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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.

Cyrus Maher, CEO of Waterway Industries, thinks he may be facing a human resources problem. Lee Carter is a relatively new employee whose high-powered sales ability has rocketed Maher's sleepy canoe company into unprecedented growth. But Maher has overheard Carter discussing a new job that would offer equity, and he fears her defection is imminent. Maher has begun to reconsider his employees' compensation arrangements, particularly Carter's. As he consults with his banker and with advisers in the industry, he begins to realize that the easygoing culture he created at Waterway may have changed for good. In 96408 and 96408Z, James McCann, Kay Henry, Myra Hart, Ronald Rudolph, Bruce Schlegel, and Alan Johnson offer advice on this fictional case study.

Cyrus Maher, CEO of Waterway Industries, thinks he may be facing a human resources problem. Lee Carter is a relatively new employee whose high-powered sales ability has rocketed Maher's sleepy canoe company into unprecedented growth. But Maher has overheard Carter discussing a new job that would offer equity, and he fears her defection is imminent. Maher has begun to reconsider his employees' compensation arrangements, particularly Carter's. As he consults with his banker and with advisers in the industry, he begins to realize that the easygoing culture he created at Waterway may have changed for good. In 96408 and 96408Z, James McCann, Kay Henry, Myra Hart, Ronald Rudolph, Bruce Schlegel, and Alan Johnson offer advice on this fictional case study.

Cyrus Maher, CEO of Waterway Industries, thinks he may be facing a human resources problem. Lee Carter is a relatively new employee whose high-powered sales ability has rocketed Maher's sleepy canoe company into unprecedented growth. But Maher has overheard Carter discussing a new job that would offer equity, and he fears her defection is imminent. Maher has begun to reconsider his employees' compensation arrangements, particularly Carter's. As he consults with his banker and with advisers in the industry, he begins to realize that the easygoing culture he created at Waterway may have changed for good. In 96408 and 96408Z, James McCann, Kay Henry, Myra Hart, Ronald Rudolph, Bruce Schlegel, and Alan Johnson offer advice on this fictional case study.

Andy Chew, a British manager reassigned to Germany by a large German computer company, is in the middle of carrying out a project as a designated "change agent" in a program to reshape the culture toward one that is more entrepreneurial for success as a nimble global competitor. He is still uncertain of his support.

Rafferty Goldstone, the protagonist of this HBR case study, was one of Bulwark Securities' hottest sales reps, but he dreamed of management. So he was elated when he was chosen to fill a manager's slot that had opened up on the East Coast. Now, six months later, he's in deep trouble and doesn't know where to turn for help. But who's responsible for Goldstone's floundering? And can anything be done to direct him down the right path? In 96201 and 96201Z, Thomas J. DeLong, Ellen Hart, Kathleen Collman, John Doumani, Joseph L. Galarneau, and Julie Johnson offer advice on this fictional case study.

Rafferty Goldstone, the protagonist of this HBR case study, was one of Bulwark Securities' hottest sales reps, but he dreamed of management. So he was elated when he was chosen to fill a manager's slot that had opened up on the East Coast. Now, six months later, he's in deep trouble and doesn't know where to turn for help. But who's responsible for Goldstone's floundering? And can anything be done to direct him down the right path? In 96201 and 96201Z, Thomas J. DeLong, Ellen Hart, Kathleen Collman, John Doumani, Joseph L. Galarneau, and Julie Johnson offer advice on this fictional case study.

Rafferty Goldstone, the protagonist of this HBR case study, was one of Bulwark Securities' hottest sales reps, but he dreamed of management. So he was elated when he was chosen to fill a manager's slot that had opened up on the East Coast. Now, six months later, he's in deep trouble and doesn't know where to turn for help. But who's responsible for Goldstone's floundering? And can anything be done to direct him down the right path? In 96201 and 96201Z, Thomas J. Delong, Ellen Hart, Kathleen Collman, John Doumani, Joseph L. Galarneau, and Julie Johnson offer advice on this fictional case study.

A corporation's success today lies more in its intellectual and systems capabilities than in its physical assets. Managing human intellect--and converting it into useful products and services--is fast becoming the critical executive skill of the age. It is therefore surprising that so little attention has been given to that endeavor. Few managers have systematic answers to even these basic questions: What is professional intellect? How can we develop it? How can we leverage it? According to James Brian Quinn and his coauthors, an organization's professional intellect operates on four levels: cognitive knowledge, advanced skills, systems understanding, and self-motivated creativity. They argue that organizations that nurture self-motivated creativity are more likely to thrive in the face of today's rapid changes.

Eastman Chemical Co. spun off from Kodak in 1993. The CEO of Eastman, Earnest Deavenport did not want the new company's board any members of the Kodak board to include, so he initiated a deliberate and thorough process to build an entirely new board that he hoped would be on the cutting edge. This case describes the selection process and documents the backgrounds of the chosen directors. Discusses the board's first year at work, and it records the reflections "one year in" of Deavenport and some of the board members.

Looks at a change effort initiated by a human resources manager within a division of TRW. The effort utilizes a change process to try to deal with some of the division's issues around organizational effectiveness, especially that of a long-term strategy. In so doing, the situation portrays some of the fundamental hurdles in creating change.

First Community Bank, a bank-within-a-bank at Bank of Boston, was established in 1990 as a unique venture to serve urban communities. By 1995 it has achieved profitability but must manage relationships with the mainstream at Bank of Boston, serve as a change agent and role model, and face the challenge of reexamining its mission and structure.

Discusses progress made by mid-1995 on the three challenges identified by the change leadership at the end of 1993. First, it describes the decision-making process that resulted in a general consensus to reorganize the huge London office, and it highlights certain psychological, logistical, and strategic challenges of implementing this change. Second, it addresses action plans taken to increase the satisfaction of the firm's nonpartner senior managers. Third, it explores continued efforts of the change leadership to communicate and clarify its vision.

Describes a conflict between the values and norms of a segment of an internal social system and those of management and the wider culture. Includes decision opportunity. A rewritten version of an earlier case.

Spreadsheet supplement for case 496018.

Cambridge Technology Partners uses a highly innovative product strategy, supported by a human resources strategy, that has been very successful. However, high growth rates jeopardize product quality while tension about relative compensation levels between sales and operations threatens the firm's culture.

Supplements the (A) case.

This case presents an assessment of the strategic human resource management (SHRM) profiling process implemented at Becton Dickinson. It explores the questions the assessment raised about the viability of the process and what aspects might be changed if the process is to be continued.

Frank Waterhouse, CEO of Argos Diesel, Europe, is exasperated. Bert Donaldson, who arrived in Zurich a year ago to create a European team--to facilitate communication among the parts suppliers that Argos has acquired over the past two years--just isn't working out. Although he has excellent credentials, both as a successful team builder at Argos International in Detroit and as a teacher in Cairo, his style seems abrasive here and he is behind schedule in implementing the team-building program. Moreover, Waterhouse is worried that Donaldson's failure will reflect badly on himself. But Waterhouse can't simply fire Donaldson. Donaldson is a smart man with a record of genuine successes in the States. If he gets fired, his career may be destroyed. Further, the CEO of Argos International thinks the world of him and is counting on Waterhouse to make this assignment work. Can Waterhouse teach Donaldson cultural awareness? Can he help him become effective in his job? Waterhouse has scheduled a conversation with Donaldson to discuss the situation. What should he say? For teaching purposes, this is the case-only version of the HBR case study. The commentary-only version is reprint 95401Z. The complete case study and commentary is reprint 95401.

Frank Waterhouse, CEO of Argos Diesel, Europe, is exasperated. Bert Donaldson, who arrived in Zurich a year ago to create a European team--to facilitate communication among the parts suppliers that Argos has acquired over the past two years--just isn't working out. Although he has excellent credentials, both as a successful team builder at Argos International in Detroit and as a teacher in Cairo, his style seems abrasive here and he is behind schedule in implementing the team-building program. Moreover, Waterhouse is worried that Donaldson's failure will reflect badly on himself. But Waterhouse can't simply fire Donaldson. Donaldson is a smart man with a record of genuine successes in the States. If he gets fired, his career may be destroyed. Further, the CEO of Argos International thinks the world of him and is counting on Waterhouse to make this assignment work. Can Waterhouse teach Donaldson cultural awareness? Can he help him become effective in his job? Waterhouse has scheduled a conversation with Donaldson to discuss the situation. What should he say? In 95401 and 95401Z, Doulgas A. Ready, Susan Schneider, Bjorn Johansson, Fons Trompenaars, and Roman Borboa offer advice on this fictional case study.