Wisdom of the CEO

How Will Yahoo! Stay on Top in the Twenty-First Century? Sony? DuPont? Why Not Ask Their CEOs? Wisdom of the CEO introduces you to 29 visionaries who are actively changing today's business paradigm. These top global business leaders explain how they are confronting the eight key issues driving business today-Globalization, Growth, Shareholder Value, Innovation, E-Business, Disruptive Technology, Organization, and Knowledge Management-and give you valuable guidance for maintaining and strengthening your own company's market share. Listen to the voices of experience as they discuss hot-button issues including:
* The Internet-How will e-commerce change customer demands and expectations? K. Blake Darcy, CEO of online trading powerhouse DLJdirect, explains the new rules.
* Shareholder Value-Can a leader focus all of a company's strategic efforts on shareholder value? Sir Brian Pitman explains how managers throughout the Lloyds organization-acting as value-creation strategists-are helping him to do just that.
* Disruptive Technology-Can established companies exploit disruptive technologies as effectively as their start-up competitors? CEO Roger G. Ackerman reveals how Corning can-and does.
PricewaterhouseCoopers is renowned for its commitment to helping world-class companies make better business decisions and hone their competitive strategies. With Wisdom of the CEO, Dauphinais, Means, and Price assemble an impressive, unprecedented gathering of today's leading business minds to discuss the trends that are propelling global business into the twenty-first century-and how they are positioning their companies to take full advantage of those trends.Wie nie zuvor zählen CEOs heute zu den Berühmtheiten; sie sind Bestandteil des Selbstbewußtseins der Unternehmenswelt. Um Meinungen und Einsichten - und das nicht nur in Unternehmensfragen - aufzuspüren, wenden sich die Medien verstärkt an Spitzen-CEOs. Ein Herausgeberteam von Experten bei PricewaterhouseCoopers befriedigt hier unsere Neugier über die Männer und Frauen auf dem Höhepunkt des Erfolgs: Wie denken sie, wie managen sie ihr eigenes Unternehmen und wie setzen sie wichtige Managementideen um? Das Ergebnis ist eine Reihe von Kommentaren international bekannter CEOs zu den 8 Schlüsselgrößen der heutigen Wirtschaft: Globalisierung, Wachstum, Shareholder Value, Innovation, Organisationstalent, umwälzende Technologie, E-Business und Wissensmanagement.

Acknowledgements ix

Foreword Discerning the Agenda of the Global Economy xi
Klaus M. Schwab

Introduction Warp-Speed Change: The Challenge to Business Leadership 1

Chapter 1 Globalization amidst Rapid Change: Developing an Aggressive Strategy 15

Value from the Center 25
Niall W. A. FitzGerald, chairman, Unilever PLC

Next Frontier of Globalization: Consumer Focus 32
Jacques A. Nasser, President and Chief Executive Officer, Ford Motor Company

Banking is 90 Percent Action, 10 Percent Strategy 43
Sir John Bond, Group Chairman, HSBC Holdings

Organizing and Managing for Global Success 51
Bertrand P. Collomb, Chairman and Chief Executive Officer, Lafarge Group

Chapter 2 Growth: Reinvention Is the Key 57

Creating and Managing Hypergrowth 73
Michael S. Dell, Chairman and Chief Executive Officer, Dell Computer Corporation

Growth: The Engine of Global Leadership 81
Stephen R. Hardis, Chairman and Chief Executive Officer, Eaton Corporation

Satisfying a Global Appetite 90
Charles R. Shoemate, Chairman and Chief Executive Officer, Bestfoods

Chapter 3 Shareholder Value: Refocusing on Meaning over Measures 97

Changing the Rules: A Path to Shareholder Value 109
John F. Antioco, Chairman and Chief Executive Officer, Blockbuster Inc.

Building Value the Baxter Way 115
Harry M. Jansen Kraemer, Jr., President and Chief Executive Officer, Baxter International Inc.

Building Shareholder Value with Strategists – Lots of Them 125
Sir Brian Pitman, Chairman, Lloyds TSB Group

Chapter 4 Organization: The Pathways of Organizational Transformation 131

Slaying the Dragon 144
C. Michael Armstrong, Chairman and Chief Executive Officer, AT&T

Decentralization is the Crucible of Growth 152
Ralph S. Larsen, Chairman and Chief Executive Officer, Johnson & Johnson

Firing Up the Evangelical Organization 160
William J. Henderson, Postmaster General, United States Postal Service

The Energy of Leadership 167
Peter I. Bijur, Chairman and Chief Executive Officer, Texaco, Inc.

Chapter 5 E-business 175

Online Commerce: Changing Everything, or Nothing? 187
Esther Dyson, Chairman, EDventure Holdings Inc.

E-business: New . . . and Not So New 198
K. Blake Darcy, Chief Executive Officer, DLJdirect, Inc.

To Portal or Nor to Portal? That is the Question 204
Robert W. Shaw, Chief Executive Officer, USWeb/CKS

Consumer Empowerment: The Internet and the Art of Management 212
James J. Schiro, Chief Executive Officer, PricewaterhouseCoopers

Chapter 6 Disruptive Technology and the Large Corporation 219

Disrupt of Be Disrupted: Overturning Conventional Thinking in the Information Storage Industry 232
Michael C. Ruettgers, President and Chief Executive Officer, EMC Corporation

Walking the Precipice: Achieving the Right Technology Balance 242
Roger G. Ackerman, Chairman and Chief Executive Officer, Corning Incorporated

Driver or Enabler? The Internet’s Role in Twenty-First-Century Business 251
Lawrence A. Bossidy, Chairman and Chief Executive Officer, AlliedSignal Inc.

Marketing Reshaped by Technology 260
Thierry Breton, Chairman and Chief Executive Officer, THOMSON multimedia

Chapter 7 Innovation: New Ideas, Dangerous Ideas 265

Environmental Compliance Helps the Bottom Line 277
Pasquale Pistorio, President, Chief Financial Official, and Chief Executive Officer, STMicroelectronics NV

Cool Head, Firm Hand, Warm Heart: The ABB Approach to Innovation 284
Goran Lindahl, Presiedent and Co-Chief Executive Officer, ABB

Teams on Fire: Sony’s Innovation Culture 290
Nobuyuki Idei, President and Chief Executive Officer, Sony Corporation

DuPont is a Science Company 301
Charles O. “Chad” Holliday, Jr., Chairman and Chief Executive Officer, DuPont

Chapter 8 Knowledge Management: Unifying Knowledge and Action 311

Organizing Knowledge throughout the World 323
Timothy Koogle, Chairman and Chief Executive Officer, Yahoo! Inc.

Knowledge Focused on Results 332
Dr. Daniel Vasella, Chairman and Chief Executive Officer, Novartis

Ba: A Place for Managing Knowledge 342
Yotaro Kobayashi, Chairman and Chief Executive Officer, Fuji Xerox Co., Ltd.

CEO Biographies 349

Index 365

G. William Dauphinais, based in New York, is a PricewaterhouseCoopers partner. He is coauthor with Colin Price of the bestselling Straight from the CEO. Grady Means is a PricewaterhouseCoopers partner based in Washington, D.C. Colin Price is a former PricewaterhouseCoopers partner based in London. "Innovation . doesn't consist only of breakthroughs; incremental innovation is no less important to sustained business success." -Nobuyuki Idei, President and CEO Sony Corporation Wisdom of the CEO presents 29 of the world's most respected and influential corporate leaders-CEOs ranging from Dr. Daniel Vasella of Novartis and Timothy Koogle of Yahoo! to Jacques A. Nasser of Ford and Peter I. Bijur of Texaco-discussing how they are preparing today to meet the challenges of a radically changed twenty-first century business environment. Representing numerous industries, technologies, and perspectives, these giants of industry share their views on strategies to exploit today's technological innovations, tips for marketing in a world where international borders have been effectively eliminated, and much more. Their candid opinions form a blueprint for corporate success-a blueprint with untold value in today's era of global business convergence. "Hypergrowth companies are quintessential learn-by-doing organizations." -Michael S. Dell, Chairman and CEO Dell Computer Corporation Candid . forthright . unpredictable . Wisdom of the CEO mirrors the changing face of business itself. Listen carefully to these titans of industry as they reveal:
* Strategies to continually create growth-and manage the costs of creating that growth
* How to use the Internet to expand business-to-consumer or business-to-business relationships-without antagonizing existing channel partners
* How established, successful organizations can study and adopt the disruptive technologies of smaller, leaner competitors
* Proven techniques to transform intellect into performance and apply today's most important resource-knowledge-in real-world business situations
"You plug away at discrete issues, always asking why is this the practice and why not something different?" -John F. Antioco, Chairman and CEO Blockbuster Inc. The time for a radically new business model, one that exploits emerging technologies and opportunities while drawing from lessons of the past, has arrived. Discover for yourself why Wisdom of the CEO is being hailed as an invaluable collection of the thoughts and opinions of today's business trendsetters-and as a timely, thought-provoking model for next-millennium business success. How Will Yahoo! Stay on Top in the Twenty-First Century? Sony? DuPont? Why Not Ask Their CEOs? Wisdom of the CEO introduces you to 29 visionaries who are actively changing today's business paradigm. These top global business leaders explain how they are confronting the eight key issues driving business today-Globalization, Growth, Shareholder Value, Innovation, E-Business, Disruptive Technology, Organization, and Knowledge Management-and give you valuable guidance for maintaining and strengthening your own company's market share. Listen to the voices of experience as they discuss hot-button issues including:
* The Internet-How will e-commerce change customer demands and expectations? K. Blake Darcy, CEO of online trading powerhouse DLJdirect, explains the new rules.
* Shareholder Value-Can a leader focus all of a company's strategic efforts on shareholder value? Sir Brian Pitman explains how managers throughout the Lloyds organization-acting as value-creation strategists-are helping him to do just that.
* Disruptive Technology-Can established companies exploit disruptive technologies as effectively as their start-up competitors? CEO Roger G. Ackerman reveals how Corning can-and does.
PricewaterhouseCoopers is renowned for its commitment to helping world-class companies make better business decisions and hone their competitive strategies. With Wisdom of the CEO, Dauphinais, Means, and Price assemble an impressive, unprecedented gathering of today's leading business minds to discuss the trends that are propelling global business into the twenty-first century-and how they are positioning their companies to take full advantage of those trends.