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
When Ellen Kullman, chief executive of DuPont, asked a contract worker on the production line making Kevlar, the fibre used in bulletproof vests, what he was doing, she got an unexpected response: “We’re saving lives.”
In the dreary annals of presentations about corporate values, ABN Amro chairman Gerrit Zalm’s recent performance for the bank’s annual cabaret as his brothel-keeping “sister” Priscilla will take some beating.
There is one question I’ve been struggling to figure out about Sir Alex Ferguson’s decision to release his second memoir: why now? Of course, he has retired but for a manager renowned for protecting his players in public while berating them in the sanctity of the dressing room, publicly naming and shaming some of the club legends has generated lots of unflattering headlines.
Sir Alex certainly wants his legacy as a leader and manager to be recognised; his methods were recently the subject of a Harvard Business Review case study.
But another reason is hinted at in one of the most revealing quotes from the book, on the loneliness of being a manager: “In management you are fragile, sometimes. You wonder whether you are valued”. Read more
I recently spent time sifting strategic plans for seven non-profit organisations, drawn up by teams of MBA students for an FT competition, the winner of which will be announced this week.
To tour the Burberry flagship store on London’s Regent Street – with its beautifully stacked clothes, its “magic mirrors” that illuminate with runway images, its signs in Arabic for Gulf tourists and its “VVIP” room on the top floor – is to enter as sweet a world as Willy Wonka’s chocolate factory.
Silvio Berlusconi and Jack Ma do not have much in common. The 77-year-old Italian politician is at the end of his leadership path; at 49, the Chinese founder of ecommerce group Alibaba may be barely halfway along it.
Tim Armstrong, chief executive of AOL, has apologised for firing Abel Lenz, creative director at the company’s Patch, in front of 1,000 co-workers.
It comes on the heels of a leaked recording that was published by Business Insider, in which Mr Armstrong is heard dismissing Mr Lenz in strong terms followed by an awkward silence. The recording went viral. Read more