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How to Use Language That Employees Get
To communicate in a way that resonates with your workers, you'll have to get to know them first. -
Surviving the Boss from Hell (HBR Case Study and Commentary)
A project manager with a talent for creating dashboards, David is frustrated by his repressive, micromanaging boss, Thaddeus - aka "the Commodore." Thaddeus drones on about the high point of his own (now stalled) career, calls unnecessary last-minute meetings, and tries to one-up his direct reports - while bending over backward to honor an intern's filing job. David has managed to impress Irving, the EVP of Finance Europe, enough to receive a job offer, but it's a lateral move with no increase in pay. What should he do? Three experts comment on this fictional case study in R0909B and R0909Z. He should stay where he is, at least for now, says Gini Graham Scott, an author, consultant, and motivational speaker. Meanwhile, he can form a supportive network of colleagues, make a special effort to find pleasures outside of work, and even attempt - non-confrontationally and subtly - to improve his relationship with the Commodore. Brad Gilbreath, formerly a human resources manager and now an assistant professor at Colorado State University, advises David to escape from Thaddeus in the interest of his own health. Research shows that bosses' behavior can lead to high blood pressure or psychiatric problems in their subordinates. By learning how to set boundaries, says Lauren Sontag, the president of a consulting firm specializing in executive coaching, leadership development, and talent management, David might be able to improve his relationship with Thaddeus. But accepting Irving's offer would provide more room to maneuver and advance. Alternatively, David might propose a dashboard "center of excellence" to serve both Thaddeus and Irving. -
Death by Information Overload
The value of information in the knowledge economy is indisputable, but so is its capacity to overwhelm consumers of it. HBR contributing editor Hemp reports on practical ways for individuals and organizations to avoid getting too much of a good thing. Ready access to useful information comes at a cost: As the volume increases, the line between the worthwhile and the distracting starts to blur. And ready access to you - via e-mail, social networking, and so on - exacerbates the situation: On average, Intel executives get 300 e-mails a day, and Microsoft workers need 24 minutes to return to work after each e-mail interruption. Clearly, productivity is taking a hit. Technological aids can help, such as e-mail management software for you, a message-volume regulation system for your organization, or even more sophisticated solutions being developed by Microsoft, IBM, and others. Yet, battling technological interruptions on their own turf only goes so far. You also need to change your mind-set, perhaps by seeking help from personal-productivity experts or by simply accepting that you can't respond to every distraction that flits across your screen. Similarly, organizations must change their cultures, for instance by establishing clear e-communication protocols. In the end, only a multipronged approach will help you and your organization subdue the multiheaded monster of information overload. The secret is to manage the beast while still respecting it for the beautiful creature it is. -
The Coming Battle over Executive Pay
Wall Street may have ignited the outrage over executive compensation, but it's now affecting all public companies. Believing that corporate pay practices encourage excessive risk taking, policy makers feel compelled to intervene, and shareholders are angrily demanding input. The battle will rage in boardrooms and annual meetings for years, and it won't be pretty. A bill that will give shareholders a "say on pay" is winding through Congress, and if passed, could affect how U.S. companies pay key employees - and perhaps open other operational decisions to shareholder approval. That would hamstring companies competitively, some argue. Complicating matters, the experts are deeply divided on how to tie pay to performance. Moreover, past attempts to regulate pay spurred companies to find loopholes, such as bonuses, deferred compensation, and huge hidden perks that weakened the link between compensation and company results. Though the answers aren't clear, the practices of household products maker Reckitt Benckiser offer a potential model. Reckitt has overhauled compensation throughout its ranks, linking performance-based pay for all executives to economic value added to the business. No one receives a bonus for individual performance; a separate long-term incentive program rewards individual performance with shares and options, which vest only if the company grows earnings per share by more than 30% for three years. This simple system helped Reckitt turn itself around and generate strong growth - and the executives, in turn, have been well paid for their efforts. -
Surviving the Boss from Hell (HBR Case Study)
A project manager with a talent for creating dashboards, David is frustrated by his repressive, micromanaging boss, Thaddeus - aka "the Commodore." Thaddeus drones on about the high point of his own (now stalled) career, calls unnecessary last-minute meetings, and tries to one-up his direct reports - while bending over backward to honor an intern's filing job. David has managed to impress Irving, the EVP of Finance Europe, enough to receive a job offer, but it's a lateral move with no increase in pay. What should he do? Three experts comment on this fictional case study in R0909B and R0909Z. He should stay where he is, at least for now, says Gini Graham Scott, an author, consultant, and motivational speaker. Meanwhile, he can form a supportive network of colleagues, make a special effort to find pleasures outside of work, and even attempt - non-confrontationally and subtly - to improve his relationship with the Commodore. Brad Gilbreath, formerly a human resources manager and now an assistant professor at Colorado State University, advises David to escape from Thaddeus in the interest of his own health. Research shows that bosses' behavior can lead to high blood pressure or psychiatric problems in their subordinates. By learning how to set boundaries, says Lauren Sontag, the president of a consulting firm specializing in executive coaching, leadership development, and talent management, David might be able to improve his relationship with Thaddeus. But accepting Irving's offer would provide more room to maneuver and advance. Alternatively, David might propose a dashboard "center of excellence" to serve both Thaddeus and Irving. -
Surviving the Boss from Hell (Commentary for HBR Case Study)
A project manager with a talent for creating dashboards, David is frustrated by his repressive, micromanaging boss, Thaddeus - aka "the Commodore." Thaddeus drones on about the high point of his own (now stalled) career, calls unnecessary last-minute meetings, and tries to one-up his direct reports - while bending over backward to honor an intern's filing job. David has managed to impress Irving, the EVP of Finance Europe, enough to receive a job offer, but it's a lateral move with no increase in pay. What should he do? Three experts comment on this fictional case study in R0909B and R0909Z. He should stay where he is, at least for now, says Gini Graham Scott, an author, consultant, and motivational speaker. Meanwhile, he can form a supportive network of colleagues, make a special effort to find pleasures outside of work, and even attempt - non-confrontationally and subtly - to improve his relationship with the Commodore. Brad Gilbreath, formerly a human resources manager and now an assistant professor at Colorado State University, advises David to escape from Thaddeus in the interest of his own health. Research shows that bosses' behavior can lead to high blood pressure or psychiatric problems in their subordinates. By learning how to set boundaries, says Lauren Sontag, the president of a consulting firm specializing in executive coaching, leadership development, and talent management, David might be able to improve his relationship with Thaddeus. But accepting Irving's offer would provide more room to maneuver and advance. Alternatively, David might propose a dashboard "center of excellence" to serve both Thaddeus and Irving. -
Who's With Me? False Consensus and Ethical Decision Making
Members of organizations are naturally motivated to consider the attitudes and opinions of their peers in order to gauge others' reactions to their decisions and assess where they stand relative to organizational norms. However, the authors found strong evidence that people are not very good at estimating the percentage of others who agree with their choices, and that this tendency has major implications for ethical decision making. Specifically, they argue that people fall victim to a False-Consensus Bias, wanting to believe that others are more like them than not. While ethical pundits may predict that 'loners' would be more likely to violate ethical standards because they lack insight into others' attitudes and have fewer colleagues to whom they can turn for help or advice, the authors suggest that the social butterfly, rather than the social outcast, may actually be more likely to erroneously assume that their ethical judgments are in line with the normative view. In a workplace environment, the potential danger is that employees who act in ways that most others consider unethical may confidently believe that their actions are in line with the socially-shared ethical standard when making decisions. And as we have seen, the end-results can be widespread and severe. -
Leveraging Diversity Through Psychological Safety
When interpersonal risks loom large in the moment, human beings often fail to act in their own or in their organization's best interest. When uncertainty clouds peoples' tentative thoughts and views - views that may be at odds with those of others' - they often take the path of 'reduced interpersonal resistance' to avoid conflict and confrontation. This can happen when a lot is at stake (a patient's health, an aircraft's safety, a costly takeover) and when not much is at stake (a small improvement idea is not communicated to the individual who could act on it). Either way, the silence, along with the incomplete thoughts that lie behind it, inhibits team learning in organizations that depend upon such learning for their ongoing viability. As a result, in virtually every organization, failed collaboration occurs countless times throughout the day, usually without much conscious attention. Diversity of three particular types exacerbates these tendencies. The authors explain how 'psychological safety' can enable team diversity to be better and leveraged, allowing a team to reap the benefits associated with diverse sets of skills, experience, knowledge and backgrounds in ways that would not be possible if team members were unwilling to take the risks associated with speaking up. -
New Challenges for Corporate Governance
According to the author, we are in the midst of a tectonic-plate movement in the financial world that is shaking the 'real' world quite dramatically. The purpose of the article is not to review the causes or longevity of the 2008-2009 finance crisis, but to explore the curiosity that in the world of publicly- traded companies, boards of directors have once again let society down. Complicating matters is the fact that, just as a re-balancing of the directors' role was taking shape post-Sarbanes Oxley, expected reforms in the areas of risk management and compensation will once again challenge director effectiveness. While boards will never be able to predict the future, the author argues that they can become more effective instruments for helping management devise plausible and actionable strategies if they do three simple things: take charge of their own agendas, manage their time effectively against three time horizons (past, present and future), and continually assess their performance against best practices. -
Towards an Accountable Capitalism
With many still reeling from the ripple effects of the 2008-09 global financial crisis, it has become abundantly clear that the principles and ethics of business are fundamental to economic success. Recovering from this systemic failure and ensuring that it never repeats itself will require new thinking about the types of institutions on which a successful economy depends, and more importantly, on the relationships between those institutions. The authors' aim is not to lay out a detailed framework for bank solvency, accounting regulation or corporate governance; rather, it is to clarify the principles on which any responsible market system will rest, and how these might be applied. It is also to suggest various actions that market participants can take to prevent similar disasters. The authors show that, in many ways, an effective economy is like an effective political system: it has checks and balances, accountabilities, responsibilities, information flows and cultures. They go on to describe the five principles of 'accountable capitalism', and the four levels of stakeholders required to make it a reality. -
Note on Organizational Culture
Many people are skeptical of the idea that organizational cultures exert any real effects on individual and organizational behavior. One reason for this suspicion is that people often use the word "culture" as a catch-all category for "the way things are done" in a firm. But "the way things are done" can often be discussed in much more concrete terms by focusing on specific aspects of the formal organization, such as the structure of the incentive plans in place, the formal grouping and linking principles encoded in the formal organizational structure, and the established routines and operating procedures in the firm. This note examines organizational culture, focusing on the effects of strong cultures and how such cultures are created and maintained. -
Implementing Positive Organizational Scholarship at Prudential
Positive environment in the workplace is usually assumed to be beneficial to employee morale, but not always a necessity for achieving the firm's strategic goals. Positive Organizational Scholarship (POS) is a field of study that focuses on how leaders and organizations can achieve extraordinary results while focusing on positive deviance. In April 2004, Prudential Financial acquired CIGNA's full-service retirement business and various challenges in integrating the two firms became present. The challenges included aligning the cultural aspects of the organizations. This case describes how senior management led the merger of Prudential and CIGNA while implementing various POS practices throughout the organization in hopes of creating a successful culture for the staff, compelling results for the clients, and a strong value for the shareholders. -
Managing Your Own Human Capital: Executive Interview Exercise (2009)
This note contains instructions for an exercise in which students interview C-level executives on how they have managed their careers. -
Whole Foods: Balancing Social Mission and Growth
In 2009, Whole Foods stands at a crossroads. Their incredible growth over the past 25 years has vaulted them into the ranks of the largest US supermarkets and they have arguably led to the widespread acceptance of natural and organic foods in the United States. Yet more recently, Whole Foods has come under attack as having abandoned their prior social mission as they have increasingly sought to deliver economic growth. The case begins with their acquisition of Wild Oats, at that time their largest competitor and describes many of the mechanisms they have used to successfully integrate prior acquisitions. Furthermore, the case shows the significant tension between their social mission and their far-flung supply chain, while discussing some of the tradeoffs that exist in the development of the "industrial organic" model. Finally, the case 'Whole Foods: Balancing Social Mission and Growth' also allows for students to assess CEO John Mackey's new model of "conscious capitalism." Is Mackey's idea a workable model, or just an excuse for Whole Foods extensive growth while avoiding progressive practices such as a unionized workforce? -
SK Telecom: Pursuing Happiness through Corporate Social Responsibility
Since 2006, SK Telecom has worked to develop strategic corporate social responsibility programs that are aligned with its business operations and corporate mission. The case tracks the original assessment process the company went through and successive organizational design efforts to align its CSR strategy and implementation architecture. In 2009, the company is going through reorganization, and the protagonist is considering how well the existing structure of SK Telecom's CSR efforts supports its strategy. The key dilemma he is faced with is whether to change the design of the CSR organization, or perhaps revise the CSR strategy to better match the existing organizational architecture. -
Mid-Atlantic Professional Development Center: Lengthening the Half-Life of Learning
How can executive education providers and purchasers best facilitate the transfer of program learning back to a participant's workplace setting? All too often, busy schedules, dealing with one crisis after another, and superseding priorities hinder such a transfer. This case is best used in a course where issues of education program design and/or adult learning are topics of interest. Similarly, it can also be a valuable addition to a course focusing on creating a learning organization and/or talent development. -
Life Stories of Recent MBAs
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Life Stories of Recent MBAs: Losing Their Way
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Life Stories of Recent MBAs: Coping with Crucibles
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Life Stories of Recent MBAs: Values and Ethical Challenges