Michael Useem - Faculty Research in Knowledge@Wharton

Six Months into the Job: How Successful Is the President's Leadership Style?

Wed, 05 Aug 2009 16:41:52 EST

With many of President Obama's key agenda items still unresolved midway through his first year in office, a debate has started to brew over the effectiveness of his leadership strategy and style. Critics say his agenda is too broad and that he is yielding too much authority to Congress. But leadership experts at Wharton suggest that this approach may be necessary, given the multitude of challenges the President inherited when he took the oath of office.

Ara Darzi and the British National Health Service: Changing the Mindset

Mon, 27 Apr 2009 12:07:12 EST

During a recent visit to the University of Pennsylvania, Ara Darzi, Lord Darzi of Denham, spoke with Wharton management professor Michael Useem about the British National Health Service (NHS) and how it plans to meet the challenges of delivering quality health care in England over the next decade. Darzi, a surgeon, was appointed Health Minister by British Prime Minister Gordon Brown in June 2007.

One Former Investment Banker's Take on Restoring the 'Financial Quality, Integrity and Soundness of Our System'

Wed, 18 Mar 2009 11:49:42 EST

At the recent World Economic Forum in Davos, Wharton management professor Michael Useem talked with Suzanne Nora Johnson, vice chairman of Goldman Sachs until 2007, about the global crisis, executive compensation, the Goldman Sachs culture and CEO succession, among other topics. Johnson currently serves on a number of for-profit and non-profit boards, including AIG, Intuit, Pfizer, Visa, Women's World Banking and the American Red Cross.

Bill Amelio Talks Strategy before Departing as Lenovo CEO

Mon, 09 Feb 2009 13:54:32 EST

During the World Economic Forum at Davos, which ended February 1, Wharton management professor Michael Useem interviewed Bill Amelio, then CEO of the Chinese computer maker Lenovo Group, about the company's strategy for dealing with the current downturn in the computer industry and in global markets overall. On February 5, Lenovo announced that chairman Yang Yuanqing would replace Amelio as CEO, and that co-founder Liu Chuanzhi would become board chairman. Lenovo joins a list of other high-technology companies -- including Apple and Dell -- whose founders have, at one point, stepped away from the CEO role, only to return to that position several years later during particularly challenging times in the industry. Amelio, who previously headed up Dell's Asia-Pacific operations, was appointed CEO of Lenovo in 2005, shortly after the company acquired IBM's personal computer business.

Snapshots from Davos: Seeking Opportunity in Crisis

Wed, 04 Feb 2009 17:07:39 EST

Distressed, stunned, shocked: These are the words used by Michael Useem, director of Wharton's Center for Leadership and Change Management, to describe the mood at Davos, the global economic forum usually known for its blue-chip guest list, high-level debates and upbeat mood. Not this year. As Useem, who has been attending the forum off-and-on since 1997, notes: "If exuberance ignited the financial meltdown in 2008, anguish described those now picking through the debris." In the article below, Useem offers a perspective on the global economic crisis and the opportunities for moving forward, as seen through the lens of Davos.

Job-less: Steve Jobs's Succession Plan Should Be a Top Priority for Apple

Wed, 07 Jan 2009 16:53:55 EST

Companies with strong corporate cultures can usually count on continued success if they can seamlessly transfer power to an executive from a strong bench of managers. But selecting the successor to Apple CEO Steve Jobs will be tricky, given the degree to which he is tied to Apple's identity, say Wharton faculty.

Bailout or Bankruptcy: What Will It Take to Get the U.S. Auto Industry Back on Track?

Wed, 10 Dec 2008 17:40:48 EST

A government plan to rescue the U.S. automobile industry with $14 billion in emergency loans to General Motors and Chrysler was approved by the House of Representatives late on December 10, but the proposal continued to face stiff opposition from Senate Republicans. While the lifeline loans would give the Detroit automakers some breathing room, legislators and auto executives remain under enormous pressure to come up with a plan to resolve the industry's deep structural and management problems. Wharton faculty and other experts discuss the merits of the bailout proposal and what the potential alternative -- bankruptcy -- could mean.

CEOs and Market Woes: Is Poor Corporate Governance to Blame?

Wed, 10 Dec 2008 17:25:28 EST

Many shareholder advocates see the financial collapse and resulting economic woes as stunning proof of their long-held claim that too often the wrong people are in charge of top corporations -- and that attacking this problem demands an overhaul in corporate-governance regulations. But not everyone sees governance as the culprit, and some warn that a kneejerk attack on established corporate practices could backfire.

'In the Eye of the Storm': Citi CEO Vikram Pandit Sees a Difficult Recovery Ahead

Thu, 02 Oct 2008 16:55:14 EST

As negotiators in Washington struggled to devise a plan to rescue Wall Street and avert a global financial catastrophe, Citigroup CEO Vikram Pandit noted during an interview at Wharton last week that even with government intervention, global financial markets will need years to recover.

Wanted: A President Who Can Lead During a Time of 'Daunting' Challenges

Wed, 01 Oct 2008 17:54:21 EST

The new president's job, says one Wharton professor, "will be as hard as any job any person has ever had." For the 44^th president of the United States, extraordinary managerial and cognitive abilities will be needed to tackle unprecedented challenges, including wars being waged in two countries and a financial system on the verge of collapse. Wharton and University of Pennsylvania faculty members offer their views on which leadership qualities will be most important over the next four years, and why. This article is the third in a series about economic and leadership issues focusing on the November 4 election.

Huge Reserves, Emerging Market 'Challengers' and Other Forces Are Changing Global Finance

Mon, 22 Sep 2008 16:32:49 EST

Rapidly developing economies have become drivers of change -- and sometimes disruption -- in global financial markets. That has important implications for companies in the U.S. and Europe as new players emerge, including sovereign wealth funds, state-controlled entities and acquisition-minded corporations. According to experts at Wharton and The Boston Consulting Group, these entities will increasingly look to buy assets beyond their borders, including controlling stakes in foreign companies.

On the Verge of Change: Giving Muslim Women the Confidence to Lead

Wed, 06 Aug 2008 17:31:38 EST

Managing the forces arrayed against them -- hostility against Islam in the Western world, resistance to change among Muslims and hostility to the West among Muslim populations -- is no easy task for Muslim women in positions of leadership. As one of the participants in a recent leadership conference noted: "A Muslim woman must prove not just that she is as good, or better, than a man, but as good as a Western woman." Two Wharton leadership experts were among the presenters at the three-week event.

Russia's Best-known Investment Banker, Ruben Vardanian, on Building Trust in a Fast-moving World

Wed, 11 Jun 2008 16:25:47 EST

When 22-year-old Ruben Vardanian became General Director of Troika Dialog in 1992, he applied international banking standards, stressed transparency and built a young, multicultural and cooperative workforce. It wasn't easy in the rough-and-tumble Russian economy of the 1990s, but his company is now Russia's oldest and largest private investment bank. Wharton management professors Valery Yakubovich and Michael Useem spoke with Vardanian about entrepreneurship, education -- and staying honest -- in Russia.

Physician and Administrator: How Surgeon Larry Kaiser Navigates Two Different Worlds

Thu, 13 Mar 2008 14:43:53 EST

Larry Kaiser, chairman of the department of surgery and surgeon-in-chief for the University of Pennsylvania Health System, is responsible for more than 110 surgeons in his own department, and he leads one of the largest thoracic services in the country. Michael Useem, director of Wharton's Center for Leadership and Change Management, recently spoke with Kaiser about the challenges of playing a leadership role -- not just in a major medical center, but also in a health care environment that has experienced radical changes over the last decade.

Lessons from Davos, One of Globalization's Best Classrooms

Wed, 06 Feb 2008 15:51:11 EST

Deliberations at the World Economic Forum in Davos last month did not go entirely as planned, but few of the 2,400 people attending the meeting were deterred by the plunging market. In this opinion piece, management professor Michael Useem, who directs Wharton's Center for Leadership and Change Management and who attended the forum, discusses how Davos has emerged as a "classroom on globalization." Among the key lessons from this year's class: Central bankers have lost their way; sovereign wealth, hedge and private equity funds are the new power brokers; and no new authority should be put in control.

Is One Global Model of Corporate Governance Likely, or Even Desirable?

Wed, 09 Jan 2008 15:30:15 EST

In Germany, labor unions traditionally have had seats on corporate boards. At Japanese firms, dozens of loyal managers cap off careers with a stint in the boardroom. Founding families hold sway on Indian corporate boards. And in China, Communist Party officials are corporate board fixtures. But as companies continue to globalize, should they consider adopting one uniform model of corporate governance? Or do global investors benefit from diverse governance structures? Wharton faculty and others offer their opinions.

CEO Succession: Has Grooming Talent on the Inside Gone by the Wayside?

Wed, 28 Nov 2007 15:54:07 EST

The recent departures of two chief executives -- Stanley O'Neal of Merrill Lynch and Charles Prince of Citigroup -- in the wake of major financial losses at their firms, have focused renewed attention on the issue of succession planning. Published reports speculated that both positions would be filled by outside candidates, and on November 14, Merrill Lynch announced that it had chosen John Thain, CEO of NYSE Euronext, to succeed O'Neal. While such a move is not surprising for a board wanting to signal a fresh start to investors, Wharton faculty say that, increasingly, companies are looking to fill top spots with external candidates, while spending less time on grooming future leaders and managing talent in general.

Dana Gioia on the Close Connection between Business and Poetry

Wed, 30 May 2007 15:38:15 EST

Dana Gioia (pronounced Joy-a) claims to be the only person in history who went to business school to be a poet. Having earned a degree from Stanford's graduate school of business, he worked 15 years in corporate life, eventually becoming vice president of General Foods. In 1991, Gioia wrote an influential collection of essays titled, "Can Poetry Matter?" in which he explored, among other themes, the nexus between business and poetry. Since 2002, he has been chairman of the National Endowment of the Arts where he has overseen programs aimed at making Shakespeare and poetry recitation more popular in the U.S. Gioia, who is a speaker at the Wharton Leadership Conference in Philadelphia on June 7, talked about these ideas with management professor Michael Useem and Knowledge@Wharton.

Short-Circuited: Cutting Jobs as Corporate Strategy

Wed, 04 Apr 2007 15:37:12 EST

When Circuit City announced last week that it was laying off 3,400 workers so it could rehire new ones at lower salaries, it raised the question of just what strategic benefits the company -- or any company -- expects to achieve through employee downsizing. Clearly these benefits depend on the underlying strength of the organization and the specific reasons behind the cost-cutting, but most experts agree that unless layoffs are part of a well-planned strategy, the move could cause as many problems as it was intended to cure.

Bill George's 'Authentic Leadership': Passion Comes from People's Life Stories

Wed, 28 Mar 2007 13:10:36 EST

Bill George, probably best known in the business community for his former position as chairman and CEO of Medtronic, is also an author. In 2003 he published a book called, Authentic Leadership: Rediscovering the Secrets to Creating Lasting Value. This month he published his second book titled, True North: Discover Your Authentic Leadership, described by George and his co-author Peter Sims as a way to "locate the internal compass that guides you successfully through life." George is also a professor of management practice at Harvard Business School. He and Michael Useem, director of Wharton's Center for Leadership and Change Management, recently talked with Knowledge@Wharton about authentic leadership, both the book and the concept.

The World Economic Forum: A Call to Exercise Global Leadership, Not Just Self Interest

Wed, 07 Feb 2007 15:59:14 EST

This year's convening of The World Economic Forum in Davos, Switzerland, brought together approximately 2,400 corporate executives, heads of government and leaders of organizations like the World Bank and Human Rights Watch to debate issues ranging from global warming to the rise of the Internet and the future of the Middle East. Michael Useem, director of Wharton's Center for Leadership and Change Management, attended the five-day event. He offers his report on what he calls Davos' "culture of transcendent leadership," which he defines as "a willingness by those with company or country responsibilities to make decisions that benefit those far beyond the decision maker's own organization or nation."

Home Unimprovement: Was Nardelli's Tenure at Home Depot a Blueprint for Failure?

Wed, 10 Jan 2007 15:46:57 EST

After years of a declining stock price, Home Depot announced the resignation of CEO Robert Nardelli on January 3. Wharton faculty members and other experts say Nardelli, a talented former executive at General Electric who came within a hair's breadth of replacing Jack Welch as head of the giant conglomerate, brought the wrong toolbox to the job after he was recruited for Home Depot's top spot in December 2000. With strategic missteps, an outsized compensation contract and a knack for alienating employees and shareholders, Nardelli turned out to be a star-crossed leader.

Podcast: Humana CEO Mike McCallister: Letting the Consumer Drive Innovation

Wed, 25 Oct 2006 16:12:21 EST

Mike McCallister, CEO of Humana, one of the United States' largest publicly traded health benefits providers, is leading the company's change from a traditional "one-size-fits-all" health care delivery model to one in which product innovation is driven by consumer needs. McCallister spoke with Wharton management professor Michael Useem and Stephen Wilson, engagement director in George Group Consulting's Conquering Complexity practice, about managing complexity while innovating in a rapidly changing industry.

Connecting the Dots between Innovation and Leadership

Wed, 04 Oct 2006 14:39:32 EST

At a recent Wharton roundtable discussion on leadership and innovation, panelists were asked how the two are linked, and what single factor they think is most critical to innovation in their industry. The answers (in a word): culture, passion, marketing, among others. The event, during which panelists also reflected on their career choices, was part of Wharton's 125^th anniversary celebration.

Michael Useem's 'The Go Point': Knowing When It's Time to Decide

Wed, 04 Oct 2006 15:15:56 EST

In writing his latest book, The Go Point: When It's Time to Decide -- Knowing What to Do and When to Do It, Michael Useem asked more than 100 leading decision-makers to analyze decisions they had made, to name their best and worst decisions, to describe how they reached them, and to comment on what, if anything, they would change about how the decisions were arrived at. Useem, director of the Center for Leadership and Change Management at Wharton, talks with Knowledge@Wharton about The Go Point.

ICICI's K.V. Kamath Shapes a Business Plan in Rural India's Uncertain Financial Terrain

Wed, 26 Jul 2006 12:03:13 EST

K. V. Kamath, CEO of India's second largest banking and financial services conglomerate, ICICI, is a man in a hurry. When he occupied the driver's seat at ICICI more than a decade ago, it was a financial institution hamstrung by political constraints. As a key member of the top team at ICICI that led the organization into new businesses such as insurance and banking, Kamath used technology effectively to pry open market expansion. Today, his top challenge is to retain the talent ICICI trains, which is keenly sought by other financial services players. In an interview with Michael Useem, Wharton professor of management and director of the school's Center for Leadership & Change Management, Kamath discusses ICICI's foray into rural banking and other challenges.

Tip of the Spear: Leadership Lessons from the U.S.-led Armed Forces in the Middle East

Wed, 17 May 2006 15:28:37 EST

The Pentagon recently invited a group of 43 civilians, including Michael Useem, director of Wharton's Center for Leadership and Change Management, to witness the management and leadership of its Central Command, which is responsible for the wars in Afghanistan and Iraq. Useem and his colleagues -- who included executives, private equity investors, media commentators and academics -- traveled to the Middle East to observe troops and operations in Kuwait, Bahrain, and the Arabian Sea. In this report written literally from the frontlines, Useem takes "a look at the execution of American military policy -- not the policy itself -- a subject of continuing and increasingly intense national debate .... From even this brief foray into their world, it is evident that the U.S. armed services have built what many private companies strive for: a culture of readiness and commitment, cross-service and cross-national integration, and pragmatic flexibility."

Delhi in Davos: How India Built its Brand at the World Economic Forum

Wed, 22 Feb 2006 16:56:24 EST

The emergence of China and India figured prominently at the World Economic Forum annual meeting in Davos last month. In India's case, however, another factor also was at work. Determined not to be overshadowed, Indian business and government leaders spent some two years and $4 million planning an elaborate branding campaign to ensure that the "India story" got prominent play and did not get lost amid the chatter at Davos. How does a country go about building its brand though such PR campaigns? And how can outcomes be measured to see if the campaign worked? Wharton professors who were at Davos and Indian business and government leaders say that while India's campaign at the summit was impressive, the country will now have to walk the talk on infrastructure investments and policy reforms if it wants to retain its credibility.

View from Davos: Leadership Today Requires More Caution, Less Exuberance

Wed, 22 Feb 2006 16:56:24 EST

At the annual meeting of the World Economic Forum in Davos last month, the extraordinary optimism of Asian -- especially Chinese and Indian -- leaders held center stage. For Michael Useem, director of Wharton's Center for Leadership and Change, it all felt very déjà vu: In the late 1990s, a similarly exuberant spirit surrounded American business leaders. But the hubris of unbounded optimism can be dangerous, warns Useem, who spoke in three Forum sessions.

Is Indian Business Ready for a Brave New World of Tough Corporate Governance?

Wed, 14 Dec 2005 16:41:41 EST

Demands have long been heard for greater transparency in the way Indian companies do business. Now, matters are about to come to a head. Ready or not, India's public companies must meet a January 1, 2006, deadline to comply with sweeping new corporate governance standards inspired by the Sarbanes-Oxley Act in the U.S. Are Indian companies ready? According to experts at Wharton and Egon Zehnder, the international executive search firm, the rewards for companies that implement sound corporate governance practices can be large.

How Lenovo Is Leveraging the Brand from East to West

Wed, 21 Sep 2005 15:26:48 EST

In May 2005, when Lenovo Group completed a $1.75 billion purchase of IBM's personal computing division, the China-based manufacturer leapfrogged its way to become the No. 3 computer maker in the world, second only to Dell and Hewlett-Packard. Along with rights to the venerable IBM name and logo, Lenovo got Deepak Advani, a Wharton graduate who was serving as vice president of marketing for the old regime. Michael Useem, director of Wharton's Center for Leadership and Change Management, and Wharton marketing professor John Zhang spoke with Advani - who is now Lenovo's senior vice president and chief marketing officer - about what it takes to merge an Eastern business with a Western one.

A Changing of the Guard at the SEC: Will Corporate America Get a More Sympathetic Ear?

Wed, 13 Jul 2005 15:36:49 EST

During his 28 months as chairman of the Securities and Exchange Commission, William Donaldson turned out to be something of a surprise. A Republican and longtime securities industry insider, Donaldson repeatedly sided with the two Democratic commissioners to push through a series of post-Enron market reforms that irritated Wall Street and corporate America, but were applauded by investors' groups. With Donaldson stepping down June 30, will the regulatory pendulum swing the other way under Christopher Cox, the conservative California Congressman Bush has nominated as the next SEC chairman? And just what kind of legacy is Donaldson leaving?

Leadership by the Numbers? It's One Part of Todd Thomson's Management Strategy at Citigroup

Wed, 18 May 2005 15:30:26 EST

At a time when the accounting scandals of Enron, WorldCom and other corporations are still fresh in people's minds, it's interesting to note that Todd S. Thomson, chairman and CEO of Citigroup Inc.'s Global Wealth Management division, describes the role of CFO as "the conscience of a company." Thomson, who was Citigroup's CFO and chief strategist before taking on his current position, spoke with Wharton's Michael Useem, director of the school's Center for Leadership and Change Management. During the interview, Thomson discussed the importance of focusing on facts, motivating employees, and treating shareholders as customers, among other topics. Thomson will be a keynote speaker at the Ninth Annual Wharton Leadership Conference in Philadelphia on June 9.

Free Advice from Wharton: Here's What Hewlett-Packard's New CEO Should Do

Tue, 10 May 2005 15:57:04 EST

When it was announced on March 29 that the board of Hewlett-Packard had tapped Mark V. Hurd to be the company's new CEO and president, the most notable part of the deal was Hurd's relative obscurity. But in the weeks and months to come, Hurd will be front and center. His personality may be lower key than that of the flashy Fiorina, but Wharton faculty members say he faces tough strategic decisions that will raise his visibility at a company whose stock has plummeted in value in the last five years. Chief among the decisions facing Hurd: Should H-P, which acquired Compaq Computer in a controversial move by Fiorina in September 2001, be broken up?

TCL's Dongsheng Li: "We Should Control and Own Our Brands"

Wed, 01 Jun 2005 16:48:52 EST

More and more Chinese companies, having won their spurs in the domestic market, are starting to explore new horizons through globalization. In the process, they face strategic and operational challenges centered around one central question: How should they make the leap from being successful Chinese enterprises to becoming excellent global ones? TCL, the world's largest manufacturer of color televisions, has been grappling with this issue. Following a joint venture with France-based Thomson (which owns the RCA brand), TCL is trying to leverage its manufacturing expertise in China while seeking growth in markets such as Europe and the U.S. Will TCL succeed? In a recent conversation, Dongsheng Li, TCL's CEO, discussed these issues with Wharton's Michael Useem, director of the school's Center for Leadership and Change Management; Jonathan Spector, vice dean of the Aresty Institute for Executive Education at Wharton; Liang Neng, a professor of management and director of the Executive MBA program at China Europe International Business School (CEIBS); and Knowledge@Wharton.

Global Governance: The View from the 2005 World Economic Forum in Davos

Wed, 30 Mar 2005 10:13:57 EST

The establishment of good governance is crucial for companies as well as countries, and it must become a major priority. Recognizing this reality, CEOs and political leaders at the World Economic Forum held last month in Davos paid considerable attention to this issue. Michael Useem, director of Wharton's Center for Leadership and Change Management, who moderated a workshop on the subject at the Forum, provides an inside view of the discussion.

HP After Carly: What Went Wrong?

Wed, 30 Mar 2005 10:17:42 EST

When Carleton (Carly) S. Fiorina joined Hewlett-Packard as its chairman and CEO in 1999, she was widely regarded as a charismatic leader who would help HP get out of its high-tech rut. Six years later, however, Fiorina has been forced out of her position at HP's helm, and the company is still languishing. What happened? According to Wharton professors, while Fiorina has several strengths, the merger she engineered with Compaq not only failed to deliver on its promises, it actually made matters worse.

Poetry and Investment Banking: It's All about Risk

Wed, 26 Jan 2005 13:49:48 EST

When John Barr speaks about risk, it's natural to assume he's talking about finance. After all, Barr's been active in investment banking for more than 30 years -- first as a director at Morgan Stanley, now as managing director and chairman of SG Barr Devlin (SGBD), a unit of Société Générale (SG). But when Barr sat down to speak with Wharton's Michael Useem, director of the school's Center for Leadership and Change Management, the topic was risk but the context was poetry -- particularly about the way that art can influence business.

Clash of the Titans: When Top Executives Don't Get Along with the Team

Wed, 12 Jan 2005 15:15:21 EST

Testifying in a Delaware court last month, Stanley P. Gold, a former Walt Disney Co. director, joined a long list of company executives who had dirty laundry to air regarding the 1995 hiring of Michael Ovitz as Disney's president and his subsequent firing in 1996. "This was two big volatile egos banging against each other and they just didn't get along," Gold testified, referring to Eisner and Ovitz. While the Eisner/Ovitz scenario presents an extreme case of management dysfunction, it contains all the elements of what companies seeking to build successful management teams should avoid, say Wharton professors and executive coaches.

The IBM/Lenovo Deal: Victory For China?

Fri, 14 Jan 2005 14:58:37 EST

With the sale of IBM's personal computer business to Chinese company Lenovo Group Limited, two emerging trends quickly move front and center: The increasing commoditization of technology and the emergence of Chinese companies as global players. Wharton professors say both trends warrant watching and raise some key questions. Can Lenovo become a global player and integrate IBM's U.S. managers? Will IBM's PC customers defect to rivals like Dell Computer? Can state-owned Chinese companies become dominant in the international markets? Professors from Wharton and Universities in China, as well as Wall Street analysts, offer their opinions.

Off With the Gloves: The Hardball Approach to Business

Wed, 15 Dec 2004 15:34:52 EST

When George Stalk talks about hardball, he's not referring to baseball or, indeed, any other game. The author of a previous book titled, Competing Against Time, Stalk recently co-wrote, Hardball: Are You Playing to Play or Playing to Win? with Rob Lachenauer, CEO of GEO₂Technologies, a car-engine technology firm. The book argues that hardball is a way of doing business that aims at sweeping aside rivals and leaves them sitting on their rear, wondering just what hit them. Wharton's Michael Useem, director of the school's Center for Leadership and Change Management, recently spoke with Stalk, a senior vice president in The Boston Consulting Group's Toronto office, about why companies that play the toughest often deliver the most value to their shareholders.

The Next Four Years with George Bush

Wed, 17 Nov 2004 17:06:33 EST

President George W. Bush's re-election lifts a degree of uncertainty from business and the economy that could drive market rallies and stimulate growth. Eventually, however, a second Bush term that continues to fund tax cuts along with wars in Iraq and Afghanistan could ultimately weigh down the U.S. economy, according to Wharton faculty.

Death of a Drug: The Aftermath of Merck's Recall

Wed, 20 Oct 2004 15:40:04 EST

Wharton management professor Michael Useem, director of the school's Center for Leadership and Change Management, notes that one of the key mantras in corporate crisis management is: "Hide nothing, tell all." Less than a week after Merck & Co.'s voluntary withdrawal of its blockbuster arthritis pain medication Vioxx, following an extended clinical trial that linked the drug to heart attacks and strokes, the jury is still out on whether the pharmaceutical giant followed this cardinal rule. Wharton professors debate Merck's response to the crisis and the impact of the recall.

Lenovo Chairman Liu Chuanzhi: "We Have Decided to Refocus on PCs"

Wed, 08 Sep 2004 14:39:32 EST

Lenovo Group - or Legend Group, as it used to be called - has long been regarded as one of China's best-known business success stories. As strong economic growth in the past two decades spurred demand for computers in China, the company grew into the country's (and Asia's) largest PC maker. Lately, though, Lenovo Group has stumbled a little as domestic market share has declined and efforts at diversification have failed to pay off. Lenovo's chairman Liu Chuanzhi recently spoke to Wharton's Michael Useem and other experts about the company's challenges, past experiences and future plans.

Enron's Ken Lay: Captain of a Modern-day Titanic?

Wed, 28 Jul 2004 13:34:07 EST

On July 8, federal prosecutors in Houston made public an indictment against former Enron CEO Kenneth Lay, charging him and another Enron executive with conspiring to deceive shareholders, regulators and the public. Lay’s arrest surprised no one, but opinions differ as to why it took the government so long to make its case, what the odds are that Lay will get off, and whether it was smart for him to hold a news conference and appear on Larry King Live days after being led away in handcuffs.

Splitting Up the Roles of CEO and Chairman: Reform or Red Herring?

Wed, 02 Jun 2004 12:53:06 EST

There may be good reasons, based on specific circumstances, for companies to divide the roles of CEO and chairperson between two people. But Wharton faculty members say there is no evidence that separating these positions, as a general philosophical rule, improves corporate performance. And indeed, while figures show that many companies are dividing the jobs of CEO and chairperson, the trend is not widespread. Yet Wharton faculty also note the benefits of separating the two positions, especially in companies that are plagued by scandal or struggling to compete.

From Writing to Leading: How John A. Byrne Is Remaking Fast Company

Wed, 05 May 2004 13:10:03 EST

Former BusinessWeek journalist John A. Byrne was a veteran writer about business management and leadership when he was tapped to become editor-in-chief of Fast Company magazine last year. Launched with high hopes -- and with much initial success -- during the Internet boom, the magazine faced declining advertising and newsstand sales after the dotcom bubble burst. For the past year, Byrne has had to worry about the success of an enterprise, not just a tight deadline for a cover story. In an interview, he explains how he plans to turn the publication around.

Capturing the Spirit of Opportunity: Leadership Lessons from the Mars Missions

Wed, 24 Mar 2004 16:24:15 EST

Ever since two rovers -- Spirit and Opportunity -- began to beam back streams of data from Mars in January, answers have begun to appear to questions that have baffled people for centuries. Sending robots to explore another world might sound like stuff out of Star Trek, but it is part of regular job decriptions at NASA's Jet Propulsion Lab in California. Its director, Charles Elachi, recently spoke with Wharton professor Michael Useem about the challenges of leadership and teamwork involved in sending missions to outer space, and the lessons they have for companies on earth.

Comcast vs. Disney: Facts and Fantasia

Wed, 10 Mar 2004 16:03:37 EST

For Brian Roberts, CEO of cable giant Comcast, the problem may boil down to this: What do you do with the Magic Kingdom? Two weeks ago, Roberts made a $49 billion bid for the embattled Walt Disney Co. Disney's board rejected the offer, but no one expects Roberts' effort to end there. Chances are, he will bid again. Whether he should is another matter. Will buying Disney give Comcast much-needed leverage as it negotiates with competitors such as Rupert Murdoch's News Corp.?

Unusual Turbulence: Lewis Platt on Navigating Boeing through a Leadership Challenge

Wed, 25 Feb 2004 15:03:40 EST

Boeing faced a leadership crisis in December 2003 when Phil Condit, the CEO, stepped down after an ethics scandal involving the company's CFO and a former Pentagon official. These problems surfaced at a time when the airline manufacturer was already under severe competitive pressure from Europe's Airbus. Boeing's non-executive chairman, Lewis Platt, spoke to Wharton's Michael Useem about how he and present CEO Harry Stonecipher are trying to ensure that Boeing's steep nose dive doesn't turn into a crash landing.

Get Me Rewrite: How the BBC Mishandled Its Own Crisis

Wed, 25 Feb 2004 15:03:40 EST

The chairman and the top executive are gone, having resigned to deflect criticism from the organization and take responsibility for its mistakes. A high-profile staffer has left and a 740-page report by a senior judge has detailed a raft of errors. The British Broadcasting Corporation is embroiled in the biggest management crisis in its 80-year history. Experts are divided over whether the controversy will do long-term harm to the BBC’s reputation, but they agree that the broadcaster, like companies lately facing ethical crises in the United States, could have limited the damage by better handling the early stages.

Becoming the Best: What You Can Learn from the 25 Most Influential Leaders of Our Times

Wed, 11 Feb 2004 15:44:09 EST

To celebrate the 25th anniversary of Nightly Business Report, the most watched daily business program on

U.S.

television, Wharton and NBR this month announced their list of the 25 most influential business leaders of the past 25 years. Andy Grove, co-founder of Intel, won the No. 1 position, but the list also included Bill Gates, Warren Buffett, John Bogle, Jeff Bezos, Jack Welch and Oprah Winfrey, among others. Can these leaders' attributes help you become a better business leader in your own organization?

Why Everyone in an Enterprise Can -- and Should -- Be a Leader

Tue, 23 Dec 2003 13:17:03 EST

Leadership doesn't just start at the top. Leaders can also be found at the bottom of an organization and at just about every place in between. In this special report by Knowledge@Wharton and The McKinsey Quarterly, the management journal of consulting firm McKinsey & Co., experts from McKinsey and Wharton point out that regardless of whether people are on the top line or the front line, they should explore ways to exercise their leadership potential to the fullest. That is the only way in which they can create meaningful working lives for themselves and the organization can get the most from their efforts.

A Lofty Take on Leadership: Mountain Climbing and Managing Companies

Wed, 24 Sep 2003 00:00:00 EST

Wharton management professor Michael Useem and the business people who accompany him on Himalayan treks use the mountains to gain insights about leadership. In Useem�s new book, entitled �Upward Bound: Nine Original Accounts of How Business Leaders Reached Their Summits,� Useem and two co-editors have collected stories written by executives who relate their experiences as climbers to the challenges and hazards of managing companies. In choosing to fund a dormitory for secondary-school students in the village of Khumjung, Nepal, Useem and some fellow trekkers also show that part of being a leader means giving something back to the people who have helped you along the way.

How to Restore Credibility at the NYSE

Wed, 24 Sep 2003 00:00:00 EST

New York Stock Exchange chairman Richard A. Grasso�s controversial $140 million pay package was a flash point that illuminated other issues at the Big Board and could trigger major change, including the possibility of the exchange itself going public. Conflict between the NYSE�s role as a regulator and trading exchange, flaws in the structure of its board, and concerns about whether its specialist-based trading system is fair to investors -- all these issues must be addressed before the 211-year-old exchange can regain its credibility, say Wharton faculty and other experts.

Another Reorganization? What to Expect, What to Avoid

Wed, 02 Jul 2003 00:00:00 EST

It�s a familiar scenario: A company brings in a new department head who immediately decides that the way to show leadership is to reorganize. Then a new division head comes on board, or a new CEO, and there are more reorganizations, sometimes several in one month. Yet according to Wharton management professor Peter Cappelli, frequent reorganizations �are like doctors treating patients with antibiotics.� The medication might work short-term, but �long-term it can be harmful.� Knowledge@Wharton looks at why some reorganizations succeed and others fail.

Re-Examining the Role of the Chairman of the Board

Wed, 18 Dec 2002 00:00:00 EST

As the debate continues over what constitutes good corporate governance, one suggestion has proved particularly intriguing � that the positions of chairman and chief executive officer be held by different people. The idea has both defenders and detractors, but everyone agrees that new checks and balances are necessary to prevent the types of abuses that have allowed some senior executives to virtually bankrupt their companies.

Corporate Reform Proposals: On the Money or Off-base?

Wed, 17 Jul 2002 00:00:00 EST

Republicans and Democrats are stumbling over each other to show who can be toughest with corporate wrongdoers. The House and Senate have passed competing legislation calling for everything from longer jail terms and statutes of limitations to new accounting rules and oversight boards. Is this the right approach or are different tactics required? Knowledge@Wharton asked five faculty for their opinions.

Corporate Reform Proposals: On the Money Or Off-base?

Wed, 03 Jul 2002 00:00:00 EST

What Happens to the Inner Circle of the Ousted CEO?

Wed, 19 Jun 2002 00:00:00 EST

When Dennis Kozlowski resigned on June 3 as chief executive of Tyco International � shortly before he would have been removed by the board � it raised questions about the future of top executives around him. Assuming they supported, or at least knew about, the strategies of their former boss, should they be ousted as well, or would the loss of institutional knowledge and expertise be too disruptive to the company? Wharton faculty offer their opinions.

Learning from Tyco�s Meltdown

Wed, 05 Jun 2002 00:00:00 EST

L. Dennis Kozlowski, who stepped down this week as the CEO of Tyco International, has been indicted in New York for evading sales tax on his art purchases. This development comes at a time when the $36 billion conglomerate � which has lost more than $80 billion in market value this year � already faces a shaky future. Experts at Wharton point out that Tyco�s predicament offers lessons about the need for better corporate governance as well as the weakness of conglomeration as a growth strategy.

As CEOs Fall Off Their Pedestals, Is a Leadership Crisis Looming?

Wed, 22 May 2002 00:00:00 EST

GE's Jack Welch, WorldCom's Bernie Ebbers, Enron's Kenneth Lay and Jeffrey Skilling, ABB�s Percy Barnevik. In recent months, the reputations of these once-soaring corporate captains have crashed to earth. Does their fall, along with the demise of other prominent CEOs, constitute a new crisis in business leadership? Speakers at an upcoming June 5 leadership conference at Wharton offer their opinions.

Enron�s Kenneth Lay: The Last Road Not Taken

Wed, 10 Apr 2002 00:00:00 EST

On August 22, 2001, Enron vice president Sherron Watkins visited chief executive Kenneth Lay in his Houston headquarters and warned him that the company could �implode in a wave of accounting scandals.� At that moment, says Michael Useem, director of Wharton�s Center for Leadership and Change Management, Lay could have taken specific action that would have prevented bankruptcy and saved the jobs of thousands of Enron employees. Useem compares Lay�s choices with those facing Salomon chief executive John Gutfreund a decade earlier.

eBay: Last Man Standing

Wed, 27 Mar 2002 00:00:00 EST

The eBay juggernaut rolls on. Few would have thought that the website created in 1995 by Pierre Omidyar to sell Pez dispensers and other collectibles would by 2002 be one of the few remaining companies that continue to demonstrate the potential of e-commerce. So strong is eBay�s growth, say some observers, that the only force capable of stopping eBay is eBay itself. Is that likely?

Expedition to Ecuador: Leadership and Teamwork at 19,000 Ft.

Wed, 27 Mar 2002 00:00:00 EST

Jamie Hammond, a marketing director for Knowledge@Wharton, joined 13 others on a week-long trip to Ecuador as part of Wharton Leadership Ventures, a program designed to help participants develop leadership skills while climbing some of the highest and most beautiful mountains in the world. The trip, organized by Michael Useem, director of Wharton�s Center for Leadership and Change Management, included two professional hikers and nine Wharton MBA students, among them Jamie�s wife Teresa. Knowledge@Wharton features excerpts of a journal that Hammond kept during the trip, interspersed with comments from Useem on lessons about leadership and teamwork -- and their application in the business world.

Showdown in Silicon Valley: Will Fiorina or Hewlett Win the Battle for H-P Shareholders� Votes?

Wed, 13 Mar 2002 00:00:00 EST

When Hewlett-Packard shareholders vote March 19 whether or not to approve the merger of H-P and Compaq Computer, it will bring to an end one of the nastiest, noisiest and most expensive proxy fights in recent history. Whether H-P CEO Carly Fiorina wins approval for the merger, or whether dissident board member Walter Hewlett rallies enough votes to derail it, the challenges for H-P are just beginning.

Enron�s Board Gives Black Eye to Efforts Aimed at Improving Corporate Governance

Wed, 13 Feb 2002 00:00:00 EST

The spectacular failure of the Enron board to question company management about activities that could, and did, harm the company, will have an impact on more than just the shareholders, employees and creditors, say several Wharton faculty members and a former CEO. Such behavior casts a pall on efforts by other American firms to establish boards that are independent, assertive and willing to ask the tough questions.

The New Business Reality

Wed, 30 Jan 2002 00:00:00 EST

ideas about what effect those events would have on business and the economy. It was clear, however, that even before the attacks, major changes were underway that would alter the business landscape. To help understand these changes, Wharton�s Aresty Institute of Executive Education held a three-day symposium in December called Wharton on the New Business Reality: Scenarios and Strategies for the Future. Knowledge@Wharton covered the symposium.

What It Takes: Leadership From Below

Wed, 05 Dec 2001 00:00:00 EST

In politics as in business, leadership isn�t a solo performance. The top gun must depend on those just below, as well as on a raft of managers leading the groups and divisions that constitute the whole. And those individuals must be strong leaders in their own right, able to make effective decisions and think strategically, says Michael Useem, director of Wharton�s Center for Leadership and Change Management. In a new book titled, �Leading Up: The Art of Managing Your Boss So You Both Win,� Useem argues that being No. 2 doesn�t mean playing second fiddle.

AT&T: Expect More Static in the Months to Come

Wed, 07 Nov 2001 00:00:00 EST

Once viewed as a model of stability, AT&T these days seems more like a dysfunctional family struggling to retain its preeminence in an uncertain economy. Wharton faculty and Wall Street analysts look at the factors � both external and internal � that have plagued the company over the last several years even as the troubled telecom industry itself faces increasing consolidation.

There�s Just One Word for Jack Welch�

Thu, 13 Sep 2001 00:00:00 EST

Jack Welch�s official retirement from General Electric on Sept. 7 caused an avalanche of news coverage, much of it attempting to analyze exactly what it was that made Welch such an effective leader. Wharton faculty size Welch up as they review the past two decades at GE.

CEO Encores: When Leaders Return to Bail Out Their Companies

Wed, 15 Aug 2001 00:00:00 EST

Steve Jobs, Paul Allaire, Henry Schacht, Lawrence Bossidy, Kenneth Lay and Ted Waitt all, for one reason or another, left the top jobs at their companies only to return later when the companies ran into difficult times. Does it work to bring back former CEOs in such circumstances? What are the risks? And what does it say about the companies� boards?

When Leaders Return to Bail Out Their Companies

Wed, 15 Aug 2001 00:00:00 EST

Steve Jobs, Paul Allaire, Henry Schacht, Ted Waitt and Lawrence Bossidy all, for one reason or another, left the top jobs at their companies only to return later when the companies ran into difficult times. Does it work to bring back former CEOs in such circumstances? What are the risks? And what does it say about the board?

Lessons from the GE-Honeywell Non-Merger

Wed, 04 Jul 2001 00:00:00 EST

It looked like a marriage made in heaven when General Electric announced plans last year to acquire Honeywell International. Both companies were blissful when the antitrust division of the U.S. Justice Department gave its blessing to what would have been the largest industrial merger ever. But following a veto by the European Commission on July 3-an act that was spearheaded by the European Union competition commissioner Mario Monti-wedding bells will not ring out after all. What lessons can be learned from the failed deal?

Preparing for Business Battles? Learn Some Lessons from the Marines

Wed, 06 Jun 2001 00:00:00 EST

Leadership that can stand up under fire is valuable in both corporate and military combat. As part of its mission to develop such leadership skills, Wharton�s Center for Leadership and Change Management recently took a group of students to the U.S. Marine Corps Officer Candidate School in Quantico, Va. Michael Useem, the center�s director, believes such exercises provide valuable lessons in thinking strategically and acting decisively. Two MBA students who went through the drill offer a report from the trenches.

Leading Up: The Art of Managing Your Boss

Wed, 25 Apr 2001 00:00:00 EST

True or false: Leaders have followers, but not all followers are subordinates. Quite true, says Michael Useem, director of Wharton�s Center for Leadership and Change Management. Indeed, if managers wish to be effective, they must learn how to lead the people they report to as well as the employees they oversee. Useem calls this process �leading up� and it is the subject of his upcoming book.

When Shareholder Groups Complain, Management Would Do Well to Listen

Wed, 28 Mar 2001 00:00:00 EST

With the annual-meeting season getting underway, corporate executives can once again expect to be publicly targeted by shareholder groups unhappy over recent stock returns. Just how effective are shareholder activists and how constant is the pressure they exert on non-performing managers?

Wharton Faculty Wish-list for George W. Bush

Wed, 17 Jan 2001 15:21:20 EST

There is little doubt that President-elect George W. Bush will have to hit the ground running once he is sworn into office on Jan. 20. A convergence of factors � ranging from leftover election rancor to a divided Congress to a newly sluggish economy - means Bush will have an unusually short honeymoon. Knowledge@Wharton asked Wharton faculty members to identify the most important issues � related to their own fields of expertise � that the new administration should address.

Has DaimlerChrysler Hit the Breakdown Lane or Just Stopped to Fill Up?

Wed, 20 Dec 2000 17:40:31 EST

Two years ago, the merger � or was it an acquisition � of Daimler-Benz and Chrysler made eminent sense in an industry that was experiencing worldwide consolidation. Today, DaimlerChrysler�s capitalization is about half what it was two years ago, it has been sued by shareholders, its debt has been downgraded, its leadership is depleted and auto sales in general are in the midst of a slump. Talk about a turnaround challenge.

Jack Welch�s Postponed Retirement: Ego or Leadership?

Wed, 22 Nov 2000 14:28:13 EST

Did Jack Welch make the right decision when he announced that he would postpone his retirement as head of GE in order to oversee the Honeywell acquisition? Is the postponement a slap in the face to his successor, an unwillingness on Welch�s part to let go, a sign of trouble ahead in efforts to combine these two enormous companies? None of the above, according to management professors at Wharton.

Vive Investor Capitalism

Wed, 05 Jul 2000 14:32:20 EST

Vivendi, a French water utility, announced on June 20 that it plans to acquire Seagram, an entertainment and spirits company, in a deal valued at $34 billion. While investors reacted nervously�the stocks of both companies fell after the Tuesday announcement�the merger is expected to create the world�s second largest media company after America Online-Time Warner�a behemoth called Vivendi Universal with $55 billion in combined revenues. Jean-Marie Messier, Vivendi's CEO, will head the new company, and Seagram CEO Edgar Bronfman Jr. will be vice chairman in charge of music and Internet activities. For Michael Useem, director of Wharton�s Center for Leadership and Change Management, the deal signifies the decline of family capitalism and the ongoing rise of investor capitalism. He discussed his views with Knowledge@Wharton.

What Does it Take to Lead an E-Commerce Venture?

Wed, 07 Jun 2000 15:48:08 EST

Leaders of Internet companies or e-commerce ventures in traditional companies often feel like they are driving a Ferrari with a cinderblock on the accelerator. Trying to lead fast-growing organizations in volatile, uncertain markets poses a significant leadership challenge�and requires executives with unusual�even paradoxical�qualities. Example: Such leaders must be highly confident and self-assertive while also being open and flexible enough to be team-builders. What other skills do leaders of e-commerce ventures need? What kind of culture should they build for their organizations? A session at a recent meeting of the Wharton Forum on Electronic Commerce addressed these issues.

�It is Absolutely Critical in a Merger to Quickly Establish Unambiguous Lines of Responsibility�

Wed, 29 Mar 2000 15:05:19 EST

Deutsche Bank is merging its way to growth. Headquartered in Frankfurt, it has 90,000 employees and nearly 7 million customers in more than 60 nations. On March 9 the bank announced a $30 billion merger agreement with Dresdner Bank; the two companies are scheduled to merge before the end of the year. This deal follows its acquisition last year of Bankers Trust for $10.1 billion. This makes Deutsche Bank one of the world�s largest financial institutions. What challenges do organizations face as they try to make such mega-mergers work? What is involved in managing organizations across cultural boundaries? Michael Useem, director of the Wharton School�s Center for Leadership and Change Management, discussed these questions with John Ross, president and CEO of Deutsche Bank�s American operations.

Does a Best Model Exist for Corporate Governance?

Wed, 29 Sep 1999 14:41:03 EST

In their contribution to the forthcoming book Handbook of Strategy and Management, Gerald Davis, professor of organizational behavior and human resource management at the University of Michigan, and Michael Useem, professor of management and director of the Center for Leadership and Change Management at the Wharton School, observe that a few thousand corporations produce the bulk of the world�s economic output and employ a significant part of the world�s labor force. This then leads them to ask the question, given that large corporations have such a profound impact on the economic well-being of society, is there a best model for corporate governance? If there is such a model, they then ask, can it be easily replicated in other societies and cultures?

Leadership in the Age of Investor Capitalism

Wed, 23 Jun 1999 08:00:00 EST

Sophisticated institutional investors look past national boundaries in their search for better returns. In response, firms have restructured their operations to enhance shareholder return, redefining in the process management relations with foreign shareholders. As a result of these changes, companies have had to master new leadership skills for operating in an environment increasingly defined by a relatively small number of large global stockholders. As Wharton's Michael Useem explains, executives throughout the world are learning that among their most important tasks is the delivery of a compelling strategy story for share value growth to analysts and money managers worldwide.

Lessons That Leadership Moments Teach

Sat, 27 Mar 1999 05:02:41 EST

What makes a leader? Wharton�s Michael Useem answers that question through a series of glimpses of leaders in action in his book �The Leadership Moment: Nine True Stories and Their Lessons for Us All.� An interview with the author.