Implementing diversity, equity, and inclusion (DEI) initiatives is an ongoing process that poses benefits and potential risks. One of the major challenges organizations face in implementing DEI initiatives is backfire, which occurs when well-intended initiatives result in unintended negative outcomes (e.g., discrimination against and decreased performance of members of underrepresented groups). Many leaders need an understanding of how and why DEI practices may backfire. As such, we provide five evidence-based recommendations to help organizations successfully implement DEI practices while preventing and minimizing backfire. We recommend they (1) broaden engagement in targeted recruitment, (2) adopt a context-conscious perspective on diversity training, (3) create DEI accountability structures, (4) align DEI with communication and culture, and (5) use a multilevel approach to monitor and evaluate DEI practices.
As applied fields, management, industrial-organizational psychology, and related disciplines seek to make their knowledge relevant to business practitioners. But the current dissemination model is inefficient, leading some to conclude that the gap between academics and practitioners poses one of the most pressing problems in management today. Using insights derived from the life and work of Timothy Baldwin, we offer four takeaways designed to foster collaboration between theoreticians and practitioners: (1) shrink the mission, (2) do not internalize the enemy, (3) find your champions, and (4) use the science of persuasion. These strategies are crucial to closing the gap and thus uniting the efforts of researchers and practitioners so as to ensure the practical relevance of research and to strengthen the organizational value proposition.
Many businesses engage genuinely in corporate social responsibility (CSR). But others engage in CSR-washing: using social concerns for financial gain and the distortion of internal practices to project the image of CSR to stakeholders. Unfair CSR-washing happens when a company is accused of being a CSR-washer despite having made significant and genuine efforts to address social or environmental issues. CSR-washing harms firms' reputations, resulting in the loss of consumer and stakeholder trust and even in potential lawsuits, depending on the type and severity of the behavior. We offer four interconnected, evidence-based recommendations to minimize a business's unfair perception as a CSR-washer: (1) integrate CSR into core activities rather than peripheral activities, (2) adopt a bottom-up approach to CSR, (3) develop an integrative performance-management/CSR system, and (4) develop an effective CSR communication strategy. We also offer specific implementation guidelines for each recommendation. Implementing these evidence-based practices will help organizations plan, execute, and monitor their CSR initiatives while remaining authentic and minimizing the chance of being labeled as CSR-washers.
Organizations face increasing demand for employees to develop their skills, and managers play an important role in supporting employees' learning and development. In contrast to the large body of research evidence on formal training, the emerging findings on informal learning have yet to provide managers with the necessary guidance to support employees' informal learning activities. Adopting a coaching analogy, we integrate these two research streams to introduce a model with which managers can simultaneously support employees' formal and informal learning. We elaborate on three critical dimensions of support, including direct assistance, guidance, and emotional support. We then present specific steps managers can adopt along each of these dimensions to better engage in employees' needs assessment, enhance their motivation to learn, and facilitate learning. Finally, we explain how managers can use a strategic learning plan for each employee and create synergy across formal and informal learning support, resulting in a positive learning climate.
Secretariat, if anyone remembers, won the triple crown at the Belmont Race Track on Long Island, located at the nexus of La Guardia, JFK Airports, the Long Island Railroad and multiple major highways. Belmont Race Track is now being rebuilt along with an adjacent UBS hockey arena for the New York Islanders which can be transmogrified into a spectacular concert venue with great acoustics and amazing design for the likes of Harry Styles and Bruce Springsteen who have already played there to packed audiences. Adjacent to the new arena is the new Belmont Park Village filled with luxury brands such as Prada, Zegna, Polo and the like. Do people who watch and bet on horses, attend hockey games and rock concerts, shop the luxury brands? Is this the way entertainment and retail will have to work together now in the age of ZOOM and e-commerce shopping?
This case covers strategic financial planning at the Boys & Girls Clubs of Central Virginia (BGCCVA), a nonprofit youth-serving organization with an annual expense budget of $6.7 million. In preparation for the next fiscal year, the CEO and CFO were compiling data and talking points for the May 2023 board meeting. BGCCVA was a high-performing, complex nonprofit with multiple locations serving more than 1,000 kids annually, and was often recognized as a standout by Boys & Girls Clubs of America (BGCA). The case explores two strategic challenges with financial implications: a new building and a staff development initiative, in addition to a recent leadership change. This case is inherently about managing competing strategic priorities, and gives instructors the option to explore everything from leadership transitions to annual budgeting. An obvious way to focus the discussion is through financial storytelling: first, understanding what the numbers mean, then second, evaluating the best way to communicate. There are opportunities to compare for-profit and nonprofit organizations as well. The teaching note includes an optional individual or team class exercise. This case is appropriate for full-time MBA, part-time MBA, and Executive MBA students, and can be taught in person or virtually.
Arconic Inc. was an international aluminum parts manufacturing and lightweight composite engineering conglomerate. In early 2019, it was set to be sold to Apollo Global Management Inc., a premier private equity firm; however, the deal fell apart due to a dispute over the valuation of pension obligations. The board of Arconic Inc. still demanded structural changes to maximize shareholder value, and in February 2020, the company engaged Bulge Bracket Bank (Bulge Bracket) to explore other options. The managing director of Bulge Bracket saw that there was a case to be made for spinning off Arconic Inc.’s Global Rolled Products division as a new company, to be called Arconic Corporation. He assigned a promising second-year analyst the task of conducting a comparable companies analysis to determine a fair valuation for Arconic Corporation. By drawing up a list of other companies in the materials industry and conducting a qualitative and quantitative analysis on them to identify comparable companies, the analyst was able to determine a reasonable implied valuation range ahead of the stock market listing of the spun-off company on April 1, 2020.
Karim Nour, the founder of Kashat, an Egyptian nano-lending fintech company, is contemplating how to manage the growth of his startup. Over the summer of 2022, Kashat's loan disbursements had grown by nearly 40%, fueled by macroeconomic instability in Egypt. However, economic uncertainty had also deterred investors from investing in the region. Nour soon began to realize he did not have the funds to maintain the company's rapid growth, in fact, he may not even have the capital to keep the company running. The case explores Nour's journey as he grapples with the concept of 'hibernating' the company, halting lending operations and preserving Kashat's invaluable data algorithm. Within the case, Nour weighs the risks of hibernating versus holding out for funding as he prepares to meet with Kashat's board. He also considers the possibility of being acquired as a means of continued survival for Kashat.
Arconic Inc. was an international aluminum parts manufacturing and lightweight composite engineering conglomerate. In early 2019, it was set to be sold to Apollo Global Management Inc., a premier private equity firm; however, the deal fell apart due to a dispute over the valuation of pension obligations. The board of Arconic Inc. still demanded structural changes to maximize shareholder value, and in February 2020, the company engaged Bulge Bracket Bank (Bulge Bracket) to explore other options. The managing director of Bulge Bracket saw that there was a case to be made for spinning off Arconic Inc.'s Global Rolled Products division as a new company, to be called Arconic Corporation. He assigned a promising second-year analyst the task of conducting a comparable companies analysis to determine a fair valuation for Arconic Corporation. By drawing up a list of other companies in the materials industry and conducting a qualitative and quantitative analysis on them to identify comparable companies, the analyst was able to determine a reasonable implied valuation range ahead of the stock market listing of the spun-off company on April 1, 2020.
Yassir Benjelloun-Touimi, CEO of ARTEX, aspired to marry the world of art and finance. Hoping to promote transparent, fractionalized ownership of renowned artwork, the founder had spent years contemplating the birth of an art stock market. This exchange would allow investors to trade art shares, much like the real-time trading of conventional stocks. Accompanied by an educational platform and partnerships with art institutions, ARTEX would help "democratize" art and unlock a new, stable asset class for all. Was the world ready-and could Benjelloun-Touimi convince a sufficient mass of art lovers and more importantly, regular investors-into buying fractions of artwork that would be valued at market-trade prices?
Flight Centre Travel Group (FCTG), a leading global travel agency based in Australia, faced unprecedented challenges during the COVID-19 pandemic. Known for its extensive network of physical stores and diverse travel services, FCTG experienced severe disruptions due to global travel restrictions and reduced demand. In response, it implemented a strategic transformation, focusing on digital enhancement, cost reduction, and securing additional liquidity. The company streamlined its operations, invested in technology, and formed strategic partnerships to adapt to evolving consumer behaviours. By diversifying its service offerings and making strategic acquisitions, FCTG positioned itself for recovery and growth in the post-pandemic travel industry. However, as international and domestic travel began to recover after 2023, new challenges emerged in the form of persistent inflation and rising living costs. FCTG now faced the question of how to maintain its competitive edge and expand its business while navigating these economic pressures, prompting a re-evaluation of its strategies for sustainable growth amid a rapidly changing market landscape.
In early 2020, Daniela Suarez, a dynamic fitness entrepreneur, opened a successful studio in downtown Montreal, earning a loyal clientele with her energy and passion for holistic health. When COVID-19 shutdowns forced her to close, she quickly pivoted to online training, inspiring clients and growing her brand with engaging fitness and nutrition content. A fitness contest winner and nutrition textbook author, Suarez leveraged her expertise to cultivate a strong online following.<br><br>She later expanded into e-commerce with Ēvolvō, offering resistance bands and fitness apparel through drop shipping. While sales showed promise, new challenges emerged: What products should she offer? What mix would be optimal? How could she boost sales and profitability?
Derrick and Rebecca Pearson, the unlikely owners of KNTK 93.7 The Ticket, hoped to revitalize the traditional sports radio station in Lincoln, Nebraska, since purchasing it in September 2021. To accomplish their goal, they expanded The Ticket’s programming and incorporated a community-focused approach. But the Pearsons needed to decide how to balance their efforts between traditional terrestrial radio and digital platforms. They also needed to decide whether to focus on popular sports or explore niche sports to drive future growth and community engagement.
In January 2023, Ajit Padmanabh, founder of Who VR (virtual reality), and his team worked tirelessly on product, price, distribution, and promotion to create an overall marketing strategy for Who VR, a virtual and augmented reality brand. Who VR offered content focused on Indian history, arts, and culture through multi-sensory immersive experiences. The company created a buzz in the marketplace by winning a few large and impactful projects, and its initial success was remarkable. Its presence in various industrial exhibitions had attracted widespread attention. And its Bengaluru office was inundated with inquiry calls. But Padmanabh knew that the initial momentum had to continue for long-term success. With each day, pressure was building among the team to release deliverables.
Corporate ownership structure shapes corporate governance in profound ways, impacting decision-making speed, risk management, strategic alignment, and firm performance. The effectiveness of governance mechanisms varies with ownership structures, from sole proprietorships to shareholders in public firms, as each structure entails unique challenges in balancing control, oversight, and incentive alignment. This note explores governance strategies across various ownership structures—grounded in theoretical insights from agency, stewardship, and stakeholder theory—offering recommendations to create stability, promote strategic alignment, and foster trust.
A balance sheet is a key financial statement that provides a snapshot of a company’s financial position at a specific point in time. This note offers a concise overview of the basics of the balance sheet.