Pete Anderson, the general manager of Mumbai Dairy Company, is facing several difficult but related challenges. Revenues and profits at the Mumbai, India-based joint venture are in decline. At the same time, worker strikes and disruptions across India have become a major issue. Internally, employees seem to be unmotivated and many-particularly Anderson's direct reports-appear to be taking him for granted. Employees blame seasonal conditions as the cause of waning performance. Others are complaining that their compensation is too little given the contributions they are making. Anderson needs a plan of action for his upcoming meeting with his Singapore-based boss.
In 2022, the newly appointed general manager (GM) of the global cookie business at Groupe Aliments Choix must build his business unit in the throes of a major corporate shift in strategy and structure. The newly announced corporate changes are a challenge to the GM because of his unit’s traditional country-centred approach to business. He is under added pressure because he has been given just forty-five days to develop an action plan. His recommendations will include structural changes and targets for building new organizational capabilities. As a new leader in a new position, the GM also needs to assess his own capabilities relative to the challenging tasks ahead.
In 2022, the newly appointed general manager (GM) of the global cookie business at Groupe Aliments Choix must build his business unit in the throes of a major corporate shift in strategy and structure. The newly announced corporate changes are a challenge to the GM because of his unit's traditional country-centred approach to business. He is under added pressure because he has been given just forty-five days to develop an action plan. His recommendations will include structural changes and targets for building new organizational capabilities. As a new leader in a new position, the GM also needs to assess his own capabilities relative to the challenging tasks ahead.
A large body of research has well established that changes in net balances between labor supply and demand can drive competition for human capital. We propose that AI-enabled recruiting tools constitute a force that will intensify the war for talent above and beyond episodic changes in net balances. We also propose that three seismic shifts will further intensify the war for talent by increasing the value of human capital and lowering its switching costs. Lastly, we bridge human resource management and military escalation literatures and examine how three key onset conditions relative to the use of AI-enabled recruiting tools have the potential to spark an arms race for those tools. Finally, we examine the managerial implications of these dynamics so that managers prevail not just in short-term skirmishes but also in the long-term war for talent.
GE Digital started out in 2009 as a center of excellence to enable the digital transformation of services to industrial customers who had previously bought GE hardware. Now it finds itself competing with a variety of other providers. The case explores the basis of its competitive advantage (data analytics) and how it positions itself to succeed in what has become a crowded field.
This case describes the evolution of Lenovo from its origins in China in 1984 through the onset of the coronavirus crisis in early 2020. It focuses on four phases of growth, each bringing massive change and risk. Its most recent change puts the company at the intersection of globalization and the Fourth Industrial Revolution. As challenging as these developments have been, the coronavirus, with its origins in China and worldwide spread, represents a huge new threat to Lenovo and potentially undermines the company's commitment to globalization. The company's supply chain was disrupted, and its exposure to Chinese suppliers raised important questions about the risks of such a base when trying to reach and compete globally. The case raises interesting questions: what does it mean to be a truly global company and are the benefits worth the costs? How can companies fully manage the complexities that emanate from the dual imperatives of globalization and technological change? More specifically, can Chinese technology companies flourish as insiders in the U.S. and Europe? At the same time, does globalization mean that the company is too American to thrive in China? And by extension, what are the longer term implications for Western companies?
AI-enabled recruiting systems have evolved from nice to talk about to necessary to utilize. In this article, we outline the reasons underlying this development. First, as competitive advantages have shifted from tangible to intangible assets, human capital has transitioned from supporting cast to a starring role. Second, as digitalization has redesigned both the business and social landscapes, digital recruiting of human capital has moved from the periphery to center stage. Third, recent and near-future advances in AI-enabled recruiting have improved recruiting efficiency to the point that managers ignore them or procrastinate their utilization at their own peril. In addition to explaining the forces that have pushed AI-enabled recruiting systems from nice to necessary, we outline the key strategic steps managers need to take in order to capture its main benefits.
Lenovo origins date back to 1984 in China. Over time it became the number one PC company in the world. It now seeks to transform and become not just a PC maker but a solution provider to enterprises undergoing digital transformation. The chief HR officer must decide how she will ensure that Lenovo has enough competent leaders to ensure its successful transformation.
Recruiting talent has moved from a tactical HR activity to a strategic business priority. This has been driven by shifts in the source of firm value and competitive advantage and the critical role of human capital in those shifts. Technological advances have moved digital, AI-enabled recruiting from a peripheral curiosity to a critical capability. However, we know little about candidates'reactions to AI-enabled recruiting. Consequently, in this study, we examine the role of social media use, intrinsic rewards, fair treatment, and perceived trendiness on the intentions of prospective employees to engage with and complete digital, AI-enabled recruiting processes. The positive relationships between these factors and candidates'engagement with AI-enabled recruiting have several important practical implications for managers. We also examine the larger implications and make general recommendations to firms about using AI-enabled recruiting technology and tools.
In 2018, Fortune's Global 500 ranking included 111 firms headquartered in China--just a handful fewer than the United States' 126. In 1995, only three Chinese firms made the list; in 2018, three were in the top 10. No wonder some observers predict that China will soon overtake the U.S. as the home to the highest number of Global 500 firms. It's entirely possible that this could happen, but the triumph may be fleeting. In the late 1990s, Japanese firms came close to outnumbering U.S. companies on the list, until a combination of a graying workforce and declining productivity caused them to slide back off. Japan's experience, which is similar to that of China today, provides an uncomfortable precedent for the consequences of a slowdown in domestic growth. To keep their places on the Global 500, Chinese companies will have to develop a global mindset more characteristic of multinationals from small countries like Switzerland, a transformation that has to date eluded most Japanese businesses.
The case describes General Electric's transformation from an industrial manufacturer to an industrial analytics giant. It opens in 2009 when CEO Jeff Immelt decides that GE, a hardware maker, needs to be more capable in software. The narrative traces his early efforts to consolidate and coordinate software capabilities in a central unit (GE Software Center) headed by Bill Ruh in Silicon Valley. It documents the realization of the potential for big data and analytics for customers to which GE has sold industrial equipment for decades. Opportunities related to 'predictive maintenance' seem attractive given the significant economic costs of unplanned maintenance and repair for GE customers. Equipment optimization through analytics also has potential to increase their margins, especially for those that face increased competition and lack pricing power. As GE roars down the runway to becoming the leading player in the digitization of industry,the question is can it reach the critical speed to break free of the tarmac and sustain flight?
Competitors from the developing world are rising fast. Will they come to rule the global economy? Not necessarily, say Insead's Black and Morrison, who argue that today's emerging giants look an awful lot like Japanese corporations in the 1990s. Japan's star has since fallen, and the country no longer dominates the Global 500 as it once did. Drawing on 25 years of research, the authors found that four factors drove Japanese firms' early export growth: strong corporate models and cultures; a domestic market isolated from competition; an agreeable labor force; and cohesive, homogenous leadership. But when the firms moved into foreign markets, those strengths became downfalls. Entrenched in their corporate ways, they were too narrow-minded to look for local insights, and they lacked leaders who had international knowledge. They were also unprepared for contentious overseas labor relations and the sophistication and expertise of their global competitors. To avoid Japan's fate, emerging giants must change their business models, reduce their reliance on protected domestic markets, learn to cope with diverse labor, and shake up their leadership.
Only one year after the grand opening of EuroDisneyland, Robert Fitzpatrick left his position as EuroDisney's chairperson. In April 1993, Philippe Bourguignon took over the helm of EuroDisney, thought by some to be a sinking ship. EuroDisney publicly reported a net loss of FFr188 million for the fiscal year ending September 1992, through cumulative losses through April 1993 approached half a billion dollars. The European park fell one million visitors short of its goal for the first year of operations. In addition to the financial woes weighing on Bourguignon, he was also expected to stem the flow of bad publicity, which EuroDisney had experienced from its inception. Phase Two development at EuroDisneyland was slated to start in September 1993, but in light of their drained cash reserves (FFr1.1bn in May 1993) and monstrous debts (estimated at FF42bn), it was unclear as to how the estimated FFr8-10billion Phase Two project would be financed. Despite this bleak picture, Michael Eisner, CEO of Walt Disney Co., remained optimistic about the venture: "Instant his are things that go away quickly, and things that grow slowly and are part of the culture are what we look for. What we created in France is the biggest private investment in a foreign country by an American company ever. And it's gonna pay off."
In the global economy, having a workforce that is fluent in the ways of the world is a competitive necessity. That's why more and more companies are sending more and more professionals abroad. But international assignments don't come cheap: on average, expatriates cost a company two to three times what they would cost in equivalent positions back home. Most companies, however, get anemic returns on their expat investments. The authors discovered that an alarming number of assignments fail in one way or another--some expats return home early, others finish but don't perform as well as expected, and many leave their companies within a year of repatriation. To find out why, the authors recently focused on the small number of companies that manage their expats successfully. They found that all those companies follow three general practices: 1) When they send people abroad, the goal is not just to put out fires. Once expats have doused the flames, they are expected to generate new knowledge for the organization or to acquire skills that will help them become leaders. 2) They assign overseas posts to people whose technical skills are matched or exceeded by their cross-cultural skills. 3) They recognize that repatriation is a time of upheaval for most expats, and they use a variety of programs to help their people readjust. Companies that follow these practices share a conviction that sustained growth rests on the shoulders of individuals with international experience. As a result, they are poised to capture tomorrow's global market opportunities by making their investments in international assignments successful today.
This is an MIT Sloan Management Review article. Global business today requires leaders to be like explorers, guiding their organizations through unfamiliar and turbulent environments. With markets, suppliers, competitors, technology, and customers around the world constantly shifting, traditional leadership models no longer work. The authors' three-year study across Europe, North America, and Asia indicates that companies seek more global leaders and desire future global leaders of higher caliber and quality. Research results reveal that every global leader needs certain core qualities: exhibit character, or the capacity to build relationships with people from different backgrounds and to act with high ethical standards; embrace duality, or know when and whether to act and initiate change, depending on country or region; and demonstrate savvy, or recognize worldwide market opportunities and understanding firm capabilities. Inquisitiveness--a sense of adventure and a desire to experience new things--must underlie each of these characteristics. Four strategies are particularly effective in developing global leaders: foreign travel, with immersion in the country's way of life; the formation of teams comprising individuals with diverse backgrounds and perspectives; training that involves classroom and action learning projects; and overseas assignments, which serve to broaden the outlook of future global leaders.
The new president of Black & Decker-Eastern Hemisphere, is convinced that he needs to significantly increase the number and quality of managers in the region. One tool available to him is the US-designed Appraisal Development Plan (ADP). After weighing the options, he decided to move forward full speed on the introduction of the ADP, despite concerns over huge cultural hurdles. Shortly thereafter the Manager of Human Resources resigned to take a promotion with a Japanese consumer electronics company in Singapore. Utilizing a senior Human Resource professional transferred from the head office, ADP is implemented. One year later, it was clear that the Management Advisory Committee still faced the challenge of developing the next generation of leaders in the Eastern hemisphere.
The firm's chairman has announced a corporate goal of increasing revenues from $38 billion to $380 billion between 1995 and 2005. Most of this increase is expected to come from new international sales. As a consequence, the firm must add an estimated 1,400 new global leaders to its management ranks. The chairman and his team must determine what these new global leaders should look like and how to develop them.
The general manager of a beverage company must decide what to do about the declining performance of its' Vietnam-based operation. Employees seem unmotivated and lackadaisical about their work and these same workers blame the weather for the poor results.
The president of Bristol Compressors, Asia-Pacific, chaired a meeting of his top management team to discuss the company's ongoing management challenges in the region. The Hong Kong-based team, known as the management committee, was made up of the president and seven other senior functional managers. Despite attractive markets in the region, Bristol Compressors' growth in Asia-Pacific had not met expectations. Some individuals attributed this to a slow entry strategy, weaker markets than anticipated in the region, unexpectedly fierce competition and ineffective strategy and execution. However, over the last two years a consensus was emerging among committee members that there was a lack of management depth that was contributing to poor performance. Although everyone was convinced that something had to be done, a specific plan of action had not yet been developed. The president charged the committee members to come up with a set of recommendations to increase significantly management bench strength in the region. This case focuses on the challenges of building a high performance organization in a short period of time in Asia.
After three years of investments, Bristol Compressors' performance in Asia-Pacific has been disappointing. The lack of management bench strength is perceived as the number one problem for the company. This case focuses on the challenges of building a high performance organization in a short period of time in Asia.