Harvard Business Review - 2006.04.pdf

60Home Depots Blueprint for Culture ChangeRam Charan 72When Should a Leader Apologizeand When Not?Barbara Kellerman 82Localization:The Revolution in ConsumerMarketsDarrell K.Rigby and Vijay Vishwanath 96Innovation:Improving Your Odds98 Match Your Innovation Strategy to Your Innovation EcosystemRon Adner 108 Manage Customer-CentricInnovationSystematicallyLarry Selden and Ian C.MacMillan 18Forethought33HBR Case StudyHow Low Will You Go?Mary Edie Mobley and John Humphreys 47Different Voice Lessons in Power:Lyndon Johnson Revealed A Conversation with Historian Robert A.Caro 124Tool Kit Your Loyalty Program Is Betraying YouJoseph C.Nunes and Xavier Drze 133Best Practice The Unexpected Benefits of Sarbanes-OxleyStephen Wagner and Lee Dittmar 146Executive Summaries 152Panel Discussion April 2006 www.hbr.orgpage 60Whos Sorry Now?page 72New Paths to New Productspage 96HBRSpotlightDO-IT-YOURSELFCULTURE CHANGEMCKINSEY AWARDSpage55YYePG Proudly Presents,Thx for SupportYYePG Proudly Presents,Thx for SupportYYePG Proudly Presents,Thx for SupportYYePG Proudly Presents,Thx for SupportYYePG Proudly Presents,Thx for SupportYYePG Proudly Presents,Thx for SupportYYePG Proudly Presents,Thx for Support4harvard business reviewCOVER ART:TAVIS COBURNF e a t u r e s7260Home Depots Blueprint for Culture ChangeRam CharanThere comes a time in the life of a growing companywhen it needs to exchange the thrill of entrepreneurialspirit for the strength of established power.Most compa-nies make the leap through their leaders charismabutHome Depot did it systematically.Take a look inside thecompanys culture-renovation toolbox.72When Should a Leader Apologizeand When Not?Barbara Kellerman For leaders,eating crow is a high-stakes move.Hereshow to decide whether a public apology is called for and,if so,how best to offer it.82Localization:The Revolution in Consumer MarketsDarrell K.Rigby and Vijay VishwanathFor the past 25 years,the big winners in consumer mar-kets have pursued standardization.But success for manu-facturers now depends on their ability to stimulate salesand innovation by catering to local differences whilemaintaining scale efficiencies.In the end,standardiza-tion erodes strategic differentiation and leads towardcommoditizationand the lower growth and profitabilitythat accompany it.April 200660829810896Introduction98Match Your Innovation Strategy to Your Innovation Ecosystem Ron AdnerGetting to market ahead of your rivals is of value only if your partners are ready when you arrive.Thats whyyou need to take into account the complexities and risksof partnershipsand to tailor your innovation strategyaccordingly.108Manage Customer-CentricInnovationSystematicallyLarry Selden and Ian C.MacMillanCustomer centricity is a prerequisite for sustainable prof-itable growth,but its a rare organization that under-stands what it means to be truly customer centric.A dis-ciplined process of customer R&D at the front lines willtransform stalled innovation programs into an enduringcompetitive edgeand a growing market cap.HBRSpotlightcontinued on page 6Innovation:Improving Your OddsYYePG Proudly Presents,Thx for SupportSo is this something you should be worried about?Chevron Steps Taken:The fact is,the world has been finding lessoil than its been using for twenty years now.Not only has demand been soaring,but the oilweve been finding is coming from places thatare tough to reach.At the same time,more ofthis newly discovered oil is of the type thatrequires a greater investment to refine.Andbecause demand for this precious resourcewill grow,according to some,by over 40%by2025,fueling the worlds growing economicprosperity will take a lot more energy fromevery possible source.The energy industry needs to get more fromexisting fields while continuing to search fornew reserves.Automakers must continue toimprove fuel efficiency and perfect hybridvehicles.Technological improvements areneeded so that wind,solar and hydrogen canbe more viable parts of the energy equation.Governments need to create energy policiesthat promote economically and environmentallysound development.Consumers must demand,andbewillingtopayfor,someofthesesolutions,whilepracticingconservationeffortsoftheirown.Inaction is not an option.But if everyone workstogether,wecanbalancethisequation.Weretakingsome of the steps needed to get started,but weneed your help to get the rest of the way.CHEVRON is a registered trademark of Chevron Corporation.The CHEVRON HALLMARK and HUMAN ENERGY are trademarks of Chevron Corporation.2005 Chevron Corporation.All rights reserved.The world consumes two barrelsof oil for every barrel discovered.Thinking to the future:-Committing morethan$300millioneachyear on clean and renewable energiesFinding even more energy today:-In 2004,achieved exploration record 78%higher than 10-year industry average-Using steamflooding to extract heavy oil that was previously unrecoverable more than 1.3billion barrels from one field aloneYYePG Proudly Presents,Thx for SupportDepartmen