Business Strategy Series

Sustainable performance increase and strategic turnaround management: current corporate restructuring experiences in the Romanian market : Table of Contents

Christian Bachmann — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – Assuming that “change” is an ongoing, ordinary business condition, this paper seeks to introduce turnaround management as an ongoing management task to secure competitive advantage. Design/methodology/approach – The paper briefly reviews the impact of market turmoil on successful corporate management with particular reference to the Romanian market. It includes key learning based on structured, qualitative interviews of executives (corporate CEOs and leading corporate banking managers). Building on it, the paper comments pitfalls out of several emprical case studies at Eastern European companies, lost in a deemed “ever-lasting growth” trap while losing grip over their true roots of competitive advantage. It assumes that turnaround management and sustainability are not mutually exclusive corporate paradigms during times of incisive economic recession. Findings – Ongoing turnaround management can be a successful key to achieve sustainable corporate performance improvement. Research limitations/implications – Turnaround refers to multiple stakeholders, market dynamics and corporate culture; hence it differs in different contexts. This might result in a slight limitation to generalizing the findings to other organization types. Replicating analogue research in different market contexts and corporate cultures would be a beneficial follow-up research pattern. Practical implications – Practical implications are ongoing turnaround management targets to anticipate corporate crisis. It includes multilateral perspectives (corporate executives' view, organizational support, external influencing forces, other stakeholder perspectives) and operates at different management levels (strategic scenarios, operative scenarios, decision and implementation management, monitoring and adapting). Mere cost reduction based management practices prove insufficient to maintain competitive advantage, even in times of incisive market turmoil. Originality/value – The paper provides insights on different dimensions of turnaround management and the way it sustainably enhances corporate performance. It distinguishes its view from the frequently reactive and mainly cost-cutting-based character of turnaround management in management literature.

Human service sector nonprofit organization's social impact : Table of Contents

Deborah Kelly, Alfred Lewis — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – Given that most nonprofit organizations are viewed as inefficient and unresponsive, and the survival or growth of the organization is not proof of its ability to improve social conditions, this study aims to examine the nonprofit organization in terms of its ability to be a change agent, reducing needs rather than meeting them and tackling underlying causes of problems. The significance of the social entrepreneur for this study was to provide the definition for the highest possible level of social impact by a human service sector nonprofit organization. Design/methodology/approach – The research population for this study was composed of 501(c)(3) public charities in the P20 National Taxonomy of Exempt Entities (NTEE) category with annual income between $100,000 and $10,000,000. The NTEE code P20 corresponds to the category human service organizations; nonprofit organizations in this category serve people in the USA with a broad range of social services. The GuideStar database was used to gather information for the sample. The database includes 1.7 million NPs registered in the USA. The data are based on the Internal Revenue Service Form 990 filed annually by all 501(c) organizations with gross receipts of $25,000 or more. The total number of P20 organizations in the GuideStar database in the stated income range was found to be 2971. The total number of responses to the survey was 105, of which 99 were fully completed and usable, representing a response rate of 8.5 percent. Findings – These findings support conclusion from prior research which defined high impact nonprofit organizations as those who created social change by focusing on the difference they could make in the communities by thinking and acting in new ways to work within the pressures of the environment. Research limitations/implications – Similar to other studies, this paper concluded that there was no easy measure of tool to effectively assess the performance of nonprofit organizations. Practical implications – It was found that the human service sector nonprofit organizations in the study adopted more strategic orientation in order to empower those being helped to become independent. Originality/value – This paper codified human service sector nonprofit organizations into specific categories to measure the impact on the micro and macro environment.

The strategic value of sustainable stakeholder management : Table of Contents

Pieter Klaas Jagersma — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – The purpose of this paper is to explore the relationship between sustainable stakeholder management and reputational capital (of banks). Design/methodology/approach – In-depth interviews with top executives of global banks, corporations, hedge funds, World Bank, IMF, SEC, ECB and politicians. Findings – A bank's overall reputation is a function of its reputation among its various stakeholders in specific categories (e.g., product quality; customer service; financial performance; handling of environmental and societal issues; intellectual capital, etc.). Building a name that matters involves maximizing all characteristics. There is a very strong consensus across our research population that sustainable stakeholder management is required. The interviewees selected four outstanding “stakeholder management banks”: Santander (Spain), Rabobank (The Netherlands), HSBC Bank (UK) and Nordea (Sweden). Research implications/limitations – Building, sustaining and defending a solid stakeholder management reputation is a crucially important aspect of bank management, but it is an area where understanding could be developed much further. The focus of this study is on the strategic value of sustainable stakeholder management. However, superior operational effectiveness is at least as important a source of competitive advantage as sustainable stakeholder management. Practical implications – The ability of a sustainable stakeholder management reputation to deliver proven value flows straight to the bottom line. It is senior management's responsibility to manage the bank so as to develop and maintain a solid sustainable stakeholder management reputation. The strength of a bank's name depends on how well it has fulfilled its promise to stakeholders over time. Originality/value – Future leadership in banking will require significant commitment to sustainable stakeholder management. The “reputations to restore” motto provides the main rationale for banks to build a sustainable stakeholder management mindset. In doing so, they preserve market positions, margins, and organizational vitality.

Successful executive selection in recessionary times : Table of Contents

Douglas Reiter — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – The purpose of this paper is to review successful executive selection strategies in recessionary times. Design/methodology/approach – The author has spent 32 years in the profession of executive selection and management consultation. The methodology is based on that body of work. Findings – Successfully acquiring C-level executives can be more difficult during a recession than upticks in the economy. Practical implications – Executive selection processes require more rigor in recessions, because the result of bad decisions may be an existential threat to the organization. Originality/value – The paper provides an analysis of the executive selection process during a recession, with a description of steps to take to increase the likelihood of a successful result.

Turning the tables on performance reviews: how to create a better process that empowers, energizes and rewards your employees : Table of Contents

John W. Myrna — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – The purpose of this paper is to share findings from consulting engagements on performance reviews. Design/methodology/approach – A case-study method was used to demonstrate the obstacles to what maintains many organizations. Practical implications – The paper outlines deliberate steps that will transform the performance review process by shifting responsibility to the employee. Originality/value – The paper provides new insights on effective performance reviews.

Exploring the impact of the board of directors on the performance of not-for-profit organizations : Table of Contents

Dominic Mwenja, Alfred Lewis — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – This paper aims to examine the impact of board of directors on the performance of not-for-profit (NFP) organizations. The study also aims to utilize the six dimensions of effective board performance as suggested by Chait et al., using the theoretical explanations of the resource dependency theory, the agency theory, and the group/decision processes theory. By explaining how these board activities influence organizational performance, we can begin to understand the importance of board influence in determining organizational effectiveness as measured by organizational performance. Design/methodology/approach – For the purpose of this study, organizational performance attributes are used in line with the strategy used by Nobbie and Brudney. The measurement used includes the perception of board members' view of the overall success in meeting organizational goals, increase or decrease in the number of programs offered by the organization, improvement in the quality of service offered by the organization, and the level of satisfaction by the clients with the level of service provided. Findings – The survey revealed that the strategic and the political dimensions have a stronger relationship with the perceived organizational performance in nonprofit organizations as compared to the other dimensions. Research limitations/implications – Given that the majority of the respondents (30) of the study served in religious organizations, this may have skewed the results toward a certain direction that is difficult to ascertain until other studies compare results across different NFP classifications. This suggests that it is important to repeat such a study with a much diverse group of NFPs in addition to measuring other board and organizational dimensions such as board size, executive perceptions, and organization size, and age. Practical implications – The efforts to link board effectiveness and organizational performance will remain tenuous at best. This is an illusive phenomenon that will continue to elude researchers as long as the dimensions of board effectiveness and organizational performance remain perceptual. The need to understand the strategic orientation of NFPs governance is even greater as these organizations continue to play a major role in the lives of ordinary people in various communities around the world. Originality/value – In order to understand the effectiveness of the board in NFPs, this study examines three theoretical perspectives that can be utilized to connect the different dimensions of board performance and organizational performance. In previous research, Chait et al. examined the practices of board members at independent colleges and identified six competencies of effective boards. The identified dimensions are: contextual: effective boards understand and take into consideration the culture and norms of the organization they govern; educational: effective boards ensure that their members are knowledgeable about the organization and the board's roles, responsibilities, and performance; interpersonal: effective boards nurture the development of their members as a working group, attend to the board's collective welfare, and foster a sense of cohesiveness; analytical: effective boards recognize the complexities and subtleties of issues and accept ambiguity and uncertainty as healthy preconditions for critical discussions. They raise doubts, explore trade-offs, and encourage differences of opinion; political: effective boards accept as a primary responsibility the need to develop and maintain healthy relationships among major constituencies; and strategic: effective boards help their organizations envision a direction and shape a strategy for the future. They anticipate potential problems and act before issues become crises.

Making garden variety creativity a strategic priority : Table of Contents

Milton Mayfield — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – This paper aims to outline a process for establishing and implementing strategic priorities to enhance worker garden variety creativity – a type of creativity that improves direct worker outcomes such as enhancing operational efficiencies and flexibility. Design/methodology/approach – The paper presents process suggestions that are based on existing research and practical understanding of best practices for improving worker creativity in typical workplace settings. Findings – The paper finds that organizations need to maximize worker creativity at all organizational levels in order to maintain the flexibility necessary for today's turbulent economic climate. Also, there are concrete steps organizations can take to develop this creativity. Research limitations/implications – This process is not designed to increase high-level creativity (such as developing new microchips), and is not appropriate for moving organizations forward in such a direction. Practical implications – Most organizations are better served by increasing more prosaic outcomes that are improved through garden variety creativity. As such, the vast majority of organizations will benefit by finding ways to improve garden variety creativity. Originality/value – This paper makes a contribution to the literature in terms of understanding how organizations can strategically focus on worker creativity improvements, and how this focus can be translated into managerial actions.

Intrapreneurship: the role of social capital – empirical evidence and proposal of a new model of intrapreneurship and its relationship with social capital : Table of Contents

Abbas Monnavarian, Mostafa Ashena — Sat Nov 14 08:00:19 GMT 2009

Abstract:
Purpose – This study aims to investigate the role of social capital (SC) (and its dimensions i.e. cognitive and structural) in intrapreneurship by developing a model. Design/methodology/approach – The study considered SC to examine its impact on intrapreneurship. By using construct validity four factors were examined for intrapreneurship. In this analysis, structural equation modeling was used. Findings – Findings indicate that there are positive relationships between Sc (and its dimensions i.e. cognitive and structural) and intrapreneurship. This study also shows that structural dimension of SC is more important than cognitive dimension, and innovation is the most important factor among the other factors. Research limitations/implications – For wider applicability of the findings, the study should be expanded to a broader geographical. Also longitudinal analysis of the relationship between constructs should be performed to determine if there is a time lag in construct correlation. New conceptualization will be beneficial to further study SC and intrapreneurship influence on the overall organizational performance. Practical implications – Organizations that nurture trust and reciprocity (cognitive dimension of SC), open and quality communication (structural dimension of SC) are conducive to intrapreneurial activities. Originality/value – This paper extends prior research on intrapreneurship by proposing four new dimensions to indicate how SC can have positive impact on the nurturing intrapreneurship in organizations.