Is “transgenerational response” a hidden cause of failed corporate turnarounds and chronic underperformance?

Authors: Oliver, J.

Journal: Strategy and Leadership

Volume: 45

Issue: 3

Pages: 23-29

ISSN: 1087-8572

DOI: 10.1108/SL-01-2017-0006

Abstract:

Purpose: CEO turnover and chronic corporate underperformance are examined through the lens of Transgenerational Response. Design/methodology/approach: The criteria for investigating Transgenerational Response in corporations consisted of identifying a Critical Corporate Incident, the number of corporate generations and the resultant corporate financial performance. Findings: The evidence presented in the case studies illustrates how a Critical Corporate Incident has produced the consequential effect of chronic financial performance in the years following the incident. Research limitations/implications: These case studies have not presented the “actual” adaptive responses, inherited attitudes and behaviours that have subsequently embedded themselves in a new corporate culture, post the Critical Corporate Incident, to the detriment of the long-term health and performance of each firm. Practical implications: Examining CEO turnover and chronic corporate underperformance through the lens of Transgenerational Response means that business leaders can identify how a historic event has affected the performance of their firm in subsequent generations. With this knowledge in hand, they will be able to examine the inherited attitudes and behaviours, organizational policies, strategy and adaptive cultural routines that have combined to consolidate the firms chronic under performance. Originality/value: This is a highly original, evidence based, idea that has the potential to reshape our current understanding of CEO turnover and underperforming firms. It will help business leaders identify how a historic event has affected the performance of a firm in subsequent generations.

https://eprints.bournemouth.ac.uk/29348/

Source: Scopus

Is “transgenerational response” a hidden cause of failed corporate turnarounds and chronic underperformance?

Authors: Oliver, J.

Journal: Strategy & Leadership

Volume: 45

Issue: 3

Pages: 23-29

Publisher: The Strategy and Leadership Forum

ISSN: 1087-8572

DOI: 10.1108/SL-01-2017-0006

Abstract:

When organizations that have survived traumatic reversals – for example, product failures, ethical scandals or market disruption – attempt turnarounds, they usually seek a fresh start, adopting a new strategy and installing new leadership. But if this new initiative doesn’t work and the firms continue to suffer from chronic under performance, the cause could be “transgenerational response,” a potentially crippling long-term condition stemming from the trauma that occurred in the past (see the cases of AIG and Yahoo).

Transgenerational response syndrome is well known in medical and biological research. The term describes a severe environmental condition that creates a negative adaptive response in an organism. The response is transmitted to future generations and adversely influences their development and health. Healthcare research has identified, for example, adverse transgenerational effects of inadequate maternal nutrition, which harms the development and health of future generations. Even traumatic experiences can cause both physical and psychological consequences for several generations of descendants of survivors. One of the most illuminating studies into transgenerational response was an examination of the effects of post-traumatic stress disorder (PTSD) in babies of mothers exposed during pregnancy to the World Trade Center attack in 2001.[1] The study concluded that the effects of maternal PTSD, as a result of this catastrophic event, were passed on to their babies. The evidence: their significantly smaller than average birth weight and a permanent vulnerability to depression, stress related illnesses and an increased distress response to disturbing events.

https://eprints.bournemouth.ac.uk/29348/

Source: Manual

Is “transgenerational response” a hidden cause of failed corporate turnarounds and chronic underperformance?

Authors: Oliver, J.J.

Journal: Strategy & Leadership

Volume: 45

Issue: 3

Pages: 23-29

ISSN: 1087-8572

Abstract:

When organizations that have survived traumatic reversals – for example, product failures, ethical scandals or market disruption – attempt turnarounds, they usually seek a fresh start, adopting a new strategy and installing new leadership. But if this new initiative doesn’t work and the firms continue to suffer from chronic under performance, the cause could be “transgenerational response,” a potentially crippling long-term condition stemming from the trauma that occurred in the past (see the cases of AIG and Yahoo). Transgenerational response syndrome is well known in medical and biological research. The term describes a severe environmental condition that creates a negative adaptive response in an organism. The response is transmitted to future generations and adversely influences their development and health. Healthcare research has identified, for example, adverse transgenerational effects of inadequate maternal nutrition, which harms the development and health of future generations. Even traumatic experiences can cause both physical and psychological consequences for several generations of descendants of survivors. One of the most illuminating studies into transgenerational response was an examination of the effects of post-traumatic stress disorder (PTSD) in babies of mothers exposed during pregnancy to the World Trade Center attack in 2001.[1] The study concluded that the effects of maternal PTSD, as a result of this catastrophic event, were passed on to their babies. The evidence: their significantly smaller than average birth weight and a permanent vulnerability to depression, stress related illnesses and an increased distress response to disturbing events.

https://eprints.bournemouth.ac.uk/29348/

Source: BURO EPrints