Emerald | Strategy & Leadership | Table of Contents

Three proven rules: discovering how exceptional companies think

literatinetwork@emeraldinsight.com (Michael E. Raynor, Mumtaz Ahmed) — Fri, 26 Apr 2013 00:00:00 +0100

Abstract

Purpose – After many years of researching data for thousands of companies the authors identified a population of 377 exceptional companies in two categories: 199 Miracle Workers, or the best of the best, and 178 Long Runners – still exceptional, but at a lower level. This paper aims to examine these two categories. Design/methodology/approach – With the flaws of previous searches for the secret to exceptional corporate performance in mind, the authors began theirs with a radical premise: that what constitutes stand-out performance is not obvious. It is not enough simply to set up a performance benchmark, no matter how demanding it might seem, and see who clears it. Findings – By studying how exceptional companies thought about decisions they made the authors derived three rules that were key to outstanding performance. Research limitations/implications – The methodology behind the research is complex and deserves careful study. It is discussed in several chapters of the authors' new book Three Rules: How Exceptional Companies Beat the Odds. Practical implications – The authors' research suggests that the most profitable course of action is to devote resources to tackling the hard problem of creating anew the non-price value customers will pay for, not the hard problem of how to remain profitable at lower prices. Originality/value – These three rules apply to almost every decision within the purview of senior management. When applying them, the authors conclude that the most profitable course of action is to devote company resources to tackling the hard problem of creating anew the non-price value customers will pay for, not the hard problem of how to remain profitable at lower prices.

Effectiveness at the top – what makes the difference and why?

literatinetwork@emeraldinsight.com (Brian Leavy) — Fri, 26 Apr 2013 00:00:00 +0100

Abstract

Purpose – This article sets out to examine what is different about top leadership and what is required beyond proven professional competence to be highly effective at this level. Design/methodology/approach – The article is a masterclass – essentially a thematic review and synthesis of some of the most influential ideas on the topic from research and practice over the last two decades. Findings – The main conclusions are that: the top job is different, not just a step up, and has its own unique tasks that top leaders need to keep their focus on; effectiveness at this level requires more than generic professional competencies, it also requires finding an individual leadership voice and sense of higher ambition; and effectiveness at the top also requires the development of contextual awareness and sensitivity to find and rise to the right leadership challenge in the right institution at the right time. Originality/value – The practical implications flow directly from the findings above.

Social business: an opportunity to transform work and create value

Fri, 26 Apr 2013 00:00:00 +0100

Abstract

Purpose – This is a report on an IBM Institute for Business Value study, based on responses from more than 1,100 individuals and interviews with more than two dozen executives from leading organizations, that aims to suggest ways organizations can use social approaches to create meaningful business value. Design/methodology/approach – IBM conducted interviews of key executives of companies learning to embed their external social tools into core business processes and capabilities. Findings – The paper reveals that leading firms are using social approaches not only to communicate better with their customers, but also to share knowledge with their suppliers, business partners and, perhaps most important, their employees. Practical implications – Social business tools facilitate engagement in extensive discussions with employees, customers, business partners and other stakeholders and allow sharing of resources, skills and knowledge to drive business outcomes. Executives are concerned because social business represents a different way of thinking about employees, customers and how work is accomplished, as well as the potential risks of increased organizational openness and transparency. Originality/value – Leading firms are rapidly progressing to a substantive transformation in how they work, an approached called social business. Social business can create valued customer experiences, increase workforce productivity and effectiveness and accelerate innovation.

Boeing's offshoring woes: seven lessons every CEO must learn

literatinetwork@emeraldinsight.com (Stephen Denning) — Fri, 26 Apr 2013 00:00:00 +0100

Abstract

Purpose – The author's research using published internal reports and news reports suggests that some of Boeing problems with its innovative 787 Dreamliner aircraft are symptoms of a deeper calamity that has been causing US industry to waste away for decades: flawed offshoring decisions by the C-suite. This paper aims to address this issue. Design/methodology/approach – The paper defines seven lessons about the risks of outsourcing that executives need to learn from observing the problems Boeing is having with the 787 plane. Findings – The paper finds that in analyzing offshoring, firms must get beyond rudimentary cost calculations focused on short-term profit and consider the total cost and risk of extended international supply chains. Practical implications – In contrast to Boeing's practices, what Apple has done has worked amazingly well, because they have the capability to do the perfect prototype in the USA, before it gets offshored to Foxconn. Originality/value – In addition to highlighting the risk of attempting to offshore technological innovation, the paper offers a vision for the future. Success in this new world of manufacturing will require a radically different kind of management. It will require a different goal (adding value for customers), a different role for managers (enabling self-organizing teams), a different way of coordinating work (dynamic linking), different values (continuous improvement and radical transparency) and different communications (horizontal conversations).

What went wrong at Boeing

literatinetwork@emeraldinsight.com (Stephen Denning) — Fri, 26 Apr 2013 00:00:00 +0100

Abstract

Purpose – At the beginning of 2013, Boing's revolutionary 787 airliner suffered a host of problems and then the fleet was grounded because of a fires caused when lithium-ion batteries overheated. This paper aims to look at the way the company managed the risks of innovation and how outsourcing added to this risk. Design/methodology/approach – According to his research, which includes news reports and published internal reports, the author believes that Boeing problems with the 787 Dreamliner that led to its grounding can be blamed on how it went about outsourcing, both in the USA and beyond. Findings – The paper reveals that the 787 involved not merely the outsourcing of a known technology. It involved major technological innovations unproven in any airplane. Practical implications – Some degree of offshoring is an inevitable aspect of manufacturing a complex product like an airplane, but the cultural and language differences and the physical distances involved in a lengthy supply chain create additional risks. Mitigating them requires substantial and continuing communications with the suppliers and on-site involvement, thereby generating additional cost. Originality/value – The author offers a set of recommendations for company executives planning to offshore projects that involve major technological innovations.

A continuous-learning process that updates and enhances planning scenarios

literatinetwork@emeraldinsight.com (Gerald Harris) — Fri, 26 Apr 2013 00:00:00 +0100

Abstract

Purpose – This paper aims to describe how, during the period after the scenarios have been sketched out but before the company leadership reaches the strategy-development or investment-decision stage, a continuous learning process can help planners and senior decision-makers identify and track the unfolding events that are most relevant to the challenges and big issues facing their organization. Design/methodology/approach – In the case example, a web-connected Event, Pattern, Structure (EPS) tool allows all members of a multi-stakeholder Scenario Planning Steering Group, as well as invited experts, to submit news articles, conference reports, research, scholarly articles and other published information into a database that is organized with links to four scenarios and their driving forces. Findings – As the case demonstrates, an ongoing EPS process related to the scenarios and key drivers can support strategic monitoring of the business environment with the scenarios serving an organizing structure. Practical implications – This continuous learning tool is particularly useful for companies that develop scenarios that evolve over long periods of time, a practice that is usually determined by the investment window or marketing cycle of an organization. Originality/value – Research collected in the EPS system can be used to watch for developments that portend operating-environment changes. Planners can generate early indicators that signal whether a particular scenario or trends within a scenario are emerging.

Quick takes

literatinetwork@emeraldinsight.com (Catherine Gorrell) — Fri, 26 Apr 2013 00:00:00 +0100

Editor’s letter

literatinetwork@emeraldinsight.com (Robert M. Randall) — Fri, 26 Apr 2013 00:00:00 +0100

The content management systems opportunity – new strategic marketing capabilities

literatinetwork@emeraldinsight.com (Kenneth Alan Grossberg) — Fri, 26 Apr 2013 00:00:00 +0100

Strategy in the media

literatinetwork@emeraldinsight.com (Craig Henry) — Fri, 26 Apr 2013 00:00:00 +0100