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Supplements the (A) case.

Supplements the (A) case.

Set in 2002, this case looks at the potential for hybrid electric vehicles in the United States. Looks at the pressures on the automotive industry to produce a commercially viable, environmentally friendly vehicle and the consumer behavior surrounding purchase of those vehicles. Traces efforts over the years to produce electric vehicles, hybrid electric vehicles, and fuel-cell vehicles. Presents the questions of whether and why hybrid electric vehicles will succeed where other alternative-fuel vehicles have failed.

Volvo Trucks has worked on a global strategy for several decades. Beginning in the mid-1970s, the company decided to enter the largest market for trucks: the United States. Over time, the company has struggled to get a significant share of the U.S. market and at the same time integrate operations around the world into a truly global strategy. However, the competitive structure (five-force model) differs significantly between Europe and the United States, and in spite of heavy investments, the global synergies seem far-fetched. This case illustrates clearly that entry and penetration of a market is a learning process for Volvo, where the initial strategic logic and underlying assumptions have to be changed several times.

Supplements the (A) case.

Supplements the (A) case.

In December 1999, only weeks after protests at the annual meeting of the World Trade Organization sparked violent protests which rocked the city, Seattle public safety officials face a new threat. An Algerian man has been arrested trying to cross the US border from Canada-in a car whose trunk is filled with enough explosions, says the FBI, to topple a multi-story building. What's more, the arrested man, Ahmed Ressam, had held a reservation at a motel just blocks from Seattle's most famous landmark, the Space Needle, in the Seattle Center, at which thousands of city residents and tourists are scheduled to celebrate the first New Year's Eve of the 21st century. This case examines the decision-making process of Seattle officials as they consider whether the possibility of terrorism should lead them to cancel the elaborate public celebrations scheduled to coincide with the dawn of the new millennium. Pair with Sequel (HKS 865). HKS Case Number 1648.0

In December 1999, only weeks after protests at the annual meeting of the World Trade Organization sparked violent protests which rocked the city, Seattle public safety officials face a new threat. An Algerian man has been arrested trying to cross the US border from Canada-in a car whose trunk is filled with enough explosions, says the FBI, to topple a multi-story building. What's more, the arrested man, Ahmed Ressam, had held a reservation at a motel just blocks from Seattle's most famous landmark, the Space Needle, in the Seattle Center, at which thousands of city residents and tourists are scheduled to celebrate the first New Year's Eve of the 21st century. This case examines the decision-making process of Seattle officials as they consider whether the possibility of terrorism should lead them to cancel the elaborate public celebrations scheduled to coincide with the dawn of the new millennium. Pair with full case (HKS488). HKS Case Number 1648.1.

When Anthony Williams is elected mayor of Washington, DC in November 1998, he inherits a city that had been close to insolvency. Although its financial picture has improved, it has historically lacked the equipment and systems to deliver high-quality city services. Williams had won a convincing victory at the polls in part by emphasizing the need for improved service and accountability. He faces two challenges: both to improve the quality of city services and to devise a way to ensure voters are aware of the extent of the improvement. With both in mind, Williams and his top aides develop a new system to guide city government. The comprehensive performance measurement system requires all city departments to set measurable "scorecard" goals for improving the services they deliver-and to report regularly on their progress in meeting them. This case describes the design and implementation of the DC performance measurement system, with particular focus on several specific departments. The case is designed, specifically, to help students understand the difference between outputs and outcomes, a distinction reinforced by a review and assessment of the goals set by the city departments featured in the case. Data provided in exhibits provides a vehicle for reinforcing the output/outcome distinction-and the tendency of public sector agencies to see outputs as an end in themselves. HKS Case Number 1647.0

Companywide incentives often produce disappointing results; individuals assume they will receive rewards regardless of their efforts. But at Continental, such a program resulted in more efficient employees and more timely flights. Here's how the airline did it.

Media companies have used digital rights management to protect their copyrighted materials from infringement. These technologies may also help companies shield proprietary information from digital attacks.

Ethical considerations aside, U.S. companies damage their long-term business interests when they turn a blind eye to the "dirty money" that flows through their coffers. Policy strategist Raymond Baker explains why.

Companies should make design and manufacturing decisions with eventual recycling and reconditioning of their products in mind. Here are the five key activities for establishing a reverse supply chain.

In response to growing public criticism of the way health maintenance organizations handle behavioral (mental) health problems, public officials in Philadelphia propose a dramatic initiative: a new public agency to replace what had been a privately-run system, albeit supported by public Medicaid funds. But would this be a better way to ensure that some of the city's most deeply-disturbed residents-many with drug, alcohol, and psychiatric problems, many among the ranks of the homeless-get the care they need?

This case introduces the story of RedMed, the leading provider of sleep apnea devices. The company, founded by Dr. Peter Farrell and Dr. Colin Sullivan (the device's inventor) in Australia, quickly became international. The company set up a second headquarters in San Diego and soon was selling devices in Europe, Asia and the Americas, in addition to its "home" market. The case addresses the various strategies the company followed to establish a position and gain leadership in its various international markets.

George Caldwell, cofounder of Advaark, a cutting-edge ad agency, was listening hard to his biggest client, John McWilliams, CEO of GlobalBev. McWilliams ran a multibillion-dollar holding company for an assortment of food and beverage brands but was giving credit to Advaark for his latest product line. "We were completely blindsided by this whole 'energy drink' craze," McWilliams was saying, clearly delighted that Advaark had steered his company into the business. Then he enthused, "I'd love to get your thinking about our snack lines." "Oh, no," George thought. He hadn't realized that his partner, Ian Rafferty, had made this foray into strategic consulting. Traditionally, their agency focused only on the creative execution of ad campaigns. In fact, they'd disagreed before about whether it was wise to follow customers' needs into areas where they had no skills advantage. George thought Advaark should stick to its core competence. Ian saw a source of easy revenue and an enhanced offering to clients who, he claimed, wanted one-stop shopping. The potential was appealing, but for George, it hardly outweighed the downsides. They'd risk alienating the strategy companies that now referred clients to Advaark. They'd need to recruit or develop new kinds of talent and create a methodology and training. George was just deciding to nix the expansion when a chance meeting with a former client made him pause. She'd heard about GlobalBev's success and wanted the same kind of help. Eager to win back a lapsed account, George was tempted. Should Advaark meet more of its customers' needs by expanding its services or stay focused on what it does best? In R0202A and R0202Z, commentators Gordon McCallum, John O. Whitney, Roland T. Rust, and Chris Zook weigh in on this fictional case.

The ponderous U.S. Postal Service transformed itself into a competitive business--for a while. By 1999, the agency had recorded four years of surpluses totaling more than $5 billion and was crafting a strategy for success in the new economy. In a symbolic victory, the agency's own Lance Armstrong won his first Tour de France. Eighteen months later, the Postal Service was struggling to stay afloat. The tragic events of September 11--and those that followed--only exacerbated the situation. How did such an optimistic scenario turn sour so quickly? Robert Reisner, the Postal Service's former vice president for strategic planning, recounts what it felt like to see the turnaround stall, and he offers four lessons on how to prevent change initiatives from faltering. The author offers some general insights into how an organization can keep a turnaround on track: Don't miss your moment. Precious momentum is lost when you fail to capitalize on fleeting market opportunities or high morale within your organization. Connect change initiatives to your core business. Promising programs can wither if they are not integrated into your mainstream operations. Don't mistake incremental improvements for strategic transformation. Operational success can blind you to the need to reinvent the business. Be realistic about your limits and the pace of change. Raising expectations that can't be met, at least at the moment, can undermine changes that are achievable.

Last fall, the United States was brutally thrust into a new and dangerous world. As the twin towers of the World Trade Center collapsed and the Pentagon burned, the horrible reality of terrorism seared the American consciousness. It touched more than the victims and their families; everyone who sat transfixed before the horrific images on TV lived through the trauma. In a sense, we were all eyewitnesses, and we must all cope with feelings of anger, stress, and anxiety. That poses a huge immediate challenge for business, because it is largely in the workplace--where we spend so many of our waking hours--that we will confront these emotions. What responsibility does a company bear for the mental well-being of its workforce? If companies help employees deal with depression and anxiety in the wake of terrorist acts, doesn't that put mental health care on the business agenda? To answer these questions, HBR senior editor Diane Coutu talked with Dr. Steven Hyman, the former director of the National Institute for Mental Health. In this interview, he suggests that September 11, 2001, may come to be seen as a tipping point--the moment when managers started to think about dealing with mental health issues on a regular basis.

Managers will tell you that the resource they lack most is time. If you watch them, you'll see them rushing from meeting to meeting, checking their e-mail constantly, fighting fires. Managers think they are attending to important matters, but they're really just spinning their wheels. For the past 10 years, the authors have studied the behavior of busy managers, and their findings should frighten you: Fully 90% of managers squander their time in all sorts of ineffective activities. A mere 10% of managers spend their time in a committed, purposeful, and reflective manner. Effective action relies on a combination of two traits: focus--the ability to zero in on a goal and see the task through to completion--and energy--the vigor that comes from intense personal commitment. Focus without energy devolves into listless execution or leads to burnout. Energy without focus dissipates into aimless busyness or wasteful failures. Plotting these two traits into a matrix provides a useful framework for understanding productivity levels of different managers. This article will help you identify which managers in your organization are making a real difference--and which just look busy.

In this essay, business thinker Peter Drucker examines the changing dynamics of the workforce--in particular, the need for organizations to take just as much care and responsibility when managing temporary and contract workers as they do with their traditional employees. Two fast-growing trends are demanding that business leaders pay more attention to employee relations, Drucker says. First is the rise of the temporary, or contract, worker; 8 million to 10 million temp workers are placed each day worldwide. And they're not just filling in at reception desks. Today, there are temp suppliers for every kind of job, all the way up to CEO. Second, a growing number of businesses are outsourcing their employee relations to professional employee organizations (PEOs)--third-party groups that handle the ever-mounting administrative tasks associated with managing a company's employees. Temps and PEOs free up leaders to focus on the business rather than on HR files and paperwork. But if organizations outsource those functions, they need to be careful not to damage relationships with their people in the process, Drucker concludes.