Articles

There comes a time when corporate governance has little influence over performance, because competitive forces cut away at management fat.

Many executives speak about corporate reputation and brand as if they are one and the same. They are not, and confusing the two can be costly -- a lesson which companies like Nike Inc. and Wal-Mart Stores Inc. have learned the hard way. Focusing on reputation at the expense of brand can lead to product offerings that languish in the market. However, concentrating on brand and neglecting reputation can be equally dangerous, resulting in a lower stock price, difficulties in attracting top talent and even product boycotts. Brand is a "customercentric" concept that focuses on what a product, service or company has promised to its customers and what that commitment means to them. Reputation is a "companycentric" concept that focuses on the credibility and respect that an organization has among a broad set of constituencies, including employees, investors, regulators, journalists and local communities -- as well as customers. In other words, brand is about relevancy and differentiation (with respect to the customer), and reputation is about legitimacy of the organization (with respect to a wide range of stakeholder groups, including but not limited to customers). For most companies, even an outstanding reputation almost never comprises any unique characteristics that an organization can own and be known for. In short, reputation is a necessary but not sufficient condition for excellence because companies also need strong brands, which are characterized by high customer loyalty, pricing power and the ability to drive growth. Ultimately what drives customer preference and revenue is the ability of a company to create relevant products, services and brands and communicate and deliver them in a way that customers want to buy. Thus, executives need to do more than just keep their company's reputation on track. They need to differentiate their offerings in ways that win the hearts, minds and wallets of customers, and what helps make a company and its products special and preferred is its brand, not its reputation.

The authors offer a framework that executives can use to ensure that their new visions for their businesses become more than just pipe dreams.

Under the right circumstances, companies of any size can grow to become platform leaders.

Do stock options for outside directors encourage bolder decision making? Or could such financial incentives actually inhibit risk taking?

Project managers need a systematic, disciplined framework for turning uncertainty into useful learning.

Success in innovation requires the ability to churn out successful growth businesses year after year.

Spot markets can be used to limit exposure.

Urban environments can substitute for internal resources in driving process innovation.

New technologies such as blogs, wikis, Second Life and Skype are popping up, sometimes unexpectedly, in many organizations. Assessing which technologies to implement is difficult enough. Figuring out how to assess a novel technology that is already being used by members of your organization is even more challenging. With so many new and different technologies emerging all the time, trying to choose the "right" one for every company and situation is the wrong approach. Managers instead need to evaluate how it will work in their specific organization. In that spirit, the authors introduce the six-dimensional Genre Model -- based on why, what, who, where, when and how -- for considering the central issues, risks and benefits of using a new medium in the context of existing technologies. The model helps assess how employees' use and adoption of the new technology will align with the organization's mission, culture and business practices and how it may change productivity and effectiveness. Several case studies are analyzed. Blog Central at IBM, introduced by management as a self-publishing platform for employees, soon became more social than informational as users applied blogging to extend their personal networks, "get the pulse" of their organization and establish a sense of community. After MNI Partners, a management consulting company, adopted the Skype system to cut costs on its weekly international conference calls, the nature of those meetings evolved as participants exploited the new medium's properties. And when managers from a large European petroleum company, which the authors call Epsilon, established an internal electronic bulletin board for the exchange of technical information, they learned that many longtime employees, aggrieved by recent corporate changes, had other uses in mind for that medium. The Genre Model is used to analyze these cases, as well as to help explain, retrospectively, why the business letter gave way to the memo, which then was largely subsumed by e-mail.