Harvard Business Review - 2006.09.pdf

INNOVATE MOREKnow your signs of innovation.MOVE FASTERGET OPTIMIZEDGO GLOBALTake the UGS InnovationDrivers Test no single road to innovation,but there are signsyoure headed in the right direction.Leading innovators get tomarket faster,optimize resources and achieve globalization.Theyrealso four times more likely to use product lifecycle management(PLM)software to plan,define,build and support their products.UGS family ofPLM solutions helps businesses establish Global Innovation Networks thattransform their process of innovation.Find out how to drive your businessto greater innovation and accelerate your growth.Copyright 2006 UGS Corp.All rights reserved.UGS,Transforming the process of innovation and the Signs of Innovation trade dress aretrademarks or registered trademarks of UGS Corp.or its subsidiaries in the United States and in other countries.TLFeBOOK66Ten Ways to Create Shareholder ValueAlfred Rappaport 78Rethinking Political CorrectnessRobin J.Ely,Debra E.Meyerson,and Martin N.Davidson 88With Friends Like These:The Art ofManaging ComplementorsDavid B.Yoffie and Mary Kwak 104How to Keep A Players ProductiveSteven Berglas 114Curveball:Strategies to Fool the CompetitionGeorge Stalk,Jr.20Forethought37HBR Case StudyIndispensableJohn Beeson 55Managing YourselfThe Decision to Trust Robert F.Hurley 124Tool Kit The New Science of Sales Force Productivity Dianne Ledingham,Mark Kovac,and Heidi Locke Simon 135Best Practice When Your Contract Manufacturer BecomesYour Competitor Benito Arruada and Xos H.Vzquez 155Executive Summaries 160Panel Discussion The Discipline ofValueCreationSeptember 2006 www.hbr.orgpage 66Work with Your Friendspage 88FoolYour Foespage 114TLFeBOOKNEW YORK LONDON PARIS MILAN TOKYO BRUSSELS BEVERLY HILLS BOSTON CHICAGO CHEVY CHASEBlack LabelTLFeBOOKTLFeBOOKRANGE ROVER SPORT DESIGNED FOR THE EXTRAORDINARYPROOF THAT BOUNDARIES ARE ONLY IMAGINED.On December 17th,Range Rover Sport experienced rush hour 200 feet beneath Tokyo.See how at .TLFeBOOK2006 Land Rover North America,Inc.TLFeBOOKTLFeBOOKTLFeBOOK6harvard business review|hbr.orgCOVER ART:SIMON PEMBERTONF e a t u r e s104How to Keep A Players ProductiveSteven BerglasSooner or later,most managers will have to deal with an A player who is difficult to managebut even flawedA players have an enormous amount to offer.Learn tomanage their fragile egos and low self-esteem,and watchyour stars soar to super heights.114Curveball:Strategies to Fool the CompetitionGeorge Stalk,Jr.Competition is about winning at the expense of your rivals.Playing hardball isnt the only way to do this.You can also fool competitors with a strategic curveballthat keeps them looking the other way while you win customers.continued on page 866Ten Ways to Create Shareholder ValueAlfred RappaportSidebar by Michael J.MauboussinExecutives have mortgaged their companiesfutures by myopically focusing on short-term performance andfailing to invest in long-term growth.Ten basic rules canhelp them broaden their perspectives and shape strat-egy in light of the competitive landscape,not the share-holder list.78Rethinking Political CorrectnessRobin J.Ely,Debra E.Meyerson,and Martin N.DavidsonPolitical correctness is not always a good thingit canput up barriers rather than break them down.Managersshould set aside PC rules and find genuine ways to pro-mote equity.88With Friends Like These:The Art ofManaging ComplementorsDavid B.Yoffie and Mary KwakThey sell something your customers must have to makeyour offerings work,and vice versa.So youd think yourinterests would be the same.Think again.Managing con-flicts with complementors,whom you neither buy fromnor sell to,isnt easy.You need a strategy based on eitherhard or soft power.September 2006668810478114TLFeBOOKCopyright 2005,Oracle.All rights reserved.Oracle,JD Edwards and PeopleSoft are registered trademarks of Oracle Corporation and/or its affiliates.Other names may be trademarks of their respective call 1.800.968.4664The Best Companies Run OracleGet Better ResultsWith Oracle Applications“50%lower cost per purchase order”“$6.2 million in savings”TLFeBOOK8harvard business review|hbr.org12COMPANY INDEX14FROM THE EDITORAre You Wealthy,or Are You Rich?The debate about executive pay cantget anywhere until it shifts its groundfrom the mechanisms of who gets whatto a more profound and meaningfultopic:understanding the difference be-tween getting rich and creating wealth.20FORETHOUGHTWhen crowds arent wiseReducing the costs of HIV infection to compa-niesWhat makes a smart product designMaking procurement part ofstrategyThe true impact of renew-able energy creditsMens rosy out-look for executive womenIn enter-tainment marketing,social influencetrumps intrinsic qualityHR and corporate performance.37HBR CASE STUDYIndispensableJohn BeesonTheres no doubt that Edward Bennett is the man to move Astar Enterprises to the world stage.And,at 64,he has no plans to retire.But with no heir ap-parent,Bennett may be putting Astarsgrowth plans at risk.Can the boa