Making an M&A deal “work” is one of the hardest tasks in business. A handful of best practices can reduce the risk and give the deal a fighting chance. The inherent danger in due diligence is not that companies fail to do it, but that they fail to do it well. The deals that are being struck...

This article urges executives to expand their view of risk. Instead of just defending against bad risk events, leading companies define and anticipate the upside risks that, when well managed, can deliver the maximum rewards. The discipline of strategic risk management allows firms to raise...

Managers in developed countries are increasingly interested in outsourcing as a potential source of competitiveness and value creation. There has been a growing awareness of the potential of outsourcing to support a range of strategies beyond that of lower cost. This article makes corporate...

Purpose – How des Xilinx Corporation, with worldwide headquarters in San Jose and European headquarters in Dublin, stay on Fortune magazine's top‐ten‐best‐companies‐to‐work‐for list and remain the market leader in the programmable logic segment of the semiconductor industry?...

Purpose – A risk to reputation is a threat to the survival of the business, but senior executives seldom focus on it. Design/methodology/approach – The reputational collapses in four cases (Merck, Marsh, Anderson and Monsanto) share a single striking feature: they were not limited to a small...

Purpose – The author points out that the same strategic behaviors that are associated with great success are also associated with failure. That is, the greatest rewards pose the greatest risks. He explains how corporations should manage risk differently at different levels of responsibility...

Purpose – Introduces the cash curve, a tool for monitoring the payback on innovation that has proved helpful in decision‐making, planning, analysis, and communication. The cash curve graphically plots cumulative cash flow over time. Design/methodology/approach – Describes the four “S”...

Purpose – The author offers a perspective on the complex new concepts of Michael Raynor and others on managing strategic risk. Design/methodology/approach – The author explains Raynor's theories of strategic paradox, strategic options, requisite uncertainty and strategic flexibility, all of...

Purpose – Over the last several years, many corporate boards have sought a more substantial role for directors in the strategy‐setting process. The author suggests a proven system for educating board members about company strategy and gaining a more valuable contribution from them....

Purpose – This case aims to chronicle the dismantling of Tenneco – a large, prosperous diversified firm. Because it failed to manage risk, its best assets ultimately had to be sold to allow its survival. Behind its actions of problematic acquisitions and questionable financial policies, are...