Companies have both short-term and long-term responsibilities: they must be successful in the present while preparing for the future. While many companies believe they are managing these two priorities effectively, in truth, the urgency of the exploiting the present — launching marketing campaigns, resolving customer service issues or managing the supply chain, for example — […]
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Stakeholder Theory is a view of capitalism that stresses the interconnected relationships between a business, its customers, suppliers, employees, investors, communities and others who have a stake in the organization. Traditional accounting fails to adequately represent the risk and returns of stakeholder activities — i.e. the net value created by ‘stakeholders’. Stakeholders include customers, employees, […]
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To make decisions, leaders must understand, to use the vernacular, ‘what is happening’. They must make sense of the events and situations that impact their areas of responsibility; this sense-making not only involves the past and present, but also the future: what is likely to happen. In July of 2005, an innocent man commuting to […]
Read More… from Bad Framing Leads to Bad Decisions and Bad (Even Fatal) Actions
Expatriate assignments are great opportunities for employees and managers assigned overseas to not only increase their personal knowledge, but also share knowledge across units. In a study on the knowledge benefits from expatriate experiences, Sebastian Reiche, a professor at IESE Business School, showed that there are two types of such knowledge benefits. The first is […]
Read More… from Learning from Expatriate Experience After the Return Home
While the commonly accepted wisdom is that new CEOs from the outside will be in a better position to bring change to an organization, the record indicates otherwise. They often fail. Ayse Karaevli of the WHU-Otto Beisheim School of Management, and Edward Zajac of Northwestern University’s Kellogg School of Management challenge the conventional wisdom and […]
Recent years have seen company stakeholders demand better environmental performance, particularly by businesses in polluting industries. Whether it is consumer pressure for green products, media pressure for a green approach or government pressure to stick to green regulations, leaders must take action. The degree to which they respond – or not – appears to hinge […]
