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The Real Reason People Won't Change (HBR OnPoint Enhanced Edition)
Every manager is familiar with the employee who just won't change. Sometimes it's easy to see why--the employee fears a shift in power or the need to learn new skills. Other times, such resistance is far more puzzling. An employee has the skills and smarts to make a change with ease and is genuinely enthusiastic--yet, inexplicably, does nothing. What's going on? In this article, two organizational psychologists present a surprising conclusion. Resistance to change does not necessarily reflect opposition nor is it merely a result of inertia. Instead, even as they hold a sincere commitment to change, many people unwittingly apply productive energy toward a hidden competing commitment. The resulting internal conflict stalls the effort in what looks like resistance but is in fact a kind of personal immunity to change. An employee who's dragging his feet on a project, for example, may have an unrecognized competing commitment to avoid the even tougher assignment--one he fears he can't handle--that might follow if he delivers too successfully on the task at hand. Without an understanding of competing commitments, attempts to change employee behavior are virtually futile. The authors outline a process for helping employees uncover their competing commitments, identify and challenge the underlying assumptions driving these commitments, and begin to change their behavior so that, ultimately, they can accomplish their goals..
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Defeating Feature Fatigue (HBR OnPoint Enhanced Edition)
Consider a coffeemaker that offers 12 drink options, a car with more than 700 features on the dashboard, and a mouse pad that's also a clock, calculator, and FM radio. All are examples of "feature bloat," or "featuritis," the result of an almost irresistible temptation to load products with lots of bells and whistles The problem is that the more features a product boasts, the harder it is to use. Manufacturers that increase a product's capability--the number of useful functions it can perform--at the expense of its usability are exposing their customers to feature fatigue. The authors have conducted three studies to gain a better understanding of how consumers weigh a product's capability relative to its usability. They found that even though consumers know that products with more features are harder to use, they initially choose high-feature models. They also pile on more features when given the chance to customize a product for their needs. Once consumers have actually worked with a product, however, usability starts to matter more to them than capability. For managers in consumer products companies, these findings present a dilemma: Should they maximize initial sales by designing high-feature models, which consumers consistently choose, or should they limit the number of features to enhance the lifetime value of their customers? The authors' analytical model guides companies toward a happy middle ground: maximizing the net present value of the typical customer's profit stream. The authors also advise companies to build simpler products, help consumers learn which products suit their needs, develop products that do one thing very well, and design market research in which consumers use actual products or prototypes..
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Level 5 Leadership: The Triumph of Humility and Fierce Resolve (HBR OnPoint Enhanced Edition)
Boards of directors typically believe that transforming a company from merely good to truly great requires a larger-than-life personality--an egocentric chief to lead the corporate charge. Think "Chainsaw" Al Dunlap or Lee Iacocca. In fact, that's not the case, says author and leadership expert Jim Collins. The essential ingredient for taking a company to greatness is having a "Level 5" leader at the helm--an executive in whom extreme personal humility blends paradoxically with intense professional will. Collins paints a compelling and counterintuitive portrait of the skills and personality traits necessary for effective leadership. He identifies the characteristics common to Level 5 leaders: humility, will, ferocious resolve, and the tendency to give credit to others while assigning blame to themselves. Collins fleshes out his Level 5 theory by telling colorful tales about 11 such leaders from recent business history. He contrasts the turnaround successes of outwardly humble, even shy, executives like Gillette's Colman M. Mockler and Kimberly-Clark's Darwin E. Smith with those of larger-than-life business leaders like Dunlap and Iacocca, who courted personal celebrity. The jury is still out on how to cultivate Level 5 leaders and whether it's even possible to do so, Collins admits. Some leaders have the Level 5 seed within; some don't. But Collins suggests using the findings from his research to strive for Level 5--for instance, getting the right people on board and creating a culture of discipline. "Our own lives and all that we touch will be better for the effort," he concludes..
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Will Disruptive Innovations Cure Health Care? (HBR OnPoint Enhanced Edition)
It's no secret that health care delivery is convoluted, expensive, and often deeply dissatisfying to consumers But what is less obvious is that a way out of this crisis exists. Just as the PC replaced the mainframe and the telephone replaced the telegraph operator, disruptive innovations are changing the landscape of health care. Nurse practitioners, general practitioners, and even patients can do things in less-expensive, decentralized settings that could once be performed only by expensive specialists in centralized, inconvenient locations. But established institutions are fighting these innovations tooth and nail. Not only is this at the root of consumer dissatisfaction with the present system, it sows the seeds of its own destruction. The history of disruptive innovations tells us that incumbent institutions will be replaced with ones whose business models are appropriate to the new technologies and markets. Instead of working to preserve the existing systems, regulators, physicians, and pharmaceutical companies need to ask how they can enable more disruptive innovations to emerge. If the natural process of disruption is allowed to proceed, the result will be higher quality, lower cost, more convenient health care for everyone..
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Leading Change: Why Transformation Efforts Fail (HBR Classic) (HBR OnPoint Enhanced Edition)
Businesses hoping to survive over the long term will have to remake themselves into better competitors at least once along the way. These efforts have gone under many banners: total quality management, reengineering, rightsizing, restructuring, cultural change, and turnarounds, to name a few. In almost every case, the goal has been to cope with a new, more challenging market by changing the way business is conducted. A few of these endeavors have been very successful. A few have been utter failures. Most fall somewhere in between, with a distinct tilt toward the lower end of the scale. John P. Kotter is renowned for his work on leading organizational change. In 1995, when this article was first published, he had just completed a 10-year study of more than 100 companies that attempted such a transformation. Here he shares the results of his observations, outlining the eight largest errors that can doom these efforts and explaining the general lessons that encourage success. Unsuccessful transitions almost always founder during at least one of the following phases: generating a sense of urgency, establishing a powerful guiding coalition, developing a vision, communicating the vision clearly and often, removing obstacles, planning for and creating short-term wins, avoiding premature declarations of victory, and embedding changes in the corporate culture. Realizing that change usually takes a long time, says Kotter, can improve the chances of success..
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What Is Strategy? (HBR OnPoint Enhanced Edition)
Today's dynamic markets and technologies have called into question the sustainability of competitive advantage. Under pressure to improve productivity, quality, and speed, managers have embraced tools such as TQM, benchmarking, and reengineering. Dramatic operational improvements have resulted, but rarely have these gains translated into sustainable profitability. And gradually, the tools have taken the place of strategy. As managers push to improve on all fronts, they move further away from viable competitive positions. Michael Porter argues that operational effectiveness, although necessary to superior performance, is not sufficient, because its techniques are easy to imitate. In contrast, the essence of strategy is choosing a unique and valuable position rooted in systems of activities that are much more difficult to match..
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Disruptive Technologies: Catching the Wave (HBR OnPoint Enhanced Edition)
One of the most consistent patterns in business is the failure of leading companies to stay at the top of their industries when technologies or markets change. Why is it that established companies invest aggressively--and successfully--in the technologies necessary to retain their current customers but then fail to make the technological investments that customers of the future will demand? The fundamental reason is that leading companies succumb to one of the most popular, and valuable, management dogmas: they stay close to their customers. To remain at the top of their industries, managers must first be able to spot disruptive technologies. To pursue these technologies, managers must protect them from the processes and incentives that are geared to serving mainstream customers. And the only way to do that is to create organizations that are completely independent of the mainstream business..
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What Leaders Really Do (HBR OnPoint Enhanced Edition)
Leadership and management are two distinctive and complementary systems of action, each with its own function and characteristic activities. Management involves coping with complexity, while leadership involves coping with change. Most U.S. corporations actively seek out people with leadership potential and expose them to career experiences designed to develop that potential..
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The Balanced Scorecard: Measures That Drive Performance (HBR OnPoint Enhanced Edition)
During a year-long research project, the authors developed a "balanced scorecard" performance measurement system that allows executives to view a company from several perspectives simultaneously. The scorecard includes financial measures that reveal the results of actions already taken, as well as three sets of operational measures that show customer satisfaction, internal processes, and the organization's ability to learn and improve. Creating a balanced scorecard requires translating a company's strategy and mission statement into specific goals and measures. Managers then track those measures as they work toward their goals..
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The Perfect Paradox of Star Brands: An Interview with Bernard Arnault of LVMH (HBR OnPoint Enhanced Edition)
Few companies can boast a collection of star brands like LVMH Moet Hennessy Louis Vuitton, the French powerhouse that owns the likes of Dior, Dom Perignon, and TAG Heuer. What accounts for the company's spectacular success? In a rare interview, the chairman of LVMH, Bernard Arnault, opens the window on that question with HBR editor Suzy Wetlaufer. Arnault identifies how companies build star brands and describes the process LVMH uses to create its wildly innovative products. First, the luxury goods giant begins with radical innovation--an unpredictable, messy, highly emotional activity that the company wholly endorses. Artists must be completely unfettered by financial and commercial concerns, Arnault insists, to do their best work. When it comes to getting that creativity onto the shelves, however, LVMH banishes such chaos. The company imposes strict discipline on its manufacturing processes. Through near-draconian manufacturing disciplines, the company is able to achieve exceptionally high productivity. The bottom line is that LVMH has one goal: star brands. According to Arnault, star brands are born only when a company manages to make products that "speak to the ages" but feel intensely modern..
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