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This note explores the concept of a "moral compass" for making difficult decisions in leadership roles. It argues that the standard view of a moral compass as a simple, internal guide is inadequate for complex situations. Instead, it proposes that our true moral compass is our personal moral wisdom, which helps us answer four fundamental questions when facing hard choices: What really matters? What is my responsibility? What will work? And what can I live with as a person and professional? Ultimately, we learn what is right by deciding what is right. Our final, elusive moments of decision resemble black boxes. Because we don't know what happens inside them, it becomes especially important to personally answer the four fundamental questions and shape what goes into the black boxes.

CZM Foundation Equipment (CZM) was a manufacturer of foundation drilling rigs founded in Brazil in 1976. The company set up a subsidiary in the USA in 2012, which was so successful that it turned into the headquarters. Twelve years later, CZM's executives were considering expansion in Europe, which could provide CZM with opportunities to enhance the design and development of its machines, improve the efficiency of its global supply chain, and open the door to new markets. It already had an engineering department in Italy and relationships with suppliers in Italy, France, and Germany. However, CZM executives were concerned about the highly competitive environment in Europe, which could make establishing a European subsidiary a risky choice. They also faced two related decisions: a) which country to choose, and b) which entry strategy to use, either a wholly owned subsidiary or an equity alliance with a partner.

Could rice become as crucial as petrol in the fight against climate change? In 2023, Nguyen Duy Thuan, General Director of Loc Troi Group (Loc Troi) Vietnam, was sceptical. His company, the largest rice producer in the country, faced a pivotal moment in its journey. Following a successful pilot program involving 1,000 farmers, the company had started scaling sustainable rice production (SRP). Sustainable rice had much lower emissions and used fewer resources than traditional rice production, which accounted for 12% of global methane emissions and significantly threatened the climate. The pilot had reduced pesticide use by 12%, water use by 25%, greenhouse gas emissions by a third, and flooding and straw burning by using organic treatments. It had also lowered production costs and increased profit margins by 18%. But despite such demonstrable benefits, Loc Troi continued to struggle to convince farmers to grow sustainable rice, which constituted only 5% of its total export volume, due to the time-consuming and costly new practices. Scaling sustainable rice required large investments and without government grants, could be financially draining for the company. Loc Troi's other businesses, like vegetable seeds and fertilisers, were also profitable, so over-investing in rice could hinder their growth. Thuan pondered on how to scale sustainable rice and tap into future demand with Loc Troi's expertise.

Spreadsheet supplement for case 225023.

By the early 2010s, Keurig Green Mountain (KGM) had lost the momentum that had made it the name in at-home coffee brewing in North America. Following a series of product missteps, negative media scrutiny, and ongoing challenges to its partner relationships, in late 2015, the company was acquired by JAB Holding Company. Now under private control, new CEO Bob Gamgort led efforts to re-accelerate growth and increase penetration past the Keurig brand's respectable yet plateauing 20 million household mark. In just over a year, he led a successful turnaround, salvaging fractured partner relationships, upping productivity, and reducing costs. He and a handful of key executives thus set their sights on new growth in the Fall of 2017. Four options emerged: 1) take the company public again through an IPO, 2) set out for greater global expansion, 3) combine with another coffee business to become a larger player in North American coffee, and 4) diversify beyond coffee through a "pure play beverage" strategy. Gamgort and his team must decide: what is the right strategy to return Keurig to growth?

In 2023, RMZ Corporation ("RMZ") a large family-owned real estate firm based in Bengaluru, India, announced plans to transform from a commercial real estate developer to a diversified alternative asset owner. Over the next 5 years, RMZ looked to grow its real estate portfolio from $13 billion to $40 billion and generate an additional $15 billion in asset growth from its new infrastructure business. Some of this expansion was to occur in markets outside of India. Were RMZ's goals achievable? What would it take to execute this plan? What were the risks?

The case reveals how Porsche has become one of the world's leading car companies. Central to Porsche's growth strategy is creating great products, including its legendary 911 Carrera sportscar, and offering innovative customer experiences. As the automotive industry is undergoing disruptive changes, the company's leadership is making changes to its product portfolio and customer experiences.

In January 2024, Mei Lin was appointed as Chief Sustainability Officer of Bamboo Bridge Logistics (BB), a mid-sized logistics operator based in Singapore. Her key task over the next three years is to support the newly-formed sustainability committee that would report to the Board of Directors (BOD). Mei faced significant challenges in weaving environmental, social, and governance (ESG) principles into BB's fabric. She not only had to put in place measures for ESG goals on climate change, but also to link these goals to executive remuneration. She was also aware that the company harboured ambition to become publicly listed on Singapore's stock exchange, the SGX, likely not long after implementing its sustainability initiatives. How could Mei help BB's sustainability committee in selecting the appropriate indicators that reflect the company's commitment addressing climate change challenges, while mitigating the potential negative financial impact? What roles should BB's BOD play to ensure the effective implementation of ESG metrics in executive remuneration, bearing in mind the balance between short-term financial profitability and long-term environmental sustainability?

This technical note describes an important rationalization process called moral disengagement that helps explain why and how people make decisions that stray away from the values they claim to hold. This reading explains what moral disengagement is, how to identify it in the words and rationales people provide to explain their choices, and why it is such a pernicious problem facing leaders. At the Darden School of Business, this technical note has been taught in the second-year "Defining Moments" course, as well as many executive education formats. It would also be suitable for class discussion about making values-driven decisions.

An important metric that plays a pivotal role in marketing is customer lifetime value (CLV). Given the constraint of limited marketing budgets, a company can enhance the return on its marketing investment by strategizing to allocate marketing resources based on the anticipated value of different customer segments. This technical note provides a contemporary explanation for what CLV is, focusing on its conceptual underpinnings and why it matters for marketers. In the digital age, the analysis of CLV has experienced a profound transformation driven by the wealth of available customer data and the emergence of advanced analytics tools, and it continues to evolve. This technical note provides an accessible, intuitive introduction to CLV as applicable in a wide range of scenarios. We recommend pairing this with another note that provides examples of empirical applications of CLV: "Three Empirical Methods for Calculating Customer Lifetime Value" (UVA-M-1056).

This case, which concludes the scenario set up in "Matteo Hill at Drawn, Inc. (A)" (UVA-OB-1293) and "Matteo Hill at Drawn, Inc. (B)" (UVA-OB-1459), reveals the outcome of the heated discussion about recently acquired start-up Drawn, Inc., sharing the raw data from internal pulse surveys.

Set in March 2024, this case asks students to take the perspective of Oli cofounder and CEO Sathish Gangichetty as he approaches an impact investor for seed funding. Oli is an app that draws on artificial intelligence (AI) to improve users' mental hygiene through short daily interactions. The case describes Gangichetty's inspiration for creating the app and provides an overview of the app's features. The case promotes a discussion of the benefits and drawbacks of AI wellness programs at the individual, organizational, and societal levels. A feature that will be a benefit for some stakeholders may be a weakness for others. There is a tension between AI user privacy and organizational or societal safety. Therefore, individuals involved in AI development, implementation, and use must make tradeoffs about which features-and stakeholders-they will prioritize for a given product. This analysis provides a framework for evaluating an AI tool's impact on different stakeholders, and highlights the factors that business leaders must consider when implementing a new AI product in their organization. At Darden, this case is taught in "Minds and Machines," an elective course for second-year MBA students. The course draws on research from psychology and AI to teach students how to responsibly use AI in their future careers as business leaders. The course assesses AI's impact on individuals, organizations, and society, and highlights both the opportunities and the risks involved in AI development and implementation. This case would also be suitable for MBA and executive education courses on leadership and technology, AI and organizational culture, and ethics and technology.

This case, a follow-up to "Quarterly Earnings Report at T-Rex (A)" (UVA-BC-0304), continues the story of fictional company T-Rex Inc., an engineering equipment manufacturer, and its CEO, Maya Hoffman, as the company prepares for the Q2 2024 earnings call. On July 18, 2024, prior to the market opening, T-Rex released its quarterly earnings. Thirty minutes later, at 8:00 a.m., T-Rex's stock was down almost $2 in pre-market trading. Hoffman, the CFO, and the head of investor relations need to manage the earnings call.

Spreadsheet supplement for case UV9009

This quarterly earnings case set is based on a fictional company, T-Rex Inc., an engineering equipment manufacturer that named its first construction machine the T-Rex because its shape was comparable to that of the prehistoric dinosaur. The once-small family company went public in 2010, growing to over 6,000 employees in three offices by 2024. Customers were typically heavy civil construction companies based in the 20 largest cities in the United States. Beginning in 2023, the company had set a strategic objective to sell machines to construction companies in Mexico and Canada. Maya Hoffman, a member of the family that had started T-Rex, had been CEO since 2005. The case is set as the company prepares for the Q2 2024 earnings call. During the first two quarters of 2024, the company had performed well. But there always seemed to be some cause for concern or stress in the run-up to the earnings report. This two-case set creates two potential activities for students: a role-play and a presentation. Depending on the focus of the course in which the set is used, instructors can choose which avenue to follow.

Spreadsheet Supplement for case BAB754

The "How a Luxury Electric Vehicle (EV) Manufacturer Can Leverage Social Listening" teaching case focuses on how a luxury EV manufacturer and brand, namely the Porche Taycan, can use a social listening platform to gain insights on its new EV car models from user-generated content across multiple social sites. The EV market is dynamic and uncertain, and there is a lot of risk for a traditional luxury car manufacturer to enter the EV field. A social listening platform provides real-time social metrics and visuals, including author profiles, influencer profiles, activity, engagement, sentiment, and competitor analysis, to help navigate this uncertainty. The case walks through an analysis using the Nuvi social listening platform on 2022 Porsche Taycan data collected through Nuvi. A competitive analysis is done with Tesla EV models. The case ends by posing questions on what actions a luxury EV manufacturer like the Porsche Taycan can take from using a social listening platform, and what technological and managerial capabilities would be needed to implement such a platform.

Set in 2022, this case describes the challenges faced by Singapore General Hospital (SGH), one of Singapore's leading public hospitals, in managing its bed occupancy rate (BOR) to best suit its patient workload pattern and adhere to the government's guidelines, and describes the evolution of its bed management system (BMS) in response to those challenges. Bed management, although a background activity, plays a central role in the effective running of a hospital. While SGH has adopted new technology and best practices in its BMS over the years, there are still frequent mismatches between the available bed supply and incoming patient demand. One of the reasons is Singapore's growing healthcare demand due to its ageing population coupled with a greater awareness of regular healthcare monitoring in the society, which requires capacity expansion. In addition, given that poor bed management in a hospital incurs heavy costs and adversely impacts everyone from patients to nursing staff, doctors and administrators, there is a need for more effective management of the existing bed supply and implementation of new measures to optimise the burden on hospitals. The Bed Management Unit (BMU) at SGH, recognises that the analysis of the workload of the hospital over the previous five years is critical for making many key decisions, such as capacity expansion and class configuration, patient-bed assignment protocols, and the adoption of innovative healthcare processes for effective bed management and healthcare delivery.

Spreadsheet Supplement for case 117SMU