Harvard Business Review - 2005.02.pdf

72Ending the CEO Succession CrisisRam Charan 82Productive Friction:How Difficult B usinessPartnership s Can A ccelerate InnovationJohn Hagel III and John Seely Brown 92Should N onp rofits Seek Profits?William Foster and Jeffrey Bradach 104Change Through PersuasionDavid A.Garvin and Michael A.Roberto 114The HBR InterviewTransforming an Industrial GiantHeinrich von Pierer17The HBR ListB reak through Ideas for 200559HBR Case StudySp ringboard to a Swan Dive?Ajit Kambil and Bruce Beebe 125Managing YourselfTwo Executives,One Career Cynthia R.Cunningham and Shelley S.Murray 132Best Practice Strategic Sourcing:From Perip hery to the Core Mark Gottfredson,Rudy Puryear,and Stephen Phillips 146Executive Summaries 152Panel Discussion SPECIAL:Breakthrough Ideas for 2005page 17The Hole in the Corner OfficeFebruary 2005 www.hbr.orgpage 72TLFeBOOKAllstateHigh-performance customer service,delivered.To maintain its position as one of the countryslargest property and casualty insurerswhilealso positioning itself to offer a broader rangeof financial productsAllstate wanted to offernew ways of interacting with customers,andto do it on an aggressive schedule.Building on a long relationship with Allstate,Accenturedeployed eight development teams to helpdesignandimplementTheGoodHandsNetwork,which adds integrated Internet and call centerchannels to the existing system of local agents.Deployed in just 18 months,the two newchannels enable customers to do business withAllstate 24/7.Already,over 40 percent of thecompanys more than 6 million yearly inquiriesare made outside of traditional business hours,further extending the companys standing as ahigh-performance business.Thomas CookHigh-performance operations,delivered.A 163-year-old brand with many owners overthe years,Thomas Cook UK&Ireland was arespected but complex,decentralized travelservices business in need of a return toprofitability.In an innovative co-sourcingarrangement with Accenture,the companycreated a shared services center to consolidate its widely dispersed IT,finance and HRadministration operations.Responsibility forstrategy and policy was retained by ThomasCook,with Accenture facilitating operationsmanagement.In 16 months,the companyremoved 140 million in operational costs,helping to achieve an 83 million turnaround,establishing Thomas Cook as a high-performanceplayer in the competitive UK travel business.2004 Accenture.All rights reserved.TLFeBOOKThere comes a time when executionis more important than theory.Go on.Be a Tiger.When all the theorizing ends,a high performer knowsyou either deliver or you go home.By enhancing yourexecutional skills,Accenture can help your business becomea high-performance business.See how at TLFeBOOK 2005 XEROX CORPORATION.All rights reserved.XEROXand Xerox Color.It makes business sense are trademarks of XEROX CORPORATION in the United States and/or other countries.Success is in the details.Keeping those details fresh ineveryones mind is what Xerox color is all about.Use colorsmartly and it communicates facts,underscores salientpoints,and adds“ahas”to your work.Thats why ourwide selection of desktop color printers,multi-functionsystems,and digital presses has something more.XeroxXerox color printersmulti-function systems&digital pressesIts big,its bold,its Xerox color.Put it to work in39%more memorable.Pretty impressive.TLFeBOOKcolor expertise.Its the know-how that combines state-of-the-art technology with real economy,to help you boostproductivity and business performance.Xerox color expertiseis already making business sense in thousands of companies,leaving lasting impressions that make an impact on thebottom line.Its the juicy stuff any business would like to see.your business and it can make your sales pitchesXerox Color.It makes business sense.TLFeBOOKTLFeBOOKTLFeBOOK6harvard business reviewCOVER ART:MATT BANDSUCHF e a t u r e s104Change Through Persuasion David A.Garvin and Michael A.RobertoChange requires more than just a great turnaround plan;it also requires a persuasion campaign to make the change stick.The impressive turnaround at a world-renowned teaching hospital shows how to plan a changecampaign and carry it out.114THE HBR INTERVIEWTransforming an Industrial GiantHeinrich von P iererInterviewed by Thomas A.S tewart and Louise O B rien During his 12 y ears as CEO,Heinrich von P ierer tookS iemens from a successful company to one of the world smost competitive.Here he shares his insights about port-folio restructuring,his lessons from competing with GE,and the pros and cons of being based in Europe versusAmerica.continued on page 89272Ending the CEO Succession CrisisRam CharanYou know something s wrong when two out of everyfive new CEOs last less than two y ears on the job.The ultimate fix may take time,but there s a lot com-panies can do right now to stop the revolving door.82Productive Friction:How Difficult B usinessPartnership s Can A ccelerate InnovationJohn Hagel III and John S eely B rownCompanies get better at what