ForeFront Wood Products produces high-quality wooden door sets. The company faces capacity constraints and inefficiencies resulting from its processes and culture. As a consequence, it struggles to be profitable. ForeFront's parent company, ForeFront Holdings, plans an initial public offering in 2007. It has recently hired a new operations manager with the mandate to turn the factory around. As the operations manager begins his job he tours the manufacturing facilities to gather information on production processes and factors affecting capacity, cost, and conformance. Describes the firm's manufacturing and managerial processes. Many issues are covered, including high costs, low yields, unreported defects, and equipment that fails to operate near its rated capacity. Organizational and change management challenges, including high employee turnover, excessive use of overtime, and failure of supervisors to observe or report employee errors are also described.
In the early 1980s, Missouri's director of early childhood education launched a novel parent education pilot project designed to increase children's kindergarten readiness and support family wellbeing by sending specially trained educators on monthly home visits to help parents foster their babies' early development. By 1985, when an evaluation touted strong results for the pilot, the Missouri legislature already had made the program-dubbed Parents as Teachers-a mandatory offering of school districts statewide. Soon after, the St. Louis-based Parents as Teachers National Center, formed to oversee the state program and respond to outside inquiries, became an independent nonprofit. From the start, the National Center staff built quality controls into program design and the training of parent educators while simultaneously embracing rapid growth; by 1999 Parents as Teachers programs served more than 500,000 children in the US and six foreign countries. But despite such quality control efforts, the flexibility and adaptability that aided fast replication left the National Center with no effective way to manage or monitor the more than 2,000 sites worldwide. As a result, the National Center was forced to take a hard look at its replication model, its oversight role, and at how the center could better monitor and improve program quality. HKS Case Number 1849.0
In the early 1980s, Missouri's director of early childhood education launched a novel parent education pilot project designed to increase children's kindergarten readiness and support family wellbeing by sending specially trained educators on monthly home visits to help parents foster their babies' early development. By 1985, when an evaluation touted strong results for the pilot, the Missouri legislature already had made the program-dubbed Parents as Teachers-a mandatory offering of school districts statewide. Soon after, the St. Louis-based Parents as Teachers National Center, formed to oversee the state program and respond to outside inquiries, became an independent nonprofit. From the start, the National Center staff built quality controls into program design and the training of parent educators while simultaneously embracing rapid growth; by 1999 Parents as Teachers programs served more than 500,000 children in the US and six foreign countries. But despite such quality control efforts, the flexibility and adaptability that aided fast replication left the National Center with no effective way to manage or monitor the more than 2,000 sites worldwide. As a result, the National Center was forced to take a hard look at its replication model, its oversight role, and at how the center could better monitor and improve program quality. HKS Case Number 1850.0
Gianna Angelopoulous-Daskalaki led the bidding organization that secured the 2004 Olympics for Athens and then later the preparations for those Games. Tracks her leadership style and how she and her team won the bid. After substantial planning problems threatened to cost Greece the Olympics, Angelopoulos was asked to take over the preparations, with only 4 of the 7 years remaining. Ends with the question of what she needs to consider in making the decision to take over the Games' preparations, what role she should play, and where she should start.
Describes the formation and rapid growth of a drug testing company. The company needs to decide whether to enter the painkiller testing market, in addition to growing its drug treatment center business.
Describes ongoing systemic reform efforts in the Chicago Public Schools. Introduces the concept of "differentiation and integration," a managerial approach emerging in public school systems that couples "differentiated" treatment and support for individual schools with efforts to "integrate" the work of all schools and the district's central offices around a coherent improvement strategy. Participants have an opportunity to diagnose the circumstances in the 617-school district that drive CPS leadership to manage through differentiation and integration in order to improve student and school performance at scale. The discussion will enable participants to evaluate the district's actions to date; analyze key roles, structures, and functions that facilitate effective differentiation and integration; and identify major challenges to strategy execution.
Established in the late 1960s, Interplast was the first international humanitarian organization to send American medical professionals overseas to provide free reconstructive surgery to children and adults in developing countries. Over the next 30 years, Interplast grew from an informal volunteer-led effort into a professional organization. By 2000, Interplast had over 2500 volunteers, had sponsored trips to 30 countries, and performed over 3000 surgeries each year. This case is intended to be used a background reading for the companion videocase, "The Evolution of Interplast," which details the organization's growth and the debates that arose as it began to shift its focus from direct service (sending surgeons and other medical professionals overseas provide reconstructive surgery) to education, (investing in training foreign doctors) and empowerment (providing resources and infrastructure) so that these local professionals could serve their own population. The videocase chronicles the debate over this shift as well as related policy decisions, raising issues of organizational evolution, strategic change, and nonprofit governance.
The government of the State of Victoria in Australia has been a pioneer in using the private sector to provide public infrastructure through "public-private partnerships" (PPPs). Under PPP programs the government contracts with a private company not just to build a facility but to operate it over its expected life, as well. PPPs are used for "social" infrastructure such as courthouses and hospitals as well as for "economic" infrastructure such as toll roads or public transport. The Department of Treasury required that agencies pursuing a PPP demonstrate that the PPP would save money compared to traditional procurement options. But critics argued that the Treasury's guidelines for such cost comparisons were flawed. The debate raised issues about how to compare the risks assumed by the government under different procurement options and how the differences in risks should be reflected in the discount rates. HKS Case Number 1822.0
The case is set in a large teaching hospital. Students must analyze the actual and forecasted budgets provided for the previous year to identify the financial difficulties of the hospital. They can then solve costing and budgeting exercises. Finally, students may use the data they have generated in the case to prepare a budget for the following year. The case questions cover: revenue and expenditure variance analysis; activity-based costing (cost accounting); and simple capital budgeting problems that can be answered using net present value, IRR, and discount rate techniques. HKS Case Number 1823.0
This note describes the basics fo time series analysis and forecasting. It discusses the kinds of patterns found in time serices (cycle, trend, adn seasonality) and the most common time series models: exponential smoothing, Holt's, and Winter's. It is written for the MBA audience.
Habitat for Humanity--Egypt (HFHE), has grown in just seven years to become one of the most successful Habitat programs worldwide. The organization is at a crossroads as it attempts to reach the ambitious goal of serving 10% of the 20 million Egyptians living in poverty by 2023, while at the same time developing the local NGO capacity to serve the remaining 90%. Since its establishment in 1989, HFHE has worked in close partnership with CEOSS, a 50-year-old NGO, and through other local, community-based organizations. This network approach diverges from the traditional Habitat model of building houses through HFH's own affiliate organizations, but enables HFHE to begin building immediately rather than wait several years to become sufficiently established to operate as an independent entity. Yousry Makar, HFHE's national director, faces several key issues. How can he ensure that as HFHE's partnership network grows, his own office and staff can sustain the network? To what extent should he seek to address the needs of the "poorest of the poor," who cannot even repay loans and therefore do not qualify as Habitat beneficiaries? How can Makar continue to innovate to achieve the greatest mission impact while maintaining funding and support for HFHE?
A global real estate investment firm is trying to decide whether to enter into a property derivative transaction to help it effect a change in asset allocation. The market for real estate derivatives is beginning to grow quite rapidly and the firm is trying to understand how to use these instruments in managing its business.
Considers decisions facing the leader of a manufacturing staff project team assigned to a plant where yields have deteriorated sharply. The process is complex: the plant organization is not cooperative, and there are deep disagreements about what is wrong and how to fix it. Provides an opportunity to analyze yields and productivity, as well as the organizational and personal challenges inherent in line-staff interaction.
In the mid-1980s, Prudential completely dominated the UK insurance market. Fifteen years later it was in grave danger of becoming irrelevant, and then things got worse with the post 9/11 collapse of stock markets and the ensuing downfall of its major product ("with profits" insurance). Led by a new CEO, Mark Wood, Prudential UK's management team embarked on a four-year rebuilding journey. The company was fragmented and had lost its direction. The product mix and distribution channels needed to be overhauled, as did the customer service systems and philosophies. The company had zero partnerships. And the corporate culture resembled that of a "country club". Yet, being in the insurance sector, the company had to continue projecting a reassuring image. This severely constrained the possibilities of making the case for change. Nevertheless, in the space of four years, Mark Wood and his team refocused the company, restored its pride and brought it back among the contenders. It emerged with solid assets - outstanding service, genuine innovation, funds for growth and improved relations with clients, IFAs and the regulator. It created options for itself. Learning objectives: The case focuses on the managerial and leadership aspects of a large-scale restructuring. It features some classic turnaround aspects, but also some unusual ones: 1) the rotating appointment of a "quartermaster" to drive performance in each quarter; 2) a leadership story that projects employees forward 1000 days; 3) regular periods of reflection time as a team; 4) the development of an internal business transformation capability, which involved up to 15 per cent of the workforce working off-line on change projects full-time. The case also raises issues around institutionalizing change.
In almost every county in the world, more than 20% of the population smoke. The health hazards of cigarettes are many and severe. Recently, most developed countries have introduced laws to restrict where smokers can light up. These laws might encourage smokers to consume less or to quit entirely. Sweden stands out among peer countries as its smoking population is only 18% of all adults. Consequently, it has low rates of smoking-related illness and death. The Swedes consume as much nicotine as elsewhere, however, because many of them use a traditional smokeless tobacco product called snus. Since the tobacco in snus is pasteurized, not fermented as in cigarettes and other smokeless tobaccos, it contains far fewer cancer-causing substances. Smokers may reduce the harm they cause themselves by consuming more snus, and fewer cigarettes. The dilemma for tobacco companies is whether they should introduce snus in markets where they sell cigarettes. And, if so, should they market it as a compliment to cigarettes, to be consumed where smoking is banned, or as a substitute to cigarettes, with the aim of smokers quitting cigarettes altogether? The sale of snus is banned in the EU (except in Sweden) but legal in other countries like the US and Japan. The dilemma for policy makers is whether to legalize snus and how to regulate it where it may be legally sold. The case explores the co-dependence of marketing in the private sector and public policy, and how each side must take the incentives, actions and reactions of the other into account.
Louise Chen must decide what performance assessment to give one of her employees who has, uncharacteristically, failed to meet one of her key objectives for the year. The situation is difficult for several reasons; the causes of the unacceptable performance are not clear; the employee has previously received excellent appraisals, including a recent one by the vice-president; and the employee was absent for a good part of the year on maternity leave. The various factors that influence sustained performance (ability, motivation, resources, role clarity, reinforcement) are examined, as well as steps leaders can take in improving performance of those for whom they are responsible.