Areas of Expertise (10)
Andrew D. Henderson is an educator and researcher who looks at why great companies are superior performers, why some companies are better at fostering innovation than others, and the principles of effective leadership in the C-suite. He studies the factors that encourage and enable technological change, and he has looked at executive compensation and its impact on company performance and decision processes.
Henderson is an associate professor of management, and the J. Anderson Fitzgerald Centennial Faculty Fellow at the McCombs School of Business, The University of Texas at Austin. Previously, he taught at the Graduate School of Business at Columbia University, and was a project manager and R&D scientist with IBM.
His research areas are compensation, corporate governance, decision theory, organizational change and redesign, organizational design, and strategic management. Henderson is widely published among the top strategic management journals, and a frequently invited speaker, including multiple presentations at annual meetings of the Academy of Management.
The University of Texas at Austin: Ph.D., Strategic Management 1996
The University of Texas at Austin: M.B.A., Business Administration 1990
Rice University: B.Sc., Electrical Engineering 1982
Media Appearances (3)
The Perils of the Chief Who Stays Too Long at the Top
Financial Times online
“People who get to the top tend to be both skilled and pretty fortunate, which gives them a certain level of self-confidence and makes them less open to new ways of thinking,” says Andrew Henderson
When Bad Luck Is a Crime
The Wall Street Journal online
"If you have a large number of players in a game in which luck plays a major role, then some players will assemble seemingly impressive winning records by chance alone."
The 7 Secrets of Really, Really Lucky Companies
Boston Globe print
According to their analysis of 13 of the most influential business success books, three quarters of the purportedly great companies had track records that could just as easily have been explained by the vicissitudes of random chance.
Listing of top scholarly works by Andrew D. Henderson.
We benchmark how long a firm must perform at a high level to be confident that it is something other than the outcome of a time-homogeneous stationary Markov chain defined on the state space of percentiles.
We argue that the opportunities for adaptive learning are limited because (1) a CEO assumes office with a relatively fixed paradigm that changes little thereafter; (2) inertia limits the speed at which an organization can align itself with a new CEO's paradigm; and (3) for any within-paradigm learning to occur, the external environment must be stable enough so that the cause–effect relationships that CEOs glean today remain relevant tomorrow.
We found that although economic theory was a better predictor of the size of CEO pay gaps, there was a balance between the economic and behavioral views as predictors of firm performance.
Overall, this study suggests that multiple patterns of organizational age dependence may simultaneously exist within a single population.
Chief executive compensation was higher in firms whose diversification strategy, approach to technology, and top management team structure placed particularly high information-processing demands on their CEOs.