Rupert Murdoch is not exactly putting his money where his mouth is with 21st Century Fox’s unsolicited $80bn offer for Time Warner. By offering non-voting Fox shares as part of the cash-and-stock bid he has made clear that he will not risk his voting grip on his family-controlled company. Read more
Madeleine Albright, former US secretary of state, famously said there was “a special place in hell” for women who don’t help other women. But new research suggests that women leaders – and managers from ethnic minorities – will also be damned if they go out of their way to advance people who look like them.
A paper to be presented at next month’s Academy of Management annual meeting says women and non-white leaders who value diversity – and show it through their actions – are “systematically penalised with lower performance ratings” by their bosses. By contrast, valuing diversity earns white men higher ratings for both warmth and performance. The net effect, however, is that the “glass ceiling” is reinforced. Read more
When the lucrative business of advising on mergers and acquisitions was in the doldrums, consultants spread the idea that crisis management was “the new M&A”. They wielded news stories such as BP’s Gulf of Mexico oil spill, Rolls-Royce’s disintegrating Qantas engine, and Toyota’s jammed accelerator pedals to frighten clients into contracts aimed at helping them cope with such disasters.
While waiting in a big Manhattan hospital about 15 years ago, I glimpsed the chairman of one of the world’s biggest banks in a consulting room. I never found out why he was there. If he was ill, his employer never said and the man is now enjoying a long and apparently healthy retirement.
Pale, male and stale: what's next for the boardroom?
As boards gradually move towards better balance by gender, what is the next frontier?
Alan Mak, a 30-year-old non-executive director of Havas Worldwide (UK), thinks boards should make it a priority to take on more young directors. He and I have gone head-to-head on the issue in print and we took the debate onto Twitter on Thursday to test the mood. Read more
What puzzles me about Sports Direct’s campaign to pay founder Mike Ashley a bonus – which finally succeeded on Wednesday, despite shareholder opposition – is that it focuses City attention on the weak spots in the sports retailer’s make-up: its governance and its dependence on Mr Ashley himself. Read more
When I sat down with colleagues this year to review a “longlist” of applicants for the Financial Times’ editorial trainee scheme, we agreed on one thing: any of the 50 candidates left in the running would be a worthy recruit. Yet following months of due diligence by FT staff, including writing tests and, for some, interviews, 48 were bound to receive a rejection letter.
The Innovator’s Dilemma was published in 1997, so when The New Yorker last week printed a detailed dissection of disruptive innovation, the idea at the heart of Clayton Christensen’s book, my first reaction was: what took critics so long?
Clayton Christensen (Peter Foley/Bloomberg)
Clay Christensen is a gentle man, of devout Mormon faith, prone to sentimentality and beloved by many – not least for his lessons to students on how to find fulfilment, which he turned into an unexpected bestseller, How Will You Measure Your Life?
But the avuncular Harvard Business School star is hot under the collar about this week’s New Yorker attack on the book (The Innovator’s Dilemma) and theory (disruptive innovation) for which he is best known.
What seems to have made him particularly angry is the fact that the author, Jill Lepore, who is also a Harvard academic, did not drop by to chat to him about her detailed allegations that his theory does not stand up. Read more
Isis infographic detailing attacks by type (Institute for the Study of War)
Chilling though it is to read how the Islamic State of Iraq and the Levant (Isis) records its military and terrorist successes in a sort of company report, it is hardly surprising.
Isis, for all its brutality, is an organisation. Organisations need managing, and – in the words of management writer Peter Drucker – “what gets measured, gets managed”.
The Institute for the Study of War, the US-based group that analysed the Isis annual reports, actually headlined its briefing “Isis Annual Reports Reveal a Metrics-Driven Military Command”.
As interpreted by the institute, Isis’s metrics serve a similar purpose to those of a company. Read more
Since the financial crisis, the only politically palatable response to corporate malfeasance has been to add more pages to the rule book. Last week, for example, George Osborne, Britain’s chancellor of the exchequer, said he would make manipulation of foreign exchange and other benchmarks a criminal offence.
Outsiders have been marvelling at the uncanny skills of robots for decades. In 1978, commentators on the FT’s “Technical Page” were wowed by a machine called Puma (“programmable universal manipulator for assembly”) that had the “dexterity and accuracy [to] insert lamps into automobile instrument panels”. These days, Puma would look about as nimble as a first world war tank. My colleague Tanya Powley writes in the last of the FT’s series on robots at work that a Danish company has developed a machine that “can pack millions of eggs without crushing them”, while lightweight collaborative robots work alongside humans.
Missing, though, from most accounts of how automation will transform the workplace is a similar sense of wonder at the dexterity of managers as they adapt their human skills to the demands of the sophisticated machinery around them. Read more
Welcome to the World Cup in Brazil, brought to you by Fifa, a corporate governance disaster that is also one of the most successful multinational enterprises on earth.
Spanish Crown Prince Felipe Photo: Reuters
A couple of royal handovers and a papal resignation and suddenly abdication – which used to have a near uniformly negative connotation – is all the rage. Read more
Stephen Immelt, brother of Jeff Immelt, chairman and chief executive of General Electric, has become the second Immelt to lead a multinational organisation – in his case the law firm Hogan Lovells.
Jeff Immelt has given his brother some advice on how to do so. In an interview with The Lawyer magazine, Steve says Jeff has a rule of three-to-five for managing GE: Read more
Self-castration was such a popular path to a high-flying advisory career in China’s imperial court that the Ming dynasty ended up having to employ lots of eunuchs it could not afford.
Early in her career at Apollo Hospitals, Preetha Reddy, then aged 30, went to question a senior doctor. Affronted about being interrogated by a manager half his age, he quit the next day. It taught Ms Reddy, now managing director of the Indian healthcare group, to practise “the art of listening” before confronting a more experienced team member with new ideas.
Graves at the Père-Lachaise-cemetery in Paris
I’ve been wondering about the most suitable place to commemorate the death of the Omnicom-Publicis deal. How about Père Lachaise cemetery in Paris, where Oscar Wilde and The Doors’ Jim Morrison are buried?
A photo of Maurice Lévy and John Wren, respectively the bosses of Publicis and Omnicom, thumbing their noses at each other against a backdrop of moss-covered tombs would be just as appropriate in its way as the infamous deal-announcement image of the two men toasting one another, with the Arc de Triomphe in the background. Read more
The recent history of Britain’s Co-operative Group is so peculiar it is tempting to paraphrase the opening lines of Anna Karenina – “Happy companies are all alike and every unhappy company is unhappy in its own way” – and dismiss it as a management aberration.
Managers are notorious for prioritising short-term demands when they clash with long-term goals. Research in the US has shown that most executives would shy away from a value-enhancing long-term project if it caused them to miss a quarterly earnings forecast.
How companies can manage such clashes was the subject of a “Strategy Live” debate organised by the Financial Times in London this morning. Chaired by management editor Andrew Hill, the session featured senior figures from finance and industry, who spoke on a non-attributable basis under the Chatham House rule.
Participants used the example of Barclays to launch a broader debate, examining its controversial decision to increase bonuses to its investment bankers even as it – seemingly paradoxically – tried to move to a less abrasive, more long-termist culture. Read more