The first company under the Amara Raja Group (ARG) was established in 1984, i.e. Amara Raja Electronics Limited (AREL) followed by Amara Raja Batteries Limited (ARBL). Its founder leveraged the presence of his family in Renigunta, a rural village in South India, and chose to start the industry there to create employment opportunities. Preference is given to local population in all ARG enterprises. Despite its strong people orientation, the HR department/function at ARG got strengthened only after Jaikrishna strived to make it central to business. The department's evolution has been demarcated in three phases. The first and second phase saw few initiatives, and during the third phase the HR department was structured according to the Dave Ulrich Strategic HR Model. While this structure had been successful until now, certain sections in ARG still doubted its sustainability.
Researchers have learned to mine a unique set of data that serves as a slow-motion replay of how an organization and its people function: the company's e-mail. Although e-mail analysis has largely focused on internal communications, a new study uses it to examine how employees interact with clients. Researchers studied the e-mail behaviors of teams working with key client accounts at a global professional services firm. Each month during the study, team leaders attended a "virtual mirroring" session in which they were shown key metrics from their team's e-mails--measures of such things as the simplicity of language in the subject line and the speed of responses to client messages. The feedback from these sessions led to positive changes in team members' e-mail behavior and boosted client satisfaction. In an accompanying Q&A, the firm's head of innovation discusses the research and the company's response.
When a research team tracked the help managers gave their colleagues, it discovered something surprising: Offers to lend a hand weren't always appreciated--particularly if they weren't solicited.
In 2018, the chief executive officer (CEO) of Zashita Inc. (Zashita) was contemplating the future strategic direction of his security and electrical contracting firm based in Irkutsk, Russia. The company had experienced outstanding sales growth since its founding in 2013, and this trend was expected to continue into 2019 with the existing business. Despite this, the CEO had identified a new, untapped opportunity in Irkutsk-smart home technology installations-and was trying to determine whether he should risk expansion into this expensive but potentially highly profitable market. Alternatively, he could focus on spending his resources on Zashita's existing business or look elsewhere for new opportunities. The CEO needed to decide on the future strategic direction of Zashita and determine the best course of action for allocating the company's resources to ensure future profitability for the company and its workers.
In 2017, Cathay Pacific Airways Limited (Cathay Pacific) began its largest transformation program in 20 years in response to business hardships the airline had been experiencing since 2016. The program used digital enablement and insight orientation to realign the company's newly defined business focuses and to establish supporting pillars for further development. Information technology (IT) not only played a lead role in this corporate transformation, but it also became increasingly vital to Cathay Pacific's future growth. In 2018, this transformation seemed successful, but important questions remained regarding the development of Cathay Pacific's IT strategy over the previous decade, the company's focus for its IT investments, and the factors that led the company into hardship. As it moved forward, how far could Cathay Pacific go with its digital transformation? How could IT influence the company's future business strategy: could it help Cathay Pacific avoid further turbulence?
Scanteak Corporation was a furniture retailer founded in Singapore in the 1970s. By 2010, it had established more than 100 stores around the world. It had also become the first furniture company to be listed on the Taiwan OTC (Over-the-Counter) Exchange. The two founders had invested a great deal in developing the business and preparing their children to become their successors. In 2003, the two founders' daughter joined the company to help grow the family business, achieving great success in brand promotion and market expansion. In 2010, the two founders' son was asked to help with the business in Singapore or Taiwan but rejected their offer, stating that he would only agree if he could independently run the Japan division of the business, which was in deficit. The two founders questioned whether their recently graduated son could handle the business in Japan, and wondered how to respond to his bold request.
Supplement to case W19053 This part (B) of the case follows Scanteak: The Making of Successors in a Family Firm (A) to disclose how the founders of Scanteak Corporation responded to the proposal put forward from their second child, as described in part A of the case. While part A focuses on the issue of succession at the company, part B follows the business developments and discusses the transfer of management rights and family wealth to the next generation.
In 2016, the promoters of Savourites Hospitality Private Limited, which owned the fine-dining restaurant 6 Ballygunge Place, in Kolkata, were visiting London to explore possible future growth plans. Their foray into the market of Bengali cuisine through 6 Ballygunge Place had been successful and had developed into a strong destination brand. With a view to growing, Savourites' promoters had ventured into newer product offerings and had tried moving into new geographical markets. In order to expand the brand's range, they had launched a pan-Asian restaurant; launched the Bengal Lounge, which revived the Bengali penchant for never-ending chat sessions; and started fixed-menu outlets as variants of their core offering, hoping to tap into the middle-class market. They had also moved into other locations within Kolkata and to other cities. Their various expansions and diversifications had gone well, and the team found that the bulk of the growing consumer base was the Bengali customers that they had hoped to attract. They wondered how to keep the growth momentum going while still appealing to this clientele.
On October 10, 2017, the co-founders of Snapper Future Tech Private Limited (Snapper) were discussing the solutions they had proposed at a recent blockchain business conference. Snapper's initiative envisaged digital solutions for smooth land registration, adding transparency, accountability, and good governance at every stage of the process. Snapper had developed a proof of concept for land records on a private blockchain in a cloud-based environment. Its live demonstration of the proposal was well received by the conference attendees; the challenge was whether the government would consider the solution and engage on a long-term basis with the company for blockchain solutions in land registrations. Would Snapper's journey be acknowledged in the annals of the country's digital revolution?
After finishing a PhD in immunology and working for a few years for a large pharmaceutical company, Eric Lafferty entered an executive MBA program intending to reorient his career toward more meaningful work. Thus he leapt at the chance to work in a significant leadership position at a government agency where he would be in charge of a group that vetted academic proposals to work toward experimental vaccines and drugs. However, he begins to reconsider it all after a series of bad experiences with a direct report whom he cannot fire. The case is designed to surface and explore students' instinctive decision-making and action tendencies around a complicated problem. Thus it is short enough to be read and responded to in class. Students are assigned readings and assignments related to the case after class discussion in which they are encouraged to reflect on their initial responses. The case is quite flexible and would work in any course that deals with leadership, difficult conversations, decision-making, organizational behavior, human resources, and related topics. It is appropriate for a range of levels and audiences, including undergraduate, MBA, and executive education.
How do our senses affect which products we like and don't like? How can products be made more sensorially engaging? What should managers consider when devising sensory marketing strategies? As companies are becoming more aware of consumers' subconscious responses to products and services, they are relying less on traditional advertising and marketing and more on the products, themselves, to influence customers by stimulating an emotional response. This conceptual note defines sensory marketing, its theoretical foundations, and how it can best be used to shape consumer perception and behavior. It explores how deliberate sensory inputs can impact customers on a subconscious level by triggering positive emotional responses to products and brands through sight, sound, smell, taste and touch. The note also discusses advances in neuroscience and neuro-imaging techniques that have enabled more effective use of sensory marketing.
In October 2014 the author arrived at work to find one of his company's big-rig trucks aflame in the parking lot, obviously a victim of arson. This was an extreme manifestation of a corrosive problem: Traeger's culture had become poisonous, characterized by lack of trust, negative attitudes, and a stubborn refusal to collaborate. Very early in his tenure, employees would ignore Andrus when he asked for data, or simply refuse to work together on a project. Once, when he was visiting headquarters, the CFO said he couldn't find any time in his schedule to meet with the new CEO. Although the majority owner had no operating role, he talked daily to people at all levels of the company and was aggressive and abusive. People were afraid of him, but they acted as if he were in charge. After the truck fire, Andrus resolved to start from scratch. He bought out the majority owner, moved the headquarters from Oregon to Utah, carefully winnowed the employees, worked to create a physical environment that feels true to the brand, and built a community of fans and influencers on social media. The company's strategy, marketing, and product line were all overhauled. In just five years, sales grew from $70 million to nearly $400 million.
When business school students are taught strategy, they dutifully study mapping the five forces, for example, and drawing a value net, but they know that game-changing strategies come from somewhere more creative. To generate groundbreaking strategies, executives need tools explicitly designed to foster creativity. A number of such tools already exist, often in practitioner-friendly forms. They take their inspiration more from how our thought processes work than from how industries or business models are structured. Thus they can help strategists invent a genuinely new way of doing business. The author explores four approaches to a breakthrough strategy: (1) Contrast. Identify--and challenge--the assumptions undergirding the status quo. (2) Combination. Connect products or services that seem independent from or even in tension with one another. (3) Constraint. Look at limitations in an organization and turn them into strengths. (4) Context. Consider how a similar problem was solved in an entirely different context--surprising insights may emerge.
Leaders are well aware of the central role that cross-group collaboration plays in business today. So in planning for collaborative initiatives, they think carefully about logistics and processes, incentives and outcomes. And that makes perfect sense. But in doing so they forget to consider how the groups they're asking to work together might experience the request--especially when they are being told to break down walls, divulge information, sacrifice autonomy, share resources, or even cede responsibilities. All too often, groups feel threatened by such demands: What if the collaboration is a sign that they've become less important to the company? What if they give up important resources and responsibilities and never get them back? This is the "collaboration blind spot." To make sure collaborative initiatives are successful, leaders must first identify threats to group security and take steps to minimize them and discourage defensive behaviors. Only then should they focus on process and outcomes.
As start-ups grow into larger, more bureaucratic companies, they're more likely to favor safe, incremental innovation over riskier, potentially breakthrough work. In addressing this problem, leaders often point to their culture as the key to driving radical innovation. But structural levers can also help growing companies avoid the shift from truly innovative to incrementally so. These include the extent to which compensation reflects the outcome of projects as opposed to rank within the organization; ratio of project-skill fit (how suited employees are to the tasks they're assigned) to return on politics (the benefits accrued by networking and politicking); management span (the number of direct reports per leader); and salary step-up (the financial benefits of rising in the hierarchy).
The authors studied almost two dozen major design-thinking projects within large private- and public-sector organizations in five countries and found that effective leadership is critical to their success. They focused not on how individual design teams did their work but on how the senior executives who commissioned the work interacted with and enabled it. To employees accustomed to being told to be rational and objective, design-thinking methods can seem uncomfortably emotive. Being asked not to quickly converge on an answer can be difficult for people accustomed to valuing a clear direction, cost savings, and finishing sooner rather than later. Iterative prototyping and testing call on employees to repeatedly experience something they've historically tried to avoid: failure. Consequently, those who are unfamiliar with design thinking need guidance and support from leaders to navigate the landscape and productively channel their reactions to the approach. The authors have identified practices that executives can use to stay on top of such innovation projects and lead them to success.
For years managers have been encouraged to candidly praise and criticize just about everything workers do. But it turns out that feedback does not help employees thrive. First, research shows that people can't reliably rate the performance of others: More than 50% of your rating of someone reflects your characteristics, not hers. Second, neuroscience reveals that criticism provokes the brain's "fight or flight" response and inhibits learning. Last, excellence looks different for each individual, so it can't be defined in advance and transferred from one person to another. It's also not the opposite of failure. Managers will never produce great performance by identifying what they think is failure and telling people how to correct it. Instead, when managers see a great outcome, they should turn to the person who created it, say, "Yes! That!," and share their impression of why it was a success. Neuroscience shows that we grow most when people focus on our strengths. Learning rests on our grasp of what we're doing well, not what we're doing poorly, and certainly not on someone else's sense of what we're doing poorly.
Conventional wisdom holds that the more contact an operation has with its customers, the less efficiently it will run. But when customers are partitioned away from the operation, they are less likely to fully understand and appreciate the work going on behind the scenes, causing them to place a lower value on the product or service being offered. To address this problem, managers should experiment with operational transparency--the deliberate design of windows into and out of the organization's operations to help customers understand and appreciate the value being added. Witnessing the hidden work performed on their behalf makes customers more satisfied, more willing to pay, and more loyal. It can also make employees more satisfied by demonstrating to them that they are serving their customers well. However, managers should be aware of certain conditions in which transparency can backfire.
In most corporate settings, leaders are expected to inspire and direct employees--leading is something they do to followers. But in professional service firms, the situation is different. These firms tend to be full of powerful, opinionated experts who prize their autonomy. They don't easily accept the role of follower--and may be just as unwilling to act as leaders. A leader's authority is contingent upon their consent, which can be quickly withdrawn. In this context, leadership has to be a collective, not an individual, endeavor. It requires a grasp of three key dynamics: (1) Establishing legitimacy. To be accepted by their peers, leaders have to keep demonstrating an ability to generate revenue. (2) Maneuvering politically. Achieving consensus requires social astuteness and networking skill, and peers must believe the leader is acting in their interests, and (3) Negotiating perpetually. To strike a balance between asserting control and giving peers autonomy, leaders must always negotiate. These dynamics are both in flux and interconnected, and leaders have to constantly manage them.