Articles

Some acquisitions work; some don't. Even as the merger wave continues unabated, managers and commentators disagree about its value -- both to shareholders and to the long-term health of the acquiring firms. These authors explore several myths that now dominate the debate over what makes for a successful acquisition. They argue that the acquisition process itself is a critical factor in the deal's ultimate fate.

The role of leadership is a favorite theme among students of management, but most studies focus too narrowly on the individual "hero-leader," according to these authors. They argue that leadership typically does not rest with a single individual, but is both pluralistic and fluid. This pluralism is in part a function of two very different leadership structures: the formal management hierarchy, and the informal networks that cross and operate within hierarchical lines. The intelligent manager understands that these two structures are complementary. The most successful decision making -- and the most effective leadership -- occurs when they are encourage to coexist.

Given the competitive spirit of the service sector, the time has come for service businesses to recognize that they are really a part of a larger whole, and not merely unique, entrepreneurial entities unto themselves. In fact, the author of this article warns that of service businesses remain isolated from one another, their mortality rate will continue to rise. Through the use of a service matrix, the author shows how service businesses can broaden their professional relationships with other services that have similar operations and managerial challenges, and in so doing, gain the economic foothold needed to survive and prosper.

In an effort to discover the principles of "good management" of the professional service sector, this author examines the inner workings of a few outstanding companies whose philosophy and management orientation make them what they are today -- successful, profitable, and, above all, well-managed. In the course of identifying the many organizational characteristics common to these firms, he also discovers that these firms share a common management approach, which he labels the "one-firm firm" system. The critical elements of this approach are management's emphasis on loyalty to the firm and group cooperation. By exploring how these elements interact to form a successful management system, the author proposes a model of professional firm success that he believes can be adopted by a variety of professions.

As politics and business are becoming increasingly intertwined, many companies today conclude that a politically sensitive management is essential in furthering a company's political welfare. Consequently, a number of firms are initiating a range of programs to develop the political management skills of their managers. The goal is not to encourage managers to run for public office or to enter political life as individuals; rather, it is to make them better able to understand and communicate the company's political position as part of their regular management functions. The author holds that in time companies will stress the public affairs role of their managers to such an extent that a manager's public service performance will become a significant criterion for his or her advancement in the firm. Thus, he concludes that the time has come to cultivate a new breed -- the politically active manager.

This article, the first of a two-part series, shows how the value-added chain can be used to analyze sources of international strategic advantages. The author argues that it is essential that a distinction be drawn between competitive and comparative advantage. He illustrates the importance of this distinction by looking at structural shifts in the world economy and arguing that these shifts reflect changes in comparative advantage. The impact of these changes leads to only a few choices for the firm facing import competition and possessing no competitive advantage. The author stresses that if the global advantages acquired by international participation are not sustained, competition reverts to domestic competition among firms with different national names.

The authors purport that a new brand of leadership -- transformational leadership -- is the key to revitalizing large U.S. corporations such as General Motors, AT&;T, General Electric, just to mention a few. Based on the premise that the pressure for basic organizational change will intensify, not diminish, over the years, they argue that transformational leaders must develop a new vision for the organization, mobilize employees to accept and work toward achieving the new vision, and institutionalize the needed changes. Unless the creation of this breed of leaders becomes a national agenda, the authors are not very optimistic about the revitalization of the U.S. economy.

Do quality improvements lead to higher or lower profits?

If we really want to decipher an organization's culture, this author claims that we must dig below the organization's surface -- beyond the "visible artifacts" -- and uncover the basic underlying assumptions, which are the core of an organization's culture. To do this, he provides a tool -- a formal definition of organizational culture that emphasizes how culture works. With this definition in hand, the author feels that one cannot only come to understand the dynamic evolutionary forces that govern a culture, but also can explain how the culture is learned, passed on, and changed.

The strategic management of internal corporate venturing (ICV) presents a major challenge for many large established firms. The author's conceptualization of ICV suggests that vicious circles and managerial dilemmas typically emerge in the development of new ventures. These problems are exacerbated by the indeterminateness of the strategic context for ICV in the corporation, and by perverse selective pressures exerted by its structural context. This article presents four major recommendations for improving the effectiveness of a firm's ICV strategy.