Organizational Design →
- 02 Nov 2006
- Working Paper Summaries
Managing Functional Biases in Organizational Forecasts: A Case Study of Consensus Forecasting in Supply Chain Planning
By their very nature, consensus forecasts contain subjective elements that can compromise forecast accuracy. In this case study of the implementation of a sales and operations planning process in a consumer electronics company, Oliva and Watson studied the organizational and political dimensions of forecast generation and improvement. Ultimately, consensus forecasting constructively managed the influence of biases (such as overconfidence) on forecasts. Key concepts include: Better and more integrated information is not sufficient for a good forecast. Design the process so that social and political dimensions of the organization are effectively managed. Create an independent group to manage the forecast process, not the forecast itself. This helps to stabilize the political dimension. Unintended incentives and blind spots can arise as a result of newly implemented processes, so managers need to control for biases and their effects on system performance. Insights from this case study can be generalized and extended to other settings that require cross-functional coordination. Closed for comment; 0 Comments.
- 31 Oct 2006
- HBS Case
Governing Sumida Corporation
In a new Harvard Business School case, Professor Lynn Paine and her colleagues explore the nature of corporate governance systems by studying Japanese electronics components maker Sumida Corp. CEO Shigeyuki Yawata looks to create a governance structure that would be transparent to investors and stakeholders worldwide. Closed for comment; 0 Comments.
- 18 Oct 2006
- Working Paper Summaries
Racial Diversity Initiatives in Professional Service Firms: What Factors Differentiate Successful from Unsuccessful Initiatives?
What organizational factors are needed for racial diversity initiatives to succeed? While diversity continues to grow in importance in organizations, very little research has focused on the processes that underlie diversity management. Modupe Akinola and David A. Thomas propose a study intended to explore management initiatives that focus on racial diversity in professional service firms. Given that such firms rely on the high level of skills, expertise, and diverse perspectives offered by their professional staff, these firms may be ideal laboratories for examining diversity initiatives. Key concepts include: The success of diversity initiatives in professional service firms is driven by five criteria: a well articulated and widely bought-into diversity strategy, leadership support, an engaged employee base, innovative approaches to recruiting and retaining minorities, and management practices that are integrated and aligned with the initiative. Firms that achieve sustained success in their diversity initiatives should show evidence of more of these success criteria relative to their peers in the same industries. Organizations with a strong understanding of the factors that influence the success of diversity initiatives may begin to better recruit and retain minorities. Such insights may even extend to organizational practices unrelated to diversity. Closed for comment; 0 Comments.
- 06 Sep 2006
- Working Paper Summaries
Cross Functional Alignment in Supply Chain Planning: A Case Study of Sales & Operations Planning
Why do companies have such a hard time getting various functions to coordinate? Leitax, the pseudonym for a consumer electronics company studied by the authors, was suffering major supply-chain planning problems in 2002. The chief reason was typical to organizations: poor integration among the various functions. In response, the company introduced a system (rather than just a set of mechanisms) to better coordinate all processes and functions. The new system led to better collaboration from all participants, improved information-sharing, accurate and validated plans, and alignment in the execution of those plans. Key concepts include: Achieving true information sharing between functions is not just about creating the right information-sharing tool. True integration requires paying attention to the behavioral dynamics within operations management. Within supply chain management, coordinating systems can integrate the information requirements for planning yet also uphold the organizational differentiation that different stakeholders require. Such planning systems have great potential for capturing the advantages of simultaneous demand and supply management. A consensus forecasting system has advantages for buy-in and integration, and can respond promptly in a dynamic and challenging supply chain environment. Closed for comment; 0 Comments.
- 01 Sep 2006
- What Do You Think?
Are We Ready for Self-Management?
On its face, self-management looks like a "win-win" answer to the scarcity of good managers and the predominance of low-involvement entry-level jobs. But are sufficient numbers of entry-level employees ready for self-management? And is management ready? Closed for comment; 0 Comments.
- 05 Jul 2006
- Research & Ideas
The Accidental Innovator
Many important innovations are the byproduct of accidents—the key is to be prepared for the unexpected. Professor Robert D. Austin discusses his research and practical implications on the concept of accidental innovation. Key concepts include: Innovation can't always be planned—accidents happen. Be prepared to recognize serendipitous opportunity. Understand the nature of breakthrough inventions in your industry and plan accordingly. Closed for comment; 0 Comments.
- 05 Jul 2006
- Working Paper Summaries
Implementing New Practices: An Empirical Study of Organizational Learning in Hospital Intensive Care Units
How do hospital units, as complex service organizations, successfully implement best practices? Practices involve people and knowledge; people must apply knowledge to particular situations, so changing practices requires changing behavior. This study is a starting point for healthcare organizations to improve work practices. The researchers drew from literature on best practice transfer, team learning, and process change and developed four hypotheses to test at highly specialized hospital units that care for premature infants and critically ill newborns. Key concepts include: Organizations must set up project teams to investigate and implement new practices. Project teams are important for creating organizational change. There is a strong positive relationship between "learn-how" and implementation success. "Learn-how" makes new practices work in a specific context, and psychological safety encourages people to participate in this disruptive process. Closed for comment; 0 Comments.
- 27 Feb 2006
- Research & Ideas
Take Responsibility for Rising Stars
Leadership succession and recruitment need the sharp attention of your company's top executives and board. But who should be held accountable—and how? An excerpt from a Harvard Business Review article by Jeffrey Cohn, Rakesh Khurana, and Laura Reeves. Closed for comment; 0 Comments.
- 12 Dec 2005
- Research & Ideas
Using the Law to Strategic Advantage
Used proactively, corporate legal departments can give you a strategic advantage, argues HBS professor Constance Bagley. It's time for a new relationship between managers and legal. Closed for comment; 0 Comments.
- 30 Oct 2005
- Research & Ideas
Tuning Jobs to Fit Your Company
In this article excerpt from Harvard Business Review, professor Robert Simons looks at how organizations can adjust the "span" of jobs to increase performance. Closed for comment; 0 Comments.
- 08 Aug 2005
- Research & Ideas
Decision Rights: Who Gives the Green Light?
Four steps to ensure that the right decisions are made by the right people. HBS professor emeritus Michael C. Jensen explains in Harvard Management Update. Closed for comment; 0 Comments.
- 25 Jul 2005
- Research & Ideas
An Organization Your Customers Understand
Defining your primary customer is an ideal "outside-in" approach to better designing your whole organizational structure. In this excerpt from his new book, Levers of Organization Design, HBS professor Robert Simons describes how to do it. Closed for comment; 0 Comments.
- 30 May 2005
- Research & Ideas
Germany’s Pioneering Corporate Managers
Professor Jeffrey Fear's new book Organizing Control takes a fresh look at corporate management innovations created by German companies and managers over the last two centuries. A Q&A with the author. Closed for comment; 0 Comments.
- 04 Apr 2005
- What Do You Think?
Can an Organization’s “Deep Smarts” Be Preserved?
When employees leave, they take more than their coat and hat. How can companies better preserve the accumulated knowledge of individuals? Isn’t that what separates average companies from truly great ones? Closed for comment; 0 Comments.
- 19 Jul 2004
- Research & Ideas
Why Innovations Sit on the Shelf
Why can't your organization capitalize on great ideas? Surprise! The answer may have more to do with communication than inventiveness. From Strategy and Innovation. Closed for comment; 0 Comments.
- 05 Jul 2004
- What Do You Think?
Work-Life: Is Productivity in the Balance?
Many organizations regard work-life benefits as an investment designed, among other things, to attract and retain talent. How do such benefits affect productivity for the individuals, the company, and society? Closed for comment; 0 Comments.
- 01 Mar 2004
- Lessons from the Classroom
Mission to Mars: It Really Is Rocket Science
Do the successful Mars missions mean NASA again has the right stuff? Professor Alan MacCormack dissects the space agency’s "Faster, Better, Cheaper" program. Closed for comment; 0 Comments.
- 09 Feb 2004
- Research & Ideas
Got a New Strategy? Now Make it Happen
Many strategies never take off for lack of honest discussion, say Harvard Business School's Michael Beer and co-author Russell A. Eisenstat. A Harvard Business Review excerpt. Closed for comment; 0 Comments.
- 12 Jan 2004
- Research & Ideas
Does Your HQ Operation Fit With Corporate Strategy?
Is a lean headquarters operation the key to success? How should headquarters design fit with corporate strategy? New research from professor David J. Collis has surprising answers. Closed for comment; 0 Comments.
The Demise of Cost and Profit Centers
The Balanced Scorecard has proven to be a general and powerful performance management framework for units previously treated as profit and investment centers. The management control literature, however, identifies other organizational forms for decentralized units, including standard cost centers, revenue centers, and support units treated as discretionary expense centers. Starting from the example of a classic teaching case, Empire Glass Company, Kaplan explains how strategy maps and the Balanced Scorecard transform cost, revenue, and discretionary expense centers into strategic business units in their own right. Key concepts include: The foundation of management control systems has been enhanced by applying strategy maps and Balanced Scorecards to motivate, align, and evaluate the performance of diverse organizational units. The leading paradigm of organizational structure and control of just a generation ago—based on cost, profit, investment, revenue, and discretionary expense centers—is replaced by a framework in which every organizational unit can be considered a strategic business unit. Closed for comment; 0 Comments.