Leadership is often presented as an abstract undertaking, a matter of vision and values rather than practical details. But in the author's world, the work of leadership is as prosaic as the loose-leaf binder he carried everywhere as he directed the logistics of the 1991 Gulf War. The author was a lieutenant general in the U.S. Army when he wrote this article, originally published in 1992. The roots of his leadership philosophy go back to his native Charleroi, Pennsylvania, where he worked as a newsboy. But his most searing lessons came in places like Vietnam's Mekong Delta. To lead successfully, the author argues, a person must demonstrate expertise and empathy, which can be systematically learned. And true leaders create organizations that support the cultivation of leadership. In other words, anyone who wants to work hard enough can lead. Leaders who send their people out to do battle in the business world have much to learn from Pagonis. Above all, they can learn from the general's ability to see the world from the foot soldier's point of view, even as he surveys the big picture.
Senior managers are used to hearing advice about how they can combat sloppiness and introduce rationality or neatness into their decision making. In this article, first published in 1979, Thomas Peters argues that "sloppiness" is overwhelmingly normal, probably inevitable, and usually sensible. For example, in the course of a typical day, senior executives face endless interruptions and limited options for action. Those in charge may not even hear about choices, or any bad news that might require action, until it's almost too late. Furthermore, any decision that is made will probably require months or years to implement fully. Peters suggests that these "sad facts" of managerial life can be turned into opportunities to communicate values and to persuade. The fragmented nature of the executive's workday can also create a succession of opportunities to tackle bits of the issue stream. The fragmentation is precisely what permits a manager to fine-tune, test, and retest the strategic signals being sent to the company. Peters suggests that the leader's task is not to impose an abstract order on an inherently disorderly process. Instead, the leader must become adept at controlling the process by nudging it in the desired direction.
More and more companies today are facing adaptive challenges: Changes in societies, markets, and technologies around the globe constantly force businesses to clarify their values, develop new strategies, and learn new ways to operate. The most important task for leaders in the face of such challenges is mobilizing people throughout their organizations to do adaptive work. In this HBR article from 1997, the authors suggest that the prevailing notion that leadership consists of having a vision and aligning people with it is bankrupt; this approach ignores the fact that many work situations are adaptive rather than technical. Heifetz and Laurie instead offer six principles for leading adaptive work. The authors say leaders should be able to spot operational and strategic patterns from high within the organization and set or create a context for change rather than get caught up in the field of action. They need to pinpoint just how a company's value systems or methods of collaboration must change as well as to regulate the inevitable distress that adaptive work generates. They also need to maintain disciplined attention among employees as well as give the work back to people, letting employees take the initiative in defining and solving problems. And finally, they need to protect the voices of leadership coming from below. An example of adaptive change at KPMG Netherlands, a professional services firm, illustrates these principles.
We can't examine breakthrough leadership without acknowledging that it exists as part of a duality; leaders forge relationships with followers. So what do those followers want and need from their leaders? They're looking for significance, community, and excitement--or the deal is off.
Describes 37-year-old Ferit Sahenk's challenges in taking over his father's traditionally managed $14 billion Turkish conglomerate in a period of economic instability. Leading the large holding company into the 21st century will require the establishment of a more institutionalized structure as opposed to the highly personal style of Ferit's father as he grew the company over the past 50 years. Addresses issues of how to establish credibility as the company's new leader, how to motivate his board members to participate more in the company decisions, how to manage in a period of increasing international competition and Turkey's political and financial instability, and the complexities of succession in family-owned businesses.
This case describes issues facing the founder-CEO of a high-tech start-up in Boston, as he negotiates with multiple large potential partners and investors. The negotiations include a potential business partnership with FleetCenter and Madison Square Garden, and a potential investment from two large venture capital firms. The case focuses on the sequencing among the parties, how to resolve conflicting interests among the parties, and the issues facing small entrepreneurial firms trying to negotiate with very large and powerful investors and business partners.
In early June 1997, the CEO and vice chairman of Grupo Modelo were reviewing the performance of Corona beer in the U.S. market. Despite a much higher sales volume growth rate, Corona still trailed Heineken, the #1 imported beer brand in the U.S. market. Could Corona overtake Heineken and, if so, what marketing strategy changes needed to be made? Includes color exhibits.
AT&T once dominated virtually all U.S. telecommunications sectors. In 1984, AT&T was broken up into a new AT&T and seven operating companies, known as RBOCs (regional Bell operating companies) or Baby Bells. This case focuses on the period from 1984 to 2000, during which time AT&T went through a series of tumultuous changes. AT&T acquired, and then divested, the computer company NCR. AT&T bought McCaw Cellular Communications Inc. for almost $12 billion. AT&T spun off its equipment division into a new company called Lucent. AT&T invested more than $100 billion to acquire various cable television assets. Finally, in 2000, AT&T announced a sweeping restructuring plan that would break the company up into separates wireless, broadband, business long distance, and consumer long distance companies.
In January 2001, the senior management committee of this company has to decide which major projects should be funded for implementation by the company starting in 2001. The board of directors arbitrarily set a limit of (euros) EUR120 million to be spent on capital projects in 2001. Various managers, however, have proposed projects totaling EUR316 million. The task for the student is to evaluate the completed discounted cash flow (DCF) analyses presented along with qualitative factors (mainly strategic considerations and internal politics of the company), and to choose the projects to be approved.
As the financial services industry converges, how should Charles Schwab, widely known as a discount brokerage firm, position its brand? This case presents elements of the company's overall brand strategy--including brand assets, choice of target audience, and media message.
In 2001, International Management Group (IMG) is the dominant company in the sports management industry. Its founder and CEO, Mark McCormack, is credited with having created the industry of sports management in the early 1960s. Over the next 40 years, IMG's expansion from athlete representation into other arenas--including representing models and classical music artists, producing and broadcasting television shows, operating training academies, corporate consulting, and financial planning--has been both dramatic and successful. This case describes the company's logic behind each expansion decision, as well as several challenges that the company has had to confront, specifically, maintaining the loyalty of the agents and clients, avoiding conflicts of interest with clients by virtue of the company's broad reach, deciding where to expand next, and meeting the challenge of increased competition from other sports management conglomerates.
Outlines the tax and accounting treatment of restricted stock awards, nonqualified stock options, and incentive stock options, including the effect of making a Section 83(b) election for unvested stock.