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Nokia's Bridge Program: Redesigning Layoffs (A)
"Not another Bochum." Nokia Board Chairman Jorma Ollila was clear in the goals he set for the 2011 restructuring that Nokia's new CEO, Stephen Elop, had decided was necessary to address the dramatically changed competitive environment the company faced in smartphones and mobile phones. The strategy shift would include transitioning Nokia's phone operating system to Microsoft Windows, and closing phone R&D centers and factories in 13 countries, with layoffs that would eventually impact 18,000 employees. Yet with several important R&D projects still under development, and capacity needed in factories for many more months, Nokia's board and leaders wanted to avoid the mistakes the company had made in a plant shutdown in Bochum, Germany in 2008. EVP of Corporate Relations and Responsibility Esko Aho was mandated to develop a "Nokia way" to implement the restructuring that would reflect the company's values and allow them to maintain morale and commitment among the employees who would eventually lose their jobs. The case describes the development of Nokia's "Bridge" program, a comprehensive approach to helping employees find new employment opportunities and to replacing jobs in communities where Nokia had been a major employer. The case challenges students to make decisions such as when and how to tell employees about a layoff, how to manage local government leaders, and what support to provide in 13 different countries, each with its own legal and regulatory environment, cultural norms, and expectations and needs of employees and local communities. -
Nokia's Bridge Program: Outcome and Results (B)
Nokia's leaders reflect on the Bridge program, lessons learned during its implementation, and the business benefits it brought to the company. Nokia's Bridge program resulted in 60% of employees knowing their next step the day they exited the firm. It also helped employees start 1,000 new companies, and replaced jobs in communities where Nokia was a major employer. One-third of all mobile phone sales between 2011 - 2012 came from new products that were developed at R&D sites and manufactured at factories that were to be closed down or downsized as part of the restructuring. -
Honeywell and the Great Recession (A)
CEO Dave Cote spent six years turning around an ailing Honeywell and in 2008 Cote and his team face a new challenge: how to respond to the Great Recession. Cote does not want to give up the gains he made in transforming and unifying Honeywell. With a fall-off in demand, Cote and the team must decide how to enact spending cuts in all parts of the business. They face choices in whether to employ layoffs or furloughs (unpaid leaves) for any needed workforce reductions, and whether to enact hiring freezes and other cost-saving changes to employee and executive compensation programs and benefits. Each of these choices is hard, and together they may derail the company's momentum if not handled carefully. -
Honeywell and the Great Recession: The Economic Recovery (B)
Five years after the Great Recession, Honeywell's CEO Dave Cote and his executive team reflect on the choices they made to manage costs and earnings forecasts during that uncertain time. They discuss which cost cutting measures they decided to take and their personal decisions of whether or not to accept bonuses in 2009. Cote also discusses the challenges Honeywell faced implementing unpaid work leaves (furloughs) in different parts of the world and how he believes the choices they made during the recession positioned Honeywell to respond to the economic recovery. -
Furloughs: An Alternative to Layoffs for Economic Downturns
This technical note describes the practice of employee furloughs (also known as work sharing or short time work) including their regulatory frameworks in different countries and the business and ethical implications of their use. -
Business and Government: Campaign Contributions and Lobbying in the United States
This note on business-government relations introduces students to the state of campaign contributions and lobbying by corporations in the United States. The note develops two hypotheses as to the impact of corporate political engagement: (i) a vehicle to facilitate good government; and (ii) an instrument of special-interest capture. The note can be used to generate a discussion on the following issues: (1) In a democratic capitalist society, what is the appropriate role of business in government? (2) When it comes to political contributions, should corporations have the same rights and responsibilities as individuals? The note also describes the various practical choices businesses face on political engagement, including disclosure options and options to engage through trade or ideological associations. This description can be used to encourage business students to develop an aspiration for their companies' political engagement strategies -
Introduction to LCA Reflections
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Global Diversity and Inclusion at Royal Dutch Shell (A)
Royal Dutch Shell has been among the early players to implement diversity and inclusion policies in the 1990s, first in the U.S. and then globally. In May 2009, Peter Voser, CFO and soon-to-be CEO, wants to adjust the company's business, head count, and cost levels to adapt to changing economic conditions after one of the worst economic downturns in decades. His all-male executive committee has raised eyebrows because it is a step back from that of his predecessor, and he must decide whether to continue to promote the firm's emphasis on global diversity and inclusion while it restructures its business and reduces its managerial workforce. -
A Brief History of the U.S. Tobacco Industry Controversy
This history of the U.S. tobacco controversy is a reading for a class on "The Insider," a film about whistleblowing in the U.S. tobacco industry, taught in the course, The Moral Leader. -
Generation Investment Management
Examines the investment process of Generation Investment Management, a "sustainable" investing firm established in 2004 by David Blood and U.S. Vice President Al Gore. Places students in the position of David Lowish, director of global industrials, who must decide whether to recommend an investment in ABB India. The decision pits economic development-supplying energy to impoverished rural areas in India, against environmental damage-caused by the use of coal-fired power plants. This case and/or its teaching note includes references to case supplement videos that are intended for students to view, along with the written case, before class. As a reminder, the (A) video supplement is intended for students to view before class, along with the written case, while the (B) video supplement is for faculty only and to be used in-class. -
Managing the Layoff Process: The United States
This note is an overview of the context for managing layoffs in the United States. It describes the legal responsibilities of managers in conducting layoffs, recent unemployment trends, and the financial, health, training, job placement and other benefits that laid-off employees can expect to receive. -
Managing the Layoff Process: India
This note is an overview of the context for managing layoffs in India. It describes the legal responsibilities of managers in conducting layoffs, recent unemployment trends, and the financial, health, training, job placement and other benefits that laid-off employees can expect to receive. -
Chris and Alison Weston (C)
The Westons reflect on how they have changed and on the lessons they have learned. -
Ethical Analysis: Moral Disengagement
Moral disengagement is a process that enables people to engage in negative behaviors, from small misdeeds to great atrocities, without believing that they are causing harm or doing wrong. When Conrad Black, the fallen Canadian mogul convicted of multiple counts of fraud and obstruction of justice, claims that he "would never dream of committing a crime in a thousand years," moral disengagement is what allows him to make that claim and believe it. This note provides an overview of the eight mechanisms of moral disengagement as first described by Albert Bandura, and provides examples of how they operate in our daily lives. -
Chris and Alison Weston (B)
Prepare students to make ethically charged decisions by exploring moral disengagement, a process that enables individuals to engage in negative behaviors, from small misdeeds to great atrocities, without believing they are causing harm or doing wrong. -
Chris and Alison Weston (A)
Chris and Alison Weston describe how they, a well-educated middle class couple, ended up committing mail fraud, for which they each served a year and a half in federal prison. The case highlights for students how otherwise upstanding individuals much like themselves can commit crimes without being truly aware that they are doing it. -
Anne Riley: Laid Off
This case describes the experience of Anne Riley, a 28 year old private equity analyst, who was laid off in 2008. The case explores the emotions she felt throughout the process and how she handled the experience. -
Cipla 2011
Dr. Yusuf Hamied, head of the Indian pharma and generics manufacturing company Cipla, is weighing options for how to continue to support the global fight against HIV/AIDS while positioning his company for growth in a changing regulatory landscape. -
Global Diversity and Inclusion at Royal Dutch Shell (B): The Impact of Restructuring
The (B) case describes the actions taken by Royal Dutch Shell's CEO and his management team to maintain their commitment to diversity and inclusion (D&I), as introduced in the (A) case, during a major restructuring of the whole organization. -
An Intern's Dilemma
An HBS student is asked by his employer to misrepresent himself during the course of his summer internship in order to obtain data from industry competitors.