Make your values mean something

Take a look at this list of corporate values: Communication. Respect. Integrity. Excellence. They sound pretty good, don't they? Maybe they even resemble your own company's values. If so, you should be nervous. These are the corporate values of Enron, as claimed in its 2000 annual report. And they're absolutely meaningless. Indeed, most values statements, says the author, are bland, toothless, or just plain dishonest. And far from being harmless, as some executives assume, they're often highly destructive. Empty values statements create cynical and dispirited employees and undermine managerial credibility. But coming up with strong values--and sticking to them--isn't easy. Organizations that want their values statements to really mean something should follow four imperatives. First, understand the different types of values: core, aspirational, permission-to-play, and accidental. Confusing them with one another can bewilder employees and make management seem out of touch. Second, be aggressively authentic. Too many companies view a values initiative in the same way they view a marketing launch: a onetime event measured by the initial attention it receives, not by its content. Third, own the process. Values initiatives are about imposing a set of fundamental, strategically sound beliefs on a broad group of people. That's why the best values efforts are driven by small teams. Finally, weave core values into everything. It's not enough to hang your values statement on the wall; it must be integrated into every employee-related process--hiring methods, performance management systems, even dismissal policies. Living by stated corporate values is difficult. But the benefits of doing so can be profound; so can the damage from adopting a hollow set of corporate values.     

Growing talent as if your business depended on it

Traditionally, corporate boards have left leadership planning and development very much up to their CEOs and human resources departments-primarily because they don't perceive that a lack of leadership development in their companies poses the same kind of threat that accounting blunders or missed earnings do. That's a shortsighted view, the authors argue. Companies whose boards and senior executives fail to prioritize succession planning and leadership development end up experiencing a steady attrition in talent and becoming extremely vulnerable when they have to cope with inevitable upheavals- integrating an acquired company with a different operating style and culture, for instance, or reexamining basic operating assumptions when a competitor with a leaner cost structure emerges. Firms that haven't focused on their systems for building their bench strength will probably make wrong decisions in these situations. In this article, the authors explain what makes a successful leadership development program, based on their research over the past few years with companies in a range of industries. They describe how several forward-thinking companies (Tyson Foods, Starbucks, and Mellon Financial, in particular) are implementing smart, integrated, talent development initiatives. A leadership development program should not comprise stand-alone, ad hoc activities coordinated by the human resources department, the authors say. A company's leadership development processes should align with strategic priorities. From the board of directors on down, senior executives should be deeply involved in finding and growing talent, and line managers should be evaluated and promoted expressly for their contributions to the organization-wide effort. HR should be allowed to create development tools and facilitate their use, but the business units should take responsibility for development activities, and the board should ultimately oversee the whole system.     

Deep change. How operational innovation can transform your company

Breakthrough innovations--not just steady improvements--in operations can destroy competitors and shake up entire industries. Just look at Dell, Toyota, and Wal-Mart. But fewer than 10% of large companies have made serious attempts to achieve operational innovation. Why? One reason, contends the author, is that business culture undervalues operations--they're not as sexy as deals or acquisitions. In addition, many executives who rose through the ranks of finance or sales aren't familiar with operations--and they aren't interested in learning more. Finally, because no one holds the title Vice President of Operational Innovation, it doesn't have a natural home in the organization, so it's easily overlooked. Fortunately, all of these barriers can be overcome. This article offers practical advice on how to develop operational innovations, such as looking for role models outside your industry to emulate and identifying--and then defying--constraining assumptions about how work should be done. The author also discusses the best way to implement operational innovations. For instance, because they are disruptive by nature, projects should be concentrated in those activities with the greatest impact on enterprise strategic goals. Operational innovation may feel unglamorous or unfamiliar to many executives, but it is the only lasting basis for superior performance. Executives who understand how operational innovation happens--and who understand the barriers that prevent it from happening--can add to their strategic arsenal one of the most powerful competitive weapons in existence. In an economy that has overdosed on hype and in which customers rule as never before, operational innovation offers a meaningful and sustainable way to get ahead--and stay ahead--of the pack.     

Consumerism's sea change: how it will affect your company in the coming years

Consumerism and care management are the cost-containment strategies most employers say they will focus on over the next five years. This article reviews the growth of these strategies and the different ways employers have implemented them. The author then delineates the ten key ways that consumerism may affect companies over the next five- to ten-year time period, as these strategies continue to move health benefits toward greater transparency, flexibility and accountability.     

迈出转型的一步--港交所新上市规则述评

也许,若干年后再回头来看,现在港交所修改上市规则,是其发展过程中开始实现转型的一件大事。     

向市场化冲刺--评证监会发审制度改革

发行制度与退市制度就如同一个水池的进水口和出水口。要提高上市公司整体质量,过滤进水口同疏通出水口一样重要。     

Competing on talent analytics

Do investments in your employees actually affect workforce performance? Who are your top performers? How can you empower and motivate other employees to excel? Leading-edge companies such as Google, Best Buy, Procter & Gamble, and Sysco use sophisticated data-collection technology and analysis to answer these questions, leveraging a range of analytics to improve the way they attract and retain talent, connect their employee data to business performance, differentiate themselves from competitors, and more. The authors present the six key ways in which companies track, analyze, and use data about their people-ranging from a simple baseline of metrics to monitor the organization's overall health to custom modeling for predicting future head count depending on various "what if" scenarios. They go on to show that companies competing on talent analytics manage data and technology at an enterprise level, support what analytical leaders do, choose realistic targets for analysis, and hire analysts with strong interpersonal skills as well as broad expertise.     

创新发展中的德利多富公司——访德利多富中国区总裁姚培聪

作为一家为银行业和零售业提供专业IT服务的厂商,德利多富有明显的优势：雄厚的研发实力、多领域的核心技术、不断增强的创新能力。这些优势使得德利多富在激烈的市场竞争中稳步前进。记者近日采访了德利多富中国区总裁姚培聪,以进一步了解中国金融业自助设备市场的现状及未来。     

What working for a Japanese company taught me

In the late 1970s, John E. Rehfeld read everything he could on Japanese business. Most of the discussions focused on interest rates, the education system, and the culture--all very interesting but not very useful. What did these things have to do with day-to-day management? Since then, by working for Japanese companies, he has discovered more than ten Japanese management techniques that have everything to do with running a business. As vice president and general manager of Toshiba's U.S. computer business for nine years and president of Seiko Instruments USA for two, he has seen firsthand how the Japanese manage, and he has applied those techniques in the United States. Using six-month budget cycles, quantifying intangibles, and looking back to see what you could have done better are among the seemingly insignificant practices that combine to have big impact. For example, the author first saw budgeting for 6 months instead of 12 as twice as much work. But he came to appreciate the benefits: managers work harder because they have two deadlines a year, and planning and control improve because managers can adjust their targets to changing conditions more quickly. The author had another change of heart when he was asked to specify how many PCs would sell as the result of a demo program, a task he first thought ridiculous. Though he still thinks such numbers are shaky, he values the discipline of the thought process. These and other techniques, he says, explain much of Japanese companies' success and are tools that managers anywhere can use.     

How we built a strong company in a weak industry

When Roger Brown and Linda Mason decided to start a child care and early-education company 15 years ago, they knew about the challenges inherent in the industry: no barriers to entry, low margins, few economies of scale, heavy regulatory oversight--to name just a few. But that didn't stop them. They eventually built Bright Horizons Family Solutions, a company that now has more than 340 high-quality child care centers, serving 40,000 children and employing 12,000 people. How did they do it? Sheer determination helped. But even more important, they developed a business model that took advantage of industry weaknesses. When the couple sat down to hash out a plan for the company, they realized that the key to achieving profitability and creating barriers to entry was to partner with companies. They could achieve higher returns by having those companies build and outfit the centers and, at the same time, boost customer loyalty. Indeed, Bright Horizon's corporate clients came to see the state-of-the-art centers as a way to distinguish themselves in the eyes of current and prospective employees. The high-quality child care attracted the best employees and raised retention rates. Brown's first-person account describes the difficulties the couple and their company faced along the way, including the struggle for funding and a board that questioned Bright Horizons' business model and basic philosophy of good child care. But, Brown says, the commitment to a singular business model and the determination to make strengths out of weaknesses made the impossible possible.     

四家试点小额贷款公司开局良好

被称为2004年中央1号文件的《中共中央、国务院关于促进农民增加收入若干政策意见》明确提出,“要从农村实际和农民需要出发,按照有利于增加农户和企业贷款,有利于改善农村金融服务的要求,加快改革和创新农村金融体制。鼓励有条件的地方,在严格监管、有效防范金融风险的前提下,通过吸引社会资本和外资,积极兴办直接为“三农”服务的多种所有制的金融     

The superefficient company

Most companies do a great job promoting efficiency within their own walls, streamlining internal processes wherever possible. But they have less success coordinating cross-company business interactions. When data pass between companies, inconsistencies, errors, and misunderstandings routinely arise, leading to wasted work--for instance, the same sales, order entry, and customer data may be entered repeatedly into different systems. Typically, scores of employees at each company manage these cumbersome interactions. The costs of such inefficiencies are very real and very large. In this article, Michael Hammer outlines the activities and goals used in streamlining cross-company processes. He breaks down the approach into four stages: scoping--identifying the business process for redesign and selecting a partner; organizing--establishing a joint committee to oversee the redesign and convening a design team to implement it; redesigning--taking apart and reassembling the process, with performance goals in mind; and implementing--rolling out the new process and communicating it across the collaborating companies. The author describes how several companies have streamlined their supply-chain and product development processes. Plastics compounder Geon integrated its forecasting and fulfillment processes with those of its main supplier after watching inventories, working capital, and shipping times creep up. General Mills coordinated the delivery of its yogurt with Land O'Lakes; butter and yogurt travel cost effectively in the same trucks to the same stores. Hammer says this new kind of collaboration promises to change the traditional vocabulary of corporate relationships. What if you and I sell different products to the same customer? We're not competitors, but what are we? In the past, we didn't care. Now, we should, the author says.     

The living company

What can explain the longevity gap between a company that survives for centuries--the Swedish company Stora, for example, which is more than 700 years old--and the average corporation, which does not last 20 years? A team at Royal Dutch/Shell Group explored that question. Arie de Geus, a retired Shell executive, writes about the team's findings and describes what he calls living companies-organizations that have beaten the high mortality rate of the average corporation. Many companies die young, de Geus argues, because their policies and practices are based too heavily on the thinking and language of economics. Their managers focus on producing goods and services and forget that the organization is a community of human beings that is in business--any business--to stay alive. In contrast, managers of living companies consider themselves to be stewards of a long-standing enterprise. Their priorities reflect their commitment to the organization's long-term survival in an unpredictable world. Like careful gardeners, they encourage growth and renewal without endangering the plant they are tending. They value profits the same way most people value oxygen: as necessary for life but not the purpose of it. They scuttle assets when necessary to make a dramatic change in the business portfolio. And they constantly search for new ideas. These managers also focus on developing people. They create opportunities for employees to learn from one another. Such organizations are suited for survival in a world in which success depends on the ability to learn, to adapt, and to evolve.     

Building an innovation factory

New ideas are the precious currency of the new economy, but generating them doesn't have to be a mysterious process. The image of the lone genius inventing from scratch is a romantic fiction. Businesses that constantly innovate have systematized the production and testing of new ideas, and the system can be replicated by practically any organization. The best innovators use old ideas as the raw materials for new ideas, a strategy the authors call knowledge brokering. The system for sustaining innovation is the knowledge brokering cycle, and the authors discuss its four parts. The first is capturing good ideas from a wide variety of sources. The second is keeping those ideas alive by playing with them, discussing them, and using them. Imagining new uses for old ideas is the third part--some knowledge brokers encourage cross-pollination by creating physical layouts that allow, or even force, people to interact with one another. The fourth is turning promising concepts into real services, products, processes, or business models. Companies can use all or part of the cycle. Large companies in particular desperately need to move ideas from one place to another. Some will want to build full-fledged consulting groups dedicated to internal knowledge brokering. Others can hire people who have faced problems similar to the companies' current problems. The most important lesson is that business leaders must change how they think about innovation, and they must change how their company cultures reflect that thinking.     

When your culture needs a makeover.

In 1994, the consumer products company Alberto-Culver North America faced flattened sales and the most difficult competitive environment of its history. President Carol Bernick knew that overcoming theses challenges would require a certain kind of corporate culture-but it wasn't the culture the company had. She changed that by focusing on four areas. First, Bernick made culture visible and elevated it to priority status, often by highlighting desired values and behaviors that already existed in pockets of the company. Her annual "state of the company" address stresses that people must be attuned to business realities and the drivers of success. Employees now develop statements of individual economic value describing their contributions to the company's profitability. The company's ten cultural imperatives are required knowledge for all. Second, Bernick and her executive team created the role of growth development leader (GDL). Each mentors about a dozen people. Her frequent meetings with GDLs make them effective agents of change upward and downward. The role is coveted because GDLs have real power to make change: every year they vote on the issues, large and small, that must be addressed by the business as a whole. Third, the company uses an employee survey to identify areas for improvement and to provide 360-degree feedback to GDLs and top management. And fourth, successes are celebrated constantly--through stock awards for the best GDLs, Business Builders Awards for great innovators, and many other, less formal means. Since 1994, the company has cut employee turnover in half, seen sales grow 83%, and watched pretax profits rise 336%--indicators of how cultural change is driving business results.     

Manage your energy, not your time

As the demands of the workplace keep rising, many people respond by putting in ever longer hours, which inevitably leads to burnout that costs both the organization and the employee. Meanwhile, people take for granted what fuels their capacity to work--their energy. Increasing that capacity is the best way to get more done faster and better. Time is a finite resource, but energy is different. It has four wellsprings--the body, emotions, mind, and spirit--and in each, it can be systematically expanded and renewed. In this article, Schwartz, founder of the Energy Project, describes how to establish rituals that will build energy in the four key dimensions. For instance, harnessing the body's ultradian rhythms by taking intermittent breaks restores physical energy. Rejecting the role of a victim and instead viewing events through three hopeful lenses defuses energy-draining negative emotions. Avoiding the constant distractions that technology has introduced increases mental energy. And participating in activities that give you a sense of meaning and purpose boosts the energy of the spirit. The new workday rituals succeed only if leaders support their adoption, but when that happens, the results can be powerful. A group of Wachovia Bank employees who went through an energy management program outperformed a control group on important financial metrics like loans generated, and they reported substantially improved customer relationships, productivity, and personal satisfaction. These findings corroborated anecdotal evidence gathered about the effectiveness of this approach at other companies, including Ernst & Young, Sony, and Deutsche Bank. When organizations invest in all dimensions of their employees' lives, individuals respond by bringing all their energy wholeheartedly to work -and both companies and their people grow in value.     

When your contract manufacturer becomes your competitor

PC maker Lenovo started out as a distributor of equipment made by IBM and other companies; now it has formed a joint venture with IBM and will eventually affix its own logo to its computers. Shanghai Automotive Industry Corporation (SAIC) started out manufacturing vehicles for Volkswagen and GM; now it's preparing to sell its own cars in China, Europe, and North America. Lenovo and SAIC represent a host of formerly anonymous makers of brand-name products that are breaking out of their defined roles and pushing the brands themselves aside. In this article, the authors explore the double-edged relationships original equipment manufacturers (OEMs) forge with their contract manufacturers (CMs). On the one hand, an OEM can reduce its labor costs, free up capital, and improve worker productivity by outsourcing all the manufacturing of a product. The company can then concentrate on value-adding activities--research and development, product design, and marketing, for instance. On the other hand, an OEM that retains a contract manufacturer may find itself immersed in a melodrama replete with promiscuity (the ambitious CM pursues liaisons with other OEMs), infidelity (the OEM's retailers and distributors shift their business to the upstart CM), and betrayal (the brazen CM transmits the OEM's intellectual property to the OEM's rivals or keeps it for itself when the contract is up). OEMs cannot simply terminate their outsourcing arrangements--they need contract manufacturers in order to keep specializing, adding value, and staying competitive. But OEMs can manage these relationships so that they don't become weak or the CMs too strong. Doing so requires modesty about revealing trade secrets; caution about whom one consorts with; and a judicious degree of intimacy, loyalty, and generosity toward partners and customers.