October 31-November 3, 2004

Caribe Hilton

San Juan, Puerto Rico

This year’s conference focuses on one of the most fundamental challenges ofstrategic management — balancing the pursuit of ongoing innovation against theceaseless demand for greater efficiency. Rather than balancing these two competingobjectives, organizations often seem to be pulled in one direction or another —announcing ambitious growth initiatives one day and downsizing the next. Somefirms do manage to simultaneously innovate and execute, create and capture value,differentiate through both features and cost — but these are uncommon and somewould say unsustainable. We will engage in a dialogue together to better define,understand, and pursue firm choices related to strategic balance with insights fromresearch and experience across an unrivalled population of firms and contexts.

The program brings together hundreds of business leaders, consultants andacademics from around the world to share their insights regarding the challenge ofstrategic balance. Among the executives, we will hear from—

• Jerry Fishman, CEO of Analog Devices;

• Roger Lacey, Chief Strategist at 3M;

• François Vulliod, Director of Strategy for France Telecom; and

• Christine Lloyd, Head of Organization Development and Change forNokia.

Leading academics and consultants will also speak, including —

• Uta Werner who will describe how she has helped Marakon clientsin the process of “profitable discovery”;

• Jay Galbraith who will show us how the “front” and “back” parts ofthe organization can be designed to pursue seemingly contradictorystrategic priorities; and

• Rita McGrath who will endorse entrepreneurship and the use ofstrategic options as the means to achieve strategic balance.

Equally important, in the best tradition of previous SMS meetings, we have createdmyriad opportunities for real dialogue and personal interaction — where we can talkface to face informally about the effect of particular business environments,competitive strategies and organizational dynamics on strategic balance.

And what better environment to confront difficult challenges, discuss emergingtheory and debate alternate approaches than the sunny Caribbean? The CaribeHilton – one of the world’s premier resorts – offers a wonderful setting. It combineslush surroundings, warm hospitality and state-of-the-art meeting facilities with theconvenience of a location just 15 minutes from the San Juan airport. This venueprovides the perfect opportunity to strike a balance between relaxation andprofessional development. We hope you will join us.

Patricia Gorman CliffordConference Co-Chair

University of Pennsylvania

Steven W. FloydConference Co-Chair

University of Connecticut

The Strategic Management Society (SMS) is a

nonprofit, professional society with more than

2,000 academic, business, and consultant

members from more than 50 countries.

Membership is available to individuals only.

SMS membership includes a subscription to

the Strategic Management Journal, special

prices on the SMS book series, and discounted

conference fees that allow members to recoup

their annual membership dues. To learn more

about the SMS, visit the web site at

www.smsweb.org

SATURDAY, October 30

Invited PhD Workshop

SUNDAY, October 31Visit the web site to see what interestingand thought-provoking sessions the seven(7) Interest Groups have planned for the Pre-Conference sessions. E-mail thecontact person listed on the web site for theInterest Group session(s) for which youwould like to register.

Among the sessions planned are these:

Competitive and Cooperative Dynamics

Competitive Dynamics: Game Theory in Action

Dynamic Capabilities and EvolutionaryDynamics

Building Bridges across Research Cultures:Benefiting from Open-mindedness

Linking Knowledge Management to Strategy

Capitalizing on the Interfaces ofEntrepreneurship and Strategy

PRE-CONFERENCEHIGHLIGHTS

A Welcome From theConference Co-Chairs

Panel Highlights

Jay BarneyOhio State University

Doug MillerTulane University

Diversification has been misunderstood and alternatelymaligned and embraced as a route to growth andcompetitive success. Professors Barney and Miller willcomment on cutting edge academic research in this areaspanning several related fields. They will cite successfuland less successful approaches to diversification — andwill share informed perspectives on the diversificationdiscount. This session will review the pros and cons ofdiversification and its true costs and value, providinginsights driven by substantial field work and quantitativeanalysis.

Sarah KaplanUniversity of Pennsylvania

Brian KardonForrester Research

Since periods of discontinuous technical change are aconstant in many industries, “balanced” approaches tostrategy creation and communication are especiallyimportant. Professor Kaplan draws on her expertise andbackground as a scholar, consultant and author toilluminate the dynamics of strategic choice making intechnology driven firms. Using specific examples fromForrester Research and a perspective honed by keenobservation of trends and internal firm processes, BrianKardon will demonstrate the linkage between strategicplanning and successful competitive outcomes under realworld conditions.

Rich D’Aveni François Vulliod Dartmouth College France Telecom

Karen SchnatterlyUniversity of Minnesota

“Multimarket pressure and competition: Competing indifferent environments with the same firms over time”France Telecom, a technology firm in a rapidly convergingindustry, will be able to provide examples of innovating toprotect markets in a European context, where not onlytechnology issues are complicating performance, butregulatory and national versus European Union issuescomplicate performance. Extending the reach of yourcore product/market, and protecting what you currentlyhave will be critical.

Managing the tension between exploiting the core whileexploring new business models has been a source of valuecreation for Analog Devices. In their session, Mr. Fishmanand Professor Govindarajan will explain how this has beenaccomplished from both applied and academic perspectives.The audience is sure to glean useful insight from thesurprising results of their joint research.

Professor Galbraith coined the term “front-backorganization” as a way to achieve strategic balancing —allowing customer-facing elements to drive innovation whilethe back end focuses on generating efficiency. In hisaddress, Galbraith will show how his way of thinking aboutorganization design helps firms to achieve and sustain“strategic balance.”

FEATURING...

Jerry Fishman CEO, Analog Devcies

Vijay GovindarajanDartmouth College

Jay GalbraithInternational Institute for Management Development

Recognizing that operating excellence is not an option but anecessity, how do firms maintain high performance whilefostering growth in new areas? Combining academic andexperiential perspectives, Professor McGrath and ChristineLloyd will share cutting edge research and real worldexamples linking entrepreneurship to performanceoutcomes. This session emphasizes the vital role ofstrategic options and risk management in striving to achievestrategic balance.

Rita McGrathColumbia University

Christine LloydHead of OrganizationDevelopment and Change,Nokia

Panel Highlights

Michael Laüfer Wendy SmithPfizer Corporation Harvard UniversityThis panel describes the experience of the CapsugelDivision of Pfizer Corporation as they have transitionedthe business to a new set of product and processtechnologies. Michael Laufer is the VP of HumanResources and a member of the Senior Leadership Teamat Capsugel. Wendy Smith will describe the model theyhave developed to help senior teams cope with theparadoxes involved in managing such technologicalshifts.

Adam Brandenburger, New York UniversityBruno Cassiman, IESE Business SchoolHugh Courtney, University of MarylandPankaj Ghemawat, Harvard UniversityAndrew King, Dartmouth College

This roundtable session will address a number of issues,including the following questions:

What sort of questions is game theory particularly helpfulin addressing? What insights does game theory bring toquestions involving innovation or market entry thatbehavioral or other economic approaches don’t bring?How can managers incorporate game theoretic thinkingin day-to-day business?

Bala Chakravarthy Peter Lorange IMD IMDBala and Peter will describe how top managers overcomethe dilemmas associated with pursuing equally desirablebut at times opposing goals. Key parts of thepresentation will focus on the dilemmas of strategy,organization and people created by theinnovation/efficiency challenge.

Uta Werner has worked extensively with firms as they seekto balance innovation and execution under challenging realworld conditions, including time and resource constraints. Inher address, she will distill what she has learned from theseexperiences — challenging current assumptions andstretching conventional wisdoms about how firms discovernew strategies.

FEATURING...

Uta WernerMarakon Associates

Based on over 25 years of applied research and consulting,Michael Maccoby has learned what it takes to lead thestrategic change process in organizations. In his thought-provoking talk, Dr. Maccoby will discuss the promise andperils of visionary leadership.

Michael MaccobyThe Maccoby Group

Roger Lacey’s efforts to make trade-offs under uncertaintyand fine-tune strategic management processes build on alegacy of blending efficiency and effectiveness at 3MCompany. In his address, Mr. Lacey will describe theimplications of crafting and implementing a strategy thatbalances innovations in new product development withexecution and efficiency.

Roger LaceyRoger Lacey, Chief Strategist, 3M Company

CUTTING EDGE RESEARCHNo other conference presents more relevant, state-of-the-art research on strategy topics than the SMS,and nowhere else will there be so many opportunities tointeract directly with the authors. This list represents onlya few of the research topics on the program.

➤ How do Firms Learn What They Know?➤ The Role of Reputation and Learning in Strategic

Balance➤ Developing Competencies through Strategic

Alliances➤ Resource-Based Theory: What We Know, Don’t

Know and Need to Know➤ Intellectual Property Rights and Knowledge

Management➤ Sustainable Advantage in Highly Competitive

Environments➤ The Role of Place and Justice in Cooperative

Strategies➤ Strategic Decision-making Effectiveness➤ Performance: Defining the Dimensions of Success

OF SPECIAL INTEREST TOEXECUTIVES AND CONSULTANTSPractitioners who rely on knowledge to stay ahead of thecompetition will find a wealth of highly relevant material onthe program. Consider the payoffs from learning more ontopics like these — presented by the most respectedminds in the field.

➤ Senior Team Integration of Strategic Paradoxes➤ Contemporary Practices in Strategic Planning➤ Knowledge Transfer Methods: Function, Timing and

Effectiveness➤ Top Level Balancing Acts: Fostering Ambidexterity in

Executive Teams➤ Al Qaeda Terrorism: Its Impact on Strategic Planning

in Selected U.S. Corporations➤ Bankruptcy and CEO Ethics➤ The Involvement of Boards in Strategy Process➤ CEO Selection and Succession➤ Strategy Execution: Toward a Logic of Doing➤ Business Models and Strategies of Imitation

SESSIONS FOR EDUCATORSIn today’s challenging environment, teaching the conceptsand skills of strategic management has never been moreimportant. The list below identifies a few of thepresentations created especially for teachers of strategicmanagement.

➤ Strategies for Teaching Strategy in a DistanceEnvironment

➤ Strategic Problem-Solving in the Internet World➤ Combining Scenario Analysis with Distributed Artificial

Intelligence➤ Using Simulations to Teach Strategy➤ Teaching Strategy Using Multiple Perspectives➤ Innovation as Practice: Implications for Learning and

Education➤ Teaching Managers to Become Better Strategists➤ Strategy Concepts and Contrasts among Educators and

Practitioners➤ What They Don’t Teach You in Strategy Classes

PROGRAM HIGHLIGHTS

Thought leaders from around the world will converge inPuerto Rico. These are just a few of the topics and panelsthat will appear.

In Search of Strategic TransformationGeorge Yip, London Business School; Timothy Devinney, University of NewSouth Wales; Gerry Johnson, University of Strathclyde

Family Matters: The Dynamics of Family EnterprisesIn a Global Economy

Antonio Luis Ferre, Grupo Ferre Rangel; Eric Gedajlovic, Univeristy ofConnecticut; Michael Lubatkin, University of Connecticut/EM Lyon; Ernesto Poza and William Schulze, Case Western Reserve University

Outsourcing Strategies for Achieving the Innovation— Efficiency Balance

Albert Martinez, University of Puerto Rico; Subhro Sen, FSO Magazine andOutsourcing Intelligence Bulletin; Stephen Tallman, University of Utah

Innovating, Innovation, and Learning in CompaniesCliff Dennett and Johan Roos, Imagination Lab Foundation; Lewis Pinault, EDS

Competitive and Cooperative DynamicsKaren Schnatterly,University of Minnesota; Doug Miller, Tulane University;Javier Gimeno, INSEAD; Vijay Govindarajan, Dartmouth College; Robert Hoskisson, Arizona State University; Ken Smith, University ofMaryland; Stephen Tallman, University of Utah

Dynamic Capabilities and Evolutionary DynamicsLaura Cardinal, Tulane University; Gianmario Verona, Bocconi University;Rajshree Agarwal, University of Illinois; Tammy Madsen, Santa ClaraUniversity; Will Mitchell, Duke University; Margaret Peteraf, DartmouthCollege; Ann Terlaak, University of Wisconsin

The Co-Evolutionary Perspective in Strategic ManagementArie Lewin, Duke University; Johann Peter Murmann, NorthwesternUniversity; Luis Vives de Prada, Massachusetts Institute of Technology;Joan Ricart, IESE Business School-University of Navarra; Henk Volberda,Erasmus University-Rotterdam

Mapping Science to Manage InnovationRichard Klavans, Strategies for Science & Technology; Peter Lane, University of New Hampshire

BUSINESS ROUNDTABLESOn Monday, specific luncheon tables will be designated as “BusinessRoundtables” for which participants can request a chair. Each tablewill be facilitated by a prominent academic or consultant. Participantswill sign up to take part in lively discussions with opportunities fornetworking around specific topics - bringing problems, solutions, andquestions to engage the group during what promises to be an info-packed lunch.

Among the topics proposed are:

Competing against Yourself - creating the next bigthing, while marketing the current big thing

Organizing for Strategic Balance - People and Key Roles

Game Theory Applications to Strategic Balance - RealWorld Risks and Results

Planning for Innovation and Execution - BalancedStrategic Planning

Leadership and Management - Balancing at the Top

EDUCATORS’ SHOWCASESESSIONSReprising last year’s successful debut, this year’s program will featureEducators from top schools around the world. Columbia, Wharton,IESE and INSEAD are among the institutions that will share theirphilosophies on executive education, highlight popular topics, andanswer questions from the audience.

EVENING ON THE BEACHAfter a day of stimulating and thought-provoking meetings, change intocasual clothes and join fellow attendees for an evening of relaxation onthe Caribe Hilton’s private ocean front beach. Feel the breeze coming offthe ocean at dusk, enjoy local music and dances, and taste native foodswhile networking with colleagues.

HOTEL INFORMATIONConference Hotel Caribe Hilton, San Juan

Los Rosales StreetSan Geronimo GroundsSan Juan, Puerto Rico 00901 USA

SPECIAL SMS CONFERENCE ROOM RATE:Single $ 150 USD Extra person in room $ 35 USD

SPECIAL ROOM RATE: (subject to room availability): October 28 - November 6, 2004

CUT-OFF DATE: October 7, 2004

Room availability is limited. Although the Caribe Hilton will make everyeffort to meet participant’s requirements, accommodations and thespecial conference room rate cannot be guaranteed after October 7,2004. The hotel operates on a “first come-first served” basis withincoming requests.

Contact the hotel directly for reservations, and remember to use thegroup code (STRA102804) to receive the special room rate. Speakdirectly with the Hotel Reservations. All reservations must beaccompanied by a first night room deposit, or guaranteed with a majorcredit card.

Phone: (787) 721-0303Fax: (787) 724-6992E-mail: Reservations.caribe@hilton.com

Reservations group code - STRA102804

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October 31-November 3, 2004Caribe HiltonSan Juan, Puerto Rico

www.smsweb.org

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Strategic Management Society

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