Harvard Business Review - 2016.12.pdf

DECEMBER 201 652 LeadershipHow to Hi re a CEORam Charan88 TechnologyFi xi ng Di gi tal Di scri mi nati onRay Fisman and Michael Luca98 Managing YourselfWhen You Hate Your BossManfred F.R.Kets de Vries“FRONTIER ECONOMIES”MAY BE RISKY,BUT THEY OFFER BIG REWARDSPAGE 40Where to Find Hypergrowth1.888.565.0052michiganbusiness.org/HBRCYBERcontrolWHAT HAPPENS WHENmeetsMichigan has the right combination for cyber security.The information superhighway is growing even more crowded.And more dangerous.It s why more univer-sities,governments and companies are turning to Michigan.The Michigan Cyber Range,powered by Merit Network,provides an unclassified,private environment to teach,test and train individuals and companies for real-world situations.By providing classes,exercises and virtual infrastructure,it gives companies an affordable and flexible way to prepare for cyber security challenges of all types.And a confidence that s Pure Michigan.51Contents52LEADERSHIPThe Secrets of Great CEO SelectionWhy do some people have a knack for choosing leaders who will take companies to new heights?Ram Charan60MANAGING ORGANIZATIONSAfter the HandshakeWhen CEO succession fails,the responsibility is almost always shared.Dan Ciampa70GOVERNANCESuccession Planning:What the Research SaysToo many boards are dropping the ball on finding and preparing replacements for CEOs.Eben HarrellSPOTLIGHT ON SETTING CEOS UP TO WINABOVE George Byrne Gower St.2014,archival pigment print ON THE COVER:DESISLAVA VASILEVA/123RFDecember 2016December 2016Harvard Business Review5Features December 201640THE BIG IDEAMapping Frontier EconomiesGlobal players in search of double-digit growth are finding it in low-income,high-risk countries such as Myanmar,Mozambique,Vietnam,and Rwanda,where first movers can be handsomely rewarded.Aldo Musacchio and Eric Werker76HEALTH CAREHealth Care Needs Real CompetitionIn other sectors of the economy,competition improves quality and efficiency,spurs innovation,and drives down costs.Health care should be no exception.Leemore S.Dafny and Thomas H.Lee88MANAGING TECHNOLOGYFixing Discrimination in Online MarketplacesPlatform designers need to make careful choices about automation,algorithms,and the use of identifying data.Ray Fisman and Michael LucaCHRIS BUZELLIHBR.ORG6 Harvard Business ReviewDecember 2016We work wi t h t he worl ds l eadi ng organi zat i ons t o creat e pl aces t hat ampl i fy t he perf ormance of t hei r peopl e,t eams and ent erpri se.2016 St eel case Inc.Al l ri ght s reserved.Trademarks used herei n are t he property of St eel case Inc.or of t hei r respect i ve owners.Downl oad the f ree report at steel or request a printed copy by sending an email to engagementsteel Engagement and t he Global WorkplaceInsights f rom this unprecedented research incl ude:?Key dif f erentiators between engaged and disengaged empl oyees?The rel ationship between engagement and the workpl ace?How to create a work environment that f osters human and organizational resil iencyNew dat a uncovers opport unit ies t o drive engagement,growt h and innovat ion12,480 offi ce workers.17 countries.1 gl obal research report.Departments December 2016IN EVERY ISSUE 12 From the Editor 14 Contributors 18 Interaction 21 Strategic Humor 116 Executive SummariesWhats a modern philanthropist to do?page 114MBAs are more likely to put their own interests first.page 32EXPERIENCE98MANAGING YOURSELFDo You Hate Your Boss?Concrete ways to improve a dysfunctional relationship Manfred F.R.Kets de Vries103CASE STUDY Should You Rehire a Defector?An entrepreneur reconsiders a colleague who left for a competitor.Jyotsna Bhatnagar and Nakul Gupta114SYNTHESISThe Philanthropists BurdenHard cash cant always solve hard problems.Tim Sullivan120LIFES WORKBrian Wilson A founding member of the Beach Boys on innovation,collaboration,and overcoming personal obstaclesIDEA WATCH24STRATEGYThe Scary Truth About Corporate SurvivalCompanies really are failing at a faster rate.How can managers stem the tide?PLUS Sustainability tactics that get results,the costliest“people issues,”and more32DEFEND YOUR RESEARCHMBAs Are More Self-Serving Than Other CEOsA new study finds a correlation between the degree and strategies that hurt firms but benefit executives.35HOW I DID ITPayPals CEO on Creating Products for Underserved MarketsThe company set out to be a“customer champion”for both merchants and consumers.Dan Schulman1 20BRIAN BOWEN SMITH,SAM CHIVERS,PATRICK GEORGE“I was a real perfectionist.”HBR.ORG10 Harvard Business ReviewDecember 2016INTLSTOCKS IEFAU.S.STOCKS IVVU.S.BONDS AGG1.Source:Morningstar,as of 12/31/15.Comparison is between the average Prospectus Net Expense Ratio for the iShares Core Series ETFs(0.11%)and the average Prospectus Net Expense Ratio of active open-end mutual funds(1.24%)available in the U.S.(excluding municipal bond and money market funds)on 12/31/2015.Visit www.iS or www.BlackR to view a prospectus,which includes investment objectives,risks,fees,expenses and oth