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Overview of a method for diagnosing and developing an organization's capability to achieve its goals and implement its strategy, with exercises for application. A rewritten version of an earlier exercise.

This note describes the range of skills that can be used to listen skillfully. The skill set is conceptualized as a continuum to help students learn when and where to utilize the different skills. The note is designed for use in an interpersonal-behavior elective session on listening or in any course in which a primer on listening would be useful.

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.

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

An antiquated corporate mind-set divides the workforce into two camps: white-collar knowledge workers and blue-collar manual workers. It's time for U.S. businesses to recognize a different class of employee--the gold-collar worker.

The day before Treece McDavitt was to leave RightNow!, an off-price women's fashion retailer, the 26-year-old computer wizard accessed HR's files and e-mailed employees' salaries to the entire staff. Now everyone knows what everyone else is making; they are either infuriated that they are making too little or embarrassed that they are making too much. Salary disparities are out there for everyone to see, and CEO Hank Adamson has to do something to smooth things over. Hank's trusted advisers talk extensively with the CEO about his options, ultimately coming down on two sides. Charlie Herald, vice president of human resources, takes a "You get a lemon, you make lemonade" approach: keep making the salaries public to ensure fairness and to push employees to higher performance, he advises. Meanwhile, CFO Harriet Duval sees the need for damage control: apologize, clean up the company's compensation system, and continue to keep--or at least try to keep--salaries private, she says. In R0105A and R0105Z, Victor Sim, Dennis Bakke, Ira Kay, and Bruce Tulgan offer their advice on the problem presented in this fictional case study.

The day before Treece McDavitt was to leave RightNow!, an off-price women's fashion retailer, the 26-year-old computer wizard accessed HR's files and e-mailed employees' salaries to the entire staff. Now everyone knows what everyone else is making; they are either infuriated that they are making too little or embarrassed that they are making too much. Salary disparities are out there for everyone to see, and CEO Hank Adamson has to do something to smooth things over. Hank's trusted advisers talk extensively with the CEO about his options, ultimately coming down on two sides. Charlie Herald, vice president of human resources, takes a "You get a lemon, you make lemonade" approach: keep making the salaries public to ensure fairness and to push employees to higher performance, he advises. Meanwhile, CFO Harriet Duval sees the need for damage control: apologize, clean up the company's compensation system, and continue to keep--or at least try to keep--salaries private, she says. In R0105A and R0105Z, Victor Sim, Dennis Bakke, Ira Kay, and Bruce Tulgan offer their advice on the problem presented in this fictional case study.

The day before Treece McDavitt was to leave RightNow!, an off-price women's fashion retailer, the 26-year-old computer wizard accessed HR's files and e-mailed employees' salaries to the entire staff. Now everyone knows what everyone else is making; they are either infuriated that they are making too little or embarrassed that they are making too much. Salary disparities are out there for everyone to see, and CEO Hank Adamson has to do something to smooth things over. Hank's trusted advisers talk extensively with the CEO about his options, ultimately coming down on two sides. Charlie Herald, vice president of human resources, takes a "You get a lemon, you make lemonade" approach: keep making the salaries public to ensure fairness and to push employees to higher performance, he advises. Meanwhile, CFO Harriet Duval sees the need for damage control: apologize, clean up the company's compensation system, and continue to keep--or at least try to keep--salaries private, she says. In R0105A and R0105Z, Victor Sim, Dennis Bakke, Ira Kay, and Bruce Tulgan offer their advice on the problem presented in this fictional case study.

There have been many changes in professional services since Egon Zehnder founded his executive search firm nearly four decades ago--not the least of which has been a shift in the way professionals pay themselves. When he started, compensation everywhere was strongly tied to seniority. Today, partners at most professional services firms are paid according to the size of their client billings and their ability to bring in new clients. But Egon Zehnder International, which now has 57 offices worldwide, has stuck with the old-fashioned way to pay. In addition to giving partners base salaries and equal shares in a percentage of the profit, the firm apportions another fraction of the profit based only on length of tenure as partner. Yet the firm attracts outstanding consultants, and its turnover rate is low. The reasons, the author says, are simple: the firm's approach to compensation forces it to hire team players--consultants who get more pleasure from the group's success than from their own advancement. And the seniority-based system requires the firm to find people who want to stay for the long haul. Call the system a relic, says Zehnder, but don't call it nonsense. It works. In this article, the author describes the extremely intensive interview process used to hire the right kind of people. By the time the interviews are over, he says, potential hires know that people in the firm's Boston office think and act the same way as people in its Brazil offices--and that they themselves must think and act that way if they are to succeed at the firm.

Many companies now run boot camps--comprehensive orientation programs designed to help new hires hit the ground running. They're intense and intimidating, and new employees emerge from them with strong bonds to other recruits and to the organization. But at Trilogy, organizational consultant Noel Tichy discovered one program that's a breed apart. In this article, Tichy gives us a detailed tour of Trilogy's boot camp, Trilogy University, to demonstrate why it's so different--and so effective. Like the best boot camps, it serves as an immersion in both the technical skills new recruits will need for their jobs and Trilogy's corporate culture, which emphasizes risk-taking, teamwork, humility, and a strong customer focus. But this is a new-employee orientation session that's so fundamental to the company as a whole that it's presided over by the CEO and top corporate executives for fully six months of the year. Why? In two three-month sessions, these top executives hone their own strategic thinking about the company as they decide what to teach the new recruits each session. They also find the company's next generation of new products as they judge the innovative ideas the recruits are tasked with developing--making the program Trilogy's main R&D engine. And they pull the company's rising technical stars into mentoring roles for the new recruits, helping to build the next generation of top leadership. After spending months on-site studying Trilogy University, Tichy came away highly impressed by the power of the virtuous teaching cycle the program has set in motion. Leaders of the organization are learning from recruits at the same time that the recruits are learning from the leaders. It's a model, he argues, that other companies would do well to emulate.

Diversity has become a top priority in corporate America. Despite corporations' best intentions, however, many have failed to achieve a racial mix at the top levels of management. Some have revolving doors for talented minorities, recruiting the best and brightest, only to see them leave, frustrated by their experiences. Others are able to retain high-potential professionals of color but find them mired in middle management. To understand the different career trajectories of whites and minorities, David Thomas studied the progression of racial minorities at three large U.S. corporations. Here, he explains the three career stages that all professionals advance through, and he discusses why promising white professionals tend to enter fast tracks early in their careers, whereas high-potential minorities typically take off after they have reached middle management. Thomas's research shows that minorities who advance the furthest share one characteristic: a strong network of mentors and corporate sponsors. He found that minorities who plateaued in middle management received mentoring that was basically instructional; it helped them to develop skills. By contrast, minorities who became executives enjoyed fuller developmental relationships with their mentors. Thomas explains the types of support mentors provide for their proteges and outlines the challenges of mentoring across racial lines.

Introduces Grey Warner, the vice president of Merck's Latin America region, and his efforts to improve the organizational effectiveness of the region and to introduce a more global business culture and values. Discusses Merck's ethics and values, its Latin American organization, the change methodologies used, and the political and economic conditions in the region. The change methodologies included Myers Briggs personality type assessment, 360 degree feedback management evaluations, a new strategic planning process, and especially, organizational fitness profiling to discover and overcome barriers to achieving the strategic vision. Teaching Purpose: Allows students to examine the management of foreign operations--especially the management of change and the cultural implications thereof.

Supplements the (A) case.

Examines Merck's change effort in Brazil from the perspective of the local employees.

Examines Merck's change effort in Mexico from the perspective of the local employees.

"Please don't tell me that I need to have a baby to have this time off." Those words were still ringing in the ears of Jessica Gonon an hour after a tense meeting with Jana Rowe, one of her key account managers. Jessica, the vice president of sales and customer support at ClarityBase, considered Jana's request for a four-day workweek, for which she was willing to take a corresponding 20% cut in pay. Although the facts seemed simple, the situation was anything but. Just last week, Davis Bennett, another account manager, had made a similar request. Both Jana and Davis were well aware that Megan Flood, another account manager, had been working a reduced schedule for nearly two years in order to spend more time with her children. The eight account managers were in charge of helping the company's largest clients install and maintain database applications, which often required hand-holding and coddling. Because Megan had an abbreviated schedule, the other account managers were assigned the more difficult clients. But if Jessica agreed to a shorter workweek for Jana and Davis, who would take on the toughest customers? And what would happen if the other account managers started asking for similar deals? How can Jessica maintain the productivity of her department and meet her staff's needs for flexible work schedules while striking an equitable solution for both parents and nonparents? In R0103A and R0103Z, Michele S. Darlin, Chris Dineen, Elinor Burkett, and Steward D. Friedman advise Jessica on her next move in this fictional case study.

In 1991, AlliedSignal was in poor shape: morale was low, operating margins were lower than 5%, return on equity was only 10.5%, and--most troubling--the operating management team was weak. But by 1999, when AlliedSignal merged with Honeywell, it was a strong and thriving business. How did the company right its course? Larry Bossidy, CEO of AlliedSignal from 1991 through 1999, believes the turnaround was made possible by a dramatic improvement in people processes. And the extraordinary amount of time and emotional energy he put into evaluating, recruiting, and developing great managers--tasks that most CEOs delegate--was the key to this process improvement. In this First Person article, Bossidy explains why he believes the interview "is the most flawed process in American business." He talks candidly about how he assesses candidates and what types of questions he asks references. He also describes the four leadership traits he looks for when evaluating job candidates: first, the ability to execute--that is, being able to turn ideas into reality. The second trait is what Bossidy calls "a career runway." When Bossidy hires someone, he wants to hire him or her for this job and the next job, never for the person's final position. A third quality is a team orientation--good leaders are able to work well with others. And the fourth quality is having a wide range of experience. To build their skill sets, Bossidy tries to ensure that up-and-coming executives sit in many seats en route to leadership roles.

Ninety percent of large U.S. companies are already recruiting via the Internet. By simply logging on to the Web, company recruiters can locate vast numbers of qualified candidates for jobs at every level, screen them in minutes, and contact the most promising ones immediately. The payoffs can be enormous: it costs substantially less to hire someone on-line, and the time saved is equally great. In this article, Peter Cappelli examines some of the emerging service providers and technologies--matchmakers, job boards, hiring management systems software, and applicant-screening mechanisms that test skills and record interests. He also looks at some of the strategies companies are adopting as they enter on-line labor markets. Integrating recruiting efforts with overall marketing campaigns, especially through coordination and identification with the company's brand, is the most important thing companies can do to ensure success in on-line hiring. Along the way, Cappelli sounds two cautionary notes. First, a human touch, not electronic contact, is vital in the last steps of a successful hiring process. Second, companies must make sure that on-line testing and hiring criteria do not discriminate against women, disabled people, workers over 40, or members of minority groups. When competition for talent is fierce, companies that master the art and science of on-line recruiting will be the ones that attract and keep the best people.

"Please don't tell me that I need to have a baby to have this time off." Those words were still ringing in the ears of Jessica Gonon an hour after a tense meeting with Jana Rowe, one of her key account managers. Jessica, the vice president of sales and customer support at ClarityBase, considered Jana's request for a four-day workweek, for which she was willing to take a corresponding 20% cut in pay. Although the facts seemed simple, the situation was anything but. Just last week, Davis Bennett, another account manager, had made a similar request. Both Jana and Davis were well aware that Megan Flood, another account manager, had been working a reduced schedule for nearly two years in order to spend more time with her children. The eight account managers were in charge of helping the company's largest clients install and maintain database applications, which often required hand-holding and coddling. Because Megan had an abbreviated schedule, the other account managers were assigned the more difficult clients. But if Jessica agreed to a shorter workweek for Jana and Davis, who would take on the toughest customers? And what would happen if the other account managers started asking for similar deals? How can Jessica maintain the productivity of her department and meet her staff's needs for flexible work schedules while striking an equitable solution for both parents and nonparents? In R0103A and R0103Z, Michele S. Darlin, Chris Dineen, Elinor Burkett, and Stewart D. Friedman advise Jessica on her next move on this fictional case study.

"Please don't tell me that I need to have a baby to have this time off." Those words were still ringing in the ears of Jessica Gonon an hour after a tense meeting with Jana Rowe, one of her key account managers. Jessica, the vice president of sales and customer support at ClarityBase, considered Jana's request for a four-day workweek, for which she was willing to take a corresponding 20% cut in pay. Although the facts seemed simple, the situation was anything but. Just last week, Davis Bennett, another account manager, had made a similar request. Both Jana and Davis were well aware that Megan Flood, another account manager, had been working a reduced schedule for nearly two years in order to spend more time with her children. The eight account managers were in charge of helping the company's largest clients install and maintain database applications, which often required hand-holding and coddling. Because Megan had an abbreviated schedule, the other account managers were assigned the more difficult clients. But if Jessica agreed to a shorter workweek for Jana and Davis, who would take on the toughest customers? And what would happen if the other account managers started asking for similar deals? How can Jessica maintain the productivity of her department and meet her staff's needs for flexible work schedules while striking an equitable solution for both parents and nonparents? In R0103A and R0103Z, Michele S. Darlin, Chris Dineen, Elinor Burkett, and Stewart D. Friedman advise Jessica on her next move on this fictional case study.