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  • MyT Brewer (A)

    Amit Kasliwal was a participant of the Post Graduate Program for Executives at the Indian Institute of Management, Ahmedabad in 2013 when he came up with an idea of a tea-brewing machine. Kasliwal conducted a survey to understand the tea-brewing machine industry and needs of the market and subsequently started working on prototypes for the same. He formally set up his company in 2015 and started developing a Minimum Viable Prototype (MVP). Joined by co-founders Harvinder Rajput and Saurabh Borah, he branded his prototypes as MyT Brewer. In December 2016, the start-up ran out of resources. The dilemma for Kasliwal and his team was whether to continue working on an improved prototype or enter the market.
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  • MyT Brewer (B)

    Kasliwal and his team had been working on prototypes for a tea-brewing machine since 2013. After running out of funds, they decide to introduce the latest prototype in the market and test it for user experience. After receiving feedback from customers and observing them interact with the machine, they started designing an improved product. They faced the dilemma about the best way to go about growing their revenues.
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  • Innovation at Moog Inc.

    This case focuses on the challenges of incentivizing innovation within Moog, an engineering company based in New York state that designs and builds guidance systems for space, air, and land-based travel. The case enables students to grapple with the challenges of using compensation to motivate and incentivize employees to create commercially successful innovations. Thick culture motivates employees to innovate in unique ways that money cannot. Students analyze the ways in which Moog's unique culture and current incentive systems successfully, and unsuccessfully, drive innovation, considering Moog's specific challenge of commercializing and scaling innovations. Throughout the discussion, students will understand the ways in which incentivizing innovation is a structurally challenging problem within large companies. Incentivizing innovation differs from incentivizing other types of performance, and students should realize that money alone cannot drive innovation because of the challenges of measuring performance, especially given the long time horizons and the fact that innovation necessarily involves risk and uncertainty.
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  • Why Every Leader Needs to Worry About Toxic Culture

    New research based on MIT SMR's Culture 500 and employees' Glassdoor ratings of their employers identifies the five most common elements of toxic workplace cultures as disrespectful, noninclusive, unethical, cutthroat, and abusive. The authors discuss how unhealthy work environments negatively affect both employees and their employers and how organizations stand to benefit when they identify and address toxic elements in their cultures.
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  • Richard Henkel GmbH: Growing Profits, Not Sales

    Based in southern Germany, Richard Henkel GmbH was a manufacturing firm focused on its triple-bottom line rather than on its sales turnover. Driven by its sustainability ethos in both its products and its manufacturing processes, it saw itself as a champion of a post-growth, sustainable economy. The case pivots on co-managing director Susanne Henkel's decision concerning a lucrative sales order: the order would place significant stress on its existing steady-state manufacturing operations and potentially compromise its sustainability performance. In deciding whether to accept the order, Henkel had to confront a pivotal question: How much growth was necessary and sustainable, and how much was too much?
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  • NorLand: The 500-50-25 Ambition

    NorLand Limited (NorLand) was a construction company based in British Columbia, Canada, with operations in Alberta, British Columbia, Quebec, and the United States. Having grown primarily by acquisition, the company was moving toward an ambitious goal: to achieve CA$500 million in revenues and CA$50 million in net operating income (NOI) by 2025-the 500-50-25 goal. The main questions facing Dave Reynolds, NorLand's chief executive officer (CEO), and his leadership team revolved around not only expanding the business to achieve this target but doing so sustainably, while giving NorLand's business units the latitude and freedom that had drawn them to join NorLand in the first place.
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  • CavinKare's Indica Easy: Launching Shampoo Hair Colour

    In September of 2017, CavinKare Private Limited was faced with a tough decision about how to continue its growth in the personal care products industry. The company had been successful in the hair colour market in India, particularly in the southern regions of the country. CavinKare's success was largely due to their focus on research and development and innovation. The hair colour market showed room for growth, and CavinKare wanted to make sure that they capitalized on its potential. There were three options before the company: stay with their existing products and markets, expand their existing products into new markets, or create innovative new products. To make the decision, CavinKare had to consider many factors, including consumer behaviour, new product development, marketing strategies, and trade partnerships. Only by considering all of these things together would the company have an answer to its question: what was the best option for growth?
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  • Marathon Petroleum and Southwest Detroit: The Intersection of Community and Environment

    Environmental racism describes the unequal burden of environmental hazards placed on disadvantaged communities through systems, policies, and practices. In such a situation, these people disproportionately live close to sources of toxic waste-what are referred to as Locally Unwanted Land Uses (LULUs) such as sewage works, mines, landfills, power stations, major roads, and other emitters of airborne, earth, and water pollution-and suffer from greater rates of health problems, as a result. More than a quarter of Marathon Petroleum's 13 refineries are located in minority-majority communities. Marathon Petroleum's Detroit refinery is located in the ZIP code 48217, where around 80% of residents are Black, 12% are Hispanic, and over 40% are considered to be in poverty. These residents also have higher rates of asthma, heart diseases, and lung cancer than in most other ZIP codes in Michigan. This case places students in the role of fictional character Riley Novak, Marathon Petroleum's chief environmental officer, to examine the company's history with environmental racism, especially in Detroit, and the proposed solution-the Property Purchase Program.
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  • Enhancing the Sustainability DNA of Singapore's Gardens by the Bay through Induction Training

    As Singapore's national garden and tourist attraction, Gardens by the Bay (GB) had succeeded in developing the necessary physical infrastructure to showcase innovative sustainability initiatives to visitors. As it embarked on the next phase of its sustainability journey, GB sought to enhance its sustainability DNA. It recognised that every new and existing employee has an important role to play, and now faces the challenge of how to further engage staff and get them on board this journey through effective induction training. This case examines the challenges of integrating Singapore's new Green Plan into GB's sustainability agenda with special reference to its induction training approach. The United Nations Sustainability Development Goals and the environmental, social and governance parameters can serve as a guide for integrating relevant sustainability content into the induction curriculum. Like other for-profit and non-profit organisations combating climate change, GB must determine how best to impart respective competencies to its internal stakeholders. Through the case, students will learn to appreciate sustainability-related challenges and develop induction training solutions that can be applied by GB's human resource team in support of the overall mission and vision of the organisation. The case can be used in both undergraduate- and graduate-level courses on sustainability management, business management, environmental management and human resource management.
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  • Hai Sia Seafood: A Traditional Business's Journey of Innovation and Digitisation

    Set in May 2021, this case describes the journey of transformation Hai Sia Seafood (Hai Sia), a Singapore-based seafood company, embarked upon five years earlier. Hai Sia, a family business established forty-five years earlier, supplied high quality, fresh, and processed seafood at competitive prices for domestic consumption in Singapore. However, the seafood processing industry in the city-state, including the port, was woefully backward. Hai Sia operated a manual processing plant that was twenty years old, and relied completely on labour intensive work processes, even though digitisation was on the rise in the country and consumers were increasingly migrating online in their buying behaviour. The company faced many challenges such as quota constraints on the number of foreign workers it could hire, inconsistency in quality due to human error, low productivity, and more importantly, the changing profile of its customer base. Hai Sia undertook many steps to transform its operations, including plant renovation and automation, digitisation of work processes, expansion into e-commerce, launch of a consumer brand, and product development for the retail market. The results were promising and the business grew from 1800 tons in 2015 to 2500 tons in 2020. However, the considerable corresponding investments to support these initiatives had adversely impacted the company's profitability. Ang Junting, the deputy director, knew that if he were to spend more time and resources in modernising the business, the senior management would need to be convinced about the returns that these investments would eventually bring. Moreover, he wondered if going forward, a similar business model that centred on automation, upskilling, training, and consumer retail could be successfully replicated in the neighbouring Southeast Asian economies.
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  • Stock options, restricted stock, salary, or bonus? Managing CEO compensation to maximize organizational performance

    CEO pay has gone through remarkable changes over the past two decades. The most striking new features have been the increased use of stock options in the early 2000s, and of restricted stock since then. Both forms of stock-based compensation are intended to resolve the agency problem that occurs when CEOs do not act in the best interests of stockholders, but each has its advantages and limitations. In this instalment of Organizational Performance, we discuss the history of their use and similarities and differences between the two, and argue that both are often overused. Bonuses based on strategic goals, on the other hand, may be underused. We conclude with a contextual approach to guide boards of directors in making choices among the forms of CEO compensation--stock options, restricted stock, salary, and bonus--to incentivize CEOs to work toward maximizing organizational performance. Briefly, stock options are most appropriate for growth firms, and restricted stock for stable firms. Both forms of stock-based compensation are more appropriate for new than for long-tenured CEOs.
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  • Unpacking humility: Leader humility, leader personality, and why they matter

    Humility has attracted increasing attention in discussions of leadership given the positive effects that humble leaders can have on team and firm performance. In spite of what we know about the favorable outcomes of leader humility, we do not know much about how personality influences humble behaviors. How is leader humility related to personality? How can leaders develop humility? In this article, we look at how the personality factors of Conscientiousness, Agreeableness, Neuroticism, Openness to Experience, and Extraversion lead to specific humble behaviors: self-awareness, appreciation of others, low self-focus, teachability, and self-transcendent pursuits. We find that the personality mix of Conscientiousness, Agreeableness, and Openness to Experience form a substantial base for developing leader humility. At the same time, a humble leader can be an introvert or an extrovert, and can demonstrate different degrees of emotional stability. We offer recommendations and a behavioral inventory of leader humility that can be used by leaders and by organizations to recruit for and promote humility, to engage in behavioral modeling and coaching, and to create interventions to develop leader humility.
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  • Taking in the good: How to facilitate savoring in work organizations

    Recognizing, enhancing, and appreciating positive experiences in our lives, also known as savoring, has many benefits. Research on savoring suggests that practicing savoring is linked to positive outcomes, such as increased happiness and general well-being. Organizations should be aware of the positive implications of practicing savoring and should seek to develop savoring norms, as this can contribute to organizational success. This article discusses the savoring of positive experiences and its application in the workplace. Specifically, this article will provide an overview of strategies aimed at enhancing savoring, as well as past research findings that highlight the utility of these strategies. Different barriers and solutions to savoring are discussed, in addition to the importance of the context in cultivating savoring norms in the workplace.
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  • Make product placement work for you: Get less exposure

    Expenditure on product placement has grown faster (170%) than on advertising (15%) over the past 10 years, but some evidence suggests that the return on investment has been declining. For the well-known, fast-moving consumer goods/consumer-packaged goods (FMCG/CPG) food brands typically placed in local TV programmingd--the context of this article--the management problem of overfocusing on brand exposure hinders gaining brand choice, the ultimate strategic goal of marketing. Managers' preconditioning, ease of measuring, and assumptions about the value of exposure contribute to their subtle placements becoming blatant or in other problems, as when other promotional devices, like a television commercial or program sponsorships billboard, get bundled into the same TV episode as the company's own product placement. The higher brand exposure gained can evoke negative mental outcomes in consumers, weakening influences on brand choice. An experiment with a large sample of grocery shoppers supports such an outcome. More strategic value can also be gained from product placements in general by their use longitudinally, in-between campaigns of TV commercials, as an instructive tool and through normalizing a brand's role in a consumer's life. We provide eight checkpoints for marketers to consider when planning to use product placement to gain value for their brands.
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  • Thinking strategically about blockchain adoption and risk mitigation

    Blockchain technologies are quickly changing the competitive business landscape. Companies need to think strategically about how best to prepare for a future in which they might systematically enhance value and unleash new value using blockchain. In this article, we address how cooperating companies jointly create unique value with blockchain technology, the risks they face along the way, and how they can mitigate those risks. We briefly identify three different reasons a company might adopt blockchain: to enhance value creation, to strengthen existing value ecosystems, or to create new value ecosystems. Then, we identify three strategic risks of blockchain adoption as they relate to business issues, legal issues, and technological issues. Finally, we highlight four different strategic maneuvers for minimizing these risks. The strategic maneuvers include the all-industry approach, the walled-garden approach, the many-gardens approach, and the options approach. We provide prescriptive advice to managers on how to strategically think about blockchain adoptions, how to identify the underlying risks, and how to consider strategic approaches to mitigate their adoption risk.
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  • Building trust: How leaders can engender feelings of trust among followers

    Trust has long been recognized across cultures, industries, and organizations as a key component of social exchange. Yet in many communities and organizations throughout the world, there is a growing trust deficit. In this article, we explore what leaders can do to generate trust among the individuals within their organizations to help facilitate better relationships and positive outcomes for both individuals and organizations. More specifically, we present a qualitative study in which semistructured interviews with employees at an assisted-living care facility highlight two ways that leaders can build trust within their organizations: (1) by demonstrating humility in their communication and (2) by exhibiting compassion in their behavior. We further highlight two characteristics, authenticity and proactivity, that can help leaders increase the effectiveness of these actions. By making these behaviors part of how they lead, leaders and managers can more successfully generate feelings of trust among the individuals within their organizations and help their organizations to maintain and strengthen their competitive advantage.
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  • High-compliance work systems: Innovative solutions for firm success and control of foreign corruption

    Enforcement of laws that prevent corrupt international business dealings has recently intensified. Firms have paid record-setting fines of hundreds of millions of dollars, and individuals have been tried and convicted. This escalating situation demands effective action from business leaders. Compliance has become increasingly complicated as more countries have enacted antibribery laws. To address this situation, I identify four root causes of corruption and present innovative real-world examples of solutions. Combinations of these solutions can be crafted to create high-compliance work systems (HCWSs) to avoid corruption. Firms can formulate their own unique, innovative, and dynamic models to achieve high levels of firm success while also avoiding corruption. These models go beyond trade-off thinking, which suggests that compliance must be exchanged for performance. Pivoting away from such trade-off thinking enables innovative solutions to manage corruption risks and offers firms a sustained competitive advantage over their peers.
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  • Non-compete agreements: How fiduciary duty and covenants not to compete restrict managers' mobility

    Companies spend time and money training employees; in the case of a merger or acquisition, they spend resources such as cash, stock, and debt. It makes sense, then, that they do not want an employee to take the expertise the company underwrote to a competitor. Thus, employment contracts will often include noncompete clauses--sometimes known as covenants not to compete--which state that the employee cannot move to a competitor for a certain period of time. Though not all employees have the heightened fiduciary duty of board members and officers, they frequently have signed agreements that, at least on paper, restrict their employment mobility. Not only have officers and board members often signed such agreements as well, but they also have fiduciary duties further restricting their new employment plans. In decades of teaching courses in the legal environment of business as well as in business ethics, no topic flummoxes students more than this one. After all, in a free country, a person should be able to work where they wish, right? How can such restrictions be fair? Legally and ethically, this is a complicated area and one in which the old lawyer's answer--it depends--is true. This article provides some parameters for employees and employers to know when fiduciary duty precludes certain employees from moving to a new company, including when those are legal in what ways they are fair.
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  • Automating Bureaucracy with Python: The Case of the Springfield Bail Fund (A)

    Bail funds, organizations that collect money to post bail for community members who are eligible for cash bail to stay out of jail until the time of their trial, have grown throughout US history, buoyed by major civil rights events such as the Red Scares, Civil Rights movements, Vietnam War Protests, among others. Given the volume of potential community members who would benefit from bail fund assistance and the plethora of defendant information required to process the bail payments, such funds like the Springfield Bail Fund face a logistical and management challenge.
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  • Automating Bureaucracy with Python: The Case of the Springfield Bail Fund: Python PowerPoint Files (D)

    Bail funds, organizations that collect money to post bail for community members who are eligible for cash bail to stay out of jail until the time of their trial, have grown throughout US history, buoyed by major civil rights events such as the Red Scares, Civil Rights movements, Vietnam War Protests, among others. Given the volume of potential community members who would benefit from bail fund assistance and the plethora of defendant information required to process the bail payments, such funds like the Springfield Bail Fund face a logistical and management challenge.
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