Harvard Business Review - 2007.05.pdf

2007 United Parcel Service of America,Inc.UPS,the UPS brandmark,and the color brown are registered trademarks of United Parcel Service of America,Inc.All rights reserved.Avery,Marks-A-Lot,the Crown Cap Design,and all other Avery brands are trademarks of,and used here under license from,Avery Dennison Corporation.page 62INSIDE EMPLOYEES MINDSpage 72WHOS A GENIUS?page 121May 2007www.hbr.orgMakingCUTthe62Surviving Your New CEOKevin P.Coyne and Edward J.Coyne,Sr.72Inner Work Life:Understanding the Subtextof Business PerformanceTeresa M.Amabile and Steven J.Kramer 84Strategies to Crack Well-Guarded MarketsDavid J.Bryce and Jeffrey H.Dyer 96Customer Focus 98Silo Busting:How to Execute on thePromise of Customer FocusRanjay Gulati 110Even Commodities Have CustomersFranois M.Jacques 22FORETHOUGHT37HBR CASE STUDYThe Dark Side of Customer AnalyticsThomas H.Davenport and Jeanne G.Harris 51FIRST PERSONBack in Fashion:How Were Reviving a British Icon Stuart Rose 121DIFFERENT VOICE Picking WinnersA Conversation with MacArthur Fellows Program DirectorDaniel J.Socolow 128BEST PRACTICEThe Value Captors Process:Getting theMost out of Your New Business Ventures Rita Gunther McGrath and Thomas Keil 142EXECUTIVE SUMMARIES 148PANEL DISCUSSION To be better than the competition,you cant have them asyour parent company.2007 BMW of North America,LLC.The BMW name,model names and logo are registered trademarks.It is our fi rm belief at BMW that remaining independent is essential to who we are.We hold fi ercely to this autonomy becausewe know the day we give it up is the day wewill be asked to compromise our ideas.Perhaps not at fi rst,but somewhere downthe line,we would have to give up something that makes our cars great.And to us thats just unthinkable.At BMW ideas are everything.And we make sure great ideas live on tobecome Ultimate Driving MCover Art:Brian Stauffer62Surviving Your New CEOKevin P.Coyne and Edward J.Coyne,Sr.Your company just hired a new CEO,and you figure that a reor-ganizationmaybe even a few terminationscould be on theway.Youre not worried,though:Your solid record and excellentreputation as a senior executive mean youre safe.Right?Wrong.72Inner Work Life:Understanding the Subtext of Business PerformanceTeresa M.Amabile and Steven J.KramerNew research shows how business performance is driven byworkers state of mindand how managers,if theyre not care-ful,can drive both down.84Strategies to Crack Well-Guarded MarketsDavid J.Bryce and Jeffrey H.DyerDespite barriers to entry,companies trying to break into highlyprofitable industries can defy half a century of economic logicand actually make money.Customer Focus 96Introduction98Silo Busting:How to Execute on the Promise of Customer FocusRanjay GulatiMore and more companies claim that they offer solutionspackages of products and services that are hard to copy andcan command premium prices.To truly solve customers prob-lems,however,companies often have to make significantchanges to their structures,processes,and mind-sets.110Even Commodities Have CustomersFranois M.JacquesWho would have thought thered be so much differentiation opportunity in cement?Someone clever enough to apply mar-ketings most basic tools,it turns out.If it works for cement,it could work for your commodity business,too.continued on page 8MAY 2007Features6211098844Harvard Business Review|May 2007|hbr.org72Manage IT risk and cost across your entire operation with the unmatched expertise of Symantec.The fi rst step in dealing with IT risk is to quantify it precisely.Our expert assessments quickly give you the necessary input to select the appropriate solution to fi t your needs and budget.And once IT risk is mitigated,the cost advantages throughout your enterprise can be dramatic.Realize the potential in your operation with the help of the Global Services team from Symantec.To contact a representative call 1-877-870-5700 or visit dence 2007 Symantec Corporation.All rights reserved.Symantec and the Symantec Logo are registered trademarks of Symantec Corporation.Confi dence in a connected world.The vulnerability of your business is connected to the enormity of your IT infrastructure is connected to an accurate assessment of the risks involved is connected to solutions that manage security,availability,and compliance is connected to Symantec Global Services for results that shine from assembly line to the bottom line.June 12-14,2007|The Venetian|Las Vegas,Nevada,U.S.A INDEX14FROM THE EDITORSecrets of the WorkplaceWhat really happens when theres upheavalin the workplace?Till now,most of what haspassed for knowledge about such mattershas been anecdotal and most of the adviceavuncular.Two fruitful streams of researchone looking at the turmoil that follows theappointment of a new CEO and the other examining the unspoken feelings and per-ceptions of employees as they go about theireveryday businesshave replaced guess-work with data and folklore with facts.22FORETHOUGHTViral-marketing tools can boost traditionalma