Describes the total transformation of a wholly owned subsidiary of Aegon, one of the largest insurance companies in the Netherlands, which deals in the sale of financial instruments, such as annuities, savings, and investment products. The new managing director forms a management team, and together they segment the market, introduce a variety of distribution methods, and increase sales by dramatic amounts while keeping the number of staff constant. Looks at team building, market segmentation by focusing on customer values, distribution strategy, and management philosophy. An ECCH award winner.
Granite Rock is an exceptionally well-run company and has consistently gained market share in a commodity business dominated by multinational giants, in spite of a 6% price premium. The case contains a brief history of Granite Rock from its founding in 1895 until 1992, the year the company received the Malcolm Baldrige National Quality Award. Gives an opportunity to observe an ideologically driven company that has put its values to work for the company. Discusses the inner workings of Granite Rock, which is rich with mechanisms and management practices that drive the organization to continually improve the critical aspects of its business. The entire organization and management are driven by a passion for the process of continuous improvement. Illustrates how processes and mechanisms can be institutionalized so that a company can become an exciting and vibrant "ticking clock."
Whether as analyst or deputy director at the federal Office of Management and Budget, or as the chief executive of Alcoa, Paul O'Neill has sought to inspire those working for him to approach their tasks with vision and without preconceptions. In considering how he has applied disciplined, analytical techniques to different organizations, O'Neill dismisses the assertion of significant distinctions between the public and private sectors.
Two-party, single-issue negotiation between two neighbors regarding the potential sale of a vacant lot. The Parkers and the Gibsons own homes on adjacent plots of land. The homes are separated by a 1/2 lot the Parkers purchased years ago in hopes of building a tennis court, which they never got around to. The Parkers are now moving out of state and are interested in selling the half lot, as the buyer of their home is not interested in it. The Parkers have approached the Gibsons (who have interest in the lot for home improvements they have planned) about purchasing the lot. Neither party knows much about the other's interests. The Parkers and Gibsons are meeting to explore whether a mutually beneficial transaction is possible.
Two-party, single-issue negotiation between two neighbors regarding the potential sale of a vacant lot. The Parkers and the Gibsons own homes on adjacent plots of land. The homes are separated by a 1/2 lot the Parkers purchased years ago in hopes of building a tennis court, which they never got around to. The Parkers are now moving out of state and are interested in selling the half lot, as the buyer of their home is not interested in it. The Parkers have approached the Gibsons (who have interest in the lot for home improvements they have planned) about purchasing the lot. Neither party knows much about the other's interests. The Parkers and Gibsons are meeting to explore whether a mutually beneficial transaction is possible.
Two-party, single-issue negotiation between two neighbors regarding the potential sale of a vacant lot. The Parkers and the Gibsons own homes on adjacent plots of land. The homes are separated by a 1/2 lot the Parkers purchased years ago in hopes of building a tennis court, which they never got around to. The Parkers are now moving out of state and are interested in selling the half lot, as the buyer of their home is not interested in it. The Parkers have approached the Gibsons (who have interest in the lot for home improvements they have planned) about purchasing the lot. Neither party knows much about the other's interests. The Parkers and Gibsons are meeting to explore whether a mutually beneficial transaction is possible.
In the summer of 1991, the semi-annual meeting of the board of Toppan Moore, a joint venture between Toppan Printing of Japan and Moore Corp. of Canada, took place in Tokyo. With sales exceeding U.S. $1 billion, Toppan Moore was a leader in the Japanese business forms industry and widely considered one of the most successful international joint ventures in Japan. While pleased with the venture's recent results, the board members want to ensure continued prosperity.
After launching a new quality program, the CEO of Top Chemical Co. was searching for a team-based compensation program that would reflect his company's new philosophy. A committee was formed to discuss the options. The compensation vice president explained his idea for paying teams based on their performance, making pay an incentive for continued improvement and overall excellence of the team. The plan met with resistance from employees at all levels of the company. What seemed like a simple idea for a pay plan turned into a very complicated matter. Four experts on compensation reveal where Top Chemical went wrong in its plan and how the CEO might bring about change successfully.
Successful managers are born with the potential to be good strategists, but they must develop their natural talents. CEOs and top management can help by identifying and promoting such talents in their employees. A questionnaire has been developed to help measure strategic management competence. Strategic managers provide subordinates with general guidelines, just as the Prussian military strategist Helmuth von Moltke issued directives to his officers. Outstanding entrepreneurs and managers create a corporate culture in which their vision, philosophy, and business strategies are implemented by employees who think independently.
In 1991, Emerson Electric marked its 34th year of increased earnings and earnings per share. Its financial performance is a result of planning and control. Management sets tough financial goals. CEO Charles Knight and his senior managers spend at least half their time in the planning cycle, which culminates in annual conferences where division heads communicate--and defend--their business plans. Finally, a tight control system that focuses on short-term results tracks implementation and feeds back into the next planning conference. McKinsey Award Winner.
In its successful efforts to sell state-owned industries during the 1980s, the Thatcher government in the United Kingdom learned that privatization is not only an end in itself but can also transform public attitudes toward ownership. Privatization produces improved performance and, among politicians, a greater focus on government's role as a regulator, rather than owner, of industry. But in the course of privatizing, conflicts arise that governments must work hard to overcome.
Most corporate improvement efforts have negligible results because they focus on activities, not results, and there is no explicit connection between action and outcome. "Results-driven" approaches offer greater potential for improvement because they focus on achieving specific, measurable goals. By committing to incremental change, managers not only can see results faster but also determine more quickly what is working and what isn't.
Masayoshi Son, the founder, president, and CEO of SOFTBANK is a good example of a new Japanese-style entrepreneurship that is emerging. Originally a software distribution business, today SOFTBANK has six divisions in different businesses, all related to the personal computer. SOFTBANK also has five wholly owned subsidiaries and participates in five joint ventures.
The takeover battles of the 1980s have given way to a battle over their meaning and legacy. On one side are critics who argue that the events of the 1980s are best understood as episodes in the greatest criminal conspiracy Wall Street has ever known. On the other side are advocates of the new finance for whom the decade represents a triumph of financial innovation.
SunLife Assurance Co., a large life-insurance firm, wishes to provide a greater degree of computer support for its sales agents. A program to encourage agents to acquire laptop computers for use in selling had been established for some time. However, only a few agents had taken advantage of the program. The company decided to develop a new system, termed Maestro, which would provide a suite of tools to help agents perform their jobs more efficiently and effectively. The tools would be made available to agents using laptops; also, agents were charged a fee for the software by the company. The development of the new tools was handled by the individual marketing group, not by the MIS function. Initial rollout of the new system has been only partially successful, and the director of individual marketing is concerned about how to improve the acceptance and adoption of the system by agents in the future.
A reform mayor of Bolivia's capital city is taken aback by a consultant's report showing a shocking level of corruption on the part of municipal police-a force whose many duties involve regulation of the city's sprawling open-air markets. Licenses, health inspections and many other forms of public permits are routinely exchanged for money, goods, even sex. What's more, the report concludes that the vast majority of the police could not do their job even if they set out to do so: most are illiterate. In this political management/ethics case, the Harvard-educated mayor must decide both whether and how to attempt to reform this system, at a time when he is facing re-election and is widely viewed as a "technocrat." HKS Case Number 1104.0
US price supports for domestically grown sugar become controversial because of their varying impacts on sugar-exporting nations, domestic sugar refiners and, of course, domestic growers. This case, told from the point of view of the Council of Economic Advisers, calls for an evaluation of the sugar price supports. It requires students to disentangle and quantify the complex resource allocation and income distribution consequences of the domestic sugar price support program. HKS Case Number 1128.0
New leadership appointed in 1977 to head Sweden's National Student Aid Board faces a near-desperate situation. So inefficient is the agency in processing student applications for college living expenses that some students, strapped for cash, face the prospect of asking for public assistance for the poor. CSN chief Billy Olsson, whose background had been in politics, and computer expert Karl-Johan Johansson face the task of finding a way for the agency to provide financial assistance, within the constraints of student income qualifications, in a timely fashion. This organizational production/operational capacity case describes the turnaround strategy-which they call "offensive cutback management"-successfully implemented by Olsson and Johansson such that, by 1991, the CSN was named one of the four best Government Agencies in Sweden. HKS Case Number 1161.3
Four minority employees at Inland Steel encourage their company to initiate more aggressive affirmative action and diversity efforts. The "gang of four," as they call themselves, challenge a white general manager to join them in promoting increased opportunities for minorities and women. This case focuses on diversity, strategies for social change in organizations, and how senior managers can respond to grassroots campaigns. It can be used in Organizational Behavior and Ethics courses