Showing papers in "California Management Review in 1996"
TL;DR: The ambidextrous organization as discussed by the authors is an organization that simultaneously pursues both incremental and discontinuous innovation, and adapts the culture and strategy of an organization to its current environment, but to do so in a way that does not undermine its ability to adjust to radical changes in that environment.
Abstract: Organizations evolve through periods of incremental or evolutionary change punctuated by discontinuous or revolutionary change. The challenge for managers is to adapt the culture and strategy of their organizations to its current environment, but to do so in a way that does not undermine its ability to adjust to radical changes in that environment. They must, in other words, create an ambidextrous organization—one capable of simultaneously pursuing both incremental and discontinuous innovation.
4,234 citations
TL;DR: In this paper, the authors present managers with a framework for measuring the strength of a brand by examining ten sets of measures grouped into five categories: loyalty, perceived quality, associations, awareness, and market behavior.
Abstract: This article presents managers with a framework for measuring the strength of a brand. It specifically examines ten sets of measures grouped into five categories: loyalty, perceived quality, associations, awareness, and market behavior. Employing these measures can be difficult and their results must be used carefully. However, they have the capacity to provide managers with a set of important and extremely useful measurement tools.
3,107 citations
TL;DR: The Balanced Scorecard as mentioned in this paper was developed to measure both current operating performance and the drivers of future performance, and it has been used to measure customer, process, and employee satisfaction.
Abstract: The Balanced Scorecard was developed to measure both current operating performance and the drivers of future performance. Many managers believe they are using a Balanced Scorecard when they supplement traditional financial measures with generic, non-financial measures about customers, processes, and employees. But the best Balanced Scorecards are more than ad hoc collections of financial and non-financial measures. The objectives and measures on a Balanced Scorecard should be derived from the business unit's strategy. A scorecard should contain outcome measures and the performance drivers of those outcomes, linked together in causeand-effect relationships.
1,606 citations
TL;DR: In this paper, the authors present the results of a national survey of environmental manufacturing practices and find that firms and plants that are R&D-intensive and manufacturing innovators possess the capacity to both improve productivity and reduce environmental costs and risks.
Abstract: This article presents the results of a national survey of environmental manufacturing practices. Efforts by firms to improve manufacturing processes and increase productivity create substantial opportunities for environmental improvement. The adoption of advanced manufacturing process innovations provides incentives for the adoption of environmentally conscious manufacturing strategies. Close relationships across the production chain, between end-users and suppliers in particular, facilitate the adoption of this related bundle of environmental and industrial innovations. Firms and plants that are R&D-intensive and manufacturing innovators possess the capacity to both improve productivity and reduce environmental costs and risks.
764 citations
TL;DR: In this paper, the authors present case studies of four discontinuous innovations (CAT scanners (by GE), optical fibers (by Corning), cellular phones (by Motorola), and NutraSweet® (by Searle, now Monsanto) and demonstrate how they are fundamentally different from the conventional process of incremental innovation.
Abstract: Companies that compete effectively over the long run in technology intensive fields exhibit an ability for both continuous (or incremental) innovations and discontinuous (or radical) innovations. The latter, which lead to the creation of entirely new businesses and product lines, pose a unique set of challenges for management. They typically require a long, investment-intensive process, marked by pervasive uncertainty, unpleasant surprises, and no guarantee of success. Conventional approaches to new product development, while appropriate for continuous innovation, are inappropriate and sometimes even detrimental when applied to the more discontinuous regime of innovations. For instance, the familiar admonition to be customer-driven is of little value when it is not at all clear who the customer is or will be, or when the product class itself does not yet exist. This article presents detailed case studies of four discontinuous innovations—CAT scanners (by GE), optical fibers (by Corning), cellular phones (by Motorola), and NutraSweet® (by Searle, now Monsanto)—which explore the process of developing discontinuous innovations and demonstrate how they are fundamentally different from the conventional process of incremental innovation.
758 citations
TL;DR: In this paper, the authors analyze the question of why some firms are more effective than others at exploiting alliance learning opportunities and develop a framework for alliance learning, which incorporates knowledge management processes, a set of organizational actions that establish the basis for accessing and exploiting alliance knowledge.
Abstract: Although many firms enter strategic alliances with specific learning objectives, these objectives are often not realized. Drawing on a study of North American-Japanese joint ventures, this article analyzes the question of why some firms are more effective than others at exploiting alliance learning opportunities and develops a framework for alliance learning. The framework incorporates knowledge management processes—a set of organizational actions that establish the basis for accessing and exploiting alliance knowledge—and facilitating faaors—the conditions that promote a favorable climate for effective alliance knowledge management. The primary obstacle to successfully learning from alliances is a failure to execute the specifie organizational processes necessary to access, assimilate, and disseminate alliance knowledge.
743 citations
TL;DR: In this paper, a framework for developing global strategies for service businesses is presented, which integrates existing, separate frameworks on globalization and on service businesses, analyzes how the distinctive characteristics of service businesses affect globalization and the use of global strategy, and diagnoses which aspects favor globalization and which do not.
Abstract: This article provides a framework for developing global strategies for service businesses. It integrates existing, separate frameworks on globalization and on service businesses, analyzes how the distinctive characteristics of service businesses affect globalization and the use of global strategy, and diagnoses which aspects favor globalization and which do not. It then applies the new framework to numerous industry and company examples, with particular emphasis on the role of information technology.
435 citations
TL;DR: The Chinese family enterprise differs in fundamental ways from the usual Western business firm in terms of its organizational structure, nature of decision making, markets served, level of technology, succession, and public profile as discussed by the authors.
Abstract: The family enterprise is the basic economic unit of the typical overseas Chinese community. Those ethnic-Chinese businesses, in turn, are the pacing element in the fastest growing part of the world—Southeast Asia. The Chinese family enterprise differs in fundamental ways from the usual Western business firm in terms of its organizational structure, nature of decision making, markets served, level of technology, succession, and public profile.
197 citations
TL;DR: In this paper, the authors explore the importance of knowledge management in risk management and demonstrate the need for a more structured approach to transfer knowledge to decision makers before it is needed, enabling the access of information as it was needed, and generating and testing new knowledge about the firm's changing risk management requirements.
Abstract: Three recent failures of risk management—at Barings Bank, Kidder Peabody, and Metallgesellschaft—appear to be due to three underlying causes: dysfunctional culture, unmanaged organizational knowledge, and ineffective controls. The first and the last of these have been extensively discussed in the media. This article explores the importance of the second: knowledge management. It demonstrates the need for a more structured approach to transferring knowledge to decision makers before it is needed, enabling the access of information as it is needed, and finally generating and testing new knowledge about the firm's changing risk management requirements.
186 citations
TL;DR: Based on an in-depth study of U.S.-China joint ventures, Li et al. as mentioned in this paper offered some insights into the performance of such international business relationships, and showed that government can cooperate with LJVs and foreign parent companies, acting as major customers, and improving financial performance by lowering taxes.
Abstract: Based on an in-depth study of U.S.-China joint ventures, this article offers some insights into the performance of such international business relationships. While the conventional literature treats government as an amorphous aspea of the political-legal environment, in this case government is an active participant and influence in the performance of international joint ventures (UVs). It has both a constraining and enabling effect on LJV structure, strategy, and performance. For example, limits can be placed on ownership shares of joint ventures and on prices of the output. At the same time, government can cooperate with LJVs and foreign parent companies by creating partners for foreign parent companies, acting as major customers, and improving financial performance by lowering taxes.
178 citations
TL;DR: The relation between economics and organization has become one in which each informs and is informed by the other as discussed by the authors, and the result has been better public policy and, at times, better business practice as well.
Abstract: Economics and organization theory were once alien fields. However, they have been drawn closer together as economics has broadened its outlook to include organization as an important economizing instrument and as organization theory has come to recognize the value of an economic perspective and approach. Thus, whereas these two fields used to talk past one another, the relation between them has become one in which each informs and is informed by the other. Transaction cost economics is a product of this intellectual synthesis and has helped to illuminate a large set of organizational phenomena that were once regarded as puzzles. The result has been better public policy and, at times, better business practice as well.
TL;DR: In this article, the authors propose a framework that can help international corporations develop tailored environmental policies for their plants based on their environmental risks, such as using different technologies and production processes or being located at sites with different environmental characteristics.
Abstract: Corporations engaged in international business face increasingly complex challenges in preparing environmental management policies for their plants or sites in different operating environments. Rapidly evolving international standards such as ISO 14000 encourage corporations to certify their environmental management systems, but leave them broad discretion in formulating environmental policies. Certification of corporate environmental policies and management systems, however, may not be adequate for companies with plants that use different technologies and production processes or that are located at sites with different environmental characteristics. This article proposes a framework that can help international corporations develop tailored environmental policies for their plants based on their environmental risks.
TL;DR: The quality of both strategic thinking and action rely, in important ways, on the quality of the strategic conversations underway at all levels in the organization, and the design of these conversations is the defining contribution of the strategy-making process.
Abstract: The quality of both strategic thinking and action rely, in important ways, on the quality of the strategic conversations underway at all levels in the organization. The design of these conversations is the defining contribution of the strategy-making process. When these strategic conversations about the design of the future operate successfully at both local and organizational levels, they create a "meta-capability" for strategy-making capable of both furthering intended strategy and at recognizing opportunities for emergent strategy.
TL;DR: This article reviewed the literature on business-government-society relations during the past three decades and described the growth of scholarship on business power, business political activity, the changing political agenda, interest group representation, and changing social expectations and explored in detail three approaches to the study of the political and social role of business.
Abstract: This article reviews the literature on business-government-society relations during the past three decades. It describes the growth of scholarship on business power, business political activity, the changing political agenda, interest group representation, and changing social expectations and explores in detail three approaches to the study of the political and social role of business: a comparative perspective, an emphasis on the contemporary political and social environment of business, and an exploration of the nature of business power. While we have clearly learned much about this important subject, the intellectual fragmentation of this field prevents it from realizing its full scholarly potential.
TL;DR: In this article, the authors investigated governance and managerial characteristics of 171 Russian buy-out firms both before and after the privatization program that occurred between 1992 and 1994, and concluded that the program has resulted in significantly lower employment levels, increased training, little investment, but increased equity ownership.
Abstract: In a short period of time, the privatization of Russian enterprises has been extensive. The process has been successful in meeting important political objectives to establish an irreversible base of individual share ownership through the rapid transfer of vast numbers of enterprises to the private sector. However, major questions remain with regard to the impact of privatization on efficiency and the successful transition to economically viable enterprises. This article investigates governance and managerial characteristics of 171 Russian buy-out firms both before and after the privatization program that occurred between 1992 and 1994. The program has resulted in significantly lower employment levels, increased training, little investment, but increased equity ownership. These changes may enable managers to effect some additional changes, but more recalcitrant organizations will have to await the development of more robust competition and improved systems of corporate governance.
TL;DR: In this article, the authors propose that artists must develop a better understanding of their own business and of the interests, attitudes, and motivations of their customers, so that they can create offerings, services, and messages to which the target audience will enthusiastically respond, without compromising their artistic integrity.
Abstract: The nonprofit performing arts industry in America, along with many performing arts organizations around the world, are facing crises on a variety of fronts. Accordingly, arts organizations must learn new ways to attract the resources they need to sustain their mission and quality. Arts managers must improve their skills in increasing and broadening their audience base, improving accessibility to various art forms, and learning how to better meet the needs of specific audience segments and contributors. To accomplish this, they must develop a better understanding of their own business and of the interests, attitudes, and motivations of their customers. They must professionalize their marketing and management skills and learn to be accountable to all their publics: their artists, their funders, and their audiences. Then they can create offerings, services, and messages to which the target audience will enthusiastically respond, without compromising their artistic integrity.
TL;DR: Perhaps no other article published in management literature has had the impact of Richard Pascale9s piece on the "Honda Effect" that was published in the Spring 1984 issue of the California Management Review as discussed by the authors.
Abstract: Perhaps no other article published in the management literature has had the impact of Richard Pascale9s piece on the "Honda Effect" that was published in the Spring 1984 issue of the California Management Review. This now classic article has stimulated considerable debate over the role and value of corporate strategy in business decision making—which is the subject of this forum. This special collection of essays includes an abridged version of Pascale9s original article ["Perspectives on Strategy: The Real Story Behind Honda9s Success"], an exchange of correspondence between Henry Mintzberg and Michael Goold, and new essays by Richard Rumelt, Michael Goold, and Richard Pascale, who revisits his own original article as well as this whole debate.
TL;DR: In this article, the authors describe and analyze one of Pacific Bell's successful reengineering initiatives, the Centrex reengineering project, and suggest that successful re-engineering implementation does not necessarily meet the popular assumptions underlying BPR.
Abstract: Business process reengineering (BPR), a recently popularized management change strategy, promises radical improvements in the business processes of an organization. This article describes and analyzes one of Pacific Bell's successful reengineering initiatives, the Centrex reengineering project. It suggests that successful reengineering implementation does not necessarily meet the popular assumptions underlying BPR. Reengineering designs tend to be radical and assume change to be clean slate, processbased, top-down directed, and information technology enabled. By contrast, reengineering implementation tends to involve improvements that are incremental, rather than radical. The key to implementation appears to be a continual involvement of front-line employees and managers.
TL;DR: In this paper, the authors argue that motives other than "predicting" often politicize the forecasting and modeling process to the detriment of managerial decision quality and investor confidence, and suggest that better training, formalized forecasting procedures, codes of conduct, clearly defined consultants' roles, and punitive actions can improve the quality of forecasting.
Abstract: Executives think a lot about the future; it drives much of what modern management is all about. The techniques of forecasting and modeling, by their very nature, are designed to reduce the inherent uncertainty of predicting the future. Unfortunately, motives other than "predicting" often politicize the forecasting and modeling process to the detriment of managerial decision quality and investor confidence. Many firms routinely manipulate elements of the forecasting process. Requests by senior management to purposely alter forecasts, backcast from previously established cost and revenue positions, or mis-specify models occur all too frequently. Better training, formalized forecasting procedures, codes of conduct, clearly defined consultants' roles, and punitive actions can improve the quality of forecasting.
TL;DR: With the increasing concentration of stock holdings among a relatively small number of institutional investors, company managers are now viewing their major investors as a strategic asset as discussed by the authors, and they are actively managing relations with their major investor through: courting shareholder support in proxy battles and struggles for company control; bringing the voice of investors into the firm; building enduring, personalized relations with stock analysts and money managers; providing accurate and timely information to major holders; acquiring intelligence on the market, competitors, and stockholders through information trading with analysts; and exercising flexible leadership as shareholder concerns and pressures take fresh directions
Abstract: With the increasing concentration of stock holdings among a relatively small number of institutional investors, company managers are now viewing their major investors as a strategic asset Company executives are actively managing relations with their major investor through: courting shareholder support in proxy battles and struggles for company control; bringing the voice of investors into the firm; building enduring, personalized relations with stock analysts and money managers; providing accurate and timely information to major holders; acquiring intelligence on the market, competitors, and stockholders through information trading with analysts; and exercising flexible leadership as shareholder concerns and pressures take fresh directions Many company executives have learned that working with their major holders—rather than without them or despite them—is required for effective oversight of the firm
TL;DR: In this article, the authors describe recent trends in U.S. labor force composition and likely future changes, focusing on nine widespread myths which deal with the extent to which the US labor force is becoming more diverse; with immigration as a source of labor force diversity; and with the connections between the economic situation of African Americans and immigration and diversity efforts.
Abstract: Despite the recent attention to labor force diversity, there are widespread misunderstandings about current labor force trends. These misunderstandings can have detrimental effects on business and marketing strategies and on personnel policies. This article describes recent trends in U.S. labor force composition and likely future changes. It focuses on nine widespread myths which deal with the extent to which the U.S. labor force—and the U.S. population—are becoming more diverse; with immigration as a source of labor force diversity; and with the connections between the economic situation of African Americans and immigration and diversity efforts. Finally, it notes that the real coming "shortage" will be in a steady supply of quality jobs.
TL;DR: A mission-driven focus in management education can contribute to the diversity and plurality of management education only if the Catholicity and liberal arts mission of its institution is taken seriously as mentioned in this paper.
Abstract: Lyman Porter and Lawrence McKibbin complain that they have found in many U.S. schools of management a "cookie cutter mentality" that discourages a diversity of approaches necessary to make progress in management education. A Catholic school of management can contribute to the diversity and plurality of management education only if the Catholicity and liberal arts mission of its institution is taken seriously. This mission-driven focus entails integrating dimensions of management with liberal learning, faith, profession, and service.
TL;DR: In this paper, the authors propose two metaphors, Strategic Space and the Technology Food Chain, to understand status and trends of the technologies necessary to and sufficient for competitive advantage, and to accurately assess the time and cost of converting market need into market demand for new technology.
Abstract: Creating and applying new knowledge and technology has long been a critical key to financial success. With increasing resource requirements for technological advance and acceleration in the rate of global technology diffusion, strategic thinking about technology must go beyond the simple development of new products or services. There are three common management failings in the strategic management of technology: the inability to understand status and trends of the technologies necessary to and sufficient for competitive advantage; a focus on product technologies and neglect of process technologies, particularly information technologies, in the search for competitive advantage; and the inability to accurately assess the time and cost of converting market need into market demand for new technology. Two straightforward but rigorous metaphors, Strategic Space and the Technology Food Chain, can help to overcome these basic shortcomings in strategic thinking.
TL;DR: In this article, the authors examine the role that global electronic networks will play in shaping future customer responses to product defects and compare the Intel9s experience with the flawed Pentium microprocessor to A.H. Robins9 handling of the design flaw in the Dalkon Shield IUD twenty years earlier.
Abstract: This article examines the role that global electronic networks will play in shaping future customer responses to product defects. It compares Intel9s experience with the flawed Pentium microprocessor to A.H. Robins9 handling of the design flaw in the Dalkon Shield IUD twenty years earlier. The Dalkon Shield flaw remained secret for six years. In the case of the Pentium, experts on the Internet conducted a new form of global, "accelerated" science that revealed the chip9s flaw in less than six weeks. Ultimately, Intel had to accept the Internet9s analysis as the basis for its response. Companies need to objectively assess their vulnerability to this new phenomenon of accelerated science and, if their exposure is significant, they should participate in Internet discussions to establish their presence and credibility to make a quick, effective response.
TL;DR: The authors examines employee relations in Mexico from the perspective of U.S. managers, identifies pivotal features of Mexican employee relations, and offers pragmatic guidelines for managing employee relations south of the border.
Abstract: Low labor costs are a key attraction for companies seeking to establish or expand operations in Mexico. However, the realization of sustainable low costs while maintaining high quality requires managerial approaches adapted to the Mexican business environment. Companies doing business in Mexico need to understand the significant culturally based differences between U.S. and Mexican approaches to employee relations. This article examines employee relations in Mexico from the perspective of U.S. managers, identifies pivotal features of Mexican employee relations, and offers pragmatic guidelines for managing employee relations south of the border.
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