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Strategy Management Robert S Strategy with Muscle…page 72 Change Management with Teeth…page 108 www.hbr.org October 2005 Closing the 62 Growing Talent as if Your Business Depended on It Jeffrey M. Cohn, Rakesh Khurana, and Laura Reeves Talent Gap 72 The Office of Strategy Management Robert S. Kaplan and David P.Norton 82 The Passive-Aggressive Organization Gary L. Neilson, Bruce A. Pasternack, and Karen E. Van Nuys 96 Information Technology and the Board of Directors Richard Nolan and F.Warren McFarlan 108 The Hard Side of Change Management Harold L. Sirkin, Perry Keenan, and Alan Jackson 16 Forethought 31 HBR Case Study The Cane Mutiny: Managing a Graying Workforce Cornelia Geissler 45 Big Picture Zeitgeist Leadership Anthony J. Mayo and Nitin Nohria 120 Best Practice Master of the House: Why a Company Should Take Control of Its Building Projects David Thurm …page 62 131 Frontiers Four Strategies for the Age of Smart Services Glen Allmendinger and Ralph Lombreglia 155 Executive Summaries 160 Panel Discussion ©2005 Siebel Systems, Inc. All rights reserved. Siebel, the Siebel logo, and “IT’S ALL ABOUT THE CUSTOMER” are trademarks of Siebel Systems, Inc. and may be registered in certain jurisdictions. LOSING EVEN ONE CUSTOMER IS ONE TOO MANY. So visit www.siebel.com/thecustomer and learn the secrets of managing a customer-driven business from fourteen companies that got it right. 108 Features 72 October 2005 62 Growing Talent as if Your Business Depended on It 62 Jeffrey M. Cohn, Rakesh Khurana, and Laura Reeves With lurid visions of missed earnings targets, fatal ac- counting blunders, and departing CEOs dancing in their heads, boards often pay little attention to an equally dis- turbing picture: the lack of quality leaders coming up through their organizations. Find out how some smart companies are developing their talent and building their bench strength. 72 The Office of Strategy Management Robert S. Kaplan and David P.Norton Your employees can help implement your strategy only 96 Information Technology and if they understand it. Chances are, they don’t. Here’s the Board of Directors a blueprint for setting up a (small) corporate unit that Richard Nolan and F.Warren McFarlan will make sure your strategy is well communicated – Most boards remain largely in the dark when it comes and well executed. to IT spending and strategy, despite the fact that corpo- rate information assets can account for more than 50% 82 The Passive-Aggressive Organization of capital spending. That’s got to change, especially for Gary L. Neilson, Bruce A. Pasternack, and companies whose very survival depends on state-of-the- Karen E. Van Nuys art technologies. Decisions are routinely criticized, often ignored, and even reversed. Is it any wonder that, faced with some 108 The Hard Side of Change Management new directive, employees smile but refuse to budge? Harold L. Sirkin, Perry Keenan, and Alan Jackson There is a way of getting companies with this problem Many change management experts are obsessed with moving again – but it’s a drastic one. “soft” factors, such as culture and leadership. These fac- tors are important, say three management consultants, 82 but they alone won’t bring about change. The hard ele- ments – like project duration and staffing requirements – must also be given due consideration. continued on page 6 96 COVER ART: LEIGH ART: COVER WELLS 4 harvard business review NETWORK EXPERTISE APPLICATIONS SERVICE The largest and fastest Our people and partners The broadest and deepest 24/7 enterprise-grade national wireless data network. make wireless work for portfolio of wireless support. And a service The largest U.S. provider on more businesses than any business solutions. staff dedicated solely the global standard. other wireless carrier. ® to business people. real time gets Corporate Express there in no time. With its 24/7 dedicated business service team, Cingular gave Corporate Express the support, training, and technology needed to migrate from a paper-based delivery system to a real-time wireless solution. From system installation and operation to employee training, the Cingular service team ensured a seamless transition to the ALLOVERTM network, the largest digital voice and data network in America. For the leader in office supplies, Cingular increased driver productivity while reducing administrative costs. CINGULAR MAKES BUSINESS RUN BETTER Find out how Cingular can make your business run better: CALL your account representative -or- CLICK cingular.com/businessleader Cingular’s ALLOVER data network covers over 250 million people and is growing. Coverage is not available in all areas. Global coverage based on coverage in 174 countries. Fastest claim compares Cingular’s measured speed of its EDGE network to other carriers’ speed claims for their national data networks. All marks property of their respective owners. ©2005 Cingular Wireless. All rights reserved. Departments October 2005 10 FROM THE EDITOR 94 STRATEGIC HUMOR First Things First One lesson of Katrina is that organiza- 120 BEST PRACTICE tions and systems manage interdepen- Master of the House: Why a dencies badly. Company Should Take Control of Its Building Projects 16 FORETHOUGHT David Thurm Economic models combine mathemat- 16 A big construction project isn’t just ics and imagination…Government by about bricks and mortar; it’s about iden- desks…What’s your product’s platform tity. If you want a soulless, mediocre potential?…Chief diversity officers over- facility, just sign a check and delegate see innovation efforts and generate rev- away. But if you’d rather create a build- enues…Founders should be keepers… ing that reflects your company’s mission A subtle approach helps keep new cus- on the outside and energizes the work tomers…Advice on choosing manage- environment within, read on. ment books from a man who’s read 1,500 of them…Your company might have FRONTIERS more room to grow than you think… 131 How customers’ perceptions of brand Four Strategies for the affect stock price…Are you hiring a 45 Age of Smart Services new COO – or a potential successor? Glen Allmendinger and Ralph Lombreglia 31 HBR CASE STUDY Soon, it won’t be enough just to wrap The Cane Mutiny: valuable services around your products. Managing a Graying Workforce Some companies are building aware- Cornelia Geissler ness and connectivity into their prod- ucts – and deriving more than 50% of A shift in demographics will soon mean their revenues and 60% of their margin mass retirement at Medignostics – and contributions from these “smart ser- too few candidates to fill the empty spots. vices.”Here’s how you can do the same. But executives’ eyes are glued to the bot- tom line. How can an HR manager get 120 LETTERS TO THE EDITOR the top team to see the impending crisis 147 and buy into his strategy to head it off? Companies that add Six Sigma to their pricing analysis tool kits may be missing out on some top pricing opportunities. 45 BIG PICTURE Zeitgeist Leadership Anthony J. Mayo and Nitin Nohria 160 PANEL DISCUSSION Give to Get You may be the right leader for your Don Moyer company today, but will you be able to capitalize on the context in which your Don’t step on heads to get ahead. Help business will operate ten years from superiors, employees, and peers alike. 131 now? A close look at how broad forces played out in the past century could point the way. 8 COMPANY INDEX HBR now includes an index of authors’ affiliations and organizations mentioned in articles. 155 EXECUTIVE SUMMARIES 6 harvard business review COMPANY INDEX • October 2005 Organizations in this issue are indexed to the first page of the article in which each is mentioned. Subsidiaries are listed under their own names. ABB . 131 Grupo Nacional Provincial. 72 Starbucks. 62 AFL-CIO . 45 Harvard Business School . 45 St. Marys Cement . 96 Airbus . 96 Heidelberger Druckmaschinen. 131 St. Mary’s Duluth Clinic . 72 Air Liquide Group . 131 Herman Miller. 45 Symantec . 82 Air Products and Chemicals . 131 Hershey . 96 Target. 131 Alcoa . 45 Hewlett-Packard . 131 Teledyne Technologies . 45 AltaVista . 16 Home Depot . 96 TLC Group. 45 Amazon . 16, 96 Honeywell . 131 Tyson Foods . 62 American Airlines . 96 Hush Puppies . 120 United Auto Workers . 45 American Federation of Labor . 45 IBM . 45, 96 United Farm Workers. 45 American Machine and Foundry. 45 IMF. 45 University of California, San Diego . 120 American Radiator . 45 J.P. Morgan. 45 U.S. Army . 72 American Tobacco. 45 Kraft . 16 U.S. Department of Commerce and Labor . 45 Amgen . 108 Krispy Kreme . 16 U.S. Navy . 96 Apple . 16 Lawrence Berkeley National Laboratory . 120 U.S. Securities and Exchange Commission. 45, 96 Armani Group . 120 Lutron Electronics. 120 U.S. Small Business Administration . 45 AT&T. 16, 45 McDonald’s. 45 U.S. Steel . 45 Ball Corporation . 45 MechoShade Systems . 120 Visa . 45 Bank of America . 45 Mellon Financial . 62, 96 Wal-Mart . 45, 96 Beatrice Foods . 45 Microsoft . 45 Walgreens. 131 Black & Decker . 45 Morgan Stanley. 45 War Industries Board . 45 Boeing . 96 MTV Networks . 16 War Production Board . 45 Booz Allen Hamilton . 82 National BankAmericard . 45 Warner Bros. Entertainment . 45 Canadian Blood Services . 72 National Bank of Commerce . 45 World Bank. 45 Canon USA . ..
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