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  • How Storytelling Builds Next-Generation Leaders

    Storytelling has emerged as the preferred approach for teaching leadership effectiveness in many companies.

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  • Negotiating Lessons From the Browser Wars

    In 1996, the Web-browser "wars"

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  • Rational Cheaters vs. Intrinsic Motivators

    Monitoring employee behavior may not always have the desired effect.

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  • Reducing the Risk of Acquisition

    Identifying and addressing the environmental factors that can affect success

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  • Strategy, Science and Management

    Today’s world calls for less hypothesis testing and more systematic observation.

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  • The Behavior Behind the Buzzwords

    When an activity turns into a buzzword, the odds are high that managers will stop thinking consciously about the behavior they’re trying to elicit and the best way to set expectations clearly. That’s why it’s important to pay attention when buzzwords take over management’s most important responsibilities. Business writer Joan Magretta explains, for example, how thinking outside the box,” a phrase that makes many people cringe, is a useful metaphor when properly understood. The vital work of innovation in companies is sparked precisely because there is a box & #8212; a puzzle with rules that limit and define good solutions. Managers must clearly understand the constraints & #8212; the shape of the box & #8212; if they are to help their employees think sensibly about innovation. She also takes on “resource allocation,” a dry-as-dust technocratic phrase that actually refers to one of management’s most difficult and emotionally charged responsibilities. The crux of the matter is that providing resources for one project means not giving them to another. In other words, it means that managers often have to say no when it is easier to say yes. Last, she focuses on “respect for the individual,” a phrase that, even when used sincerely (and often it’s said insincerely), implies a kind of everyone-gets-treated-the-same ideal. In an organizational context, this phrase really refers to management’s need to match the right individual to the job & #8212; and harsh as it may sound, to fire those who are in jobs they can’t perform. Buzzwords and catchphrases can speed communication. But when it comes to the messy, human realities of management, a dose of straight talk & #8212; and clear thinking & #8212; can go a long way.

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  • The Dynamic Synchronization of Strategy and Information Technology

    In an often overemphasized focus on efficiency, many companies turn to packaged information-technology systems to manage business processes. University of Michigan Business School professors C.K. Prahalad and M.S. Krishnan suggest they should be more concerned about strategy & #8212; and getting line managers and IT managers to use information systems in ways that facilitate strategic change. A new applications-portfolio scorecard helps managers assess information infrastructure before making investments. Six key considerations are each IT application’s role in strategy, whether the knowledge embodied in the application (say, salaries in a payroll application) is stable or evolving, how much change will be needed, where the application will be sourced, whether the data is proprietary or public, and the application’s freedom from conformance defects. Those parameters differ for different functions. Managers may not need the latest software for a stable function. They may decide not to purchase a customized package, because it could be out of sync with the vendor’s future software. Only those companies that deeply analyze what they need from each IT application will acquire the right portfolio. The authors’ work with 500 executives revealed that few managers believed their information infrastructure was able to handle the pressures from deregulation, globalization, ubiquitous connectivity and the convergence of industries and technologies. Though fully aware their organizations lacked rapid-response capability or flexibility, the managers rarely knew how to fix the disconnection between the quality of IT infrastructures and the need for strategic change. Considering that information-infrastructure expenditures are generally 2% to 8% of companies’ revenues, new measures to address the disconnection are essential. A corresponding change in the mind-sets and the skill sets of smart line managers and IT managers also is helping improve overall competitiveness.

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  • The Effect of Nonaudit Fees on Accounting Practices

    Are companies that purchase ancillary services from their auditors more likely to manage earnings?

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  • The Future of E-Business

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