Harvard Business Review - 2014.12.pdf

DECEMBER 201 4Innovate FasterCheaperSmarterHow to lead experiments that actually workPAGE 5930 LeadershipWhy HR Chi efs Make Great CEOsReal l y!90 Decision MakingMaki ng Dumb Groups SmarterCass R.Sunstein and Reid Hastie48 The Big IdeaHow to Harness “New Power”Jeremy Heimans and Henry TimmsSEE BEAUTIFUL IMAGERY|SEE A HOLLYWOOD RENAISSANCE|SEE BETTER DIAGNOSTICS2014 Canon U.S.A.,Inc.Canon,DIGIC and EOS are registered trademarks of Canon Inc.in the United States and may also be registered trademarks or trademarks in other countries.All third party logos,product and brand names are trademarks of their respective owners.Images simulated.THERES MORE TO THE IMAGE THAN ANYONE THOUGHT POSSIBLE.|SEE SELF-PUBLISHING|SEE ADVANCED EYECARE Learn mor e at:steel i fy 2014 Steel case I nc.Al l rights reserved.Trademarks used herein are the property of Steel case I nc.or of their respective owners.HOW AMPLIFIED IS YOUR ENTERPRISE?AMPLIFIEDWe work wit h t he worlds leading organizations t o creat e places that amplify the performance of their people,t eams and ent erprise.December 201459Contents60INNOVATION Build an Innovation Engine in 90 Days You dont need a lot of time,a big investment,or even any new hires to get a reliable innovation system up and running at your company.Scott D.Anthony,David S.Duncan,and Pontus M.A.Siren70EXPERIMENTATIONThe Discipline of Business Experimentation Make sure that the decision to launch a novel offering is based on datanot just on intuitionby running a statistically valid test.Stefan Thomke and Jim Manzi80LEADERSHIPLeading Your Team into the Unknown Good managers lead innovation more by deeds than by words,challenging others by keeping an eye out for the unusual,questioning assumptions,and serving as chief experimenter rather than chief decision maker.Nathan Furr and Jeffrey H.DyerSPOTLIGHT:INNOVATION ON THE FLYABOVE Berndnaut Smilde,Nimbus D Aspremont 2012December 2014Harvard Business Review9Features December 201448THE BIG IDEAUnderstanding “New Power”Power isnt what it used to be.Goliaths are being toppled by Davids,from the networked drivers of Uber to the crowdfunded creatives of Kickstarter.Heres how to harness new power.Jeremy Heimans and Henry Timms90DECISION MAKINGMaking Dumb Groups SmarterBehavioral research suggests some fairly simple ways to achieve“the wisdom of crowds.”Cass R.Sunstein and Reid Hastie100DIVERSITYRethink What You“Know”About High-Achieving WomenTheres a real gap between what Harvard Business School alumnae expect as they look ahead to their careers and where they ultimately land.Robin J.Ely,Pamela Stone,and Colleen Ammerman110MANAGING ORGANIZATIONSWhy Corporate Functions StumbleIn the four stages of its life cycle,a function has to meet varying challenges.Heres how it can.Sven Kunisch,Gnter Mller-Stewens,and Andrew CampbellHBR.ORG10 Harvard Business ReviewDecember 20142014 JetSuite All Rights Reserved.All fl ights operated by JetSuite Air,FAA Air Carrier Certifi cate#9SUA667M.ARE YOU BEING TAKEN FOR A RIDE?GET SMART:COMPARE OUR COMPETITORS ALL-IN TRIP COSTS,NOT JUST“HOURLY RATES”AT JETSUITE.COM OR BY CALLING 866-779-7770Departments December 2014IN EVERY ISSUE 16 From the Editor 24 Interaction 38 Vision Statement 40 Strategic Humor 136 Executive SummariesExperimentation is the lifeblood of successful retailing.page 125The growing importance of the HR role page 30EXPERIENCE120MANAGING YOURSELFGetting Virtual Teams RightHow to build a successful work group when members are geographically separated Keith Ferrazzi125CASE STUDY Second Thoughts About a Strategy Shift Customers love discountsto the point where even everyday low prices may fail to sway them.Elie Ofek and Jill Avery134SYNTHESISLeading a Whole SectionActs of leadership are ones that improve the systemand as complexity increases,theyre not getting any easier.Jeff Kehoe140LIFES WORKBoris Johnson Londons mayorand a prolific journalist and authoron leadership,influence,and ambition IDEA WATCH30TALENTWhy Chief Human Resources Officers Make Great CEOsNew research shows the untapped leadership potential of many HR heads.PLUS Why scheduling software needs to be balanced with human input,the worlds“techiest”manufacturing economies,and more36DEFEND YOUR RESEARCHJob Leads Can Be a Real DownerYou may want to think twice before telling a friend about an opening.43HOW WE DID ITDeltas CEO on Using Innovative Thinking to Revive a Bankrupt AirlineGenerous profit sharing,a courteous culture,and unconventional investments have helped Delta become a market leader again.Richard H.Anderson14013412030 AUDIO Hear the complete interview with Boris Johnson online at hbr.org/johnson.HBR.ORG14 Harvard Business ReviewDecember 2014ROYAL OAKOFFSHOREDIAMOND SET IN PINK GOLD.THERE ARE EXCEPTIONSTO EVERY RULE.Innovation on the FlyThe origin of the phrase“innovate or die”is a matter of some dispute.Peter Drucker famously declared it,though others may have shared in its coinage.But whatever its genesis,the sentiment is now widespread:Stay ahe