Outsourcing for Radical Change: A Bold Approach to Enterprise Transformation

  1. See Kathy Hudson’s presentation on the deal at http://ais99.sba.uwm.edu/outsourcing.ppt.

  2. Lou Gerstner, Who Says Elephants Can’t Dance? Inside IBM’s Historic Turnaround (New York: HarperBusiness, 2002), p. 242.

  3. C. K. Prahalad and G. Hamel, ‘‘The Core Competence of the Corporation,’’ Harvard Business Review, May/June 1990, pp. 79–92.

  4. Frances Clark et al., ‘‘Long-Run Costs and Performance Effects of Competitive Sourcing,’’ Center for Naval Analyses, 4825 Mark Center Drive, Alexandria, VA 22311–1850, CRM D0002765.A2, February 2001, pp. 2–6.

  5. E. R. Greenberg and C. Canzoneri, Outsourcing: the AMA Survey (New York: American Management Association, 1997), p. 4.

  6. Marq R. Ozanne, D&B Barometer of Global Outsourcing, 2000, www.dnbcollections.com/Library/kbarom.htm.

  7. Frederick M. Zimmerman, The Turnaround Experience (New York: McGraw-Hill, 1991), p. 72.

  8. M. T. Hannan and J. Freeman, Organizational Ecology (Cambridge, MA: Harvard University Press, 1984), pp. 16–18. ‘‘Structural Inertia and Organizational Change,’’ American Sociological Review 49, no. 2, pp. 149–164.

  9. H. W. Volberda, ‘‘Towards the Flexible Form: How to Remain Vital in Hypercompetitive Environments,’’ Organization Science 7, no. 4 (1996), pp. 359–374.

  10. John Kotter, ‘‘Why Transformation Efforts Fail,’’ Harvard Business Review, March-April 1995, pp. 59–67.

  11. Jane Linder and Susan Cantrell, ‘‘Carved in Water: Changing Business Models Fluidly,’’ Accenture Institute for Strategic Change Research Report, December 2000, pp. 8–10, www.accenture.com/isc.

  12. Robert D. Austin and Richard L. Nolan, ‘‘IBM Corporation Turnaround,’’ Harvard Business School case study 9–600–098, revised November 14, 2000, p. 6.

  13. Banks ranked by total assets according to Online Banking Report, http://onlinebankingreport.com/resources/100.html.

  14. Roger Mitton, ‘‘‘Everyone Was Shocked’ A Scandal Climaxes as the Sultan’s Brother Is Sued,’’ Asiaweek.com 26, no. 9 (March 10, 2000),p. 1, http://www.asiaweek.com/asiaweek/magazine/2000/0310/nat.brunei.jefri.html.

  15. Jane Linder, ‘‘Outcomes Measurement in Hospitals: Can the System Transform the Organization?’’ Hospital & Health Services Administration 37, no. 2 (Summer 1992), pp. 143–166.

  16. Douglas Smith and Robert Alexander, Fumbling the Future: How Xerox Invented, Then Ignored the First Personal Computer (New York: William Morrow, 1988), p. 122.

  17. For a useful review of all the ways internal change initiatives are inherently self-defeating, see Andrew Molinsky, ‘‘Sanding Down the Edges: Paradoxical Impediments to Organizational Change,’’ Journal of Applied Behavioral Science 35, no. 1 (March 1999), pp. 8–24.

  18. Jane Linder and Dwight Crane, ‘‘Bank Mergers: Integration and Profitability,’’ Journal of Financial Services Research 7, no. 1 (January 1993), pp. 35–55.

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