CROSS-ENTERPRISE LEADERSHIP

CROSS-ENTERPRISE LEADERSHIP Business Leadership forthe Twenty-First Century

Richard Ivey School of Business Edited by Dr. Mary Crossan, Dr. Jeffrey Gandz, and Dr. Gerard Seijts Foreword by Ivey Dean, Carol Stephenson

Copyright © 2010 by The Richard Ivey School of Business

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The article in Chapter 1 was first published in the May/June 2006 Ivey Business Journal;

an earlier version of the article in Chapter 2 was published in the Jan/Feb 2005 Ivey

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Library and Archives Canada Cataloguing in Publication Data

Cross-enterprise leadership : business leadership for the twenty-first century

/ Richard Ivey School of Business ; edited by Mary Crossan, Jeffrey Gandz, and Gerard

Seijts ; foreword by Carol Stephenson.

Includes bibliographical references and index.

ISBN 978-0-470-67940-1

1. Leadership. 2. Success in business. I. Crossan, Mary M II. Gandz, Jeffrey,

1944– III. Seijts, Gerard H IV. Richard Ivey School of Business

HD57.7.C7654 2010 658.4’092 C2010-904383-9

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We would like to acknowledge our colleagues, business leaders

and students who have been so supportive of this book; Ivey staff

Maura Pare, Stephen Bernhut and Penni Pring for their critical

roles in enabling the project; and Karen Milner and Lindsay

Humphreys, who shepherded the book on behalf of Wiley.

We dedicate this book as follows:

Mary Crossan: To Larry, Corey and Matthew who provide

unwavering support in everything I do

Jeffrey Gandz: To Elizabeth

Gerard Seijts: To my mom and dad who have always been there for me, and

to Jana, Aiden and Arianna for giving me all the happiness

Table of Contents

Contributors ix

Foreword: The Urgent Need for Cross-Enterprise Leadership

by Dean Carol Stephenson, Richard Ivey School

of Business xi

Chapter 1: A New Approach for the 21st Century

by Mary Crossan and Fernando Olivera 1

Chapter 2: What Cross-Enterprise Leaders DO!

by Jeffrey Gandz 15

Chapter 3: The Cross-Enterprise Leader

by Mary Crossan, Jeffrey Gandz and Gerard Seijts 27

viii Table of Contents

Chapter 4: Cross-Enterprise Leadership in Practice:

An Interview with Turnaround Expert William Aziz

by Gerard Seijts and Mary Crossan with Bill Aziz 45

Chapter 5: Driving Growth through Entrepreneurship

and Innovation

by Simon C. Parker 65

Chapter 6: Developing the Cross-Enterprise Leader

by Mary Crossan, Jim Hatch and Gerard Seijts

with Ashleigh Nimigan 95

Chapter 7: Engaging the Chinese Market

by Paul W. Beamish 121

Chapter 8: Greed Is Never Good: Cross-Enterprise

Leadership and the Social Responsibilities of Business

by Jeffrey Gandz 157

Chapter 9: Building Sustainable Value through Cross-

Enterprise Leadership

by Tima Bansal and Michael Wood 173

Chapter 10: Leadership on Trial

by Jeffrey Gandz, Mary Crossan, Gerard Seijts, Stephen Sapp

and Mark Vandenbosch 195

Conclusion: Cross-Enterprise Leadership: The Way Forward

by Mary Crossan 233

Index 247

~Contributors~

William Aziz Chief Restructuring Officer, Hollinger Inc.

President, BlueTree Advisors Inc.

Tima Bansal, PhD

Professor of Strategy

Director, Building Sustainable Value Research Centre

Executive Director, Network for Business Sustainability

MBA ’80 Faculty Fellow

Paul Beamish, PhD

Professor of International Business

Director, Ivey Publishing

Director, Asian Management Institute

Director, Engaging Emerging Markets Research Centre

Donald L. Triggs Chair in International Business

Canada Research Chair in International Management

Fellow of the Royal Society of Canada

Mary Crossan, PhD

Professor of Strategic Management

Taylor Mingay Chair in Business Policy

x Contributors

Jeffrey Gandz, PhD

Professor of General Management

Managing Director, Program Design—Executive

Development

Jim Hatch, PhD

Professor of Finance

Ashleigh Nimigan Communications Specialist, Public Affairs

Fernando Olivera, PhD

Associate Professor of Organizational Behaviour

Simon Parker, PhD

Associate Professor of Entrepreneurship

Director, Driving Growth through Entrepreneurship

and Innovation Research Centre

MBA ’80 Professor in Entrepreneurship

Stephen Sapp, PhD

Associate Professor of Finance

Bank of Montreal Faculty Fellow

Gerard Seijts, PhD

Associate Professor of Organizational Behaviour

Director, Leading Cross-Enterprise Research Centre

Ivey Alumni Association/Toronto Faculty Fellow in

Business Leadership

Carol Stephenson, O.C.

Dean

Lawrence G. Tapp Chair in Leadership

Mark Vandenbosch, PhD

Professor of Marketing

Kraft Professor in Marketing

Michael Wood General Management Doctoral Candidate

~Foreword~

The Urgent Need for Cross-Enterprise Leadership

by Dean Carol Stephenson, Richard Ivey School of Business

In the lingering aftermath of the global economic recession,

leadership is in crisis. Questions remain unanswered. How

could leaders in the financial services industry—and the regu­

lators who oversee these markets—not anticipate the folly of

lending money to people who could not afford a home? Why

did leaders in the automobile industry keep manufacturing

more and more vehicles in the face of growing overcapacity

and declining sales? Moreover, in this age of globalization, how

could leaders not foresee that the toxic practices in one part

of the world would inevitably poison markets and economies

worldwide?

Imagine what might have happened if business and govern­

ment leaders had better appreciated the interconnectedness

xii Foreword

of different organizations, markets and economies. Imagine if

more leaders had focused on long-term results, not just short­

term returns. Imagine if more leaders had acted with vision,

honesty and integrity. I have no doubt that the outcome would

have been much different—and much better—for economies,

for industries, for markets and for the customers, investors and

employees who play a role in them.

For all of us at the Richard Ivey School of Business, the on­

going repercussions of the recent economic crisis underscore

the urgency for a new leadership approach—an approach that

we call cross-enterprise leadership.

Cross-enterprise leaders see the big picture and understand

how it is evolving. They are able to anticipate the effect of eco­

nomic trends, competitive challenges and global-scale market

issues. And they know how to capitalize on the synergies that

result from gaining this fulsome perspective. That’s precisely

how cross-enterprise leaders build and sustain the profitability

and growth of their enterprises.

Five years ago, our team at the Richard Ivey School of Business

set out to examine the impact of globalization, technological

innovation and volatile change on leadership. We conducted

extensive research, analysis and consultation with our clients and

stakeholders across the globe. We uncovered an inherent need

across all organizations for cross-enterprise leadership.

Cross-enterprise leaders have a deep understanding of how

events, decisions and actions affect the “enterprise”—or the rich

complexity of interdependencies both within the organization

and between the organization and the environment in which it

operates. They look beyond the organizational charts, knowl­

edge silos and walls of their organizations to uncover the full

scope of opportunities and challenges facing their organizations.

Foreword xiii

Cross-enterprise leaders act decisively—and they act quick­

ly. They appreciate that in today’s often unpredictable environ-

ment, playing it safe or taking it slow just does not make sense. In

this era of instant messaging, social networking and ubiquitous

wireless communications, real-time competition is the reality.

Organizations can no longer afford the luxury of long planning

horizons. A predisposition to “wait and see” simply doesn’t cut

it anymore. Yet, neither does a singular focus on the short term.

Moreover, cross-enterprise leaders know that the old hi­

erarchical command and control approach is grossly ineffec­

tive. Instead, these leaders depend on their influence, not on

the power of their position. As a result, they develop an acute

understanding of the positions of various stakeholders within

their enterprise, including their employees. They are capable

of identifying potential partners, of initiating and maintaining

relationships, of resolving conflicts and of reconfiguring their

relationships. Furthermore, they are comfortable dealing with

the fluid dynamism inherent in nurturing these relationships.

However, they can be decisive and directive when need be. They

recognize what approach is needed in the situation.

This book explains how leaders can step up to today’s lead­

ership challenges, as it examines the implications of the latest

research and experience of organizations operating, or seeking

to operate, in emerging markets such as China and India. It

looks at driving business growth through entrepreneurship and

innovation, leveraging Ivey’s work with rapid growth firms. It

investigates how organizations and their leaders can create sus­

tainable value in a world where economic issues intertwine with

social concerns. In addition, this book dissects cross-enterprise

leadership, looking at how organizations and individuals can

learn, adapt and enhance their ability to compete effectively.