Essay About Fungible Modules And Product Success Rates

Managing and Partnering with External Stakeholders
Managing and partnering
with external stakeholders
leffrey S. Harrison and Caron H. St. lohn
Executive Overview The weakening of the traditional management hierarchy, the hollowing out of
corporations, and an increasing management emphasis on boundarylessness
have created a new mind set concerning external stakeholders. Increasingly,
organizations are moving beyong traditional stakeholder management
techniques to partnering tactics that lead to the achievement of common goals.
In spite of these trends, there has been very little effort in the management
literature to tie stakeholder management and partnering tactics. This article
demonstrates how successful partnerships with stakeholders create such valued
benefits as increased product success rates, increased manufacturing efficiency,
the development of distinctive competencies arising from partnerships with local
communities or government agencies, reduced unfavorable litigation, reduced
levels of negative publicity, and favorable regulatory policies.
Business already is moving to organize itself into virtual corporations:
fungible modules built around information networks, flexible work forces,
outsourcing and webs of strategic partnerships.
This statement from a recent Fortune magazine cover story reflects the times we
live in. Organizational boundaries are becoming fuzzy. Traditionally
independent external stakeholder groups such as suppliers and customers are
included in product design, quality training and other formerly confidential
internal processes. Cross-ownership among organizations that have stakes in
each other has created keiretsu-type alliances not only in Japan but in most
other industrialized nations. These alliances can facilitate the flow of
information and capital and enhance planning processes.
Ford, for example, has formed an extensive keiretsu through equity holdings,
acquisitions, international alliances and research consortia. Ford has large
equity