Guest editorial

Citation

Holtzman, Y., Puerta, M. and Lazarus, H. (2011), "Guest editorial", Journal of Management Development, Vol. 30 No. 1. https://doi.org/10.1108/jmd.2011.02630aaa.003

Guest editorial

Article Type: Guest editorial From: Journal of Management Development, Volume 30, Issue 1

About the Guest Editors

Yair HoltzmanDirector at WTP in New York. Yair co-leads the Business Advisory Services and Research and Development Tax Services Groups. He has over 16 years of experience as a management and tax consultant focusing on research and development in the chemicals and life sciences industries and guiding numerous clients in unlocking the potential of process and product development. Yair has a strong track record of helping clients improve operational performance and drive tangible results to the bottom line. He has published several articles on the subjects of R&D, strategic new product development, accounting, taxation, business strategy, and innovation. During the 1990s he founded and served as the owner/president of Plating Control Systems, an R&D chemical consulting firm. Prior to joining WTP, Yair worked at Deloitte as a manager with the Northeast R&D team, Ernst & Young in the Federal Tax practice, AT Kearney as a consultant in the Operations and Automotive practice, and Pittiglio Rabin Todd & McGrath (PRTM) as a consultant in the Chemicals practice. Yair is a licensed Certified Public Accountant in NY, NJ, IL and NH. He is a member of the AICPA and the NYSSCPAs. Yair holds an MBA degree from Cornell University’s Johnson Graduate School of Management with a concentration in Operations Management and Manufacturing. He graduated with high distinction from Hofstra University with a Master’s degree in Accounting with a concentration in Taxation. He has a BA with high honors in Chemistry from Brandeis University and completed post-graduate work in Chemistry at the University of Pennsylvania.

Margot PuertaDirector of Scientific Affairs at the Feinstein Institute for Medical Research, the biomedical research arm of the North Shore-LIJ Health System in New York. In this role, Margot works with cross-functional internal teams to oversee biomedical research planning and operations of over 175,000 square feet of research space. She provides day-to-day management assistance to more than 20 laboratories and 400 employees. In addition, she is the managing editor of Molecular Medicine, an international peer-reviewed biomedical publication focused on understanding disease pathogenesis at the molecular level. Margot created and now produces Mollie Medcast, a biweekly podcast for the journal (available in iTunes) and is responsible for guiding the development of Molecular Medicine, including web and multimedia content. Prior to assuming these roles, Margot worked as the manager for the Laboratory of Biomedical Science at the Feinstein Institute co-authoring 15 papers on neuroimmunology. Margot holds a BS in Biology from Fairfield University, an MS in Biology from Hofstra University and is currently an MBA (Finance) candidate at the Frank G. Zarb School of Business, Hofstra University.

Harold LazarusThe Mel Weitz Distinguished Professor of Management at Hofstra University’s Frank G. Zarb School of Business. Has was the Dean of that business school for seven years, and for the previous ten years was professor of management at New York University’s Graduate School of Business. He also taught at Columbia University’s School of Business. His MS and PhD degrees are from the Business School at Columbia University. He is a Fellow of the International Academy of Management, President of the North American Management Council, past President of the Eastern Academy of Management and a former President of the Middle Atlantic Association of Collegiate Schools of Business. Has had lectured on management subjects to business and governmental organizations on four continents and served on many corporate boards of directors. He is a founder of Transparency Associates.

It is said that a leader is an individual with commanding authority or influence over others. In tumultuous times we look to leaders to take the reins and guide us through the storm. This special issue of the Journal of Management Development is dedicated to an inspiring leader with more than 50 years of management experience, Dr Harold Lazarus. Dr Lazarus, former dean of Hofstra University’s Frank G. Zarb School of Business, is currently the Mel Weitz Distinguished Professor of Management at Hofstra. He has had lectured on management subjects to business and governmental organizations on four continents and served on several corporate boards of directors. The editors had the opportunity to meet with Dr Lazarus, has graciously agreed to contribute some of his thoughts and insights regarding management as we briefly review the articles in this issue.

Recent economic events have provided opportunities for new leaders and leadership. In the article “Some examples of successful leadership practices during turbulent times,” Dr Joseph Cangemi et al., seize on the idea of negative media coverage surrounding failing corporations and flip it to examine successful cases of leadership during difficult financial and economic times. In lieu of traditional media messages of “if you had done things differently, you might still be in business,” the authors showcase examples and ideas from leaders who led their organizations to a positive end. Included are a set of factors for success generated via a survey of international CEOs. According to Dr Lazarus, “Great leaders listen, learn, and use research findings to build learning environments in which participants enjoy the challenges of achieving useful goals. The greatest management thinkers with whom I have worked were Peter Drucker and Edward Deming. As an American, I believe that the greatest CEO in US history was George Washington. He did the impossible with few resources and against overwhelming odds.”

Commanding and authoritative figures must always heed the guiding principle of the superhero Spiderman: “With great power comes great responsibility.” This sentiment is echoed by Dr Lazarus. “If we search for the greatest good for the greatest number, then effective managers must be fine, not just good, human beings. They must be trustworthy, using power constructively and ethically.” In the article, “Turning values into valuation: can corporate social responsibility (CSR) survive hard times and emerge intact?” author Warren Strugatch addresses the fate of CSR during difficult times. This wide-ranging global movement seeks to produce social and environmental benefits by encouraging good corporate citizenship through adherence to such values as sustainability, corporate transparency, business ethics, workforce diversity, philanthropy, quality, service to community and workforce education. Even as corporations shed costs by the billions, CSR programs are proving surprisingly resilient – at least so far. The reasons are complex, but involve the conflation of CSR with environmentalism, and the apparent genuineness of corporate executive’s commitment to its principles.

It is with interest and some surprise that we observe CSR programs enduring despite this difficult economic climate, when cost saving measures have become the norm. The maintenance of such programs underscores the focus corporations place on balancing core values with global social responsibility. Tangentially related to CSR is the issue of executive pay. Few issues have focused the energy of the public’s reaction to the recent economic crisis more than that of compensation offered to business (and particularly financial) executives. Media attention continues to revolve around whether or not executives are paid too much and how salaries and bonuses of C-level officers may have contributed to or instigated the global recession. In the paper, “Toward a general model for executive compensation,” Dr Mamdough Farid and colleagues review the expanding literature regarding CEO pay and suggest a model for predicting the size of CEO pay based on a larger set of variables than have been previously considered. This new model includes governance and economic considerations but also looks at various social, cultural and psychological dynamics. The authors suggest pay package designs of top executives requires a more balanced approach and in particular see CEO pay as an increasing global and cross-cultural issue.

In the approachable article, “The research and experimentation tax credit: where have we been and where are we going?” Yair Holtzman describes the alternative simplified credit (ASC) and the status of the research and experimentation credit as a whole. Interviews with CEOs, Vice Presidents, and Director-level Engineers and Scientists revealed that while interested in taking advantage of this credit, these executives were unsure how to proceed and often misclassified research and development expenses. The paper reviews how consultants can potentially save a significant amount of tax dollars by carefully examining client records and emphasizes the importance of the ASC in maintaining research and development in the US. This work is directed towards senior management who may not possess highly tax technical knowledge.

In a different vein, Luke Ng explains that most good managers are trained, not born. Managers usually succeed for a number of reasons and in “Best management practices,” Mr Ng identifies nine common management practices found in successful managers. Case examples from successful managers of well-known industry giants are used to illustrate the application of these management practices. The nine personal practices identified can be easily incorporated into a daily routine. With consistent practice, the nine personal traits help train managers to become more effective leaders in driving optimal performance and help motivate subordinates to “get things done effectively.” Dr Lazarus offers his own key takeaway message for managers. “Managers (and non-managers) should look for the beauty in people, places and things and test hypotheses. Do not merely accept popular assumptions. Collect data for testing them.” His advice for young managers: “Determine what the organization needs to have done, then do it well, quickly and, perhaps, even quietly.”

Managing often requires brining together teams to execute a project. Companies may achieve successful gains by using teams and teamwork within and across corporate boundaries. In, “Diversify your teams, make them heterogeneous, and collaborate: because great minds don’t think alike,” Yair Holtzman and Johan Anderberg advocate for the use of a “diversified portfolio” of team member talent. In addition to optimizing efficiency, quality, and innovation, a heterogeneous team may overcome internal resource limitations and achieve a competitive advantage, greater profitability and maximize chances for long-term survival. This paper may serve as a guide for how to create the most efficient and effective work environment that will ultimately result in more successful and profitable operations. With respect to teamwork, Dr Lazarus comments, “As a professor, I used to assemble teams of people with different majors. I currently ask students to choose teammates! I encourage students and clients to do what they love to do and to enjoy the processes.”

Best practices, techniques believed to be more effective at delivering an outcome than any other technique when applied to a specific circumstance, play key roles in every industry and when used effectively can increase efficiency and the bottom line. In “An examination of best practices and benchmarking in corporate libraries,” Carol Simon discusses best practices in corporate libraries. The literature review highlights the absence of generally accepted best practices within the corporate library community. This lack of quantitative data weakens the position of corporate libraries within their organization as they cannot compare their operations to other service units. According to Ms Simon, the absence of quantitative data focusing on corporate library services adversely impacts the future of corporate libraries. Until the professional associations representing the interests of corporate libraries develop, validate and administer a survey of corporate library services and costs, corporate librarians will remain at a competitive disadvantage when discussing the future of the corporate library.

In, “Strategic research and development: it is more than just getting the next product to market,” Yair Holtzman reviews the concept of strategic research and development. The research and development efforts of many companies repeatedly fall short of expectations. Directed at high-level executives and senior management involved with research and development and new product development, Mr Holtzman argues that visionary research not linked early on to excellent operational and governance processes cannot be successfully implemented. Operational excellence may lower costs, improve quality, and reduce process and lead times; but without a strategic R&D vision is unlikely to achieve sustainable success. High performance operating processes in R&D are critical, and when combined with pro-active implementation and governance, will result in successful and strategic R&D, which could serve as a sustaining advantage of companies in the near term and should secure long-term survival.

And finally in this special issue, we include, “The business-government-society relationship: a comparison between China and the US.” This paper by Dr Jiyun Wu and Dr D. Kirk Davidson compares the business-government-society relationship in China with that in the USA. Three cases – the Chinese milk scandal, the beef recall, and the peanut butter scandal in the USA – are presented and contrasted. The tri-part relationship in China is distinguishable from its counterpart in the USA, largely due to its one-party political system and the Confucian tradition. The relative lack of independent watchdogs and advocacy groups and the relative lack of independence of the media make it more difficult for irresponsible behavior by powerful corporations to be exposed in China. Further, paternal local governments can sometimes play an enabling role to companies engaged in irresponsible behavior under their protective wings. With little extant research in the area of corporate social responsibility in the Chinese context, future research can build on this research and further test the relationship with quantitative data. The research provides insights into the context of business operations in China and thus has significant practical relevance.

The effects of the financial crises that marked the final years of this decade have impacted global markets and small town businesses alike. While much of the media focus has been on the particulars of this ongoing downturn, less attention has been paid to the opportunities for new leaders with innovative managerial styles to rise to the top. The articles in this special issue review ideas and offer valuable take-home messages on some of the most pressing and challenging management issues in our current business environment.

Acknowledgements

The Guest Editors would particularly like to thank: Johan Anderberg, BBA, MBA; Nikhio Dahra, MBA Candidate; Veronica Davis, BA; and Shaolei Hong, MBA for their assistance with this special issue.

Yair Holtzman, Margot Puerta, Harold Lazarus