Davos 2010 - IdeasLab with University of Pennsylvania & The Wharton School - Michael Useem | Summary and Q&A

TL;DR

The importance of leadership, teamwork, ownership, governance, employees, and patience in driving innovation and success in organizations.

Questions & Answers

Q: How does leadership impact organization performance during difficult times?

Leadership plays a critical role in guiding organizations through challenging times by providing direction, making decisions, and rallying teams towards success. It can significantly impact performance outcomes.

Q: What is the relationship between team diversity and innovation?

Academic evidence suggests that diverse teams, with varied backgrounds, experiences, and customer perspectives, are more likely to foster innovation within a company. Different viewpoints and expertise lead to more creative solutions.

Q: How much do CEO appointments affect a company's stock value?

CEO appointments can have a substantial impact on a company's stock value. A successful appointment, such as Mark Herd's move to Hewlett Packard, led to a $6 billion increase in market capitalization, demonstrating the value of effective leadership.

Q: How do institutional investors influence company performance?

Institutional investors can have both positive and negative effects on company performance. While they often support and engage with companies on research and development, they can also be short-term focused and push for changes if performance falters.

Summary & Key Takeaways

• Leadership is crucial during challenging times and can greatly impact a company's performance.

• Team diversity, in terms of background, experience, and customer base, leads to greater innovation.

• The right CEO appointment can significantly improve a company's performance.

• Institutional investors can both support and push companies based on short-term performance.