I have created a number blogs to publish useful information. One is a Teaching Blog dedicated to providing past, present and future students useful information. I have also created a blog for the Courses I am teaching.
My Research Blog is dedicated to disseminating useful information to other researchers and scholars.
There is also a blog that has collected all of Charles Tilly’s Writings on Methodology.
Below you find every entry across all my Blogs.
The Economist reports an amazing on an amazing turnaround of Honeywell. It appears to be a great example of strategy implementation.
Honeywell likes its meetings short but plentiful. Every production cell, as the smallest shop-floor unit is called, starts the day with one. The aim is to try to identify problems and ideas for improvements, which are then pushed up to senior managers. Even the lowliest worker is expected each month to come up with two implementable ideas for doing things better. As an illustration of the firm’s devotion to “continuous improvement”, this is one of the pillars of what has become known as the “Honeywell operating system” (HOS).
This new production system, introduced over the past eight years, has helped transform Honeywell from a troubled giant to one of America’s most successful companies. Honeywell’s sales in 2011 were 72% higher than in 2002, and its profits doubled to $4 billion. A new emphasis on generating cash also means the firm has more money in the bank for every dollar declared in profit.
Full Story at Economist.com
Apple did not join the settlement of the lawsuit. This is a major win for Amazon. It will be fascinating to watch how the suit will unfold.
The New York Times reports on this amazing reversal of fortunes.
Microsoft’s weak position in mobile apps is in stark contrast to the clout it had with developers in the heyday of the PC era. Its success with Windows was partly built on an all-out effort it made in the 1980s and ’90s to get independent software companies to make Windows the primary operating system for which they wrote applications.That influence began to weaken somewhat when the Web era took off and more companies began to design services and products that ran through browsers. But it has accelerated further as much of the creative talent in the developer world has shifted toward smartphone and iPad applications. Sarah Rotman Epps, an analyst at Forrester Research, said Microsoft’s relative weakness was a function of not having a big enough audience of users. “Developers go where the money is, and the money is where people are,” she said.
Full Article at NY Times
Wharton professors explain why Apple integrated model of designing both hardware and software may not work for other companies. Knowledge@Wharton reports:
Google recently acquired mobile device maker Motorola Mobility and will soon manufacture smartphones and television set-top boxes. Amazon’s Kindle Fire tablet represents its bridge between hardware and e-commerce. Oracle bought Sun Microsystems and now champions engineered systems (integrated hardware and software devices). And even long-standing software giant Microsoft now makes hardware for its Xbox gaming system. Technology titans are increasingly looking like vertically integrated conglomerates largely in an attempt to emulate the success of Apple.Vertical integration dictates that one company controls the end product as well as its component parts. In technology, Apple for 35 years has championed a vertical model, which features an integrated hardware and software approach. For instance, the iPhone and iPad have hardware and software designed by Apple, which also designed its own processors for the devices. This integration has allowed Apple to set the pace for mobile computing. “Despite the benefits of specialization, it can make sense to have everything under one roof,” says Wharton management professor David Hsu.
A pilot on a JetBlue flight had a complete mental meltdown. The co-pilot had to lock him out the cockpit and passengers had wrestle him down and constraint him with their belts. If you are the CEO, what you want to know know is whether this was an isolated incident (which can always happen) or whether your HR systems are not properly design. For this reason it makes sense that the CEO ordered a review. Read full story here.
Andy Henderson and his coauthors have done us a great service. They are analyzed last decades to find a list of firms whose superior performance cannot be explained by randomness.
Although sustained superior firm performance may arise from skillful management or other valuable, rare, and inimitable resources, it can also result from randomness. Studying U.S. companies from 1965–2008, we benchmark how long a firm must perform at a high level to be confident that it is something other than the outcome of a time-homogeneous stationary Markov chain defined on the state space of percentiles. We find (a) the number of sustained superior performers in Compustat, measured by ROA and Tobin’s q, exceeds the number of false positives we would expect to be generated by such a process; yet (b) the occurrence of false positives is often enough to fool many observers, so (c) the identification of sustained superior performers requires particularly stringent benchmarks to enable valid study.
Read Full Article
Click on More to see the list of firms.
Neal Pancholi drew my attention to this interesting letter by Bill Gates. It shows that Gates in 1985 was sill open to making his fortune my selling Mac software rather than dominating the next generation OS.
To: John Sculley, Jean Louis Gassée
From: Bill Gates, Jeff Raikes
Date: June 25, 1985
Re: Apple Licensing of Mac Technology
cc: Jon Shirley
Apple’s stated position in personal computers is innovative technology leader. This position implies that Apple must create a standard on new, advanced technology. They must establish a “revolutionary” architecture, which necessarily implies new development incompatible with existing architectures.
Apple must make Macintosh a standard. But no personal computer company, not even IBM, can create a standard without independent support. Even though Apple realized this, they have not been able to gain the independent support required to be perceived as a standard.
As the rate of innovation increases, organizational environments are becoming faster and more complex, posing greater challenges for organizations to adapt. This study argues that the concept of coevolution offers a bridge between the prescient adaptationist and ex post selectionist perspectives of organizational change to account for the increasing rates of change. The mutual causal influences in a coevolutionary relationship help explain why competing sets of firms or individual firms can capture dominant shares in product markets. Using a comparative historical method and drawing on evidence from five countries over a 60-year period, this paper inquires how precisely coevolutionary processes work in shaping the evolution of industries and important features of their environments. It identifies—in the context of the synthetic dye industry—three causal mechanisms (exchange of personnel, commercial ties, and lobbying) and suggests how they acted as levers on the fundamental mechanisms of evolution. Understanding the levers is important for managing change in a world that is increasingly becoming coevolutionary, requiring managers to focus more on the emergent, system-level properties of their environments. Download Article.
On Tuesday, Apple CEO Tim Cook spoke at the Goldman Sachs Technology and Internet Conference, where he was interviewed on stage by Bill Shope, Goldman Sachs’s IT hardware analyst. Here’s an edited transcript of what Cook had to say on a variety of topics, ranging from working conditions at Apple’s Chinese suppliers to Apple’s culture and ethos. Transcript
Scholars have emphasized the gradual ownership transformation of enterprises as a key driver of the Chinese economy’s unprecedented growth. However, little work has been done on the issue of whether this transformation process takes place evenly across the various regions in China. This article describes the important role of regional institutions in shaping the ownership-based competitiveness of local enterprises and the migration of industries across regions. In the case of the Chinese synthetic dye industry, the passing of leadership from state-owned enterprises (SOEs) to collectively owned enterprises (COEs) and then to private enterprises (PEs) was accompanied by a concurrent leadership migration from one region to another. The article contends that this simultaneous occurrence was not accidental. Four institutional constraints—the degree of central supervision, the local labor arrangements, the local social welfare provision, and the degree of ambiguity in property rights—retarded the rise of new ownership forms in the previously dominant regions. This gave other regions the opening to take over leadership positions by providing a more favorable institutional context for new ownership forms. These findings are likely to apply to all of the Chinese manufacturing industries that existed prior to 1978 and that subsequently did not experience significant technological changes and were not highly protected by the government. Download Article
John John Baldoni writes on CBS.com.
Enter Sergio Marchionne. With Fiat was on the brink of solvency in 2004, Marchionne was named CEO and completely revamped the enterprise. He would later do the same at Chrysler. As Clark writes: “Marchionne’s unusual ability is that he can see what actually needs to be done, and then cajoles and goads his flat management structure of dozens of direct reports in weekend meetings to achieve the goal.” “Marchionne doesn’t let go,” A UBS analyst adds. “That’s what his strength is. He is good at strategy and at execution.” Under Marchionne, both Fiat and Chrysler have turned the corner (at least for now).
The balance between vision and execution is akin to right- and left-brain thinking. A visionary thinks about what can happen. He or she has a highly specific vision of the future—and not simply as a set of desired outcomes, but rather in terms of what must occur to produce those outcomes. By contrast, executing the vision requires putting the right people in place and providing them with the necessary resources to succeed. It also means holding people’s feet to the fire. Marchionne is known for firing people who aren’t up to the task. It’s never pleasant, but it is imperative.
Read Full Article on CBSnews.com
When Facebook goes public Sheryl Sanberg will be a very wealth women. She wants to serve as a role model for other women in business and is actively trying to help them. Here is how she facilitates networking.
If Silicon Valley men bond in venture capital conference rooms or on weekend bike trips, Ms. Sandberg has been building an alternate networking group of Silicon Valley women. For about seven years, since she was a Google executive, she has held catered monthly dinner parties at her home for a group of several dozen women. Guest speakers have included the feminist and author Gloria Steinem; Steve Ballmer, the C.E.O. of Microsoft; and Mayor Michael R. Bloomberg of New York, according to three people who have attended the dinners but spoke on condition that they not be identified out of respect for Ms. Sandberg’s privacy. Ms. Sandberg recently invited Senator Claire McCaskill of Missouri to attend as a speaker. “I expected to see a lot of women in St. John suits and expensive purses and was pleasantly surprised when it was anything but that,” Senator McCaskill said. “Women had been included that were in the infancy of their careers, her kids were running around, it was very low key. It was clear that she’s the kind of role model that young women are looking for, especially in the tech sector.”
Source: NY Times
There is also an excellent long profile of Sandberg in the New Yorker (2011). A Woman’s Place-Can Sheryl Sandberg upend Silicon Valley’s male-dominated culture?