticides and curtail world hunger. Therefore, Monsanto was dismayed at the powerful opposition that developed over the next few years. A series of food safety concerns, the foremost being mad cow disease, only added to consumer skepticism. The company must examine its strategy and the relationships with key stakeholders (including governments, farmers, industry groups, environmentalists, grocers and consumers). The (A) case provides background on Monsanto, their corporate strategies and the climate in which they introduced genetically modified products in the United States and Europe. The supplement Monsanto (B), product 9B02A008, focuses on the roles of government and other regulatory bodies in the acceptance of genetically modified products.
This supplement to Monsanto Europe (A), product 9B02A007 discusses the non-acceptance to genetically modified products showing up in the poor performance of Monsanto's agricultural division, affecting its successful divisions and the survival of the company. In order to win back its respectable standing in the marketplace, Monsanto must develop new strategies to educate consumers and influence political decision makers in order to gain greater acceptance of its products.
The director of development at a large law firm and two other members of a selection committee will be interviewing three candidates for an articling position at the firm. The director must decide what questions to ask of the three law students applying, keeping in mind what questions she could not ask of the candidates. Through role play, students are given the opportunity to develop interview questions and interview the candidates.
This note provides background information on legal issues in employment selection and retention. Presented are some of the restrictions that are placed on how employers conduct the recruitment process. The human rights legislation that governs the entire employment process is introduced. In addition, the issues of reasonable and bona fide job requirements, medical testing in pre-employment and current employment situations are discussed. Issues that interviewers need to be aware of to avoid discrimination during the hiring process are also highlighted.
Ebao is a year-old Web-based technology company whose founders believe that their e-insurance programs and products have the potential to improve the overall efficiency of China's traditional insurance industry. In its first year of operation, Ebao has grown into a 70-person organization with offices in Shanghai and Beijing, and almost all the major insurance companies in China have signed up with the company's Web site and are using its e-insurance applications. Ebao's chief executive officer and founder has a long list of challenges to confront in the coming year. The company needs to strengthen its market position in the face of rapidly growing competition and to sustain its rapid growth in a year full of market downturns. As well, Ebao's management team has targeted to achieve break-even by the end of the current year. The company's chief executive officer must determine a concrete business strategy that will lead Ebao onto the next stage of success. His challenge is to build competitive advantage in the new Internet industry and in an emerging market.
Two MBA students decide to launch an e-commerce, Internet-based business selling interactive games. Currently the video game market focused on personal computer-based platforms with only one offering Internet access. Over the next few months they would have a number of challenges, not only would the need to build the programming for the site, they must develop a business plan and marketing strategy that would compete with the strong personal computer-based video game market. The supplement, GamesEDGE.com (B), product 9B00A034 outlines the results after the launch of the business.
Traces the origin of Vialog Corp.--from its founding in 1996 through a roll-up of several independent teleconferencing companies in 1997 and its initial public offering (1999) and eventually to a potential merger or acquisition in June 2000. The company has grown rapidly and has the option of merging with an Internet company or another strategic partner, or selling to a European strategic partner.