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Assesses the costs and benefits of pursuing diversity and pinpoints the primary barriers to creating diverse workplaces. It also proposes some options for advancing diversity in an organization.

Circus Oz was Australia's premier international circus, having performed in 26 countries on five continents. In early 2002, Circus Oz enjoyed its strongest financial position since its founding in 1977, making a profit and sitting on a surplus of AUD$1,169,313. Although in recent years the company had increased the percentage of revenue generated from the box office, more than 60% of its funding still came from the Australia Council, its largest government sponsor. Linda Mickleborough, general manager of Circus Oz, was pondering how to respond to a recent offer by the Australia Council to fund a new position, director of development, at Circus Oz. The Australia Council was strongly encouraging the circus to hire development professionals to expand its funding from corporate donors. As an enticement, the council offered to underwrite the cost of the position for two years. Mickleborough had found the ideal candidate. The decision, however, was still a difficult one. Circus Oz had relatively flat salaries, reflecting deeply held egalitarian and democratic values. These values were central to the company's creative process, culture, and aesthetic. The suggested salary of the development director position was more than two times the highest salary currently paid to any employee at Circus Oz. Such a large salary disparity might wreak havoc on the company's morale and culture.

To ensure transformation beyond its core brand, the European management team of Eccho, a globally operating fast-moving consumer goods company, had decided to invest in building leaders who could deliver growth in new categories. This case describes how Eccho goes about putting together a European leadership development program.

After over four centuries in business, the Beretta family's gun making enterprise stands at an important threshold. The family and its hometown have provided the cultural and philosophical underpinnings that have seen the company through good times and bad. Now, the firm must address a more insidious challenge. How to continue to grow and adapt to new market and competitive situations while retaining the core that brought the company to where it is today. The role of corporate culture is juxtaposed with stability in the face of change, dedication to craftsmanship and the latest technology, close-knit family bonds and an ardor for individualism. The exercise of seemingly contradictory business concepts and approaches is examined.

After nearly 100 years as a mid-size regional law firm, Duane Morris entered a period of spectacular growth led by CEO Sheldon Bonovitz. Originally founded by Quakers, the firm had a distinct organizational culture featuring a number of unique or unusual business practices: a transparent and flexible compensation system, practice-group integration across multiple offices, ancillary businesses, early adoption of financial reporting software, and consensus-based decision making. The firm was proud of its corporate culture and sought to maintain it as it grew, bringing in only people who would fit the culture, in small groups. In 2005, the firm completed its first merger, taking over a 64-person San Francisco firm. Growth was necessary to remain competitive, but could Duane Morris maintain its unique culture while bringing on large numbers of new attorneys?

Toyota is one the most successful car companies in the world. The company set the ambitious growth goal of a 15% share of the global markets by 2010 (up from 11% in 2005). For this, the European market is becoming of strategic importance. The case outlines Toyota's global strategy before focusing on the European market in particular. Sales in Europe increased by over 50% between 2000 and 2005. In the process, Toyota's European manufacturing capacities more than tripled to over 600,000 units over the same period. Although Toyota was on the growth path, the launch of the Aygo posed many challenges. The segment was very price-sensitive and production cost had to be tightly controlled. Toyota decided to enter a joint venture with PSA, the maker of Peugeot/ Citroën. The case shows how cost reduction was the overriding principle and explains how both companies worked together. But selling a car with 93% parts commonality also posed many challenges on the marketing side: Toyota wanted to target younger customers in order to lower the average age of customers. Toyota had no experience in this segment and hence had to go new ways. The case takes readers through the various steps Toyota took in order to promote the Aygo. Learning objectives: Toyota is a latecomer to the European minicar segment. The case analyzes how Toyota changed the business system in order to deal with the various intricacies of this segment. On the manufacturing side, Toyota entered a joint venture with Peugeot/Citroën and built a new plant in the Czech Republic. The cars rolling off this assembly line had a parts commonality of 93%. But the innovations did not stop at the factory gate. Toyota invested in a massive Internet presence, meeting potential customers at locations of their preference and sponsorship of concerts etc. The case is a good platform for discussing Toyota's changes to the existing business system, both upstream and downstream.

The management of McDonald's Argentina faces a communications crisis: A controversial TV program urges consumers to stop visiting McDonald's stores and refrain from eating McPollo (McChicken) burgers following an official announcement that potentially harmful bacteria had been found in these chicken products. Although the McDonald's management believes that the information is probably unfounded, it is 100% committed to doing the right thing. This case looks at how companies may find themselves victims of unexpected events. In the name of a political cause or for "convenient personal" reasons, smart but unscrupulous customers may challenge leading corporations and the trust that other consumers had put in their hands. Corporate damage can be significant. Consequently, communicating effectively in times of crisis is absolutely key. The objective is to learn best practices for crisis management, how companies can prepare themselves to limit the potential damage, how to act and react and what are the "dos and don'ts" when facing this kind of situation.

This is an MIT Sloan Management Review article. With real wages stagnating and job security elusive for many U.S. workers, the American dream of an improved standard of living for each generation is in jeopardy. The author argues that, although many companies seek to become competitive primarily by reducing costs such as labor, there is another option. A substantial body of research indicates that companies that invest in their workforces to build knowledge-based organizations can achieve a return on their investment through higher productivity and profitability. Cites the example of Continental Airlines Inc., which after an era under Frank Lorenzo that was marked by wage cuts and bankruptcy, experienced improved performance and reputation under a new leadership team with a more collaborative management approach. Southwest Airlines Co. and JetBlue Airways Corp. are also examples of airlines that pursue a high-trust, knowledge-based strategy, while Toyota Motor Corp. and Kaiser Permanente are examples from other industries. Executives interested in building knowledge-based organizations can create momentum for their initiatives in several ways: by carefully documenting the gains from knowledge-based strategies, by encouraging employee representation in corporate governance matters, and by working with other leaders to approach problems that no single company can solve alone.

This is an MIT Sloan Management Review article. The conventional models of organizational change present an unrealistic image of change as an episodic phenomenon in which corporate leaders develop and implement elaborate change programs on an occasional basis in response to specific, isolated environmental shocks. This type of change does occur, but more often the corporate environment is characterized by change that is open-ended, fluid, and less closely tied to specific shocks. In fact, continuous change is a cycle with four phases, each with its own dynamics and specific type of champion. "Evangelists" promote the value of innovation and creativity, influencing those around them so that new ideas spread and take root. "Autocrats" choose which ideas are translated into practice, using their authority to alter behaviors. "Architects" design and implement systems that embed change into the organizational infrastructure. Finally, "educators" create work experiences that increase employees' expertise and sense of mastery, leading to the generation of new ideas that extend and potentially transform the organization's direction, thereby keeping the cycle going around. An understanding of these four phases can help managers transform their companies into organizations that experience change, not as a tumultuous, anxiety-inducing event, but as part of an everyday routine.

Most CEOs who specialize in turning around struggling companies focus on costs. But for Fred Hassan, chairman and CEO of Schering-Plough, the primary focus in a turnaround is the top line. Since 2003, when Hassan took the helm at the global pharmaceutical company, he has overseen a remarkable recovery in performance. And consistent with his philosophy, the turnaround started with sales. Considering sales reps as less than crucial to strategy, Hassan cautions, is a big mistake. At Schering-Plough, he has concentrated on motivating and organizing salespeople to create trusting relationships with doctors. "You have to differentiate the salesperson in the customer's mind--just like you differentiate brands," he explains. A doctor may see 60 pharmaceutical reps on a regular basis but actually trust far fewer. To earn a spot in this inner circle, Schering-Plough reps try to turn each customer encounter into an occasion to help doctors provide better care for their patients. Schering-Plough also restructured its sales forces so that reps carry not just one kind of product, as they do in most pharmaceutical companies, but several. Covering a broad range of treatments gives reps more ways to build value-adding relationships with doctors. In this interview, Hassan discusses his success at Schering-Plough and his experiences at other pharmaceutical companies. During his career, he has built a reputation for being in tune with the front lines, as well as for reaching out to the managers who supervise salespeople. He has found that this level of personal attention not only makes reps feel respected, but also gives him valuable strategic insights.

In 2006, Howard Schultz reflects on his leadership at Starbucks in light of its continued growth plans. Provides information on the leadership development of the protagonist, tracing his youth and education, his early business career, his acquisition of Starbucks, and its subsequent massive growth. Raises questions about leadership styles, the role of a self-authored life story in leadership, and the qualities that attract, retain, and deploy complementary management talent.

An abstract is not available for this product.

In 1995, Wendy Kopp, founder and president of Teach for America, faces a worsening budget shortfall and sharpening challenges from education experts concerning her organization's mission and effectiveness. Provides information on the leadership development of the protagonist, tracing her youth and education and the process of launching Teach for America. Raises questions about social entrepreneurship, organizational and leadership development, and sustainability of leadership.

Teena Lerner started her own hedge fund firm in 2001 after nearly 20 years as a star biotechnology analyst and hedge fund manager. After the start-up phase, her firm became highly profitable. In 2004, however, one of her four analysts lost a lot of money for the firm. If Lerner followed the existing compensation system, she would wind up significantly underpaying her other analysts, all of whom had performed well. Should she follow the compensation system or not? And what should be done about the underperforming analyst?

Supplements the (A) case.

Since it was founded in 1988, Ping An Insurance has grown to become China's second largest life insurance underwriter and third largest property and casualty insurer. The company's ambition is to build on its local market success to become a leading regional and global integrated financial services provider within the next 10 years. The case focuses on strategy execution and illustrates how Ping An has developed and will continue to develop its business and information capabilities to meet existing and future customer needs. It examines the culture of the company and what it can and should do to drive its rapid growth through intense customer focus and market-based product innovations.

An abstract is not available for this product.

IDEC, the Brazilian Consumer Protection Institute, is a nongovernmental organization created in 1987 by a group of volunteers aiming to promote consumer rights and build consumer awareness mainly through information and education in collective action and prevention. IDEC's activities were conducted largely by volunteers. The institute prioritized a financial sustainability strategy focused on raising funds among foundations and cooperation agencies. When this system proved insufficient, the organization resorted to membership fees. It also continued to pursue funding from financing entities, enabing IDEC to develop the capability to diversify activities like comparative product tests, the publication of books and manuals, and class actions representing consumer interests. Along with the growth went an increasing formalization of IDEC's organizational structure and a rising professionalization of its team. However, IDEC failed to develop strategies and activities toward its sustainability and, thus, became overly dependent on project funds. Aiming to regain a perspective of long-term survival, in late 2003 IDEC developed a business plan, the purpose of which was to become a self-sustaining organization by increasing revenues from the sale of memberships, products, and services. The dilemma IDEC faced was whether to implement the business plan, as it could transform IDEC into a provider of services for paying customers, which clashed with its orginal objective that underlay its creation. How can IDEC balance economic and social value?

Every year, at the annual summit of Ralston Crane's marketing group, Chief Marketing Officer Ruth McViney homes in on an important organizational objective. Last year, the architecture and design firm was focused on green building initiatives. This year, Ruth says, is the year of customer loyalty. Toward the end of her keynote remarks, she introduces two kickoff projects. The goals of one, Project Holding Pattern, sound familiar to Ralston's Guy Christiano; if the project team structures its loyalty program to look like the one he'd been associated with in his previous job, it could be a boon for the company. "Why didn't they put me on that project?" he wonders. "Then again," Guy figures, "I've got plenty to do already." Several weeks after the conference, Guy is contacted by a member of the project team. Guy's ready to share the key success factors for the loyalty program he'd been involved with before: a marketing initiative that looks like a service offering. But what the team is proposing sounds more like a run-of-the-mill seminar series. Against his mentor's advice, Guy calls team leader Charyl Urquhart to make the case for a different approach, going so far as to e-mail her his suggested outline for the program. Miffed, Charyl cuts the call short and never follows up. Guy considers going over her head, to McViney. But another friend in the firm warns him off: "If it's as screwed up as you say it is...you don't want to be associated with it." Should a colleague with strong opinions butt in or butt out? In R0606A and R0606Z, four expert commentators--consultant and author Marcus Buckingham, Harley-Davidson's Joanne Bischmann, former Oticon CEO Lars Kolind, and Umea University School of Business professor Tomas Blomquist--offer their advice on this fictional case study.

The desire to achieve is a major source of strength in business, and it is on the rise. The authors' consulting firm has seen a steady increase in the extent to which achievement motivates managers. There's a dark side to the trend, however. By relentlessly focusing on tasks and goals, an executive or company can damage performance. Overachievers tend to command and coerce, stifling subordinates. Psychologist David McClelland identified three drivers of behavior: achievement, meeting a standard of excellence; affiliation, maintaining close relationships; and power, having an impact on others. He said the power motive comes in two forms: personalized, in which the leader draws strength from controlling people, and socialized, where the leader derives strength from empowering people. Studies show that great charismatic leaders are highly motivated by socialized power. To look at how motives and leadership style affect a group's work climate and performance, the authors studied 21 senior managers at IBM. The leaders who created high-performing and energizing climates got more lasting results by using a broad range of styles, choosing different ones for different circumstances. Rather than order people around, they provided vision, sought buy-in and commitment, and coached. If you're an overachiever seeking to broaden your range, you can study your actions and ask your team, peers, and manager to give you honest feedback. You can adopt specific new behaviors, such as engaging your team in a discussion of how to achieve goals, rather than issuing a set of directives. The company as a whole can play a part, too: Organizations must learn when to draw on the achievement drive and when to rein it in.