The Italy-based Moleskine Foundation worked with young adults in Africa and Europe to inspire social change through art and creative projects. Adama Sanneh, the newly appointed CEO of the Moleskine Foundation, faced several challenges: First, he had to make his own mark on an organization that had been shaped by several well-respected Foundation founders and advisors who still remained active on the board. Second, he had to manage the relationship between the Foundation and the Moleskine Company, the Foundation's largest funder. Third, Sanneh had made news as Italy's only Black CEO, but he did not want race to become his defining attribute. Finally, he needed to determine how ambitious he could be with the Foundation's strategy. He and his team held the belief that creativity - a longstanding element of the Moleskine Company identity - could also be a source of social change around the world. Developing a realistic strategy to achieve this goal would be no easy task, and would require support from multiple internal and external stakeholders. The case highlights how individuals manage their identity and set a new strategy when stepping into new leadership roles. In addition, it sheds light on the unique governance challenges that can arise for a corporate foundation associated with a separate for-profit enterprise.
Leaders are responsible for planning and executing actions that advance organizational goals. As individuals gain career experience, they tend to develop and rely on implicit mental models that shape how they go about "getting things done." Without knowing it, most people develop a primary action orientation - analytical, contextual, or relational - that informs their mental map for action. Action orientations can be useful because they inform how you develop a plan, determine where to focus your time and attention, and when to enlist the help of others. However, an overreliance on any one orientation can lead to poor action plans that may derail your ability to execute (especially when operating in a new role or an unfamiliar situation).
After Daniela Riccardi took over as CEO of Moleskine, she determined that the company needed to refocus on its core brand and central organization. With her first formal meeting with D'Ieteren, the company that owned Moleskine, approaching, she needed to decide what her action plan for Moleskine should be.
The case spotlights Kwame Spearman's career-shifting decision to leave a NYC-based consulting job to return to his hometown of Denver, Colorado, and take over an iconic independent bookstore, The Tattered Cover. The case lays out ways Spearman envisions a new approach to retail. It highlights challenges that can face individuals when they step into a substantive leadership role for the first time. It also examines how local businesses respond to significant threats from online and big box retailers.
The ability to communicate an action plan through writing is essential for advancing ideas, earning credibility, and garnering support. Research has shown that leaders who write formal plans are more likely to execute successfully-written plans help members of an organization focus on common goals and the allocation and coordination of resources. Organizations have increasingly required employees to write memos as supplements (or replacements) to presentations (e.g., Amazon's Jeff Bezos and Tesla's Elon Musk banned the use of slides in internal meetings and, instead, mandated "memo-only" policies). Unlike presentations, where information is often listed as bullet points, action-planning memos include more detail and context. They also serve as intellectual assets that can help team members learn from success and failure. This Note explains how to write an effective action-planning memo. It consists of four parts: (1) when to write a memo versus other forms of communication; (2) key components of an action-planning memo; (3) tips for writing a memo; and (4) avoiding common traps. The Note is designed for use by both students and executives. Instructors can assign the Note to help their students develop writing skills needed for classroom assignments. Executives will find it useful for honing their written communication skills.
The (B) case offers a detailed account of Wendell Weeks's innovation strategy at Corning, and how his approach played a critical role in the COVID-19 pandemic. It illustrates the company's philosophy of making long-term investments in promising new technologies and products well before others believed their time was ripe.
This note is designed to introduce students to the fundamental concepts of leading innovation in established organizations. Reinvention is a process whereby organizations respond to changes in the environment that threaten their core business model, technologies, cultural values, and/or operational norms. Reinvention represents a managerial paradox for organizations that have experienced several years of success: leaders must preserve some elements of the business that once made it successful and simultaneously change other elements that, if left unattended, could render the organization obsolete. The Note outlines four elements associated with organizational reinvention: 1) Understanding technology lifecycles and s-curves: What are technology lifecycles and s-curves?; 2) Reinvention by extending existing capabilities: How do leaders extend existing organizational capabilities in response to new technologies?; 3) Reinvention by adopting new capabilities: How do leaders adopt new capabilities in response to new technologies?; 4) Readying your organization for reinvention: How do leaders develop the right mindset and the right team to engage in a reinvention effort? Finally, the Note includes several diagnostic tools that students and executives can use to analyze an organization's readiness for reinvention.
This case asks students to consider how to prioritize goals when placed in a new leadership role. In August 2014, Meredith "Max" Hodges became the youngest Executive Director (ED) in the Boston Ballet's 51-year history. In her first year, she was able to claim several early wins, including key adjustments to ticket pricing, new hires, and updated marketing and box office data analysis. But at beginning of her second year, Hodges received disheartening news-a developer had purchased one of Boston Ballet's school locations and was planning to terminate Boston Ballet's lease. Hodges already had several major projects planned, including a major website overhaul and a revamped performance schedule. However, without a new school location, Boston Ballet's revenue would take a hit. Given Boston Ballet's limited resources and the urgency of the terminated school lease, how should Hodges reprioritize her plans for the upcoming year?
This case examines the leadership challenges associated with maintaining a culture of innovation in established organizations. It asks students to step into the shoes of a leader faced with making several tough decisions about when to invest (or to stop investing) in radical innovation projects. Corning CEO Wendell Weeks, who nearly bankrupted the company in the early 2000s when he overinvested in fiber optics, must initially decide if the company should enter a then-risky deal with Steve Jobs to produce the glass covers for the first generation iPhones. The case then asks students to analyze the Corning's 157-year innovation agenda that started with the development of a bulb-shaped glass encasement for Thomas Edison's new incandescent lamp. In the years that followed, Corning made investments that led to products such as PYREX cookware, fiber-optic broadband cable, LCD television screens, Gorilla Glass, and a recent bet on pharmaceuticals. At the end of the case, Weeks must decide if Corning should continue to invest in a new pharmaceutical packaging product that held enormous promise, but had already cost the company $200 million in R&D and might divert resources and attention from other key business lines.
The Eastman Kodak Company (Kodak) was a name familiar to most Americans. The company had dominated the film and photography industry through most of the 20th Century and was known for making affordable cameras (and the "Kodak Moment") and supplying the movie industry with film. At its peak in 1997, Kodak had a market value of $30 billion. Despite inventing the first digital camera, Kodak stumbled to capitalize on the new technology and by 2011 the company was in Chapter 11 bankruptcy protection. In September 2013, Kodak emerged from bankruptcy as a smaller business-to-business (B2B) digital imaging company. The following March, Jeff Clarke took over as Kodak's new CEO. The company continued to produce and sell film to moviemakers, but Clarke, who needed to reinvent Kodak, wondered if keeping that business line made sense. To some inside the company, film was a "sacred cow" and fundamental to Kodak's identity. In January 2016, Clarke and his executive team traveled to Las Vegas, Nevada, for the annual Consumer Electronics Show (CES) where the company unveiled a prototype of its new Super 8 camera-an analog motion picture camera initially launched in 1965 to shoot home movies-with updated features. Over the course of the four-day event, media and other industry players had overwhelmed the Kodak booth, excited to catch a glimpse of the camera, asking when they could expect to see the Super 8 on shelves. While the business-to-business (B2B) side of the company appeared to be growing, the new Super 8 reflected the culture and identity of a firm originally rooted in film and consumer products. Sentiment aside, Clarke needed to decide if the new Super 8 fit into the company's overall strategy and whether Kodak was focused on the right markets for growth. What was the optimal path to reinvention?
This Reading combines conceptual frameworks and research-based knowledge to provide practical guidance about how to lead organization change. The Essential Reading outlines key choices leaders must make when managing a change and the common traps that can cause a change effort to fail. It is organized into four sections, each building on the last to provide a roadmap for change that is effectively tailored to the organization and the situation: 1) Diagnosis: Why is change needed?; 2) Design: What sort of change is called for?; 3) Delivery: How can change best be implemented? Who will most likely be affected? What skills and support do leaders need as they manage the process?; and 4) Evaluation: How can the impact of the change be assessed and measured? The Essential Reading closes with a brief discussion of how new practices such as crowdsourcing, open innovation, and social media campaigns are speeding up change in many industries and altering change processes. The Supplementary Reading presents four real-world examples of organizational change in companies (Amazon, Lenovo, Salesforce.com, and Boeing) and a brief overview of stakeholder analysis.
Sesame Workshop was transforming in 2016. CEO Jeff Dunn had reorganized and shifted the iconic institution to respond to digital disruption and a consensus culture. This case examines his efforts to turn Sesame Workshop around. It notes Sesame's storied history and the underlying financial troubles that Dunn confronted upon taking over in 2014. It shows how Dunn's leadership changes, increased communication, new partnership deals, and a focus on digital, sought speed, innovation, and accountability to better fulfill Sesame's educational mission. By 2016, Sesame was in the middle of its change, and Dunn contemplated how best to position the organization for success in the future.
Sesame Workshop was transforming in 2016. CEO Jeff Dunn had reorganized and shifted the iconic institution to respond to digital disruption and a consensus culture. This case examines his efforts to turn Sesame Workshop around. It notes Sesame's storied history and the underlying financial troubles that Dunn confronted upon taking over in 2014. It shows how Dunn's leadership changes, increased communication, new partnership deals, and a focus on digital, sought speed, innovation, and accountability to better fulfill Sesame's educational mission. By 2016, Sesame was in the middle of its change, and Dunn contemplated how best to position the organization for success in the future.
By 2016, Count Anton-Wolfgang von Faber-Castell had led the 255-year-old pencil manufacturer Faber-Castell through waves of technological change. The pocket calculator decimated Faber-Castell's slide rule business in the 1970s, and computer aided design technology undermined the company's manual drafting tools in the 1980s. With each new threat the Count had to decide whether to adapt to new technologies, or maintain focus on the company's core products and identity. Analysts continued to ask Count Anton-Wolfgang the same question they had posed to his grandfather: could the company strategy endure in the modern era?
Describes the founding and growth challenges facing Moleskine, an Italian-based consumer products company known for its oilcloth-covered notebooks once used by Ernest Hemingway and Vincent van Gogh. CEO Arrigo Berni and co-founder Maria Sebregondi aim to transform the company from a founder-led company to a professionally managed firm by expanding into new geographies, product categories, and distribution channels. They have also recently developed several strategic partnerships with Silicon Valley firms to expand into an array of digital products. However, after going public, stock prices continue to fluctuate below analysts' expectations, raising concerns about whether the company has grown too quickly. The leaders must now decide how to expand the firm's capabilities while continuing to preserve its organizational identity and creative culture.
Managing change is consistently ranked as one of the most critical and difficult tasks that leaders face. This note outlines the key choices that leaders must make when engineering change. It is organized into four sections, offering guidance on how to: 1) diagnose the need for change; 2) determine what sort of change is called for (e.g., radical or incremental); 3) develop a delivery strategy that fosters stakeholder buy-in; and, 4) evaluate impact. Managers, instructors, and students of change management should find this note especially useful for discussing the core tenants of designing and implementing a change initiative. This is an abridged version of the "Leading and Managing Change" note.
In April 2013, Ron Johnson (HBS '84) stepped down after just 18 months as CEO of J.C. Penney. In his brief tenure, Johnson, an acclaimed retailer respected for his innovation and success in shaping the retail image at Target and Apple, introduced dramatic departures from J.C. Penney's traditional retail approach and enacted changes quickly and simultaneously, with little market testing. Over Johnson's final 12 months as CEO, J.C. Penney shares dropped more than 50%. The case describes the environments at Target, Apple, and J.C. Penney during Johnson's tenure and how his experiences may have shaped the strategies that he implemented while CEO at J.C. Penney.