Harvard Business Review - 2006.03.pdf

58Connect and Develop:Inside Procter&Gambles New Model for InnovationLarry Huston and Nabil Sakkab 68Inside the Mind of the Chinese ConsumerWilliam McEwen et al.78Managing MiddlescenceRobert Morison,Tamara Erickson,and Ken Dychtwald 90Customer Value Propositions in BusinessMarketsJames C.Anderson,James A.Narus,and Wouter van Rossum 100How to Implement a New Strategy WithoutDisrupting Your OrganizationRobert S.Kaplan and David P.Norton 20Forethought33HBR Case StudyEliminate the Middleman?Ming-Hui Huang 47Different Voice Leadership in Literature A Conversation with Business Ethicist Joseph L.Badaracco,Jr.122Best PracticeWhy Its So Hard to Be Fair Joel Brockner 131Tool Kit Knowing What to Sell,When,and to Whom V.Kumar,Rajkumar Venkatesan,and Werner Reinartz 146Executive Summaries 152Panel Discussion March 2006 www.hbr.orgWhat Chinas Consumers Wantpage 68The Midcareer Crisispage 78MaketheWorldYourLaboratorypage 584harvard business reviewCOVER ART:NICK LOWNDESF e a t u r e s90Customer Value Propositions in BusinessMarketsJames C.Anderson,James A.Narus,and Wouter van RossumSome managers view the customer value proposition as a form of spin that marketers develop for promotionalcopythe prettier the package,the better.But best-practicesuppliers concentrate on the one or two points of differ-ence that deliver the greatest value to target customers.When you identify each customers critical need,and thenoffer a specific solution for it,you truly capture value.100How to Implement a New Strategy WithoutDisrupting Your OrganizationRobert S.Kaplan and David P.NortonDont restructure every time you change your strategy.Its far better to settle on a structure that works withoutmajor conflicts,then use the tools of the balanced score-card to align that structure to your strategy.continued on page 810058Connect and Develop:Inside Procter&Gambles New Model for InnovationLarry Huston and Nabil SakkabOverhaul your approach to innovation,or get out ofthe race.Its that simpleand that urgent.68Inside the Mind of the Chinese ConsumerWilliam McEwen,Xiaoguang Fang,Chuanping Zhang,and Richard BurkholderThe Gallup Organization undertook an ambitious ten-year,nationwide survey of Chinese consumers and employees.The results may surprise companies out-sideand even insideChina.78Managing MiddlescenceRobert Morison,Tamara Erickson,and Ken DychtwaldMidcareer workers make up the bulk of your workforce.Theyre the solid corporate citizens you bank on.But youshouldnt.New research shows that theyre the most dis-affected people in your company.And whether they quitorworsestay and stay disaffected,theyre going to be a big problem if you continue to neglect them.March 2006586878908harvard business review10COMPANY INDEX12FROM THE EDITOROld,but Not Old-SchoolP&G is unapologetically a big,old com-pany.Thats what makes its“connectand develop”strategy so important tounderstand.20FORETHOUGHTIn the world of adaptive markets,itssurvival of the fittestProduct perfor-mance isnt always based on the featureyou might thinkOffshoring can bemore about gain than relief from painInnovating by mixing disciplinesWhenis it wise to heed advice?A radical ex-ample of“know the customer”Whatsunique about M&A in ChinaGreen-house gas emissions can affect firmsbottom linesThe importance of bat-tling the IP theft within.33HBR CASE STUDYEliminate the Middleman?Ming-Hui HuangUSTech enjoys many of the benefitsand none of the hasslesof sourcing in China,thanks to the companys rela-tionship with an original design manu-facturer.But some executives want tosource directly in Asia and to introduceUSTechs brand in the hot China market.The problem?The ODM might launchits own branded goods there.47DIFFERENT VOICELeadership in Literature A Conversation with Business EthicistJoseph L.Badaracco,Jr.Should MBAs also study literature?Joseph Badaracco argues that businessstudents could learn plenty about lead-ership from Shakespeares Julius Caesar.Lessons drawn from fiction can be justas valuable and pragmatic as thosedrawn from many business textbooks.Departments12March 200688STRATEGIC HUMOR122BEST PRACTICEWhy Its So Hard to Be FairJoel BrocknerEmployees who believe their companytreats them fairlylistens to them,consults with them on important deci-sions,and manages them with respectrespond in ways that bolster the bottomline.Whats more,practicing processfairness costs little financially.So whydont more companies do it consistently?131TOOL KITKnowing What to Sell,When,and to Whom V.Kumar,Rajkumar Venkatesan,andWerner ReinartzIts always been hard to work out whatcustomers do and dont want,let alonewhen they do or dont want it.Thatswhy marketers resort to offering themeverything all the time.A new predictivetechnique makes it feasible for compa-nies to avoid this trap.142LETTERS TO THE EDITORA change management plan shouldnever treat the key factors as indepen-dent variables.146EXECUTIVE SUMMARIES152PANEL DISCUSSIONBest with a RestDon MoyerVacations arent just rewards;theyre essential for doing one