A business world characterized by volatility, uncertainty, complexity, and ambiguity (VUCA) presents many leadership and governance challenges to businesses large and small. Smaller family firms, in particular, need to demonstrate resilience both in navigating changes that arise from VUCA conditions and in staying firm on the core purpose with which their enterprises were founded.<br><br>Cases A and B present the approach of a family firm based in Toronto, Canada, that manufactures and markets industrial vacuum systems. The cases provide an opportunity for instructors to convey the trials and tribulations faced by the founder and his successor in building a purpose-driven organization and in staying on the committed path of responsible leadership and governance.
Targeted interventions serve as a pivotal tool in business strategy, streamlining decisions for enhanced efficiency and effectiveness. This note delves into two central facets of such interventions: first, the design of potent decision guidelines, or targeting policies, through assessing individual reactions via A/B testing; and second, the strategic use of A/B tests to predict policy outcomes prior to their full-scale implementation. Complementing these insights, the note presents real-world data illustrations and essential coding guidance, furnishing readers with the hands-on skills needed to adeptly create and evaluate targeting policies.
A business world characterized by volatility, uncertainty, complexity, and ambiguity (VUCA) presents many leadership and governance challenges to businesses large and small. Smaller family firms, in particular, need to demonstrate resilience both in navigating changes that arise from VUCA conditions and in staying firm on the core purpose with which their enterprises were founded.<br><br>Cases A and B present the approach of a family firm based in Toronto, Canada, that manufactures and markets industrial vacuum systems. The cases provide an opportunity for instructors to convey the trials and tribulations faced by the founder and his successor in building a purpose-driven organization and in staying on the committed path of responsible leadership and governance.
Metaza SA (Metaza) was a family business created by two brothers who later invited their younger siblings to join the firm. Metaza operated in the steel sector, a capital-intensive business with fierce competition. The industry had experienced several mergers and acquisitions led by international players. To remain competitive, Metaza had changed its strategy, moving away from being a steel dealer and toward being a value-added producer. However, these changes generated debate within the family business, which operated with a low level of institutionalization. Consequently, the brothers hired a family business governance consultant for assistance. Metaza’s chair and chief executive officer needed to learn how to implement these strategic changes so that he could pass the torch of a healthier organization.
Aglaia Kong, the founder and chief executive officer of Guangdong LeapFive Technology Co. Ltd., a Chinese fabless chip design start-up, is facing a broken supply chain, with issues running from electronic design automation and core internet protocol through to fabrication, packaging, and testing in bringing up her Internet of things chip sets for industrial applications. Using fifth-generation open-source reduced instruction set computing instruction set architecture, she must assess a supply chain buffeted by severe bullwhip shortages and political headwinds, analyze her company’s strategy, and plot a course to assure it will be among the 2 per cent of Chinese chip start-ups that do not fail.
In 2020, Neha Mathur and Debi Kar co-founded the start-up Wishyogi India Pvt. Limited in Bangalore, India, and launched an online HR platform called Personifwy. Driven by artificial intelligence (AI), Personifwy analyzes employee engagement experiences and integrates data with the client’s own systems, thus serving as an HR analytics platform. During their interactions with clients, Mathur and Kar discovered a gap in the process of recruiting prospective employees. Many candidates were engaging in a phenomenon referred to as “ghosting,” which caused the talent acquisition teams of client firms to constantly restart the process, wasting time and resources. Mathur and Kar wanted to reveal the reason why candidates were dropping out of the recruitment process (or “ghosting” the employer) after receiving an offer letter and find a way to stop the practice. Potential solutions included having the client call these candidates directly or hiring consultants to establish a contact. Could AI technology help to resolve the issue? Could Mathur and Kar design an innovative solution to increase the ratio of job offer to confirmed employee for Personifwy clients? Should the company consider using employees advocates to help resolve the ghosting issue?
Aglaia Kong, the founder and chief executive officer of Guangdong LeapFive Technology Co. Ltd., a Chinese fabless chip design start-up, is facing a broken supply chain, with issues running from electronic design automation and core internet protocol through to fabrication, packaging, and testing in bringing up her Internet of things chip sets for industrial applications. Using fifth-generation open-source reduced instruction set computing instruction set architecture, she must assess a supply chain buffeted by severe bullwhip shortages and political headwinds, analyze her company's strategy, and plot a course to assure it will be among the 2 per cent of Chinese chip start-ups that do not fail.
A business world characterized by volatility, uncertainty, complexity, and ambiguity (VUCA) presents many leadership and governance challenges to businesses large and small. Smaller family firms, in particular, need to demonstrate resilience both in navigating changes that arise from VUCA conditions and in staying firm on the core purpose with which their enterprises were founded.Cases A and B present the approach of a family firm based in Toronto, Canada, that manufactures and markets industrial vacuum systems. The cases provide an opportunity for instructors to convey the trials and tribulations faced by the founder and his successor in building a purpose-driven organization and in staying on the committed path of responsible leadership and governance.
Metaza SA (Metaza) was a family business created by two brothers who later invited their younger siblings to join the firm. Metaza operated in the steel sector, a capital-intensive business with fierce competition. The industry had experienced several mergers and acquisitions led by international players. To remain competitive, Metaza had changed its strategy, moving away from being a steel dealer and toward being a value-added producer. However, these changes generated debate within the family business, which operated with a low level of institutionalization. Consequently, the brothers hired a family business governance consultant for assistance. Metaza's chair and chief executive officer needed to learn how to implement these strategic changes so that he could pass the torch of a healthier organization.
In 2020, Neha Mathur and Debi Kar co-founded the start-up Wishyogi India Pvt. Limited in Bangalore, India, and launched an online HR platform called Personifwy. Driven by artificial intelligence (AI), Personifwy analyzes employee engagement experiences and integrates data with the client's own systems, thus serving as an HR analytics platform. During their interactions with clients, Mathur and Kar discovered a gap in the process of recruiting prospective employees. Many candidates were engaging in a phenomenon referred to as "ghosting," which caused the talent acquisition teams of client firms to constantly restart the process, wasting time and resources. Mathur and Kar wanted to reveal the reason why candidates were dropping out of the recruitment process (or "ghosting" the employer) after receiving an offer letter and find a way to stop the practice. Potential solutions included having the client call these candidates directly or hiring consultants to establish a contact. Could AI technology help to resolve the issue? Could Mathur and Kar design an innovative solution to increase the ratio of job offer to confirmed employee for Personifwy clients? Should the company consider using employees advocates to help resolve the ghosting issue?
The case describes Ball's multi decade history of using Economic Value Added to drive decision making and workforce compensation. In 2016, the company acquired Rexam PLC and became the world's leading metal beverage container company. Consumer demand for varied aluminum can sizes led Ball to evaluate long term cost savings and efficiencies. In 2017, the company had to determine if it should open a new factory or upgrade two newly acquired factories. Opening the new factory required closing the other two. Ball used economic value added analysis to inform its decision making about this dilemma in this case.
Ball used Economic Value Added analysis to determine if it should open a new metal can manufacturing facility, which mandated closing two recently acquired factories, or recapitalize and update the two legacy factories.
Ball used Economic Value Added analysis to determine if it should open a new metal can manufacturing facility, which mandated closing two recently acquired factories, or recapitalize and update the two legacy factories.
In October 2019, the McDonald's Corporation board of directors, chaired by Enrique Hernandez, Jr., gathered to learn the results of their outside counsel's investigation into the conduct of the CEO. On the surface, the iconic fast-food chain was thriving as growing profits translated into share price gains. But unbeknownst to the public, a drama was unfolding that threatened the company's success and brand value. Hernandez and other directors listened intently as counsel explained their findings that the CEO had engaged in an inappropriate consensual relationship with an employee, in violation of the company's code of conduct. As directors grappled with the situation, they faced a litany of difficult questions. What action should they take with a CEO some were calling McDonald's "savior," credited with revitalizing the business and doubling its share price in under five years? Should they sanction him or possibly even remove him from office? And, if they did remove him, should he receive his potentially substantial severance package? How might shareholders, employees, and customers react-and to what extent should the directors consider stakeholder reactions in their deliberations?
In 2019, Daniel Pinto, President and COO of JPMorgan Chase, has to make a recommendation to the bank's Chairman and CEO, Jamie Dimon, about where to physically locate the bank's European trading operations after Brexit takes effect in 2020. The decision-making process considered a range of European locations, including Dublin, Amsterdam, Frankfurt, and Paris, and ultimately Pinto is left with a choice between Frankfurt and Paris. The case describes the decision-making process and gives an overview of JPMorgan's history in France and the French government's efforts to make the country more economically competitive to lure banks moving from London in the wake of Brexit.
In March 2023, Garry Cooper, cofounder and CEO of Chicago-based Rheaply, needed to demonstrate that Rheaply's expanded vision could translate into building cash flows and metrics needed to raise a Series B and turn the business into a model for financial and environmental sustainability. The eight-year-old company had originally been founded as an asset exchange platform for surplus materials at university science laboratories. Over time, the company evolved well beyond its initial market and expanded into a circular economy marketplace where cities, enterprises, and academic institutions exchanged everything from lab equipment to furniture to building materials. Cooper needed to determine whether the strategic shift to sustainability was working, and what, if anything, needed to change.