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  • Marimekko

    Kirsti Paakkanen has achieved a celebrity status in Finland for her enigmatic leadership of the Finnish design company Marimekko. Purchasing the company in a state of near bankruptcy in 1991, Paakkanen took several actions to restore profitability and realize growth. As of 2006, the company has sales of 64 million euros (of which 80% are from Finland) and net profits of 8.4 million euros. Over the last few years, Paakkanen and her team have focused on growing international sales. Recently, the company has opened concept shops owned by foreign partners in Japan, the United Arab Emirates, Iceland, Sweden, and the United States. In light of the international expansion, Paakkanen is wondering if any changes to Marimekko's personnel policies and/or organization structure are necessary.
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  • U.S. Food and Drug Administration

    Describes the U.S. FDA with particular emphasis on its role in the development of new drugs, biologic products, and medical devices today. Provides context for the drug approval process by describing the FDA's history and organizational structure.
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  • The Waterview

    The snack bar supervisor of The Waterview resort in Northern Ontario just had another argument with his boss. He was angry and hated the thought of finishing the remaining four weeks of his summer contract. It was obvious to the supervisor that his boss held a personal grudge against him that was growing in intensity. He wondered how to finally settle their differences. Students will analyze a set of complex issues.
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  • Mercy Corps: Positioning the Organization to Reach New Heights

    Mercury Corps, the world's 5th largest international relief and development agency, is at a turning point. The nonprofit's opportunities to grow and serve a larger number of beneficiaries are unprecedented. By looking at the unique relationship between headquarters and over 40 country offices, explores the question--is Mercury Corps well positioned to effectively and efficiently manage these new growth opportunities.
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  • Digital China Holdings Limited: Managing the Transition from a Product-oriented to a Service-oriented Company

    Digital China is the largest Chinese independent systems integrator (IBM and HP are larger). Describes their history and their current strategy and invites the student to advise them as to how they should continue to grow in the future. This is the closest China currently has to Infosys and their 7,700-person company is a very interesting, and today, a largely unknown organization outside of China.
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  • Building Organizational Integrity

    Ethical lapses by employees can put organizations at substantial risk. Although improved compliance procedures can help limit this risk, successful efforts must extend beyond compliance to build a culture of organizational integrity. Recent changes in regulatory requirements and more stringent sentencing guidelines demand an integrated approach to ethical awareness, one that encompasses the four organizational practices of controls, clearly defined principles and purpose, core values, and culture. Inevitably, the most difficult of these is building a culture of high ethical standards that are reflected in day-to-day practice. To overcome the barriers to building organizational integrity, leaders must question key organizational practices while constructing a culture based on ethical behaviors.
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  • Tale of the Lynx (A and B)

    The founders of Lynx Solutions have survived major challenges within their board of directors, the firing of Lynx's founder-CEO and departure of its successor CEO, and a crisis sparked by media allegations that it had been spying on its users. Now that the company is finally becoming profitable, the two remaining founders are embroiled in exhausting fights over how aggressively the company should try to grow, and those fights are threatening to derail Lynx's recent success.
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  • Moments of Truth: Global Executives Talk About the Challenges That Shaped Them as Leaders

    When did you realize you had the right stuff to lead? HBR's editors put that question to a group of business leaders representing different industries, nationalities, executive tenures, and company sizes. The answers were as diverse as the group itself. Nokia CEO Olli-Pekka Kallasvuo recounts a lesson in humility, learned when he was a young CFO and it wasn't clear each month that the company would be able to pay salaries the next. Gary Jackson describes the challenge of preserving his military-training company's high-energy culture, largely through his own example. Arthur Gensler's story highlights the importance of vision in growing his architectural firm and refusing to be constrained by the traditions of a hidebound industry. A world away, Alexander Cummings tells the harrowing tale of withstanding quarter after quarter of declining margins and market share--and intense pressure from his boss, and his boss's boss--because he had conviction that a controversial decision he made at Coca-Cola Africa would prove right in the end. Roche CEO Franz Humer recounts how he learned to trust his intuition, particularly when the rest of his organization was inclined to see only the downside risk in a deal. Other leaders' moments of truth involved tests of still different qualities. Duleep Aluwihare of Ernst & Young in Poland learned from painful encounters with a mentor in his old firm, Arthur Andersen, that he must change his leadership style. Sergey Petrov, the founder of Russia's largest car importer, developed the perspective required of a leader when he was a young dissident held for questioning by the KGB. Finally, Alan Klapmeier of private-aircraft manufacturer Cirrus Design tells of the passion required to bring something truly innovative to market despite recalcitrant board members and the catastrophic loss of a prototype.
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  • Very Model of a Modern Senior Manager (HBR Case Study and Commentary)

    A leadership crisis has erupted at Barker Foods. Doug Lothian, the national sales director of the chocolates and confections division, was just fired for making some bad marketing choices, engaging in questionable selling behaviors, and, ultimately, losing the confidence of his customers and his staff. As a result, there's a schism in Sales. Senior managers are wondering whether a competency model would help the company replace Doug with the right kind of leader and prevent other leadership problems from cropping up. HR director Anne Baxter thinks Doug's situation is the perfect example of why Barker Foods needs to define exactly what it's looking for from its top people. Colin Anthony, the CEO, has given Anne the go-ahead to work with a special task force on a framework that would not only highlight the critical values, knowledge, and skills necessary to lead any of the company's divisions but also identify the corresponding tasks, behaviors, and measures of success. Colin has asked Anne and her team to present their findings to the executive committee, which has voiced mixed opinions about competency modeling. On the one hand, it makes sense to hire and develop the right people to execute the company's strategy; on the other, it doesn't seem wise to oversimplify the work that senior executives do--and boiling down great leadership to a checklist of qualities could be a step in that direction. Should the executive committee go forward with plans for competency modeling? Commenting on this fictional case study in R0701B and R0701Z are: Reuben Mark, chairman of Colgate-Palmolive; Rebecca Ray, senior vice president for global learning and organizational development at MasterCard Worldwide; George Manderlink, a partner in Heidrick & Struggles Leadership Consulting; and Dave Ulrich, a cofounder of the RBL Group, a leadership consultancy.
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  • How Leaders Create and Use Networks

    Most people acknowledge that networking is an essential activity for an ambitious manager. Indeed, it's a requirement even for those focused simply on doing their current jobs well. For some, this is a distasteful reality. Working through networks, they believe, means relying on "who you know" rather than "what you know"--a hypocritical, possibly unethical, way to get things done. But even people who understand that networking is a legitimate and necessary part of their jobs can be discouraged by the payoff--because they are doing it in too limited a fashion. On the basis of a close study of 30 emerging leaders, the authors outline three distinct forms of networking. Operational networking is geared toward doing one's assigned tasks more effectively. It involves cultivating stronger relationships with colleagues whose membership in the network is clear; their roles define them as stakeholders. Personal networking engages kindred spirits from outside an organization in an individual's efforts to learn and find opportunities for personal advancement. Strategic networking puts the tools of networking in the service of business goals. At this level, a manager creates the kind of network that will help uncover and capitalize on new opportunities for the company. The ability to move to this level of networking turns out to be a key test of leadership. Companies often recognize that networks are valuable, and they create explicit programs to support them. But typically these programs facilitate only operational networking. Likewise, industry associations provide formal contexts for personal networking. The unfortunate effect is to give managers the impression that they know how to network and are doing so sufficiently. A sidebar notes the implication for companies' leadership development initiatives: that teaching strategic networking skills will serve their aspiring leaders and their business goals well.
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  • Becoming the Boss

    Even for the most gifted individuals, the process of becoming a leader is an arduous, albeit rewarding, journey of continuous learning and self-development. The initial test along the path is so fundamental that we often overlook it: becoming a boss for the first time. That's a shame, because the trials involved in this rite of passage have serious consequences for both the individual and the organization. For a decade and a half, the author has studied people -- particularly star performers -- making major career transitions to management. As firms have become leaner and more dynamic, new managers have described a transition that gets more difficult all the time. But the transition is often harder than it need be because of managers' misconceptions about their role. Those who can acknowledge their misconceptions have a far greater chance of success. For example, new managers typically assume that their position will give them the authority and freedom to do what they think is best. Instead, they find themselves enmeshed in a web of relationships with subordinates, bosses, peers, and others, all of whom make relentless and often conflicting demands. "You really are not in control of anything," says one new manager. Another misconception is that new managers are responsible only for making sure that their operations run smoothly. But new managers also need to realize they are responsible for recommending and initiating changes--some of them in areas outside their purview--that will enhance their groups' performance. Many new managers are reluctant to ask for help from their bosses. But when they do ask (often because of a looming crisis), they are relieved to find their superiors more tolerant of their questions and mistakes than they had expected.
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  • Courage as a Skill

    A division vice president blows the whistle on corruption at the highest levels of his company. A young manager refuses to work on her boss's pet project because she fears it will discredit the organization. A CEO urges his board, despite push back from powerful, hostile members, to invest in environmentally sustainable technology. What is behind such high-risk, often courageous acts? Courage in business, the author has found, seldom resembles the heroic impulsiveness that sometimes surfaces in life-or-death situations. Rather, it is a special kind of calculated risk taking, learned and refined over time. Taking an intelligent gamble requires an understanding of what she calls the "courage calculation": six discrete decision-making processes that make success more likely while averting rash or unproductive behavior. These include setting attainable goals, tipping the power balance in your favor, weighing risks against benefits, and developing contingency plans. Goals may be organizational or personal. Tania Modic had both types in mind when, as a young bank manager, she overstepped her role by traveling to New York -- on vacation time and on her own money -- to revitalize some accounts that her senior colleagues had allowed to languish. Her high-risk maneuver benefited the bank and gained her a promotion. Lieutenant General Claudia J. Kennedy weighed the risks and benefits before deciding to report a fellow officer who had plagiarized a research paper at a professional army school. In her difficult courage calculation, loyalty to army standards proved stronger than the potential discomfort and embarrassment of "snitching" on a fellow officer. When the skills behind courageous decision making align with a personal, organizational, or societal philosophy, managers are empowered to make bold moves that lead to success for their companies and their careers.
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  • CEO's Second Act

    When a CEO leaves because of performance problems, the company typically recruits someone thought to be better equipped to fix what the departing executive couldn't--or wouldn't. The board places its confidence in the new person because of the present dilemma's similarity to some previous challenge that he or she dealt with successfully. But familiar problems are inevitably succeeded by less familiar ones, for which the specially selected CEO is not quite so qualified. More often than not, the experiences, skills, and temperament that yielded triumph in Act I turn out to be unequal to Act II's difficulties. In fact, the approaches that worked so brilliantly in Act I may be the very opposite of what is needed in Act II. The CEO has four choices: refuse to change, in which case he or she will be replaced; realize that the next act requires new skills and learn them; downsize or circumscribe his or her role to compensate for deficiencies; or line up a successor who is qualified to fill a role to which the incumbent's skills and interests are no longer suited. Hewlett-Packard's Carly Fiorina exemplifies the first alternative; Merrill Lynch's Stanley O'Neal the second; Google's Sergey Brin and Larry Page the third; and Quest Diagnostics' Ken Freeman the fourth. All but the first option are reasonable responses to the challenges presented in the second acts of most CEOs' tenures. And all but the first require a power of observation, a propensity for introspection, and a strain of humility that are rare in the ranks of the very people who need those qualities most. There are four essential steps executives can take to discern that they have entered new territory and to respond accordingly: recognition that their leadership style and approach are no longer working; acceptance of others' advice on why performance is faltering; analysis and understanding of the nature of the Act II shift; and, finally, decision and action.
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  • Firing Back: How Great Leaders Rebound After Career Disasters

    Among the tests of a leader, few are more challenging--and more painful--than recovering from a career catastrophe. Most fallen leaders, in fact, don't recover. Still, two decades of consulting experience, scholarly research, and their own personal experiences have convinced the authors that leaders can triumph over tragedy--if they do so deliberately. Great business leaders have much in common with the great heroes of universal myth, and they can learn to overcome profound setbacks by thinking in heroic terms. First, they must decide whether or not to fight back. Either way, they must recruit others into their battle. They must then take steps to recover their heroic status, in the process proving, both to others and to themselves, that they have the mettle necessary to recover their heroic mission. Bernie Marcus exemplifies this process. Devastated after Sandy Sigoloff fired him from Handy Dan, Marcus decided to forgo the distraction of litigation and instead make the marketplace his battleground. Drawing from his network of carefully nurtured relationships with both close and more distant acquaintances, Marcus was able to get funding for a new venture. He proved that he had the mettle, and recovered his heroic status, by building Home Depot, whose entrepreneurial spirit embodied his heroic mission. As Bank One's Jamie Dimon, J.Crew's Mickey Drexler, and even Jimmy Carter, Martha Stewart, and Michael Milken have shown, stunning comebacks are possible in all industries and walks of life. Whatever the cause of your predicament, it makes sense to get your story out. The alternative is likely to be long-lasting unemployment. If the facts of your dismissal cannot be made public because they are damning, then show authentic remorse. The public is often enormously forgiving when it sees genuine contrition and atonement.
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  • What to Ask the Person in the Mirror

    Every leader gets off track from time to time. But as leaders rise through the ranks, they have fewer and fewer opportunities for honest and direct feedback. Their bosses are no longer monitoring their actions, and by the time management missteps have a negative impact on business results, it's usually too late to make course corrections that will set things right. Therefore, it is wise to go through a self-assessment, to periodically step back from the bustle of running a business and ask some key questions of yourself. Author Robert S. Kaplan, who during his 22-year career at Goldman Sachs chaired the firm's senior leadership training efforts and cochaired its partnership committee, identifies seven areas for self-reflection: vision and priorities, managing time, feedback, succession planning, evaluation and alignment, leading under pressure, and staying true to yourself. The author sets out a series of questions in each of the areas, illustrating the impact of self-assessment through vivid accounts of real executives. Although the questions sound simple, people are often shocked-even horrified-by their own answers. Executives are aware that they should be focusing on their most important priorities, for instance, but without stepping back to reflect, few actually know where they are allocating their time. Kaplan advocates writing down what you do every working hour for a week and checking how well your actions match up with your intentions. As for feedback, managers should ask themselves whether they're getting truthful evaluations from their subordinates. (In all likelihood, they aren't.) It takes time and discipline to persuade your employees to tell you about your failings.
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  • When a New Manager Takes Charge (HBR Classic)

    When some managers take over a new job, they hit the ground running. They learn the ropes, get along with their bosses and subordinates, gain credibility, and ultimately master the situation. Others, however, don't do so well. What accounts for the difference? In this article, first published in 1985, Harvard Business School professor John J. Gabarro relates the findings of two sets of field studies he conducted, covering 14 management successions. The first set was a three-year study of four newly assigned division presidents; the second consisted of 10 historical case studies. The project comprised American and European organizations with sales varying from $1.2 million to $3 billion. It included turnarounds, normal situations, failures, and triumphs. According to the author, the taking-charge process follows five predictable stages: taking hold, immersion, reshaping, consolidation, and refinement. These phases are characterized by a series of alternating periods of intense learning (immersion and refinement) and action (taking hold, reshaping, and consolidation). The study's results put to rest the myth of the all-purpose general manager who can be dropped into any situation and emerge triumphant. Understanding a situation and effecting change do not occur overnight, says Gabarro, and human variables such as managerial styles and effective working relationships make a difference.
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  • Very Model of a Modern Senior Manager (HBR Case Study)

    A leadership crisis has erupted at Barker Foods. Doug Lothian, the national sales director of the chocolates and confections division, was just fired for making some bad marketing choices, engaging in questionable selling behaviors, and, ultimately, losing the confidence of his customers and his staff. As a result, there's a schism in Sales. Senior managers are wondering whether a competency model would help the company replace Doug with the right kind of leader and prevent other leadership problems from cropping up. HR director Anne Baxter thinks Doug's situation is the perfect example of why Barker Foods needs to define exactly what it's looking for from its top people. Colin Anthony, the CEO, has given Anne the go-ahead to work with a special task force on a framework that would not only highlight the critical values, knowledge, and skills necessary to lead any of the company's divisions but also identify the corresponding tasks, behaviors, and measures of success. Colin has asked Anne and her team to present their findings to the executive committee, which has voiced mixed opinions about competency modeling. On the one hand, it makes sense to hire and develop the right people to execute the company's strategy; on the other, it doesn't seem wise to oversimplify the work that senior executives do--and boiling down great leadership to a checklist of qualities could be a step in that direction. Should the executive committee go forward with plans for competency modeling? Commenting on this fictional case study in R0701B and R0701Z are: Reuben Mark, chairman of Colgate-Palmolive; Rebecca Ray, senior vice president for global learning and organizational development at MasterCard Worldwide; George Manderlink, a partner in Heidrick & Struggles Leadership Consulting; and Dave Ulrich, a cofounder of the RBL Group, a leadership consultancy.
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  • Very Model of a Modern Senior Manager (Commentary for HBR Case Study)

    A leadership crisis has erupted at Barker Foods. Doug Lothian, the national sales director of the chocolates and confections division, was just fired for making some bad marketing choices, engaging in questionable selling behaviors, and, ultimately, losing the confidence of his customers and his staff. As a result, there's a schism in Sales. Senior managers are wondering whether a competency model would help the company replace Doug with the right kind of leader and prevent other leadership problems from cropping up. HR director Anne Baxter thinks Doug's situation is the perfect example of why Barker Foods needs to define exactly what it's looking for from its top people. Colin Anthony, the CEO, has given Anne the go-ahead to work with a special task force on a framework that would not only highlight the critical values, knowledge, and skills necessary to lead any of the company's divisions but also identify the corresponding tasks, behaviors, and measures of success. Colin has asked Anne and her team to present their findings to the executive committee, which has voiced mixed opinions about competency modeling. On the one hand, it makes sense to hire and develop the right people to execute the company's strategy; on the other, it doesn't seem wise to oversimplify the work that senior executives do-- and boiling down great leadership to a checklist of qualities could be a step in that direction. Should the executive committee go forward with plans for competency modeling? Commenting on this fictional case study in R0701B and R0701Z are: Reuben Mark, chairman of Colgate-Palmolive; Rebecca Ray, senior vice president for global learning and organizational development at MasterCard Worldwide; George Manderlink, a partner in Heidrick & Struggles Leadership Consulting; and Dave Ulrich, a cofounder of the RBL Group, a leadership consultancy.
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  • Southwest Airlines Flight 1248 (A)

    After the company's first aviation fatality, Southwest Airlines's CEO is faced with new and difficult decisions. The alacrity and compassion that characterized the company's response serves as a paradigm for any organization facing a future crisis situation.
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  • Southwest Airlines Flight 1248 (B)

    An abstract is not available for this product.
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