forethought A survey of ideas, trends, people, and practices on the business horizoi [Love and Fear and the Modern Boss .,su:«:«s Five hundred years ago, Niccolo Machia- vel posed the question of whether itis better for a leader to beloved or feared, Concluding that f you can't be both (and ‘ew people can), being feared is more effective. While the complexities of hu ‘man nature resist definition in such stark ‘terms ~ behaviors le along @ continuum ~ the question of far versus love has been 2 fundamental one for leaders through- cut history Unti a generation oro ago, fear was the predominant model. In the 1950s ‘and 1960s, corporal punishment was common even in publi schools, anc the workplace was.a largely hierarchical and ‘autocratic arena where leaders imposed rewards and punishments based on con: formity with the rules. Today, teachers in most ofthe developed world would instantly lose ther jobs for hitting a stu dont, and in the office, too, acceptable models of leadership have shown thie softer sie. Ths shift in the predominant, leadership model reflects the move from an industial to an information economy. 16 Harvard Business Review | January 2008 | hbxorg In factories, you need strict rules and ye reward people based on very simple an lear productivity metrics. Knowledge ‘workers don't respond well o such righ ity, and fearful service employees wou! have trouble putting on 2 good face for customers. Infield ike advertising, tig controls stile creativity and commitme ‘But even in the developed world, plenty of leaders stl ely on fear, and ‘many people continue to put up with it One reason is simply that people rationalize the fear model as “just the|g are done around here,” a5 ‘80 with hazing, arguably a form Fhip among students. Another 5 that some people fool a sense and accomplishment in toughing ‘ey find satisfaction in meeting dards of a very demanding boss. simply prefer an autocratic style ‘empowering one; they don't ‘decide how to do thelr work but ther just know the rules and om. Stil others actully belive ‘ruil imately be more suc- ‘ith a strong boss, one who will tam beyond the limits to which ‘wetch themselves, sets oe ta we ave pepe | Work under these bosses some circumstances stil call for 180d style of leadership — where {to discourage risky behavior, Ina nuclear powerplant. With the ‘ohigh on safety, tight control— ‘vsing~is prudent. Employees sel-solect ito these companies. eed todo the same —find roles ‘oh their temperaments «fa loader is stern and auto- sven rude and insulting he can reat respect i he is also authen- ithe genuinely cares about the ‘orking for him. Two of the most ful coaches in the history of col ‘ketball exemplify Machiaveli's remes the feared Bobby Kniaht ‘Tech and Mike Kreyz0wski >eloved Coach K ~and both have ‘10d followings among players. 5 whose leadership style relies | communication and caring sup- ‘ote a book ealed Leading wth 1 Knight, on the other hand, has oer marked by controversies 'sharshness, including alege- sthe choked 3 player during ‘Despite his bullying, he inspires {ous loyalty and even love. Toxas Ivers know whet they're gating into, and they know that Knight's temper is integra to his being ~and that he truly cares about them. ‘That's why five conturies after it was writen, we can stil take lessons from The Price. Leading by force and itiniation has its downsides - the potential forthe leader’ deraiment chief among them. Thanks to his violent ‘behavior and inability or urwalingness to.adapt his dominant style to changing societal norms, Knight was eventually fired from his job at Indiana University (though quickly snapped up by Texas Tech But there ae times when the softer approach to leadership is equally ineffective - or simply inauthentic ~ and rule by fear is the way to go. Successful leaders road the signals and adapt their styles accordingly, but they know their limits. stretch ssignment for leader ‘might be a developmental opportunity that brings out previously unrecognized strengins ~buti the role requires a style beyond the leader's adaptabiity, the result is often disastrous. Scott A. Snook (ssnook@hbs edu) isan associat professor inthe organizational ‘behavior unit t Harvard Business Schoo! in Boston and retired US. Army colonel eprint FOBOTA Propuct TRAN: Beware of Old Technolo: by Daniel C. Snow ‘When superior technologies emerge, old ‘ones usually don't simply fade away. To the contrary, their performance often leaps suddenly, thereby extending their lives and slowing the adoption ofthe ‘new technologies, This happened with saling ships when steam-powered ves- sels were developed. More recent exam- ples of what Icall “last gasps" include ‘manual versus computerized typesetting, CISC versus RISC architecture for com- ‘uter processors, steel versus aluminum bieyole frames, automobile carburetors vorsus electronic fuel-injection systoms, ‘and coronary artery bypass graft surgery versus engioplast. For decades, te conventional expla. nation ofthis phenomenon was behav- ioral When the old-technology com: panies faced extinction, they worked harder to find ways to stave it off. When | started conducting research on last 92898, however, | found something puzzling about this explanation. Most of the technologies that experienced a last gies’ Last Gasps ‘gasp were being sold in markets thet ‘wer intensely competitive before the raw tachaolagy arivad So the exit ing players akeady seemed tobe doing ‘everything they could to improve the old technology, caling into question the old ‘assumptions, When | delved deeper, | ‘ound that two overlooked mechanisms were at work ‘A retreat to defensible ground. In ‘most instances, the transition to the ‘ew technology is gradual. The old technology is initaly displaced from the segments of the market (or applications) to which tis relatively pooty suited, leaving iin those where it can better compete In some cases, the result isan im- provement in performance that owes litle to changes inthe technology itso. Saling ships quickly ceded short ferry routes to steam-powered ships but continued to ply the longer routes, which meant that, overall sailing vessels were spending les time doing the things hocorg | January 2008 | Harvard Business Review 17they were badatmenewering around | ages. Even though surgeons who perform harbors wth thei conned spaces and | bypasses were lft wih scr, higherak - Carenle wind condtion)and'more doing | peters, oucorws ater suervacuety | High Margins and the what they were goad at imaving across | improved for such oatients. ntums out | Quest for Aesthetic the open see witout having tocerry. | that the concenraton of ict cases {uel. As result theirperformence-2s | gave the surgeonsbetter opporuniveso | Coherence reese by everoge seed and cost por | lem how tohone ther tinue, by Robert D. Austin forethought ton of cargo moved — jumped. Use of the now to improve the In otner cases, the focus ona market old Existing technologies often borrow | ‘Companies squeezed by low-cost com: | segment does spuran improvernantin | components of the new technology petitors might be able to learn something | the old technology. My research wth Rob- | Carburetor manufacturers increased fuel_| from Danish maker of upscale waste ‘ert Huckman of Harvard Business School | ficiency by incorporating electronic baskets and soap dispansers. revealed that thishappened with corenary controls nthe products they developed | As globalization futher erodes profits artery bypass graft surgery after angio- | for electronic tus-injection systems (sae | in developed countries, brands whose plasty was introduced as a treatment for | the exhibit "The New Appears; the Old | labor is based in low-cost economies relatively healthier patients with block Improves") Producers of CISC computer | may eventually ave an insurmountable chips increased the performance oftheir | advantage over those from the devel= ‘The New Appears: the Old Improves products by edopting features of RISC oped world. Consumer product firms in When electronic fuel-injection (EFI) chips, such asthe latter's design for con- | Europe, the United States, and Japan vv syatams.tartadta replace carburetors | ducting some core processing operations. | need alternative business models. One thathes had striking success is saling well-designed and well-crafted products athigh margins —but that strategy is far from simple, Executing it correctly ‘requires that a company and its produets have what I call aesthetic coherence. inthe early 1980s, the miles-per-gallon (MP6) performance of carburetors ‘These insights into the causes of last Sannin, gasps have mar strategic implications for firms in industries where technology transitions are occurring. A danger for Car Models with EFI vs. Carburetors 0, z new-tenloy fms undeestnateg i neweemelgy fms sndresimatig | qi att ofa : bihrcadhoushot tes. Vip 8 $ e00, torn Eee east known throughout Europe for design, : the srneandutrratreny, |_| ROAM Howshout Europe odes, ‘ found tures misccatonaused_| Workman ana resonant back 20 ‘numerous tech start-ups to founder. For = serine afin ‘ Nelsen. Tne designe wasn, cotbleed yer tathave managed E ShocimparVehnici etioges, | raat irupreno0 seh anda Son Carburetors HOGIeS. | itle changed from the original that i | asener imitating he este" | igre 1009 for Marsha a | Sustanaoie merveront. Th con ad 2 thom to overestimate the prospects of meen hea heen recogniced "es @ 888888 | thei products, overinvest in trying to en- | UV the Louvre as icone. ts products 2 8 8 FB B FB = hancethem,andwaittoolong toswitch | ve reg een weatiopenble: te “limited edition” tolet brush is python ‘green, a color inspired by a satin ball ‘gown Marie wore in 1957. Every detail fits into acompeling picture, “The result ofthat aesthetic coherence is product profit margins that @ mass ‘marketer would envy. Three nunarea percent (my rough estimate) looks pretty ‘9004 10 companies that typically get single ggits on items they produce for discount retailers, “To succeed in sling high-end prod: Lets, a company needn't goto Vipp's extromes. Butts story, products, part nar, ad eva sas anes ave 1 fita coherent picture for customers. The Reprint FOBOTB | Danish audio company Bang & Olufsen, Carburetor Fuel Economy Corporation and two carburetor manu- facturers, Holey and Carter, fel into this ‘rap. From their experiences and those ‘of others i's clear thet strategy can ‘affect how transitions fom aldo new ‘technologies occur and who wins and ‘who loses. The path, pace, and outcome ‘218 not preordained, | ‘to the new technology, Digital Equisment | | Danial Snow dsnow@hos edu s the LLumry Family Assistant Professor of Busi ‘ness Administration inthe technology and ‘verations management unitat Harvard | ‘Business Schoo! in Boston [MPG above or below the average ‘978 190 vo 190 1988 18 1990 v9 18 Harvard Business Review | January 2008 | hr.org