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essay social psychology brehm

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Essay social psychology brehm

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Building Breakthrough Businesses Within Established Organizations. Why did toy and essay psychology, gaming giant Hasbro unload its new software division at a rock-bottom price just five years after launching it? Like many other established companies, Hasbro learned the hard way that new ventures rarely coexist peacefully with the core businesses that launched them. Dissertation! The company failed to nurture its nascent division—and the venture stumbled badly. Innovative ideas aren’t enough to fuel breakthrough growth in a new business. To thrive, new ventures must surmount three challenges: Forget some of what has made your core business successful—such as which skills to acquire and essay psychology, which customers to serve. Essay Questions! Borrow only those assets from your core business—brands, sales relationships, manufacturing capacity—that provide a distinct competitive advantage. Learn quickly.

The faster you resolve your venture’s inevitable unknowns, the social brehm, sooner you’ll zero in on a winning business model. Ben Franklin! To master these challenges, you must redesign virtually every aspect of psychology, your new business—from hiring, performance evaluation, and budgeting to compensation, definitions of success, and reporting relationships. Hard work? Yes. But the payoff is worth it. By artfully blending forgetting, borrowing, and learning, the New York Times Company’s new Internet division turned around a dismal start and generated profits just a few years after launch. The Idea in Practice. Joseph A 1200 Essay! To translate breakthrough business ideas into breakthrough growth: Your new venture has unique answers to the questions “Who’s our customer?” “What value do we offer?” and “How do we deliver that value?” Yet institutional memory (stories about the essay psychology, established company’s history, or traditional performance measures) can prevent the typed essay, new business’s leaders from forgetting the old answers. Essay Psychology Brehm! Your strategy? Restructure the joseph typed word essay, nascent division.

Example: Corning launched Corning Microarray Technologies (CMT) to make glass laboratory apparatus for the emerging genomics industry. Psychology! CMT stumbled initially, after adopting Corning’s traditional product-development model—which didn’t apply to genomics work. Essays! Only after Corning restructured CMT did the division launch a successful product. Changes included appointing a new general manager, who facilitated communication between businesspeople and scientists and consolidated far-flung CMT employees to essay social brehm develop a unique culture. Borrow assets from your core business only if they afford such a competitive advantage that you’d highlight it in a pitch to outside investors. Typically just one or two areas (e.g., Corning’s expertise in glass manufacturing) will meet this criterion. Once you’ve borrowed, manage the resulting tensions between your new and old businesses. Example: When the New York Times Company’s Internet business, New York Times Digital (NYTD), borrowed the newspaper’s branded content and advertiser base, an “us versus them” undertone developed.

The paper’s editorial staff worried about protecting its brand; its circulation department accused the joseph typed a 1200, Internet business (which offered free content) of cannibalizing newspaper subscriptions. To manage the tension, company leaders conducted analyses showing that the Web site was generating new newspaper subscriptions. And during performance reviews, managers stressed the importance of cross-unit collaboration. Results? After becoming profitable, NYTD began generating $30 million-plus annually on revenues of $100 million. By analyzing disparities between your new business’s predicted and actual performance, you can develop a winning business model or exit a hopeless situation in time. Expect that early predictions will be wild guesses. Resist the temptation to discard them: In time, your guesses become informed estimates and then reliable forecasts. To accelerate learning, create and review simple business plans at frequent intervals. Evaluate your new division’s and core business’s performance in separate meetings.

Don’t judge performance of the nascent unit’s leader against standards used in the old business. Instead, evaluate his or her ability to learn and make good decisions. Few business narratives are more evocative than that of the inspired leader boldly pursuing an extraordinarily innovative idea. So romantic is the notion that companies pushing for more innovation often devote the bulk of their energies and resources to generating ideas and essay psychology, encouraging individual initiatives. This is a good start, but nothing more. New businesses with the potential to dissertation deliver breakthrough growth for established companies face stiff headwinds well after launch. Essay Brehm! Ray Stata, a cofounder of Analog Devices, the thesis generator the university of, $2 billion semiconductor company, has lived this challenge for decades: “I came to the conclusion long ago that limits to innovation have less to do with technology or creativity than organizational agility. Inspired individuals can only brehm, do so much.” Emphasis must shift: from ideas to execution and from leadership excellence to organizational excellence. To find out exactly what it takes to get beyond ideas, we have spent the past five years chronicling initiatives at organizations such as the New York Times Company, Analog Devices, Corning, Hasbro, Cisco, Unilever, Kodak, Johnson Johnson, Nucor, Stora Enso, and the Thomson Corporation. We have examined best practices for managing strategic experiments—high-growth-potential new businesses that depart from an uniform organization’s current business model and that target emerging industries in essay brehm, which no clear formula exists for making a profit.

Strategic experiments constitute the highest-risk, highest-return category of innovation and require a unique managerial approach. Word Essay! We chose to focus on strategic experiments because dramatic forces such as globalization, digital technology, biotechnology, and demographic change are now creating nonlinear shifts in the economy—threatening stability but also opening up opportunities for breakthrough growth. A new business with high growth potential (let’s call it NewCo) rarely coexists gracefully with the most closely related established business unit within the company (let’s call it CoreCo). The unnatural combination creates three specific challenges for NewCo: forgetting, borrowing, and learning . NewCo must forget some of what made CoreCo successful, because NewCo and CoreCo have elemental differences. Social! NewCo must borrow some of CoreCo’s assets—the greatest advantage it has over independent start-ups. Thesis Generator Of! And NewCo must be prepared to learn some things from scratch. When Analog Devices decided to essay psychology explore opportunities presented by a new semiconductor technology, it faced all three challenges. The technology, called microelectromechanical systems (MEMS), uses a chip with microscopic moving parts that act as sensors; the first commercial application was automotive crash sensors, which launch airbags. The MEMS team at Analog Devices needed to forget, because the company’s core business model wouldn’t work for uniform essay, MEMS.

Analog Devices was accustomed to serving thousands of customers with thousands of products, many designed for essay social, custom applications. There were only a few automakers, however, and because they valued cost and reliability over customization, they needed only a few variations on the basic crash sensor. As a result, the MEMS team had to alter all of its processes for essays, selling, marketing, and manufacturing. The team also needed to psychology brehm borrow Analog Devices’ semiconductor expertise and about ben franklin, manufacturing plants. Brehm! And it needed to learn whether MEMS devices could be manufactured at a profit and to what extent markets for MEMS applications outside the automotive industry would develop. The business ultimately became profitable but not without first having to confront each of the typed essay, three challenges. Forgetting, borrowing, and learning are monumental tasks. That’s why it’s crucial for a company to leverage the power of organizational design—a term we use in its broadest sense.

In building NewCo, the CEO must be willing to challenge the status quo on an extraordinary range of essay brehm, issues: hiring, individual performance evaluation, needed competencies, reporting relationships, decision rights, planning and joseph a 1200 word essay, budgeting, business performance assessment, metrics, compensation, shared values, and shared assumptions about success. Essay Psychology Brehm! If NewCo cannot leave behind CoreCo’s formula for success, it will not find its own. The three challenges are present throughout NewCo’s awkward adolescence, from questions, launch to social profitability. And they’re present all at once, which means tackling them requires an understanding of questions about, how they’re related. Forgetting and borrowing are at odds, for example, and need to be balanced. Social! A sole focus on forgetting would suggest isolation of NewCo, while a sole focus on borrowing would suggest full integration of NewCo. Also, failure to forget cripples the learning effort. Thesis The University! If NewCo cannot leave behind CoreCo’s formula for success, it will not find its own. To build a foundation for success, NewCo must forget CoreCo’s business model.

NewCo’s answers to the fundamental questions that define a business—Who is our customer? What value do we offer? How do we deliver that value?—should be different from psychology brehm, CoreCo’s. Joseph Typed! NewCo must therefore leave behind notions about what skills and competencies are most valuable. And it must forget the relative predictability of CoreCo’s environment. It is easy to underestimate the essay social psychology brehm, magnitude of the forgetting challenge. And it is persuasive essay easy to conclude too quickly that NewCo has succeeded in essay psychology, forgetting. Awareness of the differences between NewCo and CoreCo is not enough. Forgetting is about changing behavior.

Often, we have observed, NewCo talks like NewCo but acts like CoreCo. Cotton Mather! Many powerful sources of social psychology, institutional memory—instincts developed through past experiences, relationships between employees that are grounded in CoreCo’s business model, performance measures, planning templates, norms for uniform, individual performance evaluation, and even often-told stories about the company’s history—can interfere with forgetting. Some companies have especially strong memories. (See the sidebar “Warning Signs That Forgetting Will Be an Uphill Battle.”) Warning Signs That Forgetting Will Be an social psychology brehm Uphill Battle. The company has only persuasive essay, one business model. All business units within the company are at similar points in the business life cycle (starting up, rapidly growing, steadily expanding, maturing, or declining). CoreCo has well-established standards of business performance that do not apply to NewCo—often because NewCo has a different cost structure.

The company has a well-defined culture and psychology, has effective socialization mechanisms built into typed word essay, its hiring and acquisition processes. The company has a history of promoting primarily from within. The company has a strong culture of psychology, holding people accountable to essay questions plans. Many firms make the mistake of essay social brehm, duplicating CoreCo’s organizational design when they create NewCo. Questions Ben Franklin! Doing so minimizes hassles, since making NewCo an exception to rules about social brehm, such things as hiring, compensation, and generator the university, status can lead to resistance, even resentment, within CoreCo. But the only way to erase memory is to brehm overhaul NewCo’s organizational design. To understand what it takes to forget, consider Corning’s venture into the genomics industry. Typed A 1200 Word! Through the 1990s, advances in biotechnology spawned an industry dedicated to serving the psychology brehm, needs of genomics researchers, who were trying to unlock the secrets of DNA and ben franklin, unleash a revolution in medical therapies. Millions of new experiments became possible, and researchers desperately wanted to automate and essay brehm, accelerate the experimentation process. One crucial piece of joseph typed a 1200 word, laboratory apparatus was the DNA microarray—a glass slide with thousands of tiny DNA samples adhered to it.

Because of issues of quality, reliability, and ease of use, many researchers “printed” their own microarrays—a time-consuming and costly process. The opportunity for Corning was clear: to leverage its world-class expertise in specialty glass and microscopic manufacturing processes so it could offer genomics researchers a reliable and essay psychology, inexpensive supply of uniform, microarrays. When Corning launched Corning Microarray Technologies (CMT) in 1998, analysts were projecting explosive growth for the industry. Over the years, Corning had been effective in part because its business units shared a common formula for success. Essay Social Psychology! Each sold components to dissertation industrial manufacturers. Each emphasized high quality and reliability. Each depended on social psychology, strong intellectual property rights that limited competition. Each relied on excellence in the manufacture of glass and ceramics and on mastery of related scientific fields. Each planned in a disciplined fashion, and each held managers accountable to those plans.

But CMT was different. Cotton Essays! CMT sold to an unfamiliar customer—senior laboratory administrators. It needed to emphasize cost and convenience instead of the highest possible quality. It had to essay brehm work in an unfamiliar, emerging scientific field where patent protection was unlikely. It needed to balance expertise in glass manufacturing with expertise in molecular biology. And it faced a much higher level of ambiguity. The differences between Corning and CMT are clear in a 1200 word, hindsight. But at the time, Corning naturally assumed that what had worked for its established business units would also work for CMT.

Therefore, CMT had its own manufacturing, sales, and marketing functions and shared Corning’s centralized research and development functions. CMT also adopted Corning’s rigorous five-stage model for new product development, along with clear expectations for hitting certain milestones. Because CMT was small, it reported to the existing life sciences business unit. Corning did depart from its tradition of hiring and promoting from within—CMT hired several outside experts in molecular biology, many of whom were assigned to the centralized RD groups—but all management positions were filled by Corning insiders. Essay Social! As a result, CMT did not develop a culture or identity that was noticeably different from Corning’s. Nonetheless, within months, CMT achieved its first success. It offered researchers who printed their own microarrays a much-improved un printed glass slide (without DNA adhered to it) with a special coating. Customers were thrilled with the improved consistency they achieved in printing their own microarrays. Ambitions for CMT escalated.

Its leaders thought that if they simply stuck to the plan, breakthrough growth and profitability would certainly follow. But CMT soon faced unanticipated difficulties. Working with DNA presented unfamiliar challenges. DNA from different suppliers had chemical inconsistencies, and Corning’s usual methods for essay questions, identifying and correcting manufacturing problems were confounded by the peculiarities of DNA fluid. Essay Social! One day the process would appear to be working fine; the next day a mysterious new problem would arise. Soon CMT started missing deadlines established in phrases, the business plan. The leadership team felt intense pressure.

Corning held managers accountable to the plan. Falling short was failing. Plus, falling behind meant that CMT would drag down the essay, profitability of Corning’s life sciences unit, which was just as concerned about hitting its numbers. Rather than reexamine fundamental choices, which would have meant admitting failure and cotton mather essays, asking for more capital, CMT leaders viewed their struggles as minor setbacks, and they urged their team to work harder. Despite the high level of urgency, CMT was unable to psychology brehm meet expectations. Persuasive Essay! In an environment of perceived failure, the cohesiveness of the leadership group frayed.

The team often settled disagreements by reverting to what had worked in the past. Antagonism also developed between the molecular biology experts that CMT had hired from outside Corning and the CMT leadership team. The molecular biologists took issue with the way the leadership team allocated resources and evaluated outcomes. The biologists also disagreed with decisions to delay product launches to achieve quality standards they knew to be unnecessary in the imperfect world of biotechnology. All of CMT’s struggles stemmed from failures to forget. And all were probably inevitable from the moment CMT adopted Corning’s organizational design. Two years into CMT’s operations, turnover in Corning’s senior staff led to a reevaluation. Corning’s leaders decided to rebuild the CMT organization. First, they appointed a new general manager, someone who had the ability to manage in ambiguous contexts and social psychology brehm, had a knack for facilitating communication between businesspeople, engineers, and scientists. Second, they reduced the cotton essays, extent to essay social psychology brehm which CMT was integrated with the existing research and development functions by having CMT’s heads of RD report to CMT’s general manager. Thesis Generator! Third, they changed to more subjective criteria for psychology, evaluating the general manager’s performance, focusing on factors such as how quickly he learned and made adjustments.

Fourth, the general manager no longer reported to the head of the life sciences business but to the president of Corning Technologies, who would dedicate significant time and energy to advising CMT. CMT’s new general manager subsequently made his own changes. He hired an outside molecular biology expert to manage the product development effort and another to about manage relationships with suppliers. He also moved numerous CMT employees working in distant Corning facilities back to Corning, New York, to help CMT develop a distinct culture. All of essay brehm, these changes took several months, but it was time well spent. CMT was able to restructure its relationships between research, development, marketing, and sales and to follow a more iterative innovation process. The molecular biologists were given a stronger voice and essay questions about, were able to essay help CMT make more rapid technical progress. And Corning’s senior management team treated CMT’s projections as though they were informed estimates rather than a nonnegotiable basis for judging performance. Knowing that he would be evaluated on ben franklin, how quickly he learned and made adjustments, CMT’s general manager frequently updated the president on essay social, setbacks, lessons, and new directions. When CMT launched its first microarray product in September 2000, customers rated the cotton essays, product a “home run.” From studying Corning’s experience—and comparing it to similar efforts at other companies—we have isolated a number of best practices for forgetting: NewCo should hire outsiders in key management roles and strongly consider an outsider to head the business.

Outsiders challenge institutional memory and are instrumental in building new competencies. NewCo should report at least one level above CoreCo in order to reduce the essay psychology brehm, pressures on NewCo for short-term results and to ensure that CoreCo does not hoard resources. NewCo should reconsider how major business functions such as marketing and product development interact. Established patterns of interaction within CoreCo are usually incompatible with the questions ben franklin, new business model. Essay Social! The company should not base NewCo’s performance on CoreCo’s metrics. Doing so reinforces CoreCo’s formula for success, not NewCo’s.

The company should not judge the performance of NewCo’s leader too heavily against plans. Promote new thinking about success. NewCo’s leader should create a unique set of beliefs about actions that lead to joseph typed a 1200 success and regularly reinforce them. CoreCo’s beliefs may not apply in NewCo’s environment. NewCo forgets most easily if it is isolated from essay psychology brehm, CoreCo. But complete separation is impractical. Essay About! CoreCo’s tremendous resources are too valuable to essay social brehm ignore.

NewCo could borrow a lot from CoreCo—everything from unique assets such as a brand, a network of sales relationships, and manufacturing capacity, to more routine items such as hiring policies, accounting systems, and purchasing processes. Generator! We suggest a more measured approach. Borrow too much, and it becomes too hard to forget. NewCo should borrow when it can gain a crucial competitive advantage—crucial enough that the company would highlight it in a pitch to outside investors. Corning, for example, could not credibly talk to shareholders about its investment in CMT without directing attention to its existing expertise in glass manufacturing. That’s a sign that Corning’s expertise in glass manufacturing is something CMT should borrow. Usually, there are only one or two such areas that meet this criteria. Social Psychology! Incremental cost reductions are never sufficient justification for borrowing. Links between NewCo and CoreCo should be selected carefully because if NewCo has been properly designed to forget, interactions will be difficult to manage. In fact, once the links are in place, the crux of the borrowing challenge then becomes anticipating the mather essays, tensions between NewCo and CoreCo—and never allowing them to escalate beyond productive levels. Managing these interactions deserves substantial attention from essay brehm, senior management.

Otherwise, cooperation between NewCo and CoreCo can easily disintegrate. The story of the thesis generator of, New York Times Company’s venture into the interactive world demonstrates the difficulties of borrowing. The company launched its Internet business unit, eventually named New York Times Digital (NYTD), in 1995. At first, Internet operations were kept closely integrated with newspaper operations. The Internet team prepared content by altering headlines, adding hyperlinks, resizing photos, changing captions, and so forth, keeping the Web site up-to-date throughout the night until the final edition went to press. NYTD added many new features in the early years, but it soon started lagging behind competitors, which were more fully utilizing the rapidly expanding capability of the Internet. Brehm! Though the NYTD staff pushed to keep pace, it felt constrained to a simple “” operation. Soon, the company decided on a complete organizational overhaul, choosing an approach similar to dissertation phrases Corning’s. The head of NYTD began reporting directly to the president rather than to essay psychology brehm the general manager of the Times . NYTD’s managers created their own policy team, including a CFO and heads of joseph essay, human resources and business development.

They hired so many outsiders with Internet experience that, by the end of 2000, only one-fourth of the essay social, staff had come through internal transfers. They altered planning norms and focused on different measures of performance. They moved to a separate building. And they made an dissertation effort to redefine their culture and values. An explosion of creativity followed. The NYTD employees were now operating under the essay social brehm, assumption that they served a different set of cotton mather essays, readers and advertisers than the essay social brehm, Times and met distinct needs. They experimented with potential revenue sources and added a great deal of content that was not in the daily newspaper, including material from other news sources, audio and video content, interactive features, continuous news breaks, and Times archives.

Unfortunately, the organizational overhaul that enabled NYTD to forget also hindered its borrowing. Tensions heightened in thesis generator from of, the daily interactions between NYTD and the Times . And borrowing was absolutely crucial. NYTD needed two links in essay social, particular to dissertation the Times . Most obvious, NYTD could not survive without the newspaper’s branded content, the main attraction for social psychology brehm, its readers. And NYTD needed to uniform essay tap into the newspaper’s existing base of advertisers, which required the coordination of sales processes. Some tensions arose from substantive business conflicts. For example, the Times circulation department, quite understandably, was not enamored with NYTD.

Making newspaper content available on psychology, the Internet at no charge gave people a powerful reason not to typed subscribe to the print version of the newspaper. Also, the Times editorial staff was concerned about protecting the newspaper’s brand. NYTD was primarily a software operation and, as such, was designed to encourage cross-functional collaboration, something strictly limited within the newspaper to ensure that journalism was not influenced by commercial pressures. Finally, the Times group that sold display advertisements (as opposed to classifieds) viewed coordination with the NYTD sales team as a distraction, since the essay social, Times print ads were much bigger sources of revenue. Tensions rooted in rivalry were also disruptive. NYTD received a great deal of media attention, especially when the company proposed, though never launched, a NYTD tracking stock that would have given NYTD employees a chance at a large payoff. And because NYTD had made it so clear that it was trying to essays build a different kind of organization, interactions took on an “us versus them” undertone. Essay Social Psychology! NYTD communicated that it aimed to be fast moving, antibureaucratic, risk taking, and experimental. Naturally, the Times aspired to be the same and winced at the implication that it was not.

These tensions are hardly unique. They are an essay inevitable part of the challenge of managing strategic experiments. We observed similar tensions in every company we studied. (For more on these tensions, see the sidebar “Warning Signs That Borrowing Will Be an Uphill Battle.”) Warning Signs That Borrowing Will Be an Uphill Battle. CoreCo perceives that NewCo will cannibalize CoreCo revenues. Essay Social! CoreCo perceives that NewCo could render a CoreCo competence obsolete. CoreCo perceives that NewCo might damage CoreCo assets, such as brands or customer relationships. NewCo’s losses are rising, even as its leaders are succeeding in growing revenues, and CoreCo managers are questioning the joseph word, wisdom of brehm, allocating capital to a business incurring a loss. Bonuses tied to essay corporate profits exacerbate the social psychology, situation. Cotton! Resources are scarce or becoming scarcer as CoreCo goes through a downturn. CoreCo is resistant to allocating capital, manufacturing capacity, employee time, and other resources for NewCo. CoreCo managers are unfamiliar with the varying needs of units at different stages in the business life cycle, such as the need to social evaluate business performance differently, the need to place more emphasis on flexibility than on efficiency, and cotton, the need to hire, promote, and compensate based on unique criteria.

In fact, if NewCo managers receive large bonuses when NewCo succeeds, CoreCo may specifically resent the fact that NewCo’s success was dependent upon essay brehm, CoreCo resources. Essay! Establishing trust between CoreCo and NewCo, two very different organizations, is social psychology proving difficult. CoreCo managers are jealous of NewCo. This is likely if NewCo starts to receive strong public endorsements from analysts, the press, outside consultants, or the CEO. CoreCo managers have worked for years or decades to advance within CoreCo, and now CoreCo may appear inferior to a much younger and sexier division. Stereotypes persist about the capabilities of new and old companies. NewCo may assume that big companies cannot be agile or entrepreneurial, and CoreCo may insist that status should be based solely on resources under command. Such attitudes rarely constitute healthy rivalry—and they can easily disrupt cooperation. Dissertation Phrases! CoreCo is so disciplined about process efficiency that it refuses to alter any processes on NewCo’s behalf. Whereas other companies in our research struggled to create effective cooperation, the New York Times Company succeeded because the senior management team acknowledged and proactively managed the tensions.

The president, in social, particular, closely monitored interactions between NYTD and the Times and intervened when necessary to a 1200 essay keep interactions productive. Essay Psychology Brehm! In addition, in performance reviews of individual managers, the company stressed collaborating across business units. And to minimize tensions over essay subscription cannibalization, the senior management team conducted an analysis showing that cannibalization was minimal and that the Web site was actually generating new subscriptions by inducing trial use of the product online. In most cases, the essay social brehm, company empowered NYTD in phrases, its interactions with the Times . For example, to help NYTD establish a clear price in the market, the senior management team prohibited any initiative on social, the part of the Times to give away Web advertising as part of a larger print advertising package. (Editorial was one area where the company didn’t empower NYTD. The University Of! To protect the Times brand, the newspaper retained substantial control over alterations to editorial content on the Web site.) NYTD reached profitability in 2001, in part because company leaders carefully managed interactions between NYTD and the Times . By 2004, NYTD was earning more than $30 million annually on revenues of approximately $100 million. Ultimately, NewCo has a much better chance of success when it can leverage CoreCo’s assets. The trick, however, is social borrowing only where the uniform essay, leverage is highest and ensuring that the social psychology brehm, senior management team is engaged in uniform persuasive, monitoring and facilitating. By comparing the New York Times’ approach to those of other companies we studied, we were able to essay psychology identify a number of best practices for borrowing: Balance the yin of phrases, forgetting with the yang of borrowing. Create links, yes, but only to lend NewCo a crucial competitive advantage.

Avoid links where conflicts are severe. Avoid links to the IT or HR departments. Reinforce values that NewCo and social, CoreCo share. In most cases, CoreCo will have some values that are inconsistent with NewCo’s business model. Still, the senior management team can facilitate cooperation by questions about creating a “metaculture” composed of more general values. To promote collaboration, reconsider individual incentives. Evaluate and reward CoreCo managers, in part, according to their willingness to cooperate with NewCo. Avoid strong incentives tied strictly to CoreCo’s short-term performance. To eliminate resistance from CoreCo’s general manager, make borrowing as painless as possible so that he can focus strictly on CoreCo.

Replenish CoreCo’s resources when NewCo borrows heavily. Set transfer prices high enough to ensure that CoreCo will consider it a priority to social psychology brehm help NewCo but not so high that NewCo cannot realistically achieve profitability. NewCo’s profitability is a powerful symbol. About! CoreCo will always be more enthusiastic about helping when there is evidence that NewCo is succeeding. Assign a senior executive to social psychology brehm anticipate tensions between NewCo and CoreCo and to intervene should those tensions become destructive. The senior executive must be willing to persuasive essay commit a lot of time and energy and must be influential and social psychology, respected within the corporation. She must continually explain the rationale for the differences between NewCo and CoreCo. Unless NewCo is in danger of damaging one of about, CoreCo’s assets, particularly a brand, empower NewCo in its interactions with CoreCo. Without intervention, power will naturally shift back to psychology brehm the larger, more entrenched CoreCo. Strategic experiments are highly uncertain endeavors. Regardless of the level of questions ben franklin, prior research and analysis, NewCo will face several critical unknowns.

The faster it can resolve these unknowns—that is, the social psychology, faster it learns—the sooner it will zero in on a winning business model or exit a hopeless situation. Any new business has a great deal to learn—new skills to hone, new processes to generator perfect, new relationships to master. These are important. But the essay psychology brehm, fundamental uncertainties in the business model itself will make or break the business. NewCo’s leaders can resolve the critical unknowns most quickly by focusing on a specific task: learning to essays predict NewCo’s business outcomes. At the outset, predictions are always wild guesses.

It is not uncommon for revenue forecasts for psychology brehm, three years out to be off by brief a factor of social, ten. But as the management team learns, wild guesses become informed estimates, and dissertation phrases, informed estimates become reliable forecasts. Essay Social! (See the exhibit “Is NewCo Learning?”) Is NewCo Learning? Because predictions are bound to be wrong, especially early on, it is tempting to phrases put little effort into them or quickly discard them. This is a trap. You cannot get better at making predictions by avoiding them. Predictions are important not because of their accuracy but because of the learning opportunities they present. Essay Brehm! In fact, the crucial learning step for NewCo is analyzing disparities between predictions and outcomes. This analysis must be open and brief essay friendship, candid. And it must be conducted with speed, rigor, and discipline. The learning challenge is the most difficult of the three. (See the sidebar “Warning Signs That Learning Will Be an Uphill Battle.”) In fact, none of the companies we studied implemented a robust learning process that led to the quick resolution of essay psychology brehm, critical unknowns.

Thus, in our field research, we learned much more about what can go wrong than what can go right. Dissertation! The story of Hasbro Interactive illustrates several of the possible pitfalls associated with learning. Warning Signs That Learning Will Be an Uphill Battle. NewCo’s leader perceives that NewCo is in a tremendous rush to social psychology brehm get to market first—and therefore has little time for planning. The company has a tradition of very detailed and friendship, exact planning. The company has a history of insisting on social brehm, common planning approaches for every business unit. Data on essay, NewCo’s performance (other than financials) are difficult to gather or highly ambiguous. The nature of essay social brehm, NewCo’s business is such that it demands major onetime commitments and thus has little opportunity to change direction.

The company strongly penalizes managers who fail to make their numbers. Phrases! One or more measures of business performance are viewed as important throughout the company. Senior executives judge NewCo by the same measures, even though the measures are probably irrelevant to NewCo. Essay Social Brehm! In 1995, Hasbro’s traditional game business, with iconic brands such as Scrabble and Monopoly, was under threat. The ubiquitous PC, with its rapidly expanding multimedia capabilities, appeared to be the future of gaming. Viewing the threat as an opportunity, Hasbro created Hasbro Interactive. Dissertation Phrases! With a distinct organizational design and limited links to the core business, Hasbro Interactive succeeded both in forgetting and borrowing. But it would soon struggle with learning. Hasbro Interactive’s initial strategy was conservative.

Executives there focused on converting existing Hasbro products to an interactive format. Social Brehm! The new products were a quick success, generating $80 million in revenues and earning a profit in 1997. A 1200 Word Essay! Hasbro touted Hasbro Interactive’s potential to psychology Wall Street analysts. The division planned to double revenues in 1998. But to get there, Hasbro Interactive would have to pursue much more experimental possibilities. Joseph A 1200! At this point, learning became even more important. Starting in early 1998, Hasbro Interactive bought licenses to essay social produce games based on television shows. They purchased old video game properties, hoping to resurrect classics from the 1980s.

They created deals with sports franchises. They acquired other video game producers. They expanded the essay about, video game platforms to serve more than just PCs. They began developing their own titles from scratch. And they invested heavily in a new Internet platform, Overall, the heightened ambition was consistent with the anything-is-possible atmosphere of the psychology, late 1990s. But the way that Hasbro Interactive pursued growth brought a tremendous number of additional unknowns into a 1200 word, the business.

For example, did Hasbro Interactive have the skills to develop products from scratch? Could it turn other companies’ products into video games as successfully as its own? How quickly would video game players migrate to the Internet? Hasbro Interactive needed an essay social effective learning process to quickly resolve these and other unknowns. Instead, it kept moving ahead aggressively for as long as possible. Brief! Results were strong once again in 1998.

Consequently, even though many of the new initiatives had yet to prove themselves, Hasbro Interactive set an social audacious target : $1 billion in revenues within three years. The goal was initially just conversational, but it affected decision making and fueled ambition. Nobody could know it at the time, but as the phrases, goal of reaching $1 billion coalesced, Hasbro Interactive entered a new period in its history—the beginning of the end. Results in the first quarter of 1999 were disappointing because of unexpectedly high returns of unsold product from retailers after the 1998 Christmas season. Senior executives at Hasbro became more alert. Social Psychology! They had many questions. Concerns heightened when Hasbro Interactive reported a significant loss at dissertation phrases the end of 1999—in the tens of millions of dollars. The pressure was on, and psychology brehm, it only got worse when Hasbro’s core business suffered a slight decline in essay, 2000. Hasbro Interactive was unable to essay brehm quickly restore profitability. It had invested a great deal in experimental opportunities and did not want to uniform abandon them before they had a realistic chance to succeed. The end came late in essay psychology, 2000, when turnover in Hasbro’s senior management team led to uniform essay a change in essay brehm, sentiment.

The new team would not endure additional losses, and Hasbro Interactive was sold at a disappointing price. Had Hasbro Interactive been engaged in dissertation phrases, a learning process from the beginning, a more favorable outcome would have been likely. The business would have been able to part with the specific initiatives that were failing, and social brehm, it could have continued to build on those that were succeeding. But Hasbro Interactive did not learn quickly because its predictions were not treated with care. They were ignored, they were manipulated, and they became too rigid. Essay About! For a variety of reasons, Hasbro Interactive ignored its own predictions. First, it dismissed the importance of social psychology brehm, making them, believing they would be wrong anyway. Its executives felt they were in brief essay friendship, an all-out race for first-mover advantage and should be focused on doing, not planning. Second, like most companies, Hasbro’s planning cycle was annual. But the planning cycle is essay social brehm also the learning cycle. Thus, Hasbro Interactive ignored the essay friendship, fundamental assumptions underlying predictions throughout the year, and learning slowed to a crawl.

A quarterly or even monthly frequency would have been a better match for essay brehm, Hasbro Interactive’s fast-changing business. Managers of brief friendship, Hasbro’s established toy and game business manipulated Hasbro Interactive’s predictions by imposing their own performance measures. Starting in 1999, Hasbro held monthly meetings to review the performance of all Hasbro business units. Naturally, the essay brehm, instinct was to evaluate Hasbro Interactive just like any other Hasbro division. For example, Hasbro placed heavy emphasis on short-term profitability—an unrealistic measure, given Hasbro Interactive’s risky initiatives.

And when Hasbro Interactive’s returns from the retail trade were excessive by toy and game standards, it looked bad—even though the terms of trade are very different in software. Finally, when Hasbro Interactive argued that its product development expenses could be capitalized rather than expensed, a practice common in the software industry, others became uncomfortable because the typed a 1200 word essay, practice was unfamiliar in toys and games. Thus, the measures that shaped the perceived performance of Hasbro Interactive were not those that could help resolve critical unknowns. Hasbro Interactive also made the social brehm, mistake of letting its predictions become too rigid . For years, Hasbro had applied relatively forgiving standards of essay friendship, accountability to plans because of the inherent unpredictability of the toy business. At the prodding of a senior executive hired from the outside, however, Hasbro had stiffened its standards, which made it unlikely that predictions for Hasbro Interactive could be revised. Leaders of potentially high-growth businesses often view themselves as bold visionaries, and this also can interfere with the necessary revision of predictions. When it became clear that 1999 revenues would fall short, Hasbro Interactive’s leader reaffirmed his belief in the original plan. He insisted on staying the essay, course and continued to promote the $1 billion goal. Brief Friendship! CEOs can also inadvertently make predictions inflexible. They may speak loudly of a new business’s potential—as Hasbro’s top executives did—both to insiders and outsiders.

The intent may be to get investors excited, or it may be to increase CoreCo’s support for social psychology brehm, NewCo. But doing so can lock in an overly aggressive prediction. The voice of the CEO is extremely powerful, and expectations can stick. Rigid predictions, especially long-term ones, often lead to “guardrail-to-guardrail” decision making—that is, aggressive investment followed by essay questions ben franklin complete abandonment. Such a pattern is the opposite of the gradual zeroing-in pattern that marks a healthy learning process. Hasbro Interactive went guardrail to guardrail in large part because of its heavy focus on essay social psychology brehm, the $1 billion revenue goal. Tensions escalated as time went by, and people’s ability to rationally assess the situation became almost impossible.

In the end, those who never believed that $1 billion was feasible managed to drown out the voices of those who saw the potential in Hasbro Interactive—and Hasbro Interactive was abandoned altogether. Learning is the questions ben franklin, most difficult of the three challenges. It requires stepping away from tried-and-true, disciplined, and rigorous approaches to essay planning and moving to typed a 1200 something very different but just as disciplined and rigorous. To promote effective learning: Hold separate meetings for essay brehm, evaluating the business performance of NewCo and CoreCo. These meetings must be handled very differently, and combining them can be impractical, if not destructive. Ensure that executives involved in NewCo’s planning process understand the importance of improving predictions and are aware of uniform essay, how this learning process can go astray when predictions are ignored, are manipulated, or become rigid. Evaluate the leader of essay social, NewCo not on results but on his ability to learn and make good decisions. From! Though accountability to plans is an psychology effective practice in mature businesses, it can be crippling in new high-potential businesses. If NewCo’s leader is held accountable to cotton mather essays the business plan, he will become defensive once targets are missed—a highly likely outcome in any strategic experiment.

He will have a hard time being open and essay social brehm, candid and may even hide information, perhaps even taking the senior management team out of the learning process altogether. Though accountability to a 1200 plans is an effective practice in mature businesses, it can be crippling in new high-potential businesses. That is, simplify plans, but plan more often. Each cycle through the planning process creates a learning opportunity, so planning more frequently increases the learning rate. To make a higher frequency practical, plans must be simplified. Essay! Detailed plans (broken down by region, product line, sales channel, and so forth) are useful for mature businesses, but NewCo should focus on resolving critical unknowns, which can be accomplished at ben franklin a more aggregate level. Compare predicted and actual trends . Essay Social Psychology! Because strategic experiments are dynamic, rates of change are often more valuable information than current results. Thesis The University! Identify metrics that are most useful in resolving critical unknowns. Social Psychology Brehm! These are usually nonfinancial measures and are rarely the most closely watched metrics at brief friendship CoreCo. • • • Opportunities to lead strategic experiments do not come along every day. In fact, we have encountered very few managers who have led such experiments more than once. Strategic experiments are adventures, and they are challenging—perhaps the “triple flip with a quadruple twist” of general management.

Thus, it is imperative that companies try to learn from brehm, others’ experiences. The central lesson of history is this: To convert breakthrough ideas into dissertation phrases, breakthrough growth, you must forget, borrow, and brehm, learn. Each has straightforward principles. Today’s executives celebrate an friendship innovation myth focused on social psychology, gifted visionaries. But the capabilities of the mather essays, organizations that surround these visionaries will make or break the visions.

Vijay Govindarajan is the Coxe Distinguished Professor at Dartmouth#8217;s Tuck School of Business and a Marvin Bower Fellow at Harvard Business School. He is the essay psychology, author of uniform persuasive essay, The Three Box Solution: A Strategy for Leading Innovation (HBR Press, April 2016). Chris Trimble is on the faculties of the Tuck School of Business at Dartmouth and the Dartmouth Institute for Health Policy and Clinical Practice. He is the psychology, author of How Physicians Can Fix Health Care: One Innovation at a Time .

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What are the pros and essay social, cons of selecting it? List the. Pros (reasons to use this story) Cons (reasons NOT to use this story) I have compiled several frameworks that my clients use to structure their essay and a 1200, interview answers. Use them, but do not abuse them. Once you understand the method of telling stories with a clear beginning, middle, and end, I suggest you abandon these tools and practice speaking in a natural and spontaneous way. Remember, your interview is a conversation. Do you enjoy meeting new people? Show your interpersonal skills at the interview - you can impress your interviewer and social psychology, boost your chances of dissertation phrases admission. PAR stands for Problem-Action-Results.

First you state the problem that existed in your workplace, then you describe what you did about it, and finally you point out the essay psychology brehm, beneficial results. Here’s an example: “Transformed a disorganized, inefficient warehouse into a smooth-running operation by totally redesigning the layout; this saved the company thousands of dollars in recovered stock.” Another example: “Improved an engineering company’s obsolete filing system by developing a simple but sophisticated functional-coding system. This saved time and money by questions about recovering valuable, previously lost, project records.” For each accomplishment, write out not only social psychology, what you did (the key skills and actions you took), but describe the problem as well as the result. Accomplishment statements can highlight one primary action and result or may contain a few lines of thesis from information that stress additional skills and specific results. Use the Problem-Action-Result (PAR) approach for each accomplishment.

State the Problem - (The challenge, need, opportunity or goal.) Aim to state the main problem/challenge in essay social psychology one to two sentences. This provides the friendship, context for the actions you took. State the Key Actions Performed - (Begin each sentence with a key skill word.) This helps to target your skills to essay, the requirements of the job. State the Result - (Quantify the result(s) when possible.) Use percentages, numbers etc. to demonstrate the significance of your actions. If you cannot quantify the thesis generator the university of, result, try to qualify the result by stating the type of improvement you observed. Problem (in this case a need) A large non-profit agency lacked a volunteer program. Essay Social. Valuable staff time was used to perform services which volunteers could do. Action (key skills used) Researched volunteer management theories.

Interviewed volunteer coordinators. Prepared a cost/benefit analysis of hiring a coordinator to recruit and train volunteers. Drafted and uniform essay, submitted a proposal. Result (quantify or qualify benefits of your actions) The organization created a full-time position that expanded the agency services and maximized staff time. Expanded agency's service and maximized staff effectiveness by researching and recommending new volunteer program with a full-time volunteer coordinator. Incorporate your completed accomplishment statements into the body of your resume and expand upon essay social psychology these accomplishments in typed a 1200 your interview to communicate the specific skills and unique benefits you bring to the position. (found at; accessed 2009/10) I suggest using a modified PAR template: R-PAR. Put the result at the beginning. Situation: give an essay social, example of a situation you were involved in that resulted in a positive outcome Task: describe the tasks involved in that situation / what was your ultimate goal? try to define your task as narrowly as possible Action: talk about the various actions involved in the situation’s task.

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Application: when have you applied your lessons in another situation (optional in many cases but good for brainstorming to test if your learning was real). Example of essay a STAR Answer. Situation: During my internship last summer, I was responsible for managing various events. Task: I noticed that attendance at these events had dropped by 30% over the past 3 years and wanted to do something to dissertation, improve these numbers. Action: I designed a new promotional packet to essay social brehm, go out to the local community businesses.

I also included a rating sheet to mather, collect feedback on our events and organized internal round table discussions to raise awareness of the issue with our employees. Result: We utilized some of the wonderful ideas we received from the community, made our internal systems more efficient and visible and raised attendance by psychology brehm 18% the brief, first year. Problem Action Results Takeaway (what you learned) Situation Obstacle Action Result. Provide a structured framework to keep your answer clear and concise, while conveying how you effectively overcame the challenge. Situation Obstacle Failure Takeaway (what you learned) One of my writing gurus is Professor John Cochrane at The University of Chicago Booth School of Business. His Writing Tips for Ph.D. Students contains good advice for social psychology, any writer. Here are some highlights from his article. Use simple short words not big fancy words. “Use” not “utilize.” “Several” not “diverse”.

Keep down the number of clauses in your sentences, and the number of things kept hanging. Every sentence should have a subject, verb and object. About Ben Franklin. No sentences like “No sentences like this.” An essay outline is probably the most important friend you will have while writing your essay. It is the scaffolding of your paper and social psychology, the skeleton of your ideas.

It is the framework by which you will write a killer essay. And frankly, it is difficult to write one without an outline. An outline is phrases a general plan of the material that is to be presented in a speech or a paper. The outline shows the order of the various topics, the relative importance of each, and brehm, the relationship between the various parts. There are many ways to arrange the different parts of a subject. Sometimes, a chronological arrangement works well.

At other times, a spatial arrangement is best suited to the material. The most common order in outlines is to go from the general to the specific. This means you begin with a general idea and questions about, then support it with specific examples. Thesis Statement of Summarizing Sentence. All outlines should begin with a thesis statement of summarizing sentence. This thesis sentence presents the central idea of the paper. It must always be a complete, grammatical sentence, specific and brief, which expresses the point of view you are taking towards the subject.

The two main types of outlines are the topic outline and the sentence outline . In the social, topic outline, the headings are given in thesis generator from single words or brief phrases. In the social brehm, sentence outline, all the headings are expressed in complete sentences. 1. Subdivide topics by typed essay a system of brehm numbers and essay questions about, letters, followed by essay psychology a period. 2. Each heading and subheading must have at dissertation, least two parts. 3. Headings for parts of the paper of speech such as, Introduction and Conclusion, should not be used. 4. Be consistent. Do not mix up the essay, two types of outlines. Use either whole sentences of brief phrases, but not both.

Choices in College and After. Thesis : The decisions I have to make in choosing college courses, depend on larger questions I am beginning to ask myself about my life’s work. I. Two decisions described. A. Art history or chemistry. 1. Professional considerations.

2. Personal considerations. B. A third year of French? 1. Practical advantages of uniform knowing a foreign language. 2. Intellectual advantages. 3. The issue of necessity. II.

Definition of the problem. A. Decisions about occupation. B. Essay Psychology. Decisions about a kind of life to lead. III. Temporary resolution of the problem. A. To hold open a professional possibility: chemistry.

B. To take advantage of cultural gains already made: French. Choices in College and After. Thesis : The decisions I have to make in choosing college courses, depend on larger questions I am beginning to ask myself about my life’s work. I. I have two decisions to make with respect to choosing college courses in the immediate future. A. One is whether to elect a course in about ben franklin art history or in chemistry. 1. Social Psychology. One time in my life, I planned to be a chemical engineer professionally. 2. Mather Essays. On the brehm, other hand, I enjoy art and essay questions, plan to travel and see more of it.

B. The second decision is social whether to continue a third year of thesis generator from the university French beyond the basic college requirement. 1. French might be useful both in social psychology engineering and travel. 2. Furthermore, I am eager to read good books which are written in French. 3. How necessary are these considerations in essay the light of essay brehm other courses I might take instead? II. Uniform Persuasive. My problem can be put in social the form of a dilemma involving larger questions about my whole future. A. Cotton Mather Essays. On the essay social psychology brehm, one hand I want to hold a highly-trained position in joseph typed word a lucrative profession.

B. On the essay social, other hand I want to lead a certain kind of life, with capacities for values not connected with the making of money. III. I will have to make a decision balancing the conflicting needs I have described. A. I will hold open the professional possibilities by electing chemistry. B. I will improve and solidify what cultural proficiency in another language I have already gained, by electing French. An outline breaks down the cotton mather, parts of your thesis in a clear, hierarchical manner. Most students find that writing an outline before beginning the paper is most helpful in organizing one's thoughts. If your outline is psychology good, your paper should be easy to write. The basic format for an outline uses an alternating series of numbers and cotton mather essays, letters, indented accordingly, to indicate levels of importance. Here is an example of an outline on a paper about the development of Japanese theater:

I. Thesis: Japanese theater rose from a popular to essay psychology, elite and then returned to a popular art form. The thesis is stated in the first section, which is the introduction. II. Early theatrical forms A. Bugaku B. Sarugaku C. Primitive Noh D. Authors and Audience III. Noh theater A. Thesis Generator. Authors B. Props 1. Masks a. women b. demons c. old men 2. Structure of Stage C. Themes 1. Buddhist influence 2. The supernatural D. Kyogen interludes E. Audience IV. Kabuki A. Authors B. Props 1. make-up 2. special effects C. Themes 1. Love stories 2. Revenge D. Audience V. Bunraku (puppet) theater A. Authors B. Props C. Themes 1. Social Brehm. Love stories 2. Historical romances D. Audience. The body follows the introduction, and breaks down the essay, points the author wishes to make.

Note that some section have subdivisions, others do not, depending on the demands of the essay social brehm, paper. In this outline, II, III, IV all have similar structure, but this will not necessarily be true for all papers. Some may only essay about ben franklin, have three major sections, others more than the five given here. Your conclusion should restate your thesis, and never introduce new material. When you begin writing an essay outline, use the following model as a guide: II.


If you use this rough guide and fill in the blanks as you are researching your essay, you will find writing the social, essay so simple. Brief. You have all you need in essay brehm front of thesis from you. It is researched and psychology, organized. All you have to do now is fill in the blanks with transition words and smooth language. Show your essay to MBA alumni LAST, not first. They are only more qualified than me to answer one question: Why this MBA program? (Why Columbia?

Why Wharton? Why Stanford?) Remember, MBA alumni are experts on essays, their EXPERIENCE. But they do NOT know the new application essay questions, nor how to answer them them. Most of all, please please remember that the top-tier MBA admissions process, just like any highly selective sorting mechanism, is constantly changing it's algorithm. Otherwise, how else could it remain so highly competitive, especially in this age of over-sharing? Information is subject to change.

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