IndustryWeek's Leadership Insights
February 23, 2012
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  Strategic Management

The Restructuring Challenge: How Manufacturers Can Break 'Tribal' Barriers to Foster Innovation

By Andrew Goldberg, executive vice president, Makovsky & Co.

Can corporate restructuring enhance creativity and make large companies more innovative? Not often. The history of business is littered with examples that show organizational restructuring is not a reliable tool for unlocking creativity.

Sony Corp., for instance, has undergone organizational shifts over a decade and has not captured ground lost in the consumer products game to Apple Inc. and others. Or Hewlett-Packard Co., where multiple organizational restructurings still left it struggling to find a more profitable pathway for its enterprise and consumer businesses.

Once you think about a company as a meshed network of small groups -- let's call them tribes -- you immediately see why restructurings don't improve outcomes. Big organizational changes are often financially costly. They are also traumatic, breaking up trusted relationships and creating insecurity even among the very creative people you are trying to encourage.

But senior managers and executives can break through these organizational barriers by soliciting and incentivizing employee ideas.

For the full article, click here.

  News & Research

Foreign Investment Rises 9.7% in Mexico in 2011

Reaching $19.44 billion, foreign direct investment in Mexico rose 9.7% in 2011,the economy department said Feb. 20. The United States, Mexico's main economic partner, was the top foreign investor, contributing 55% of the total.

It was followed by Spain, at 15%, The Netherlands at 6.7% and Switzerland at 6.3%. Most of the investment went into manufacturing, at 44.1%. Financial services received 18 percent and commerce 9.5%.

For the full article, click here.

Honda Announces Changes to its U.S. Executive Leadership

Honda on Tuesday announced several U.S. management changes "designed to strengthen its North American regional operations to further speed decision-making and increase efficiency and competitiveness within the region."

Tetsuo Iwamura -- president of American Honda Motor Co. Inc., chief operating officer of North American Regional Operations and a senior managing officer of Honda Motor Co. Ltd. -- will be promoted concurrently to executive vice president and executive officer, effective April 1, Honda said in a news release.

Iwamura will stay in his post as president and retain all his responsibilities as head of American Honda and Honda's North American region, the automaker added.

Honda also announced that Erik Berkman will become president of Honda R&D Americas Inc., effective April 1. Berkman will be responsible for all design and product development.

For the full article, click here.

  IndustryWeek Webinar

How Does 'Just For Men' Use What-If Analysis to Cope With Volatility?

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  IW Best Plants Conference

Getting the Entire Organization on the Same Page

Learn about a successful model that helps the entire organization understand where the business is going in the long term and what needs to happen in the short term to achieve the desired results. Thermo Fisher's Vice President of Practical Process Improvement, Jeff Powers, will outline this model in detail focusing on strategy deployment and involving every employee every day at the 2012 IW Best Plants Conference, April 23-25 in Indianapolis. This session is just one of 35 breakout sessions available to choose from.

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