Managers need to think creatively about ways to improve organizational performance. We explore one such tool. Popular business books that offer unique takes on important topics can serve as an effective tool to engage workers and lead them to new understandings. In particular, we discuss the key insights for organizations offered by ten classic and popular bestselling business books. Each one offers enduring lessons of value for employees interested in helping their organizations become more successful.

In a 2013 Business Horizons article, we described the serious legal problems that can arise when companies develop corporate wellness programs, and outlined ways in which companies can minimize their financial risk. Recently, the landscape changed: For the first time, the Equal Employment Opportunity Commission asserted that several wellness programs violate the Americans with Disabilities Act. In this installment of Organizational Performance, we explain the battles that are taking place along this new legal front and suggest steps companies can take to best ensure that their financial positions are not undermined by their wellness programs. In particular, we recommend (1) ensuring that wellness programs actually improve employee health; (2) revisiting whether programs are truly voluntary; (3) being cautious about including dependents in wellness programs; (4) collaborating with disabled employees to meet their needs; (5) providing clear, written explanations when asking for medical information; and (6) taking extra precautions to ensure that medical information is confidential.

Mergers and acquisitions (M&As) are an important tool for improving a firm's competitive positioning and performance. Despite M&As' promise, however, they often fail to meet performance goals. Challenges often arise when managers try to integrate two companies' information technology (IT) systems, and the difficulties encountered often create both short- and long-term performance problems for companies. To help address these challenges, we highlight important issues that managers involved in M&As must consider. We also present some best practices that managers should follow to improve the odds of successful IT integration.

By 2017, higher education is expected to be a $2 trillion industry worldwide. Within this huge economic engine, the boards of trustees that provide governance to universities and colleges face a complex challenge in that they must serve a variety of stakeholders. Without effective governance, an academic institution's performance is likely to suffer. Penn State University is plagued by an ineffective board of trustees. As a complement to past work that has documented this board's unwise and costly decisions, we examine how five design issues--board size, board composition, fiduciary responsibility, term limits, and transparency--helped create a culture in which poor choices were more likely to occur. We discuss why the board's recent self-imposed reforms are inadequate. We then offer more substantive reforms that could fix the Penn State board's flaws. In particular, we recommend that academic boards should be (1) small enough to allow full participation of all members, (2) composed such that no one stakeholder group can dominate decision making, (3) designed to eliminate actual and perceived conflicts of interest, (4) governed by term limits, and (5) appropriately transparent in their strategic decision making and communications. We leverage these principles to propose a reduction of the Penn State board from 30 voting members to 19. More broadly, other academic boards might benefit from undergoing a self-analysis based on the Penn State case.

In this organizational performance article, Penn State alumnus Steven Fink-dubbed the 'Dean of Crisis Managment' for his pioneering work in the field-discusses how Penn State's board of trustees mishandled the Jerry Sandusky scandal. Basing his opinions on years of crisis management for some of the world's most prestigious companies and organizations, Fink presents an argument for how Penn State's board of trustee's reaction to the accusations against Sandusky amplified the media-driven crisis. Coach Joe Paterno's firing and a lack of control over an independent investigation created a series of horrific crisis management and communications blunders, which to this day has left a negative view of Penn State in the mind of many. Beyond the criticism, Fink offers examples of well-managed crises and suggests how Penn State could have better managed the crisis.

Crafting a compensation package for an organization's chief executive officer (CEO) that will help the firm maximize its performance is a vexing challenge for a board of directors. Management theory offers boards several practical hints. A board can put its CEO and the firm in the best position to be successful by (1) creating strong incentives for the CEO to act in the firm's best interest at all times; (2) benchmarking a CEO's performance and compensation relative to that of very high performing CEOs in the industry; (3) diagnosing and responding to CEOs' feelings about equity relative to their peers; (4) paying a CEO with uniquely valuable knowledge, skills, and ability at the top of the market; (5) offering retention incentives if a proven performer with unique skills is leading a company; (6) resisting the temptation to simply mimic the compensation packages that work for leading firms; and (7) considering candidates' social ties when recruiting a new CEO.

From outside a firm, strategy making usually appears to be a top-down process whereby the CEO and top management make decisions that the rest of the firm must then implement. Sometimes, though, the ideas underlying strategic moves originate with lower level employees. Can employees really shape strategy? That often depends on crafting the content of the sales pitch.

All executives would like their organizations to perform better, and most seek ways to make that happen. This paper focuses on how supply chains-- the series of activities through which products and services are created and then distributed to customers-- can enhance firm performance. For the last couple of decades, most firms have emphasized maximizing speed or minimizing costs within their supply chains. In the current business landscape, however, a broader approach is needed. We describe the main advantages of developing "best value supply chains" as a tool for enhancing performance. These chains differ from traditional chains in important ways. Best value supply chains are used by organizations as a central element of strategy, not simply as a means to move materials. Rather than focusing primarily on speed or cost, best value supply chains are designed to deliver superior total value to the customer in terms of speed, cost, quality, and flexibility. Our contention is that organizations that develop best value supply chains will enhance their performance. We support this contention with examples from leading firms that reflect a best value approach.

All executives would like to see their organizations perform better, and most search for tools that can help make this happen. For decades, human resource managers have believed that their function enhances performance. This contention has been met with skepticism on the part of executives, however, who wonder whether funds allocated to the human resource function are good investments. Dozens of studies have examined this issue, but their inconsistent results have provided no conclusions. To resolve a long-standing and controversial question - does human resource management matter for organizational performance? - we take stock of the available evidence. Based on data from over 19,000 organizations, we conclude that human resource management adds significant value for organizations. In addition, the value added is strongest when human resource systems are emphasized rather than individual practices, when human resource management decisions are tied to strategy, and among manufacturing firms.