More and more managers today are changing their company's performance measurement systems to track nonfinancial metrics like quality, customer satisfaction, innovation, and market share. They believe these measures reflect a company's economic condition and growth prospects better than its reported earnings do. New technologies and more sophisticated databases have made the change to nonfinancial performance measurement systems possible and economically feasible.
The Plane Truth, a newspaper started by a group of flight attendants at the struggling Century Airlines, was considered one of the successes of the company's Century Spirit change program. With time, though, the Plane Truth began to run articles critical of management and of other work groups. Worried the paper was sabotaging the Spirit program, the president asked the human resources director to cancel it. Experts on organizational change and motivation analyze the situation.
How can manufacturing companies streamline processes to shrink the all-important time-to-market span? How can managers and team members learn useful lessons from past efforts? Getting R&D, manufacturing, and marketing to communicate is still the biggest hurdle. The Return Map answers these challenges by providing a graphic way to bring all functions together, first for estimating costs and time, then for tracking projects as they evolve.
An antiquated airport jeopardizes a region's economic health but the county of Albany, New York, operator of the airport, lacks funds to undertake much-needed capital improvements. In this context, the county executive seriously examines privatization-selling the airport off to a private developer with a background in airport management. This case is designed to permit a full discussion of the potential merits and drawbacks of privatization of such a large public facility. It raises such issues as monopoly power and ease of access to capital. The decision to permit the Albany privatization is ultimately made by the Federal Aviation Administration, thus allowing the case to raise national as well as local issues. HKS Case Number 1024.0
An antiquated airport jeopardizes a region's economic health but the county of Albany, New York, operator of the airport, lacks funds to undertake much-needed capital improvements. In this context, the county executive seriously examines privatization-selling the airport off to a private developer with a background in airport management. This case is designed to permit a full discussion of the potential merits and drawbacks of privatization of such a large public facility. It raises such issues as monopoly power and ease of access to capital. The decision to permit the Albany privatization is ultimately made by the Federal Aviation Administration, thus allowing the case to raise national as well as local issues. HKS Case Number 1024.1
When the Seattle Solid Waste Utility, the department responsible for trash pick-up and disposal, moved during 1988-90 to introduce curbside recycling and other dramatic changes in garbage collection, director Diana Gale believed presentation of the utility's plans to the press would be crucial to their prospects for public acceptance. This case recounts the elaborate but successful strategies Gale employed, ranging from training sessions for utility employees run by former television news anchors, to the advent of the utility's own weekly newsletter to track problems and changes in the new garbage program. HKS Case Number 1058.0
In July 1991, South African president F.W. de Klerk announced the appointment of Hermanus Kriel to the cabinet post of minister of law and order. As the official responsible for oversight of the controversial national police force, the South African Police (SAP), Kriel would perhaps have the hardest job in a rapidly changing South Africa: a job made all the more daunting by recent revelations of a police role in fanning the flames of factional strife among blacks. The growing scandal had reinforced the SAP's reputation among black South Africans as one of the most hated symbols of white rule. For over four decades, the South African Police had been entrusted with enforcing the country's notorious and iniquitous system of apartheid--a task it had performed with what many regarded as excessive zeal and brutality. All this had been done by the SAP in the name of the apartheid system, which it was sworn to uphold. Yet as the 1980s drew to a close, the underpinnings of that system began to change dramatically and SAP's mission was no longer in force. This case details the changes that took place within SAP during the post-apartheid period. It should be paired with HKS830 (Part B). HKS Case Number 1095.0.
Researchers at Merck & Co. believe that a drug they had developed for animals might be an effective treatment for human river blindness, a debilitating illness that affects hundreds of thousands of poor people in the Third World. The process of development and testing, however, will be enormously costly. Should the company devote critical resources to developing the drug, knowing that, even if it were medically successful, it would yield little financial return? The case presents background on economic and scientific constraints that shape the pharmaceutical industry. It provides a framework for discussing ethical aspects of product innovation and the risks and benefits of investments in research. It may be used in Strategic Management, Business and Society, and Ethics courses.
Chronicles three decades of a forklift truck company's industrial design strategy. Having grown rapidly from a small, pioneering niche-company to a leading, full-range, global producer, Crown is reevaluating its design services strategy. Discusses the company's long-term relationship with its design consultants and the pros and cons of establishing an in-house design department at this point in its history. Students need to decide whether Crown should opt for in-house design services, stay with its former design consultants, or look for new consultants.
Three-party scoreable negotiation among three firms regarding the joint construction of an off-street parking facility. Three firms (Arundel Products, Bartel Publishing and Chiptech) are building new facilities in a recently developed part of town. The city requires each of them to construct off-street parking for their employees. The firms have jointly hired financial analysts, architects and other specialists to describe and price their options. The firms recognize that if they pool their capital and operating resources, they can build one parking garage to serve all employees. However, if all three firms cannot come to an agreement, various joint ventures between any two of the firms would still save some money for the two participants, though not as much. The climate for coalitions are unstable because the goal of each company is to maximize its own interests and financial well-being.
Two-party contract negotiation between a computer consultant and a school district representative at an apparent impasse over different expectations over cost of services. A school district and a computer consultant are negotiating a potential contract for repair of the school district's failed computer network. Both parties are eager to work with each other: the consultant's qualifications appear perfect for the school district's needs, and the school district would help the consultant connect with additional governmental clients. After a fair amount of negotiation, however, the parties find themselves at an impasse: the consultant's bid (which the consultant feels is very low) is considerably higher than the school's budget for this project. The consultant and a school representative have agreed to meet one last time in an effort to salvage the deal. This simulation happens to involve a consulting contract, but the negotiation lessons are generic. The exercise can be used simply to illustrate the importance of the creative, option-generating aspect of negotiation. More importantly, it can also be used as the principal vehicle for presenting integrative theory more broadly.
Two-party contract negotiation between a computer consultant and a school district representative at an apparent impasse over different expectations over cost of services. A school district and a computer consultant are negotiating a potential contract for repair of the school district's failed computer network. Both parties are eager to work with each other: the consultant's qualifications appear perfect for the school district's needs, and the school district would help the consultant connect with additional governmental clients. After a fair amount of negotiation, however, the parties find themselves at an impasse: the consultant's bid (which the consultant feels is very low) is considerably higher than the school's budget for this project. The consultant and a school representative have agreed to meet one last time in an effort to salvage the deal. This simulation happens to involve a consulting contract, but the negotiation lessons are generic. The exercise can be used simply to illustrate the importance of the creative, option-generating aspect of negotiation. More importantly, it can also be used as the principal vehicle for presenting integrative theory more broadly.
Participants sole objective is to maximize their own points with complete indifference to the other participants. Participants are to play either an X or a Y and, depending on other participants' choices, a payoff is awarded each round. Only before rounds 5, 8 and 10 are players allowed to confer with each other. MECHANICS: This exercise is played in ten quick rounds. Players are grouped into fours. Explanation of the exercise should take no more than 5 minutes. The ten rounds should take about 15 minutes, while debriefing can take from 30 to 45 minutes.
Three independent organizations, "A," "B" and "C," have sent representatives to a three-way negotiation. The representatives have learned that there are benefits to working together. If all three groups reach an agreement, benefits totaling 121 points will be split three ways (to be determined by the participants). If only two of the organizations reach an agreement, the total benefits to be split will be less than 121 (varying, depending on which two organizations join together) and the third party will be left with nothing.
General Instructions for Dirty Stuff II Six-person, multi-issue facilitated negotiation among industry, environmental, consumer/community, labor, and government representatives to develop single-text regulation of toxic industrial by-product. Dirty Stuff is an industrial by-product of a large number of industrial processes that has recently found to have harmful health side-effects. A first meeting was convened at which a representative from environmental organizations, labor unions, industry groups, community groups and consumer groups would attend in order to discuss how Dirty Stuff is to be regulated. This meeting ended abruptly and in a highly emotional and hostile fashion - a fact which has become reported in the press. A second meeting has been convened and the various factions have agreed to enlist the help of a facilitator. The goal of the upcoming second meeting is to revise the proposed rule regarding the production and use of Dirty Stuff. This will be published in The Federal Register.
Confidential Instructions for the Agency Negotiator Six-person, multi-issue facilitated negotiation among industry, environmental, consumer/community, labor, and government representatives to develop single-text regulation of toxic industrial by-product. Dirty Stuff is an industrial by-product of a large number of industrial processes that has recently found to have harmful health side-effects. A first meeting was convened at which a representative from environmental organizations, labor unions, industry groups, community groups and consumer groups would attend in order to discuss how Dirty Stuff is to be regulated. This meeting ended abruptly and in a highly emotional and hostile fashion - a fact which has become reported in the press. A second meeting has been convened and the various factions have agreed to enlist the help of a facilitator. The goal of the upcoming second meeting is to revise the proposed rule regarding the production and use of Dirty Stuff. This will be published in The Federal Register.