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  • 1. strategy+business Pankaj Ghemawat: The Thought Leader Interview from strategy+business issue 50, Spring 2008 reprint number 08110 For further information: editors@strategy-business.com Booz & Company Reprint
  • 2. I Pankaj Ghemawat: The Thought Leader Interview by Art Kleiner The seer of “semiglobalization” argues for appreciating regional distinctions. f you are a corporate decision maker, the clearest and simplest strategy is often remarkably appealing. Like Alexander the Great at the Gordian knot, you need only apply the right analysis, and ambiguous prob- lems will swiftly cleave, the solution falling at your feet. When the problem is “globalization” — or, in business, how best to enter emerging markets — the most pop- ular simple solution is summed up by the title of the bestseller by New 1 York Times columnist Thomas L. Friedman: The World Is Flat. In the flat-world view, technology and international economic interchange have evolved to the point where Photograph by John Madere sovereign boundaries hardly matter; people travel and invest more freely conversation thought leader and widely than ever before; the number of potential customers is virtually infinite; and entrepreneurs can easily expand everywhere. Therefore, companies must avoid obsolescence by moving everywhere as rapidly as possible. But the simplest solution is not always the most effective. So says Pankaj Ghemawat, the most promi- nent flat-world skeptic in business circles today. Ghemawat is the Anselmo Rubiralta Professor of
  • 3. Art Kleiner (kleiner_art@ strategy-business.com) is editor-in-chief of strategy+ business and author of Who (Doubleday, 2003). Really Matters: The Core Group Theory of Power, Privilege, and Success Global Strategy at the IESE Busi- neighbors cannot be ignored. For Ghemawat remained to get a Ph.D. ness School at the University of example, Canada and the United in business economics, became a Navarra in Barcelona, the Jaime and States share a 3,000-mile peaceful protégé of strategy theorist Michael S+B: You start your book by staking Josefina Chua Tiampo Professor of border, a common language (in Porter and negotiation pioneer Business Administration at Harvard many places), and a comprehensive Roger Fisher, and in 1991, at age a claim that, contrary to Thomas Business School, and the author of free trade agreement. But the 31, became the youngest academic Friedman’s assertions, the world is four books on corporate strategy. amount of commerce within their ever to be appointed a full professor not flat. Why is that distinction His most recent book is Redefining own national borders dwarfs the at Harvard Business School. He important? GHEMAWAT: Let’s start with the Global Strategy: Crossing Borders in trade between the two countries by spoke with strategy+business in a World Where Differences Still a factor of at least five to one. Not August 2007, during a break in the Matter (Harvard Business School that a 20 percent rate of economic annual meeting of the Academy of Press, 2007). In this intricately interchange should be sneezed at; Management in Philadelphia. In reasoned inquiry, grounded in indeed, Ghemawat himself argues person, Pankaj Ghemawat is a bit economic research as well as in that a well-designed policy for inter- of a boundary crosser himself, com- 2 interviews with CEOs and other national expansion can make all the bining academic formality, prag- strategists, he explores the successes difference to a company or a nation. matic business sense, and a habit of and failures of international forays But this policy must be constructed wide-eyed inquiry in the face of made by such companies as Coca- with attention to one’s own strategic other people’s assumptions. “I imag- Cola, Wal-Mart, the PepsiCo spin- capabilities, the time it takes to ine him, like Galileo Galilei before off Yum Brands, Cemex, Whirlpool, expand organically, the culture and the inquisition,” wrote Nikos Jinro (a Korean purveyor of popular limits of the home country, and the Mourkogiannis in the foreword to conversation thought leader alcoholic spirits in Asia), L’Oreal, particular requirements of the cus- Redefining Global Strategy, “unable Asea Brown Boveri, Cognizant, and tomers and industry. In other to keep from saying, ‘But it does IBM. (The book is also reviewed words, in-depth knowledge and move around the sun!’” in “Books in Brief,” by David K. solid business judgment make as Hurst, s+b, Spring 2008.) Ghe- much difference with a global strat- mawat’s conclusion: The world is in egy as they do with any other kind. a state of only “semiglobalization.” Ghemawat, the son of a bot- A multinational expanding beyond anist, spent part of his early life in a strategy + business issue 50 its home country’s borders will find small town in India and part in a success only when it recognizes and small town in Indiana (near Purdue manages the critical differences University, where his father earned business implications. I think be- among countries. his Ph.D.). After entering Harvard lieving the world is flat leads to one- Even differences among close as an undergraduate in the 1970s, size-fits-all strategies. This may be
  • 4. Cagey Strategists S+B: In Redefining Global Strategy, you write that natural barriers will keep most industries from achieving anything close to perfect integration. S+B: What do you say to the politi- Do you mean primarily economic cian or citizen who takes the golden and structural barriers, or are you straitjacket message seriously? talking about culture as well? GHEMAWAT: We’ve seen global GHEMAWAT: I’m referring to a faith in what Thomas Friedman make some decisions centrally, and calls the “golden straitjacket”: the we’ll delegate some to the provinces idea that there’s nothing govern- or the country managers.” But there ment can do to protect the weaker is a much richer menu of strategies sections of society, because the capi- for dealing with differences. tal markets will automatically pun- ish every attempt. This further erodes support for economic inte- gration by leading to alarmist S+B: You’re saying that companies visions about what’s going to hap- pen tomorrow. and communities have ample time and strategic options for adapting to globalization. GHEMAWAT: The press interest in one reason that so many firms are disappointed with the performance competition before. We’ve seen East range of barriers that I identified of their overseas operations. If you’re Asian economies powered by low over years of studying corporate looking for guidance on questions labor costs penetrating world mar- global efforts. I called them like where to compete, the “world is kets — but it literally took them “distances,” because the distance flat” thesis has only one message: decades to do it. And that strikes me between places does matter in setting “The market is almost infinite.” as a much more reasonable time business strategy. There are four There’s no sense of place, no notion frame for some of these processes to basic types of distance: cultural, of distance to help you set priorities. unfold. To frame it as an instant, administrative, geographic, and eco- So businesses go for bigger and nearly universal economic integra- nomic, which form a framework blander strategies. tion is not accurate, and it leads to I’ve named CAGE. But I think there are broader political overreaction: “There is no Many strategists recognize the implications as well. In both the future for my children, so let’s man importance of geographic distance; academic and the political sphere, the barricades against imports and if you’ve ever been involved in trans- 3 problematic consequences result free trade.” porting products, you know that from believing that no differences geography is still significant. And remain between countries. You’re certainly we are all attuned to eco- less likely to believe that there is nomic distance, differences among anything interesting to discover in nations in labor costs, and so on. the rest of the world. Right now, But strategists often don’t expect we’re in a fairly scandalous situation administrative or cultural distances conversation thought leader where only 5 percent of the articles my book has focused on my saying, to have the force they do. published in the top 20 academic “The world is not flat.” But that One powerful example of this management journals have any takes up literally only the first half of bias is StarTV, which was acquired cross-border content. Fewer people the first chapter. The rest of the by Rupert Murdoch’s News Corpo- are conducting research in other book tries to answer the question, ration in the early 1990s. The parts of the world, looking to build “OK, so what do you do about the advent of satellite television had distinctive awareness of other places, world that we live in? How do you destroyed geographic distance as a as opposed to reinforcing plain- cope with this more textured and boundary factor. A broadcaster vanilla, “one-approach-fits-every- complex reality?” no longer needed a TV tower on the country” strategies. If you talk to most business ground; instead, a satellite source, Furthermore, I think that the executives, you hear about one tech- about 23,000 miles above the earth’s notion that borders don’t matter nique, which is balancing centraliza- surface, could cover a hemisphere. very much encourages an excessive tion against decentralization. “We’ll StarTV went ahead with pan-
  • 5. Asian, English-language program- ming, aiming at Asia’s wealthiest 5 S+B: Are the same kinds of differ- percent as its audience. But it ran into problems on all the other kinds ences important for other industries of distance. and sectors? GHEMAWAT: Every company faces Culturally, people prefer to watch TV programs in their own Provincial Sensibility language; this was already estab- lished in research (and in common sense), and that barrier didn’t sud- S+B: But why wouldn’t a company denly evaporate. Nor did the barrier of administrative distance. When considering expansion into emerg- Murdoch gave a speech in 1993 ing markets want to compare the about satellite TV being “an un- prospects of India and China? GHEMAWAT: First, the comparison ambiguous threat to totalitarian regimes everywhere,” the Chinese vide programming in diverse lan- make any global strategy actionable, government reacted by banning the guages. They’ve had to pay attention you have to go down to the industry ownership of satellite dishes — to local political sensitivities, partic- level and think about what kinds which effectively choked StarTV’s ularly in China. And they’ve had to of distances matter the most and business in that key country. apply different business models, about your strategies for addressing How could Murdoch make depending on the level of develop- those distances. such a miscalculation? Well, one of ment of infrastructure in various Note how different this is from his insiders told me, “Our operating Asian countries. a more typical approach of keeping experience was in the U.S., the the analysis purely at a country level. U.K., and Australia. In none of For example, “Are our prospects bet- these climates is it considered a big ter for India or China right now?” deal to rail against authoritarian Country-level, cross-industry analy- regimes. We weren’t thinking. We sis is generally not an adequate way just figured that this was a harmless its own issues. Let’s compare StarTV to formulate actual strategy. 4 little bit of filler.” The company has with Cemex, the Mexican cement been trying ever since to climb out company. Cement is the ultimate of the hole it dug with inattention commodity. Culturally, it is not a to administrative differences. high-touch industry; administra- The final barrier in the CAGE tively, it’s certainly not as politically framework has been economic dis- sensitive as media. But geographic tance, the lack of developed infra- distance is critical. It doesn’t involve conversation thought leader structure in these countries. In the just the physical number of miles U.S., there are already methods for between two countries, but also the depends on where you are looking measuring audiences, which is a ease and openness of transportation. from. China will generally look necessity of advertising. Elsewhere, a Cemex earns a 20 percent premium, closer to a company headquartered satellite TV company must wait for on average, over prices charged by in Taiwan or South Korea, and Nielsen to install people meters. other cement companies, and one India will look closer to a company All this explains why the net reason is the deliberate way Cemex from the Middle East. present cost of StarTV to News expands into countries where it has Second, the relevant measures strategy + business issue 50 Corp. has been a couple of billion shipping access — and often where of closeness depend on the industry dollars. Yes, geographic distance it controls the marine terminals — as in the example of satellite TV doesn’t matter anymore. But the through which cement is shipped. versus cement. other kinds of distance continue to The contrast between satellite Third, although country-level be critical. StarTV has had to pro- TV and cement suggests that to differences are meaningful, other
  • 6. “There are three ways to add value in a world where differences still matter: adaptation, aggregation, and arbitrage.” S+B: What would that strategy con- sist of? GHEMAWAT: It would be a combi- levels of analysis may also be rele- expand only to the markets where machines. But Whirlpool’s financial vant. Both India and China are they can navigate the distances. performance didn’t rise accordingly; S+B: Is that what you mean by diverse in many ways. People speak I should also add that semiglob- in fact, it fell. It turns out that many many languages within them. There alization doesn’t just mean that we factors vary from country to coun- “semiglobalization”? GHEMAWAT: It’s one example. Lev- are tax barriers at provincial borders, are striking a balance between ex- try, and the manufacturer must huge differences in per capita in- treme localization and extreme stan- adapt to them: electrical standards, come, and great geographic dis- dardization. Even that dichotomy tariffs, climate differences, the tances. Some multinationals, like — local versus central — implies a growth rate of new households, Procter & Gamble, have realized single-country view of the world, in typical living space, availability of that you can have a macro strategy which there are two extremes: running water, income levels, and for a whole country like China, applying separate strategies country cultural tastes, among others. but the provincial level is a more by country, or basically treating the And product variation is just fruitful scale — especially when world as one big country. It’s much one kind of adaptation. If you’re you consider how much economic better to develop a strategy for your serious about expanding interna- 5 activity is localized within each own priorities that reflects the gran- tionally, and you’re very profitable province. ularity of the real world. at home — like, say, the Turkish Also note that the economic home appliance manufacturer differences between the Chinese Arçelik, which controls a key dis- coastal regions and the Chinese hin- tribution channel at home with its terland have a parallel in the differ- 2,000 retail stores — you may ences between south India and nation, tailored to your own indus- have to change your metrics. Other- conversation thought leader much of north India, which is being try, needs, and capabilities, of three wise, no international opportunity left behind. basic ways to add value in a world will ever meet the screen that you where differences still matter: adap- apply to it. tation, aggregation, and arbitrage. Another kind of adaptation is Adaptation involves adjusting product or business redesign to your business model and product reduce the amount of complexity. els of cross-border integration are offerings to different requirements For instance, Brunswick, a company currently increasing. They’re even and tastes around the world. In that makes boats, figured out that setting new records in some cases. 1994, Whirlpool’s CEO, David boat engines were relatively similar But they still account for only a frac- Whitwam, based a global expansion and not costly to transport. So they tion of economic activity. Instead of strategy on the belief that con- focused on selling engines globally, being global, most companies that sumers everywhere wanted the same rather than providing the whole succeed are highly regional: They kinds of refrigerators and washing end-to-end value chain.
  • 7. “A multinational has to be careful in countries where safety standards are lax, because of the reaction it may face at home.” S+B: What about aggregation? GHEMAWAT: That is the recogni- Also of interest in this context is blunt instruments such as product tion at the regional level. One major externalization — involving part- reformulation or decentralization. driver is its sense of administrative ners or customers in your globaliza- distance, a sense that free trade tion, so as to reduce the burden across regions in auto parts and S+B: Didn’t it take Toyota about 50 of adjustment. When entering an components is not going to happen. unfamiliar environment, you find tion that, although there are big dif- But Toyota does anticipate some years to reach its current inter- a joint venture partner who knows ferences at the borders, the degree free trade agreements within national position? GHEMAWAT: Toyota went through that environment. Or you adopt of difference varies a great deal, regions, which therefore become the some of the more creative approach- and therefore you can often group fundamental building blocks for es of YouTube, where customers operations so as to minimize differ- conquering new markets. And the provide the attractions that draw in ences within a set of countries other driver, of course, is economic other customers. or some other group. You end up distance: the large difference in gas- Innovation is yet another way with a more reasonable situation for oline prices between the U.S. — of adapting, and one can distinguish an individual manager, with geo- Toyota’s single most important 6 several different kinds: transfer graphic regional strategies being the market — and most of the rest of insights from one country to most obvious manifestation. of the world. This leads to distinct another, localized innovation (like Of course, there is nothing demands in terms of cars’ size Unilever’s laundry soap bars for peo- sacrosanct about using regions (or and power. ple who wash clothes by hand), the minimization of geographic A regional strategy is sometimes recombination (melding elements distance) as the basis for aggrega- mistaken for a halfhearted approach of your business model with oppor- tion. Different aggregation strate- to globalization: “They couldn’t conversation thought leader tunities from the new country), and gies work for different companies at quite cut it as a global company.” even transformation of the local different points in their evolution. That’s why I like the Toyota exam- country environment. When Star- At IBM, I get the sense that [CEO] ple. Few people would regard Toy- bucks entered Japan with stores that Sam Palmisano is effectively remov- ota as a weak global competitor. banned smoking, skeptics said ing the regional heads from day- chain-smoking Japanese business- to-day line decision responsibility. men would never go there. But Instead, he’s putting the product instead they transformed the local divisions together as the primary strategy + business issue 50 market by drawing in a nonsmok- corporate structure. ing, largely female clientele. By contrast, I recently talked to successive stages of a regional strat- The broader point is that there Toyota’s chairman, Fujio Cho. He egy. They began selling cars outside is a long list of strategies for adapta- emphasized that Toyota is focused Japan in the 1950s, but with a tion, rather than just one or two on building up its competitive posi- center-and-satellite configuration.
  • 8. Home-Country Roots S+B: Your third strategy, arbitrage, is usually associated with getting more labor for less money. GHEMAWAT: I think of arbitrage as S+B: Is administrative arbitrage feasible as a long-term strategy? GHEMAWAT: There are some real All the production was concentrated they ship stuff back and forth, it up, in anonymous surveys of multi- in Toyota City in Japan, and they becomes clear which regions have national corporations, as a major S+B: What is the limiting factor in an shipped the cars overseas. conformance problems. factor in their geographic decisions Then they created freestanding — which is understandable given expansion strategy like that? Is it regional hubs — for instance, with the huge variations in tax rates Toyota’s own capabilities? GHEMAWAT: That is certainly one manufacturing plants located around the world. It’s also under- around the world, and some prod- standable when, say, tanneries move uct development capabilities in East to less-developed countries because Asia and North America. the environmental or health and Next, they shifted toward safety regulations aren’t as strict. I regional platforms. They still had involving a broader range of factors. don’t want to celebrate tax dodging engineering and other commonali- You can build arbitrage strategies or sweatshops, but just to point out ties directed from Toyota City, but around all four types of distances: that there’s still an awful lot of arbi- they embraced the notion that, ulti- cultural, administrative, geographic, trage around variations in regula- mately, people in different regions and economic. tions, both within countries and want sufficiently different auto- For instance, the Benihana internationally. mobiles that the cars should be company has one restaurant in designed locally. This is now evolv- Japan and a couple hundred in ing into networks among the other parts of the world, primarily regions, to tap economies of scale. the U.S. The Japanese restaurant is For instance, Southeast Asian plants in Tokyo, and it primarily serves “dos” and “don’ts” for companies. A basically supply the transmission for Westerners who visit there. It’s really multinational from an advanced Toyota’s pickup trucks worldwide. a form of performance art, cus- country has to be particularly care- tomized to the U.S. market, ful when running operations in wrapped up in a somewhat decep- countries where the health, safety, tive mantle of Japanese cooking. and environmental standards are To most Japanese, there’s nothing more lax, not necessarily because Japanese about Benihana. it’ll get into trouble in that jurisdic- limiting factor. With the rapid But at least there’s a connec- tion, but because of the reaction it 7 buildup of manufacturing capabili- tion, however tenuous, with Japan. may face at home. ties outside Japan and Southeast The Häagen-Dazs brand was An executive at a major manu- Asia, quality is a real issue. In parts invented in the Bronx; its name is a facturer was telling me about the big of the world, you will see a lot of sheer play on a fictitious cultural problem they have in China: To Toyotas in the repair shop, and association. “It sounds Scandina- compete cost-effectively, they have they’re concerned about that. They vian, from a cold country; it must to ignore emissions. This company are still trying to figure out how be pure stuff.” The brand was so has spent 20 years trying to burnish conversation thought leader to implant the Toyota Way more successful that competitors like its environmental credentials. The deeply in their new regional manu- Frusen Glädjé followed, also with blowback to its worldwide reputa- facturing facilities. And they have an no direct Scandinavian link. That’s tion could be significant. And yet it impressively deep way of thinking pure cultural arbitrage; it’s com- feels it can’t afford to ignore China, about it. They know there are prob- manding a premium price through because the market is so large. lems with their Southeast Asia com- association with another culture, Such considerations are, inci- ponents; they know those problems even though there’s no substantive dentally, one of the reasons for come up when those components connection with that culture. discounting the argument that strategy + business issue 50 are plugged into downstream manu- Administrative arbitrage en- established brands from industrial facturing processes around the compasses all the measures that countries will tend to win. An world. “But this is exactly how we companies take regarding taxes and India-based foundry is in a better expose problems,” they say, “with regulations, including environmen- position to take advantage of varia- our manufacturing operations.” As tal regulations. Tax planning shows tions in environmental regulations
  • 9. “On every topic that CEOs of large companies say they want to learn more about, I have trouble locating academic literature.” Real-World Academia S+B: But couldn’t a European com- pany up and move its headquarters to India? GHEMAWAT: Well, there have been S+B: Michael Porter calls you “one of those rare individuals who com- bine world-class scholarship with a deep knowledge of business prac- tice.” In that light, what can you say about the state of business school research today? GHEMAWAT: Actually, I think few than a Europe-based company that remembering that the benefits of ern competitors in documentation might be subject to massive chal- arbitrage tend to vary by company and process quality. The Western lenges in its home market. as well as industry. In the informa- companies have to learn to meet tion technology sector, IBM cannot those standards. beat Tata Consultancy Services or Infosys on labor costs in India — in part because of the premium IBM pays as a foreign company. Nor can a few examples of companies mov- IBM tell its 200,000 Western em- ing to other nations. And compa- ployees, “Just bide with us a mo- nies may often threaten to move as a ment while we shift all the jobs over way of bargaining for lower tax rates to India.” And so the IBM strategy or less onerous regulations. But is to develop services, software, and actually moving is hard. The notion hardware that will differentiate it. 8 of the utterly footloose corporation Sam Palmisano provides a very is at variance with any careful look interesting perspective on arbitrage business schools take the practice of at the historical record. with his explanation of why IBM business very seriously. In 2006, When Accenture moved its expanded from 6,000 people to MIT Sloan School Dean Richard headquarters to Bermuda, it must about 60,000 in India in three years. Schmalensee published an interest- have seemed like a good idea. But if To be sure, some of it had to do ing article in Business Week you’ve just relocated to a tax haven, with labor costs, but much of it [“Where’s the ‘B’ in B-Schools?” conversation thought leader you can’t bid as easily on govern- was driven by talent shortages. November 27] in which he said that ment contracts. In 2004, a [US]$10 Some skills are becoming hard to business schools are focused on re- billion Homeland Security contract recruit in the U.S.; if you want 100 search aimed at other researchers, was held up for precisely this reason. qualified voice engineers, you may uninformed by practice. [See Halliburton is currently moving its have better luck finding them else- “Knowledge Review: Lessons for headquarters from Texas to Dubai, where. The ultimate cost of not Business Schools,” by Andrea which makes sense given the num- arbitraging labor in such a situation Gabor, s+b, Spring 2008.] I think ber of Middle Eastern clients it has. is the opportunity cost associated Harvard, IESE, and a few other But it will be interesting to see what with turning business away. More- business schools do emphasize real- negative repercussions arise in the over, some Indian offshore compa- world problems, but they’re more U.S., especially given Halliburton’s nies, simply by virtue of having to the exception than the rule — par- high-level political connections. learn to work at a distance, have ticularly among the top B-schools in In this context, it is also worth operations that outpace their West- the U.S.
  • 10. For instance, in the academic of disclosure, it’s awfully hard to fig- similar to those of its largest global research that does get done on ure out whether one operation is competitor, Holcim, the Cemex S+B: Much of the research for your international business, there’s a fas- propping up the rest or the com- price per ton is much higher. This cination with firms as knowledge pany has actually created a coherent suggests a different interpretation book involved evaluating the success things on the way! + transfer networks. Researchers talk global strategy. Given the corporate- of Cemex’s success: that its deliber- of corporate strategies. How do about information flows in network- level problems that many “global” ate approach to picking structurally you judge whether a company has theory terms, and so on. But when financial behemoths have experi- attractive markets, or restructuring proven successful? And how long you ask the CEOs of large interna- enced as a result of problems in the them — an explanation based on does it take to know that some- tional companies what they would U.S. market for subprime mort- market power rather than efficiency thing’s working? GHEMAWAT: It depends on the like to learn more about, knowledge gages, one often suspects the former — accounts for most of its superior flows don’t rank that high. For Sam to be the case. performance. Such data are often Palmisano, the crucial challenge was But the more general point is underplayed in analyzing business- shifting IBM’s geographic center of the prevailing low level of analysis of es, even though without them, it’s gravity. For A.G. Lafley at P&G, it global strategies that exists in the hard to get real about performance. 9 was coordinating outsourcing with a business literature. Even a little bit In a way, that’s a symptom of customer focus — and stitching of diligence in looking at perfor- the same issue that affects writing together global business units and mance data can reveal major mis- about globalization in general. Jean Reprint No. 08110 market development organizations. interpretations of cases of apparent de La Fontaine’s aphorism “Every- At Cisco Systems, appointment of a success — and failure. one believes very easily whatever chief globalization officer has been a One case in point is Cemex. they fear or desire” captures much key initiative. And on every one of Many studies of Cemex have em- of the utopian/dystopian quality of conversation thought leader these topics, I have trouble locating phasized that it is a model company publications about the flat world, academic literature. in postmerger integration, the use of the death of distance, the end of his- information technology, and the tory, and so forth. But a reality- transfer of knowledge from one based perspective on global strategy location to another. And these acco- leads to different prescriptions. To lades do have some basis. which I should add, of course, that But having said that, no one — realism is not a recommendation to apart from one article in the Wall stay at home. Columbus managed strategy + business issue 50 Street Journal — bothered to go to believe that the world was round back and look at price per ton versus but still took a pretty interesting trip costs per ton for Cemex and its — and discovered some unexpected industry. In some industries, like fi- competition. It turns out that, nancial services, given their low level although Cemex’s costs per ton are
  • 11. strategy+business magazine is published by Booz & Company Inc. To subscribe, visit www.strategy-business.com or call 1-877-829-9108. For more information about Booz & Company, visit www.booz.com Originally published as “Pankaj Ghemawat: The Thought Leader Interview,” by Art Kleiner. LookingBooz & Company Inc. © 2008 for Booz Allen Hamilton? It can be found at at www.boozallen.com