The chief financial officer (CFO) of Workbrain Corporation (Workbrain) must prepare a memo for the upcoming board of directors meeting. Workbrain, a venture-backed company, has grown substantially since its founding in November 1999. Now the CFO must communicate to the board whether it is time to consider an initial public offering (IPO) and, if so, in which exchange market the stock should be offered. The company must also consider what financing alternatives are available (including maintaining the current venture financing arrangement) and whether the company needs to raise money at all. The CFO is thinking about the memo, knowing that his words will have considerable impact on the company.

This case, presented in an interesting cartoon format, describes the first week after Antonio Scarsi (disguised), an expatriate executive, takes on the role of CEO in a poorly performing and demoralized domestic Chinese company. Although Antonio had extensive China experience, including considerable language capabilities, he knew little about this company, in which he was the only non-Chinese employee, and had never before worked outside of the support network of a major multinational corporation. He aimed to turn around the company in six months. His challenge was how to learn about the firm as quickly and effectively as possible and signal his intentions to revitalize it to the employees. This case might be used in conjunction with the case titled "Michael Faye Goes To China" (IMD322). Together the two cases focus on the theme "Learning about Leading in China", and encourage participants to consider the very different learning styles and common leadership traits of two expatriate executives facing compelling managerial challenges in growing their Chinese business. The cases stimulate participants to reflect on: 1) what their own leadership and learning styles are like, and their implications; 2) what they could do to become more effective and efficient leaders and learners in any new assignment; and 3) how to learn from one another during class discussion.

John Dean and Danny Lui began raising their first fund as StartUp Capital Ventures (SCV), a small venture capital firm, in 2005. Along with the four other "Managing Members" of the firm, they intended to focus investments on early stage software companies with capital-efficient business models. SCV looked for organizations with initial pre-money valuations of less than $5 million. The firm's philosophy was to target companies that already had a product or service generating revenue and that could show a reasonable likelihood of reaching near-term profitability with SCV's investment. During the fundraising process, Charlie Eubanks, an "anchor investor" for the fledgling firm, pressured the founders to devote 30% of SCV's capital to investments in China. The country was a compelling place to invest in many ways. China's GDP was growing at 10% per year, primarily driven by annual private sector growth of 20%. Tax burdens were light--there was no capital gains tax. In addition, seven times more engineering students graduated from colleges in China every year than in the United States. Yet, Dean and Lui (who was originally from Hong Kong) were also cognizant of significant drawbacks to investing in the region. Examines some of those challenges as they related to two questions the colleagues tried to answer: whether to enter that market at all; and whether to invest in Zero2IPO, a Beijing-based market research firm that tracked Mainland China private equity and venture capital markets.

The nature of work is changing: it is more global, more team-based, and increasingly dependent on information technology. Academic researchers have examined the effect of these changes upon organizational management, technologies, and cultures, but little attention has been paid to the physical environment in which such work is done. Managers, meanwhile, are struggling to cope with the many challenges of designing workspaces to best meet the needs of their organizations, employees, and other stakeholders. This introduction to the special issue builds on existing research in workplace design to put forth a model that describes the various influences and tensions encountered in workplace design. It highlights the theoretical gaps where additional work is needed to understand the role of, and choices made in, workplace design for organizational performance. In the process, it emphasizes the contributions of the seven articles in this special issue.

Summarizes some quantitative measures and qualitative observations regarding the effect of architecture on technical communication. Shows how the probability that two engineers or scientists in an organization will communicate declines rapidly with the distance between their work locations. Also addresses several objections to these observations and examines the relationships among different media, (i.e., face-to-face, telephone, electronic mail) and how each is affected by separation. Finally, discusses some examples of architectural strategies for managing communication.

Current trends in telecommuting and non-territorial office design have changed what it means to work in an on-site office and, subsequently, have increased the number of functions office design is expected to serve. At the same time, innovations in technology and design provide today's managers more choices than ever when outfitting their offices. Offers a framework of leveraged office design that illustrates how managers can make design choices that both capitalize on the newest innovations in office design and serve the emerging needs of corporate workers. The framework specifically explores three functions of workplace design: instrumental functions, such as improving decision making and inter-group collaboration; symbolic functions, such as affirming individual distinctiveness and group status; and aesthetic functions, such as allowing for desired sensory experiences and promoting a sense of place attachment. This framework illustrates how organizations can capitalize on all three functions through their choices in office decor and layout.

To create an environment to embody a culture of flexibility, egalitarianism, teamwork, and entrepreneurship, SEI Investments built a distinctive headquarters. The offices are open and desks are on wheels, making it easy for teams to interact and quickly reorganize. The walls are lined with an extensive collection of contemporary art to invite creativity and debate. Building an environment that embodies its culture has helped SEI achieve rapid financial growth and facilitated business model innovation. Examines some of the lessons from this bold experiment in how physical structure can follow strategy.

Students must analyze the marketing, operating and financial aspects of a personal fitness training centre to be located in London, Ontario, to determine an appropriate pricing and promotion strategy and the resulting projected financial success of the venture. Students need to develop cash budgets based on their assessment of the information provided. The analysis points to the financial uncertainty for a start-up company without hands-on experience from past years of operation. The case is suitable for class or as a report on business plan evaluation.

This case looks at the issue of whether an investment bank should invest in Tritortric, a privately held Turkish company specializing in white goods. Tritortric is planning an expansion in Europe either as OEM or through the acquisition of an existing European brand. Students will evaluate the attractiveness of Tritortric as a company and to provide guidance related to the mode of international expansion. This case also allows a broader discussion of how a company from an emerging country can compete against companies/brands from a developed one.

An abstract is not available for this product.

This case, presented in an interesting cartoon format, describes the first two weeks after Michael Faye (disguised), an expatriate executive, takes over as president of the ongoing China operations of a leading Western multinational corporation. A Zimbabwean by birth, with considerable Asian experience, Michael had little first-hand experience in the China market per se. His challenge lay in quickly climbing a steep learning curve to find the easiest and shortest path to fulfill his twin goals of repositioning the operations within the China market and repositioning China within the multinational corporation's mindset. The accompanying video, featuring an interview with Michael, gives participants insight into how he sees his role, as well as his learning and networking approach. This case might be used in conjunction with the case titled "Antonio Scarsi Takes Command" (IMD324). Together the two cases focus on the theme "Learning about Leading in China", and encourage participants to consider the very different learning styles and common leadership traits of two expatriate executives facing compelling managerial challenges in growing their Chinese business. The cases stimulate participants to reflect on: 1) what their own leadership and learning styles are like, and their implications; 2) what they could do to become more effective and efficient leaders and learners in any new assignment; and 3) how to learn from one another during class discussion.

"Tracey Burns, Director of Nursing at the King Edgar NHS Hospital Trust was assigned to head a project to improve the efficiency of patient flows throughout the hospital's system. The case describes how nurses are empowered to play a more proactive role in the process of discharging patients. In addition the Trust was going through a financial crisis, it had difficulties meeting government's waiting list targets and was receiving adverse media coverage. The case looks at how the nurses finally took responsibility for making the final decision to discharge individuals - traditionally the physician's job. The task was difficult as it meant the balance of power between physicians and nurses would alter, but in order for the process to change, there would have to be close cooperation between the two parties."

At the close of 2004, CANTV was Venezuela's largest privately owned company. It operated in the telecom market, the only economic sector other than oil that enjoyed sustained growth in the 1990s. At the start of 2000, it faced growing competition, regulated tariffs, and deteriorating consumer purchasing power. The company focused efforts on cost containment and the introduction of new services. Although in 2004 the telecom sector rebounded, political instability, currency devaluation, and tariff regulation affected investment plans. Poses the challenge of designing a social responsibility strategy for a large, publicly traded Latin American company operating in a context of political instability, financial volatility, and growing poverty. President Gustavo Roosen felt CANTV should project a "grand and friendly" image to its stakeholders (customers, government, and suppliers, among others). The aim was to align the social portfolio with the image of a company that generated social (friendly) and economic value (grand). The company's social responsibility was implemented through a variety of programs. CANTV had placed emphasis on philanthropy by means of the Social Fund and other sponsorships, run from the Institutional Relations Department. In 2004 CANTV launched Super@ulas, a program aligned with the telecom business and managed from the Executive Vice President's office. Some of the company's top managers expressed concern in 2004 over the results generated by social contributions, and looked for synergistic opportunities--among them improved relations with the regulating agency and alignment with business objectives. The idea was to continue providing support to social agencies, many of which were at risk as a result of the shrinking number of grant sources and a government policy that sought total control over social programs.

Our annual survey of ideas and trends that will make an impact on business: Duncan J. Watts contends that ordinary people, not "influentials," drive social epidemics. Yoshito Hori predicts that Japan's young entrepreneurs could outshine those in China and India. Frederic Dalsace, Coralie Damay, and David Dubois propose brands that--like Harry Potter--mature with their customers. Michael Schrage reveals the hidden value in long-forgotten equations. Harry Hutson and Barbara Perry put hope back in the executive repertoire. Eric von Hippel spotlights Denmark, where "user-centered innovation" is a national priority. Linda Stone detects a backlash against cell-phone and BlackBerry addiction. Michael C. Mankins suggests where to put all that excess cash. Ap Dijksterhuis reaffirms the value of sleeping on a decision. Robert G. Eccles, Liv Watson, and Mike Willis report on a new software standard that will make business and financial information dramatically easier to generate, aggregate, and analyze. Geoffrey B. West challenges the conventional wisdom that smaller innovation functions are more inventive. Karen Fraser warns of apparently loyal customers who are poised to bolt for ethical reasons. Phillip Longman predicts the return of large patriarchal families and their effects on marketing strategy. Rashi Glazer illustrates the sociocultural and business implications of nanotechnology. Yoko Ishikura urges global firms to "think locally." Klaus Kleinfeld and Erich Reinhardt explore the convergence of imaging technology and biotech and its enormous benefits for medical care. Christopher Meyer advises focusing on what you want from your network before you build the platform. Charles R. Morris asserts that health care costs are falling; it's spending that's on the rise. Clay Shirky shows why open source projects succeed by failing. David Weinberger claims that accountability has morphed into superstitious "accountabalism."

Cheryl Jamis, the high-powered marketing director for a large UK-based clothing retailer, seems to have it all--corner office included. What's more, she loves her job. But her professional dedication is beginning to jeopardize another job she is passionate about: being a mom. As Cheryl's career has grown, so has her daughter, Emma. And while juggling the two has never been easy, it's been manageable. Emma had been taking a backseat to whatever work crisis loomed at the moment, but now that she is seven, it is becoming harder to put her on hold. Marcus Addison, Cheryl's boss, seems sympathetic to her efforts to succeed as a professional and a mother. So when she suggests reducing her hours, she is taken aback by his response: "You'll just end up working the same hours for less pay, you know. Your job is a big, responsible one. It just can't be done in four days, let alone three." Then he implies--albeit vaguely--that she could soon be on the next step up the ladder. Before Cheryl has time to digest that possibility, however, Marcus tosses her yet another curveball: a chance to take his place on a business trip to the United States--a great opportunity. Though it means canceling a long-overdue weekend away with her daughter, Cheryl accepts--then almost immediately regrets it. When she goes to Marcus's office to hash things out, he preempts her speech with one of his own: The promotion he'd expected for her is off the table, at least for the time being. Now Cheryl has to make a decision: Should she stick it out or chuck it all? Commenting on this fictional case study in R0702B and R0702Z are Monica McGrath, an adjunct assistant professor of management at the University of Pennsylvania's Wharton School; Rebecca Matthias, a cofounder and the president and COO of Mothers Work; Robert J. Maricich, the CEO of Century Furniture; and Evelyne Sevin, a Paris-based partner at Egon Zehnder International.

Senior executives have long been frustrated by the disconnection between the plans and strategies they devise and the actual behavior of the managers throughout the company. This article approaches the problem from the ground up, recognizing that every time a manager allocates resources, that decision moves the company either into or out of alignment with its announced strategy. A well-known story--Intel's exit from the memory business--illustrates this point. When discussing what businesses Intel should be in, Andy Grove asked Gordon Moore what they would do if Intel were a company that they had just acquired. When Moore answered, "Get out of memory," they decided to do just that. It turned out, though, that Intel's revenues from memory were by this time only 4% of total sales. Intel's lower-level managers had already exited the business. What Intel hadn't done was to shut down the flow of research funding into memory (which was still eating up one-third of all research expenditures); nor had the company announced its exit to the outside world. Because divisional and operating managers--as well as customers and capital markets--have such a powerful impact on the realized strategy of the firm, senior management might consider focusing less on the company's formal strategy and more on the processes by which the company allocates resources. Top managers must know the track record of the people who are making resource allocation proposals; recognize the strategic issues at stake; reach down to operational managers to work across division lines; frame resource questions to reflect the corporate perspective, especially when large sums of money are involved and conditions are highly uncertain; and create a new context that allows top executives to circumvent the regular resource allocation process when necessary.

Moving beyond decades of mutual distrust and animosity, corporations and nongovernmental organizations (NGOs) are learning to cooperate with each other. Realizing that their interests are converging, the two sides are working together to create innovative business models that are helping to grow new markets and accelerate the eradication of poverty. The path to convergence has proceeded in three stages. In the initial be- responsible stage, companies and NGOs, realizing that they had to coexist, started to look for ways to influence each other through joint social responsibility projects. This experience paved the way for the get-into-business stage, in which NGOs and companies sought to serve the poor by setting up successful businesses. In the process, NGOs learned business discipline from the private sector, while corporations gained an appreciation for the local knowledge, low-cost business models, and community-based marketing techniques that the NGOs have mastered. Increased success on both sides has laid the foundation for the cocreate-business stage, in which companies and NGOs become key parts of each other's capacity to deliver value. When BP sought to market a duel-fuel portable stove in India, it set up one such cocreation system with three Indian NGOs. The system allowed BP to bring the innovative stove to a geographically dispersed market through myriad local distributors without incurring distribution costs so high that the product would become unaffordable. The company sold its stoves profitably, the NGOs gained access to a lucrative revenue stream that could fund other projects, and consumers got more than the ability to sit down to a hot meal--they got the opportunity to earn incomes as the local distributors and thus to gain economic and social influence.

Today's top executives are expected to do everything right, from coming up with solutions to unfathomably complex problems to having the charisma and prescience to rally stakeholders around a perfect vision of the future. But no one leader can be all things to all people. It's time to end the myth of the complete leader, say the authors. Those at the top must come to understand their weaknesses as well as their strengths. Only by embracing the ways in which they are incomplete can leaders fill in the gaps in their knowledge with others' skills. The incomplete leader has the confidence and humility to recognize unique talents and perspectives throughout the organization--and to let those qualities shine. The authors' study of leadership over the past six years has led them to develop a framework of distributed leadership that consists of four capabilities: sensemaking, relating, "visioning," and inventing. Sensemaking involves understanding and mapping the context in which a company and its people operate. A leader skilled in this area can quickly identify the complexities of a given situation and explain them to others. The second capability, relating, means being able to build trusting relationships with others through inquiring, advocating, and connecting. Visioning, the third capability, means coming up with a compelling image of the future. It is a collaborative process that articulates what the members of an organization want to create. Finally, inventing involves developing new ways to bring that vision to life. Rarely will a single person be skilled in all four areas. That's why it's critical that leaders find others who can offset their limitations and complement their strengths. Those who don't will not only bear the burden of leadership alone but will find themselves at the helm of an unbalanced ship.

Regulators, industry groups, consultants, and individual companies have developed elaborate guidelines over the years for assessing and managing risks in a wide range of areas, from commodity prices to natural disasters. Yet they have all but ignored reputational risk, mostly because they aren't sure how to define or measure it. That's a big problem, say the authors. Because so much market value comes from hard-to-assess intangible assets like brand equity and intellectual capital, organizations are especially vulnerable to anything that damages their reputations. Moreover, companies with strong positive reputations attract better talent and are perceived as providing more value in their products and services, which often allows them to charge a premium. Their customers are more loyal and buy broader ranges of products and services. Since the market believes that such companies will deliver sustained earnings and future growth, they have higher price-earnings multiples and market values and lower costs of capital. Most companies, however, do an inadequate job of managing their reputations in general and the risks to their reputations in particular. They tend to focus their energies on handling the threats to their reputations that have already surfaced. That is not risk management; it is crisis management--a reactive approach aimed at limiting the damage. The authors provide a framework for actively managing reputational risk. They introduce three factors (the reputation-reality gap, changing beliefs and expectations, and weak internal coordination) that affect the level of such risks and then explore several ways to sufficiently quantify and control those factors. The process outlined in this article will help managers do a better job of assessing existing and potential threats to their companies' reputations and deciding whether to accept a particular risk or take actions to avoid or mitigate it