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Describes the issues surrounding the funding of a centralized research service that supports two related divisions. The company has a very decentralized and financially driven culture, and the centralized service is used unequally, setting up a conflict. A rewritten version of an earlier case.

Hewlett-Packard's Greeley Hard Copy Division is the market leader in the production of desktop flatbed scanners for personal computers. The division has been working to develop a portable scanner product for the past five years with mixed results. The new general manager, Phil Faraci, faces mounting pressures in the flatbed scanner markets, but is also presented with a new technology that has the potential to be a breakthrough for portable scanners. Faraci must decide whether or not to pursue the new portable technology, and if so, how to structure the organization to make product development successful where it has failed in the past.

Supplements the (A) case.

Supplements the (A) case.

Describes the course pursued by Hayek, Thomke, and others in the formation of SMH. Discusses the new strategy and its implementation, charting the dramatic recovery of the large Swiss watchmakers. Ends with an exploration of Hayek's efforts to build on SMH's successes.

The Swiss watch industry has been devastated by new entrants from Asia in the low- and mid-priced watch segments. Japanese and Hong Kong firms have used quartz technology to lower costs dramatically. Nicolas Hayek, president of a Swiss consulting firm, is asked to help design a new strategy and structure for the two Swiss giants, ASUAG and SSIH, which have decided to merge. Ernst Thomke, managing director of ASUAG's manufacturing arm, also figures prominently. The case outlines options for the positioning of the new, inexpensive Swatch brand as well as a number of other flagship Swiss brands. Focuses on alignment of strategy with the structure of the new company. Topics to address include the management of change and the formulation of a detailed action plan to make the new company succeed.

Supplements the (B) case. A rewritten version of an earlier supplement.

Focuses on the recommendations and implementation strategy suggested by the organizational development group for the division's problems. A rewritten version of an earlier case.

The Micro-Electronic Products Division of SMA has financial and organizational problems. Conflict and lack of coordination exist between functional groups. Employees do not have a sense of direction and morale is low. The cause of these problems is found in a change in business environment followed by change in organization and management. A rewritten version of an earlier case.

Focuses on Pierre Urech's efforts to change the division structure at Ciba-Geigy to facilitate the marketing of the new product. Details the relationships Urech cultivates and the strategy he pursues as "product champion." Also describes the restructuring of the research department into small teams to improve product development. Other topics include the marketing of the new product in different regional settings, the emergence of a "dominant design," and a slow-down in subsequent innovation.

Covers the history of Hermes, a large telecommunications and network equipment company, as it grows from a single business firm to a diversified firm from 1980-95. Examines the use of entrepreneurial subsidiaries for product development and fast growth. Other issues include the challenges of managing ambidextrous organizations and the problems a CEO faces in keeping control of fast growing divisions. A rewritten version of an earlier case.

Organizations evolve through periods of incremental or evolutionary change punctuated by discontinuous or revolutionary change. The challenge for managers is to adapt the culture and strategy of their organizations to its current environment, but to do so in a way that does not undermine its ability to adjust to radical changes in that environment. They must, in other words, create an ambidextrous organization--one capable of simultaneously pursuing both incremental and discontinuous innovation.

In ever more turbulent environments, executive leadership matters as never before. Organization speed, flexibility, and the need to execute discontinuous change require sharpened leadership skills. Charismatic leaders are important. These relatively rare leaders provide vision, direction, and energy for their firms. However, charisma is never enough to build competitive, agile organizations. Charismatic leadership must be bolstered by institutional leadership through attention to details on roles, structures, and rewards. Further, as most organizations are too large and complex for any one executive or senior team to manage directly, responsibility for managing in turbulent environments must be institutionalized throughout the management system.