Knowledge@Wharton - Why Avoiding Risk Can Be Good for Managers but Bad for Shareholders
New research by Whartons Todd Gormley shows that managers who play it safe may not take the risks that are necessary to create value for shareholders.
Ever been 'walked' by a hotel? Thats right, you have a reservation in hand, arrive usually after a late business meeting or travel, tired, irritated, really want to collapse into your bed. Then, WHAM, sorry, sir, the inn is full!
When the world financial crisis hit, many hotel management contracts were terminated, often without the managers' prior knowledge or consent. However, now the bill is coming due - and it can run to millions of dollars.
New Wharton research has good news for companies facing a disruptive innovation in their industry: Disrupters and incumbents sometimes end up as collaborators, rather than one displacing the other.
Business leader-turned-academic Bill George has often told aspiring executives that leadership is more about discovering and building on your true strengths than about becoming a different person. Author of best-selling books including Authentic Leadership and True North, he was chairman and chief executive officer of medical device maker Medtronic during a decade of high growth.
Social business isn't limited to just marketing or PR. Today, it's a top driver of decisions that influence business outcomes in an organization, exposing it to drastically different, potentially disruptive ways to engage with, learn from, and collaborate with customers, suppliers, employees, and even the public.