Harvard Business Review - 2006.12.pdf

AN HERMS WATCH HAS TIME ON ITS SIDECAPE COD WATCH1-800-441-448862Managing the Right TensionDominic Dodd and Ken Favaro 76 MAKING A REAL DIFFERENCE78 Strategy and Society:The LinkBetween Competitive Advantage andCorporate Social ResponsibilityMichael E.Porter and Mark R.Kramer 94Disruptive Innovation for Social ChangeClayton M.Christensen et al.104Strategies to Fight Low-Cost RivalsNirmalya Kumar 114Innovating Through DesignRoberto Verganti 20Forethought35HBR Case StudyThe CEO Who Couldnt Keep His Foot out of His MouthLisa Burrell 49Big PictureExtreme Jobs:The Dangerous Allure of the 70-Hour Workweek Sylvia Ann Hewlett and Carolyn Buck Luce 124First Person Leadership Under Fire Dov Frohman 133Best Practice Lift Outs:How to Acquire a High-Functioning Team Boris Groysberg and Robin Abrahams 160Executive Summaries 166Panel Discussion PLUS:HBRs Annual Readers Guidepage 142UNLOCKDecember 2006 www.hbr.orgpage 62Overworked and Proud of Itpage 49Nonprofit Dinosaurs?page 94HBRSpotlightGREATPERFORMANCEPORTER&KRAMERonAligning Strategyand Corporate SocialResponsibilityThere are 193 countries in the world.None of them are energy independent.So whos holding whom over a barrel?Chevron Steps Taken:Investing over$15 billion a year to bringenergy to market.Developing energy through partnershipsin 26 countries.Committing hundreds of millionsannually to alternative and renewableenergies to diversify supply.Since 1992,have made our own energy go further by increasing our efficiency by 24%.CHEVRON is a registered trademark of Chevron Corporation.The CHEVRON HALLMARK and HUMAN ENERGY are trademarks of Chevron Corporation.2006 Chevron Corporation.All rights reserved.The fact is,the vast majority of countries rely onthe few energy-producing nations that won thegeological lottery,blessing them with abundanthydrocarbons.And yet,even regions with plentyof raw resources import some form of energy.Saudi Arabia,for example,the worlds largestoil exporter,imports refined petroleum productslike gasoline.So if energy independence is an unrealistic goal,howdoes everyone get the fuel they need,especially in a world of rising demand,supply disruptions,naturaldisasters,and unstable regimes?True global energy security will be a result ofcooperation and engagement,not isolationism.When investment and expertise are allowed toflow freely across borders,the engine of innovationis ignited,prosperity is fueled and the energyavailable to everyone increases.At the same time,balancing the needs of producers and consumers is as crucial as increasing supply and curbingdemand.Only then will the world enjoy energypeace-of-mind.Succeeding in securing energy for everyone doesnthave to come at the expense of anyone.Once we allstart to think differently about energy,then we cantruly make this promise a reality.At Samsung,we realize that to succeed in business we must also succeed in life.Around the world our mobile phones are famed for their award-winning design.What you might not knowis that we also support the world of art at large.Our recipients include no less preeminent institutions asthe Bolshoi Ballet itself.Contributing to this form of beauty is something well continue to strive for.Its one of the many ways in which were committed to making this a better A better world is our business.Artistic expression should fit in a pocketas well as fill up a stage.2006 Samsung Electronics Co.,Ltd.All rights reserved.Samsung is a registered trademark of Samsung Electronics Co.,Ltd.6harvard business review|hbr.orgCOVER ART:SHOUTF e a t u r e s104Strategies to Fight Low-Cost RivalsNirmalya KumarIgnoring low-cost rivals is a mistake.So is setting off a price war.Traditional companies have only a few options for responding to the latest wave of cut-pricecompetition,but they can learn how to choose the right approach.114Innovating Through DesignRoberto VergantiProducts that emerge from“design-driven innovation”often point toward some new way of livingand result in long commercial lives for new designs and bold consumer expectations for the brand.continued on page 1010462Managing the Right TensionDominic Dodd and Ken FavaroProfitability or growth?The short term or the long?The organization or the units?Only one of these ten-sions matters to your company at any given time.Hereshow to pick the right oneand avoid the traps companiesfall into when they focus on only one side of a tension ata time.76Introduction78Strategy and Society:The Link Between CompetitiveAdvantage and Corporate Social ResponsibilityMichael E.Porter and Mark R.KramerAs Whole Foods,Volvo,and Toyota have found,when CSR initiatives are conceived within the context of a companys strategy,they can become a powerful sourceof opportunity,innovation,and competitive advantage,benefiting both the company and society.94Disruptive Innovation for Social ChangeClayton M.Christensen,Heiner Baumann,Rudy Ruggles,and Thomas M.SadtlerMany social problems persist because organizationsmeant to address them focus on status quo s