How to Stop Bad Things from Happening to Good Companies

Catching the right moment to take action when successful business models begin to wane requires skilled detection work and the courage to face reality. In this article on value migration — the process by which changing markets and new competitors threaten a company’s equilibrium — a system of early-warning diagnostics is recommended.

Shining the Light on Shadow Staff

Peer into the hallways of any business unit, and you will likely find “shadow staff,” people performing tasks that duplicate those performed elsewhere in the organization, typically by corporate functions.

Benson P. Shapiro, Adrian J. Slywotzky and Richard

Typically, cost reductions are delayed, are across-the-board (eliminate 10 percent, say, from every department) and are not oriented toward what the business design should be at the end of the reduction effort. Consequently, the effort usually fails. In fact, cost reduction and internal re-engineering approaches more often than not misconstrue the fundamental nature of the problem. The point is not to become more efficient at … [ Read more ]

The View From the Top

Based on client experience and a benchmark survey of senior executives at a broad range of global companies, Booz Allen has identified three positive trends in the evolution of senior management roles, as well as systems and processes.

Benson P. Shapiro, Adrian J. Slywotzky and Richard

Every company has a well-defined competitive field of vision, which is usually too narrow. Long periods of equilibrium only exacerbate the problem. A whole raft of “minor little players” operates just at the periphery. They are difficult to see because traditional competitors focus on each other and not on new entrants and “nontraditional” entities lurking at the industry’s fringes.

How Richard Branson Works Magic

Though more known for his legendary publicity stunts, Richard Branson has led Virgin Group to success with a singular, flamboyant style. Learn the secret of how he tackles the big bad wolves of many industries.

Balanced Sourcing the Honda Way

At first glance, what Honda of America does to develop its products, sustain its supply base and manage its purchasing function seems little different from what most other car makers do. But the results that Honda achieves are often remarkably superior.

Profits and Perils in China, Inc.

The world’s most populous nation has become a capitalist’s paradise, supplanting Asia’s “tiger economies” – and soon, perhaps, the West.

Yellow-Light Leadership: How the World’s Best Companies Manage Uncertainty

“our research finds that the CEOs whose companies are best weathering the recent downturn are practicing old-fashioned, pragmatic management by the numbers – what we call yellow-light leadership. This conclusion is based on an onging Booz Allen Hamilton study of about 40 Fortune 500 companies, conducted with the Center for Effective Organizations at the University of Southern California and initiated in 2001.

This finding is significant … [ Read more ]

Reinventing Scale: How to Escape the Size Trap

Value chain mapping can find hidden value in even the oldest industries.

Post-Merger Integration: How I.B.M. and Lotus Work Together

AT 8:25 A.M. on Monday, June 5, 1995, Jim Manzi, chief executive of the Lotus Development Corporation, received an unexpected phone call from Louis V. Gerstner Jr., the chairman and chief executive of the International Business Machines Corporation.

I.B.M., Mr. Gerstner said, had just tendered an all-cash offer of $64 a share for Lotus, a storied software maker in Cambridge, Mass., and he hoped Mr. … [ Read more ]

The Co-Creation Connection

Companies spent the 20th century managing efficiencies. They must spend the 21st century managing experiences.

From Solutions to Symbiosis: Blending with Your Customers

It’s not enough to know your customers. You have to integrate them into your company.

Competing in Emerging Countries – The Case of Latin America

Though a little dated (1997), this article offers some good insight into the business opportunities emerging countries represent. Focused on Latin America (with some interesting associated facts and figures) some analysis is also somewhat generalizable, specifically looking at:
a) The “multidomestic player” that must move to a regional footprint and management model.
b) The multinational player that is starting to expand … [ Read more ]

The Organization vs. The Strategy: Solving the Alignment Paradox

It’s not vision that makes a company successful. What sets the top performers apart is the organizational models they develop to realize their aspirations.

Making Mergers E-Merge: Using the Internet to Jump-Start Integration

With a “clean team” and a digital platform, BP and Amoco shaved months from their merger closing – and added immeasurably to shareholder value.

Editor’s Note: though the article focuses on client work on the BP-Amoco merger, a lot of interesting material that has broad applicability is discussed.

Creating Temporary Organizations for Lasting Change

Faced with a rapidly evolving competitive marketplace, the chief executives of many of today’s leading companies have embarked on major change initiatives. The goal is twofold: to challenge the existing ways of conducting business and to drive step-level improvements in operating performance. The method is two-pronged as well: cut costs significantly and build capabilities to better serve the marketplace. These initiatives, then, often involve the … [ Read more ]

What the Heck Is a Company Anyway? Reflections on Identity

In an age of mergers and acquisitions, identity management is becoming increasingly difficult, yet necessary in terms of both customers and employees. The key to make it work? Creating a feeling of community.