Environmental scanning— the state of the art

In recent years increasing attention has been devoted to amplifying individual elements of corporate planning systems—among them the environmental scanning element. Moreover, the unprecendented intensification of corporate environmental complexity has led to a proliferation of approaches to scanning the general environment. However, a recent survey of a dozen U.S. companies has questioned whether such scanning practices have, in fact, been established in an ongoing manner. The author provides evidence here, based on publicly available information, of at least nine leading organizations where the practice of scanning for planning appears to have taken firm root. A discussion of the many facets of the resulting composite picture of sophisticated wide angle scanning leads to the anticipation that it is, in fact, on the threshold of rapid diffusion in the corporate world.     

Do the benefits of the new OSHA HIV/HBV standard justify the costs?

On December 6, 1991, OSHA published its "final standard" for controlling occupational exposure to HIV and HBV. While the main thrust of the standard is sound, in some physicians' assessment, some of the detailed emphasis may be misdirected. They fear that the burdens imposed by the standard may be greater than the benefits derived from it. "Health Law" is a regular feature of Physician Executive contributed by Epstein, Becker, and Green. Mark Lutes of the firm's Washington, D.C., offices serves as editor for the column.     

Should the physician executive be the physician's advocate?

Medical staff commonly want to know if a prospective physician executive will serve as their advocate to management. A successful physician executive must like and respect physicians. But the question of advocacy must be answered thoughtfully, because the candidate must not imply that he or she will defend any action by any physician. A three-part conditional response is advisable.     

Following the Herd or Not?: Patterns of Renewal in the Netherlands and the UK

How do large firms conduct their strategic renewal journeys in an increasingly turbulent environment? Are there generic industry patterns, or are these renewal journeys country- or firm-specific? To answer these questions, we examine the relative incidence of external versus internal and explorative versus exploitative renewal actions, and their speed, in leading Dutch and UK financial service companies using longitudinal data. The context, content and process dimensions of strategic renewal are distinguished, and research questions about these attributes are formulated and investigated using new metrics. Findings show that while exploration/exploitation ratios are fairly similar for firms across the entire industry, systematic differences are evident between the external/internal renewal ratios of Dutch and UK firms, and that speed of renewal is largely determined at the firm level. Thus we find that industry-, country- and firm-specific factors all influence journeys of strategic renewal in distinctive and complementary ways.     

Can the patient be the focus of managed care?

If the question were simply put: "What is it that succeeds or fails to meet patients' needs in managed care?" Dr. John M Ludden would have a short answer. "It depends. Success depends on whether you are talking about individuals or about populations of patients. And it depends on whether you are talking about meeting patients' needs or their desires. It depends on whether you're talking about well patients or sick patients, young patients or older patients, new patients or established patients, rich patients or poor patients. And it depends on your ability to balance each of these qualities." This article explores how to translate high-quality care for a population to high-quality care for individuals.     

Children and Planning: To What Extent Does the Scottish Town Planning System Facilitate the UN Convention on the Rights of the Child?

Children are often not given explicit attention in land use planning outside of allocating space for schools, parks and playgrounds. This is problematic as children both use and navigate beyond these settings, and findings from research on and with children report how they are frequently marginalized in society. This is partly affected by the way town planning systems treat children's spatial needs and participation. Therefore, this article investigates whether and how the Scottish town planning system acknowledges children, particularly in light of the internationally recognized rights set out in the UN Convention on the Rights of the Child (UNCRC). It uses critical discourse analysis of key Scottish planning policies, along with a survey of Scotland's planning authorities to ascertain the extent to which children are provided for and participate in the system. It argues that children's rights are not widely acknowledged or incorporated into town planning policy and practice, and suggests this must be addressed to achieve greater social justice and support Scotland's commitments as a signatory of the UNCRC.     

Sticky Price Models of the Business Cycle: Can the Contract Multiplier Solve the Persistence Problem?

We construct a quantitative equilibrium model with firms setting prices in a staggered fashion and use it to ask whether monetary shocks can generate business cycle fluctuations. These fluctuations include persistent movements in output along with the other defining features of business cycles, like volatile investment and smooth consumption. We assume that prices are exogenously sticky for a short time. Persistent output fluctuations require endogenous price stickiness in the sense that firms choose not to change prices much when they can do so. We find that for a wide range of parameter values, the amount of endogenous stickiness is small. Thus, we find that in a standard quantitative model, staggered price‐setting, alone, does not generate business cycle fluctuations.     

The changing role of the supervisory board chairman: the case of the Netherlands (1997–2007)

Over the last ten years, the corporate governance context in most Western countries has changed as a result of irregularities, increased regulation, heightened societal expectations and shareholder activism. This paper examines the impact of the changing context on the role of chairmen of supervisory boards in the Netherlands. Based on a combination of thirty semi-structured interviews with board members of leading Dutch corporations and secondary data on the position of supervisory board chairmen at the top-100 listed firms in the Netherlands, the study reveals that board chairmen have become increasingly involved in both their control and service roles. While the demographics (i.e., age, tenure, gender and nationality) of chairmen have hardly changed over the last decade, chairmen are spending considerably more time on boards and committees, have reduced the number of board interlocks and have become more active on the forefront of the corporate governance discussion. The paper highlights several implications for scholars and practitioners.     

Which way to the frontier? Physician executives talk about the future

The author interviewed trustees, senior managers, and physicians at Moses Cone Health System in Greensboro, North Carolina, Legacy Health System in Portland, Oregon, and Henry Ford Health System in Detroit, Michigan. These three successful health care systems bracket the national market in size, geography, and managed care penetration. The comments of physicians are presented here, drawn from the book, Designing 21st Century Health Care: Leadership in Hospitals and Healthcare Systems. What emerges most clearly from their comments is the enormity of the task ahead. There is wide-spread agreement that substantial improvements in the quality and cost of care are possible, an encouraging stream of anecdotes and ideas about how to proceed, but a lack of consensus on critical components of how to organize practices and promote effective care.     

Is the German system of corporate governance converging towards the Anglo-American model?

This paper analyses whether the German corporate governance is converging towards Anglo-American practices. We summarise the extant empirical evidence on the various governance mechanisms that economic theory suggests ensure efficiency and describe recent legal developments. We find no clear signs of convergence in form, i.e. the main distinctive features of the German system have remained largely unaltered. However, changes occurred over the last decade (specially in the legal framework) suggest a certain convergence in function, i.e. some governance mechanisms have effectively incorporated aims and/or goals generally associated with the Anglo-American model.

Procurement strategies in the presence of the spot market—an analytical framework

This paper investigates a problem in which a buyer can procure from a regular supplier as well as from a supplier in a spot market, possibly formed over the Internet. The contract with the regular supplier specifies a predetermined order volume and price, while the spot market has unlimited supply but a varying spot price. We analyse this problem from a buyer/supplier perspective, and an analytical model is developed to analyse two distinctive procurement strategies: the pure procurement system (PS) and the mixed procurement system of regular supplier with a supplier in spot markets (MS). Without loss of generality, we obtained a closed-forms solution that enabled us to provide numerical analysis on the procurement strategies, and allowed us to compare further the different characteristics between PS and MS. The results of our analysis demonstrate that the use of spot market could effectively mitigate the risk associated with demand uncertainty facing the buyer. The results also show that adopting MS can generate a higher buyer's profit than the PS, and significant supply-chain profit improvements can indeed be achieved through buyer/supplier coordination. Furthermore, spot price volatility leads to the facilitation of the use of spot markets, improving the buyer and the supply-chain profitability.     

Risk Management and the Responsible Corporation: How Sweeping the Invisible Hand?

Although enterprise risk management (ERM) has many benefits for corporations, there has been virtually no discussion of the extent to which its practice may be said to constitute corporate social responsibility. This article presents a prima facie case for the convergence of the two and examines this case through a consideration of four possible objections or challenges. The conclusion of this article is a tempered optimism that ERM has the significant, but as yet untapped, potential to constitute socially responsible activity, which, if realized, would enable Adam Smith's invisible hand of the marketplace to have an expanded sweep.     

FEMA and the Witt Revolution: Testing the Hypothesis of “Bureaucratic Autonomy”

In the wake of widespread criticism for its poor performance in Hurricane Andrew in 1992, FEMA became a more effective organization under the leadership of James Witt (1993–2001). One answer to the question of how and why FEMA improved so rapidly and significantly during this period is Carpenter’s (2001) theory of “bureaucratic autonomy.” This paper defines the minimum conditions Carpenter considers necessary for the term, evaluates their applicability to FEMA during this period, and briefly examines alternative explanations for FEMA’s organizational transformation. It concludes that the innovation and entrepreneurship FEMA demonstrated during this period do indeed meet the criteria for “bureaucratic autonomy.”

Is it the Brazilian Way? Extending the Comparison of Public and Private Organizations

This study investigates the differences in select organizational characteristics, managerial practices and work attitudes among 670 public and private sector workers in Brazil. The results indicate that in some aspects there is a moderation effect by type of organization. For example,when public employees score high on autonomy and task significance, perceive organizational practices as favourable, and keep membership in the same organization, they tend to be more satisfied than private sector workers. Overall, the findings highlight the need for more international comparisons to gain a better understanding of the public-private distinction.     

Can the Augmented Solow Model with Migration Explain the Italian Internal Brain Drain?

We extend the Dolado et al. (1994) model to both inflows and outflows of migrants and assume that they have a human capital endowment that contributes to increase/decrease the stock of human capital in the receiving/sending economy. We derive the conditional convergence equation in which the impact of migration flows on the growth rate is disentangled in a pure quantity effect and in a quality or composition effect of immigration and emigration rates that accounts for the relative human capital endowment of migrants with respect to resident population. Next, we test the model with Italian regional data for the 1970–2005 time period. We find that the model provides a good explanation of the Italian experience. The quantity effect is negative for the immigration rate and positive for the emigration rate, whereas the composition effect is positive for immigration and negative for emigration. Finally, we separate the centre‐north from the south and find that the composition effect of emigration is stronger for the latter. We interpret these results as a clear evidence of a brain drain from the Mezzogiorno to the centre‐northern regions.     

Early involvement in the design chain—a case study from the computer industry

This work presents a case study of how a design chain, with more than three tiers of organisations (customer, manufacturer, and supplier), can involve its members in the early stages of the design and development process to meet their needs more effectively. A vertical design chain model, consisting of strategy, process and information levels, is adopted to elucidate how a computer company can provide for different customers and use various suppliers to create synergy within the design chain. The results of this study demonstrate that the re-engineering of cross organisation product design flow, product data management software applications and the integration of information from various parties are critical to the early involvement in a vertical design chain. Based on this case study, the proposed early involvement model can shorten the time taken to develop new products and considerably reduce the number of engineering changes for various manufacturers.