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  • How to Demotivate Your Top Performers: Lessons From Professional Cricket

    Motivation is one of the most studied facets of the management of employees and team members. Countless scholarly papers, articles in magazines, and best-selling books have been written on the subject. The role of coaches in motivating successful sports teams is also a much-loved topic of popular conversation and receives considerable attention in broadcast media and the press. However, almost all of the advice on motivation is prescriptive rather than proscriptive. As far as sport is concerned, the games that get most of the attention in North America are baseball, basketball, football, and hockey, and the rest of the world seems to be soccer mad. Many nations are oblivious to the world's second-most popular sport: cricket. We take an opposing perspective on motivation in this article: rather than instructing how to motivate employees and team members, we suggest four ways to demotivate them. Based on a series of in-depth interviews with some of the world's best professional cricketers, we identify coaching behavior that frustrates and angers them. We use the insights gained to suggest ways in which coaches of all kinds can demotivate. Hopefully, by understanding these behaviors, coaches and managers can strive to avoid them.
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  • Rivalry Between Emerging-Market MNEs and Developed-Country MNEs: Capability Holes and the Race to the Future

    The rise of emerging-market MNEs (EMNEs) often is characterized as a process by which they catch up with the superior resources and capabilities of incumbent, developed-country MNEs (DMNEs). We argue that this characterization needs to be rethought as the requirements for competitive success in global markets are changing. Emerging markets are becoming more important, the value-for-money segment in developed countries is expanding, global retailers are gaining leverage, and the flexibility to deal with economic and political volatility is becoming a key organizational capability. Typically, EMNEs are stronger in these areas than DMNEs. This leads us to frame the competition between EMNEs and DMNEs as a race to the future in which each type of firm has capability holes that it needs to fill in order to thrive in the global economy of the future. We then discuss the strategies that EMNEs and DMNEs have been using to plug their respective capability holes. We hope future studies can apply this framework to analyze rivalry between EMNEs and DMNE in specific industries.
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  • How to Select an Export Mode Without Bias

    Managers of startups and small and medium-sized enterprises (SMEs) tend to view subsidiaries as the preferred international export mode. Yet this type of organization is associated with a high failure rate. Our in-depth interviews with more than 40 managers show that their bias in favor of foreign sales subsidiaries is rooted in unsubstantiated beliefs about control and the superiority of subsidiaries over other export modes. This article details the faulty reasoning that supports these prejudices and proposes a simple method for selecting more profitable and less risky export strategies.
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  • Crisis Leadership in Economic Recession: A Three-Barrier Approach to Offset External Constraints

    An economic recession is a type of crisis originated from external factors that may imperil an organization's survival depending on the intensity and duration of the crisis. In peripheral European countries, such as Portugal, the recent financial crisis had devastating effects on various business activities. As a result, Portugal represents an important case study in examining how some corporate leaders have handled the economic recession successfully. I interviewed 20 corporate managers to capture their perceptions of the leadership traits and behaviors exhibited by their CEOs in guiding their companies through the recession. In economic recessions, negative constraints do not affect the most effective leaders, who instead erect barriers against the high-pressure conditions to create a supportive, positive work environment. In order to achieve maximum effectiveness, leaders must act as blocking agents against the negative social impacts of the economic crisis, including the fragility of trust in organizational life (i.e., a barrier against distrust), uncertainty of the future (i.e., a barrier against uncertainty), and toxic emotions (i.e., a barrier against toxic emotions).
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  • A New Way to Look at an Old Problem: International Joint Venture Partner Selection via Constrained Systematic Search

    Although international joint ventures (IJVs) provide many benefits to multinational enterprises (MNEs), IJVs continue experiencing high dissolution rates; there is a pressing need to re-evaluate the partner selection process for IJVs. In this article, I utilize constrained systematic search (CSS) as the proposed process by which to improve the partner selection process and reduce IJV dissolution rates. CSS is a process MNEs can utilize to gain private information about potential IJV partners. The implementation of CSS can improve the success rates for an MNE entering an IJV in two ways: MNEs can more effectively identify (1) information withholding/misleading behavior of potential partners and (2) complementary resources in potential partners.
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  • Competing with Loyalty: How to Design Successful Customer Loyalty Reward Programs

    For industries with low switching costs, customer loyalty programs (LPs) have potential to drive differentiation and sustain a competitive advantage. However, incentives provided through LPs also have a potential to escalate into costly price wars. In this article, we discuss how to design successful customer loyalty reward programs that bring value to participants and that cannot be emulated by competitors easily. We focus on three distinct aspects of improvement: personalization, reward types, and additional services. Through personalization, companies can leverage the knowledge they already have on their customers to tailor offers that they find relevant and appealing. For the reward structure, we argue in favor of a certain degree of opacity. We also encourage loyalty programs to consider giveaways that are unique and difficult to imitate and to use all the information they have available to provide rewards that fit with each customers'idiosyncratic situation or preference. Finally, competitive LPs should look beyond offers and rewards. In addition to purchases, LPs can reward participants for other desirable behaviors; they can also provide additional services that impose minimal costs on firms, but bring value to customers.
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  • Strategic Decisions in Turbulent Times: Lessons from the Energy Industry

    Most of the firms currently in the S&P 500 probably will not make the list in 15 years. In times of great uncertainty, managers are called upon to make the right strategic choices, preserve core businesses, and prepare their organizations for the future. How can managers make these choices when the industry is under transformation? In this article, we explore how the popular VUCA framework can help to make sense of turbulent contexts and drive the decision making of managers. We study the case of the energy industry, in which traditional business models eroded quickly and dominant players lost their positions. Based on personal interviews with the CEOs of RWE (Germany) and NRG Energy (U.S.), we analyze how these executives led transformation of their organizations. We get immersed in their decision-making processes and depict how the VUCA framework helps them to identify, map, and prepare their organizations to respond to the volatility, uncertainty, complexity, and ambiguity in their industry. We propose a guide for executive managers to navigate through VUCA contexts, taking into account the necessity to introduce short-and long-term responses that prepare organizations and stakeholders for an uncertain future.
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  • Is Transparency a Good Thing? How Online Price Transparency and Variability Can Benefit Firms and Influence Consumer Decision Making

    The internet has empowered consumers and changed the way they search and shop for products and services by increasing the availability and transparency of pricing and other comparative information. However, what is less clear from a managerial perspective is just how transparent pricing information should be. While it might seem that increasing price transparency would reduce consumer search, we find that it may actually increase search and delay. In this article, we review the use of firms'application of price transparency in practice and propose that specific types of information can influence how transparent prices are to consumers, and how such transparency can influence consumer decisions in a way that is beneficial for the firm. We focus on a specific form of transparency: whether or not the consumer knows the range of pricing. We also discuss whether a high variability pricing approach versus a low variability pricing approach influences consumer decision making-and whether this influence is moderated by transparency.
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  • Trustmarks: Strategies for Exploiting Their Full Potential in E-commerce

    Internet-based commerce has undergone explosive growth over the past decade and is expected to keep growing. With the increasing popularity of online marketplaces, trust is seen as a key foundation for consumers' willingness to purchase, in particular, from unknown sellers. While trust has been examined in various contexts, limited focus has been placed on the importance of displaying institutional trust assurances such as trustmarks on retailers' websites. We conducted two studies into how the use of trustmarks impacts consumer trust, consumer risk perceptions, and, consequently, influences consumer purchase intentions. The results of the two studies suggest that the use of trustmarks increases consumer online trust and purchase intentions, as well as reducing their perceived risk. We use these results to inform managerial decision making in e-commerce, particularly for marketers and e-retailers. We provide three important managerial lessons to be learned from our insights. Our implications are important not only for mature e-commerce markets to create a competitive advantage but also for growing and emerging e-commerce markets, where new retailers are trying to establish trust among their consumers to increase market share.
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  • Crossing the Chasm: Leadership Nudges to Help Transition from Strategy Formulation to Strategy Implementation

    Top managers tend to focus on strategy formulation and planning but fail to embrace the problem-solving complexity of strategy implementation. This can lead to implementation failures that are reflected in misaligned organizations that seem to know where they want to go but cannot seem to get there. We posit that one reason for the ineffective transition from strategy formulation to strategy implementation is that planning is associated with a different set of thought processes and emotional experiences than is required for strategy implementation. We integrate research from management (strategy implementation and change management) with that from psychology (self-regulation and nudges) to identify the transition from strategic planning to implementation as a roadblock that prevents effective strategy implementation. We then present six leadership nudges that aid this transition. The first set of nudges are willpower-enhancing nudges that rely on increasing willpower to help transition from planning to implementation: Remove the distraction to plan, develop implementation intentions, and use verbal framing. The second set are desire-reducing nudges that work to decrease the desirability of planning and in so doing facilitate the transition to implementation: Highlight the end game, leverage a crisis, and celebrate small wins.
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  • The Digitalization Triumvirate: How Incumbents Survive

    In an era of increasing technological transformation, the lines among industries, competitors, and companies are blurring as firms and platforms combine to create unique methods for engagement. Survival and growth in a rapidly changing marketplace requires incumbent companies to divest themselves of legacy thinking and to embrace internal innovation that adds value for both channel members and customers. This entails understanding the mechanisms of process digitalization, communications digitalization, and buyer digitalization. It requires incumbent firms to build and innovate on strengths currently possessed in-house and to identify and cover resource gaps. Incumbents also must work to overcome organizational inertia and effectively implement an agile approach for digitalization across the company, channels, and customer triumvirate. In sum, incumbents must: (1) consider and embrace gains from the digitalization of process, communications, and buyer; (2) respect the core business while recognizing that elements of the existing business model must adapt to changing channels and customer expectations; and (3) recognize that digitalization comes in many forms with multiple applications.
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  • A Novel Way to Boost Client Satisfaction

    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.
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  • You Shouldn't Volunteer to Help Your Coworkers

    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.
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  • Traeger's CEO on Cleaning Up a Toxic Culture

    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.
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  • Strategy Needs Creativity

    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.
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  • The Collaboration Blind Spot

    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.
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  • The Innovation Equation

    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).
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  • The Right Way to Lead Design Thinking

    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.
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  • The Feedback Fallacy

    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.
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  • Operational Transparency

    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.
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