H
ow much are you willing to pay for the job you want?This may sound like a strange question, since your employer will pay you to work, but think again. Consider how much you value a specific type of work, or how much you would want to work for a specific organization because of its values.
A recent study shows scientists who want to continue engag- ing in research will accept some $14,000 less in annual salary to work at an organization that permits them to publish their findings in academic journals, implying that some scientists will
“pay to be scientists.” This finding appears to hold in the gen- eral business world, too. In a recent survey, 97 percent of Stanford MBA students indicated they would forgo some 14 percent of their expected salary, or about $11,480 a year, to work for a company that matches their own values with concern for stake- holders and sustainability. According to Monster.com, an online career service, about 92 percent of all undergraduates want to
work for a “green” company. These diverse examples demon- strate that people put a real dollar amount on pursuing careers in sync with their values.
On the other hand, certain high-powered jobs such as man- agement consulting or investment banking pay very well, but their high salaries come with strings attached. Professionals in these jobs work very long hours, including weekends, and often take little or no vacation time. These workers “pay for pay” in that they are often unable to form stable relationships, have little or no leisure time, and sometimes even sacrifice their health. People “pay for”—make certain sacrifices for—
what they value, because strategic decisions require important trade-offs.58
1. Identify your personal values. How do you expect these values to affect your work life or your career choice?
2. How much less salary would (did) you accept to find employment with a company that is aligned with your values?
3. How much are you willing to “pay for pay” if your dream job is in management consulting or investment banking?
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ENDNOTES
1. This ChapterCase is based on: “Google’s Marissa Mayer,” Vogue, March 28, 2012;
“A makeover made in Google’s image,” The Wall Street Journal, August 9, 2012; “Mayer culpa,” The Economist, March 2, 2013; “Is Alibaba or SoftBank about to buy Yahoo?”
Forbes, July 23, 2014; Jackson, E., “How do you solve a problem like Marissa?” Forbes, July 29, 2014; “Alibaba IPO to give Yahoo windfall,” The Wall Street Journal, September 19, 2014; “Yahoo CEO set to refresh turn- around plan,” The Wall Street Journal, Octo- ber 19, 2014; “Yahoo sales, profit gains may allay Mayer critics,” The Wall Street Journal, October 22, 2014; “Yahoo to spin off remain- ing Alibaba stake,” The Wall Street Journal, January 28, 2015; “Yahoo 2013 Annual Report,” www.sec.gov; Levy, S. (2011), In The Plex: How Google Thinks, Works, and Shapes Our Lives (New York: Simon &
Schuster); Edwards, D. (2012), I’m Feeling Lucky: The Confessions of Google Employee Number 59 (New York: Houghton Mifflin Harcourt); Thiel, P. (2014), Zero to One.
Notes on Startups or How to Build the Future (New York: Crown Business); and Carlson, N.
(2015), Marissa Mayer and the Fight to Save Yahoo! (New York: Hachette Book Group).
2. Finkelstein, S., D.C. Hambrick, and A.A.
Cannella (2008), Strategic Leadership:
Theory and Research on Executives, Top Management Teams, and Boards (Oxford, UK: Oxford University Press); and Yulk, G.
(1998), Leadership in Organizations, 4th ed.
(Englewood Cliffs, NJ: Prentice Hall).
3. Covey, S.R. (1989), The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change (New York: Simon &
Schuster).
4. Frankl, V.E. (1984), Man’s Search for Meaning (New York: Simon & Schuster).
5. Pink, D.H. (2011), The Surprising Truth about What Motivates Us (New York:
Riverhead Books).
6. Hamel, G., and C.K. Prahalad (1989),
“Strategic intent,” Harvard Business Review (May–June): 64–65; Hamel, G., and C.K.
Prahalad (1994), Competing for the Future (Boston, MA: Harvard Business School Press); and Collins, J.C., and J.I. Porras (1994), Built to Last: Successful Habits of Visionary Companies (New York: Harper Collins).
7. www.teachforamerica.org.
8. Collins and Porras (1994), Built to Last;
Collins, J.C. (2001), Good to Great: Why Some Companies Make the Leap . . . And Others Don’t (New York: HarperBusiness).
9. Feintzeig, R., “I don’t have a job, I have a higher calling,” The Wall Street Journal,
February 24, 2015, http://www.wsj.com/
articles/corporate-mission-statements-talk-of- higher-purpose-1424824784.
10. Ibid.
11. Dixit, A., and B. Nalebuff (1991), Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life (New York: Norton); and Brandenburger, A.M., and B.J. Nalebuff (1996), Co-opetition (New York: Currency Doubleday).
12. For academic work on using a problem- solving perspective as the basis for under- standing the firm, see Nickerson, J., and T.
Zenger (2004), “A knowledge-based theory of the firm—the problem-solving perspective,”
Organization Science, 15: 617–632.
13. This example is drawn from Clayton Christensen’s work as described in Kane, Y.I.
(2014), Haunted Empire: Apple After Steve Jobs (New York: HarperCollins), 191.
14. Ibid.
15. Germain, R., and M.B. Cooper (1990),
“How a customer mission statement affects company performance,” Industrial Marketing Management 19(2): 47–54; Bart, C.K. (1997),
“Industrial firms and the power of mission,”
Industrial Marketing Management 26(4):
371–83; and Bart, C.K. (2001), “Measuring the mission effect in human intellectual capital,”
Journal of Intellectual Capital 2(3): 320–330.
16. Christensen, C. (1997), The Innovator’s Dilemma (New York: HarperCollins).
17. Kane, Haunted Empire, 191.
18. “The three habits . . . of highly irritating management gurus,” The Economist, October 22, 2009.
19. Burgelman, R.A., and A.S. Grove (1996),
“Strategic dissonance,” California Management Review 38: 8–28; and Grove, A.S. (1996), Only the Paranoid Survive: How to Exploit the Crisis Points that Challenge Every Company (New York: Currency Doubleday).
20. Bart, C.K., and M.C. Baetz (1998), “The relationship between mission statements and firm performance: An exploratory study,”
Journal of Management Studies 35: 823–853.
21. Finkelstein, Hambrick, and Cannella, Strategic Leadership, 4.
22. See note 1.
23. As quoted in: Collins, J. (2009), How the Mighty Fall. And Why Some Companies Never Give In (New York: Harper Collins), 53.
24. http://www.merck.com/about/featured- stories/mectizan1.html.
25. Gilmartin, R.V., “The Vioxx recall tested our leadership,” Harvard Business Review Blog Network, October 6, 2011.
26. The Merck river blindness case and the quote by CEO Kenneth Frazier draws from:
http://www.merck.com/about/featured-stories/
mectizan1.html. The Vioxx example draws from “Jury finds Merck liable in Vioxx death and awards $253 million,” The New York Times, August 19, 2005; Heal, G. (2008), When Principles Pay: Corporate Social Responsibility and the Bottom Line (New York:
Columbia Business School); Collins, How the Mighty Fall; and Wang, T., and P. Bansal (2012), “Social responsibility in new ventures:
profiting from a long-term orientation,” Stra- tegic Management Journal, 33: 1135–1153.
27. Carlson, Marissa Mayer and the Fight to Save Yahoo!
28. Hambrick, D.C., and E. Abrahamson (1995), “Assessing managerial discretion across industries: A multimethod approach,”
Academy of Management Journal 38:
1427–1441.
29. “The 100 best performing CEOs in the World,” Harvard Business Review, January–February 2013.
30. Bandiera, O., A. Prat, and R. Sadun (2012),
“Managerial capital at the top: Evidence from the time use of CEOs,” London School of Economics and Harvard Business School Working Paper; and “In defense of the CEO,”
The Wall Street Journal, January 15, 2013.
The patterns of how CEOs spend their time have held in a number of different studies across the world.
31. Finkelstein, Hambrick, and Cannella, Strategic Leadership, 17.
32. Ibid.
33. Hambrick, D.C. (2007), “Upper echelons theory: An update,” Academy of Management Review 32: 334–343; and Hambrick, D.C., and P.A. Mason (1984), “Upper echelons:
The organization as a reflection of its top managers,” Academy of Management Review 9: 193–206.
34. Collins, Good to Great, 3.
35. Ibid.
36. For a superb treatise of the history of strategy, see Freedman, L. (2013), Strategy:
A History (New York: Oxford University Press).
37. This discussion is based on Mintzberg, H.
(1993), The Rise and Fall of Strategic Planning: Reconceiving Roles for Planning, Plans, and Planners (New York: Simon &
Schuster); and Mintzberg, H. (1994), “The fall and rise of strategic planning,” Harvard Business Review, January–February: 107–114.
38. Isaacson, W. (2011), Steve Jobs (New York: Simon & Schuster). See also:
Isaacson, W. (2012), “The real leadership
rot20477_ch02_032-063.indd 62 11/25/15 01:47 PM lessons of Steve Jobs,” Harvard Business
Review, April.
39. Jobs, S., “There is sanity returning,”
BusinessWeek, May 25, 1998.
40. “CEO Tim Cook pushes employee- friendly benefits long shunned by Steve Jobs,”
The Wall Street Journal, November 12, 2012.
41. Grove, Only the Paranoid Survive.
42. UPS 2014 Investor Conference Presenta- tions, Thursday, November 13; and UPS 2013 Annual Report.
43. Mintzberg, The Rise and Fall of Strategic Planning, and “The fall and rise of strategic planning.”
44. Thompson, S.C. (1999), “Illusions of Control: How We Overestimate Our Personal Influence,” Current Directions in Psychological Science 8: 187–190.
45. Data from the U.S. Census Bureau,
“US e-commerce sales as percent of retail sales,” http://ycharts.com/indicators/
ecommerce_sales_as_percent_retail_sales.
46. Arthur, B.W. (1989), “Competing technologies, increasing returns, and lock-in by historical events,” Economic Journal 99: 116–131; and Brown, S.L., and K.M.
Eisenhardt (1998), Competing on the Edge:
Strategy as Structured Chaos (Boston, MA:
Harvard Business School Press); Bower, J.L.
(1970), Managing the Resource Allocation Process (Boston, MA: Harvard Business School Press); Bower, J.L., and C.G. Gilbert (2005), From Resource Allocation to Strategy (Oxford, UK: Oxford University Press);
Burgelman, R.A. (1983), “A model of the
interaction of strategic behavior, corporate context, and the concept of strategy,”
Academy of Management Review 8: 61–71;
and Burgelman, R.A. (1983), “A process model of internal corporate venturing in a major diversified firm,” Administrative Science Quarterly 28: 223–244.
47. Based on Howard Behar (retired president, Starbucks North America and Starbucks Interna- tional) (2009), Impact Speaker Series Presentation, College of Management, Georgia Institute of Technology,October 14. See also Behar, H. (2007), It’s Not About the Coffee: Leadership Principles- from a Life at Starbucks (New York: Portfolio).
48. John Rice, GE vice chairman, president, and CEO, GE Technology Infrastructure (2009), presentation at Georgia Institute of Technology, May 11.
49. See MiniCase “Strategy and Serendipity:
A Billion-Dollar Bonanza,” http://mcgrawhill- create.com/rothaermel.
50. This example is drawn from: “Crispy
‘Saratoga chips’ potato chips invented in Sara- toga,” at www.saratoga.com/news/saratoga- chips.cfm; and “George Crum,” at http://
lemelson.mit.edu/resources/george-crum.
51. Bower and Gilbert, From Resource Allocation to Strategy.
52. Bower, Managing the Resource Allocation Process; Bower and Gilbert, From Resource Allocation to Strategy; Burgelman,
“A model of the interaction of strategic behav- ior”; and Burgelman, “A process model.”
53. Burgelman, R.A. (1994), “Fading memories:
A process theory of strategic business exit in
dynamic environments,” Administrative Science Quarterly 39: 24–56.
54. Burgelman and Grove, “Strategic dissonance.”
55. Grant, R.M. (2003), “Strategic planning in a turbulent environment: Evidence from the oil majors,” Strategic Management Journal 24: 491–517; Brown, S.L., and K.M. Eisenhardt (1997), “The art of continu- ous change: Linking complexity theory and time-based evolution in relentlessly shift- ing organizations,” Administrative Science Quarterly 42: 1–34; Farjourn, M. (2002),
“Towards an organic perspective on strategy,”
Strategic Management Journal 23: 561–594;
Mahoney, J. (2005), Economic Foundation of Strategy (Thousand Oaks, CA: Sage); and Burgelman, R.A., and A.S. Grove (2007),
“Let chaos reign, then reign in chaos—
repeatedly: Managing strategic dynamics for corporate longevity,” Strategic Management Journal 28(10): 965–979.
56. “Yahoo to spin off remaining Alibaba stake.”
57. Hamel, G. (2007), The Future of Management (Boston, MA: Harvard Business School Publishing).
58. Based on Stern, S. (2004), “Do scientists pay to be scientists?” Management Science 50(6): 835–853; and Esty, D.C., and A.S.
Winston (2009), Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage, revised and updated (Hoboken, NJ: John Wiley).
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