Editor's letter

Citation

Randall, R.M. (2009), "Editor's letter", Strategy & Leadership, Vol. 37 No. 1. https://doi.org/10.1108/sl.2009.26137aaa.001

Editor's letter

Article Type: Editor’s letter From: Strategy & Leadership, Volume 37, Issue 1

One of the balances that we try to achieve with each issue of Strategy & Leadership is to present a mix of practical and conceptual articles. I’m biased in favor of “how to” articles, but thankfully we have a diverse team of contributing editors who champion conceptual articles that challenge readers to reconsider conventional beliefs or long-held assumptions.

In one such article in this issue, Michael Raynor, director of research at Deloitte Consulting, re-examines the theory of shareholder value. His conclusion: asserting that maximizing shareholder wealth is the paramount purpose of the corporation is based on flimsy logic. His alternative proposal: the proper prime objective function of the corporation is its own survival, a notion that is sure to provoke heated debate among practitioners and academics.

There are some fascinating forewarnings about shareholder value tyranny hidden in Dale E. Zand’s case “Managing enterprise risk: why a giant failed.” The case, a “how to” guide to reducing enterprise-wide risk management, also identifies the board’s role in risk oversight and the hidden dangers of cultural complacency.

Another article that challenges conventional assumptions is, “The new demography of the 21st century: part 2 – gender gaps and population bulges – what demography means to the corporate planner” by Martin Walker, senior director of A.T. Kearney’s Global Business Policy Council. He urges strategists to be mindful of surprising new trends – the aging of the Chinese population, the burgeoning middle class in developing countries and the gender imbalance in coming generations in China and India.

Another unexpected future that may be in store for us is examined by SRIC-BI consultants in their article, “Strategic thinking about disruptive technologies.” The article demonstrates SRIC-BI’s opportunity-discovery process and provides a “how-to” guide for assessing the commercialization possibilities of disruptive technologies and understanding their uncertainties. The authors focus on a little-known field, biogerontechnology, and find that research is likely to change how long and how well people live, with rather dramatic consequences for our society and for many industries.

So if you live longer, you’ll likely need a second career. If you pride yourself on your management skills, please direct your attention to an article is this issue, “How visionary nonprofits leaders are learning to enhance management capabilities ” by Bridgespan consultants Daniel Stid and Jeffrey Bradach. It’s a must read for any top-flight corporate manager who is thinking about joining the nonprofit sector. The thesis of the article is that many of the nonprofits run by charismatic founders have realized that they are strongly led, but under-managed. This establishes a career path for exceptional veteran corporate managers who would like to implement best practices and coach stellar performance from nonprofits. Of course if you are leading a nonprofit, the article will serve as a “how to” guide for bringing management discipline into the organization.

And for more “how to” I recommend “How teams can capitalize on conflict” by Tim Flanagan and Craig Runde, authors of Becoming a Conflict Competent Leader and also Building Conflict Competent Teams. They observe that team diversity, which increases the likelihood of divergent perspectives, is simultaneously a strength and a challenge. When innovative alternatives are being analyzed and challenged, conflict is a symptom of a healthy creative process. So the two questions leaders should be asking are, 1) whether teams are experiencing enough conflict and 2) how can conflict be productively managed?

Good reading.

Robert M. RandallEditor