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'Upsetting the Natural Order': Managing Employees Old Enough to Be Your Parents
If one looks at the research on older workers, one finds what Peter Cappelli, director of Wharton's Center for Human Resources, calls "an incredible amount of discrimination, bigger even than discrimination against race or gender." Older people, he says, often find it difficult to get a job, partly because relatively young supervisors are reluctant to hire and then manage employees who are decades older, even though these employees are the type of worker many employers say they want. In a new book titled, Managing the Older Worker: How to Prepare for the New Organizational Order, Cappelli and Bill Novelli, former CEO of AARP, analyze this phenomenon.
Anatomy of a Merger: 'Hostile Deals Become Friendly in the End, Right?'
When Roche Holding acquired full ownership of Genentech last year, the $46.8 billion deal was the culmination of a more than 20-year relationship between the Swiss pharmaceutical giant and the Silicon Valley biotechnology company. In a recent presentation at Wharton San Francisco, Steve Krognes -- a former Roche executive who is now senior vice president and CFO of Genentech -- talked about the pharma company's decision to pursue the merger, efforts to raise capital amid the beginnings of the 2008 recession, and the aftermath of the deal.
'A Clash of Expertise': Adding Human Rights to the World Bank's Agenda
Are human rights an intrinsic value, a set of universal freedoms to be protected as ends in themselves? Or are human rights a means to an end -- a fast track to economic development, peace and prosperity? A lawyer might argue the first, an economist the second. And if the argument took place at the World Bank, the economist would probably win. In a recent paper, Wharton professor of legal studies and business ethics Galit A. Sarfaty explains why conflicts in expert interpretations can stymie the progress of any idea within an organization.
VC 'Super Angels': Filling a Funding Gap or Killing 'The Next Google'?
A new crop of small, nimble and tech-savvy venture capitalists are trying to bring back into vogue a more entrepreneurial, forward-thinking and risk tolerant model for investing in start-ups. Dubbed "super angels," these firms and individual investors fill the funding gap between angel investors and large VC firms. Although the sector boasts success stories, it also faces challenges -- including some industry observers who complain that super angels are cutting short the lives of companies that could be "the next Google" by selling them before they have had time to develop a market.
Computer Compatriots: Taiwan and China Draw Economically Closer
Despite the diplomatic and military twists and turns between China and the island of Taiwan, the two countries are fast becoming virtually one in the vital field of information technology. The extent of this collaboration is stunning: Taiwanese factories on the mainland make more than 85% of the monitors for the world's desktop computers, for example, and more than 90% of all laptop computers. Knowledge@Wharton looks at the pace -- and the challenges -- of this rapidly evolving economic integration.
Is Network Neutrality Permanently Stalled at the Finish Line?
The long-running network neutrality debate is once again front and center after another flare-up, this one stoked by a recent policy proposal jointly developed by Google and Verizon. The seven-point plan was panned by net neutrality advocates but cheered by industry players, making it unclear whether regulators, legislators and private industry can forge a deal. Among the stickiest issues is that advocacy groups continue to demand 100% network neutrality, while wireless broadband providers want the ability to manage their networks and generate enough cash flow to continue to invest in infrastructure.
Financial Services on Aisle Nine: Wal-Mart Gives Banks a Run for Their Money
Despite being pilloried by the public lately, a banker's lot can't be all that bad. At least, that's what Wal-Mart executives must be thinking. Over recent months, there has been a flurry of announcements from the world's largest retailer about the expanding array of banking products sold at its U.S. stores. Company officials insist that their main aim is to reach the "unbanked" and "underbanked" with the type of low-cost services that cemented Wal-Mart's reputation as a retail giant. So do traditional retail banks on Main Street USA have reason to worry?
Dell's Diversification Strategy: 'A Day Late and a Dollar Short?'
It has been a battle of the balance sheets as rivals Dell and Hewlett-Packard continue to wrangle over who will win the right to acquire 3PAR, a little known data storage company. While the 3PAR bidding war, which HP is expected to win, is part of Dell's ongoing ambition to get a bigger foothold in high-margin enterprise technology services, the $53 billion company has also been chasing consumers with lackluster products. As one expert asks: "Dell sees the need for diversification, but does it see the need for transformation?"
Sheena Iyengar on the Power of Choice -- and Why It Doesn't Always Bring Us What We Want
In March 2010, Sheena Iyengar, a professor at Columbia Business School, published a book titled, The Art of Choosing. The book, she says, reflects her interest in how people make choices, including how they are able to navigate both the opportunities and responsibilities that an abundance of choice can bring. In a video presentation, Iyengar offers Knowledge@Wharton viewers her perspective on the need to separate choices that are "meaningful and uplifting" from those that tend to distract us or that lead to unwise decisions.
The Complicated Lives of Today's Leaders: Why Being at the Top Is Harder Than Ever
For insights into the ethics, values and competencies required of today's global leaders, Knowledge@Wharton recently coordinated a Wharton Executive Education roundtable discussion with four fellows from The World Economic Forum's Global Leadership Fellows Program. The program allows participants to work full-time at the World Economic Forum while developing leadership skills through training courses at top universities. The discussion touched on issues including the changing nature of leadership, how leaders respond to crisis and the role ethics plays in being an effective leader
Are There Second Acts in the Lives of Aging Internet Firms?
Yahoo is busy integrating social networking features from Facebook and investing in online content. Microsoft touts its new search engine, Bing, every chance it gets in an attempt to take on Google. And AOL, the ailing Internet services company, has spent the last year restructuring and divesting. At the recent Supernova conference in Philadelphia, Brad Garlinghouse, president of AOL consumer applications, described the company's transformation as an attempt at a "second act." Wharton faculty weigh in on what it would take to bring aging Internet companies like AOL up to speed.
A Seasonal Sales Shift: For Bargain Hunters, Retailers Make Every Day Feel like Christmas
Target, Toys R Us, Sears and Kmart are just a few of the big retailers that have launched mega-sales in recent weeks to tempt increasingly cost-conscious shoppers to their stores. This phenomenon -- known as the seasonal sales shift, or "Christmas creep" -- is not new. But in today's uncertain economic climate, it has bigger implications than ever, both for the retail sector's growth strategies and for consumer spending habits, say Wharton and other business experts.
Solving a 'Wicked Problem': UPS CEO Scott Davis on Surviving a Shaky Economy
In the current economic climate, many executives are tempted to change strategies quickly or reinvent their company in hopes of finding a new model to weather the downturn. For UPS CEO Scott Davis, however, leadership during the "Great Recession" has meant staying the course. Davis told the audience at the recent Wharton Leadership Conference that his strategy for surviving the last two years involved sticking to the company's core values of integrity and partnership.
Coca-Cola on the Yangtze: A Corporate Campaign for Clean Water in China
Nearly half of China's sewage and industrial waste is discharged into the Yangtze River, the lifeline of millions of Chinese. As a result, the Yangtze now tops the list of the 10 most-threatened rivers in the world, according to the World Wildlife Fund (WWF). To help reverse the tide, the WWF has joined forces with Coca-Cola to improve the water quality of the upper reaches of the Yangtze. The partnership is the result of a growing corporate awareness that water is a threatened resource -- not just in China, but throughout the world.
Financial Reform: What Will the Dodd-Frank Act Accomplish?
Following final approval of the sweeping Dodd-Frank Wall Street Reform and Consumer Protection Act on July 15, Obama administration officials are now addressing audiences across the country to explain how and under what timetable they plan to implement the law’s broad intentions. In separate speeches at Wharton this month, Neal Wolin, deputy secretary of the U.S. Department of the Treasury, and Diana Farrell, deputy director of the National Economic Council, outlined the administration’s plans to protect against some of the risks that led to the global financial crisis. Knowledge@Wharton offers coverage of their speeches, along with faculty members' perspectives on what the new legislation will mean for the U.S. economy.
Ranking Employees: Why Comparing Workers to Their Peers Can Often Backfire
What inspires an employee to work harder? More money, more often than not. But what about being benchmarked against peers, asks Wharton management professor Iwan Barankay in a new study titled, "Rankings and Social Tournaments: Evidence from a Field Experiment." With the help of a "crowd-sourcing" website, Barankay set out to discover not only whether workers are interested in how they rank against their peers, but also what happens to their performance if they find out how they placed. His conclusion may leave companies thinking twice about the best way to appraise staff performance.
Why Gita Wirjawan Wants to Open Indonesia to International Investors
Indonesia's economy is on track to hit $1 trillion in GDP by 2014. The country is the world's third-largest democracy, and is in a demographic sweet spot -- half its population is under 30. But Indonesia is more widely known for natural disasters and natural resources than for its industry and infrastructure. Gita Wirjawan, a 44-year-old former investment banker with Goldman Sachs and J.P. Morgan, last year became Indonesia's chairman of Badan Koordinasi Penanaman Modal (BKPM), the country's Investment Coordinating Board, a ministerial-level post. He believes "the world needs to understand Indonesia in a different way." Wirjawan spoke with Knowledge@Wharton about his efforts to attract global investors.
'Talking the Talk': Jeff Schwartz on Building Talent During a Downturn
According to a year-long project by Deloitte initiated at the start of the global economic downturn, the firms that posted stronger performances and were optimistic about the future were those that paid more than lip service to the importance of retaining top employees. Jeff Schwartz, global leader for Deloitte Consulting's organization and change service line, shared the results of the study, which included approximately 1,800 executives, at the recent 14th annual Wharton Leadership Conference.
Mid-life Crisis? Venture Capital Acts Its Age
The venture capital community is showing signs of middle age -- moving more slowly and cautiously than before, and hitting fewer home runs than it did in younger, leaner days. As a result, experts say, the sector is having trouble producing the robust performance long associated with it. This means investors need to look at venture capital, and its impact on their portfolios, in a new way.
'Turning Social Capital into Economic Capital': Straight Talk about Word-of-mouth Marketing
If your hair stylist gave you $10 every time you sent one of your friends her way, you might be more tempted to tell everyone what a fabulous stylist she was -- or you might even try to make new friends to refer. This clever method of customer acquisition is a form of word-of-mouth marketing known as a referral program, and it is becoming increasingly popular in a wide range of industries, from financial services and automobiles to newspapers and hotels. Indeed, according to a new study co-authored by Wharton marketing professor Christophe Van den Bulte, referral programs are a financially attractive way for firms to acquire new customers.
