Strategy & Leadership

Helio Fred Garcia

2006 Strategy & Leadership

doi: 10.1108/10878570610637849

Purpose – This article offers guidelines for effective crisis response. Design/methodology/approach – Its thesis is: whether an organization survives a crisis with its reputation, operations, and financial condition intact is determined less by the severity of the crisis than by the timeliness and effectiveness of the response Findings – Companies with effective crisis response saw their stock price recover quickly, and remain above their pre‐crisis price thereafter, closing an average of seven percent above their pre‐crisis price one year after the crisis. Practical implications – Offers do and don't prescriptions for managing a crisis. Originality/value – A consultant recognized as an authority in his field shares his experience in effective crisis management.

Vivek Kapur; Jeffere Ferris; John Juliano; Saul J. Berman

2006 Strategy & Leadership

doi: 10.1108/10878570610700695

Purpose – This study of the growth history and practices of 1,238 companies over a decade by the IBM Institute for Business Value found that top growth companies excel in three vital areas: course, capability and conviction. IBM calls this the “3Cs model.” Design/methodology/approach – The IBM research team developed a database of growth and shareholder return performance for companies included in the S&P Global 1200. Starting with the 2003 list, the team added the firms that “fell off” the listing over the preceding decade. The study worked with a final list of 1,238 companies with complete data over the decade. Collectively, this group recorded median annual revenue growth of 8.5 percent and median TSR growth of 8.8 percent. Findings – The most successful growers: have a clear point of view on their industry, addressing both where it is headed and how they will create value in its new form or environment; are iconoclasts who evolve their product‐market portfolio on an ongoing basis; sustain the growth quest by developing multiple growth initiatives that are backed by ongoing cost and asset management to create funding; foster a culture that responds to the necessity of change, and a cadre of leaders with the passion and follow through to make the change stick Research limitations/implications – The article provides a sound intellectual background for researchers who want to compile in‐depth case studies. Practical implications – The article advises corporate leaders to: assess their company's status against your growth ambitions and the 3C model winners follow; develop a point of view on the future and its opportunities; evolve your product market portfolio and initiatives; develop a competitive model; get to know your capabilities and align them with opportunities. Originality/value – Contrary to conventional wisdom, firms with the will to be successful growers can break free of perceived constraints related to size, industry boundaries and geographic neighborhood.

Pierre Loewe; Jennifer Dominiquini

2006 Strategy & Leadership

doi: 10.1108/10878570610637858

Purpose – This article offers three key pieces of advice for companies that aspire to be successful serial innovators: don't just treat the symptoms. Don't only act on one root cause. Don't blindly copy best practices. Design/methodology/approach – Explains how to conduct an “innovation diagnostic” to pinpoint your company's specific innovation issues and opportunities and how to build a tailored action plan to address your company's most critical issues. Findings – The study found that companies that act systemically on all four root causes of innovation blockages have the best chance of success. Practical implications – Companies that aspire to be successful innovators need to act on the root causes of innovation failure found in four areas: leadership behaviors, management processes, people and skills, and culture and values. Originality/value – Explains why innovation dysfunctionality is systemic problem, not one that can be quick fixed with a few new techniques such as stage gates and idea generation sessions.

Omar S. Khan

2006 Strategy & Leadership

doi: 10.1108/10878570610637867

Purpose – Guidelines for igniting and sustaining a change initiative that will generate competitive advantage. Design/methodology/approach – As a coach and facilitator of a number of highly successful change efforts, the author has discovered a few key practices can provide leaders with a clear roadmap for guiding a major strategic initiative. Findings – Based on the author's experience managing many assignments for large corporations, when six conditions for igniting a transformation process are fulfilled, and are coupled with these six requisites of leadership engagement, real change will occur. Research limitations/implications – As one case indicates, teams that employ the author's approach can become a model for others in their organization. Practical implications – Effective leaders helping to produce real value for great teams have to go for change selectively, constructively, personally and, above all, credibly. original/value of paper – A creative look at overcoming the many hurdles involved in implementing change can provide leaders with a clear indicator of whether or not to proceed with a major effort or, instead, to save their credibility and elect to aim at more focused operational improvements.

Gary Adamson; Joe Pine; Tom Van Steenhoven; Jodi Kroupa

2006 Strategy & Leadership

doi: 10.1108/10878570610637876

Purpose – The authors advocate making storytelling an integral tool of corporate strategy. Stories create the experience that lets strategy be understood at a personal level. In order to be effective, strategy must not just inform, it must. And people are never inspired by reason alone. Design/methodology/approach – A case study of the development and presentation of a strategic story – one designed to describe the future of San Juan Regional. It became known as “The Raiders of the Lost Art.” Findings – According the CEO of San Juan Regional: “We learned a whole new way for management and employees to work together to make dramatic new things happen. So we have committed to this type of storytelling and feedback to be done every 18 months.” Research limitations/implications – Research on the success of companies implementing strategic change using the storytelling tool vs. those that rely on an analytical presentation would be valuable. Practical implications – If you want your change message to actually take hold – if you want it to transform how things are done in your world – then weave your message about the new strategy into a compelling and memorable story. Originality/value – When more leaders immerse their employees in compelling and inspirational strategy stories, more companies will achieve their change goals.

Stephen Denning

2006 Strategy & Leadership

doi: 10.1108/10878570610637885

Purpose – As more and more firms grasp that narrative is central to addressing many of today's key leadership challenges – for example, articulating the risks and opportunities identified by strategic management tools like strategic plans, scenario analysis, and dilemma resolution – the question becomes: how is a CEO to make effective use of storytelling? Design/methodology/approach – Narrative – also known as storytelling – comprises an array of tools, each suitable to a different business purpose. The author lists these tools and summarizes how to use them effectively. Findings – Even executives who are naturally talented at narrative also need to learn to target their approach to the particular issue facing the company. Practical implications – While leading companies increasingly recognize the need to train leaders to use artful narrative to inspire and guide their organization to respond effectively to these strategic challenges, the reality is that most organizations need help to get the full benefits of using storytelling. Originalityl/value – When introducing storytelling a sharp focus needs to be kept on the business purpose being pursued with the tool, as well as on the different narrative patterns associated with different purposes.

Vijay Vishwanath; Marcia Blenko

2006 Strategy & Leadership

doi: 10.1108/10878570610637894

Purpose – This article outlines what other firms can learn from Kraft Foods' successful leadership training program. Design/methodology/approach – This case study of leadership development at Kraft Foods identifies the key elements of the firm's program of schooling junior managers. Findings – The five key best leadership development practices at Kraft are: give up and coming managers bottom line responsibility; allow broad leeway in how they meet their targets; school managers in the art of influence, as distinct from merely issuing orders; promote collective achievement, not the desire to be in the spotlight; and create significant roles for talented people who are not made to be leaders. Practical implications – It may be possible for many companies to successfully adapt and adopt Kraft's basic approach. After all, any company can give young managers the chance to think and start taking on responsibility chief executives. Originality/value – Kraft management alumni are much sought after by other firms looking for talented managers. This article analyses why they are successful and suggests ways other firms can emulate their approach.