Harvard Business Review - 2007.06.pdf

Tag linewww.hbr.orgTHE WAR ON CUSTOMERSpage 78 CHINAS BUSINESS MOONSCAPEpage 88 60 How Successful Leaders ThinkRoger Martin 68 Make Your Company a Talent FactoryDouglas A.Ready and Jay A.Conger 78 Companies and the Customers Who Hate ThemGail McGovern and Youngme Moon 88 Scorched Earth:Will Environmental Risks in China Overwhelm Its Opportunities?Elizabeth Economy and Kenneth Lieberthal 98 The New Deal at the TopYves L.Doz and Mikko Kosonen 20 FORETHOUGHT 37 HBR CASE STUDYWe Googled YouDiane Coutu 49 BIG PICTURESaving the InternetJonathan Zittrain 106 The Sophisticated Innovator 109 A Buyers Guide to the Innovation BazaarSatish Nambisan and Mohanbir Sawhney 121 The Innovation Value ChainMorten T.Hansen and Julian Birkinshaw 139 EXECUTIVE SUMMARIES 144 PANEL DISCUSSIONJune 2007COMING AT YOUpage 60Our expertise is to set the course.VALENCIA,americas CUP 2007So you can navigate through any challenge.In Americas Cup sailing as well as in Financial Services,to be on the cutting edge it takes the right combination of strategy,teamwork,timing and knowledge,moment by moment.This is what you can expect from Allianz a global leader in Insurance and Asset Management.Thats why we are the choice of a large number of Fortune Global 500 companies and individuals around the solutions from A-ZINSURANCE|ASSET MANAGEMENT|BANKINGAllianz is a registered trademark of Allianz SE,Germany.Allianz SE is the parent company of entities around the world such as AGF,Allianz Global Investors and Dresdner Bank.The range of services in different markets may vary.Allianz is the Main Sponsor of BMW ORACLE Racing,the American challenger in the 32nd Americas Cup.4 Harvard Business Review|June 2007|hbr.orgJUNE 2007Features 60 How Successful Leaders ThinkRoger MartinGreat leaders refuse to choose between A and B.Through holistic thinking,they forge an innovative third way.68 Make Your Company a Talent FactoryDouglas A.Ready and Jay A.CongerAre you making the most of your high-potential talent?To compete on the global stage,you need to put the right peo ple with the right skills in the right place at the right time and fast.78 Companies and the Customers Who Hate ThemGail McGovern and Youngme Moon If your company is on a slippery slope extracting more and more value from customers through inscrutable contracts,hidden fees,and complicated offerings expect punishment.Heres how to recognize and purge those adversarial prac-tices and gain an advantage by offering a customer-friendly alternative.88 Scorched Earth:Will Environmental Risks in China Overwhelm Its Opportunities?Elizabeth Economy and Kenneth LieberthalChinas environmental problems are so bad theyre beginning to constrain the countrys GDP growth.Why,then,are multi-nationals paying so little attention to them?Failure to factor environmental issues into corporate strategy may turn Chinas seemingly enormous promise into a nightmare for many fi rms.98 The New Deal at the Top Yves L.Doz and Mikko KosonenConsumers today want integrated solutions and services so companies need integrated strategies.These wont fl y,how-ever,as long as business units are run like fi efdoms.Its time for interdependence and collaboration at the top.continued on page 6Cover Art:Alex Nabaum60788868986 Harvard Business Review|June 2007|hbr.orgJUNE 2007Departments 10 COMPANY INDEX 14 FROM THE EDITORGood Business JudgmentGood business judgment seems to contain equal measures of realism and idealism:the ability to acknowledge the mundane and make magic out of it.20 FORETHOUGHTEmbrace the benefi ts of online data ag-gregationStudying similar organizations can help CEOs boost ROIAfricas chal-lenges belie its huge investment poten-tialMarketing and Finance dont have to fi ghtMake portable media players part of your companys training programYour executive hires shouldnt have to fend for themselvesFirms have less control over failure than they thinkEmployees views of the companys character make a differ-enceIts worth taking the time to educate customers about how your fi rm works.37 HBR CASE STUDYWe Googled YouDiane CoutuKeeping skeletons in the closet has become almost impossible in the Internet age.But should they cost an otherwise promising candidate a job?With commentary by John G.Palfrey,Jr.,Jeffrey A.Joerres,danah m.boyd,and Michael Fertik.49 BIG PICTURESaving the InternetJonathan ZittrainThe very openness and user adaptability that make the Internet a creative wellspring also allow for the propagation of assorted evils spam,porn,predation,fraud,privacy violations that threaten the integrity of the Internet itself.86 STRATEGIC HUMORThe Sophisticated Innovator 106 Introduction 109 A Buyers Guide to the Innovation Bazaar Satish Nambisan and Mohanbir SawhneyToo many choices in the marketplace of ideas can be overwhelming.With this conceptual guide,companies can deter-mine what kinds of outside innovations they should acquire and who can help them do so.121 The Innovation Value Chain Morten T.Hansen and Julian BirkinshawSubscr