International expansion can be a fast-track path to lower profits as many companies ignore the complexity of operating in foreign markets. A step-by-step approach — expanding to new markets with operational complexity similar to the company’s current markets before attacking markets that are significantly more complex — is more likely to be successful.
Third party influence can have a major impact on a company’s reputation. By replacing the traditional company-centric communication strategy, a new stakeholder-centric Channel Strategy Model helps companies understand stakeholder perspectives that are outside the companies’ sphere of experience — and opens up new avenues of indirect communication.
A new company first succeeds by creating a template for doing business — a working system of organizational routines and practices. It then scales its business by replicating that template. In bottom of the pyramid environments, however, the development and replication of templates can be hindered by the extreme conditions in which organizations must operate.
A new study shows that collaborating with suppliers, rather than just monitoring them, is more effective in ensuring that they are engaging in green and sustainable practices. Internal non-coercive drivers (for example, pressure from top management rather than government regulators) encourage buyer/supplier collaboration.
Opponents of quantitative risk management models believe these models are counterproductive: they inhibit companies from taking calculated chances without preventing major mistakes (see the 2008 economic crisis). A new study of seven successful companies shows that when complemented by rigorous qualitative risk management practices and expanded roles for risk managers, quantitative models enhance rather than inhibit a company’s innovation and initiative.
Social movements change society’s expectations of a company, as well as influence the thinking and values of individuals in that company. Under ideological pressure from diverse categories of external and internal stakeholders, the company responds with a corporate social responsibility agenda.
Megaprojects are not so much linear constructions of grand designs, but more a ‘game’ of innovation between players slowly ‘shaping,’ through a series of episodes, the project over time.
Once lagging behind banks in other countries, Canadian banks are now a case study in ERM best practices — thanks to factors such as strong regulations, substantial loss events that galvanized ERM efforts, and ERM best practices capabilities of people, processes, systems and data in the individual banks.
Demand is increasing for the mining industry, but so are costs and challenges — including increasing intolerance for the negative impact of mining activities on the environment and on local communities and indigenous people. The result: currently $24 billion in industry losses due to delays and resistance. A new initiative, involving all stakeholders impacted by mining operations and led by one of the giants of the industry, offers a roadmap for a collaborative, long-term sustainable approach to mining.
An in-depth study of ordinary people over an extended period of time reveals how easy it is for ‘good’ people, starting with an initial small, self-justified deception, to quickly justify bigger and bigger indiscretions, thus falling down the ‘slippery slope’ to major unethical behaviour.
Do you encourage a culture of competition in your organization in order to motivate your employees? This Idea shows that doing so may also promote corruption and unethical behaviour. In the face of local competition, firms operating in the New York air-pollution testing industry were found to be more likely to behave unethically. Read on to find out the implications of this finding for your organization.
Many large organizations face challenges in managing the demands of external non-market environments — political and social aspects of their working environment. This Idea suggests the creation of a chief external officer and gives some guidance on how to ensure their success.
Is there a pattern to be found in the actions of managers trying to cover up their firm’s wrongdoings? According to this Idea, yes there is: they all tend to engage in the same sort of behaviours, such as exercising stock options more frequently, rarely changing the firm’s auditors, and more. An understanding and awareness of these behaviours can assist shareholders, regulators and other stakeholders notice failures and wrongdoings early and help address problems before disaster hits.
How many times have you been eagerly awaiting an event, only for unforeseeable circumstances to result in its cancellation? Take the New York marathon as a recent example — it had to be cancelled as a result of the 2012 Hurricane Sandy. Crises are inevitable. But, there are steps leaders can take to avoid their organization from suffering detrimentally. This Idea explores these steps, and considers how to learn from a crisis in its aftermath.
Are human sustainability policies any less vital for a 21st Century organization than environmental ones? While the surface effects may not be so obvious, the impact on society can be huge. As pace-setting companies and cultures re-optimise toward ‘higher order fundamentals’ like human prosperity; well-being, happiness, satisfaction – employee health becomes a crucial conversation to have.
