Recognizing Excellence in Management Thinking

Text-only Preview

Harvard Business Review Online | Winners 2005: The 47th Annual...
Click here to visit:


Winners 2005: The 47th Annual McKinsey

Recognizing Excellence in Management Thinking

The McKinsey Awards have for 47 years honored the best thinking to appear
in HBR’s pages. Reasonable people can disagree on what makes an article
“best.” But here’s how we define it for our judges: the two articles that are
most likely to have a lasting, worldwide influence on business. The winning
articles present ideas that deftly bridge the gap between theory and
practice; that make their way into organizations, where they are discussed,
adopted, and even adapted; and that change management for the better.
It has been hard to argue with the judges’ choices. In 1979, a young HBS
professor by the name of Michael E. Porter won for his first HBR article:
“How Competitive Forces Shape Strategy.” Seven of the late Peter Drucker’s
numerous contributions to HBR have been recognized. The list of winners
has also included Theodore Levitt’s seminal “Marketing Myopia,” Robert
Hayes and William Abernathy’s “Managing Our Way to Economic Decline,”
and, two years ago, “AIDS Is Your Business,” written by a group of six public
health researchers. All of these articles have had a significant and positive
impact on the way business gets done.
We believe that the judges’ picks for this year are no exception to the
tradition of excellence—and that they will leave their own distinctive mark on
the practice of management.
Harvard Business Reviewis pleased to announce that Pankaj Ghemawat,
author of “Regional Strategies for Global Leadership,” has won the first-place
2005 McKinsey Award. Steven J. Spear, author of “Fixing Health Care from
the Inside, Today,” is the second-place winner.
Since 1959, the McKinsey Foundation for Management Research has
presented awards recognizing the two best articles published each year in
Harvard Business Review. The awards, judged by an independent panel of
business leaders and scholars, commend outstanding works that are likely to
have a major influence on executives worldwide.
First-Place Winner
1 of 5
3/25/06 8:46 PM

Harvard Business Review Online | Winners 2005: The 47th Annual...
Regional Strategies for Global Leadership
Pankaj Ghemawat
December 2005
In the past decade, countless international companies have adopted, with
great fanfare, something they probably call a “global strategy.” Chances are,
however, that these strategies have proven less than satisfactory as a road
map to competition. That’s because global strategies may be ignoring the
importance of regions. The rising tide of globalization has been accompanied
by increasing, not decreasing, regionalization. In fact, trade within regions,
rather than across them, drove the surge of international commerce in the
second half of the twentieth century. Companies that find ways of
coordinating within and across regions can deliver a powerful competitive
In this article, Pankaj Ghemawat offers a new framework for competing
internationally in a world that is neither truly global nor truly local. He shows
how companies can determine if a regional strategy makes sense for them,
and he identifies five types of regional strategy they can use in conjunction
with local and global initiatives to create value in a highly regionalized world.
Pankaj Ghemawat is the Jaime and Josefina Chua Tiampo Professor of
Business Administration at Harvard Business School in Boston. He is the
author of “The Forgotten Strategy” (HBR November 2003).
Second-Place Winner
Fixing Health Care from the Inside, Today
Steven J. Spear
September 2005
2 of 5
3/25/06 8:46 PM

Harvard Business Review Online | Winners 2005: The 47th Annual...
An estimated 98,000 Americans die each year as a result of medical error,
and nearly as many succumb to infections they acquire in hospitals. Those
rates are unacceptable in the world’s most medically advanced country. U.S.
hospitals can prevent these tragedies—and save billions upon billions of
dollars—without legislation, wrenching market reconfiguration, or major
capital investments.
In this article, Steven Spear draws a blueprint detailing how techniques
borrowed from the factory floor can improve health care efficiency and
patient safety. In case after case, Spear shows how doctors, nurses, and
technicians are using continuous improvement techniques pioneered by
Toyota to improve patient care and safety. By making small, sometimes
dramatically simple process adjustments, medical professionals are
eliminating work-arounds and fixing problems on the spot. At one U.S.
hospital, deaths from certain kinds of infections have fallen a staggering
87%. At another, similar infection deaths dropped from 19 to one. If every
hospital in the country adopted these improvements, the impact would be
staggering: billions of dollars and thousands of lives saved.
Steven J. Spear is a senior fellow at the Institute for Healthcare
Improvement in Cambridge, Massachusetts. He is the coauthor, with H. Kent
Bowen, of “Decoding the DNA of the Toyota Production System” (HBR
September–October 1999) and the author of “Learning to Lead at Toyota”
(HBR May 2004).

HBR wishes to thank this year’s panel of judges for their hard work on behalf
of the 2005 awards:
Gurcharan Das
Former Chief Executive Officer
Procter & Gamble India
New Delhi, India
3 of 5
3/25/06 8:46 PM

Harvard Business Review Online | Winners 2005: The 47th Annual...
Jane E. Dutton
William Russell Kelly Professor of Business Administration
Stephen M. Ross School of Business
University of Michigan
Ann Arbor
Michael L. Eskew
Chairman and Chief Executive Officer
William Haseltine
Human Genome Sciences
Chairman and Chief Executive Officer
Haseltine Associates
Washington, DC
Robert D. Hormats
Vice Chairman
Goldman Sachs (International)
New York
Bud Mathaisel
Senior Vice President and Chief Information Officer
Milpitas, California
Renetta McCann
Chief Executive Officer
Starcom MediaVest Group
Samuel J. Palmisano
Chairman and Chief Executive Officer
Armonk, New York
Howard H. Stevenson
Sarofim-Rock Professor of Business Administration
Harvard Business School
Ludo Van der Heyden
Solvay Chaired Professor of Technological Innovation and Professor of
Technology and Operations Management
Fontainebleau, France
4 of 5
3/25/06 8:46 PM

Harvard Business Review Online | Winners 2005: The 47th Annual...
Copyright © 2006 Harvard Business School Publishing Corporation. All rights reserved.
This content may not be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy,
recording, or any information storage or retrieval system, without written permission. Requests for permission should be directed to
[email protected], 1-888-500-1020, or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way,
Boston, MA 02163.
5 of 5
3/25/06 8:46 PM