Harvard Business School Publishing Case Map for Gomez-Mejia/Balkin/Cardy: Management (McGraw-Hill) 2 nd edition (2005) Harvard Business School Publishing 800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]www.hbsp.harvard.edu/educators This map was prepared by an experienced editor at HBS Publishing, not by a teaching professor. Faculty at Harvard Business School were not involved in analyzing the textbook or selecting the cases and articles. Every case map provides only a partial list of relevant items from HBS Publishing. To explore alternatives, or for more information on the cases listed below, visit: www.hbsp.harvard.edu/educators Case Title Source, Number, Length, Teaching Note Geographical and Industry Setting, Company Size, Timeframe Case Decision Issue PART ONE Chapter 1: Management and Its Evolution What Effective General Managers Really Do HBR Reprint 99208 10p N/A General managers face two fundamental challenges: figuring out what to do despite an enormous amount of potentially relevant information, and getting things done through a large and diverse set of people despite having little direct control over most of them. To tackle these challenges, effective general managers develop flexible agendas and broad networks of relationships. Originally published in 1982, the article's ideas about time management are all the more useful for today's hard-pressed executives. Kotter has added a retrospective commentary highlighting the article's relevance to current concepts of leadership. PART TWO Chapter 2: Managing in a Global Environment Philips vs. Matsushita: A New Century, a New Round HBS #302049 20p Global, Europe, Japan, consumer electronics, 270,000 employees, 1970- 2001 Describes the development of the international strategies and organizations of two major competitors in the global consumer electronics industry. The history of both companies is traced and their changing strategic postures and organizational capabilities are documented. Particular attention is given to the major restructuring each company is forced to undertake as its competitive position is eroded. Illustrates how global competitiveness depends on organizational capability, the difficulty of
Transcript
Harvard Business School Publishing
Case Map for Gomez-Mejia/Balkin/Cardy: Management
(McGraw-Hill) 2nd edition (2005)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
www.hbsp.harvard.edu/educators
This map was prepared by an experienced editor at HBS Publishing, not by a teaching professor. Faculty at Harvard Business School were not involved in analyzing the textbook or selecting the cases and articles. Every case map provides only a partial list of relevant items from HBS Publishing. To explore alternatives, or for more information on the cases listed below, visit: www.hbsp.harvard.edu/educators Case Title Source,
Number, Length, Teaching Note
Geographical and Industry Setting, Company Size, Timeframe
Case Decision Issue
PART ONE Chapter 1: Management and Its Evolution
What Effective General Managers Really Do
HBR Reprint 99208 10p
N/A General managers face two fundamental challenges: figuring out what to do despite an enormous amount of potentially relevant information, and getting things done through a large and diverse set of people despite having little direct control over most of them. To tackle these challenges, effective general managers develop flexible agendas and broad networks of relationships. Originally published in 1982, the article's ideas about time management are all the more useful for today's hard-pressed executives. Kotter has added a retrospective commentary highlighting the article's relevance to current concepts of leadership.
PART TWO Chapter 2: Managing in a Global Environment
Philips vs. Matsushita: A New Century, a New Round
Describes the development of the international strategies and organizations of two major competitors in the global consumer electronics industry. The history of both companies is traced and their changing strategic postures and organizational capabilities are documented. Particular attention is given to the major restructuring each company is forced to undertake as its competitive position is eroded. Illustrates how global competitiveness depends on organizational capability, the difficulty of
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overcoming deeply embedded administrative heritage, and the limitations of both classic "multinational" and "global" models.
The Daimler Chrysler Commercial Vehicles Division
Stanford GSB #IB27 24p
Global, automobiles, 416,000 employees, 1998
The day before Daimler-Benz would officially merge with Chrysler, Dr. Kurt Lauk, head of Daimler-Benz' commercial vehicles division (CVD) reflected on the organizational changes he had directed over the course of the previous two years to make CVD more competitive in an era of industry-wide globalization. To unite an extremely decentralized organizational structure at Daimler, Lauk initiated a worldwide reorganization and the integration of the company's manufacturing operations. He encouraged individual units within CVD to look for collaborative opportunities that would enable the division to realize global scale economies. Lauk was proud of his achievements but concerns overshadowed his satisfaction. Although the CVD was profitable overall, its Power Train Unit continued to lose money. In addition, Lauk was concerned about Daimler's progress in building adequate distribution channels in the Asian region. Finally, Lauk considered the impact of the merger with Chrysler on CVD and the general uncertainty concerning how a more centralized organization would affect the CVD.
BRL Hardy: Globalizing an Australian Wine Company
HBS #300018 20p TN #300128
Australia/U.K., wine, 1992-1998
Focuses on two new product launch decisions facing Christopher Carson, managing director of BRL Hardy, Europe. Responsible for the European operations of a major Australian wine company, Carson has begun to globalize his strategy beyond selling the parent company's wines. After a difficult joint venture with a Chilean wine source, he is proposing to launch an Italian line of wines. His local team has also developed a new Australian brand that would compete directly with a parent company's global brand rollout. Focuses on global strategy choices being made through headquarter-subsidiary negotiations that define the roles of country managers and global product managers.
Go Global--or No? (HBR Case Study)
HBR Reprint R0106X 4p
N/A Only a few weeks ago, Greg McNally, the CEO of software start-up DataClear, had called an off-site in Montana to celebrate his company's success in racking up $5 million in sales from its first product, ClearCloud--a powerful data analysis package. But that was before his talented and successful head of
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sales, Susan Moskowski, gave him the news about VisiDat, a British start-up that was testing a data analysis package of its own that was only weeks away from launch. Because of that news, Greg had changed the agenda of the off-site, instead having Susan present the options for taking DataClear global. The meeting had taken place two weeks ago, at which point the consensus had been to establish a European presence and probably one in Japan. The only question seemed to be whether to do it from scratch or to form partnerships with local players. Should it instead expand into different domestic markets Four commentators offer their advice.
Distance Still Matters: The Hard Reality of Global Expansion
HBR Reprint R0108K 10p
N/A Companies routinely overestimate the attractiveness of foreign markets. Dazzled by the sheer size of untapped markets, they lose sight of the difficulties of pioneering new, often very different territories.. Most of these costs and risks result from the barriers created by distance. The CAGE framework of distance presented here considers four attributes: cultural distance; administrative or political distance; geographic distance; and economic distance. This framework can help to identify the ways in which potential markets may be distant from existing ones. The article explores how (and by how much) various types of distance can affect different types of industries and shows how dramatically an explicit consideration of distance can change a company's picture of its strategic options.
Chapter 3: Managing Social Responsibility and Ethics
Sustainable Development and Socially Responsible Investing: ABB in 2000
Several investment firms and mutual funds position themselves as providers or facilitators of opportunities for socially responsible investment. This case addresses the impact of these firms on publicly traded companies. Focuses on managers at ABB, a large multinational based in Switzerland that has tried to be a leader in integrating principles of sustainable development into its business strategies. ABB's managers now need to decide what sorts of relationships they would like to have with the firms in the socially responsible investment community, and the extent to which they ought to take the preferences of these firms into account in tailoring their business strategies.
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Tim Hertach at GL Consulting (A)
HBS #800153 12p TN #801029
New Jersey, consulting, 1,000 employees, 1999
Ten years into his career after graduating from business school, Tim Hertach discovers billing irregularities at his consulting firm. He must decide whether (and how) to challenge senior management or to stay quiet and protect his career.
Becton Dickinson: Ethics and Business Practices (A)
HBS #399055 27p
U.S., Asia, Latin American, Middle East, medical and diagnostic services, 19,000 employees, 1997
Becton Dickinson's Global One-Company Operations Group must decide on the company's global policy on gifts, gratuities, and business entertainment. A key issue is whether the policy should be established centrally and made uniform worldwide or whether it should be decided locally, depending on local circumstances and practices. The case contains numerous examples of troubling situations drawn from different regions of the world, as well as background information on growing anticorruption efforts worldwide.
The Shakedown (HBR Case Study)
HBR Reprint R0503X 5p
N/A Customer Strategy Solutions, a California-based developer of order fulfillment systems, is facing a shakedown. Six months after the firm's CEO, Pavlo Zhuk, set up a software development center in Kiev, local bureaucrats say the company hasn't filed all the tax schedules it should have. Moreover, Ukrainian tax officials claim that the company owes the government tax arrears. Zhuk is shocked; he and his colleagues have done everything by the book. In the process of getting the development center up and running, a state-owned telecommunications utility had made it difficult for Zhuk to get the phone lines his company needed. Senior telecom manager Vasyl Feodorovych Mylofienko had told Zhuk it would take three years to install the lines in his office--but for a certain price, Mylofienko had added, the lines could be functioning the following week. Even as the picture of rampant bribery and corruption in Ukraine becomes clear, Zhuk still doesn't want to pull out. And yet, he isn't sure he can keep compromising his principles for the sake of the greater good. Should Customer Strategy Solutions pay off the Ukrainian tax officials? Four commentators weigh in.
What's a Business For?
HBR Reprint R0212C 6p
N/A In the wake of the recent corporate scandals, it's time to reconsider the assumptions underlying American-style stock-market capitalism. We must also ask more fundamental questions: Whom and what is a business for? And are traditional
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ownership and governance structures suited to the knowledge economy? Now a company's assets are increasingly found in the employees who contribute their time and talents rather than in the stockholders who temporarily contribute their money. The language and measures of business must be reversed. In a knowledge economy, a good business is a community with a purpose, not a piece of property.
Chapter 4: Managing Organizational Culture and Change
The SAS Institute: A Different Approach to Incentives and People-Management Practices in the Software Industry
Stanford #HR6 17p
North Carolina; software; 5,000 employees; 1997
The SAS Institute is a large, growing software company headquartered in the Research Triangle in North Carolina. Founded more than 25 years ago, it has evolved a unique approach, given its industry, to developing and retaining talent including using no stock options or phantom stock and not paying its salespeople on commission. The CEO and Vice President of Human Resources must decide how well their current management practices will continue to serve them as the company gains greater visibility and faces an increasingly competitive labor market.
Focuses on Jamie Houghton's efforts to revitalize Corning from 1983-96, including the development of a very strong set of values and culture. The issue centers around Roger Ackerman's rise to president then chairman/CEO, and his drive to both change the business strategically/financially and develop a new culture to support this change. Teaching Purpose: Demonstrates importance of fit among senior team, culture, strategy, and organization, and how change in one requires change in others. Gets students to think through details of implementing culture change.
JetBlue Airways: Starting from Scratch
HBS #801354 20p TN #801386
New York, NY, airlines, 950 employees, 2000
JetBlue Airways shows how an entrepreneurial venture can use human resource management, specifically a values-centered approach to managing people, as a source of competitive advantage. The major challenge faced by Ann Rhoades is to grow this people-centered organization at a rapid rate, while retaining high standards for employee selection and a small company culture. Considers the role of human resource management, leadership, and values in a start-up venture, and addresses the
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tension between a strong organizational culture and rapid growth.
What Holds the Modern Company Together?
HBR Reprint 96605 16p
N/A The organizational world is awash with talk of corporate culture--and for good reason. Culture has become a powerful way to hold a company together against the recent tidal wave of pressures for disintegration, such as decentralization and downsizing. But what is culture? Perhaps more important, is there one right culture for every organization? And if the answer is no, how can a manager change an organization's culture? Addressing those three questions, Rob Goffee and Gareth Jones begin the article with the assertion that culture is community. Moreover, they contend, because business communities are no different from communities outside the commercial arena--such as families, schools, clubs, and villages--they can (and should) be viewed through the lens of sociology.
Leading Change: Why Transformation Efforts Fail
HBR Reprint 95204 8p
N/A In the past decade, the author has watched more than 100 companies try to remake themselves into better competitors. The lessons that can be learned will be relevant to more and more organizations as the business environment becomes increasingly competitive in the coming decade. One lesson is that change involves numerous phases that, together, usually take a long time. Skipping steps creates only an illusion of speed and never produces a satisfying result. A second lesson is that critical mistakes in any of the phases can have a devastating impact, slowing momentum and negating previous gains.
PART THREE Chapter 5: Managing the Planning Process
Blinds To Go: Invading the Sunshine State
Ivey School, (UW0) #901D04 21p
Canada, window coverings, small, 2000
Blinds To Go (BTG), a Montreal headquartered producer of made-to-order window coverings, had made the decision to enter the Florida market by opening eight retail stores. As a result of this decision, the senior vice president of operations for BTG was faced with the dilemma of deciding if and when an assembly plant should be built to support these and future Florida retail stores. The most recent plant, built in Lakewood, NJ, had experienced operational problems during its start-up, resulting in the eventual replacement of most
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of the supervisory staff and a significant portion of the plant employees. This led to additional start-up costs and customer service problems. Faced with this expansion into Florida, the senior vice president set about devising an operating plan that would achieve the goals of the Florida expansion without the growing pains of past efforts. As the stores were to be opened in six months, a plan would have to be finalized soon.
Maureen Frye at Quaker Steel and Alloy Corp.
HBS #496024 12p
Pennsylvania, metals, large, 1995
Maureen Frye, assistant product manager at Quaker Steel and Alloy Corp., is asked to implement an action plan for changing the call pattern of the salesforce. Currently the salesforce is spending too much time on small accounts. Earlier Frye attempted to change their call patterns without success. Now with the express call mandate of top management she has to present a plan that will work.
Vina San Pedro Babson College #BAB017 26p
Chile, wine, $81 million revenues, 1999
Vina San Pedro (VSP) is the third largest vineyard in Chile and has recently expanded its capacity. The new president is considering how fast to push into both foreign and domestic markets, where efforts should be focused, and how to balance capacity within the context of uncertain, volatile markets and the vagaries of foreign exchange. Meanwhile he has to position growth in the context of new return-on-capital-employed objectives. Teaching Purpose: To understand the complexity of balancing production, marketing, and uncertainty within the context of international trade.
Stop Making Plans; Start Making Decisions
HBR Reprint R0601F 10p
N/A Many executives have grown skeptical of strategic planning. A few forward-looking firms have thrown out their calendar-driven, business-unit-focused planning procedures and replaced them with continuous, issues-focused decision making. In doing so, they rely on several basic principles: They separate, but integrate, decision making and plan making. They focus on a few key themes. And they structure strategy reviews to produce real decisions. When companies change the timing and focus of strategic planning, they also change the nature of senior management's discussions about strategy--from "review and approve" to "debate and decide," in which top executives actively think through every major decision and its implications
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for the company's performance and value. Why Good Projects Fail Anyway
HBR Reprint R0309H 7p
N/A Big projects fail at an astonishing rate--more than half the time, by some estimates. There is a way to uncover unanticipated problems while the project is still in development. The key is to inject into the overall plan a series of miniprojects, or "rapid-results initiatives," that each have as their goal a miniature version of the overall goal. The World Bank has used rapid-results initiatives to great effect to keep a sweeping 16-year project on track and deliver visible results years ahead of schedule.
Chapter 6: Decision Making
Alaska Airlines and Flight 261 (A)
HBS #801113 16p
Seattle, WA, airline, 14,000 employees, 2000
Weeks after the crash of Alaska Airlines Flight 261, 64 mechanics claim that they have been "pressured, threatened, and intimidated" into taking shortcuts. After briefly describing Alaska Airlines' history and CEO John Kelly, the case details how the airline responded to the crash and the resulting investigations. Also describes labor relations between management and its largest unions. At the end of the case CEO Kelly prepares for a news conference to respond to the mechanics’ allegations. The case addresses crisis management, corporate diplomacy, labor relations, public relations, and transportation safety.
Rubbermaid, a consumer products company widely praised for its innovation, has instituted a company-wide experiment to stimulate innovation even further. The experiment consists of creating small cross-functional business teams within each division, with each team being responsible for the creation, management, and profitability of a particular product line. The staffing, reporting structure, and management of the business teams vary across divisions, and clear differences emerge in the performance of four highlighted teams. The case explores the possibility of using cross-functional teams within established firms to simulate entrepreneurial ventures and accelerate innovation.
Consumer products giant Procter & Gamble is faced with an urgent need to revitalize new product innovation, given its recent focus on incremental product improvements and its aggressive growth goals. As part of this effort, the company's top executives form a small,
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autonomous, cross-functional Corporate New Ventures team led by a young former brand manager. The team invents a systematic approach to gathering information and producing creative ideas for radically new product categories. Illustrates approaches to creativity and innovation in a large, successful, well-established firm; analyzes the feasibility of systematic methods for creative thinking; considers the role of the work environment in fostering creativity; and examines the possibility of entrepreneurial activity within a large, well-established firm.
Who Has the D? How Clear Decision Roles Enhance Organizational Performance
HBR Reprint R0601D 10p
N/A Decisions are the coin of the realm in business. But even in highly respected companies, decisions can get stuck inside the organization like loose change. As a result, the entire decision-making process can stall, usually at one of four bottlenecks: global vs. local, center vs. business unit, function vs. function, and inside vs. outside partners.? Bain consultants Paul Rogers and Marcia Blenko use an approach called RAPID (recommend, agree, perform, input, and decide) to help companies unclog their decision-making bottlenecks by explicitly defining roles and responsibilities.
What You Don't Know About Making Decisions
HBR Reprint R0108G 8p
N/A Most executives think of decision making as a singular event that occurs at a particular point in time. In reality, though, decision making is a process fraught with power plays, politics, personal nuances, and institutional history. Most often, participants use an advocacy process, possibly the least productive way to get things done. They view decision making as a contest, arguing passionately for their preferred solutions, presenting information selectively, withholding relevant conflicting data so they can make a convincing case, and standing firm against opposition. Much more powerful is an inquiry process, in which people consider a variety of options and work together to discover the best solution. Moving from advocacy to inquiry requires careful attention to three critical factors: fostering constructive, rather than personal, conflict; making sure everyone knows that their viewpoints are given serious consideration even if they are not ultimately accepted; and knowing
Describes the firm's strategic planning activities and focuses on the challenge of developing processes that enable the firm to improve the core business as well as processes that foster the creation of promising new business opportunities. Teaching Purpose: To teach students about how to design different types of strategy formulation to accomplish different objectives.
Edmunds.com (A)
HBS #701025 23p
Santa Monica, CA, Internet, 1997-2000
Edmund's began in 1966 as a publisher of new and used vehicle guides and grew into one of the leading third-party automotive Web sites of today. This case explores how Edmunds.com gained a competitive edge using strategic partnerships and alliances, as well as careful product positioning and strategy implementation.
Matching Dell HBS #799158 31p TN #700084
Global, personal computers, 1998
After years of success with its vaunted "Direct Model" for computer manufacturing, marketing, and distribution, Dell Computer Corp. faces efforts by competitors to match its strategy. This case describes the evolution of the personal computer industry, Dell's strategy, and efforts by Compaq, IBM, Hewlett-Packard, and Gateway 2000 to capture the benefits of Dell's approach. Students are called on to formulate strategic plans of action for Dell and its various rivals. Permits an especially detailed examination of imitation; illustrates how fit among activities and incompatibilities between competitive positions can pose particularly high barriers to imitation. Can also be employed to illustrate competitor analysis, the evolution of industry structure, and relative cost analysis.
Turning Great Strategy into Great Performance
HBR Reprint R0507E 9p
N/A Despite the enormous time and energy that goes into strategy development, many companies have little to show for their efforts. Indeed, research by the consultancy Marakon Associates suggests that companies on average deliver only 63% of the financial performance their strategies promise. In this article, Michael Mankins and Richard Steele of Marakon present the findings of this research. They draw on their experience with high-performing companies like Barclays, Cisco, Dow Chemical, 3M, and Roche to establish some basic
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rules for setting and delivering strategy: Keep it simple, make it concrete. Avoid long, drawn-out descriptions of lofty goals and instead stick to clear language describing what your company will and won't do. Debate assumptions, not forecasts. Following these rules strictly can help narrow the strategy-to-performance gap.
Blue Ocean Strategy
HBR Reprint R0410D 9p
N/A Despite a long-term decline in the circus industry, Cirque du Soleil profitably increased revenue twenty-two-fold over the last 10 years by reinventing the circus. Rather than competing within the confines of the existing industry or trying to steal customers from rivals, Cirque developed uncontested market space that made the competition irrelevant. Cirque created what the authors call a blue ocean--a previously unknown market space. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In red oceans--that is, in all the industries already existing--companies compete by grabbing for a greater share of limited demand. There are two ways to create blue oceans. One is to launch completely new industries, as eBay did with online auctions. But it's much more common for a blue ocean to be created from within a red ocean when a company expands the boundaries of an existing industry.
Investigates the entrepreneur's strategic initiatives to make a mass market for specialty coffee in the 1980s and 1990s. These initiatives included the development of premium products, rapid expansion of company-owned stores--each with attractive retail environments and responsive customer service--and, especially, the creation of a strong brand. Also devotes considerable attention to how Schultz built the Starbucks organization, examining the consistent emphasis that he and his colleagues placed on the company's relationship with its employees, how Schultz financed Starbucks' early expansion, the significance of vertical integration in ensuring quality control, and how--strategically and operationally--the company managed its phenomenal domestic and
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international growth after 1993. ClubTools, Inc. HBS
#801164 17p
Boston, Internet, 5 employees, 2000
Discusses the development of an Internet start-up by a recent business school graduate. Details the company's business plan, incubation, technology development, marketing strategy, and search for funding. Shows students how to translate a business idea into a cash flow forecast.
ZOOTS: The Cleaner Cleaner
HBS #801114 23p
United States, dry cleaning, 200 employees, 1997-2000
A successful entrepreneur (retailing) starts a new venture in dry cleaning. The case focuses on transferable models, skills, and knowledge from one venture to the next. Areas of emphasis are: managing growth, challenges of operations, financing, and competitive moves.
Darwin and the Demon: Innovating Within Established Enterprises
HBR Reprint R0407F 6p
N/A As commercial processes commoditize in a developed economy, they are outsourced or transferred offshore, leaving onshore companies with unrelenting, Darwinian pressure to come up with the next wave of innovation. But "innovation" is a broad term. The best way to choose is to consider the phases of a market's life span. In a market's earliest phase, a new technology attracts enthusiasts and visionaries. Once the life cycle advances to Main Street, however, the marketplace is no longer willing to yield the revenue or margin gains necessary to fund that type of innovation, so other forms, including process and experiential, yield better returns.
How Venture Capital Works
HBR Reprint 98611 9p
N/A In this article, Bob Zider, president of the Beta Group, a California-based firm that invests in commercializing new technologies, presents an analysis of present-day venture capitalists and shows why its practitioners have a lot more in common with investment bankers than you might think. Venture capitalists must earn a consistently superior return on investments in inherently risky businesses. The myth is that they do so by investing in good ideas and good plans. In reality, they invest in good industries--that is, industries that are more competitively forgiving than the market as a whole. And they structure their deals in a way that minimizes their risk and maximizes their returns.
In June 2000, Novartis reorganized its pharmaceutical business to form global business units in oncology, transplantation, ophthalmology, and mature products. The remaining products (primary care products) were managed as before within global functions (R&D, marketing, etc.) The new organization created a matrix structure and new roles for heads of business functions, CEOs of new business units, and country managers. Teaching Purpose: To explore the reasons for Novartis's reorganizing into the new matrix structure, the tensions and challenges the new structure creates, and the culture and accountability needed to make the new structure work.
Polycom, Inc.: Visualizing Culture
HBS #601073 16p
United States, telecommunications, $500 million revenues, 2000
Polycom is a rapidly growing maker of video conferencing and teleconferencing equipment. Management is attempting to use "natural work groups" as an organizing mechanism, and to build into the culture implicit rules that will cause desired behaviors to be self-policing. Teaching Purpose: To explore organizational forms that might robustly handle continued growth.
USA TODAY: Pursuing the Network Strategy (A)
HBS #402010 18p (B) case #402011
Virginia, newspaper, $700 million revenues, 3000 employees, 2000
Describes the evolution of USA TODAY Online, the electronic version of the newspaper, within the organizational structure of the newspaper. Describes the tensions and issues that develop and the pressure from the Online division to be spun off. At the same time, CEO Tom Curley sees a greater strategic need for integration. Poses the question of what degree/type of strategic integration is required, what degree of organizational integration this implies, and how it can be achieved. Teaching Purpose: Exposes students to difficult issues surrounding integration when two organizational units are so different and explores the ambidextrous organization.
Designing High-Performance Jobs
HBR Reprint R0507D 9p
N/A Tales of great strategies derailed by poor execution are all too common. That's because some organizations are designed to fail. For a company to achieve its potential, each employee's supply of
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organizational resources should equal the demand, and the same balance must apply to every business unit and to the company as a whole. The questions correspond to what the author calls the four basic spans of a job--control, accountability, influence, and support. Each span can be adjusted so that it is narrow or wide or somewhere in between. If you get the settings right, you can design a job in which a talented individual can successfully execute on your company's strategy.
The Ambidextrous Organization
HBR Reprint R0404D 8p
N/A Corporate executives must constantly look backward, attending to the products and processes of the past, while also gazing forward, preparing for the innovations that will define the future. This mental balancing act is one of the toughest of all managerial challenges, and it's no surprise that few companies do it well. These organizations separate their new, exploratory units from their traditional, exploitative ones, allowing them to have different processes, structures, and cultures; at the same time, they maintain tight links across units at the senior executive level. Building an ambidextrous organization is not easy, but the structure itself, combining organizational separation with senior team integration, is not difficult to understand.
Chapter 10: Human Resource Management
Wolfgang Keller at Konigsbrau-Hellas A.E. (A)
HBS #498045 18p TN #400069
Europe, brewery Raises issues concerning performance evaluation, performance appraisal, managing ineffective performance, and conflicts in management style.
The Firmwide 360-degree Performance Evaluation Process at Morgan Stanley
HBS #498053 16p TN #400078
New York, NY, investment banking, 2,000 employees, 1993-1995
Describes Morgan Stanley's firmwide, 360-degree performance evaluation process. Evaluation forms are included as exhibits.
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The SAS Institute: A Different Approach to Incentives and People Management Practices in the Software Industry
Stanford #HR6 17p
North Carolina, software, $750 million revenues, 1997
The SAS Institute is a large, growing software company headquartered in the Research Triangle in North Carolina. Founded more than 25 years ago, it has evolved a unique approach, given its industry, to developing and retaining talent including using no stock options or phantom stock and not paying its salespeople on commission. The CEO and Vice President of Human Resources must decide how well their current management practices will continue to serve them as the company gains greater visibility and faces an increasingly competitive labor market.
"A Players" or "A Positions"? The Strategic Logic of Workforce Management
HBR Reprint R0512G 9p
N/A Companies simply can't afford to have "A players" in all positions. Rather, businesses need to adopt a portfolio approach to workforce management, systematically identifying their strategically important A positions, supporting B positions and surplus C positions, then focusing disproportionate resources on making sure A players hold A positions. This is not as obvious as it may seem, because the three types of positions do not reflect corporate hierarchy, pay scales, or the level of difficulty in filling them. A positions are those that directly further company strategy and, less obviously, exhibit wide variation in the quality of the work done by the people who occupy them. Why variability? Because raising the average performance of individuals in these critical roles will pay huge dividends in corporate value.
Hiring Without Firing
HBR Reprint 99403 15p
N/A Hiring executives has always been a daunting task--and today's economy makes it tougher than ever. Fernandez-Araoz presents ten common hiring traps and many real-world examples of how those traps have scuttled business plans in a variety of industries worldwide. Hiring well is a strategy--perhaps an organization's most important one, the author says. To sidestep the hiring traps, he suggests ways to systematically assess the company's needs and to determine how those needs mesh with the open job description--before candidates walk through the door.
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Chapter 11: Managing Employee Diversity
Millennium Media, Inc. and John Voorenberg
HBS #400032 10p
New York, media, 1,200 employees
Millenium Media's CEO reviews the company diversity report and considers the challenges of maintaining a diverse workforce in light of the news that three individuals, two of whom are people of color, are leaving for opportunities with a competitor. Helps students understand the link between supervisor behavior, diversity, and employee retention.
Yvette Hyater-Adams and Terry Larsen at CoreState Financial Corp.
Yvette Hyater-Adams, senior VP of CoreStates Bank, and CEO Terry Larsen reflect on their five-year mentor-protege relationship. They describe how building a relationship across both race and gender was challenging and ultimately highly rewarding. Their relationship develops in the context of a major culture change that Hyater-Adams and Larsen were leading the organization through. This case discusses how their relationship impacted the organization and the change process. Allows students to develop a deep appreciation for the initiation and development of mentoring relationships. Also explores the dynamics of cross-race and cross-gender work relationships.
Lotus Development Corp.: Spousal Equivalents (A)
HBS #394197 18p TN #396020
Cambridge, MA, computers, 2,500 employees, 1989
A group of Lotus employees propose extending all health care and other benefits to the spousal equivalents of lesbian and gay employees. The vice president of human resources considers the proposal during a reorganization and period of financial uncertainty. Provides an opportunity to discuss the limits and competitive implications of a business's appropriate role in responding to diverse employee needs.
Off-Ramps and On-Ramps: Keeping Talented Women on the Road to Success
HBR Reprint R0503B 10p
N/A Most professional women step off the career fast track at some point. But woe to the woman who intends for that exit to be temporary. The on-ramps for professional women to get back on track are few and far between, the authors confirm. Their new survey research reveals for the first time the extent of the problem--what percentage of highly qualified women leave work and for how long, what obstacles they face coming back, and what price they pay for their time-outs. And what are the implications for corporate America? An HBR Special Report, available online at
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www.womenscareersreport.hbr.org, presents detailed findings of the survey.
Diversity As Strategy
HBR Reprint R0409G 10p
N/A By the time Lou Gerstner took the helm in 1993, IBM had a long history of progressive management when it came to civil rights and equal opportunity employment. But Gerstner felt IBM wasn't taking full advantage of a diverse market for talent, nor was it maximizing the potential of its diverse customer and employee base. So in 1995, he launched a diversity task force initiative to uncover and understand differences among people within the organization and find ways to appeal to an even broader set of employees and customers. The answers to these questions became the basis for IBM's diversity strategy. All four elements have helped IBM make diversity a key corporate strategy tied to real growth.
PART FIVE Chapter 12: Motivation
Meg Whitman at eBay, Inc. (A)
HBS #401024 32p
San Jose, CA, Internet, 1999
Meg Whitman takes over as CEO of eBay from the founder. She must figure out how to lead the company through a stage of phenomenal growth without compromising eBay's unique external customer culture and internal culture--its key success factors.
Jeanne Lewis at Staples, Inc. (A) (Abridged)
HBS #400065 14p
Boston, office supplies, 30,000 employees, 1997
Jeanne Lewis, after six years with Staples, Inc., is promoted to senior vice president of marketing. She is to work for fifteen months alongside her predecessor, a legacy in the organization, "learning the ropes" before he moves on. This case is set nine months after she begins working with the marketing department. At this time, Staples has just emerged from a period of prolonged litigation around an FTC antitrust suit challenging Staples' attempted merger with Office Depot. Post-merger, Lewis must determine how the marketing department can most effectively and efficiently help the company maintain its competitive edge in an increasingly competitive and complex market. Looks at the challenges a middle manager faces "taking charge" and managing change in a revitalization situation in which a more evolutionary approach is appropriate.
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The Chattanooga Ice Cream Division
HBS #498001 11p
United States, food products, 750 employees, 1996
Senior functional officers (marketing, manufacturing, research & development, control, and human resources) clash over alternative ideas for turning around a business in decline. The general manager is faced not only with choosing between competing ideas, but also managing conflict and determining whether his consensus-oriented style is appropriate to the needs of the situation.
How to Motivate Your Problem People
HBR Reprint R0301D 8p
N/A Managers who motivate with incentives and the power of their vision and passion succeed only in energizing employees who want to be motivated. So how do you motivate intractable employees--the ones who never do what you want and also take up all your time? According to Nigel Nicholson, you can't: Individuals must motivate themselves. Instead of pushing solutions on problem employees, the manager should pull solutions out of them by creating circumstances in which the employees can channel their motivation toward achievable goals. That means addressing any obstacles--possibly even the manager's own demotivating style--that might be hindering the employees.
One More Time: How Do You Motivate Employees?
HBR Reprint R0301F 9p
N/A It's a manager's perennial question: "How do I get an employee to do what I want?" The psychology of motivation is very complex, but the surest way of getting someone to do something is to deliver a kick in the pants--put bluntly, the KITA. But although a KITA might produce some change in behavior, it doesn't motivate. Frederick Herzberg, whose work influenced a generation of scholars and managers, likens motivation to an internal generator. An employee with an internal generator, he argues, needs no KITA. Achievement, recognition for achievement, the work itself, responsibility, and growth or advancement motivate people
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Chapter 13: Leadership
Meg Whitman at eBay, Inc. (A)
HBS #401024 32p
San Jose, CA, Internet, 1999
See Chapter 12 for abstract.
Jeanne Lewis at Staples, Inc. (A) (Abridged)
HBS #400065 14p
Boston, office supplies, 30,000 employees, 1997
See Chapter 12 for abstract.
The Chattanooga Ice Cream Division
HBS #498001 11p
United States, food products, 750 employees, 1996
See Chapter 12 for abstract.
Seven Transformations of Leadership
HBR Reprint R0504D 10p
N/A Most developmental psychologists agree that what differentiates one leader from another is not so much philosophy of leadership, personality, or style of management. Rather, it's internal "action logic"--how a leader interprets the surroundings and reacts when his or her power or safety is challenged. The authors draw on 25 years of consulting experience and collaboration with psychologist Susanne Cook-Greuter to present a typology of leadership based on the way managers personally make sense of the world around them. David Rooke and William Torbert classify leaders into seven distinct action-logic categories: Opportunists, Diplomats, Experts, Achievers, Individualists, Strategists, and Alchemists--the first three associated with below-average performance, the latter four with medium to high performance.
What Makes a Leader?
HBR Reprint R0401H 10p
N/A When asked to define the ideal leader, many would emphasize traits such as intelligence, toughness, determination, and vision--the qualities traditionally associated with leadership. Often left off the list are softer, more personal qualities--but they are also essential. Although a certain degree of analytical and technical skill is a minimum requirement for success, studies indicate that emotional intelligence may be the key attribute that distinguishes outstanding performers from those who are merely adequate. The chief components of emotional intelligence--self-awareness, self-regulation, motivation, empathy, and social skill--can sound unbusinesslike, but
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Goleman, cochair of the Consortium for Research on Emotional Intelligence in Organizations, based at Rutgers University, found direct ties between emotional intelligence and measurable business results.
Chapter 14: Managing Teams
The Chattanooga Ice Cream Division
HBS #498001 11p
United States, food products, 750 employees, 1996
Senior functional officers (marketing, manufacturing, research & development, control, and human resources) clash over alternative ideas for turning around a business in decline. The general manager is faced not only with choosing between competing ideas, but also managing conflict and determining whether his consensus-oriented style is appropriate to the needs of the situation.
Rubbermaid, a consumer products company widely praised for its innovation, has instituted a company-wide experiment to stimulate innovation even further. The experiment consists of creating small cross-functional business teams within each division, with each team being responsible for the creation, management, and profitability of a particular product line. The staffing, reporting structure, and management of the business teams vary across divisions, and clear differences emerge in the performance of four highlighted teams. The case explores the possibility of using cross-functional teams within established firms to simulate entrepreneurial ventures and accelerate innovation.
Rudi Gassner and the Executive Committee of BMG International (A)
HBS #494055 21p TN #494122
Global, entertainment, 1993
Explores the roles of CEO Rudi Gassner and the 9-person executive committee in leading BMG International. BMG International is the international music subsidiary of Bertelsmann, a German company that is the second-largest media conglomerate in the world. Describes a 1993 decision that Gassner and the executive committee must make about whether or not to change managers' business plans and bonus targets as a result of a newly negotiate reduced manufacturing cost. Allows for discussion of a number of timely and important issues: 1) the complexities of managing and growing a large global business; 2) the tensions between centralized corporate control and decentralized local management in a global
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organization; 3) the impact of leadership style on corporate culture and performance; 4) the challenges of leading a senior mangement team; and 5) the final decision by CEO Rudi Gassner and the subsequent actions taken by the members of the executive committee.
The Discipline of Teams
HBR Reprint R0507P 9p
N/A Groups don't become teams just because that is what someone calls them. In this groundbreaking March 1993 article, authors Jon Katzenbach and Douglas Smith answer these questions and outline the discipline that defines a real team. The essence of a team is shared commitment. Without it, groups perform as individuals; with it, they become a powerful unit of collective performance. The best teams invest a tremendous amount of time shaping a purpose that they can own. The fundamental distinction between teams and other forms of working groups turns on performance. The authors identify three kinds of teams: those that recommend things--task forces or project groups; those that make or do things--manufacturing, operations, or marketing groups; and those that run things--groups that oversee some significant functional activity.
Can Absence Make a Team Grow Stronger?
HBR Reprint R0405J 8p
N/A Some projects have such diverse requirements that they need a variety of specialists to work on them. But often the best-qualified specialists are scattered around the globe, perhaps at several companies. The scores of successful virtual teams the authors examined didn't have many of the psychological and practical obstacles that plagued their more traditional, face-to-face counterparts. Team members felt freer to contribute--especially outside their established areas of expertise. Reaping those advantages, though, demanded shrewd management of a virtual team's work processes and social dynamics. Differences were most effectively hashed out in teleconferences, which team leaders also used to foster group identity and solidarity.
Chapter 15: Managing Communication
Jack Welch: General Electric’s Revolutionary
HBS #394065 22p TN #395232
United States, conglomerate
Describes the work of Jack Welch as CEO of General Electric from 1981 to 1992, focusing particularly on his transformation of the company's portfolio through extensive dispositions and
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acquisitions and the company's culture through a mandated process called "work out."
Jack Thomas HBS #494062 13p
New York, publishing, 1990
This redisguised version of an earlier case, Tom Levick, provides an updated setting but does not change the teaching objectives. Chronicles the first six weeks of experience on the job for a recent business school graduate. Emphasis is on managing upwards--particularly with respect to errors discovered by the protaganist for which his boss was responsible.
Jensen Shoes: Lyndon Twitchell"s Story
HBS #395121 8p TN #396017
United States, shoes, $65 million revenues, 4500 employees, 1994
Details the experiences of Jane Kravitz (Caucasian female), strategic product manager, and Lyndon Twitchell (African American male), a member of her staff at Jensen Shoes, a successful producer and marketer of casual, athletic, and children's footwear. They are assigned to new positions and to each other at the start of the story. Presents their very different points of view on their first couple of months working together. Teaching Purpose: Raises how stereotypes and self-fulfilling prophesies influence performance feedback. Can be taught in a variety of ways: with all students receiving both cases; half receiving one and half receiving the other; or a third of the class receiving both, one third receiving one, and one third receiving the other (as is appropriate). Should be used with Jensen Shoes: Jane Kravitz's Story.
Change the Way You Persuade
HBR Reprint R0205D 9p
N/A You call a meeting to try to convince your boss that your company needs to make an important move. Your argument is impassioned, your logic unassailable, your data bulletproof. Two weeks later, though, you learn that your brilliant proposal has been tabled. What went wrong? It's likely the proposal wasn't appropriately geared toward your boss's decision-making style, say consultants Gary Williams and Robert Miller. Over the course of several years' research, the authors have found that executives have a default style of decision making developed early in their careers. In this article, the authors describe the various subtleties of the five decision-making styles and how best to persuade executives from each group.
Harnessing the Science of Persuasion
HBR Reprint R0109D 8p
N/A If leadership, at its most basic, consists of getting things done through others, then persuasion is one of the leader's essential tools. Over the past several decades, though, experimental psychologists have
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learned which methods reliably lead people to concede, comply, or change. Their research shows that persuasion is governed by several principles that can be taught and applied. The first principle is that people are more likely to follow someone who is similar to them than someone who is not. Wise managers, then, enlist peers to help make their cases. Second, people are more willing to cooperate with those who are not only like them but who like them, as well. So it's worth the time to uncover real similarities and offer genuine praise.
PART SIX Chapter 16: Management Control
The Balanced Scorecard: Measures That Drive Performance
HBR Reprint R0507Q 8p
N/A Executives know that a company's measurement systems strongly affect employee behavior. But the traditional financial performance measures that worked for the industrial era are out of sync with the skills organizations are trying to master. In this classic article from January 1992, authors Robert Kaplan and David Norton propose an innovative solution. During a year-long research project with 12 companies at the leading edge of performance management, the authors developed a "Balanced Scorecard," a new performance measurement system that gives top managers a fast but comprehensive view of their business. The Balanced Scorecard includes financial measures that tell the results of actions already taken. And it complements those financial measures with three sets of operational measures related to customer satisfaction, internal processes, and the organization's ability to learn and improve--the activities that drive future financial performance.
Time-Driven Activity-Based Costing
HBR Reprint R0411J 8p
N/A In the classroom, activity-based costing (ABC) looks like a great way to manage a company's limited resources. But executives who have tried to implement ABC in their organizations on any significant scale have often abandoned the attempt in the face of rising costs and employee irritation. They should try again, because a new approach sidesteps the difficulties associated with large-scale ABC implementation. In the revised model, managers estimate the resource demands imposed by each transaction, product, or customer, rather
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than rely on time-consuming and costly employee surveys. This tool kit uses concrete examples to demonstrate how managers can obtain meaningful cost and profitability information quickly and inexpensively. Rather than endlessly updating and maintaining ABC data, they can now spend their time addressing the deficiencies the model reveals: inefficient processes, unprofitable products and customers, and excess capacity.
Chapter 17: Operations Management
Eli Lilly and Co.: The Flexible Facility Decision--1993
In 1993, Eli Lilly is preparing to build manufacturing capacity for three new pharmaceutical products that it expects to launch in 1996. Management wrestles with a decision of whether to add specialized manufacturing capacity or flexible capacity. This question touches off a broad debate within the company about which strategy to follow for future facilities decisions. This case presents two alternatives (flexible and specialized plants) and describes the benefits and costs associated with each. Teaching Purpose: Requires students to analyze the tradeoffs between the alternatives and consider if and how each would help Lilly accomplish its strategic goals. Students should consider the net present value of the alternative investments, as well as explore the value of flexibility in manufacturing and capital investment decisions.
Jack Welch and the Corporate Executive Council of GE are faced with a decision about whether and how to implement a six sigma quality improvement effort in the context of many other initiatives already undertaken at GE in recent years. Teaching Purpose: To illustrate the complexity of managing change and the momentum that related and integrated initiatives can provide.
EG&G Rotron Division
HBS #695037 17p TN #697100
New York, motors and electronics, $20 million revenues, 200 employees, 1995
Rotron has recently entered the commercial motor market, after many years of servicing government military contracts. Faced with fierce commercial competition, Rotron has attacked its costs, and reduced its delivery times and its plants. A new crisis, however, is causing it to rethink its just-in-time production system and the plant manager must decide whether to re-introduce inventory for
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key production. Teaching Purpose: Addresses issues related to just-in-time production and strategic flexibility.
Deep Change: How Operational Innovation Can Transform Your Company
HBR Reprint R0404E 9p
N/A Breakthrough innovations--not just steady improvements--in operations can destroy competitors and shake up entire industries. Just look at Dell, Toyota, and Wal-Mart. But fewer than 10% of large companies have made serious attempts to achieve operational innovation. This article offers practical advice on how to develop operational innovations, such as looking for role models outside your industry to emulate and identifying--and then defying--constraining assumptions about how work should be done. The author also discusses the best way to implement operational innovations.
Decoding the DNA of the Toyota Production System
HBR Reprint 99509 11p
N/A The Toyota Production System is a paradox. On the one hand, every activity, connection, and production flow in a Toyota factory is rigidly scripted. Yet at the same time, Toyota's operations are enormously flexible and responsive to customer demand. That's because the company's operations can be seen as a continuous series of controlled experiments. Whenever Toyota defines a specification, it is establishing a hypothesis that is then tested through action. Making the implicit explicit, the authors lay out four principles that show how Toyota sets up all its operations as experiments and teaches the scientific method to its workers.
Chapter 18: Managing Information Systems
Measurement and Management at CitySoft
HBS #100056 21p TN #101073
Cambridge, MA; software; $1 million revenues; 25 employees; 1999-2000
CitySoft is a very small software developer that is grappling with issues of cost measurement and management. Students must decide what reports should be generated and how to use these reports. Teaching Purpose: Introductory case for a course in cost and performance measurement.
PricewaterhouseCoopers: Building a Global Network
University of Hong Kong #HKU095 17p TN #HKU096
Global, accounting, 2000
Price Waterhouse and Coopers & Lybrand merged in July 1998, creating one of the world's largest full-service professional organizations. This case provides a study of how two major organizations are putting together a global knowledge base that would facilitate communication and coordination within the PricewaterhouseCoopers (PwC) practice. Eventually, this knowledge base would
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be made available to PwC clients. Discusses the changes, issues, and challenges at PwC in building its Intranet, called KnowledgeCurve, a knowledge management system that incorporates all the assets (knowledge, people, skills) of the company to be utilized by the firm. In order for the organization to be successful, it is crucial for PwC to encourage the users to fully utilize the available resources and to contribute information to the KnowledgeCurve. At the time this case was written, PwC is in its initial stages of setting up its Global Knowledge Curve, which would ultimately serve the entire practice. The limitations in using the Global Knowledge Curve led to the creation of Knowledge Curve at each office level, which incorporates the knowledge base and information important to the local level.
PSA: The World's Port of Call
HBS #802003 34p
Singapore, 1980-2001
Details the evolution of an e-business strategy and capabilities over a 16-year period. What began in 1984 as an effort to automate the port of Singapore to achieve productivity savings, by 2000 had evolved into a global e-business called Portnet.com. Closes as senior managers contemplate the progress they have made and the challenges still ahead.
Competing on Analytics
HBR Reprint R0601H 11p
We all know the power of the killer app. But a new breed of organization has upped the stakes: Amazon, Harrah's, Capital One, and the Boston Red Sox have all dominated their fields by deploying industrial-strength analytics across a wide variety of activities. At a time when firms in many industries offer similar products and use comparable technologies, business processes are among the few remaining points of differentiation--and analytics competitors wring every last drop of value from those processes. In companies that compete on analytics, senior executives make it clear--from the top down--that analytics is central to strategy. Such organizations launch multiple initiatives involving complex data and statistical analysis, and quantitative activity is managed at the enterprise (not departmental) level.
Diamonds in the Data Mine
HBR Reprint R0305H 5p
N/A Harrah's Entertainment may not offer the most dazzling casinos in the business, but it is the most profitable gaming company in the United States. In this article, Harrah's Entertainment CEO and
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former Harvard Business School Professor Gary Loveman explains how his company has trumped its competitors by mining customer data, running experiments using customer information, and using the findings to develop and implement marketing strategies that keep customers coming back for more. This deep data mining has succeeded because Harrah's has simultaneously maintained its focus on satisfying its customers. Loveman outlines the specific strategies and employee-performance measures that Harrah's uses to nurture customer loyalty across its 26 casinos.
