Emerald | Strategy & Leadership

A tipping point for foreign outsourcing economics

Stephen Denning — 2011-12-30 00:00:00.0

Abstract

Purpose – The paper sheds light on the changing economics of foreign outsourcing, and the risks being run by companies that engage in the practice. Design/methodology/approach – The author surveys the history of foreign outsourcing over the last several decades and the disastrous impact that it has had on manufacturing in the USA. The paper also reviews more recent developments reported in the press. Findings – Given rapidly rising costs and risks in host countries, the “outsourcing dividend” is now questionable. At the same time, firms can take advantage of new opportunities in digital fabrication. Research limitations/implications – Further research is needed on methodologies for accounting for the full costs and risks of foreign outsourcing. Practical implications – Firms should think long and hard before launching foreign outsourcing. Firms should also re-examine the root cause of the practice, i.e. pursuit of short-term profits rather than delighting customers through continuous innovation. Some firms will need to consider retrieving manufacture that was previously outsourced in a foreign country. Firms should also be exploring the new opportunities represented by digital fabrication. Originality/value – The paper summarizes what is known about the economics of foreign outsourcing and questions the continuance of this widespread business practice, which has devastated manufacturing in many developed countries. It presents a further reason why firms need to shift from traditional management to radical management.

A leader's guide to internal corporate venturing 2.0

Michael E. Raynor — 2011-12-30 00:00:00.0

Abstract

Purpose – The paper aims to address a pervasive leadership problem: why do so many companies have such a difficult time adapting the innovation approaches that work so well in the venture capital (VC) ecosystem to the corporate environment? Design/methodology/approach – The paper looks at why innovation approaches of the VC environment do not work so well in the in the corporate environment. Findings – The paper finds that the root cause lies in the very real differences between established companies and start-ups that no amount of organizational redesign or process creativity can overcome. Therefore corporations should not attempt to be VCs. Shifting from selecting ideas to “shaping” them is perhaps the largest break from existing standard practice. Most organizations have any number of ideas floating around, some of which keep resurfacing year after year without ever seeming to get any meaningful traction or to be successfully dispatched. The reason is very often that there is a kernel of truth somewhere in the idea but it has proven impossible to develop a viable business plan. Research limitations/implications – This paper is based on research that the author used for his new book, The Innovator's Manifesto. Practical implications – The first step is to focus the corporation's efforts on opportunity areas that are strategically relevant. The practitioner should begin by identifying those high-level spaces that will define the future of thier industry. Originality/value – The paper reveals that better innovation begins with a fundamentally different approach to an internal innovation strategy. Leaders of corporate innovation initiatives should replace the oft-repeated mantra of “fail fast” with the new motto “learn fast.”

Using stories for advantage: the art and process of narrative

Doug Randall, Aaron Harms — 2011-12-30 00:00:00.0

Abstract

Purpose – The paper aims to warn executives that their strategy initiatives are at risk every time the message delivered in their speeches is not convincing or clear. The responsibility for producing a successful narrative is on leaders to transfer meaning and motivation, rather than on the audience to receive and interpret a speech. Design/methodology/approach – The paper focuses on four elements when crafting effective narratives: audience, purpose, acts, and flow. Each of these elements involves a fundamental choice. The paper proposes that understanding these elements will enable to messages to be put across using the right architecture for persuasion. Detailed points on each are offered. Findings – The paper finds that, when crafted with emotion and logic, potent stories can motivate people to adopt a challenge or change their behavior. Research limitations/implications – The authors are veteran scenario developers whose clients include prominent corporations and innovative federal agencies. Their how-to advice is based on field experience. Originality/value – The paper proposes that effective narratives – stories – that win both hearts and minds – enable leaders to achieve difficult goals.

Emerging market strategy: innovating both products and delivery systems

Bala Chakravarthy, Sophie Coughlan — 2011-12-30 00:00:00.0

Abstract

Purpose – Low customer purchasing power and lack of adequate infrastructure are two difficulties that restrict opportunities in any emerging market. This paper seeks to describe how to overcome these hurdles. Design/methodology/approach – The paper blends two different perspectives on emerging markets: unearthing opportunities at the bottom of the pyramid, and coping with institutional voids, to offer a unified framework and illustrate it with examples. Findings – In order to fully leverage the opportunities afforded by emerging markets, companies need both product and business-system innovations. The former is needed to serve customers at price points that they can afford and the latter to reach them in the market and to offer them additional services that have the potential to justify a price premium or at the very least will build brand loyalty. Research limitations/implications – The proposed strategy has its own risks. But there are potential payoffs as well. Further research is needed to assess these tradeoffs. Practical applications – The article explains how companies that learn to offer combinations of product and business-system innovations can dominate the emerging markets they enter. Originality/value – The article provides a model showing how companies can fully leverage the opportunities afforded by emerging markets,

Masters of fit: how leaders enhance hiring

Preston Bottger, Jean-Louis Barsoux — 2011-12-30 00:00:00.0

Abstract

Purpose – Recruiting is a key aspect of building a leadership team. But hiring the right senior executives is not easy and can prove very costly when it goes wrong. This paper aims to address this issue. Design/methodology/approach – This paper provides leaders with guidance on how to add value to the hiring process by improving their recruiting diagnostics. Findings – The paper focuses on the concept of fit and unpacks the different strands: fit with the job, fit with the leader, fit with the team, and fit with the organization – not just with the current needs of the organization, but also with its emerging talent requirements. Research limitations/implications – Based on extensive discussions with senior executives and leaders and their answers to informal surveys, the paper also draws on published interviews with high-profile CEOs. It considers the types of questions that leaders must ask and the cues to listen for when assessing fit. It also proposes questions designed to gauge the authenticity of a candidate's responses. Finally, it reminds leaders of their responsibility to provide candidates with the right information to make informed decisions. Practical implications – Hiring errors have expensive consequences and leaders must continually improve their hiring diagnostics by paying as much attention to recruitment failures as they do to learning in other domains. Originality/value – This paper explains how leaders who become more effective at hiring can be “masters of fit.”

A reality check for corporate leaders: when managers don't respect their bosses

Marius Pretorius, Ingrid le Roux — 2011-12-30 00:00:00.0

Abstract

Purpose – The paper endeavors to determine the reasons why key managers fail to win the respect of their direct reports. Design/methodology/approach – Junior and middle managers were asked to judge why managers generally fail as leaders and what they think the consequences are when there is leadership failure. They were prompted to consider their own managers first. Their responses were categorized, ranked and reported. Thereafter a framework was developed to explain the consequences to better understand the impact of leadership failure. Findings – Managers fail at leadership as a result of poor posture, lack of “people skills”, unfocused thinking, failed communication, not giving encouragement and support, lack of expertise, lack of experience and insight as well as lack of vision and direction. The consequences influence the individual, team, organization and leadership within the organization through the feelings that they create and the subsequent actions that followers take. Research limitations/implications – The findings indicate mainly subjective evaluations and it was not possible to distinguish between general perceptions and potential personal issues and “gripes” of the respondents. Practical implications – Leadership failure is a fact, but to learn from it is crucial. This can be done through training but also requires that leadership should be measured to give feedback and sensitize leaders about its effects. Originality/value – The reported consequences of leadership failure contain severe penalties for organizational performance if not acknowledged and addressed.

Consumer foresight: the futurist’s alternative to science fiction

2011-12-30 00:00:00.0

Crafting good strategy is hard work and involves tough choices

2011-12-30 00:00:00.0

Quick takes

2011-12-30 00:00:00.0

A short history of Strategy & Leadership and the strategic management community that supports it

2011-12-30 00:00:00.0

Our fortieth anniversary!

2011-12-30 00:00:00.0

Strategy in the media

2011-12-30 00:00:00.0