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Conventional wisdom, together with the weight of published management advice, recommends that management teams engage task conflict directly but avoid relationship conflict. Implicit in this advice is the premise that it is indeed possible to separate the task and the relationship aspects of a business conflict. Argues that this separation is not always possible for management teams. When teams discuss "hot topics," substantive disagreements (task conflicts) tend to trigger negative attributions about others' motives or abilities (a key element of relationship conflicts). When this happens, most managers suppress their true thoughts, thus avoiding genuine discussion. Yet, when interpersonal attributions are suppressed, they tend to leak into the business conversation anyway, such as in the form of implied accusations or aggravated tones of voice. These dynamics are virtually inevitable, even when managers try hard to avoid them. Making a distinction between "hot" and "cool" topics can help clarify when avoiding discussion of relationship conflict in management teams is feasible and when it's not. In addition, management teams facing hot topics need to learn to handle relationship conflicts productively, despite the heightened emotions and interpersonal tensions associated with them.

On February 1, 2003, the world watched in horror as the Columbia space shuttle broke apart while reentering the earth's atmosphere, killing all seven astronauts. Some have argued that NASA's failure to respond with appropriate intensity to the so-called foam strike that led to the accident was evidence of irresponsible or incompetent management. The authors' research, however, suggests that NASA was exhibiting a natural, albeit unfortunate, pattern of behavior common in many organizations. The foam strike is a prime example of what the authors call an ambiguous threat--a signal that may or may not portend future harm. Ambiguous threats differ from threats with obvious causes--say, a fire in the building--for which the response is clear. They also differ from unmistakable threats that may lack straightforward response paths (such as the frightening oxygen-tank explosion aboard Apollo 13). However, when the warning sign is ambiguous and the threat's potential effect is unclear, managers may choose to ignore or discount the risk. Such an approach can be catastrophic. Firms that do a good job of dealing with ambiguous threats do not improvise during a crisis; rather, they apply a rigorous set of detection and response capabilities that they have developed and practiced beforehand. In this article, the authors outline how to put such capabilities in place long before a crisis strikes. First, companies need to hone their teamwork and rapid problem-solving skills through practice. Second, they must learn to recognize weak signals, amplify the threat, and encourage employees to ask disconcerting "what if" questions in a safe environment. Finally, they should explore possible responses to threats through quick, low-cost experimentation.

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For the past 18 months, Mandy Cabot had worried that the shoe business she had built into a thriving operation with $90 million in annual revenue and over 110 employees might instead be a "house of cards." The management philosophy that had guided Dansko's growth, "home schooling"--taking young energetic employees with little business experience and mentoring them--seemed ill-suited for the next phase of growth. Equally as precarious was the fact that with few exceptions, none of the senior management team had any prior experience in the footwear industry. So when a well-respected industry leader asked to talk about a merger, Cabot had to admit that with her "crisis of confidence," it might just be time.

Explores ways in which service firms can influence the behavior of their customers. Drawing from research on employee motivation and applying it to customer motivation, the note describes two levels of managerial control: instrumental control, which shapes behavior through the use of rational incentives, and normative control, which engages human emotions, motivating through the near-universal desire to be perceived in a positive light.

Supplements the (A) case.

Explores the challenge of managing large-scale organizational change at Simmons, an old and established company that manufactures and distributes mattresses. The new CEO, Charlie Eitel, hired to turn the organization's performance around, considers whether to implement an untraditional training program that includes outdoor experiential team-building activities as a central element of his change strategy. Asks participants to consider the decision of investing in the expensive training program following the loss of the three largest customers--retailers that together had contributed a third of Simmons' revenues. One central theme is the role of leadership in engaging and motivating employees to implement changes that improve product quality and operational efficiency and cost.

Describes the successful turnaround of the restaurant company Yum! Brands after its spin off from PepsiCo and covers how the company's leadership planned and executed on virtually every dimension of the employee experience. The main dilemma centers on what the company should do in terms of multibranding--housing two brands in one physical location.

Focuses on whether world-renowned product design firm IDEO's new customer service fits with the firm's strategic position and organization capabilities. Over the course of IDEO's 13-year history, an increasing share of revenues are a result of "Phase 0" projects--preliminary strategic explorations of future product possibilities for various client firms. Describes a specific Phase 0 project in order to explore the challenge of managing these strategic, intangible services in the context of IDEO's successful history of generating award-winning tangible product designs. A team at IDEO's Boston office worked with mattress manufacturer Simmons to discover unmet customer needs and identify new product line opportunities. Describes the challenges and questions facing the Simmons project team as well as critical and operational questions facing IDEO. Examines these issues through the eyes of the head of the Boston office, who wonders how to evaluate Phase 0 projects.

Innovation is a rallying cry for today's organizations. Yet encouraging both innovation and the superb execution of routine work concurrently runs the risk of sending a mixed message that can end up accomplishing neither. The author defines the concepts of 'psychological safety' and 'evaluative pressure' and their effects on employees' willingness to experiment, and shows how creating a consistent work environment containing psychological safety can reduce employees' fear of failure and promote experimentation. She presents findings that creativity is related to organizational culture, reward systems, supervisory encouragement and trust.

Describes a small, luxury retail chain's operational sophistication achieved through the use of technology and "high-touch" customer service. A family-run business, Mitchells has built its success with a customer service strategy known internally as "hugging." The term is deceptively simple. The firm's true success lies in its blend of a warm, other-oriented corporate culture, sophisticated information technology, and an effective family business structure. It is currently considering further expansion for future generations. A rewritten version of an earlier case.

Describes the 16-day final mission of the space shuttle Columbia in January 2003 in which seven astronauts died. Includes background on NASA and the creation of the human space flight program, including the 1970 Apollo 13 crisis and 1986 Challenger disaster. Examines NASA's organizational culture, leadership, and the influences on the investigation of and response to foam shedding from the external fuel tank during shuttle launch.

The managers of British business forum planner, Richmond Events, are struggling to expand their conference offerings into new territories. At the same time, they are trying to decide how product managers, who are critical to event success, should be hired, trained, managed, and retained. There is a philosophical disagreement between managers about how to take Richmond Events to the next level. Founder Mark Rayner wants to stay the course and give project managers as much autonomy as possible. He asserts that autonomy leads to priceless innovation and argues that normative controls will prevent product managers from going too far astray. Marketer Deborah Parkes wants to streamline the production process and build hierarchy into the system to promote consistent service quality. As management considers leveraging its service platform and expanding into Asia, these working tensions intensify.

This team-based exercise uses an educational tool called "The Electric Maze," developed by Interel Corp., to teach insights about the social and psychological challenges facing employees who must engage in collaborative learning. The tool is a grid-patterned rug with 54 squares implanted with electronic programmable sensors that beep when pressure is applied. The instructor programs the maze in advance to create a pathway of nonbeeping contiguous squares from one side to the other. Because students have no information about how to traverse the maze correctly, experimentation--a systematic iterative process of trial and failure--is needed to develop a solution. Provides instructions for students participating in the exercise and should be distributed only at the beginning of the simulation.

This short fictional case forms the basis of a team decision-making exercise. The case, inspired by a real decision facing a major telecommunications company, describes a cross-functional management team convened by the CEO for the purpose of developing a recommendation about whether to conduct a full-scale launch of a new high-speed Internet access service. In the class session, groups of six participants are asked to conduct team meetings to arrive at a consensus about the launch decision--drawing from the information contained in the shared case and from privately held information contained in individual role sheets provided separately to each member. Although different team members hold very different perspectives about the launch, teams can arrive at thoughtful recommendations by working together to share their knowledge.

Accompanies The BCPC Internet Strategy Team: An Exercise and provides unique background information on one of the team members.

Accompanies The BCPC Internet Strategy Team: An Exercise and provides unique background information on one of the team members.

Accompanies The BCPC Internet Strategy Team: An Exercise and provides unique background information on one of the team members.

Accompanies The BCPC Internet Strategy Team: An Exercise and provides unique background information on one of the team members.