Showing papers in "Strategy & Leadership in 2005"
TL;DR: This article shows how the McKinsey 7‐S model and the balanced scorecard (BSC) model complement each other and suggests that the BSC is not only fully consistent with the7‐S framework, but can also enhance it in use.
Abstract: – This article shows how the McKinsey 7‐S model and the balanced scorecard (BSC) model complement each other., – The developer of the widely used BSC model analyzes and compares the features and functions of the two models., – One can view the BSC as the contemporary manifestation of the 7‐S model, helping to explain its popularity as a practical and effective tool for aligning all the organizational variables and processes that lead to successful strategy execution., – There is no data on the financial impact of the BSC mdel on the companies that have adopted it., – The author suggests that the BSC is not only fully consistent with the 7‐S framework, but can also enhance it in use., – This the first article to compare the characteristics and functionality of the McKinsey 7‐S model and the BSC model.
183 citations
TL;DR: In this paper, the authors interviewed senior corporate managers and reviewed the literature to find the right balance between corporate creativity and efficiency in order to turn innovation into commercial reality, and they found that a key factor in boosting innovativeness is establishing the right organizational climate to nurture the creative potential of employees and make use of their knowledge of customers, competitors, and processes.
Abstract: Purpose – Advising top management how to find the right balance between corporate creativity and efficiency in order to turn innovation into commercial reality.Design/methodology/approach – The author interviewed senior corporate managers and reviewed the literature.Findings – Inventiveness is required in everything that is done by the company, not just in marketing or in new product development. A key factor in boosting innovativeness is establishing the right organizational climate to nurture the creative potential of employees and make use of their knowledge of customers, competitors, and processes. When leveraging the best innovation practices of other companies look to their philosophy and values.Research limitations/implications – More interviews and a study to determine long‐term success factors would be advisable.Practical implications – Key practices: place people and ideas at the heart of management philosophy; give people room to grow, to try and learn from mistakes; build a strong sense of ope...
119 citations
TL;DR: In this article, the authors propose a framework for a suite of metrics that senior managers can customize to track and promote innovation success in their companies, based on three views on innovation: resource, capability, and leadership.
Abstract: Purpose – During the past year, the authors have built a framework for a suite of metrics that senior managers can customize to track and promote innovation success in their companies.Design/methodology/approach – Senior executives can use the suite of metrics to assess their company's innovativeness over time and hence combat the insidious strategy decay that often afflicts a company's business.Findings – The framework combines three views on innovation – resource, capability, and leadership – providing the perspective to develop a suite of metrics for assessing and developing a company's capacity for innovation.Research limitations/implications – The optimal selection of metrics and the optimal value or “sweet spot” of any particular metric will vary from company to company.Practical implications – As more firms develop strategic innovation metrics and a database that validates their relevance, top managers will learn to assess and guide a company's innovation capability more effectively.Originality/val...
104 citations
TL;DR: In this article, the authors argue that strategic thinking is the process of finding alternative ways of competing and providing customer value, and that it should be a continuous process rather than only an annual strategic planning process.
Abstract: Purpose – This author reminds us that strategic thinking is a critical part of every manager's job. Because strategy implies competing and outwitting competitors, so it follows that strategic thinking is the process of finding alternative ways of competing and providing customer value.Design/methodology/approach – Describes how to systematically conduct the search for appropriate alternative strategies. Suggests that this “strategic thinking” should be a continuous process rather than only an annual strategic‐planning process. Explains why coming up with the “right” strategy for a company that might increase stakeholder value, make it a stronger competitor, or find a competitive arena it can dominate can be done only through strategic thinking.Findings – Whether a company has one person, a group, or everyone doing strategic thinking, the important things are that it is being done continuously and that the opportunities, alternative strategies, or different business models are periodically shared with othe...
88 citations
TL;DR: Bain & Company as discussed by the authors conducted a multi-year research project to get the facts about management tool use and found that executives are using more tools for acquiring customers, keeping them, learning more about what they want, and then satisfying and delighting them.
Abstract: Purpose – The past dozen years in business have witnessed an explosion in the use of management tools and techniques. Keeping up with the tools and deciding which ones to use have become an essential part of every executive's responsibilities.Design/methodology/approach – In 1993, Bain & Company launched a multiyear research project to get the facts about management tool use. Over 12 years Bain assembled a global database of more than 7,000 respondents, including 960 this year. They supplement the survey with follow‐up interviews to probe the specifics of tool use in individual companies.Findings – This year, the news is that executives are using more tools for acquiring customers, keeping them, learning more about what they want, and then satisfying and delighting them. They know they need tools to innovate, but they are not entirely sure how to go about it. To free up cash, they are outsourcing like crazy. And they are relying on information technology to run their businesses more efficiently.Research l...
86 citations
TL;DR: In this paper, the authors define innovation leadership and offer a simple classification of innovation leaders based on the focus of their contribution; suggest a broad typology of innovation that reflects both the str...
Abstract: Purpose – CEOs facing the challenge of stimulating innovation must select one or more champions to entrust with that critical mission. Selecting the right manager who will have the leadership skills, charisma and determination to lead a major innovation initiative is one of the most important decisions a CEO has to make. But innovation comes in many different varieties – new product category, new business model, improved customer solution, improved product, process or service offering. So it's appropriate to also ask, “Is a different leadership profile needed for each particular type of innovation?” And also, “How do we choose the best person to lead a particular innovation effort?”Design/methodology/approach – The question, “What qualities does our innovation initiative leader need?” can be addressed in four steps: define innovation leadership and offer a simple classification of innovation leaders based on the focus of their contribution; suggest a broad typology of innovation that reflects both the str...
85 citations
TL;DR: The concept of leadership narrative is the key to managing transformational innovation is proposed in this article, where the authors show how leaders can use narrative to achieve employee commitment to transformational innovations.
Abstract: Purpose
– Offers the concept that leadership narrative is the key to managing transformational innovation.
Design/methodology/approach
– The author has studied the leading innovation theorists and corporate innovation efforts.
Findings
– Transformational innovation is disruptive because it introduces products and services that change the business landscape by providing a dramatically different value proposition. And championing transformational innovation involves going to war with all the elements inside an organization that benefit from the status quo.
Research limitations/implications
– The author's research is primarily anecdotal.
Practical implications
– If leaders, consistently use narrative tools, in combination with thorough strategic analysis, they can show their organization how to tackle the most difficult challenge facing management today – transformational innovation. Examples and a step‐by‐step process are provided.
Originality/value
– First publication of the concept of how leaders can use narrative to achieve employee commitment to transformational innovation.
67 citations
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TL;DR: In this article, McKinsey & Company consultants report on their experience facilitating vision development in nonprofits and extrapolate best practices, finding that most effective visions comprise a compelling, easy-to-understand description of how the nonprofit would like the world to change in the next three to five years, what role the organization will play in that change, and how the nonprofits will measure the success of its role.
Abstract: Purpose – Since nonprofits operate without the feedback provided by profits and losses, their need for a vision is acute.Design/methodology/approach – McKinsey & Company consultants report on their experience facilitating vision development in nonprofits. They extrapolate best practices.Findings – Most effective visions comprise a compelling, easy‐to‐understand description of how the nonprofit would like the world to change in the next three‐to‐five years, what role the organization will play in that change, and how the nonprofit will measure the success of its role.Research limitations/implications – The sample of cases described is small. Surveying a larger sample of nonprofit leaders to ask whether their vision has had positive results would provide valuable insight.Practical implications – Developing a vision can keep an organization focused, increase the ease of performance measurement, help track successes and identify early warning signs of ineffective programs. Clear visions also highlight gaps in...
50 citations
TL;DR: The F.W. Olin Graduate School of Business at Babson College features creativity as one of the early and essential components of its innovative two-year MBA program.
Abstract: Purpose – Describes how The F.W. Olin Graduate School of Business at Babson College features creativity as one of the early and essential components of its innovative two‐year MBA program.Design/methodology/approach – Article reports on the indicators that the program is a success.Findings – For corporations seeking creativity in new hires, MBA graduates who have completed the “Creativity stream” offer increased confidence in their ability to express themselves creatively; willingness to accept ambiguity and the uncertainty of process as part of discovery; openness to alternatives ways of seeing a problem, solution, or scenario; and renewed trust in themselves and their potential as creative thinkers.Research limitations/implications – Employer survey results suggest that there is a link between Babson MBAs’ success at producing more and better creative solutions on the job and their exposure to creative process in the “Creativity stream”.Practical implications – There is only limited evidence that arts e...
48 citations
TL;DR: In this article, the authors introduce an experience-based approach offering a comprehensive new way of developing leaders, which knits together on-the-job experience, life experience, and specific skill development, rather than presenting employees with a smorgasbord of classes and programs that is tenuously linked to career development, succession planning, or business objectives.
Abstract: Purpose – The authors introduce an experience‐based approach offering a comprehensive new way of developing leaders. It knits together on‐the‐job experience, life experience, and specific skill development, rather than presenting employees with a smorgasbord of classes and programs that is tenuously linked (if it is linked at all) to career development, succession planning, or business objectives.Design/methodology/approach – The authors base their conclusions on previous Accenture research and their observations of leadership technology as used by organizations.Findings – Advances in learning models, information technology, and leadership research strongly suggest that new approaches like experience‐based learning hold strong promise in helping companies meet the high performance challenge.Research limitations/implications – The experience‐based approach bridges the gap between practice and performance through creative uses of information and communication technology. Research to validate and show the im...
39 citations
TL;DR: In this article, the authors highlight the management dilemma disruptive innovation poses and examine what the leading management theorists have to offer as a solution, and argue that innovation is a paradox, the solution lies in rethinking the fundamental assumptions.
Abstract: Purpose – Highlight the management dilemma disruptive innovation poses and examine what the leading management theorists have to offer as a solution.Design/methodology/approach – The author examines six leading theories of innovation and three alternatives to disruptive innovation.Findings – The leading theories that try to solve the paradox of innovation don't work and the alternatives to disruptive innovation merely delay having to deal with the dilemma.Research limitations/implications – The author reviewed many theoretical approaches to innovation management and selected six for commentary.Practical implications – The author argues that the theorists are looking at innovation in the wrong way. Because innovation is a paradox, the solution lies in rethinking the fundamental assumptions.Originality/value – First article that examines the logic behind the leading disruptive innovation theories and refutes their advice.
TL;DR: In this paper, the authors examined the successful new product development process practised by these strategic communities and their networks and found that strategic teams at each company formed strategic communities inside and outside the companies that included customers, and then formed networks that transcended the strategic communities' boundaries.
Abstract: Purpose – To produce rapid innovation, Japanese companies have learned to manage strategic communities for new product development. These communities require the merging and integration of different technologies and the coordination of relationships among all levels of management, alliance partners, and customers.Design/methodology/approach – Through case studies of two Japanese companies, the author examines the successful new product development process practised by these strategic communities and their networks.Findings – As the cases reveal, strategic teams at each company – consisting mainly of cross‐functional middle managers from a number of business divisions – formed strategic communities inside and outside the companies that included customers, and then formed networks that transcended the strategic communities' boundaries. In record time, strategic community leaders enabled companies to build new business models aimed at customers and then achieve successful new product development.Research lim...
TL;DR: In this paper, the authors studied the innovation process in modern organizations and found that the most successful firms pursue an innovation strategy termed technology brokering, where they focus on recombining old ideas in new ways.
Abstract: Purpose – The author has spent the last ten years studying the innovation process in modern organizations and found that the most successful firms pursue an innovation strategy termed technology brokering.Design/methodology/approach – How are the objectives achieved? Include the main method(s) used for the research. What is the approach to the topic and what is the theoretical or subject scope of the paper?Findings – Rather than chasing wholly new ideas, these successful firms focus on recombining old ideas in new ways. The results have sparked many technological revolutions and produced a steady stream of growth opportunities for existing businesses.Research limitations/implications – Needs cases showing that technology brokering, and the complementary work practices and people, can successfully execute such a strategy.Practical implications – By transforming traditional R&D organizations through a strategy of technology brokering firms can build competencies for continuous innovation..Originality/value ...
TL;DR: In this paper, the authors defined and tested four practical best practices that firms can use in the ideas-to-market race, in which many of the best and most innovative products and services (and their inspirations) come from new and varied sources.
Abstract: Purpose – With more companies working to innovate across corporate boundaries, protecting intellectual property is becoming a much bigger issue. The authors find that the best way to handle this threat is to face it head‐on.Design/methodology/approach – While co‐sponsoring an innovation awards program the authors saw first‐hand some of the skills and attributes of up and coming innovators in the UK. From observing leading firms they developed practical steps that underpin a successful innovation network and can help protect intellectual property.Findings – The authors defined and tested four practical best practices that firms can use in the ideas‐to‐market race, in which many of the best and most innovative products and services (and their inspirations) come from new and varied sources.Research limitations/implications – The authors offer short snapshot case examples. Longer cases and research over a longer time frame would be valuable.Practical implications – Managers will want to follow these best prac...
AT&T1
TL;DR: Chesbrough as discussed by the authors developed an open innovation model based on the observation that great inventions can come from both inside and outside the company and should then be commercialized both using the current business model and with alternative business models.
Abstract: Purpose – Ask an expert to describe an innovation system that enables companies to successfully advance valuable technologies that fit their current business model – and those that do not fit it.Design/methodology/approach – Strategy & Leadership interviewed Henry Chesbrough author of Open Innovation: The New Imperative for Creating and Profiting from Technology (Harvard Business School Press, 2003). His book is based on numerous research projects he conducted.Findings – He developed an open innovation model based on the observation that great inventions can come from both inside and outside the company and should then be commercialized both using the current business model and with alternative business models.Research limitations/implications – Case studies are needed. Tools are needed for bringing the customer into the open innovation process.Practical implications – Corporate leaders should review and consider the open innovation model as one approach in their search for new growth businesses.Original/...
TL;DR: In this paper, the authors studied the growth strategies and the supporting operations of nearly 650 companies around the world and found that those that can synchronize complex global value chains are up...
Abstract: Purpose – Over the last two years, the authors have studied the growth strategies and the supporting operations of nearly 650 companies around the world. While most have the expectation that innovation will drive corporate fortunes, the research makes it clear that building or restructuring business operations to profitably bring new products and services to market is a top priority only for best performing companies but near the bottom of most companies' priorities.Design/methodology/approach – Explains how top‐performing global companies are investing in the product development capabilities, the supply chain process infrastructure, and the sophisticated information systems needed to support and synchronize innovation across the value chain.Findings – Research on a subset of the survey base (the 300+ larger companies and business units with revenues ranging from US$200 million to US$10 billion and higher) shows that those that can synchronize complex global value chains – the complexity masters – are up ...
TL;DR: Kim and Mauborgne as discussed by the authors considered the concept of value innovation management and examined the ideas and tools they developed in their book Blue Ocean Strategy (Harvard Business School Press, 2005), the product of a successful twenty-year research and consultancy partnership.
Abstract: Purpose – To study blue ocean strategy (value innovation management), which not only reframes the strategic challenge – from competing to making the competition irrelevant – but also provides a series of tools and frameworks to act on this insight in a way that maximizes the opportunity and minimizes the risk.Design/methodology/approach – This interview with Professors W. Chan Kim and Renee Mauborgne considers the concept of value innovation management and examines the ideas and tools they developed in their book Blue Ocean Strategy (Harvard Business School Press, 2005), the product of a successful twenty‐year research and consultancy partnership.Findings – Blue ocean strategy is applicable across all types of industries from typical consumer product goods to b2b. It offers an alternative approach to the existing strategic planning process, one that is based not on preparing a spreadsheet document but on drawing a strategy canvas.Research limitations/implications – The interview gives professors Kim and M...
IBM1
TL;DR: In this article, the authors explore a "world of extremes" and suggest that traditional strategies will not be adequate to cope with trends such as unprecedented customer diversity, market polarization and dominant mega-retailers.
Abstract: Purpose – Advises retailers that traditional strategies will not be adequate to cope with trends such as unprecedented customer diversity, market polarization and dominant mega‐retailers. Explains what capabilities will retailers need to remain relevant to demanding customers. Suggests how retail executives should begin preparing to embrace fundamental change and become truly customer‐centric.Design/methodology/approach – Using scenario techniques to examine retailing in 2010, the authors explore a “world of extremes”. In it retailers will face a consumer marketplace defined by unprecedented social diversity, competitive intensity and market complexity.Findings – As the marketplace polarizes across a variety of dimensions, corporate thinking needs to shift from “bell curves” – where firms try to serve a generic mass market but do not meet anyone's needs particularly well – to “well curves” – where companies drive growth by applying distinct business models in each part of their business to deliver the gre...
TL;DR: In this article, McKinsey & Company consultants interviewed executives who have served as both corporate and nonprofit leaders and found that executives working with nonprofits need to take the time to get to know the organization and all its stakeholders before proposing any new practices or initiatives.
Abstract: Purpose – By introducing business people to the frustrations of leadership roles in nonprofits and showing how executives with corporate experience have dealt with these challenges, the authors provide a guide for volunteers who serve as board members, executives, donors, consultants or partners in the nonprofit sector.Design/methodology/approach – McKinsey & Company consultants interviewed executives who have served as both corporate and nonprofit leaders.Findings – Corporate executives working with nonprofits need to take the time to get to know the organization and all its stakeholders before proposing any new practices or initiatives. They should avoid unilateral decisions – instead involving board, staff and key stakeholders as appropriate.Research limitations/implications – The sample interviewed was small, about a dozen top executives. However, as more corporate executive take leadership positions in nonprofits, there will be an opportunity to survey a much larger sample.Practical implications – Bu...
TL;DR: In this article, the authors encourage top management to recognize the need for adding new value to their organizations and commit to the creation of new internal capabilities for growth via the exploration of their company's strategic frontier.
Abstract: Purpose – To encourage top management to recognize the need for adding new value to their organizations and commit to the creation of new internal capabilities for growth via the exploration of their company's strategic frontier.Design/methodology/approach – Explains how the CEO can select a team and initiate a project to identify strategy frontier options.Findings – The authors’ experience suggests that the team should first explore all areas of future growth potential in and adjacent to their industry, creating a long list of potential options. Identifying a breadth of strategic frontier options is more important than a depth of information on any one option.Research limitations/implications – More case studies of strategy frontier projects in action, with quantitative results, would be valuable.Practical implications – The goal of this frontier team is to identify a portfolio of innovative new business opportunities that exist on the strategic frontier. It will be the responsibility of another, more qu...
TL;DR: In this article, the authors conducted more than 100 nonprofit mergers and interviewed board members and CEOs of nonprofits that have merged, finding that the critical differences between mergers in for-profit and nonprofit sectors occur in the negotiations phase, where board members often play a key role.
Abstract: Purpose – Through research and first‐hand experience with more than one hundred nonprofit mergers in the past decade, the firm has developed a variety of tools to help nonprofit organizations determine whether to undertake merger negotiations, how to facilitate these negotiations, and how to integrate organizations post‐merger.Design/methodology/approach – The authors have conducted more than 100 nonprofit mergers. They also interviewed board members and CEOs of nonprofits that have merged.Findings – The critical differences between mergers in for‐profit and nonprofit sectors occur in the negotiations phase, which is where board members often play a key role.Research limitations/implications – This article addresses the merger process, not the business case. More research is needed on the economic benefits of nonprofit mergers.Practical implications – The article identifies best practices for nonprofit mergers.Originality/value – This article alerts volunteer board members from the for‐profit sector to th...
TL;DR: In this article, the authors advocate putting pricing strategy on the CEO's agenda and consider the new concept of pricing execution, the development of pricing strategy and the implementation of the strategy through a combination of leadership, management practice, and software.
Abstract: Purpose – This article advocates putting pricing strategy on the CEO's agenda and considers the new concept of pricing execution – the development of pricing strategy and the implementation of the strategy through a combination of leadership, management practice, and software – from the point of view of the senior management team.Design/methodology/approach – New software tools give companies a new way of setting, optimizing, and enforcing pricing changes within the organization.Findings – There has been an explosion of applications in the pricing management space. Pricing execution offers both growing and mature companies a lower‐risk approach to revenue, margin, profit, and shareholder‐value growth than innovation and acquisitions.Research limitations/implications – A proprietary 2005 Deloitte study of the available applications concludes that no one vendor offers a complete integrated solution.Practical implications – Using software to improve pricing measurement, combined with better pricing execution...
TL;DR: In this paper, the authors make top management aware of the innovation paradox: their current success depends on doing and improving upon what they now do well, but their future success requires creating entirely new capabilities.
Abstract: Purpose – To make top management aware of the innovation paradox: their current success depends on doing and improving upon what they now do well, but their future success requires creating entirely new capabilities.Design/methodology/approach – One of the authors is director of development at Cisco, a firm that acquires disruptive technology through it's M&A program. The other author is one of the world's leading authorities on innovation.Findings – A critical element of the solution to the disruptive innovation dilemma lies in setting up an autonomous organization that can adopt radically different resources, processes and values.Research limitations/implications – A subsequent article will detail the M&A search for firms with technology needed or disruptive innovation.Practical implications – In a firm with no history of innovation disruption, executives must use their personal authority to create a strategy process that is more emergent than intentional, focus on customers that appear unattractive, an...
TL;DR: In this article, the authors explain how top management can better manage implementation of ERP systems and how to put the best people, internal and external, on the program full-time; establish clear alignment and accountability for target actions and results, top to bottom in the organization; drive a bias for leveraging off-the-shelf resources.
Abstract: Purpose – Companies are once again launching large reengineering projects. Will they repeat the mistakes of the reengineering boom of the nineties? Two veterans offer guidance around the pitfalls.Design/methodology/approach – Many of today's major reengineering projects involve the implementation of an ERP – “enterprise resource planning” system that spans processes from finance and accounting to human resource management to supply chain optimization., based on readily available software packages that can run almost all of a company's standard processes. The authors explain how top management can better manage implementation of these systems.Findings – At a company that recently implemented an enterprise resource planning (ERP) initiative that achieved it business goals the CEO advised: put the best people, internal and external, on the program full‐time; establish clear alignment and accountability for target actions and results, top to bottom in the organization; drive a bias for leveraging off‐the‐shel...
TL;DR: Christensen as mentioned in this paper argues that companies that pay exclusive attention to their current top customers and ignore the first minute signals of disruptive forces emerging in their market will not adopt innovation that will make them successful long-term.
Abstract: Purpose – Interviews Professor Clayton Christensen, who has authored or co‐authored three groundbreaking books that together frame the daunting problems that managers must confront when they lead innovation initiatives.Design/methodology/approach – Strategy & Leadership contributing editor, Dan Knight, asked Christensen about the finding of his research and its implications for managers.Findings – Most managers are not familiar with Christensen's contention that leading companies fail after only a few decades at the head of the pack because they rely on two conventionally accepted concepts: listen to your best customers and focus investments on the products with high profit margins. Companies that pay exclusive attention to their current top customers and ignore the first minute signals of disruptive forces emerging in their market will not adopt innovation that will make them successful long‐term.Research limitations/implications – Christensen alludes to his research methodology and suggest that it is su...
IBM1
TL;DR: In this article, a new tool, CDP modeling, offers companies a combination of traditional market research and unique quantitative modeling can take the guesswork out of why consumers do or do not buy.
Abstract: Purpose – Knowing which of the hundreds of elements that comprise a consumer's purchasing decision are the most important is essential if leaders are to wisely allocate resources and support actions that will have an expedient impact on growth.Design/methodology/approach – IBM Consulting is testing consumer decision process (CDP) modeling in a variety of industries.Findings – A new tool, CDP modeling, offers companies a combination of traditional market research and unique quantitative modeling can take the guesswork out of why consumers do or do not buy.Research limitations/implications – Comparative testing with other consumer decision research tools needs to be done.Practical implications – Achieving the benefits of CDP requires starting with strategic issues like competitive gaps, selecting consumer decisions that provide the best information for this issue, like why consumers choose a particular retailer, and implementing changes based on insights discovered.Originality/value – Armed with insights ba...
TL;DR: In this paper, two leading technology companies, Intel and H-P, illustrate both the challenges that managing mature successful products pose and some of the responses companies need to consider, and they have recognized that the marketplace and the evolving value requirements of customers and potential customers should drive every decision a business makes about what activities to focus on; what innovations to add to products; what to outsource; and when and how to change.
Abstract: Purpose – Two leading technology companies, Intel and H‐P, illustrate both the challenges that managing mature successful products pose and some of the responses companies need to consider.Design/methodology/approach – A major consulting firm studied public data about two firms and consulted with their senior managers.Findings – Both Intel and H‐P have recognized that the marketplace and the evolving value requirements of customers and potential customers should drive every decision a business makes about what activities to focus on; what innovations to add to products; what to outsource; and when and how to change.Research limitations/implications – More studies are needed on selecting the right RD staying competitive is about learning new tricks sooner and...
TL;DR: A recent survey of large and medium-sized companies reported that only 10 percent are highly satisfied with the costs they are saving, and a mere 6 percent are “highly satisfied with offshore outsourcing overall as discussed by the authors.
Abstract: Purpose – Most companies focus on using outsourcing to achieve cost cutting. This article urges them instead to consider outsorcings potential for capability enhancement.Design/methodology/approach – Reports on a handful of companies that place outsourcing – onshore or off – in a strategic context.Findings – Leading companies start by analyzing not just where they can outsource to lower costs and improve quality, but which capabilities are vital to their core business.Research limitations/implications – A recent Bain survey of large and medium‐sized companies reports that only 10 percent are highly satisfied with the costs they're saving, and a mere 6 percent are “highly satisfied” with offshore outsourcing overall.Practical implications – Outsourcing has become so sophisticated that even functions like engineering, R&D, manufacturing, and marketing can be moved outside.Originality/value – The authors show that it's no longer a company's ownership of capabilities that matters, but rather its ability to co...
TL;DR: McCambridge as discussed by the authors discusses the culture of trust at Xilinx, which is key to the company's sustained success as an innovator in the programmable logic segment of the semiconductor industry.
Abstract: Purpose – How des Xilinx Corporation, with worldwide headquarters in San Jose and European headquarters in Dublin, stay on Fortune magazine's top‐ten‐best‐companies‐to‐work‐for list and remain the market leader in the programmable logic segment of the semiconductor industry?Design/methodology/approach – Strategy & Leadership interviewed Paul McCambridge, Vice President of Xilinx to find out what's behind the company's sustained success as an innovator.Findings – Xilinx wants to be on the breakthrough curve and has adopted a higher‐risk business model to gain technology leadership. Xilinx has created a culture that supports taking risks. The culture assumes that if there is failure there will be both learning and the opportunity to provide a solution in the future. The culture of trust is key. And this extends to customers and supply partnersResearch limitations/implications – More interviews about other aspects of Xilinx's strategic management practices, such as strategic planning, will be the subject of ...
TL;DR: In this paper, the authors studied individual nonprofits and confirmed their findings by interviewing their executives and found that while most nonprofits have a good understanding of the direct costs incurred by their programs, many don't account for indirect costs.
Abstract: Purpose – To make resource‐related decisions in a way that maximizes an organization's effectiveness and promotes its mission, nonprofit leaders need to have a clear picture of the full costs of operating their programs and services.Design/methodology/approach – The authors studied individual nonprofits and confirmed their findings by interviewing their executives.Findings – While most nonprofits have a good understanding of the direct costs incurred by their programs, many don't account for indirect costs. Full cost data can provide invaluable input to decisions about how to allocate resources among programs, whether to expand into a new location, and what level of funding is required to sustain the organization's operations.Research limitations/implications – Larger studies are needed to confirm whether nonprofit executives conclude that investing in more accurate cost accounting provides a substantial payoff.Practical implications – Resource‐allocation decisions based on accurate cost data present nonp...