Mikolaj Jan Piskorski, Dan Denison & Anand Narasimhan

Professors at IMD Lausanne (External contribution by Jorrit Volkers, Dean, Deloitte University EMEA; R&D by Ivy Buche)

The design of an organization serves to align the organization’s capabilities with the demands made by its environment. The rate and pace of change, restructuring, globalization, and the move from a product- to a service-driven business model often involve redefining the logic of the organization design in a way that is compelling for employees. In the past, an organization structure – once mapped – could remain intact for decades.

Nowadays, it is essential to continuously restructure to protect the core business and adapt to new opportunities. This is because employees increasingly have to deal with the complexities that come from oscillating between centralization and decentralization, exerting influence without authority, operating with virtual teams and so on. To cope and thrive in such dynamic environments, an organization needs to apply distinctive design criteria.

Rajiv Lal & Jose B. Alvarez

Professors at Harvard Business School

The growth of ecommerce is creating new leaders in retail while putting many famous brands at risk. Professors Rajiv Lal and José Alvarez pick the winners and losers in part two of our series on their new book, Retail Revolution. PLUS: An excerpt on the future of grocery stores.

The new book Retail Revolution: Will Your Brick-and-Mortar Store Survive? lays out the thesis that traditional store-front retailing is at an inflection point, under tremendous pressure from ecommerce and the changing wants and needs of a new generation of shoppers—the millennials.

In Part 2 of our three-part interview with Harvard Business School Marketing professors Rajiv Lal and José B. Alvarez, they discuss who is winning this revolution and which brands appear to be losing ground.

Alex Shaw, Haotian Zhou

University of Chicago Booth School of Business

Uncertainty can often inspire anxiety. It has been shown to have negative effects on the markets and even the economy at large. But research suggests that uncertainty in rewards can motivate us to pursue goals.

Chicago Booth’s Ayelet Fishbach and Christopher K. Hsee, and coauthor Luxi Shen of the Chinese University of Hong Kong, a recent Booth graduate, investigated the relationship between uncertainty and motivation by offering participants in a study a reward to complete an unpleasant task and manipulating the magnitude and certainty of this reward.

Jeremy Simon

Writer, McCombs School of Business

Your head may be full of business improvement ideas, but there’s a chance your manager doesn’t want to hear them. That’s a problem for your organization, says Ethan Burris, associate professor of management at the McCombs School of Business.

Successful companies seek out ideas from all employees and then put good ideas into practice, Burris noted in his lunchtime talk at the Texas Enterprise Speaker Series on March 31. “If we’re going to increase performance overall, it’s dependent on employees having candid conversations about what works and what doesn’t, and then having their managers take action,” he said.

So why wouldn’t a manager want to hear from employees? Burris pointed to two related theories:

Robert Preer

Writer, Cornell Enterprise

The basic approach to marketing a beverage used to be straightforward: Craft an appealing logo and a catchy jingle, sign up a celebrity endorser, produce a series of television commercials and magazine ads, and perhaps put up billboards and insert coupons in Sunday newspapers.

The maker of Red Bull, the world’s largest selling energy drink, adopted a different formula. To promote the beverage, which was launched in Austria in 1987 and introduced to the United States a decade later, the Red Bull company established its own media organization. Red Bull Media House produces a print magazine, video games, feature films, records, mobile apps, and programming for television, radio, and online media. Red Bull also owns several auto racing teams, as well as professional soccer franchises in the United States, Europe, and Africa.

Ed Robinson

Writer, Capital Ideas, Chicago Booth

Paid internet search ads, also known as search-engine marketing (SEM), dominate online advertising. According to the latest figures available, advertisers spent $18.4 billion on paid search ads in 2013, or 43 percent of total US internet advertising revenue.

But many of those ad dollars being spent by well-known companies may be going to waste. A study of SEM’s impact suggests that while it might help bring in some new or infrequent customers, it doesn’t appear to have much impact on another important audience: frequent internet users seeking well-known brands.