Knowledge@W. P. Carey -- Leadership and Change

Executive Compensation: How Market Forces Propelled Salaries to the Heights

Mon, 08 Jun 2009 14:34:30 EST

Compensation practices at financial institutions receiving federal bail out money raised the ire of citizens and lawmakers this winter, however the huge salaries and bonuses paid to some corporate leaders are not new. But how did executive compensation reach such lofty levels? Market forces have been at work, say management professors Robert Hoskisson and Luis Gomez-Mejia. Changing dynamics in American board rooms have shifted the bulk of management responsibility away from directors and back almost entirely onto top executives, they say. And because these executives now bear this huge burden alone, they are demanding contracts that reflect the level of responsibility and offer them some kind of protection. Because when things go wrong and the CEO is fired, he knows that the chances are small that he will ever claim the top job again.

Podcast: Can Obama Grow Policy From the Grassroots?

Wed, 06 May 2009 17:37:54 EST

Candidate Barack Obama took grassroots networking into the digital age in his successful quest for the White House. Gerry Keim, associate dean for the W. P. Carey MBA, looks at whether President Obama can now convert his grassroots network to support his policy agenda.

Trade, China and the World Economic Order, Part 3: Business Leaders' Advice on Succeeding in China

Wed, 06 May 2009 17:37:54 EST

Doing business in China different than doing business anywhere else. Seasoned business veterans on the China scene -- from Motorola, Emerson Electric, Harley-Davidson, ON Semiconductor and TPI Composites -- offered their advice for successfully doing business in China recently at the first of three forums on trade, China and the world economic order. The W. P. Carey School of Business and ASU's Sandra Day O'Connor College of Law are partnering with The Kearny Alliance to host the forums. Part 3 in a series of four articles covering the forum, this piece covers the microeconomic -- some would say practical -- side of trade: the businesses that actually sell to, and from, China.

The Business of Climate Change: A Call for Innovation

Wed, 15 Apr 2009 17:48:32 EST

Whether or not you believe the science on climate change is irrelevant, says Andrew J. Hoffman, a University of Michigan professor of sustainable enterprise. Whatever you think, it's long past the time to open your eyes to the business implications. Author of "Climate Change: What's Your Business Strategy?", Hoffman visited Arizona State University recently as part of the Wrigley Lecture Series on Sustainability, co-hosted by the W. P. Carey School of Business and the National Center of Excellence on SMART Innovations.

Going for the Green: Companies Seek Sustainability for the Environment and the Bottom Line

Wed, 11 Feb 2009 20:21:26 EST

As power costs increase and consumers and government put more pressure on business to reduce environmental harm, sustainability is becoming important to all kinds of companies. Sustainable service was the subject of a panel discussion at the Center for Services Leadership's 19th Annual "Compete Through Service" symposium. Managers are starting to understand the advantages of being cleaner and greener, panelists said, but in order to bring about real change, the commitment to sustainability must be organization-wide. The changes have to make sense for the business and achieve impact beyond public relations.

'How' Matters More than 'What' in Business � and in Life

Wed, 19 Nov 2008 16:31:51 EST

"A leading company should be a company of leaders," says Dov Seidman, a consultant whose career focuses on how companies and their people can operate in both a principled and profitable way. Seidman's new book, "HOW: Why How We Do Anything Means Everything … in Business (and in Life)" is a thoughtful and incisive look at why "how" matters more than "what" in business, and how "should" matters more than "can." The bottom line, he says, is that in a fast-changing, hyperconnected and hypertransparent world, success is redefined as a quest for significance.

Passion for Work, Community, Family: Robert Hobbs Sr. Inducted into W. P. Carey School's Hall of Fame

Wed, 19 Nov 2008 16:31:51 EST

One could say Robert Hobbs Sr. charged into the business world when he was in grade school in Phoenix. As a boy, Hobbs had morning and afternoon paper routes near McDowell Road and Seventh Avenue. Later, he kept the paper routes and took on a part-time job in a corner grocery store. And while he was a senior at the W. P. Carey School finishing a degree in marketing, Hobbs was elected president of Sigma Chi Fraternity. That work ethic, which has made Hobbs a lifelong business and civic leader, was recognized this fall with his induction into the W. P. Carey School's Hall of Fame.

Bringing a Sense of Urgency to Your Business

Wed, 05 Nov 2008 16:30:51 EST

John Kotter knows your organization needs to change. His latest book, "A Sense of Urgency," delves into the how-to required of managers needing to embark on that first step, avoiding pitfalls along the way. Increasing a sense of urgency is the toughest of the steps leading to effective change, and Kotter's new book lays out a road map that will be an eye-opener to middle and top managers who, the author contends, often are blinded to the two main obstacles: complacency and a false sense of urgency.

Herman Cain: Becoming the 'CEO of Self'

Wed, 24 Sep 2008 16:12:58 EST

Herman Cain believes he has one gift that has allowed him to attain every goal he's set for himself: the ability to inspire. "Great leaders inspire others," the conservative radio talk show host and former president of Godfather's Pizza told about 60 business students last week in a speech hosted by the W. P. Carey School of Business. "But more importantly, great leaders inspire themselves."

Lessons From the Helm: Women Heads of State on Leadership

Thu, 26 Jun 2008 16:10:19 EST

Less than a week after Hillary Clinton announced that she was suspending her bid for the Democratic presidential nomination, Laura Liswood tossed one of the central issues of Clinton's campaign out to an audience of women business owners: What does it take to make a world leader? And more pointedly, what distinguishes male leaders from female leaders? Liswood is the founder and secretary general of the Council of Women World Leaders. Her audience was some 800 members of the National Association of Women Business Owners (NAWBO) in Phoenix for the group's 30th annual national meeting.

Robert Gillette: Making 'Em Fly at Honeywell Aerospace

Wed, 23 Apr 2008 15:10:01 EST

Imagine taking a dozen related but independently-run businesses, each with its own unique product, merging them into a cohesive business segment within an enormous corporation and driving up sales roughly 30 percent -- all during an intense, three-and-a-half year period. This is the high-performance world of Robert J. Gillette, Arizona-based president and chief executive officer of Honeywell Aerospace. "We turned our business upside down, changing everything, including how we go to market. It was a relatively painful process," Gillette told a ballroom of business leaders attending a recent Economic Club of Phoenix luncheon.

Brad Casper: Road to Success May Lead Out of Your Comfort Zone

Wed, 13 Feb 2008 14:59:31 EST

In 2005, Brad Casper exceeded his own career projections and goals by being hired as president and CEO at The Dial Corporation. Asked by an audience at the W. P. Carey School of Business how he did it, Casper remained off-the-cuff and humble. "I took a chance, took risks, and did things that didn't always feel comfortable."

Jeff Moorad: Performance-enhancing Management for the Arizona Diamondbacks

Wed, 16 Jan 2008 14:53:45 EST

The Arizona Diamondbacks are fresh from a season during which they led the National League in victories, racking up 90 on the way to winning the National League West Division title. The team, which debuted in 1998, won the World Series in its fourth season, but at a high cost. Worsening finances and a record losing season followed. General Partner and CEO Jeff Moorad talks about the Diamondbacks' new game plan, which includes winning on the field and on the balance sheet.

Conspicuous Consumption: How Utilities Want To Lighten Your Load

Wed, 16 Jan 2008 14:53:45 EST

A big change may be ahead in the relationship you have with your electric utility. That's because the worrisome carbon footprint is stomping all over the options electric utilities have to meet increasing demand for power. Experts at the W. P. Carey School of Business and elsewhere say utilities will most likely turn to you, the consumer, for help in managing this complex problem.

Environmental Squeeze Prompts Utilities to Change Tune

Wed, 02 Jan 2008 16:01:46 EST

Electric utilities are in the business of selling electrons. The more they sell, the more they earn. But today, a whirlwind of forces is sweeping electron sellers into counterintuitive activities such as promoting conservation and offering rate structures designed to cut peak consumption. In other words, utilities are asking customers not to buy quite as much of the product they produce. While this appears environmentally altruistic, utilities may have more than planetary stewardship in mind. According to Kerry Smith, professor of economics at the W. P. Carey School of Business, smart utilities are "getting behind moves to solve the climate issue. They'll say they've turned Green, but it's actually a practical business strategy."

Kerrii Anderson: Taking Care of Business

Wed, 21 Nov 2007 14:33:41 EST

Under pressure from activist investors, fast food restaurant chain Wendy's International has been exploring options, including selling off the whole company, as a way to unlock value for shareholders. In a recent speech at the W. P. Carey School's Economic Club of Phoenix, CEO Kerrii Anderson discussed the challenge of focusing on running the business for the long term when the company might be sold in the near term.

The Manager's Task: Turning Job Misery into Job Fulfillment

Wed, 24 Oct 2007 17:06:16 EST

In a publishing environment where books about bad management and the resulting demoralized employees abound, there is room for one more. Patrick Lencioni has distilled the essence of management wisdom in its simplest and purest form in his new book, "The Three Signs of a Miserable Job: A Fable for Managers." The essential responsibility of creating a happy and productive work force lies with middle managers, according to the author. Middle managers, he asserts, are responsible for the three hallmarks of a miserable job.

Reading Allies like a Book: How Smart Framing Spreads Education in India

Wed, 24 Oct 2007 17:06:25 EST

By focusing on solutions rather than causes, Pratham -- a non-profit organization dedicated to primary education in India -- has been remarkably successful in motivating donors and volunteers, not to mention the children this program has brought back into classrooms. According to Balaji Koka, associate professor of management at the W. P. Carey School of Business, much of the organization's effectiveness comes from wise framing of the problem and solutions at hand. What's more, Pratham's approach could serve as a primer for any business trouper trying to rally office forces.

Selling Services to 'Pet Parents' Fetches Comeback for PetSmart

Wed, 10 Oct 2007 16:23:14 EST

PetSmart was designed to be a category killer with dominant prices and dominant variety when it was founded in the late 1980s, and the concept worked well for the company's first decade. But by the late 1990s the company was losing steam. Its turnaround was the result of a shift in focus to services that capitalizes on the deepening affection people have for their pets. CEO Philip L. Francis briefed an audience at the W. P. Carey School's Economic Club of Phoenix on PetSmart's strategies, including its smart deployment of a rewards card program.

What I Like About You: The Ideal Director

Wed, 10 Oct 2007 16:23:14 EST

What makes an individual an effective director of a Fortune 500 company? Is it skills, experience, and connections? Or is it outside allegiances that pull a director one way or another? Are women better at it than men? Do executives from other companies have an edge? In recently published research, W. P. Carey management professor Amy Hillman and her co-authors sought answers to these and related questions through an exhaustive and detailed analysis of the voting records of shareholders of major U.S. corporations.