Articles

Litigation, arbitration, mediation, mini-trial -- choosing from the menu of dispute resolution processes can be difficult. Ertel argues that, instead of choosing from available options, managers should consider building their own. Each dispute has its own history and characteristics that will dictate the most appropriate resolution process and settlement. In this article, he elaborates a series of steps for developing this process. By thoroughly understanding the nature of the conflict, managers can prescribe remedies and lead their organizations toward a solution of mutual gain.

Japanese success with some management practices may depend on cultural factors that are not present in the West. But that is not true as far as continuous improvement programs are concerned; CIPs were developed in the United States long before they were introduced into Japan by U.S. trainers working for the post-WWII occupation authorities. Schroeder and Robinson synthesize the fascinating history of improvement programs, from the early "awards scheme" of a Scottish shipbuilder to the present day. They propose four fundamental principles that can help managers build the competitive advantage no one can steal -- a constantly improving, highly productive, committed workforce.

Have you ever tried to introduce new technology on the plant floor? Just a guess: everything that could go wrong, did. You developed an action plan, but it proved virtually useless. Of course it did, say these authors. With all the possible problems that can arise, no plan that addresses specific contingencies is adequate. What you need is a plan that emphasizes organizational learning. By systematic learning from every angle, during all phases of implementation and well after, you can not only implement the technology successfully, you can continuously improve all your business processes.

Most managers recognize that good service is a direct result of having effective, productive people in customer contact positions. You need winners at the front lines, not just warm bodies. But most service companies perpetuate a cycle of failure by tolerating high turnover and expecting employee dissatisfaction. Schlesinger and Heskett explore the reasons that so many managers have trouble breaking this cycle. They spotlight a number of companies that are developing winning customer service teams, including one that pays twice the industry average to its front-line employees while its sales and profits have soared. Instead of submitting to the cycle of failure, they argue, managers should take advantage of ways to break it, and get their organizations onto the cycle of success.

Some companies have more than just a competitive advantage in customer service, they have unwavering customer loyalty. How do they do it? The authors argue that the key to providing superior service is understanding and responding to customer expectations. Through their research, two different kinds of expectations emerged, both of which can change over time and from one service encounter to the next for the same customer. By responding appropriately to these expectations, managers can be on their way to developing a “customer franchise.”

When someone asks, "What is your bottom line?" few negotiators tell the truth. How much bluffing is ok?

Managers know that the customer's impression of an organization is important. And sometimes companies attempt to determine just what that impression is. They conduct ad hoc surveys and focus groups. But too often the data is insubstantial, or difficult to analyze, or even inaccurate. Barich and Kotler introduce the concept of "marketing image" and describe a system of image management: designing a study, collecting data, analyzing image problems, modifying the image, and tracking responses to that image. They argue that only a systematic approach will yield useful and accurate information that a company can translate into action.

Let's say you run a U.S. corporation that sells widgets to Germans. The deutsche mark drops against the U.S. dollar. What happens? You can sell the same number of widgets, but when the marks are converted into dollars, you get fewer of them in your pocket. And, if your widgets are produced in the United States, your production costs are higher than for your German competitor. Nothing you can do about it, right? George and Schroth argue that you can do something about it, but it takes systematic planning. In this article, they describe the increasing effects of foreign exchange rates on the global market and ways to plan for them. By making foreign exchange planning a part of overall long-term strategy, organizations can avoid its negative effects and even exploit its positive ones.

Organizations need focus, but they also need balance.

Sales compensation is a crucial management decision, but it is too often approached as an exercise in comparative pay levels or as a debate concerning the relative merits of fixed-salary versus commission systems. This article provides a "preface" to sales compensation which outlines generic issues and choices implicated in designing a sales compensation plan. It discusses the following: (1) the links between compensation, evaluation and motivation; (2) an analytical process helpful in developing a compensation plan; (3) important choices in setting goals and rewarding results in sales; and (4) the relevance and limits of compensation policies within an effective sales management system.