Knowledge@Wharton -- Leadership and Change

Davos 2012: 'Joblessness and Its Discontents'

Wed, 01 Feb 2012 15:41:52 EST

Optimism was in short supply at the 2012 annual meeting of the World Economic Forum in Davos, Switzerland, which ended on Sunday. As Wharton management professor Michael Useem reports below, keynote speakers and panelists alike focused on a number of problems that are getting in the way of global prosperity. Chief among them is unemployment, followed by a shortage of highly-trained workers needed to spur innovation and solve social challenges. On the bright side, Useem notes, is the rapid growth of emerging economies.

IBM's Sam Palmisano: 'Always Put the Enterprise Ahead of the Individual'

Wed, 18 Jan 2012 15:33:22 EST

As far as a legacy goes, says IBM chairman Sam Palmisano, "I just want to leave the company better than I found it." Judging by IBM's successes over the past decade, Palmisano, who was CEO of IBM until he stepped down earlier this month, did just that. During an interview with Wharton management professor Michael Useem, Palmisano discussed the sale of the company's personal computer business, the PricewaterhouseCoopers acquisition, how a big company can encourage innovation, and what he learned from his mentors, among other observations drawn from almost 40 years at IBM.

Customers, Competition and Cost: Sam's Club CEO Brian Cornell on the Essential 'Cs' of Leadership

Wed, 18 Jan 2012 15:33:22 EST

For Sam's Club CEO Brian Cornell, good leadership is about getting inside the heads of the warehouse chain's 47 million shoppers and figuring out the product mix and shopping experience that will keep them coming back for more. At a recent Wharton Leadership Lecture, he talked about the "Cs" that govern his leadership style and the opportunities and challenges created by today's more value-conscious breed of consumer.

Richard Branson's High-flying Autobiography: Many Success Stories, Few Success Secrets

Thu, 12 Jan 2012 15:50:40 EST

Richard Branson, founder and CEO of Virgin Group, has a story to tell about his early days as a journalist, his creation of a mail-order record business and his expansion into enterprises ranging from planes and trains to cars, cell phones and spaceships. In his autobiography, Losing My Virginity: How I Survived, Had Fun, and Made a Fortune Doing Business My Way, which he has updated and expanded several times since its publication in 1999, Branson lets it all -- or most of it -- hang out, as Knowledge@Wharton notes in this review.

From Terrorism to Tourism: Waving the Flag of Development in Colombia

Tue, 03 Jan 2012 12:52:45 EST

Colombia's history has been plagued by violence, corruption and crime, images that have been readily apparent to the outside world due to media depictions and worldwide travel warnings. Yet thanks to the increase in safety and stability accomplished by the Uribe administration over the last decade, Colombia has become a destination accessible to more than just a select group of intrepid travelers. In fact, for the first time in history, tourism is proving to be a promising avenue for development in Colombia.

Open for Business: The Pacification of Brazil's Favelas

Tue, 03 Jan 2012 12:52:35 EST

On the morning of November 28, 2010, the Brazilian Special Forces, Military Police and other law enforcement units surrounded the Complexo do Alemão, one of Brazil's largest shanty-town communities and site of the country's most vicious drug wars. Two hours later, the Complexo do Alemão was in the hands of government security forces. Since then -- and with an eye to hosting the 2014 World Cup and the 2016 Summer Olympics -- the Brazilian government has been paving the way for a new entrepreneurial economy to take root in the Complexo.

Globalization and the French Horse Racing Industry

Tue, 03 Jan 2012 12:51:19 EST

Horse racing today is one of the least modernized and most perennially popular sports in France and around the world. Each year, more than 10,000 horse races are followed closely by 6.5 million bettors wagering more than €9.5 billion (US$12.7 billion). At the heart of French horse racing is Pari Mutuel Urbain (PMU), the state-supervised horse racing authority, the second largest betting organization worldwide and the single largest supporter of the French equine industry. PMU acquired its name after revolutionizing horse-race betting 80 years ago by bringing pari-mutuel betting from racetracks to urban centers, thus popularizing the sport in villages, towns and cities all over France.

Born in the USA, Made in France: How McDonald's Succeeds in the Land of Michelin Stars

Tue, 03 Jan 2012 12:50:45 EST

France -- the land of haute cuisine, fine wine and cheese -- would be the last place you would expect to find a thriving fast-food market. In a country known for its strong national identity and anti-globalization movement, it seems improbable that McDonald's could have survived the onslaught of French social and political activism. And yet the company has managed to turn the home of Le Cordon Bleu cooking academies and the Michelin Guide of world-renowned restaurants into its second-most profitable market in the world.

Seven Top Leaders on Making Tough Calls and Serving for the Greater Good

Fri, 09 Dec 2011 12:55:26 EST

What makes a great leader? At a recent event, the seven winners of this year's Top American Leaders Award from the Center for Public Leadership at Harvard's Kennedy School and Washington Post Live shared personal observations on how they came by the passion that inspires their work -- and on what irks them about public life. Common in all their views is that leadership is about serving more than one's self.

Writer/Director M. Night Shyamalan on the Catch 22 of Branding and the Power of Point of View

Wed, 07 Dec 2011 15:00:31 EST

Each of writer/director M. Night Shyamalan's movies has been informed directly by his life experiences: Whether audiences like or dislike the finished result, they recognize his voice guiding the story. At a recent Wharton Leadership Lecture, Shyamalan discussed how a strong point of view has helped him achieve success as a writer and director as well as ride out critical and box office disappointments. It has also defined how he runs the M. Night Shyamalan Foundation, which supports social justice programs in the Philadelphia region and internationally.

'Great by Choice': Jim Collins and Morten T. Hansen on Excelling in Uncertain Times, Part Two

Wed, 30 Nov 2011 10:52:05 EST

In Great by Choice: Uncertainty, Chaos, and Luck -- Why Some Thrive Despite Them All, Jim Collins and Morten Hansen suggest that even in the most tumultuous business conditions, we can choose to be great. In the second half of a two-part interview with Knowledge@Wharton and Wharton management professor Michael Useem, they start out discussing how successful businesses deliver returns that are a minimum of 10 times the industry index over a 15-year period. They also explain why companies don't have to be the most innovative but instead, can be "innovative enough"; the critical importance of "zooming out" and "zooming in" to get your bearings in any situation; and when and how to introduce change in an organization.

Progress but Also Insecurity: An Insider's View of Life in Today's Russia

Tue, 22 Nov 2011 14:27:39 EST

Russia experienced one of the largest mass privatization efforts ever undertaken, says Wharton legal studies and business ethics professor Philip M. Nichols, adding, however, that some of the most valuable assets have been renationalized, or "privatized in a way that allows the state to continue to control them." Nichols recently interviewed Vitali Naishul, president of the Institute for the Study of the Russian Economy and the Center for the Study of Russian Socio-Political Language, and widely acknowledged as one of the creators of the country's market economy. Naishul talks about Russia's economy, and why some Russians have a sense of unease about where the country is headed.

The NY Jets' Mike Tannenbaum and SAP's Bill McDermott: Creating Leaders On and Off the Field

Tue, 22 Nov 2011 14:27:39 EST

The tasks of running a software firm and managing an NFL team seem very different on the surface. During a recent Wharton Leadership Lecture, however, New York Jets general manager Mike Tannenbaum and SAP CEO Bill McDermott noted that they employ similar philosophies to keep their organizations healthy. Chief among them are being decisive, building a coherent vision and looking for investment and hiring opportunities that match up with company culture.

Turning the Page: Books for the Holidays and Beyond

Tue, 22 Nov 2011 14:27:39 EST

Our latest book report offers some opportunities for reflection as the year comes to a close. Jim Collins and Morten T. Hansen discuss Great by Choice, focusing on why some companies thrive in chaos while others do not. Malcolm Gladwell reflects on the “extraordinary wisdom” that has influenced the ideas in his bestselling books. Wharton professors Peter Fader and Richard A. Lambert talk about their new books; Fader challenges businesses to identify their most valuable customers in order to ensure long-term growth, and Lambert explains why it is critical that managers use financial data to make smarter decisions. Rob Markey, co-author of The Ultimate Question 2.0, discusses how companies can measure and increase customer loyalty. Finally, an excerpt from Eric Ries’ Lean Startup will get you thinking about the benefits of applying lean manufacturing concepts to new businesses.

'Great by Choice': Jim Collins and Morten T. Hansen on Excelling in Uncertain Times, Part One

Tue, 22 Nov 2011 11:46:07 EST

In a new book, Jim Collins and Morten Hansen suggest that even in the most tumultuous business conditions, we can choose to be great. Over a period of nine years, Collins, a bestselling author, and Hansen studied businesses that excelled and compared them to those that failed. As they note in part one of an interview with Knowledge@Wharton and Wharton management professor Michael Useem, they learned that the most successful business leaders didn't simply succeed: They delivered returns that were a minimum of 10 times the industry index over a 15-year period. In Great by Choice, Collins and Hansen share what these "10Xers" have to teach other business leaders.

U.S. Attorney Preet Bharara on Cleaning up Wall Street and the Thin Line between Confidence and Arrogance

Wed, 12 Oct 2011 14:52:54 EST

Since being appointed U.S. Attorney for the Southern District of New York in August 2009, Preet Bharara has earned a reputation for taking aggressive stands against white collar criminals, including Raj Rajaratnam, billionaire founder of the Galleon Group. But during a recent Wharton Leadership Lecture, Bharara rejected the idea that his office is anti-Wall Street. "Sometimes financial institutions are our targets," he noted. "Other times they are themselves the victims."

Leading on 9/11 and Beyond: New York City Fire Department's Joseph Pfeifer

Thu, 08 Sep 2011 10:43:49 EST

Ten years ago, on September 11, 2001, New York City Fire Department Battalion Chief Joseph Pfeifer saw the first aircraft hit the World Trade Center's North Tower and radioed the alarm, the first FDNY fire chief to take command. Today, Pfeifer is the New York City Fire Department's Chief of Counterterrorism and Emergency Preparedness and a Citywide Command Chief. Wharton management professor Michael Useem talked with Pfeifer recently about his leadership during the 9/11 rescue efforts and what the New York City Fire Department and other cities are doing to prepare for the unexpected.

Mission Critical: 15 Principles to Help Leaders Meet Their Toughest Challenges

Wed, 22 Jun 2011 15:58:47 EST

In his new book, The Leader's Checklist, Wharton management professor Michael Useem presents a collection of 15 principles that can help leaders navigate successfully through even the most difficult circumstances. Using such milestone events as the rescue of the 33 Chilean miners in 2010, the collapse of AIG in 2008 and the surrender of the Confederate army at Appomattox in 1865, Useem illustrates the difference between good and bad leadership, and how to achieve one's own personal leadership success. The Leader's Checklist is the first ebook published by Wharton Digital Press. To mark the occasion, the book will be available as a free download at leading retailers until June 28, 2011.

Urban Outfitters' Glen Senk: Look for the Right Culture, Diverse Opinions and 'Bad News'

Wed, 25 May 2011 16:03:17 EST

According to Glen T. Senk, the key to success is hiring and cultivating the right people. At a recent Wharton Leadership Lecture, the CEO of Philadelphia-based retailer Urban Outfitters underscored the importance of recruiting and developing a team that is a good fit for corporate culture -- and then listening to what those employees have to say, even when "you have to pull [the bad news] out of them."

Susan T. Spencer's 'Briefcase Essentials' for Women in Business

Thu, 19 May 2011 10:27:00 EST

As the first and only woman general manager of an NFL team, Susan Tose Spencer has long been accustomed to playing in the big leagues with men. In her new book, Briefcase Essentials: Discover Your 12 Natural Talents for Achieving Success in a Male-Dominated Workplace, she offers advice for women trying to succeed in male-dominated industries.