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Chateau Qanafar: Starting and Operating a Lebanese Vineyard
Chateau Qanafar was a small Lebanese winery, operating as a family business since its inception in 2005. By 2015, Chateau Qanafar had managed to produce one of the best wines of the Middle East and obtain international acclaim. However, despite this success, the company's founder understood that the general business environment in Lebanon was characterized by many uncertainties related to a weak institutional environment and high political and economic risk. Moreover, Lebanon represented a very small domestic market for wine producers. Chateau Qanafar's capability to produce well-crafted boutique wine would not be enough to ensure its success in the market. Its founder was also looking to transfer leadership to the next generation of the family. How could the business sustain and grow its operations in the future? -
The Access to Medicine Index (A): Engaging Stakeholders and Attracting Funding
The founder of the Access to Medicine Foundation, based in the Netherlands, had a goal to research and publish a biannual, global survey of pharmaceutical companies and their rankings, in terms of their effects in providing needed medicines to people in developing countries. When the first two iterations of the Access to Medicine Index (ATMI) were published in 2008 and 2010 (see case A), the most prominent challenges were engaging stakeholders—government, pharmaceutical firms, nonprofit organizations, investors, and others—and securing funding to support ongoing research and analyses. <br>In 2016, the founder was preparing for the ATMI’s fifth iteration (see case B, 9B17M011), and he had a three-point focus: to improve engagement with pharmaceutical companies in an effort to increase the effect of the ATMI on companies’ practices; to incorporate the views of patients into the ATMI; and to engage with governments and regulators in the developing countries, where citizens were in need of access to medicines. -
The Access to Medicine Index (B): Making an Impact
Supplement for product 9B17M010. -
IBM Transforming, 2012-2016: Ginni Rometty Steers Watson
To transform IBM for the next technology wave, Ginni Rometty, who became CEO in 2012, led divestment of declining businesses, made acquisitions in digital innovation and cloud computing, formed partnerships with former competitors such as Apple and tech startups, and invested in internally developed cognitive computing/AI platform Watson, a big bet directed at applications for healthcare, education, and cybersecurity. Revenues declined, criticism grew, and challenges of change remained. Watson businesses were new, unproven, and required change in nearly every aspect of legacy operations and culture. To increase speed and agility, Rometty used methods such as online Think Academy, design thinking, and startup contests. In mid-2016, questions remained about the pace and magnitude of change, the scale-up and profitability of Watson, and Rometty's leadership of change. What was left to do? -
Bridj and the Business of Urban Mobility (B): A New Model in Kansas City
In late 2016, Bridj was expanding its digital platform to help address urban mobility problems faced by cities across the country and the world. Its founder and CEO, Matt George, weighed up several possible strategies for growth as he aimed to responsibly build the company. George continued to engage with key stakeholders, and had decided to work in partnerships with Kansas City and Ford to expand Bridj's reach to the midwest. This B case on Bridj allows for a discussion of the company's new options given its public-private partnership with Kansas City, and provides additional examples of how George's strategy to engage with key stakeholders has helped Bridj to grow. -
Battling Bias
Decision-making is one of the few variables that crosses all business functions, affects all companies, and leads to success or failure wherever it is used. However, decision-making is not a science: it’s highly subjective and susceptible to cognitive biases. In an organization, cognitive bias works on individual and group levels, influencing decision-making and outcomes. The results are often errors or bad choices, such as Lehman Brothers’s excessive risk-taking, Toyota’s inadequate response to quality problems, and BP’s decisions to skimp on safety practices. Some errors are unavoidable, but systemic errors can be prevented, largely by addressing the propensity for bias. Types of bias can include overconfidence, confirmation bias, analogy bias, availability bias, and herd mentality (groupthink). While completely removing bias is probably impossible, avoiding systemic errors is possible by taking the following steps: 1) force awareness of the potential for bias; 2) conduct a frank self-examination; 3) critically evaluate the knowledge the organization uses to make decisions; 4) diagnose the cultural codes of groups; 5) reframe problems; and 6) actively seek out contrary viewpoints. However you deal with cognitive bias, begin with acknowledgement that it exists in all organizations and teams. To prevent bias from leading to poor organizational decision-making, inputs for decisions should be tested for quality just like inputs in manufacturing are tested for quality. -
Let’s Get Digitally Physical
For many companies, peak condition is sustained through digital fitness—an ability to invest in and innovate using digital technologies. However, Accenture research has found that many companies are not actively building their digital muscles, even when they are in a strong financial position. When we examined the financial and digital performance of over 300 global companies, we found one category of business that was surprisingly strong on financial performance, especially profitability, but comparatively weak on digital performance. We call this group Business Leaders. Business Leaders have maintained financial strength thanks to their legacy business but, if not renewed over time, the strong legacy of today can become a challenge tomorrow. Accenture research shows that Business Leaders underperform on four broad company activities: a) digital strategy planning and execution, b) digital production and delivery, c) digital customer experience management, and d) digital corporate culture and operations. As a result, Business Leaders need to: 1) get motivated to excel at serial investments, 2) renew their business model, but not alone, and 3) make cultural disruption a routine. Business Leaders may underestimate the impact that nimbler, more tech-savvy competitors can have on their current financial lead position. To get fit to lead in the future, these companies must focus on investment, business model renewal, and a persistent culture of innovation. -
Analyzing Alibaba’s Magic
Can innovations come from China? Some influential people don’t think so. Today, of course, Alibaba is the Chinese innovator that clearly stands out. This paper argues that Alibaba’s impressive rise as a leading innovator on the world stage was driven in no small way by the institutional voids that challenge other firms in the same business environment. Alibaba not only thrived in an institutional void, it was a filler of institutional voids. Alibaba’s success has been attributed to factors including the massive size and rapid growth of the Chinese market, an influx of foreign capital, and an ingenious mix of Chinese and Western business systems. However, there are four reasons why China’s institutional void effect cannot be ignored: Alibaba received selective government support, experienced a strong CEO effect, strongly fit the paradigm shift to e-commerce, and accrued great benefits through ecosystem development. Arguably, developing a broad business ecosystem offers more benefits in an environment with institutional voids. One key tenet of an institutional void is the lack of market information—both for consumers and for businesses—which inhibits effective business operations. However, Alibaba became an “infomediary” for consumers by collecting information to help them make informed shopping decisions. Alibaba then collected consumer behaviour data from its online ecosystem, which is expected to have a significant impact on China’s business world and society. -
A Digital Quick-Start Guide
In the digital space, what is the next big thing? Nobody knows. Nevertheless, today’s companies are under pressure to discover it. But chasing the digital holy grail can jeopardize management’s focus on what’s really important—digital transformation. One can read many books on how companies can accelerate digital transformation. But before you start planning, you should make one simple commitment: build digital into every project. Every opportunity to capture the creative power of digital technologies should adhere to the following four realities of competing in a digital world: 1) Customer experience is vital. 2) Customers are moving targets with short-lived attention and fragile brand loyalty. 3) Business ecosystems co-create value because no single organization possesses all the data, digital skills, and capabilities to win over today’s demanding and dynamic digital customers. 4) Digital platforms boost value co-creation and digital innovation strength is dependent on your ability to combine your digital assets with those of others. Use these four guidelines the next time you appraise an innovative idea or assess a project proposal. -
The Generation Illusion
Rather than giving credence to generational stereotypes that pit, for example, Baby Boomers against Millennials, effective leaders must focus on growing a strong relationship culture within their organization. Understanding and exploring individual personalities helps to grow and nurture human connection, as opposed to ascribing generic characteristics to people based on their date of birth. It’s easy to follow the path of generational stereotypes—not least because the idea is so popular in the media. We are constantly reminded how generation theory explains office dynamics. However, there are better lenses through which to view the complexity of team performance. One of the most commonly cited factors is the idea of collaboration—supposedly a Millennial character trait. But the data doesn’t fit as neatly into the collaborative Millennial construct as one might think. This tendency to transpose technological features onto generational values is one of the flaws of generation theory. A more effective approach is to drive ongoing relationship skill development within the office through formal programs. Interpersonal skill development programs help teams to understand each other and put their varied strengths to work. Although individuals and generations may show a myriad of differences, most people—regardless of age—are similar in their search for meaning and value. When understood and properly harnessed, this fundamental human desire has the power to unite any organization. -
Harnessing Collective Wisdom
Expert crowdsourcing isn’t easy to get right because the success of a virtual community of practice is fully dependent on fulfilling the crowd’s wants and needs. -
Coming Soon: The Conscious Store
Physical retailers of the future will deploy technology to achieve mass customization one customer at a time. -
A Recipe for Good Governance
The trials and tribulations of Dare Foods, along with its well-drafted shareholders’ agreement, show how good corporate governance reinforces the ability of courts to defer to directors’ business judgment. -
RSM Broadcasting: The First Steps of a New Leader
In 2016, a recent business graduate entered the workforce as the manager of a radio station in a small town. His new employer, RSM Broadcasting, led the way in serving small Canadian communities and took steps to provide radio content in the most relevant way possible, but it might be time to quicken the pace. He faced a number of obstacles because the industry had been changing and internal politics made it challenging to enact any of his own ideas for strategic renewal. He had three options: support a current initiative, bolster his own idea for change, or focus on his own development. His newness to the organization, his youth, and his position as a middle manager could get in the way of promoting change in the short-term. -
Trumping Divisive Leadership
America faces a previously unimaginable leadership crisis. And that is why businesspeople fleeing White House advisory councils over Trump’s response to the tragic events in Charlottesville—where a civil rights activist was killed during a violent clash—should be applauded, not attacked. Unfortunately, millions of Trump supporters don’t see a problem with the comfort that racists are taking from his leadership. And because these Trump supporters are also consumers, it is risky business for CEOs to take a stand against the man. Simply put, Trump doesn’t understand or care why there should be no presidential ambiguity when it comes to discrimination. As things stand, the president of the United States does not understand good leadership. His behaviour is dangerously erratic, childish, and divisive thanks to his unhealthy need for applause. Perhaps watching more and more CEOs choose to serve the country and their corporate stakeholders by taking a stand against his administration rather than supporting it will eventually cause Trump to reflect on his flaws as a leader. Either way, when something far more important than profits is on the line, choosing not to be associated with someone who has repeatedly attacked the foundation of American greatness is a sound business decision. -
Edmonton City Centre Airport: A Sustainability Challenge for a Growing City
<p style="color: rgb(197, 183, 131);"><strong> AWARD WINNER - Urban Transition Challenges Award, European Foundation for Management Development (EFMD) Case Writing Competition</strong></p><br>In 1995, many of the flights at Edmonton City Centre Airport (ECCA) were being diverted to Edmonton International Airport. By 2008, ECCA’s two runways required an estimated CA$10 million in capital upgrades and CA$35 million in additional maintenance costs over the next 10 years. In light of these facts, in November 2011, Edmonton’s city council had begun to consider whether maintaining ECCA was feasible or if other alternatives would put the land to better use. The options available included the following: 1) maintain ECCA and the status quo by completing the repairs, 2) sell the property to a real estate developer and generate immediate revenue for other city projects, or 3) close ECCA and have the city redevelop the land for a community project. City councilors needed to find a clear and sustainable solution to the challenges presented by ECCA. -
Merging American Airlines and US Airways (A)
In February 2013, US Airways announced that it would merge with American Airlines to create the world's largest airline. Doug Parker, the CEO of US Airways, would become CEO of the new American Airlines Group (AAL).The case describes a number of critical decisions Parker made and actions that he took in the course of the acquisition integration process. All focused on how best to combine the two airlines' core systems and operating processes as well as the appropriate scope and speed of strategic changes. Now, Parker must decide on the composition of AAL's senior executive team. Should Parker select a team dominated by US Airways executives with whom he has successfully worked for decades? Or should he establish a new team with roughly equal representation from both airlines? Parker's choice will send important signals to employees about the extent to which the transaction will be viewed as a merger of equals or as a takeover by US Airways. -
Jeffrey Dunn and Sesame Workshop: Bringing Big Bird Back to Health
Sesame Workshop was transforming in 2016. CEO Jeff Dunn had reorganized and shifted the iconic institution to respond to digital disruption and a consensus culture. This case examines his efforts to turn Sesame Workshop around. It notes Sesame's storied history and the underlying financial troubles that Dunn confronted upon taking over in 2014. It shows how Dunn's leadership changes, increased communication, new partnership deals, and a focus on digital, sought speed, innovation, and accountability to better fulfill Sesame's educational mission. By 2016, Sesame was in the middle of its change, and Dunn contemplated how best to position the organization for success in the future. -
Reviewing the Review
Despite reviews being a widespread practice, business units still fall short of their goals. A number of organizations use the Balanced Scorecard (BSC) method, although opinions vary on its efficacy. The review process in most organizations suffers from being unfocused and uncandid and using tools for review that are not structurally defined. Reviews must primarily track and assess the relevance of a destination, the direction of progress toward the destination, and the momentum needed to reach the destination before someone else gets there. Reviews should be asking questions on an ongoing basis: What is working and what is not? What needs to be escalated, how, and by whom if intended outcomes are not manifesting? What dependencies are impeding or facilitating the outcomes needed to achieve the goals? Strong strategic reviews are those where leaders and managers have focused on five objectives: 1) assess the manager’s understanding of the measures used to evaluate progress toward a goal; 2) evaluate the manager’s acumen; 3) judge the manager’s ability to navigate market uncertainties, understand customers’ needs, and make decisions; 4) scrutinize the operational plan and the events the team must successfully manage to move toward the goal; and 5) consider the manager’s ability to utilize resources amid unforeseen contingencies. -
When Customers Collide
If your company can be counted among the many that have adopted the language of “internal and external customers” as a way to improve service quality delivery, you may be doing harm to your organization. Far too many organizations promote a popular misconception: that co-workers, other business units, company task forces, branch offices, and company-owned sales and distribution channels are “internal customers.” It is indeed important to treat employees well if you want them to treat customers well, and it is generally agreed that when employees are treated with respect, they put forth more effort and get more job satisfaction. However, employees who are told that they and their fellow employees are the company’s customers—and are rewarded for satisfying co-workers’ expectations as their first priority—will assess their own efficacy by how efficient they are at serving other employees. Service to the bureaucracy becomes the benchmark of excellence. The idea of the internal customer is popular because it is easy to embrace. By comparison, the needs and wants of “external customers” and the paths to creating value for them are abstract, elusive, and difficult to quantify and satisfy. A better approach to guide employees is to adopt the adage “If you are not serving a customer directly, you’d better be serving someone who is.” Never lose sight that unless customers are more satisfied with your offering than with the alternative, they won’t be your customers for long, no matter how satisfied your employees are with the service they provide and receive from each other. Customers, not employees, decide the fate of businesses.