Strategic Delegation - Publications - Faculty & Research

June 2017
Article

Options Compensation as a Commitment Mechanism in Oligopoly Competition

By: Jun Ishii and David Hao Zhang

We analyze how CEO stock options compensation can be used as a commitment device in oligopolistic competition. We develop a two-stage model where shareholders choose managerial compensation to commit their managers to being aggressive in equilibrium. Our results may... View Details

Keywords: CEO Compensation; Ceo Risk-taking; Strategic Delegation; Stock Options; Executive Compensation

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Research Summary

A Strategic Rationale for Having Overconfident Managers, 2004

We analyze whether it might be desirable for a firm to hire an overconfident manager for strategic reasons. We analyze a tournament type version of Bertrand competition and a linear demand Cournot model. In each case there is an R&D stage where firms can invest in cost... View Details

06 Aug 2012
Research & Ideas

Strategic Intelligence: Adapt or Die

corporate strategy, Wells has learned that the seeds of failure are often planted years before they sprout, and only by overcoming complacency and constantly adapting to the changing competitive environment can companies prosper in the long term. In a new book, View Details

Keywords: by Michael Blanding

12 Dec 2005
Research & Ideas

Using the Law to Strategic Advantage

there are legal dimensions to business and they, like the financial or IT functions, need to be managed. They are too important to delegate to persons, i.e., lawyers, who may not understand the broader business objectives. Second, the law... View Details

Keywords: by Sean Silverthorne; Legal Services

21 May 2007
Research & Ideas

Fixing the Marketing-CEO Disconnect

agencies, now they are delegating sales, distribution strategy, pricing, and product development to CMOs, who often lack overarching strategic responsibility. CEOs expect their CMOs to drive marketing... View Details

Keywords: by Sean Silverthorne

11 Feb 2014
First Look

First Look: February 11

Publications August 2013 American Journal of Managed Care The Impact of Electronic Health Record Use on Physician Productivity By: Adler-Milstein, Julia, and Robert S. Huckman Abstract—Objectives: To examine the impact of the degree of electronic health record (EHR)... View Details

Keywords: Sean Silverthorne

Research Summary

Vertical Relationships Between Firms

Where should a firm draw its boundaries in the vertical chain of production? This has proved to be one of the most interesting and contentious debates among economists and strategists alike. On one hand, vertical integration into upstream and downstream businesses may... View Details

08 Dec 2014
Research & Ideas

A Manager’s Guide to International Strategy

companies grappling with the familiar (yet complex) questions that confront any organization trying to do business across borders. According to Collis, every strategic choice that multinationals face falls into one of the following four... View Details

Keywords: by Julia Hanna

23 Apr 2019
First Look

New Research and Ideas, April 23, 2019

managers have to learn how to lead others rather than do the work themselves, to win trust and respect, to motivate, and to strike the right balance between delegation and control. Many fail to make the transition successfully. In this... View Details

Keywords: Dina Gerdeman

04 Jan 2017
What Do You Think?

How Much Bureaucracy is a Good Thing in Government and Business?

to make key decisions with the agility of System 1 (using Kahneman’s terminology) while within a larger System 2-developed strategic framework.” Chiding other respondents for not shedding more light on the role that bureaucracies can... View Details

Keywords: by James L. Heskett

14 Feb 2022
Research & Ideas

Curiosity, Not Coding: 6 Skills Leaders Need in the Digital Age

learning, pivoting all along the way. Though it won’t be easy, even perfectionist Type-A personalities must open their minds to a more experimental approach. Those who rely on traditional strategic thinking—an approach one roundtable... View Details

Keywords: by Linda A. Hill, Ann Le Cam, Sunand Menon, and Emily Tedards; Technology

30 May 2005
Research & Ideas

Six Steps for Making Your Threat Credible

would love to bid but only if your competitor stays out of the game. Rumors suggest that your competitor is willing to counter your bid, but you believe these are strategic leaks designed to scare you off. You know that your competitor... View Details

Keywords: by Deepak Malhotra

18 Jul 2011
Research & Ideas

Looking in the Mirror: Questions Every Leader Must Ask

analyze how it is being spent. If substantial time allocations do not match top priorities, he discusses how these tasks should be either delegated or eliminated. "When someone asks you to spend time on work that doesn't match your... View Details

Keywords: by Carmen Nobel

11 Aug 2009
First Look

First Look: August 11, 2009

insiders strategically sell shares prior to the disclosure of goodwill impairment losses. We provide evidence that insiders of goodwill impairment firms engage in abnormal selling of their shares quarters prior to the announcement of such... View Details

Keywords: Martha Lagace

08 Aug 2005
Research & Ideas

Decision Rights: Who Gives the Green Light?

late William H. Meckling note these issues: The cost of delegating decision rights to those who have the relevant information but whose motivations and goals don't align with those of the company. The cost of accurately transferring the... View Details

Keywords: by Peter Jacobs

20 Dec 2010
Research & Ideas

Panama Canal: Troubled History, Astounding Turnaround

declined after World War II. What happened? A: In defense terms, the United States finally had to recognize something that naval strategists had long realized: The Panama Canal had no strategic value. Military analysts recognized as early... View Details

Keywords: by Sarah Jane Gilbert; Transportation

15 Feb 2011
First Look

First Look: Feb. 15

knew they would have to enhance their offering to franchisees in order to recruit some of the more established "mom-and-pop" stores they planned to target as franchisees. In addition, they would need to adjust their business model such that more... View Details

Keywords: Sean Silverthorne

01 Nov 1999
Research & Ideas

Companies, Cultures and the Transformation to the Transnational

controls in all three of the American companies we studied. GE's use of strategic planning systems became the model for companies worldwide, as did Procter & Gamble's use of clear policies and practices (the Procter way) and one-page... View Details

Keywords: by Christopher A. Bartlett & Sumantra Ghoshal

11 Sep 2006
Research & Ideas

Negotiating When the Rules Suddenly Change

all contract talks likely were swamped with information and misallocated their time. Those who were willing to delegate would have been better positioned to see the big picture. Individuals and organizations should operate at a high tempo... View Details

Keywords: by Michael Wheeler; Sports

19 Mar 2006
Research & Ideas

Unlocking Your Investment Capital

risks—a process that can release more equity capacity. Finally, Merton argues, the job of managing the company's derivatives portfolio should not be delegated to in-house financial experts. The strategic... View Details

Keywords: by Ann Cullen; Financial Services

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