LIGHTING THE FIRE See a 0 : Leading well 68 ー 69 ■ Creativity and invention 72 ー 73 ■ Effective leadership 78 ー 79 第 Organizing teams and talent 80 ー 85 ・ ls money the motivator? 90 ー 91 underachievement. ConsequentIy, down tO the shopfloor as well as equipping employees with the t001s up tO the shareholders. Firms that t0 develop effective habits can value effe ctivenes S over volume , lead tO more effective performance, and performance over presenteeism (when staff work despite illness, happier, more productive staff, and, in turn, improve the firm's results. instead Of recuperating on sick leave) 0ften find themselves at the top 0f best-employer lists. Leaders of these firms realize that shareholder value is driven by staff performance ー allowing staff t0 build careers around what they excel at is good for employees and the bottom line. ー Wo ー i 取 9 better, 取 ot harder GoogIe, borrowing from a practice introduced by US conglomerate 3M in 1948 , encourages staff to spend 20 per cent Of their time on projects Of their own choosing. Rather than distract from directed Google's innovative dynamic culture, projects, Google has found that in which staff are encouraged tO work their staff work better on all tasks tO their strengths and explore projects ー when people are passionate about that they are passionate about, is one their work, it does not feel like work. Of the reasons for the firm's success. Such discretionary effort, the ln his two-factor theory, US willingness 0f employees t0 ・ go the extra mile", can be the difference psychologist and management thinker Frederick Herzb erg identified between good and great. Great a sense Of achievement as being businesses focus on getting the best out Of people, not the most out closely linked tO motivation tO work. of them. Gmail, one 0f Google's Effectiveness is intrinsically rewarding; even the most generous most popular products, is a result Of the firm's 20-per-cent time. salary cannot, over the long term, replace the satisfaction Of a jOb well Enabling staff t0 work better, done. The same generous salary not harder, requires an enlightened will not offset the dissatisfaction Of leadership approach that 100ks Born on 8 March 1925 , Warren studies, Be11111S was one Bennis IS an A. mencan scholar, Of the ten greatest influencers organizational consultant, and on business thinking by management author. Enlisting Businessl/Veek magazine 1 Ⅱ in the US Army ⅲ 1943 , Bennis 2007. The Financia1 Times lists ・ was one Of the youngest infantry his classic 1985 book Leaders officers to serve ⅲ World War Ⅱ , as one 0f the top 50 business and was awarded the Purple books of all time. Heart and Bronze Star for service Key 0 ′ ks in action. After leaving the military, Bennis studied at Antioch 1985 Leaders: Strategies for CoIIege, OhiO, and later became Taking Charge a professor at the Massachusetts lnstitute Of Technology's Sloan 1997 Why Leaders Can't Lead: The Unconscious Conspiracy SchooI of Management. WideIy Continues regarded as the pioneer 0f the 2009 〇れ Becoming a Leader contemporary field Of leadership The man who does not work for the love of work, but only for money, is likely tO neither make money nor find much fun ⅲ life. Charles M Schwab US industrialist ( 1862 ー 1939 ) Warren Bennis

Ⅷ 0 側 C 引 ON 66 - 不ト these roles iS exclusive or privileged. words, leadership is about creating rowth from a small start-up Leading well 0ften involves shifting capacity in Others. lt is about tO a large multinational seamlessly between leadership and imagining the future, determining firm cannot be achieved management, and knowing When, strategic direction, and aligning without leaders whO are passionate contextually, each role is most the organization and its people tO about their business and whO are appropriate tO adOPt. a particular ViSion. inspirational tO their staff. Leading Creating the organizational a business iS, at itS core, about capacity for continued success alSO harnessing the power Of people. means putting together teams and The very best leaders, as Steve One popular business aphorism managing talent. An effective team JObs said, "put a dent in the claims that "there are no business is a powerful thing. lndividuals universe". These leaders are not problems, only people problems'. perform better in teams ー they bound by convention; they are able Managing people is not easy; every are more productive and more tO think outside the box, embracing organization iS collection Of innovative. Teams can alSO be self- one-of-a-kind ideas that disrupt the individuals, each with their own status quo in their favour. ln today's managing; individuals support philosophies, vulnerabilities, each other and strive not tO let the hyper-competitive markets, the drives, strengths, and weaknesses. team down. Effective teams require leaders we c elebrate d0 not only Effective leadership embraces less supervision and less direction out-think, outsmart, and outcompete these differences and creates a than individuals, and performance their rivals, they disrupt entire culture in which people can make is guided by group norms, not by industries. They change the game. the most Of their talent. ln Other one individual's expectations. Rarely, though, d0 leaders lt is not surprising, then, that achieve greatness alone. Leaders great organizations recognize the rely on managers. While leadership value 0f teams. Google, for example, iS about vision, management iS designs workstations SO that about process, planning, budgeting, structuring, and staffing ー tasks employees can easily collaborate. "Hang-out spaces" are adorned with that help an organization tO keep funky furniture and supplied with d0ing what it does. ln The Manager's J 〇わ ( 1975 ) , Henry free food to allow teams to work and socialize together. Leaders at Mintzberg identified three broad management roles: informational GoogIe want employees tO interact; (managing by information); they recognize that by encouraging interpersonal (managing through teamwork, employees enjoy greater people); and decisional (managmg jOb satisfaction and creativity, and through action). lmp ortantly, as a result, innovation rises. TO Mintzberg noted that none of the benefit of its staff and its Leaders and managers GOOd leadership consists Of showing average people how to do the work of superior people. 3 D Rockefe11er US industrialist ( 1839 ー 1937 )

リ G 損 G THE FIRE intelligence 110 ー 11 ・ Mintzberg's management roles 112 ー 13 See a 0 : Leading well 68 ー 69 ■ Gods of management 76- ー 77 ■ Changing the game 92 ー 99 第 Develop emotional RenauIt and Nissan. Within a year of his appointment in 1999 , Ghosn returned Nissan tO profitability and was credited with saving the firm from collapse. This proved tO be one Of the most dramatic turnarounds in modern business history. Among the leadership traits that contribute tO Ghosn's effectiveness is his belief that leadership is learnt "by doing On joining Nissan as CEO he walked around every factory, meeting and shaking hands with every employee. TO this day he remains a common sight on factory floors. lntegrity and trust, Ghosn believes, are built when leaders are seen tO be willing tO get their hands dirty" and remain in touch with the shopfloor Of the business. Carlos G os 取 Born in 1954 , Carlos Ghosn, French-Lebanese Brazilian, started his career with MicheIin, moved to Renault in 1996 , and was appointed the CEO of Nissan ⅲ 1999 following Renault's purchase Of a substantial stake in the ailing Japanese firm. At the time, Nissan's debts had reached $ 20 billion and 0 Ⅱ ly three Of its 48 car れ 10dels were generating a profit. Promising tO resign if the firm did not reach profitability by the end 0f the year, he defied Japanese business etiquette, cut 21 , 000 jobs, and closed unprofitable domestic plants. Within three years Nissan became one Of the 1 れ ost profitable automakers, with operating margins Of higher than 9 per cent ー 1 0 て e than twice the industry average. Having presided over what has been described as one of the greatest turnarounds in business history, Ghosn was named "the hardest-working man in the global car business' by Forbes magazine in 2011. 1 Actively participating in business life, from the boardroom tO the factory floor, is vital for effective leadership. CarIos Ghosn visited car assembly lines tO build integrity and trust with staff. a curse ー the void created by the departure Of a charismatic leader Leaders must communicate a can be hard t0 fill. lt may flatter the strong vision but, above all, they must empower staff tO take ego tO be proclaimed a hero, but great leaders know that success decisions themselves. ln large, involves building long-term diverse organizations a leader organizational capacity that will cannot, and should not, make all outlast their own tenure. the decisions ー helping others t0 understand the necessity for change, and giving them the tOOls tO manage that change is key tO the To be effective, a leader must be leader's role. The success Of Nissan confident and secure, and at the is alSO attributed tO Ghosn's ability same time open and empathetic. tO manage cross-cultural teams. Effective leadership involves the Leaders, Ghosn suggests, require ability tO create capacity in others through the process Of interacting, the ability tO listen and tO informing, listening, developing, empathize, not just with employees and trust-forming. Credibility 0f from their own countries, but also with people from different the leader is achieved through countries and cultures. collaboration, not domination. Ghosn's insights illustrate that CentraI tO effective leadership is empowerment ー the art Of enabling effective leadership requires putting ViSion intO action. Achieving thiS Other people t0 get things done. One Of the most effective requires more than just rhetoric: contemporary business leaders iS effective leaders must "talk the Carlos Ghosn, CEO of carmakers talk ” and "walk the walk" ー Empowering staff Keys tO effectiveness The universe rewards action , not thought. Russell Bishop US executive coach

LIGHTING THE FIRE ・ Leading well 68 ー 69 ・ The value of teams 70 一 71 第 Effective leadership 78 ー 79 ・ Make the most of your talent 86-87 ■ Organizational culture 104 ー 09 ・ Avoid groupthink 114 ・ The value of diversity 115 第 Kaizen 302 ー ()9 83 See a 0. achieved. Bruce Tuckman, a US professor 0f educational psychology, described these stages as forming, storming, norming, performing, and adjourning. During forming, the group comes together, and members get tO know one Other. lt then moves intO a storming stage, where members challenge each other for coveted group roles, and group processes begin tO emerge through trial and error. The middle stage ー norming ー marks a period Of calm, where agreement iS reached on roles, processes, and group norms. By the fourth stage, members have become familiar with each other, with their roles, and with the processes involved. At this stage, team performance hits its most effective level. Once their work is done, the group moves t0 adjourning, or disbanding. Businesses are keen for teams t0 move quickly through the early stages, reaching "performing as soon as possible. This is why firms invest SO much in teambuilding activities, where teams face and solve artificial challenges, 0ften in a different environment. Many firms also use the architecture Of their building tO encourage team interaction. For example, at Pixar, the movie animation studio based in California, the cafeteria, meeting rooms, employee mail boxes, and toilets are located around a centralized atrium designed for collaborative working. The building design and layout encourages members Of teams tO meet up and interact With one another, even when they are based ⅲ different departments within the firm. Research has shown that teambuilding activities and collaborative workspaces help tO improve team working because the most effective teams are those where members trust one another, share a strong sense Of group identity, and have confidence in their effectiveness team. Effective teambuilding ln 2005, US researchers Jon Katzenbach and Douglas Smith identified a series Of factors that seem tO be essential for effective teamwork. FirstIy, team members must be chosen for their skills, not their personality. The team then needs tO get Off tO a good start; setting the right tone is essential. The tone should not be too casual ー teams perform better when challenged, so a sense of urgency needs tO be imparted. The team should agree on clear rules for group behaviour and norms, and meet often, bOth formally and informally. If possible, the team should be allowed to enjoy some early success; a few easy Wins early on has been found to boost performance later. Likewise, the group ー and its individual members ー needs tO be lavished with praise. Continuing motivation iS 》》 Teams produce 1 ore creative solutions tO problems. lndividual shortcomings are balanced out in a team. Mutual support encourages team members tO reach their potential Effective teams provide synergy. 2 + 2 = 5 Teams establish positive group norms that encourage openness and flexibility. Teams provide an envlronment tO manage talent Teams provide security, SO members feel free to take risks

SYNERGYAND 0 田 LIES 186 IN CONTEXT FOCUS Mergers and takeovers KEY DATES 1890 ー 1905 The first "takeover wave" occurs in the USA and Europe , triggered by an e C onomic depression and new legislation. 1960S Abraham Maslow applies the idea 0f "synergy tO the way that employees ⅲ organiz ations work together. 2001 US firms AOL and Time Warner merge in a deal worth $ 182 billion. lt does not work out, and ⅲ 2009 the firms become separate entities. 2007 ln the USA alone, 144 takeover deals worth more than $ 1 billion take place. 2009 Only 35 takeover deals worth more than $ 1 billion take place ⅲ the USA. WHY TAKEOVERS S PO T irms have tO grow in order tO survive. One way tO make an organization bigger is t0 buy (acquire) another and make it part 0f the original firm. AlternativeIy, two businesses can agree tO merge, forming another organization With an entirely new identity. The purpose Of an acquisition or merger iS Often tO increase shareholder value beyond the sum Of the two firms. These benefits are known as synergy"; the concept being that one plus one equals three. The reasons for tWO businesses joining together might seem compelling. The new, combined firm increases sales, market share, and revenue. lt should also be a more efficient operation. Bigger firms alSO enjOY economies Of scale: expectations". short Of management's initiatives often fall that "synergy and Goold concluded academics Campbell in business circles joined. A HOIY Grail business units are iS created when t Ⅵ 70 additional value that Synergy is the overhead COStS are shared and money can be saved from increased buying power. Fixed costs can aISO be reduced because the combined business needs fewer staff in key functions, such as finance, human resources, and marketing, than the tWO separate entities. Firms also buy businesses tO acquire new technology, reach new markets, or increase distribution. ln practice, takeovers and mergers are rarely marriages made in heaven , a fact underlined by Har01d Geneen in the books he co-authored ⅲ 1997 and 1999 on the pretence of synergy. Mergers can fail t0 deliver the value promised, with one plus one Often equalling less than tW0. There are many reasons for failure. Hidden Corporate divorce

0 Ⅳ田擺 G THE GOODS 321 See a 0 : Creativity and invention 72-73 ・ Profit versus cash flow 152 ー 53 ・ Leading the market 166 ー 69 ・ The value chain 216-17 ・ Lean production 290 ー 93 ■ Simplify processes 296 一 99 ・ Critical path analysis 328 ー 29 ln a simultaneous engineering approach , all departments are represented in one multidisciplinary team , working together tO solve new problems , and s aving time and money. This strategy involves carrying out all the design processes required t0 launch a new product at the same time, rather than in a linear sequence, and can reduce product development time by months or even years. Design Design Ne product の develop ment Engineering Comparing approaches Production Traditionally, firms have pushed new products through a linear sequence Of development, where each department involved in the design works in isolation, completing their task before passing the product tO the next department. ln this way, the part-made product might move between design, engineering, and production departments. However, this approach can lead tO time-consuming mistakes. For Project managers play a key role, beautiful seat creatlng visibility example, When new cars are being as they must ensure that the problems once in position ー parts designed, different departments multidisciplinary team members may have t0 bounce back through might work on various parts in agree the necessary design trade- s everal dep artments. isolation and in a certain sequence. Offs at a very early stage in the The alternative approach, chosen However, When the various sub- development process. Design by time-based manufacturers, is tO assemblies are finally put together integrity is achieved first time use a team Of people from different at the prototype stage, the result is around, with no need for reworking, departments, all working together Often unsatisfactory. And in order slashing the amount Of time taken on a new product from the outset. tO correct one thing ー such as a tO launch the new product. Time-based management can only work effectively in firms that employ flexible , multi- skilled staff, WhO, in turn, respect one another's skills and value each other's input. A non-linear process means that managers must be prepared tO work with a less rigid structure, and encourage a culture Of trust. This management approach forms the basis 0f many technology firms today, as it allows them tO respond more quickly tO changes in the market and customer needs, while providing employees with a more autonomous, creative, and productive working environment. ■ Approval Approval ln a linear process Of new product development , the evolving prototyp e or individual parts move separately, back and forth, between departments. This is time-consuming and costly. Agile software development (ASD) changmg requirements (even at Within the software industry, late stages 0f development) in changes in components and order tO give the customer the customer demands happen greatest competitive advantage. rapidly and repeatedly. This However, the founders note that means that developers have had this can 0 れ ly be achieved when tO find ever-faster and better "business people ” take a flexible ways Of managing projects. and trusting approach, h01d daily ln 2001 , a group of software face-to-face conversations with developers met in Utah, USA, developers, and provide all the tO discuss h0W this might be SUpport they need. Coupled done, and their C011ClUSi011S れ with regular reflection on team the basis Of the agile software practice, these conditions will development approach. This allow self-organizing teams tO recognizes the customer produce fast, brilliant designs. highest priority, and embraces

日 G A P 日 B NICHE inding a space in the market that is unchallenged by c omp etition is the HOIy Grail Of positioning strategy. UnfortunateIy these spaces ー known as market gaps ー are often illusive, and the benefits of finding one are 0ften equally illusory. Although competition is a fact 0f life, it makes business difficult, contributing tO an ever-downward pressure on prices, ever-rising COStS (such as the funding Of new product development and marketing) , and an incessant need tO outmanoeuvre and outsmart rivals. ln contrast, the benefits of finding a market gap - a small niche segment Of a market that is unfettered by competition ー are obvious: greater control over prices, lower costs, and improved profits. The identification of a market gap, combined with a dose 0f entrepreneurial spirit, is often all that is needed tO launch a new business. ln 2006, TWitter founder Jack Dorsey combined short-form communication With SOCial media, providing a service that no one else had spotted. Free tO most users, revenue comes from firms WhO pay for promotional twe ets and profile s : earned advertising revenues of $ 582 million in 2013. IN CONTEXT FOCUS Positioning strategy KEY DATES 1950S and 60s Markets are dominated by large firms offering mass-produced items, such as Coca-Cola. Choice is limited, but the scope for products targeted at new sectors Of the market is high. 1970S and 80S Markets become increasingly segmented as firms generate new products and market them towards narrower groups. 1990S and 2000s Firms and brands position them selves ever-more aggre ssively and distinctively in the overcrowded marketplace. 2010S Finding and sustaining market niches is assisted by the promotional capabilities of the lnternet , which allow one-to-one" marketing and customization Of products. Many markets are crowded with multiple sellers chasing the same customers. For these sellers, competition lowers profitability Market gaps ー a new product or sector Of the market ー offer the enticing prospect Of healthy profitability But does the gap contain enough business tO generate a profit? There's a gap in the market, but is there a market in the gap?

TIMEIS MONEY 326 CD 夏 CONTEXT FOCUS Product development KEY DATES 5th century BCE The ancient Greeks use discounted cash flOW tO take into account the amount that money devalues during lengthy investment appraisal decisions. 1764 English inventor James Hargreaves invents the spinning jenny' ー a device that enables textile workers tO spin eight spools Of cotton at once,rather than only one. 1994 Nissan manager Chris Baylis claims that simultaneous engineering is the quickest and most effective way Of achieving optimum design solution". 2001 S oftware developers ⅲ Utah, USA, produce a manifesto for the agile software development approach. TIME-BASED MANAGEMENT can be completed simultaneously. teams all elements Of product design By forming multidisciplinary Of design tO the next. sequence, moving from one stage have been developed in a linear Traditionally, new products ime has a monetary value. For example, if employees spend an afternoon in an unpro ductive meeting, their time costs the firm money. There is alSO an "opportunity cost", as the meeting prevents them from dOing Other tasks that are potentially more productive. This is a typical concern Of time-based management, which appraises the use Of time in the same way that Other management models focus on raw materials and overheads. A time-based approach allows firms tO manage labour effectively across the firm, tO gather true-cost data, and tO cut costs by reducing the amount Of time taken tO develop and launch new products. One way tO reduce time costs on a project iS tO use a process called "simultaneous engineering

SUCCESSFUL S リ 241 customers' mind, in order tO Although Peter Drucker emphasized discover the desires, wishes and the importance Of knowing the the hidden causes Of their options, customer, he did not narrow this tO SO that there is a possibility tO get just asking the customer what they them what they want" want; he intended that business Neuromarketing iS one way Of should also think ahead and find understanding the customer, and ways tO innovate. "The ・ want' a it is actively used by companies business satisfies may have been such as Google and Disney tO test felt by the customer before he was offered the means Of satisfying it," consumer impressions. H01vAvrever, it is not in itself a solution tO knowing he reasoned. "lt remained a what customers want tO buy. A potential ・ want' until the action broader perspective is needed tO Of businessmen converted it intO truly understand a market and the effective demand. OnIy then is elements that shape it. ln some cases it iS pure innovation, driven Professor Ranjay GuIati doesn t mean we don't listen to by a desire tO transform the way maintains that the first step in customers, but it's hard for them people live through technology, that understanding the new, highly tO tell you what they want when gives customers something they competitive market Of the 21st didn't realise they wanted, though they've never seen anything century is asking customers the the need for it was there. Apple's remotely like it ". right questions; the most important Steve JObs instinctively iPad is an example 0f how forward ones being what problems and understood what the consumer thinking about what customers issues they are dealing with. But lives could be like can lead to wanted because he had the same he says that a business must make problem: the lack 0f a well-designed, market success. a creative leap tO figure out the portable device that would make innovations that will serve those communication and information- customer needs, if they want tO gathering fun and easy. survive in the market place. ・ Did Alexander Graham BeII do any market research before he invente d the telephone? Steve Jobs lnnovative solutions When the iPad was unveiled in 2010, investors and the press were sceptical, wondering whO would want one, given that a laptop computer had more functions and was only slightly bigger. The iPad was a sel ト Ol-1t because customers loved using it ー it was fun and fast, and allowed them to do all the things they enjoyed on their iP0d touch but with a bigger screen and a keyboard that was easier tO use. Apple CEO Steve J0bs claimed in an interview With Fortune magazine never tO have done consumer research. "lt isn't the consumer's jOb tO know what they want," he reportedly said. "That 27 を ツ Steve JObs Of Apple encouraged the firm tO take intO account the changing technological world and people 's existing daily habits tO provide an innovative solution tO an unfelt need: the iPad.

OrganizationaI learning involves both single-loop learning, where errors are identified and corrected, and double-loop learning, in which the assumptions that underlie specific actions are questioned and improved. BELIEFS ACTIVITIES OR TASKS RESULTS WORKING WITH A VISION 201 more dependent on technology. became more uncertain and firms the 1990S , as business conditions Of the learning organization grew in and Senge. lnterest in the concept focus Of scholars such as Argyris perceived negatives became the through which firms operate. These conventions, or technologies based on routines: the procedures, Single-loop learning Results show what needs tO be fixed or improved. Double-loop learning and assumptions that govern behaviour. culture Of the organization ー the values ResuIts also reveal the bigger picture: the The following year Argyris joined forces with MIT professor DonaId Schön to write the highly influential bOOk 〇 rganizati 〇 nal Learning. ・ Theory Ac 〇月 Perspective, which explored theories such as double-loop learning. G0ing further back, the first scientific studies Of learning within an organization were conducted in the mid-20th century. TWo theories Peter Senge in particular emerged tO dominate thinking ⅲ this area. The first, from Yale professor CharIes LindbIom in 1959 , was that action taken in organizations iS based on historical precedent rather than on anticipating the future. The second was set out by Richard Cyert and James March, who ⅲ 1963 published their observation that behaviour in organizations is A world-renowned expert 0 Ⅱ management and organizational learning, Peter Senge was born in Stanford, CaIifornia, in 1947 and studied aerospace engineering Stanford University. He went on tO obtain an MA in social systems and a PhD on management at MIT, and is no 、Ⅳ a senior lecturer at MIT's Sloan School Of Management. He is also the founding chair Of the global Society for Organizational Learning (SOL). Senge pioneered the concept Of " the learning organization" ー organization structured in a way that iS conducive tO new ideas, ln 1993 management innovation expert Mark Dodgson, then senior fellow at the Science Policy Unit of the University of Sussex, UK, linked economic uncertainty and rapid technological change tO an increased need for learning at all levels in a firm, citing the view Of psychologists that learning is the highest form of adaptation. D0dgson, like other scholars, made a distinction between organizational learning' ー When organizations learn a lesson from a particular event ー and "the learning organization" WhiCh embraces a continual process Of education and implements strategies tO initiate that process. ln Senge's opinion, organizations focused on continued learning will gain a competitive advantage in the marketplace. ■ reflection, and engaging its employees. AS he said on one occasion, a learning organization ・ is continually expanding its capacity tO create its future' . ln 1999 , the Jou てれ al of Business Strategy named Peter Senge a " Strategist of the Century" ー one of the 24 people whO had had the greatest influence bUSineSS strategy in the 20th century. Key 30 ー脈 s 1990 The F. 亡わ Discip1ine 1999 The Dance of Change