1. March 11, 2003John Roberts1 Stanford GSB Sloan Program S258 Strategic Management 18: Strategy Process Xerox and Fuji Xerox

2. March 11, 2003John Roberts2 The Adaptive Corporation Other names Phenomenon: –able to explore and exploit, have efficiency plus growth, adaptiveness and innovation –can effectively run multiple businesses –make both large (global) and small (local) changes A rare creature

3. March 11, 2003John Roberts3 Xerox: The Accidentally Adaptive Corporation Key to Xerox’s rebirth in the 1990s was the adoption of FX ways and products These would never have existed if X had had its way and had required its strategy be implemented The JV structure gave protection and allowed the possibility of variation Cultural, market and geographic distance gave the impetus to respond to local Japanese conditions FX managers’ key role

4. March 11, 2003John Roberts4 Autonomous and Induced Strategy Processes Both have a role The danger is in role conflict and confusion across levels –e.g., CEO wants to manage the autonomous or stamp it out Ambiguous and difficult role for middle managers to select, protect and link the emergent while driving the official Front-line responsibilities

5. March 11, 2003John Roberts5 Partnerships Contractual and non-contractual elements Important to get understandings up front Not enough to get the initial contract right – must evolve Need to work on the relationship Balance of temptation and punishment (repeated game logic)

6. March 11, 2003John Roberts6 Partnership and Learning Loose coupling allows for more variation Need to work on selection and retention Often learning with or from partner is objective Concern with leakage