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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
All rights reserved. No part of this work covered by the copyright herein may be reproduced
or used in any form or by any means—graphic, electronic or mechanical without the prior
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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
Business Journal; and the article in Chapter 3 was first published in the July/August
2008 Ivey Business Journal (www.iveybusinessjournal.com).
Care has been taken to trace ownership of copyright material contained in this book. The
publisher will gladly receive any information that will enable them to rectify any reference
or credit line in subsequent editions.
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.