This document discusses three topics that are connected: gurus, governance, and globalization. It explains that influential thinkers like Drucker, Handy, and Taylor have become "gurus" whose writings and practices set new standards for businesses globally. Strong governance structures were needed to standardize practices and serve stakeholders as globalization increased. While many countries now have governance codes, large corporate collapses still occur, showing the importance of rigorous implementation over just having codes on paper. The document connects how these three factors - gurus, governance, and globalization - are interrelated in influencing business practices worldwide.

1. platFORM
Gurus, Governance And Globalization
Welcome to the new 3Gs – gurus, governance and globalization. Here comes the contribution of these gurus to globalization.
How are they connected? How do you connect the dots between In a seamless and global ‘village’, their practices or writings
these three seemingly different business changers? Why are have become precepts and they became the preceptors. For
they so important for the business world? Undoubtedly, each instance, can someone think of any management tenet without
of these made an indelible impact on the way business is run making a reference to F.W. Taylor’s 14 principles of management?
across the globe. Their overarching power over the decades has proved that
Who taught Henry Ford, Alfred P. Sloan, Henry Nestle, companies across the globe were immensely benefited. In a
Charles Coffin, etc? Were there gurus coaching, mentoring sense, these gurus’ practices and writings have hastened and
and guiding them? There was no one! In fact they became smoothened the process of globalization. However, to have
the gurus for many other businesses. However, of late, we uniformity and standardization of business practices and to
have been witnessing management gurus popularized by global serve the larger interests of the stakeholders, governance
rankings taken out every year in the form of Global 50 Thinkers, structures had to be installed.
Global Management Gurus, World’s Influential Thinkers etc. Thus came the need for strong governance structures.
For instance, Peter Drucker, Charles Handy, Frederick Winslow Although many countries have governance codes, colossal
Taylor, Andrew Carnegie, Henry Mintzberg, Tom Peters, C. corporate collapses cannot be stopped. Enough has been written
K. Prahlad, Michael E Porter, Jim Collins, Vijay Govindarajan, about the need and importance of well-designed and
etc. What made these thinkers/gurus to occupy such a place meticulously-executed governance codes. It is just not good
of prominence? Through their relentless pursuit of a perspective/ enough to have the codes but execution is the distinguishing
philosophy advocated either through their ‘influential’ writings factor. And therefore the difference between the letter and
or ‘benchmark-like’ business practices, these gurus had been spirit of the rule! In this special issue, we tried to connect the
able to set a new course of action for all the companies across dots between these three seemingly different business enablers.
the globe.
Dr. Nagendra V Chowdary
Volume XIII, No. 11 November 2010 ISSN 0972-5172
Editor I Murali Krishna • © All rights reserved. No part of this publication may be reproduced or copied in any form by any means
E N Murthy Adilakshmi G without prior written permission.
• Effective Executive is a registered trademark
Managing Editor Art Department • The views expressed in this publication are purely personal judgements of the authors and do not reflect
GRK Murty Bangaru Babu A (Chief Visualizer) the views of IUP.
S Ganesh • The views expressed by outside contributors represent their personal views and not necessarily the views
Consulting Editor
P R V Prasad of the organizations they represent.
Dr. Nagendra V Chowdary
Vinod Kumar Kasukurthi • All efforts are made to ensure that the published information is correct. IUP is not responsible for any errors
Editorial Team caused due to oversight or otherwise.
Director (Production)
SV Srirama Rao (Associate Editor) Printed at M/s. ICIT Software Center Pvt. Ltd., Plot. No. 165 & 166 P, Phase-V, IDA, Jeedimetla, Hyderabad
H Sitaram
Anuradha S 500 055, Andhra Pradesh and published on behalf of IUP Publications, #126, Mahalaxmi Towers,
Srinagar Colony, Hyderabad 500 073, Andhra Pradesh. Not for sale in US and Canada. Editor: E N Murthy.
EFFECTIVE EXECUTIVE NOVEMBER 2010 3
Effective Excutive_Nov_10.pmd 3 10/4/2010, 11:57 AM

2. O E
Great leaders are pragmatists who can deal with difficult realities In times of great stress or adversity, it’s always best to keep
but still have the optimism and courage to act. busy to plow your anger and your energy into something
– Nitin Nohria positive.
– Lee Iacocca
Be concerned about due process. People seek fairness – not
favors. They want to be heard. They often don’t even mind if You can’t just ask customers what they want and then try to
decisions don’t go their way as long as the process is fair and give that to them. By the time you get it built, they’ll want
transparent. something new.
– CK Prahlad – Steve Jobs
Excellent firms don’t believe in excellence – only in constant It has been said that arguing against globalization is like arguing
improvement and constant change. against the laws of gravity.
– Tom Peters – Kofi Annan
A visionary company doesn’t simply balance between idealism Globalization could be the answer to many of the world’s
and profitability: it seeks to be highly idealistic and highly seemingly intractable problems. But this requires strong
profitable. A visionary company doesn’t simply balance democratic foundations based on a political will to ensure equity
between preserving a tightly held core ideology and stimulating and justice.
vigorous change and movement; it does both to an extreme. – Sharan Burrow
– Jim Collins
Globalization is a fact of economic life.
An organization’s ability to learn, and translate that learning – Carlos Salinas de Gortari
into action rapidly is the ultimate competitive advantage.
– Jack Welch Globalization was a deep trend pushed by technology and right
ideas, as much as anything else.
I really had a lot of dreams when I was a kid, and I think a great –Jeffrey Sachs
deal of that grew out of the fact that I had a chance to read a
lot. I am not someone who believes we should build a fence around
– Bill Gates our country but I do believe there ought to be some fairness
with respect to the rules of this globalization.
It is people who are the objects of globalization and at the – Byron Dorgan
same time its subjects. What also follows logically from this is
that globalization is not a law of nature, but rather a process If you’re totally illiterate and living on one dollar a day, the
set in train by people. benefits of globalization never come to you.
– Tarja Halonen – Jimmy Carter
How to Reach Us...
SEND YOUR FEEDBACK/ARTICLES TO Payment to be made by crossed
The Editor Demand Draft drawn in favor of
IUP Publications “IUCF A/c IUP”, Hyderabad.
Plot No. 53, Nagarjuna Hills, Panjagutta, Visa & MasterCard holders can subscribe online or
Hyderabad - 500 082, Andhra Pradesh, India. fax their subscription order indicating their credit
Bangalore: Sumedha -99001 45609
Tel: +91(40) 23430-448 to 451 card number, name, amount, expiry date, duly
Fax: +91(40) 23430-447 Chennai: Emmanuel -98844 91851 signed.
E-mail: info@iupindia.in
Mumbai: Bhati - 99872 01635 For subscriptions and related enquiries,
effexecutive@iupindia.in
write to:
Website: www.iupindia.in New Delhi: Sonika - 98111 00227
Executive, Subscriptions
ADVERTISEMENT ENQUIRIES IUP Publications
David Wilson, Asst. Chief Manager SUBSCRIPTION DETAILS # 126, Mahalaxmi Towers
IUP Publications By post By courier Srinagar Colony, Hyderabad-500 073.
# 126, Mahalaxmi Towers, Srinagar Colony 1 year Rs. 940 Rs. 1,140 Ph: +91(40)2342 3101 to 3105
3 years Rs. 2,475 Rs. 3,075 Fax: +91(40)2342 3111
Hyderabad 73. Ph:+91(40) 2342-3101 to 3105
5 years Rs. 3,000 Rs. 4,000 E-Mail: serv@iupindia.in
E-mail: mkt@iupindia.in
EFFECTIVE EXECUTIVE NOVEMBER 2010 4
Effective Excutive_Nov_10.pmd 4 10/4/2010, 11:57 AM

3. TENT
con
Good Governance and Compliance
Require New Designs for Incentive Interview
Plans
Identifying ’What to Measure’ and ‘What to
Reward’ ........................................................ 10
Life Lessons from the River .......... 16
Branded Customer Service Inside a
Non-Profit Organization
The Key to Gain a Competitive Edge ............. 32
Non-Profit Brand and Culture Go
Hand in Hand K Ramesh - 22
How Brands Can Walk the Talk ..................... 38
Engineering the Primal Movement
Building the DNA of a Non-Profit Brand ....... 50
Social Production
The ‘Next Big Thing’ in Non-Profits ............... 56
Collaborating to Win
Measuring Collaborative Ability .................... 66
PERSPECTIVE
The Moral of the Moment Kashi R Balachandran - 46
Governance –
It’s All About Implementation ................... 30
LEADERSHIP
Winning Leaders
How They Make Great Calls ....................... 74
Features
Platform ......................................................... 3
Quotes ........................................................... 4
Vijay Govindarajan - 62
Executive Brief ................................................ 6
EFFECTIVE EXECUTIVE NOVEMBER 2010 5
Effective Excutive_Nov_10.pmd 5 10/4/2010, 11:57 AM

4. BRIEF
Internet Brands Deal Comes from Cloud Computing: Raining Money
Old Money Tech titans are battling to pay big bucks for once
Hellman & Friedman (H&F) recently announced bland computing firms. Two questions: Are they
that it would acquire Internet Brands, the online worth it? And who’s next?
executive
publisher that began life 12 years ago as Idealab- When tech titans HP (HPQ) and Dell (DELL)
backed CarsDirect.com. It would appear that H&F became entangled in a furious back-and-forth
will do this deal out of its sixth fund, an $8.4 bn bidding war over 3PAR (PAR), they unwittingly
vehicle closed in 2006, rather than the $8.8 bn introduced much of the public to a decidedly-unsexy
pool raised in late 2009. In fact, the firm still hasn’t area of tech that is becoming indispensable in our
spent a dime of that new money. For the uninitiated, increasingly smartphone’d, tabletized, app-driven
it is very unusual for private equity firms to sit world: cloud computing.
on new funds for more than a year. In fact, HP’s $2.4 bn acquisition of the data
The explanation here comes from an investor storage company was just one in a recent spate
in both Funds VI and VII. According to him H&F of acquisitions. Four smaller cloud-related
was very close to buying Neuberger Berman in late companies have also recently been scooped up by
2008, which would have “sucked down a lot of Fund the big boys.
VI.” H&F bailed out of that deal a few months later,
Last month, virtualization software-maker
thanks to an out tied to S&P 500 performance.
VMWare (VMW) announced it would buy Integrien,
By that time, however, it had already committed
a provider of network analysis, and TriCipher, a
itself to raising new capital. “They
security software developer, for undisclosed
were very open about the timing
amounts. Around the same time, Citrix Systems
starting Fund VII during the
(CTXS) also bought VMLogix for its cloud
process,” says the investor.
management technology and Red Bend Software
According to data from
Inc., snagged VirtualLogix, which allows Intel and
CalPERS, H&F VI was only around
ARM-based mobile devices to run multiple
70% called through the end of Q1.
operating systems on a virtual machine. (Again,
That would mean around $2.52
terms were not disclosed.)
bn left in dry powder. Since then,
Companies like HP and Dell are going full bore
it has announced three deals:
Internet Brands ($640 mn), Associated Materials on cloud services because they enable outsourcing,
($1.3 bn) and Sedgwick Claims Management Services usually via the Internet, of scalable and/or virtualized
Inc. ($1.1 bn, together with Stone Point Capital). IT services, from data storage, software, to billing
Let’s assume that each of those deals included and payment. The convenience offered by the cloud
a 40% equity check from H&F (or 20% in the case is significant: why should businesses, app developers,
of SCMS, because the equity was syndicated). That banks, startups or even governments handle the
would mean around $776 mn in new equity headaches and cost of building infrastructure
commitments, bringing the remaining dry powder internally when they can be offloaded to cloud services,
to around $1.75 bn. resulting in increased productivity and cost-savings?
The firm probably wants to hold onto at least Analysts like Paul Burns, a principal at IT analysis
$750 mn for follow-ons or other special situations, firm Neovise, attributes the recent activity to the
which means there is about $1 bn to go. Sounds relative longevity of cloud and cloud-based services,
to me like Fund VII won’t see its first deal until at like Amazon with its EC2 virtualization service,
least the first quarter of 2011, or 15 months after launched in 2006, and Salesforce.com (CRM),
it closed. Guess this was the mega-fund to invest founded in 1999. “It’s early in the cloud computing
in if you were having liquidity troubles. market, so companies think if they move now, maybe
http:finance.fortune.cnn.com things will be a little less expensive in some areas,
EFFECTIVE EXECUTIVE NOVEMBER 2010 6
Effective Excutive_Nov_10.pmd 6 10/4/2010, 11:57 AM

5. BRIEF
but if they wait, they not only become more 1) Zuora – the Salesforce.com of subscription-
expensive, they risk having a competitor buying based payment and billing.
that offering instead,” says Burns. Many subscription based businesses still rely on
Is cloud overvalued? The hype around cloud, costly and complex in-house billing systems, but
executive
plus the general frenzy in the M&A space, could be Zuora offers cloud based payment and billing services
why we’re seeing companies go to war now over for subscription-based businesses, new and old. CEO
companies like 3Par: they’re taking risks early in Tien Tzuo spent nine years at SalesForce.com – he
the game in hopes that those bets will pay off later built SalesForce.com’s original system and served
– both financially and technologically. The goal is in several roles including Chief Marketing Officer
what it always is: to be better positioned to profit and Chief Strategy Officer.
on the next big thing, as more and more businesses 2) Nimbula – The private cloud company with
decided to outsource to the cloud. big name backers.
In late 2003, EMC Corporation (EMC) bought Nimbula emerged from stealth mode last June
virtualization software company VMWare for $635 and is most notable for its pedigree. The same team
mn, a large sum that in hindsight turned out to that built Amazon’s EC2, former execs Chris Pinkham
be a pittance. In 2007 EMC later spun off part and Willem van Biljon, are behind Nimbula. Pinkham
VMWare to unlock shareholder value and retain and van Biljon’s industry cred has attracted some
talent. The company’s market cap is now pretty high-profile VCs, including Accel Partners
approximately $34 bn. As EMC still owns 80% of which has also invested in AdMob, Facebook and
the firm, and VMWare’s software remains the ComScore, and the legendary
foundation for the majority of cloud computing Sequoia Capital. So far, Nimbula
services that require some form of virtualization. has raised more than $20 mn in
Any big company picking up a cloud firm today two rounds of funding.
has to be hoping for a similar outcome. 3) Heroku – Building an
In fact, 3PAR wasn’t the first cloud acquisition application platform on the cloud.
for HP. In July 2007, it picked up Opsware, a data Started in 2008, the San
center automation start-up for $1.6 bn, or 16 times Francisco-based cloud provider
Opsware’s 2006 revenue. In that respect, HP focuses on “platform as a service,”
overpaid. The Wall Street Journal recently questioned a concept popularized by SalesForce.com, that
whether valuation even matters in the cloud sector emphasizes ease of use, automation and reliability
right now, citing an analysis by the ISI Group which for app builders. Heroku employs a multi-tenant
reported that over the last five years, HP typically software architecture, so one instance of software
paid 1.9 times a company’s 12-month revenue in on a server can serve more than one client company.
hardware and networking acquisition. Third party add-ons let developers easily integrate
So, cloud acquisitions or investments are not additional features into their deployed apps.
winning lottery tickets: execution and integration Heroku has received over $13 mn in funding to
are everything. Opsware was famously troubled date.
as a standalone company. A nice exit for shareholders As cloud computing continues to mature, we’ll
and new ownership doesn’t magically change that, see more mergers and joint ventures, lots of
or any company’s prospects. overbidding and maybe even a VMWare level bargain
Three Clouds Properties Ready to Burst or two. However the sector grows, as Winston
Burns and Gartner analyst, David Smith identified Churchill said about an entirely different matter,
three companies that could bring the rain to any “this is not the end. It is not even the beginning
company rich enough to snap them up, and wise of the end. But it is, perhaps, the end of the beginning.”
enough to run them well: http://tech.fortune.cnn.com
EFFECTIVE EXECUTIVE NOVEMBER 2010 7
Effective Excutive_Nov_10.pmd 7 10/4/2010, 11:57 AM

6. CLASSIC
consulting
Russian Rail, Containers, and Growth: The Rail Container Shipping Market
is Set to Soar in an Economic Recovery
The economic recovery is fertile soil for the Russian rail container market as all signs indicate
up to 10% annual growth rates through 2015. Russia is becoming more attractive for shipping
goods in containers via rail as the country improves its infrastructure, and as container
companies improve their services. The Russian economy and its trading counterparts are
promising a rapid recovery across the Russian rail container market.
Source: www.atkearney.com
Creating People Advantage 2010:
How Companies Can Adapt Their HR Practices for Volatile Times
This report details which HR practices and methodologies are helping companies to create
competitive advantage and which need a different approach to suit the times. This analysis of
a broad range of HR topics is based on the second survey conducted by The Boston
Consulting Group and the World Federation of People Management Associations, which
generated responses from more than 5,500 executives in 109 countries covering five
continents and spanning many industries.
Source: www.mckinseyquarterly.com
DATA
simplified
Reference # 03M-2010-11-01-10
EFFECTIVE EXECUTIVE NOVEMBER 2010 8
Effective Excutive_Nov_10.pmd 8 10/4/2010, 11:57 AM

7. EFFECTIVE EXECUTIVE NOVEMBER 2010 9
Effective Excutive_Nov_10.pmd 9 10/4/2010, 11:57 AM

8. Good Governance and
Compliance Require New
Designs for Incentive Plans
Identifying ’What to Measure’ and
‘What to Reward’
Companies need to
align their variable
pay schemes to their
compliance systems
and the values they
stand for, so that the
former will not impair
the latter. As large
organizations become
more and more
complex, reward
programs should
encourage behaviors
that promote
organizational success
in more complex ways
than those usually C orporate best business practice and
compliance programs are typically based
on the legal framework ruling company
practices to match the core organizational
values. Also known as “tone at the top,”
this strategy conveys that a company is truly
contemplated in the
classic agency theory. operations. However, in recent years, this committed to the values proclaimed in its
approach has proved to be insufficient to Code of Ethics, and that it is walking the
prevent severe wrongdoing, and companies talk and not just making meaningless ethical
have been forced to turn to proactive statements. It is not always easy for the
programs to foster more ethical business senior management to follow this path as
practices. These programs go beyond strict it calls for strong discipline and often requires
compliance with current regulations. One acting on tough decisions. Yet, this is the
of the essential tools today is good only path that leads to commitment to a
governance and ethical leadership by senior company’s Code of Ethics across the
management. Through its everyday organization, as it builds an ethical discipline
behavior, the top management should and also effectively avoids illegal actions and
convey the message of the need to adhere their damaging consequences to corporate
to ethical practices and must adjust everyday reputation.
EFFECTIVE EXECUTIVE NOVEMBER 2010 10
Effective Excutive_Nov_10.pmd 10 10/4/2010, 11:57 AM

9. Good Governance and Compliance Require New Designs for Incentive Plans
An issue that seems to consistently pose financial crisis, this scheme has but promoted
a challenge for this approach involves the the short-sighted quest for gains that
design of variable compensation programs, ultimately undermine organizations’ medium
which threaten the commitment of the and long-term interests, casting serious doubts
business to ethics and jeopardize the on top management’s true commitment to Matthias Kleinhempel
corporate goals and core values in their compliance programs based on integrity and served as a full time professor at
attempt to secure short-term financial gains. credible ‘tone at the top’. IAE Business School from 1999 to
2002. In 2009 he joined IAE
Variable pay is usually tied to objectives In Latin America (and other regions as
again and teaches in the MBA
associated with sales and market share well), the organizational structures of the
and the Executive Education
growth, increased profits, dividends and multinational companies featuring local programs. He is the Academic
company market value, as well as affiliates and regional headquarters makes Director on behalf of IAE of the
quantifiable short, medium and long-term it complicated to design the compensation Senior Executive Program Miami,
targets – all combined in what is typically schemes and incentive plans. In these scenarios, which IAE organizes together
with IESE (Spain) and IPADE
referred to as performance metrics. The multiple executive roles are often assigned
(Mexico). He holds a Master´s
makeup of the compensation schemes vary to a single individual (e.g., a local subsidiary
Degree with an MBA (IAE
according to the responsibility levels: while CEO serving also as regional head), not only Business School) and a Law
a middle manager’s pay often combines a paving the way for potential conflicts of Degree (University of Hamburg,
75% fixed salary and a 25% share of variable interests to enhance variable pay, but also Germany). His fields of interest
‘incentives,’ top executives’ fixed salaries showing strong interdependence among the and research deal with Regional
Strategies and Organization of
normally account for 60% – at most – of drivers that determine objective metrics and
International Companies and
their compensation packages, with the rest escape managers’ control.
Business Ethics and
depending on their performance and Chronic issues stemming from the Compliance.He is co-heading the
accomplishment of specific goals. Monetary complex and difficult business environment Center for Governance and
incentives may be granted in cash or equity in these regions further contribute to creating Transparency at IAE. Mr.
(shares, stock options, etc.).1 additional distortions when it comes to Kleinhempel worked as a lawyer
with focus on insolvencies and
In general terms, regular compensation setting incentives. Executives might feel
bankruptcy proceedings in
plans reward managers for short-term tempted to resort to unlawful means to
Germany and as an advisor for
results, whether these results turn out to achieve financial targets established in their foreign investors in
be short- or long-lived. Particularly in the compensation schemes – for example, Argentina.He was President and
case of public companies, top management increasing sales with dubious deals. As a CEO of Siemens Venezuela, and
performance estimations tend to focus on result, in a setting where illegal practices are simultaneously CFO for Siemens
in the Andean Region, President
company market value. The fact that a share common, an inadequately designed incentive
of the Power Cable Division,
of their compensation hinges on securing system can not only trigger a short-sighted
holding responsibility for the
short-term results drives executives to seek search for results but also foster unlawful worldwide business and CEO and
immediate gains, even at the expense of long- behavior in the form of acceptance – and President of Siemens in
term company value.2 Specifically, with a creation – of corrupt practices, introducing Argentina and simultaneously
typical equity-based compensation scheme, both informal and shady incentives. Indeed, CFO of the Mercosur Region . He
served as President of the
stock options are granted gradually over a in environments besieged by endemic
Argentine-German Chamber of
specific period of time, and, once awarded, corruption, as is often the case in emerging
Commerce, as President of IAE’s
these shares can be sold by managers for countries, variable pay scheme design Alumni Association, and as Vice
cash. High percentages of variable pay, 1
Young Stephen B, 2009b, “Board Guidelines for Setting President of the EU Business
CEO Compensation,” Caux Roundtable
combined with short-term financial Announcement, August. Group in Argentina.
objectives, strongly indicate that immediate 2
Bebchuk Lucian, 2009a, “Written Testimony, Hearing
on Compensation Structures and Systemic Risk,” June
financial gain prevails over proclaimed 11, Committee on Financial Services, US House of
Representatives, http://www.house.gov/apps/list/
corporate values. As shown by the recent hearing/financialsycs_dem/bebchuk.pdf.
EFFECTIVE EXECUTIVE NOVEMBER 2010 11
Effective Excutive_Nov_10.pmd 11 10/4/2010, 11:57 AM

10. demands special attention and care to the potential strength of moral values motivation, rupture relationships, ignore
prevent undesired outcomes. and commitment to organizational reasons, discourage creativity and prompt
objectives. Material incentives ultimately excess risk-taking, and eventually
The Need for Variable Pay and indicate that the intended outcomes do undermine agents’ interest.5
Income not reflect a commitment to the A parallelism may be drawn between
Variable pay as an incentive has been organization but are reflective of the the conflicting tension between these two
traditionally viewed as an imperfect – specific results rewarded by this system. diverging principles – extrinsic, material
albeit practical- solution to what is usually A complementary approach to problems motivation and transcendent motivation-
known as the “principal-agent” problem derived from exclusive monetary and organizations’ external and internal
or “agency dilemma.” This notion compensation schemes hinges on viewing missions. While an organization’s external
encompasses the difficulties that arise them as results of inadequate program mission points to the actual objectives
under conditions of incomplete and motivational premises rather than system and needs it is bound to meet, its internal
asymmetric information when a principal design flaws. Hence, incentives may be mission involves fulfilling the actual needs
hires an agent. This issue may surface in construed as “extrinsic motivators” that of other stakeholders – that is, building
several employer-employee relationships, do not change our behavior dispositions unity and promoting mutual trust among
when agents pursue their own objectives nor drive any sort of long-lasting organization members. 6 Explicit
and are inherently unable to loyally serve commitment to values supporting future incentives are typically designed to make
their principals. The “agency theory,” actions.3 Monetary incentives would, sure that the organization achieves its
developed to analyze this crucial problem, therefore, have a temporary effect on external goals. However, the organization
provides a possible solution to align professional performance, ensuring only can only attain long-term sustainability
interests among principals and agents a limited, short-lived compliance. if, at the same time, it lives up to its internal
(for example, among an organization and In this light, monetary rewards may mission – in other words, creating strong
its employees, or among shareholders be viewed as punishment, as they are ties among its members, based on
and managers, or among executives and actually manipulative in nature –that common values and mutual trust
employees) by encouraging agents with is, monetary rewards impose several (transcendent motivation). As a result
monetary incentives based on the conditions, which an agent needs to meet and as opposed to formal control systems,
accomplishment of economic goals that in order to accomplish certain goals.4 the notions of organizational ownership
reflect principals’ interests. As a result, Thus, punishment and reward are, in and loyalty become instrumental.7
compensation schemes have been fact, two sides of the same coin:
designed to mitigate the agency dilemma incentives may be highly desirable, but, Solutions for Overall
as much as possible. Financial incentives as they depend on specific behaviors, Incentive Programs
have become a mechanism to ensure organizations end up manipulating their To avoid the negative effects of monetary
agents’ loyalty and commitment to their employees-agents, while the experience rewards, several solutions have been
organizations’ strategic goals. A pervasive of being controlled is likely to become devised both through phased monetary
challenge for this approach lies in choosing punitive over time. incentives and by means of broader, non-
the performance to be taken into account In turn, any reward system monetary rewards based on non-
–that is, deciding whether to base immediately tends to cripple intrinsic quantifiable metrics. There are five types
incentives on past, current, future or motivation: whenever something is of possible solutions available:
expected performance. presented as a prerequisite for something
3
Kohn Alfie, 1993, “Why Incentives Plans Cannot
Several currents of thought have else –that is, as a means (performance) Work,” Harvard Business Review, September-
October, pp. 2-7.
refuted the principles underlying this to an end (material reward) – the former 4
Ibid: 5.
approach, arguing that a system based will be viewed as less desirable and will, 5
Ibid: 5-7.
6
Pérez López JA, 1993, Fundamentos de la
exclusively on monetary incentives does therefore, be undervalued. The downside dirección de empresa, Madrid: Rialp. Chapter 7.
not factor in satisfying the needs of others of any such system is clear: as ultimate 7
Rosanas JM and Velilla M, 2005, “The Ethics of
Management Control Systems,” Journal of
as an ultimate goal, thus undermining goals, material incentives curtail Business Ethics, Vol. 57, pp. 83-96.
EFFECTIVE EXECUTIVE NOVEMBER 2010 12
Effective Excutive_Nov_10.pmd 12 10/4/2010, 11:57 AM

11. Good Governance and Compliance Require New Designs for Incentive Plans
Variable Pay Reduction to a Minor payments for individual choice for more interesting, less
Part of the Fixed Compensation accomplishments). In any case, the remunerative work over jobs offering
The purpose of this solution is to find idea of controlling an organization’s more attractive compensation and less
a sound balance between both fixed economic results is virtually an illusion appealing professional challenges. Younger
and variable pay in order to ensure in large companies’ operations, since executives are showing greater interest
that neither is conceivable without the influence on volume/income is in non-material job aspects, such as
the other one. arguable at best and often shared corporate culture or a healthy work-
Setting Long-term Financial among several company areas, as personal life balance.10 Job features like
Targets illustrated by internal transfer prices, greater accountability, more decision-
This could involve sales volume, tax strategies, strategic priorities and making autonomy, and regular feedback
income, costs, EVA – for example, resource allocations in headquarters- are increasingly viewed as motivational
through a short and long-term bond affiliate relationships, or global and drivers just as significant as or even more
split with an average 3-to-5-year term. regional value chains with local important than monetary compensation
In addition, it is convenient to extend responsibilities only for specific parts. itself.11 In 2010, a study on compensation
performance measuring periods, As a result, current discussions on carried out by Mercer in 120 US
taking into account, for instance, performance focus on four drivers companies also found a growing interest
results over the past three to five –control, accountability, influence and in the adoption of non-financial targets,
years instead of considering only the support.9 revealing a 17% increase in the
last 12 month. Thus, incentives would Introducing Qualitative Targets, introduction of such metrics in their
be tied to accumulated, long-term including specific compliance incentive plans over the past year only.12
performance rather than to short- goals Despite the still strong prevalence of
term outcomes. A global study conducted by the monetary incentive systems confirmed
Long-term Payments headhunting firm, Egon Zehnder with by the study, the rising importance
This includes stocks that cannot be over 1,000 executives from 13 attributed by executives to behavioral
sold over a numb er of years. In this countries, including Argentina and rewards tied to sound, non-quantifiable
case, it is also advisable to separate Brazil, on current compensation and business practices points to a consistent
the time when stock options can be incentive practices revealed that tendency towards adopting a
cashed out from the moment they monetary reward systems increasingly multidimensional approach to address
are vested. As executives cannot coexist with young executives’ rising compensation scheme issues. Both as
speed collection, this precaution appreciation not only for non- regards incentives and targets, there is
prevents distortive incentives derived monetary metrics but also for a trend towards incorporating elements
from their desire to do so.8 motivational mechanisms that go associated with business practices, like
Decoupling Targets from beyond material rewards. As a result, perceived quality of compliance programs,
Individuals’ Control survey conclusions seem to indicate implementation of code of conduct, etc.
This is applicable both to overall that, for most participating Companies need to align their
company targets or region-specific executives, material incentives cannot variable pay schemes to their compliance
targets. This can be very effective, for, “buy” motivation, and short-term systems and the values they stand for,
when executives cannot control rewards are making way to long-term 8
Bebchuk, Lucian, 2009c, “Fixing Bankers’ Pay,”
The Economist’s Voice, November. 2.
targets, they are not tempted to incentives based on behavioral targets, 9
For more on this topic, see Robert Simons,
“Designing Top Performance Jobs,” HBR, R
resort to shortcuts or wrongful particularly stressing the formulation 0507D-E.
behavior. This practice fosters of and compliance with codes of 10
Egon Zehnder, 2009, “Reward – Seeking the
Ideal Blend of Financial Compensation and
cooperation and teamwork across the conduct. Fulfillment,” Egon Zehnder International 6th.
International Executive Panel, June. 5-7.
organization. It does not matter that There is also an increasing appreciation 11
Ibid: 10-12.
this goes against the original rationale of job content over material 12
Mercer, 2010, “The 2010 US Executive
Compensation and Performance Survey,”
of the reward systems (additional compensations, as well as a preferred www.mercer.com, June.
EFFECTIVE EXECUTIVE NOVEMBER 2010 13
Effective Excutive_Nov_10.pmd 13 10/4/2010, 11:57 AM

12. so that the former will not impair the A limited number of targets facilitates Just as authoritarian political systems
latter. As large organizations become the management to define them have changed into more democratic
more and more complex, reward more objectively and measure them government schemes over recent decades,
programs should encourage behaviors more effectively. the corporate world heads towards a
that promote organizational success in Additionally, fewer targets allow for transformation of similar connotations
more complex ways than those usually a more effective evaluation of as a result of the recent global crisis. This
contemplated in the classic agency organizational performance over a change involves a substantial turnaround
theory. longer period of time, escaping the of a relatively opaque model focusing on
There are no ideal, foolproof solutions temptation to measure strategy shareholders’ interests into a more
to offer in this field, but it is clear that success or failure over shorter time transparent system that addresses the
any sustainable compensation scheme frames that can be easily tampered needs of multiple stakeholders, including
requires some of the options listed earlier with. middle management, employees,
– decoupling targets from jobs, reducing Assessments based on qualitative investors, customers and NGOs, among
the number of targets to accomplish in metrics provide a wider scope that others.13 The place and role of monetary
extended periods of time, and captures in a more sophisticated incentives can be redefined to play a key
incorporating qualitative targets as well. fashion the true alignment between part in the transition towards corporate
Common goals lower incentives to actions and organizational values. strategies based on integrity and
secure a reward through shortcuts Some companies are already adjusting transparency. e
or undesired behaviors, especially in their incentive programs to these tenets.
settings where corruption is © 2010 Matthias Kleinhempel. All Rights Reserved.
13
Bonime-Blanc Andrea and Brzezinski Marc, 2009,
“Business and the Way of Democracy,” The New Reference # 03M-2010-11-02-01
widespread. York Times, December 27, 2009.
EFFECTIVE EXECUTIVE NOVEMBER 2010 14
Effective Excutive_Nov_10.pmd 14 10/4/2010, 11:57 AM

13. EFFECTIVE EXECUTIVE NOVEMBER 2010 15
Effective Excutive_Nov_10.pmd 15 10/4/2010, 11:57 AM

14. Life Lessons from the
River
Like most rivers, our
lives are constantly
changing. So jump in
– you’re going to get
wet anyway. With the
proper tools and
inner resources, you’ll When you stand in a river for the second time, my life journey. They form the foundation
be more confident is it the same river in which you had stood earlier? for this book. I truly discovered what it means
that you can navigate Ancient Philosophical Question to be Dancing on the River. It’s an attitude
these changes about how you approach life. It’s a belief
successfully and make
your life an exciting A few years ago, I wrote an article about
a river-rafting trip on the Green River
in Colorado, where I had a near-death
system that you cultivate. It’s a reflection
of a life decision that you make to be happy
and to enjoy life in this moment. Your
journey of discovery.
These challenges are experience. As I was propelled through the enjoyment and appreciation of life is not
there to nurture and rapids, behind the raft, I wasn’t sure if I would dependent on what might happen in the
survive the swifter currents of the river. It future. I haven’t always felt this way. It’s taken
accelerate your life’s
wasn’t until many years later that I realized me a while to get here. Some days I feel it
unfolding. Avoiding
the significance of what happened on that more than others. Some days I forget. Dancing
the challenge just
trip. I was thirteen at the time. on the River is the journey of how I have gotten
delays what you As I relived this experience, during the to this place in my life. It’s been a process
ultimately have to writing of this book, I gleaned eight lessons of discovering what beliefs and attitudes were
learn. and insights from the river experience, and holding me back from moving forward. It’s
the river of my life, that have guided me on been a process of discovering spiritual practices
EFFECTIVE EXECUTIVE NOVEMBER 2010 16
Effective Excutive_Nov_10.pmd 16 10/4/2010, 11:58 AM

15. Life Lessons from the River
and mental disciplines that have supported The breakup of my brief marriage was the
me in integrating more empowering beliefs wake-up call that opened me to the path of
and attitudes into my way of thinking. It’s awakening that I have been on ever since.
been the awakening to a rich inner life that Meditation and yoga, which have been at the
has fulfilled me on many levels. It’s been the core of my life’s unfolding, were the first steps
willingness to face adversity and to be on my journey. Soon after, I met my wife,
courageous when I needed to be. It’s about Annie. Once we began a family, our lives shifted
a leap of faith. It’s also a story about others dramatically. It was only a matter of time until
and how they have changed their perception I felt a yearning inside that called for something
of life. Underlying all of this is the commitment else.
to developing the life skills and belief systems Although I didn’t know what that Mark Susnow
necessary to face life’s challenges. We are something else was, I made a leap of faith has had a unique and varied career
involving multiple transitions. A
affected by events and circumstances that and stopped practicing law. A year later, after
former trial attorney for 30
we have no control over. There are no much soul searching, I decided to become a years, Mark has been covered by
explanations for many of the things that life coach. The New York Times, Rolling
happen. We struggle with trying to make I love hearing a good story and like to think Stone Magazine, The Boston
sense of it. More than ever, the world we of myself as a good storyteller. Many stories Globe and The San Francisco
live in is changing at an accelerating rate. convey a message and an underlying theme, Chronicle. In 2000 inspired by
the new millennium, Mark sought
Navigating these changes, both personally which are remembered long after the story
a new career and trained to
and globally, has become an art form and has been told. The chapters in this book reflect become a life coach. Since then
is the greatest challenge that we all face. It various aspects of my life’s journey and the Mark has worked with over 1000
can feel overwhelming at times and can drain stories of some of the people that I have been people helping them find joy and
us emotionally. But it doesn’t have to be privileged to get to know from being their meaning in their life regardless of
that way. life coach. For confidentiality purpose, I have their circumstances. He is a
contributing author along with
The river of our lives always has been sometimes used a composite to reflect upon
Zig Ziglar, Brian Tracy and Denis
and always will be changing. It’s just that their contributions. Waitley in the book 101 Great
we are more aware of it now. During my In each chapter I explore with you the Ways to Improve your Life.
childhood two dramatic changes occurred, many insights gleaned from the Green River Mark’s new book, Dancing on
which significantly impacted the course of and the river of my life. I also share with you the River: Navigating Life’s
my life. When I was six, I lost my father. This various tools, techniques and resources that Changes is now available. In
addition to his work in the
tragic incident changed the whole dynamic have enabled me to navigate the many changes
business world, Mark is an
of our family and of my childhood. When I in my life. To help you with your exploration, accomplished musician who has
was ten, I was taken out of public school at the end of most chapters I present you played saxophone, clarinet and
and sent to military school for two years. with an opportunity to reflect upon some flute in clubs throughout the Bay
Most changes that we experience in our lives of the concepts explored in that chapter. I Area and Hawaii.
aren’t as dramatic as the ones that I encourage you to journal. Journaling is a
experienced. There are the many changes powerful way to deepen your learning, and
we go through as we transition through an opportunity to get to know yourself better.
different phases in our lives. Once we leave Give yourself a gift by taking the time to reflect
home, we struggle with satisfying basic needs upon the insights and concepts explored in
that previously we took for granted. We each chapter.
search for a life path that we feel will give It is my sincere hope that after you read
our life a meaning. But as we transition this book you will feel empowered to embrace
through different phases in our lives, what life’s changes rather than avoiding or reacting
gave us meaning at one time also changes. to them. Like most rivers, our lives are
EFFECTIVE EXECUTIVE NOVEMBER 2010 17
Effective Excutive_Nov_10.pmd 17 10/4/2010, 11:58 AM

16. constantly changing. So jump in – you’re A world in which our differences inspire housed a few small planes, not much bigger
going to get wet anyway. With the proper us to look deeper than our car. As I looked up at the little
tools and inner resources that you will A world in which we know that what we six-seat plane, I hesitated. I gathered up
be able to access in the various chapters all want is to love and to be loved my courage, walked up the few remaining
of the book, you’ll be more confident that A world in which we all say yes steps and boarded the plane. We flew over
you can navigate these changes successfully Yes to the moment the mountains to a town close to our
and make your life an exciting journey of Yes to the spirit in all of us waiting to be campsite. Once we landed, I was glad to
discovery. These challenges are there to expressed be on the ground.
nurture and accelerate your life’s unfolding. Join with me Already an adventure for a thirteen
Avoiding the challenge just delays what Let us see the love in each other year old, we climbed onto a flatbed truck
you ultimately have to learn. You’re not The love that is all around us in each and were driven down a long and winding
alone on your quest. There are many fellow moment dirt road full of potholes toward the river.
travelers who face the same challenges Let us say yes to love. Then the truck stopped. I looked at the
that you do. They wonder about the same Namaste! last obstacle before reaching the river.
things that you think about. We are all in We got out of the truck and began
this journey together. Enjoy the journey. Flowing with the Rhythm of walking over an old and narrow wooden
Life rickety bridge. From there it was just
A Prayer For The World When I let go of what I am, I become what another hundred yards to our campsite.
See the vision I might be. I looked around at what would become
Be the dream Lao Tzu my home for the next week: the river
Live your life When I was 13, my Uncle Sam took me flowing through the sharp canyon with
Know who you are on a weeklong river-rafting trip, sponsored its incredible sounds and reddish colors
Find the light by the Sierra Club on the Green River, a and the five rubber rafts, big enough for
Be the beacon that lights the way for others tributary of the Colorado River. forty people and supplies. There were 22
to see It seems like it was yesterday. Up until adults and 18 kids, including the five guides.
Say the word that speaks to all of us that time in my life, I hadn’t really been That evening we sat around the fire
Know you will be healed anywhere. I grew up in San Francisco; the and got acquainted with each other. Safety
We who are visionaries extent of my travels were occasional train and logistics were a big topic of conversation
—Visionaries of the dawn trips to the Central Valley, to visit with that first night. Because I was so stimulated
Show the way my grandparents. The thought of flying from the day’s journey, I had difficulty falling
Be who you are on a plane for the first time seemed not asleep. At the crack of dawn I woke up. A
Now is the time only exciting, but also scary. I had one delicious breakfast was served: hot cereal,
Don’t wait any longer other consideration, which for a thirteen bacon and eggs and a hot drink. Before
We know who you are year old was a big concern. Would I be getting into the rafts, we reviewed the
Your time is at hand back in time for my team’s game? I was safety considerations that we had discussed
Take a stand the team’s pitcher. the night before. We were told that with
Take a stand at this moment in time Once I was reassured that I would be each passing day the rapids would become
Join with me back in time, I was ready to go, but still more challenging and not to expect the
we are one— with some reservations. During the flight most challenging rapids – Hells Half Mile
One family from San Francisco to Boise, Idaho, I couldn’t – until later in the trip. The journey of
Dreaming—hoping for a better world completely relax. Even so, I was able to 72 miles of whitewater rafting through
A world in which we see each other as a overcome my apprehension – until I saw Split Mountain Canyon and Dinosaur
friend rather than foe what was next. At that time, Boise had a National Monument was about to begin.
As brothers and sisters rather than our small airport. After getting out of the plane, That first day as the current took us
separateness I followed my uncle toward a hangar that downstream, every once in a while I would
EFFECTIVE EXECUTIVE NOVEMBER 2010 18
Effective Excutive_Nov_10.pmd 18 10/4/2010, 11:58 AM

17. Life Lessons from the River
get out of the raft and play in the water and intact. I wasn’t smashed by the you what is needed to navigate the
and let the current take me where it would. boulders. I wasn’t trapped under the changing currents with all of their
That’s the way the second day began surface of the water. For a second, I had complexities and unexpected moments.
as I floated alongside the raft. Suddenly a sense of relief as I rejoiced in the stillness To help you on your journey, let me
I had an ominous feeling. I was not aware of the river. Then I noticed that the next share with you the following insights
of how quickly the character of the river series of rapids was approaching and the and practices that have guided me:
could change. Not only were the currents raft was still ahead of me. I dreaded the ♦ Find and Live from Your Center
swifter, the distance between the raft and thought of going through them again. That was the message from the Green
myself w as increasing. Many thoughts raced “Maybe I won’t be so lucky, this time.” River. When you are centered and
through my mind, yet time seemed to At the moment that I began to feel connected to your source, you are
stop. “I might be smashed by the boulders; hopeless, amidst all of the yelling, I saw connected with the source of everything.
I might be sucked under the water and it! With an extra surge I grabbed the oar That’s when you are able to let go, to trust
die.” There were the yells: “Get in the raft. my uncle extended and was pulled onto and to flow with what is. When I let go in
Get in the raft.” It was too late. As I the raft. At that instant, the raft went the river, I became at one with that same
desperately swam toward the raft, not through the rapids again. In just those energy and power that had forged a path
only did I feel exhausted, I had a sinking few seconds so much had occurred that over thousands of years. Even though we
feeling that I wasn’t going to be able to has dramatically affected my life. A few live in a fast moving and changing world
get back into the raft. More yells: “Stay hours later we reached our campsite. I full of uncertainties and complexities,
in the center – Stay in the center,” was lay down exhausted. navigating these changes becomes an
what I remember hearing and that’s where On more than a few occasions on that exciting journey of discovery. Meditation
the current was taking me. At the second trip over forty years ago, my Uncle Sam and yoga have consistently facilitated my
in time when I knew I was going through said to me, “You’ll think about this trip connecting with that center.
the rapids, I stopped resisting and let go later in your life. It will affect you in ways ♦ Get Out of Your Comfort Zone
and became at one with the path forged you won’t understand.” I think I’m finally I could have stayed in the raft and played
over thousands of years by the incredible grasping what he meant. Many of the it safe, but I was curious and adventurous.
force of that same river. lessons and insights gleaned from the For most of my adult life my comfort
At its center, the river surged Green River experience are at the core zone had been my law practice and, as a
downstream unimpeded between the of how I live my life today. It’s been my result, I had not yet realized my full
boulders. I tried to lean back and keep teacher in many ways. That’s the way it potential. On many levels I was getting
my feet in front of me, but I was spun is with many things in our lives. We don’t lazy. Unless I made the career change that
around and turned upside down by the recognize the significance of a particular I eventually did, it would have been
shifting whirlpools. Fear, exhilaration and experience or meeting until many years impossible for me to experience the
exhaustion consumed me. Before I knew later. Let your river guide you in this personal freedom and enthusiasm that
it, I was through the rapids. I was alive changing adventure called life. Let it teach I enjoy in this period of my life. Getting
EFFECTIVE EXECUTIVE NOVEMBER 2010 19
Effective Excutive_Nov_10.pmd 19 10/4/2010, 11:58 AM

18. in the current and flow of life involves to be vulnerable by honestly sharing who you, I have concerns about the future,
risk, but that is what’s needed. That’s when you are and what matters to you, you but I have become more comfortable with
you are truly dancing on the river. create a synergy that is greater than the not knowing the next step. I’m more
♦ Learn to Let Go of Resistance sum of the individual parts. It is in that confident that wherever the currents
Resistance is a struggle that makes you moment that you experience the magic take me, I’ll be able to flow with them.
tired. That’s what I experienced on the of connecting with a kindred soul. Whether the river is “calm” or “raging,”
Green River. At first, I resisted the current ♦ Develop the Practice of Gratitude it’s still the same river. There always will
and tried to swim back to the raft. But When the oar is extended, accept it! I be difficult moments from time to time,
I became tired from the struggle. At some am grateful for that oar. I am grateful which we won’t be able to avoid. After
point in your life, not only you do become for my uncle and that I got to go on the all we’re human. But quite often what
tired from the struggle, you become tired trip and experience the river. And I am happens is that these difficult moments
of the struggle. It doesn’t have to be that grateful for my life. You have a lot to be affect our ability to enjoy ourselves at
way. When you allow yourself to flow with grateful for, more than you realize. When other times. After having danced on the
what is, you experience a synchronicity you express gratitude for some of your river for some time, we know that no
that can’t be described in words. inner resources, such as your ability to matter what is happening in our lives,
♦ Be Prepared love and to connect with others, you we always have a choice as how we
I wore a life preserver on the river. When appreciate how much you do have. You experience it – one big struggle or an
you are prepared it is easier to relax and approach life with a grateful heart and exciting journey of discovery. I chose
enjoy life’s unfolding. Preparation involves greater sense of joy and happiness. to play in the river. It is my hope that
nurturing your mind and body, including ♦ Be Curious after you finish reading this book, you
eating well and exercising. It involves Think of your life as a river with its lessons, will make the same choice. A familiar
working on yourself and being receptive challenges and complexities. Being curious theme of this book is that we learn from
to new ideas and concepts. In the process about the changing nature of the river each other. Before exploring the lessons
of becoming an expanded person, your enables you to get to know and sense and insights from the river in more detail,
sense of what is possible in your life also its many currents. As this knowing let me share with you some of the
expands. You’re more curious and confident emerges, you’re more comfortable with different phases from my life journey,
that wherever the river takes you, you not knowing where the river is taking you. so that you have a better sense of how
have the tools and inner resources to swim In the process you become the person I have chosen to dance on the river and
in the deeper waters and swifter currents. you’ve always wanted to be, fully present navigate life’s changes.
♦ Be Willing to Be Connected. You with life, and passionate about living. What you just read was excerpted from
Can’t Do it Alone and Why Would ♦ Embrace the Great Mystery Dancing on the River:Navigating Life’s
You Want To It’s unpredictable and you can’t figure Changes by Mark Susnow. e
We all want to feel that we belong and it out. But you can try and that’s what © 2010 Mark Susnow. All Rights Reserved.
that we are loved. When you allow yourself keeps most of us engaged. Like many of Reference # 03M-2010-11-03-01
e
EFFECTIVE EXECUTIVE NOVEMBER 2010 20
Effective Excutive_Nov_10.pmd 20 10/4/2010, 11:58 AM

19. EFFECTIVE EXECUTIVE NOVEMBER 2010 21
Effective Excutive_Nov_10.pmd 21 10/4/2010, 11:58 AM

20. VIEW
nter
If we want to emphasize the word ‘guru,’ then we are not looking at
someone just for his/her ability to identify problems and
opportunities, develop a strategy, and execute it effectively in his/
her organization. The word ‘guru’ has the connotation of someone
who removes the ignorance of others or enlightens others.
‘The Thinkers 50’ list, produced by Suntop Media in association with Skillsoft,
is supposed to be a definitive guide to who is the most influential living
management thinker. And this list changes every year. What do the changing
names mean for the world of business – that the old thinkers’ ideas have
become irrelevant or that new breed of management thinkers have emerged?
With respect to changing names, I am not sure the rankings change as much over time
as one might think. For instance, 17 individuals, representing 16 ranks,1 have been in
The Thinkers 50 list in each of the five surveys dating back to 2001. Over roughly the
past decade, a third of ‘The Thinkers 50’ list has consisted of the same group of
individuals! The data appears to suggest that some management ideas have longer
traction and they seem to influence management practices over a period of time. Not
only have some of the thinkers routinely been included in the list, but also they are
considered the cream of the crop. Management gurus like Prahalad, Hamel, Porter,
1
Nordstrom and Ridderstrale share a rank.
EFFECTIVE EXECUTIVE NOVEMBER 2010 22
Effective Excutive_Nov_10.pmd 22 10/4/2010, 11:58 AM