Harvard Business Review 5 years 2004 – 2009



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To: HBR_Letters

Sent: Monday, October 01, 2007 7:52 AM

Subject: Re: Labyrinth of Leadership
 

Dear Sirs

 

I read the article Labyrinth of Leadership in the September issue of HBR with interest. The article argues that there are still a myriad of little things that hold women back including biases that because of other commitments like children and home they will be less committed than men. This may well be true but trend wise it seems that the problem is reducing as female academic qualifications and participation the work force are getting significant and close to the numbers for males. Change in this respect is visible everywhere.



It may well be that the traditional multitasking that women face are not just forced tradeoffs but voluntary tradeoffs. The top performers/ office holders in US industry more often than not lead a very unbalanced type of life where work perhaps demands an unreasonable amount of focus and time commitment. This in itself may lead to a lower quality life and a riskier leadership profile, sustainable neither for the individual nor for the corporation.

This begs the question if the world isn’t better off with more female characteristics leaders with a more balanced view and life experience. One would have to wonder if the hugely costly war in Iraq would have been embarked upon by a female president or if Enron would have experienced the same scandalous demise with female top management. This century holds out good hope that gender and other type of discrimination will diminish and even disappear.

To get to the very top you need an almost inhuman commitment that throws out any chance of leading a balanced life. I enjoy tennis but do I want to play ten hours a day for the prospect of playing at Wimbledon? One to two hours a day every other day is enough for me. To be at CEO level of a major corporation you work or are on call 24 hours seven days a week. And often you are incented to minimize cost including what staff are paid and cost of customer service. Does any amount of money justify spending your life like that? And if you are ready to throw all other human concerns over board to reach your goal will the issues of ethics and the environment also seem expendable. With CEO paid up to 500 times workers compensation the chances of ever achieving team spirit between the boss and the people - perhaps one of the greatest rewards of leadership - are out of the question.

My view is that female characteristics and qualities are in great need in the corporate world. The world is screaming out for a more caring attitude as key leadership criteria - and stereotypical male aggression and war analogies should not be held up as desirable.

I thought this verse by Robert Louis Stevenson pertinent.

Business and Idleness

Extreme business, whether at school or college, kirk or market,

is a symptom of deficient vitality, and a faculty of idleness implies

a catholic appetite and a strong sense of personal identity. There is

a sort of dead-alive, hackneyed people about, who are scarcely

conscious of living except in the exercise of some conventional

occupation….they cannot be idle, their nature is not generous enough;

and they pass those hours in a sort of coma, what are not dedicated

to furious moiling in the gold mill.

Robert Louis Stevenson 1881


Frank Olsson

Investigative Negotiations by Deepak Malhotra and Max Bazerman

Principle 1. Don’t just discuss what your counterparts want – find out why they want it.

Principle 2. Seek to understand and mitigate the other side’s constraints.

Principle 3. Interpret demands as opportunities.

Principle 4. Create common ground with adversaries.

Principle 5. Continue to investigate even after the deal appears to be lost.

Notes by frank@olsson.co.nz

Harvard Business Review July – August 2007

This issue is about managing for the long term. There are many interesting articles that deserve to be read in their entirety. So what did I learn by reading the issue? I am not so sure a lot was new but the points have largely been made before. Don’t get trapped in the three months’ perspective. Spend time looking out. Medium term clarity may be a better bet than futuristic analysis as the former is easier to convert to action than the latter. Incentive systems often skew things to the near future. It is wise to look at environmental impact of all you do. This has the potential to save a lot of money and also will assist you in surfing through big waves that may otherwise be lethal to your business.

Please find below a few notes from the articles in this month’s edition.

Productivity Is Killing American Enterprise by Henry Mintzberg

Get the analysts off the back of the corporations. Companies can’t be managed from a securities analyst’s office. Great enterprises are built slowly and thoughtfully by people who are fully engaged. Let’s begin by getting rid of quarterly earnings. Who ever came up with the absurd notion that the fortunes of great enterprises can be discerned from one three-month period to the next? Quarterly reports keep management myopically focused on immediate measurable results instead of on products, services and customers.

Take corporate governance seriously. Keep the mercenaries out of the executive suits. Treat the enterprise as a community of engaged members, not as a collection of free agents.

American enterprise needs to get out of the impossible state it is in now. For the sake of American society, as well as the American economy, it is time to get past productivity.

Be A Socially responsible Corporation by Marianne Barner, director corporate communications, IKEA.

We have to reflect what our customers and other stakeholders value.

So far our biggest problem in embedding CSR (corporate social responsibility) has been communicating to our people what we are doing. Like most large retailers, we have a high staff turnover in the stores. And the plight of third world children can seem remote. But when it comes to climate change, I think everyone will get engaged. It hits us all so directly. We offered screenings of Al Gore’s film ‘An Inconvenient Truth’ in some of our units and the interest was incredible. No company will be able to shirk social responsibility. My advice to managers is that becoming socially responsible corporations takes longer than you think and involves not a giant leap but thousands of small steps.

Four Principles of Enduring Success by Christian Stadler


  1. Exploit before you explore – emphasizing existing assets and capabilities over exploring for new ones

  2. Diversify your business portfolio – great companies know when to diversify. They are careful to maintain a wide range of suppliers and a broad base of customers

  3. Remember your mistakes – tell of past failures to ensure they are not repeated.

  4. Be conservative about change – great companies seldom make radical changes – and take great care in their planning and implementation

Few people today would dispute that conglomeration is a poor strategy. But the antidote – firms focusing on a single business or set of capabilities – does not seem much better when viewed from a long term perspective. Firms with multiple but related business fare better.

We sometimes think we live in the most revolutionary of times. But recalling challenges of the past should remind us that every generation thinks it lives in the most revolutionary of times.

Lessons from Toyota’s Long Drive – interview of Katsuki Watanabe, Toyota’s 65 year old president.

Toyota’s market capitalization at US $ 186.71 billion is almost six times the combined market cap of GM and Ford. This year marks the 70th year of Toyota’s founding and 50 years of exporting to the USA.

We must make problem issues visible. Hidden problems are the ones that become serious threats eventually. If problems are revealed for everybody to see, I will feel reassured. Because once problems have been visualized, even if our people didn’t notice them earlier, they will rack their brains and find solutions to them.

We have been humble; that has been the traditional Toyota character. Now, of course, we constantly remind ourselves, don’t be arrogant.

There is no genius in our company. We just do whatever we believe is right, trying every day to improve every little bit and piece. But when 70 years of very small improvements accumulate, they become a revolution.

Focus on the middle term by Geoffrey A Moore

Strategy’s no-man’s land lies between the budget and the long-term plan. The scarcest resource in Horizon 2 is a leader who knows how to build business to a level where existing operations can take it over. Only by focusing on the horizon 2 challenge will the horizon 3 investments provide support in horizon 1.

Building a leadership brand by Dave Ulrich and Norm Smallwood

You want your leaders to be the kind of people who embody the promises your company makes to its customers. To build this capability, follow these five principles.

1. Nail the prerequisites of leadership. 2. Connect your executives’ abilities to the reputation you’re trying to establish. 3. Assess leaders against the statement of leadership brand. 4. Let the customers and investors do the teaching. 5. Track the long term success of your leadership brand efforts.

If brands are built over years, why are they managed over quarters? By Leonard M Lodish and Carl F Mela.

By focusing consumers’ attention on extrinsic brand cues such as price instead of intrinsic cues such as quality, promotions make brands appear less differentiated.

Brand management today is like trying to drive a car by looking only a few feet ahead. The drivers can change direction rapidly, but they’re not necessarily on a path that will take them where they want to go. Mounting evidence suggests that short-term orientation erodes a brands ability to compete in the market place. Accordingly, managers are well advised to refocus their attention on the basic principles that once made their brands ascendant.

The Making of an Expert by Anders Ericsson, Michael Prietula and Edward Cokley

What does correlate with success? All the superb performers have practiced intensively, have studied with devoted teachers, and have been supported enthusiastically by their families throughout their developing years.

The journey to truly superior performance is neither for the faint of heart nor for the impatient. The development of genuine expertise requires struggle, sacrifice, and honest, often painful self-assessment. There are no short-cuts. It will take you at least a decade to achieve expertise and you will need to invest time wisely, by engaging in deliberate practice – practice that focuses on tasks beyond your current level of competence and comfort. You will need a well informed coach not only to guide you through deliberate practice but also to help you learn how to coach yourself. Forget the folklore about genius.

Many people are naïve about how long it takes to become an expert. Leo Tolstoy once observed that people often told him they didn’t know whether or not they could write a novel because they hadn’t tried – as if they only had to make a single attempt to discover their natural ability to write.

Mozart was not born an expert – he became one. His musical tutelage started before he was four years old, and his father, also a skilled composer, was a famous music teacher and had written one of the first books on violin instruction.

Six Rules for Effective Forecasting by Paul Saffo

The primary goal of forecasting is to identify the full range of possibilities, not a limited set of illusory certainties. Whether a specific forecast turns out to be accurate is only part of the picture – even a broken clock is right twice a day. Above all, the forecaster’s task is to map out the uncertainty, for in a world where our actions in the present influence the future, uncertainty is opportunity.

The consumer of the forecast must understand enough of the forecast process and logic to make an independent assessment of its quality – and to properly account for the opportunities and risks it presents.

The best way to make sense of what lies ahead is to forecast for yourself.

A Road Map for Natural Capitalism by Amory Lovins, Hunter Lovins and Paul Hawken

The journey to natural capitalism involves four major shifts in business practices, all virtually interlinked.



  1. Dramatically increase the productivity of natural resources

  2. Shift to biologically inspired production models

  3. Move to a solutions based business model

  4. Reinvest in natural capital

Hypercars and their cousins could ultimately save as much oil as Opec now sells. Indeed, oil may well become uncompetitive as a fuel long before it becomes scarce and costly.

Whether through better design or through new technologies, reducing waste represents a vast business opportunity. The US economy is not even 10% as energy efficient as the laws of physics allow. Just the energy thrown off as waste heat by US power stations equals the total energy use of Japan. Materials efficiency is even worse: only about 1 % of all materials mobilized to serve America is actually made into products and still in use six months after sale.

Numerous case studies show that companies leading the way in implementing changes that help protect the environment tend to gain disproportionate advantage, while companies perceived as irresponsible lose their franchise, their legitimacy, and their shirts. A strong environmental rating is a consistent predictor of profitability.

The logic of economizing on the scarcest resource, because it limits progress, remains correct. But the pattern of scarcity is shifting: Now people aren’t scarce but nature is. This shows up first in industries that depend directly on ecological health. Here, production is increasingly constrained by fish rather than by boats and nets, by forests rather than by chain saws, by fertile top soil rather than by ploughs. Moreover, under the traditional factors of industrial production – capital and labour – the biological limiting factors cannot be substituted for one another. In the industrial system, we can easily exchange machinery for labour. But no technology or amount of money can substitute for a stable climate and a productive biosphere. Even proper pricing can’t replace the priceless.

Natural capitalism addresses those problems by reintegrating ecological with economic goals. Because it is both necessary and profitable, it will subsume traditional industrialism within a new economy and a new paradigm of production, just as industrialism previously subsumed agrarianism. The companies that first make the changes we have described will have a competitive edge. Those that don’t make that effort won’t be a problem because ultimately they won’t be around.

Notes by frank@olsson.co.nz 2nd September 2007

Harvard Business Review June 2007

The theme of this issue is how successful leaders think. And the main point in displaying greatness in this context is to not look for this or that i.e. either or – but to look for the ability to combine ideas and capture the strong points from opposing propositions and ideas. Good leaders tailor – they keep all possibilities alive, rejecting none. Good leaders listen widely and well – they want to find the smartest person in the room – not to be that person.

If you love your information – set it free.

How Successful Leaders think by Roger Martin

Leaders with exemplary records seem to have the predisposition and capacity to hold in their heads two opposing ideas at once. And then without panicking or simply settling for one alternative or another, they are able to creatively resolve the tension between those two ideas by generating a new one. By forcing a choice between the two we disengage the opposite mind before it can seek a creative solution.

Scorched Earth – Environmental Risks in China by Elizabeth Economy and Kenneth Liebertahl.

Many multinationals think they understand, have tried to mitigate, the serious risks posed by operating in China – intellectual property rights violations, corruption, lack of transparency, potential political instability. Yet one of the highest risks of all – China’s massive environmental degradation – is barely discussed in corporate boardrooms.

Already 400,000 people die every year as a result of air pollution. Access to usable water is becoming increasingly problematic for several hundred million people. 40 % of China suffers from soil erosion. The Chinese dessert, already covering one quarter of its land –is expanding at a rate of 1,900 square miles per year. On the positive side, forest coverage has increased from 16.6 % to 18.21 %

Despite the challenges, multinationals can’t afford not to do the right thing. Chinese government leaders, NGOs, and the media expect the international community to take the lead. Environmental degradation, moreover, is producing risk and providing opportunities that must be factored into corporate strategies. In approaching this issue, companies must also consider the challenges and opportunities posed by China’s political economy. On the plus side, though, multinationals can often profitably leverage efforts made in China in other markets.

The bottom line is that environmental factors can seriously affect China’s overall future trajectory. Ho well multinationals address environmental issues will affect their fortunes in one of the most important growth economies in the world.

The New Deal at the Top by Yves L. Doz and Mikko Kosonen

Authoritative CEOs find the new deal particularly difficult, because it requires them openly to accept – even encourage – challenges to their thinking.

The Old Deal and the New

The Old Deal



  1. Individual responsibility for unit performance.

  2. Independent units pursue separate business strategies

  3. Financial measurements and controls; deregulation of strategic choices

  4. Functional and unit specific expertise

  5. Results oriented: emphasis on outcome control

The New Deal

  1. Collective responsibility for corporate performance

  2. Interdependent unit heads integrate corporate strategy and value creation

  3. Transparent measurements demonstrating how interdependencies improve performance; substantive strategic dialogue by the top team

  4. Overlapping experience and responsibility

  5. Values oriented: emphasis on normative control (promoting internalized rules for behaviour)

Work together – focus on corporate issues, keep the dialogue informal, make time for reflection, keep a fresh perspective, put the CEO in a subordinate role, establish transparent accounting and performance measurements.

New deal companies prize diversity and debate - not only at the top but all the way down the organization. Far from seeking to diminish the authority of senior executives, they try to extend it across the corporation.



frank@olsson.co.nz 24th June 2007

Harvard Business Review May 2007

Not the greatest of HBR issues but some interesting articles! A few notes attached.

Service with a big smile: If managers want employees to deliver service with a big smile they can do better than command it. They could create an environment that encourages genuine smiles and also try to hire happy people.



My comment: If we want the customer to be happy we should ensure our staff is. If you have anything but happy staff you represent an opportunity cost. The happiness virus cannot be transmitted from someone not having it.

A larger language for Business by David Whyte

There is a temptation to say: “I’d much rather inhabit the 5% of reality where I am in control than the 95% where I don’t know what the hell is going on. Ask yourself, what is the courageous conversation I am not having, but need to have to take the next step?

In the revival of Marks and Spencer three things were in focus: Improve the product; Improve the stores, and Improve the service. If you can do these three you are away.

Surviving your new CEO by Kevin P. Coyne and Edward J Coyne SR

It may be tempting to wait and see what the new CEO wants of you instead of taking the initiative to talk about your responsibilities, but this is the wrong approach. Most of the CEOs we interviewed indicated that too many executives doomed themselves from the start simply by failing to manifest a willingness to be part of the new team. “Managers do not realize how much the CEO is looking for team mates on day one. I am amazed at how few people come through the door and say ‘I want to help. I may not be perfect, but I buy into your vision.’ That alone makes a huge difference. It is naïve and stupid for managers to hold back and e guarded. Ask the new CEO some intelligent questions about how to work together. If managers put themselves into the new CEOs position they could often improve of the chances of success. The new boss will be looking for constructive suggestions on actions that she or he can take quickly. Can you help? The best way you can improve your standing quickly is to take on a project in which you must interact extensively with the new leader. It is important not to appear self serving.

Make your personal decision about whether the new guy’s style, vision and business practices are ones that you want to live with. Then commit or get out. Otherwise everyone’s life will be hell. And the result will be the same anyway.

Inner work life by Teresa M. Amabile and Steven J Kramer

Positive emotion is tied to higher creativity. People are over 50% more likely to be creative when in a positive mood. The single most important criteria for perceiving it a good day is connected to a sense of being able to make a difference in your work.

As the proportion of time that is claimed by work rises, inner work life becomes a bigger component of life itself. People deserve happiness. They deserve dignity and respect. When we act on that realization, it is not only good for business. It affirms our value as human beings.

Strategies to Crack well guarded markets by David J Bryce and Jeffrey H. Dryer

Smart Companies use three fundamental approaches, usually combining at least two of them, to break into profitable markets.



Leverage existing assets; Companies use what you already have, often supplementing their asset and resources with a partner’s, to overcome entry barriers.

Reconfigure value chains; Entrants change the activities or the sequence of activities they perform to deliver value to customers.

Establish Niches; Enterprises develop offerings with features that don’t initially appeal to mainstream customers but attract customers in a fringe segment

Notes by frank@olsson.co.nz June 3, 2007

Harvard Business Review April 2007

One of the more interesting issues with several articles well worth reading in their entirety like ‘Finding Your Next Core Business,’ ‘The Essence of Execution,’ ‘Avoiding Integrity Land Mines,’ and ‘Human Due Diligence.’

One message that comes across loud and clear is ‘carve out enough time to think.’ There is often such a strong ‘can do’ and ‘just do it’ mantra that people don’t leave enough time to see where they are going. Thinking time may look passive and unproductive, but without it, minor and major mistakes are bound to increase. The urge to look and be busy must not be allowed to drive out good thinking.

This verse from 1881 by Robert Louis Stevenson (which I came across a few years ago) refers:



Business and Idleness

Extreme business, whether at school or college, kirk or market,

is a symptom of deficient vitality, and a faculty of idleness implies

a catholic appetite and a strong sense of personal identity. There is

a sort of dead-alive, hackneyed people about, who are scarcely

conscious of living except in the exercise of some conventional

occupation….they cannot be idle, their nature is not generous enough;

and they pass those hours in a sort of coma, what are not dedicated

to furious moiling in the gold mill.
I am not suggesting that being idle and thinking are the same thing but if too busy, it is hard to think clearly. Please find below a few notes from the April HBR issue:
Book reviewed: The Halo Effect by Phil Rosenzwig
What leads to high performance? Since people love being on winning teams, it may be that it’s the great financial results that are creating positive vibes in hall-ways rather than the other way around. The Halo-effect distorts the judgment of analysts and journalists – and in turn the findings of management. Particularly management scholars would benefit from reading this book.
Why didn’t we know? By Ralph Hasson
This article emphasizes the need to be transparent and communicate bad news and wrong doing early to allow issues to be kept in the bud. Few organizations have that kind of trust and openness. Management needs to encourage ethics and free communication.
Preparing for the perfect product launch by James P. Hackett

If you ask most people what it means to execute well, they usually say “getting things done.” Boards tell CEO’s that they want to get things done. We tell our managers to get things done, and they make sure everyone who reports to them gets more things done. Companies celebrate their ‘can-do’ culture. (Incidentally, this is what Robert McNamara said was one of the major things that wrong with the Vietnam War too – that the Military always was ‘can-do’ instead of using sufficient critical thinking.) Later on, after the errors show up, we all wish we had been more rigorous in scouting out the territory before we sprinted down the execution path. Many organizations make the mistake to put all the energy into execution before the idea is properly thought through. When people tell you the one thing they could use more of is time, what they are really saying is that they need more time to think. Critical thinking has four phases:



  • THINK, ponder, query, read and research, network, document.

  • SET THE POINT OF VIEW, conduct a collegial open discussion, determine the direction, assign an owner for the point of view, stay the course.

  • PLAN IMPLEMENTATION, clarify, refine, consider all stakeholders, practice, practice, practice.

  • IMPLEMENT, select a spokesperson, play to win, celebrate the victory.

It takes a great deal of courage and confidence for people anxious to take the world by storm to slow down, think explore all the possible options, and be ready to pull the plug if the information points away from success. Key is to understand the difference between getting things done and getting things done the right way. By bringing thinking and doing into proper balance we will be better prepared to meet the future.


What Your Leader Expects of You by Larry Bossidy.
Get Involved. There is no excuse for not getting involved when you see a problem growing. I count on my direct reports to take the blame for things that go wrong and give credit for positive developments to their employees. And I expect them to have the courage to deliver bad news. If you’ve got to close a plant, go to the plant and tell those employees yourself. Good managers generally step in under three types of circumstances: when somebody is falling behind in her commitments; when important staff matters arise, particularly if there is conflict; and in a crisis. Just because you are an executive vice president doesn’t mean you don’t have to work anymore.

Get Ideas. Somebody suggested we hire a band, put out hamburgers and hot dogs at midday, and make lots of noise, so the employees would feel there was a reason for optimism. A lot of people said it was corny and wouldn’t work – but it did and it became an annual event. When sales of a particular liquid declined, one manager proposed we paint the canister bright colours instead of industrial grey we had been using. The idea was met with derision, but we tried it, and it made a difference.
Be willing to collaborate. You must be willing to help the next division even if it means some slight set-back for yours. (my comment: This line from Sir Thomas Moore’s Utopia refers: You are high in my reverence and estimation, if you can find it in your heart so to appoint and dispose yourself, that you may apply your wit and diligence to the profit of the weal public, though it be somewhat to your own pain and hindrance.) People who don’t co-operate or communicate cannot be tolerated.

Be willing to lead initiatives. Step up to challenges.

Develop leaders as you develop. Too many people are selfish about their development. Take as much interest in your ‘subordinates’ careers as in your own.

Stay current. Know what’s going on in the world in which we operate.

Anticipate. Don’t work so hard that you don’t have time to look up to spot the iceberg.

Drive your own growth. Seek perpetual education and development.

Be a player for all seasons. Keep your energies and drive in adversity.
What the leader owes his direct reports.

Set goals and objectives; Give frequent, specific and immediate feedback; Be decisive and timely; Be accessible, Demonstrate honesty and candor, Offer an equitable compensation plan.


Much of what is commented on has to do with keeping the bureaucracy at bay Bureaucracy is self-perpetuating, and cutting through it is a constant battle. You can never truly get rid of it.

Finding Your Next Core Business by Chris Zook


Good article that derives a full read. It says that in 80 % of companies examined, a hidden asset was at the centerpiece of the new strategy. Business leaders are acutely aware of these waves of change and their ramifications. In 2004 my colleagues and I surveyed 259 senior executives around the world about the challenges they faced. More than 80% of them indicated that the productive lives of their strategies was getting shorter. 72 % believed that their leading competitor would be a different company in 5 years. 65 % believed that they would need to restructure the business model that served their primary customers. As the focus-expand-redefine cycle continues to pick up speed, each year will find more companies in that fateful third phase, where redefinition is essential. For most, the right way forward will lie in assets that are hidden from view – in neglected businesses, unused customer insights, and latent capabilities that, once harnessed, can propel new growth.

Promise – Based management by Donald N. Sull and Charles Spinoza

Promises are the fundamental units of interaction in business. They coordinate organizational activity and stoke the passion of employees, customers, suppliers, and other stake holders. While they hold an organization together, they are as fragile as they are crucial. Individual’s divergent worldviews and objectives tug constantly at the filaments of promises, and unexpected contingencies can tear precarious agreements. Leaders must therefore weave and manage their webs of promises with great care – encouraging iterative conversation to make sure commitments are fulfilled reliably. If they do, they can enhance coordination and cooperation among colleagues, build the agility required to seize new business opportunities, and tap employees’ entrepreneurial energies.
Avoiding Integrity Land Mines by Ben W. Heineman, Jr,

A thunderous message is sent when a senior leader is removed not for failing to follow key rules but for failing to create the right culture. Ultimately it is a company’s culture that sustains high performance with high integrity.

Notes by frank@olsson.co.nz 12th May 2007

Harvard Business Review March 2007

Getting the Most out of Top Talent.

Leader: Truly talented people start to suffocate if they are not learning. Your return on people is becoming the crucial measure. Things like leadership development, job design, and knowledge sharing have a profound impact on your bottom line and sustainability.

Pursuit of happiness: Ideally businesses improve lives by creating things people want. At the very least, companies produce wealth (which at the individual level, is an imperfect but passable proxy for happiness). A Global Projection of subjective well-being shows a map suggesting the highest levels are to be found in US and Canada, Scandinavia and Switzerland, The Emirates and Australia - New Zealand. See further http://www.le.ac.uk/pc/aw57/world/sample.html

The Ethical Mind a conversation with Psychologist Howard Gardner.

A US Roper poll in 2005 revealed that 72 % of respondents believed wrongdoing was widespread in industry. Only 2 % felt that leaders of large firms were “very trustworthy” (a drop from 3 % in 2004), and the pattern is “not improving.” Meanwhile, the public increasingly demands that companies take batter care of their employees, communities, and the environment.

A study conducted by Duke University recently found that 56 % of students in the United States pursuing a master’s degree in business administration admitted to cheating – the highest rate of cheating in graduate student groups. If you are a very ambitious MBA student and the people around you are cheating on their exams, you may assume that cheating is the price of success (similarly with corruption – my comment). You might even come to think of ethical behaviour as a luxury .

In the end, you need to decide which side you’re on. There are so many ways in which the world could spiral either up toward health and a decent life for all or down into poverty, disease, ecological disaster – even nuclear warfare. If you are in a position to tip the balance, you owe it to yourself, to your progeny, to your employees, to your community, and to the planet to do the right thing.

Leading Clever People – by Rob Goffee and Gareth Jones

In research there aren’t economies of scale, there are economies of ideas. If clever people have one defining characteristic, it is that they do not want to be led. This creates a challenge for you as a leader.

If you try to push cleaver people you will end up driving them away. As many leaders of highly creative people have learned, you need to be a benevolent guardian rather than a traditional boss. You need to create a safe environment for your clever employees; encourage them to experiment and play and even fail; and quietly demonstrate your expertise and authority all the while. Give them the space they need to be productive.

Competitive Advantage on a Warming Planet by Jonathan lash and Fred Wellington

Our belief is that global warming does in fact pose a serious problem to the earth. The build up of green house gases in the atmosphere is changing the earth’s climate at a rate unprecedented in history. Ignoring the financial and competitive consequences of climate change could lead a company to formulate an inadequate risk profile. 76 % of Americans believe global warming is a serious problem and one half believe it is a very serious one. Other countries report an even greater concern on the part of residents. There is great potential for consumer or shareholder backlash particularly in environmentally sensitive markets.

The most successful efforts for firms to develop suitable strategies include four steps. 1. Quantify your carbon foot print. Quantifying your footprint sends a strong signal that you recognize the importance of climate change as a business risk – and an opportunity. 2. Assess your carbon related risks and opportunities. 3. Adapt your business in response to the risks and opportunities. Moves range from the obvious reductions in energy consumption and carbon emissions to sometimes wholesale reinventions of parts of your business. 4. Do it better than your competitors. Doing well by doing good is no longer enough. You have to be better at it than your competitors. And that means bating them in both areas: reducing exposure to climate related risks and finding business opportunities within those risks. Detroit’s failure to develop innovative low-carbon technologies may be their greatest obstacle to their recovery.

Realizing What You’re Made Of by Glenn E. Mangurian.

Wisdom from adversity – the author one day permanently lost movement in both his legs.

You can’t know what happens tomorrow – and it is better that way. Engage with the present. You can’t control what happens, just how you respond. Successful people are accustomed to being in control, but adversity strikes unannounced. Adversity distorts reality but crystallizes the truth. Adversity shows you what is important to you, who your friends are and what you are capable of. Loss amplifies the value of what remains. It pushes you to take stock of what you have, allowing you to liberate yourself from petty or irrelevant matters and celebrate your assets. It is easier to create new dreams than to cling to broken ones. Your happiness is more important than righting injustices. Attempting to seek justice or to assign blame is draining and usually futile.

Notes by frank@olsson.co.nz 10th March 2007

Harvard Business Review February 2007

I found this issue of HBR particularly interesting and useful. The issue is called Breakthrough ideas for 2007 and many articles are worth reading in full. I particularly liked the brief article ‘The Leader from Hope’ and In Praise of the Incomplete Leader. Please find below a few notes from key articles.



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