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Havard Business Review 2007 April TOP-TEAM POLITICS WHEN YOUR CORE BUSINESS IS DYING M …page 90 …page 66 A WARDSCKINSEY PAGE 53 www.hbr.org April 2007 58 What Your Leader Expects of You Larry Bossidy 66 Finding Your Next Core Business Chris Zook 78 Promise-Based Management: The Essence of Execution Donald N. Sull and Charles Spinosa 90 The Leadership Team: Complementary Strengths or Conflicting Agendas? Stephen A. Miles and Michael D. Watkins 100 Avoiding Integrity Land Mines Ben W. Heineman, Jr. 20 FORETHOUGHT 33 HBR CASE STUDY Why Didn't We Know? Ralph Hasson 45 FIRST PERSON Preparing for the Perfect Product Launch James P. Hackett 111 TOOL KIT THOUSHALT The Process Audit Michael Hammer …page 58 124 BEST PRACTICE Human Due Diligence David Harding and Ted Rouse 138 EXECUTIVE SUMMARIES 144 PANEL DISCUSSION Ralph Lauren presents Purple Label Made to Measure The Ultimate Sartorial Tradition A legacy of rarefied elegance continues. In the spirit of Savile Row tailoring, Purple Label offers impeccably crafted suits, dress shirts, trousers, topcoats, sport coats and formalwear. Ralph Lauren has personally selected the world’s most luxurious fabrics —offered exclusively and in limited edition —and appointed some of the very few remaining artisans trained in the timeless art of hand craftsmanship. Experience an unparalleled dedication to excellence and service at the highest level. To schedule a private appointment please call or visit a Ralph Lauren store. NEW YORK BEVERLY HILLS CHICAGO BUENOS AIRES DUBAI TOKYO HONG KONG LONDON PARIS MILAN MOSCOW There are 193 countries in the world. None of them are energy independent. So who’s holding whom over a barrel? The fact is, the vast majority of countries rely on the few energy-producing nations that won the geological lottery, blessing them with abundant hydrocarbons. And yet, even regions with plenty of raw resources import some form of energy. Saudi Arabia, for example, the world’s largest oil exporter, imports refined petroleum products like gasoline. So if energy independence is an unrealistic goal, how does everyone get the fuel they need, especially in a world of rising demand, supply disruptions, natural disasters, and unstable regimes? True global energy security will be a result of cooperation and engagement, not isolationism. When investment and expertise are allowed to flow freely across borders, the engine of innovation is ignited, prosperity is fueled and the energy available to everyone increases. At the same time, balancing the needs of producers and consumers is as crucial as increasing supply and curbing demand. Only then will the world enjoy energy peace-of-mind. s Taken: Succeeding in securing energy for everyone doesn’t have to come at the expense of anyone. Once we all Chevron Step start to think differently about energy, then we can truly make this promise a reality. • Investing over $15 billion a year to bring energy to market. • Developing energy through partnerships in 26 countries. • Committing hundredsdiversify supply.of millions annuallyes to to alternative and renewable energi • Since 1992, have made our own energy go further by increasing our efficiency by 24%. CHEVRON is a registered trademark of Chevron Corporation. The CHEVRON HALLMARK and HUMAN ENERGY are trademarks of Chevron Corporation. ©2006 Chevron Corporation. All rights reserved. APRIL 2007 Features 58 What Your Leader Expects of You Larry Bossidy 58 A longtime CEO reveals the behaviors that leaders should look for in their subordinates – behaviors that drive individual as well as corporate performance and growth – and what those subordi- nates should expect in return. 66 Finding Your Next Core Business Chris Zook It may be hidden right under your nose. Here’s how to evaluate your current core and where to look for a new one. 78 Promise-Based Management: The Essence of Execution Donald N. Sull and Charles Spinosa The most vexing leadership challenges stem from broken 66 or poorly crafted commitments between employees and col- leagues, customers, or other stakeholders. To overcome such problems and foster a productive, reliable workforce, managers must cultivate and coordinate promises in a systematic way. 90 The Leadership Team: Complementary Strengths or Conflicting Agendas? Stephen A. Miles and Michael D. Watkins When members of a leadership team play complementary roles, the whole is often greater than the sum of its parts – but such relationships may also result in confusion, especially when members move on. Organizations can learn to enjoy the advan- tages and minimize the risks of complementarity without sowing the seeds of disaster during succession. 100 100 Avoiding Integrity Land Mines Ben W. Heineman, Jr. How do you keep thousands of employees, operating in hun- dreds of countries, as honest as they are competitive? General Electric’s longtime general counsel describes the systems the company has put in place to do just that. 78 continued on page 8 90 Cover Art: Joshua Gorchov Joshua Art: Cover 4 Harvard Business Review | April 2007 | hbr.org IIIfff yyyooouuu wwwaanntt ttoo gggeett llliiinnkkss ffoorr llaatteesstt HHaavvaarrdd BBuussiinneesssss RReevviieeww,, DDDooonnn’’’tt hheeessiittaattee eemmaaiill mmee [email protected]@@ggmmaaiill..ccoomm wwwiiitthh ssuubbjjeecctt ""BBHHBBRR lliinnkkss rreeqquueesstt"".. YYYoouu'''llllll rreecceeiivvee tthhee llaatteesstt lliinnkkss rriigghhtt iinnttoo yyoouurr iinnbbooxx eeevvveeerrryyy tttiiimmmeee aaannn nnneeewwweesstt iiisssssuuee rreelleeaasseess,, aannndd nnoo nneeeeedd ttoo cclliicckk aanndd cclliicckk sseevveerraall ttiimmeess tttooo gggeeettt ttthhheee dddiiirrreeeccctt llliiinnkkss ttoo ddoowwnnllooaadd.. NNNooottteee::: YYYooouurrr llleettttteerrss wwiillll bbee aauuttoommaattiiccaallllyy ffiilltteerr,, sssoo ppplllzz uusseedd tthhee eexxaacctt ssuubbjjeecctt aabboovvee,, ooottthhheeerrrwwwiiissee,, yyoouu’’’lllll rreecceeiivvee nnoo iisssssuuee aatt aalllll.. The file was delivered to you via AvaxHome.ru The permanent link is here, in the Economics Magazine Sub-category You can see many other Havard Business Review issues at Rapidshare Folder OR MegaUpload Folder APRIL 2007 14 Departments 12 COMPANY INDEX 53 2006 MCKINSEY AWARDS AND 2007 MCKINSEY JUDGES 20 14 FROM THE EDITOR What the Boss Wants from You 88 STRATEGIC HUMOR What should CEOs and their direct reports expect from each other? When Larry Bossidy 111 TOOL KIT laid out his views to a group of young execu- The Process Audit tives, they couldn’t take notes fast enough. You don’t have to write down what he said, Michael Hammer though, because Larry has done it for you Redesigning business processes can gener- here. And it will be on the exam. ate dramatic improvements in performance, but the effort is notoriously difficult. Many executives have floundered, uncertain about 20 FORETHOUGHT what exactly needs to be changed, by how Firms from developing countries are making much, and when. A new framework can take a global mark…McDonald’s isn’t afraid to the mystery out of reengineering business bite off more than it can chew…Women at processes and help you comprehend, plan, Fortune 33 1,000 companies are securing top and assess your company’s process-based jobs faster than men…Make your employees transformations. prove their ideas’ worth…Work with Chinese firms to build respect for IP…Alchemists turn 124 BEST PRACTICE bad feedback into gold…Don’t discount the power of the Q&A…Consumers are slow to Human Due Diligence notice changes in product quality, for better David Harding and Ted Rouse and for worse…How outside directors can Most companies do a thorough job of finan- reduce their legal risk. cial due diligence when they acquire other 45 firms. But the success of most deals hinges 33 HBR CASE STUDY on people, not dollars. Here’s how to diag- Why Didn’t We Know? nose potential people problems before a deal is completed. Ralph Hasson A whistle-blower sues Galvatrens for wrong- 132 LETTERS TO THE EDITOR ful termination. The lawsuit triggers a much larger discussion about the company’s sys- Social responsibility and global competi- 111 tem for uncovering misconduct. How should tiveness are all well and good, readers say, the company strengthen that system – and but not if they emerge from companies that what roles should the board and manage- are simultaneously corrupting the political ment play? Commentators include Stephen process. R. Hardis, Hal Shear, Mary Rowe, and Jackson W. Robinson. 138 EXECUTIVE SUMMARIES 45 FIRST PERSON 144 PANEL DISCUSSION Preparing for the Perfect Satisficing Product Launch Don Moyer James P. Hackett Optimizing – the art of finding the best How come some projects fail while others choice among all choices – is a luxury we succeed? This is the story of a CEO who can seldom afford. refused to accept failures as inevitable and set up a system to prevent them. 124 8 Harvard Business Review | April 2007 | hbr.org Xerox Global Services professionals can transform your firm’s document processes to create revenue while driving up productivity. Result? Improved top and bottom lines. There’s a new way to look at it. Organizations waste millions on managing the flow of compatibility across your enterprise. Once our analysis documents from digital to paper and back again. Xerox is done, we offer a comprehensive range of document Global Services professionals create efficiencies by services and outsourcing to optimize your assets and improve streamlining those processes, upgrading document business performance. Our methods have helped Owens technologies and finding better ways for people and Corning, InterContinental Hotels Group (IHG) and others their resources to work together. For example, our realize millions. For a complete portfolio of our services document assessments examine workflow and technology and case studies, visit us today at xerox.com/millions. xerox.com/millions 1-800-ASK-XEROX ©2007 XEROX CORPORATION. All rights reserved. XEROX® and There’s a new way to look at it ® are trademarks of XEROX CORPORATION in the United States and/or other countries. HBR.org APRIL 2007 O TO HBR.ORG, AND YOU’LL NOTICE SOME CHANGES. We’ve rolled out our first Gstage of Web site enhancements, the culmination of which will be an entirely revamped site this fall.
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