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The article is a HBR fictional case study that focuses on a company's process for determining if it needs a chief sustainability officer (CSO) on its executive management team. The experts commenting on this topic are SAP company's chief sustainability officer Peter Graf and Coca-Cola's chief executive officer Muhtar Kent. Graf notes three points in the decision process that relate to profitability, accountability, and cost reduction. Kent notes the added bureaucracy with a CSO.

The article presents a fictional case study that focuses on how to manage competition in the telecommunication services industry. The issue is that one company could lose customers and market share because another company is offering free broadband. Georg Tacke, co-chief executive officer of Simon-Kucher & Partners company, and Anne Gro Gulla, a branding director at Telenor Group company, offer their views on how to respond to a competitive attack without causing a price war. INSET: WHAT WOULD YOU DO? SOME ADVICE FROM OUR READERS.

The article presents a HBR fictional case study which is commented on by Leonard J. Marcus and James J. Dunne III. A chief executive officer is faced with a public emergency situation and the city has asked to use the bank's lobby as a triage center. He must make a decision that will balance the firm's social responsibility to the community and to its stakeholders. Solutions are offered by Marcus and Dunne who refer to humane assistance during a crisis and the generation of goodwill.

The HBR fictional case study and the views of two experts are presented. An executive's ability to manage the company after the death the chief executive officer is being questioned. Voyage Capital venture partner Bruce Chizen says that the executive should gain support from colleagues by asking for advice. Benton Management Resources' executive coach Debra Benton, author of the book "CEO Material: How to Be a Leader in Any Organization," comments on the promotion. INSET: READERS' INSIGHTS.

A week before Christmas, Tim O'Connell, a manager at Driscoll Software, gets a call from Hybara Casinos. The former client's system has crashed, and the company wants to be rescued by New Year's Day. The project will generate much-needed revenue, but it involves six weeks' worth of work crammed into two -- and over the holidays, no less. Tim's star programmer, Alessandra Sandoval, quit several months earlier, and the rookie Kristen Hammersmith has taken her place. Should Tim contract the project out to Alessandra or trust Kristen to lead the team? He should hire Alessandra immediately, says Michael Schrage, a researcher at Sloan School of Management's Center for Digital Business. Kristen is in over her head. But more important, Tim is a shockingly poor manager. Carol A. Walker, the founder and principal of the consulting firm Prepared to Lead, agrees that Tim isn't doing his job and outlines a scenario whereby he demonstrates his confidence in, and support for, Kristen and prepares her to succeed. Paul Muller, Hewlett-Packard's vice president of strategic marketing for software products, says that in this severely condensed time frame, Driscoll and Hybara need to assess the risks and costs involved in rushing the project. If they decide to go ahead, Tim should empower Kristen to lead. [ABSTRACT FROM AUTHOR]

A project manager with a talent for creating dashboards, David is frustrated by his repressive, micro-managing boss, Thaddeus -- aka "the Commodore." Thaddeus drones on about the high point of his own (now stalled) career, calls unnecessary last-minute meetings, and tries to one-up his direct reports -- while bending over backward to honor an intern's filing job. David has managed to impress Irving, the EVP of Finance Europe, enough to receive a job offer, but it's a lateral move with no increase in pay. What should he do? He should stay where he is, at least for now, says Gini Graham Scott, an author, consultant, and motivational speaker. Meanwhile, he can form a supportive network of colleagues, make a special effort to find pleasures outside of work, and even attempt -- non-confrontationally and subtly -- to improve his relationship with the Commodore. Brad Gilbreath, formerly a human resources manager and now an assistant professor at Colorado State University, advises David to escape from Thaddeus in the interest of his own health. Research shows that bosses' behavior can lead to high blood pressure or psychiatric problems in their subordinates. By learning how to set boundaries, says Lauren Sontag, the president of a consulting firm specializing in executive coaching, leadership development, and talent management, David might be able to improve his relationship with Thaddeus. But accepting Irving's offer would provide more room to maneuver and advance. Alternatively, David might propose a dashboard "center of excellence" to serve both Thaddeus and Irving. [ABSTRACT FROM AUTHOR]

Abstracts are presented for several articles in this issue of the "Harvard Business Review" which includes the fictional case study "The Knowledge Workers' Strike," by Jon Healey with commentary from Richard L. Trumka, Richard B. Freeman, and Jeffrey Anderson, a conversation with architect Ellen Dunham-Jones, and "Restoring American Competitiveness" by Gary P. Pisano and Willy C. Shih.

ReliantShare Bank is about to receive $5 billion in U.S. federal assistance. After all the negative publicity, CEO Ben Marshall knows he needs to deliver a positive message to customers and the market. His chief customer officer, Ammon Rodriguez, proposes an ad campaign thanking the taxpayers for their "investment." CFO Vernon Scott argues instead for focusing investors' and opinion makers' attention on the bank's recapitalized balance sheet and future growth prospects. What message should ReliantShare send to restore the public's confidence? An effective thank-you campaign, says University of Miami professor Michael McCullough, would need to include a clear statement of the bank's intention to translate the $5 billion into increased capacity to serve the public. But, he adds, if Ben isn't willing to eat a little crow, then Vernon is right -- they'd be better off keeping their gratitude to themselves and quietly rebuilding their business. Brunswick Group chair Alan Parker asserts that ReliantShare must show contrition and acknowledge its role in creating the mess it's in -- though that won't be enough. The bank will probably also need new leadership. Parker suggests that Ben get ahead of events and orchestrate a clean, orderly departure by publicly expressing his regret for shareholders' losses, ensuring that ReliantShare executives aren't walking off with extravagant bonuses, and tendering his resignation. C. William Pollard, former chair and CEO of ServiceMaster, says that Ben would make things worse if he resigned, because a new leadership team would take too much time to get up to speed. But Pollard does think that some heavy-duty PR is in order -- not a campaign simply expressing gratitude, but one that emphasizes stewardship, transparency, and a restoration of trust. [ABSTRACT FROM AUTHOR]

Abstracts are presented for several articles in this issue of "Harvard Business Review." The cover story "What Only the CEO Can Do" is by A. G. Lafley. The HBR case study "World-Class Bull" is by John Humphreys, Zafar U. Ahmed, and Mildred Pryor. "Is Your Growth Strategy Flying Blind?" is by Mehrdad Baghai, Sven Smit, and Patrick Viguerie.

When Chris Knox, a top salesperson at Specialty Fleet Services, volunteers to go after the business of Armadillo Gas & Power, he decides to try a new approach. After all, no one else from SFS has succeeded with Dale Landry, Armadillo's CFO. Knox shows up at Landry's ranch, asks to photograph his beloved bull, presents the photo as a gift to Landry's wife, and engineers several other encounters before Landry learns that Knox is anything more than a charming young man. Not long after he reveals his position at SFS, Knox wins the account. Sales VP Jeremy Silva e-mails the sales team, praising Knox's maneuvers. But the human resources vice president thinks that Knox breached the company's ethics code. Does Knox deserve a reprimand? Kirk O. Hanson, the executive director of the Markkula Center for Applied Ethics, believes that Knox went astray not by trying to share a potential client's passion but by treating the Landrys as a means to an end -- deceiving them and violating their personal space along the way. There's a big difference between deceiving competitors and deceiving customers, explain consultants Don Peppers and Martha Rogers. SFS needs to clarify this difference in its ethics code, apologize to Landry, and fire Silva, who demonstrated in hitting the "send" button that he does not understand the policies and behaviors that build shareholder value. James Borg, a business psychologist and author, argues that Knox didn't coerce Landry into buying SFS's services but instead simply got the CFO's attention and let his persuasive techniques do the rest. Whereas coercion and manipulation satisfy the needs of only one party, persuasion is about achieving a positive outcome all around -- exactly what Knox accomplished. Armadillo got a superior product, and SFS won a new customer. [ABSTRACT FROM AUTHOR]

Eliot Robbens is the CEO of TrakVue,a spinout launched two years ago with highly ambitious financial projections. His vice president of sales has just quit after only six months, becoming the second sales VP that Eliot has lost. The company is a year behind in achieving its results, and Eliot has a board meeting coming up in just a few days. Where to turn? His old friend Amory declines to advise him and suggests executive coaching. An affable squash opponent counsels that he save himself by landing a couple of big accounts. His beloved wife offers a vaguely Zen exhortation. How can Eliot get genuine help? Jaithirth Rao, an IT entrepreneur and the founder of MphasiS, has experienced Eliot's difficulty himself. He calls it "the myth of the self-reliant leader." Rao cautions that colleagues¿ own agendas may color their advice and that executive coaches may fail to perceive the ambiguities in a situation. A formal network of peers can be powerful, he says -- as can a loyal and perceptive assistant. Susan J. Ashford, a dean and a professor at the University of Michigan's Ross School of Business, suggests that the biggest challenge for Eliot is developing greater learning agility. He must admit his weaknesses, share his concerns with colleagues and the board, and create a company culture in which input is valued. Stephen J. Socolof, a founder and a managing partner of New Venture Partners, says that Eliot should acquire an active network of mentors and should regularly ask for help from the board, which will appreciate being kept in the loop. [ABSTRACT FROM AUTHOR]

Josh Lewis, a young staffer at Rising Entertainment, is frustrated because his boss, marketing chief Sarah Bennett, won't listen to his ideas about using new media to promote films. She's trapped in the 1990s, he thinks, when people actually watched network TV! Rushing through his assignment for a team presentation, he works up a plan and pitches it to the CEO in the hallway. The CEO loves it, but Sarah is upset with Josh for going over her head -- and submitting subpar work on the presentation. How can these members of two different generations work together effectively? Clashes between impatient Generation Y and pay-your-dues Generation X are inevitable but certainly manageable, says Ron Alsop, author of The Trophy Kids Grow Up. For starters, Sarah should reprimand Josh for bypassing her; he should respect her authority and work with her, not around her. But Sarah must address Josh's frustrations. Like many Gen Yers, he wants to know that his work is meaningful, and he needs constructive feedback on suggestions. Enterprise Rent-A-Car president Pamela Nicholson says that given the CEO's enthusiasm, Sarah should commend Josh's initiative but remind him to keep her in the loop. Sarah and Josh also might be able to forge a more productive relationship if Rising Entertainment set up training and feedback programs to help integrate Gen Yers into the workforce, as Enterprise has. Jim Miller, an executive VP at General Tool & Supply, thinks Josh put his team in jeopardy by doing his assigned tasks poorly. Sarah needs to coach him on being a team player and set clear expectations about performance and communication. However, she could have done a much better job of validating his good idea -- perhaps by asking him to spearhead some experiments for the group. [ABSTRACT FROM AUTHOR]

Henrietta Mercer, the senior vice president for human resources at LaSalle Chemical, is facing a challenge unprecedented in her career: Steve Ambler, recently appointed the company's group sales director, has decided to change his gender identity. Before Henrietta can finish crafting a corporate response, someone slips a copy of her confidential memo to the executive committee to one of Steve's colleagues, whose outraged reaction suggests the difficulties that may lie ahead. How can she help him transition in a workplace where not everyone is on board with the plan? Linda E. Taylor, the director of work life, equity, and inclusion at Raytheon Missile Systems, advises Henrietta to offer lots of gender identity training. When Raytheon employees question the morality of condoning transgender choices, she replies that the company doesn't pass judgment on its employees' private lives and that working for Raytheon means adhering to its policy of inclusion. Ronald K. Andrews, a vice president and head of human resources at Prudential, says it is crucial to work very closely with the person transitioning and points out that the individual's courage may be what most strikes colleagues. Prudential held a meeting to educate account executives and provide them with talking points before they spoke directly to key clients -- not one of whom was lost. Stasha Goliaszewski, a scientist and engineer at Boeing, started her gender transition after four years with the company. HR support helped with other employees, and her professional expertise helped when she called on customers. She advises large companies to prepare their gender-identity policies and not be caught off guard, as Henrietta was. Statistics show that, sooner or later, they are bound to encounter the issue. [ABSTRACT FROM AUTHOR]

Abstracts are presented for several articles in this issue of "Harvard Business Review" including: the cover story "Winning the Race for Talent in Emerging Markets"; the fictional case study in management "When Your Colleague Is a Saboteur"; and an interview with John Chambers.

Mark Landstad, relatively new to CliffBank's investment banking division, has a veteran teammate, Nicole Collins, who appears to be a reliable ally. However, when Mark needs her help in locating vital information for his part of a presentation they will be doing together, she feigns ignorance. During the meeting, Nicole produces the data out of the blue and wows the attendees with her analysis. Knocked off balance by the sabotage, Mark clumsily seeks advice from his boss, who is a brick wall when it comes to interpersonal dynamics. How should Mark deal with his backstabbing colleague? Maggie Craddock, president of Workplace Relationships, classifies Mark as an anxious pleaser, one of four power styles identified by her firm's research. She surmises that Mark is actually sabotaging himself and recommends that he address his dilemma by first examining his own modus operandi. R. Dixon Thayer, former CEO of I-trax and himself once the victim of coworker sabotage, has empathy for Mark. However, he criticizes Mark's hasty, open-ended way of approaching his superior. Thayer lists four "rules for boss engagement" that Mark should follow, beyond proving that his sneaky colleague won't stop him from getting results at CliffBank. Deborah Kolb, of the Simmons School of Management, contends that Mark does not yet understand his division's culture well enough to know whether Nicole's behavior is the rule or the exception. Only by overcoming his political and interpersonal naiveté, she argues, can he learn how to negotiate relationships in his new setting. [ABSTRACT FROM AUTHOR]

Since the mid-1990s, management-metaphor boutique Serendipity Associates (SA) has been offering clients sizzling similes and snappy sound bites. But the head of SA, Barton Brady, gets word that someone is now poaching in his territory. It's the low-rent operation Tropes R Us, which has started offshoring production to Ireland and will soon flood the market with high-quality, low-cost metaphors. Does this move confirm Brady's fear that the U.S. is losing its competitive edge in right-brain work? Four experts comment on this fictional case study. Daniel H. Pink, an author and consultant, says SA should move to higher ground -- to find new ways to differentiate itself on the basis of right-brain capabilities that will be difficult to offshore. Doing this, he writes, requires an education system that nurtures creativity. John Chuang, CEO of talent consulting firm Aquent, writes that Brady could rally U.S. citizens to protest the country's current immigration policy, which makes it difficult for companies to import top talent. Brady should also broaden the definition of SA's business. Richard Phelps, a human resource executive at PricewaterhouseCoopers, argues that contrary to the prevailing view of many in the West, workers in emerging economies are equal to the demands of creative work. SA should assemble the best right brains on the planet and either hire them or contract with them to represent the SA brand. Charlie Wrench, the CEO of brand and design consulting firm Landor Associates, advises Brady not to worry about his country -- which Wrench believes will continue to attract a disproportionate share of the world's creative talent -- but about his multinational clients, who need service providers to display a powerful combination of right-brain and left-brain skills. [ABSTRACT FROM AUTHOR]

The article contains summaries for nine featured articles in this issue of "Harvard Business Review." The cover story is "Leadership's Online Labs," by Byron Reeves, Thomas W. Malone, and Tony O'Driscoll. The HBR fictional case study, "Will Our Customers Bail Us Out?," is by David Silverman with comments from Jim Marsh, Rick Rickertsen, Richard Charkin, and Kimberly D. Elsbach. "The Science of Thinking Smarter" is an interview with John J. Medina. "The Customer-Centered Innovation Map," is by Lance A. Bettencourt and Anthony W. Ulwick.

The Clarinda Company is struggling and may go under. Its main customer has just pulled out, taking a quarter of the typesetting firm's revenues with it, and David, Clarinda's president, has had to lay off 20% of his workforce. What's more, he's also had to fire Dan, his longtime partner and mentor, for drunkenness. How much of this should David share with the others in his small customer base? He'd like to get their help in selling the firm -- but will they all bail if they know just how leaky the ship has become? Four experts weigh in on this case study, based on the author's real-life entrepreneurial travails, recounted in his recent book, Typo: The Last American Typesetter or How I Made and Lost 4 Million Dollars. Tell all, says Jim Marsh, drawing from his own experience as CEO of a division of Cable & Wireless. By sharing both financial information and a turnaround plan, Marsh gained the trust and support of major customers, who gave his unit a second chance. Don't panic, says Rick Rickertsen, a principal at a private equity firm, and don't necessarily sell the business. Share only what will become common knowledge, ask no favors, and don't mention Dan. Instead, get back on your horse and try to save the company. Don't lie, says British publishing executive Richard Charkin, but don't tell the whole truth, either. Sell, by all means: Tell customers you¿re looking to refinance the company (selling is a form of refinancing) and invite them to take a stake. Don't tell customers everything, says professor Kimberly D. Elsbach, who has taught Silverman's book in her first-year MBA classes at the University of California, Davis. Elsbach suggests that David is misguidedly inclined to reveal all because he is confusing competency-based trust with interpersonal trust. [ABSTRACT FROM AUTHOR]

Amp Up, a wildly popular electronic-music game, is the brainchild of KMS's cherished programmers, who now spend their time trying to keep customers dazzled with upgrades. But a couple of start-ups have ripped off the idea using their own code -- which is open source. Now they're demanding that KMS float with the rising tide and join the open-source community. How could the company make money without its IP? And why should it try? Four experts comment on this fictional case study. Jonathan Schwartz, the CEO of Sun Microsystems, says that if KMS is confident it knows what its customers will want next -- and if it's content with a small corner of the market -- it should stay proprietary. But it will pay a reputational price. Eric Levin, the executive vice president of Techno Source, suggests that KMS take a middle path: license its software to third-party companies and add features to promote community building. This approach could fund itself through royalties or fees and would allow KMS to approve or veto third-party products. Gary P. Pisano, of Harvard Business School, points out that an open-source strategy could increase Amp Up's rate of improvement, enhance users' satisfaction with the game, and reduce KMS's development costs. But if the company stops competing on the basis of its code, it had better be sure of the strength of its downstream capabilities. Michael J. Bevilacqua, of the law firm WilmerHale, warns that KMS risks greater liability for intellectual-property infringement if it joins the open-source community, where code carries no guarantee that it doesn't infringe on someone's IP rights and providers offer no indemnification. [ABSTRACT FROM AUTHOR]

Each of Lilypad's boutique hotels has its own sense of place and definition of customer experience. Though loyal to their favorites, guests don't visit other luxury properties in the collection or even realize they're affiliated. To boost the lifetime value of existing customers and reach new ones, CEO Andre Cleary is thinking about positioning the hotels more directly under the corporate umbrella. The company could gain scale efficiencies and possibly increase visits -- but does one brand really fit all? Four experts comment on this fictional case study. Horst Schulze, the CEO and president of the West Paces Hotel Group, says that Lilypad must build up its corporate brand to create long-term value. This would also help the company become more efficient at cross-promoting properties, offering services, and buying supplies in bulk. Jill Granoff, the executive vice president of direct brands at Liz Claiborne, says that the financial risks of putting the Lilypad name front and center may outweigh the potential rewards. The company should instead market its hotels more aggressively to travel agents and selectively acquire new properties to propel further growth. Kevin Lane Keller of Dartmouth argues that Lilypad must clarify what its brand represents before giving it any more emphasis. Rather than making significant changes in the rooms themselves, which could weaken the individual brands, management should coordinate behind the scenes to improve cross-sell numbers. Jez Frampton, the global CEO of the consultancy Interbrand, thinks Andre should systematically examine the brand in terms of Lilypad's customers and culture. That means conducting market research and moving away from the current "warlord" approach of managing each property as a separate fiefdom. [ABSTRACT FROM AUTHOR]

The article presents summaries of nine articles in this issue of "Harvard Business Review." The HBR fictional case study, "How to Change the World," by Howard H. Stevenson, includes the comments of four experts: Laura Scher of Credo Mobile; Daniel Vasella of Novartis; Barbara H. Franklin; and Christina C. Jones of Extend Fertility. An HBR interview, "Giving Great Advice," is with Bruce Wasserstein, the chief executive officer at Lazard. Other articles include: "Putting Leadership Back into Strategy," by Cynthia A. Montgomery; and "Why Mentoring Matters in a Hypercompetitive World," by Thomas J. DeLong, John J. Gabarro, and Robert J. Lees.

Alan Wilson has a decision to make. The CEO of his company, Grepter, wants him to relocate to Zurich, where he can gain valuable experience for a rise to the top. Karl, his best friend, hopes to lure him to a hedge fund that promises big money fast. Shiori, an enticing former girlfriend, wants him to join her in delivering medical care to patients in developing countries. Alan knows for sure only that he wants to make an impact. Four experts comment on this fictional case study. Laura Scher, the CEO of Credo Mobile, advises Alan to consider what each option will deliver in terms of money, power, quality of life, and -- most important -- personal values. As long as he brings his values into the workplace, any of the three could be the right choice. Daniel Vasella, the CEO of Novartis, cautions Alan to examine what truly drives him, personally and professionally. All things considered -- not least the potential hazards of working with a friend -- his future looks most promising at Grepter. Barbara H. Franklin, the CEO of an international trade consulting and investment firm, thinks Alan would do well to join Shiori's enterprise. The experience with social policy might draw him to public service, where his impact on society could be significant. Christina C. Jones, the CEO of Extend Fertility, has also faced a variety of choices combined with an urge to do meaningful work. She believes that Alan should cultivate his skills at Grepter while developing a firmer notion of what he wants to be and do. [ABSTRACT FROM AUTHOR]

Venerable Detroit automaker Atida Motors has a new call center in Bangalore that the company hopes will raise its reputation for customer service. But it doesn't appear to be doing so yet. Complaints about the Andromeda XL -- the hip new model Atida hopes will capture the imagination of Wall Street -- are flooding the call center. Call backlogs are building, and letters of complaint are piling up. One loyal Atida customer is so upset about getting the brush-off that he's not only talking to a lawyer but threatening to go on YouTube and take his case to the court of public opinion. In the internet age, does Atida need a new way to deal with unhappy customers? Tom Farmer, the creator of the unintentionally viral PowerPoint presentation "Yours Is a Very Bad Hotel," says that Atida needs to stop defining customer service solely as a response to bad news and nip problems in the bud by making online dialogue intrinsic to the brand experience. Nate Bennett, of Georgia Tech, and Chris Martin, of Centenary College, observe that Atida has violated its customers' sense of fairness within three dimensions -- distributive, procedural, and interactional -- thus increasing their desire for revenge. Lexus Vice President for Customer Service Nancy Fein thinks Atida isn't even in the ballpark when it comes to world-class customer service. She offers as an example a Lexus rep who drove 80 miles to deliver $1,000 to a stranded Lexus owner whose purse had been stolen. Barak Libai, of Tel Aviv University and MIT's Sloan School, suggests that Atida invest in a CRM system so that it can determine which customers have enough purchasing and referral value to be given the red carpet treatment and which should be gently let go. [ABSTRACT FROM AUTHOR]

Castlebridge & Company, a maker of high-quality outerwear, is a century-old British institution. Its headquarters remain in London, but most of its manufacturing has moved offshore. With the last domestic factory slated to close, the firm's executives struggle to preserve the "Britishness" of the brand. Four experts comment on this fictional case study. For historian Niall Ferguson, the plant closure is a logical step. The British public has been down this road, as have foreign consumers of British products. The real risk to the brand, Ferguson asserts, is the potential loss of its high-class cachet -- not its national identity. Fashion reporter Dana Thomas argues that by broadening their markets beyond the superwealthy, luxury brands have made themselves vulnerable to economic fluctuations. Cutting costs by moving production offshore is inevitable, so Castlebridge should, with characteristic British candor, come clean about it. If the firm shines light on its native roots and its international production, it could establish a winning reputation as a truly modern, global brand. Dov Seidman, CEO of LRN, takes issue with how Castlebridge has gone about the shift to offshore production. In a world where reputation matters more than ever, the firm can't just outperform competitors. It must "outbehave" them, by keeping its promises and acting in a principled manner. Seidman advises the company to rediscover and recommit to the core values that have brought it this far. Writer and consultant Gill Corkindale looks inside Castlebridge, focusing on the staff that will stay on as the company restructures. She recommends a trust-building people strategy, modeled by the CEO, that emphasizes forthright communication from management, as well as genuine solicitation of and response to the opinions of employees. [ABSTRACT FROM AUTHOR]

Flayton Electronics is showing up as a common point of purchase for a large number of fraudulent credit card transactions. It's not clear how responsible the company and its less than airtight systems are for the apparent data breach. Law enforcement wants Flayton's to stay mute for now, but customers have come to respect this firm for its straight talk and square deals. A hard-earned reputation is at stake, and the path to preserving it is difficult to see. Four experts comment on this fictional case study. James E. Lee, of ChoicePoint, offers lessons from his firm's experience with a large-scale fraud scheme. He advises early and frank external and internal communications, elimination of security weaknesses, and development of a brand-restoration strategy. Bill Boni, of Motorola, stresses prevention: comprehensive risk management for data, full compliance with payment card industry standards, and putting digital experts on staff. For the inadequately prepared Flayton's, he suggests consulting an established model response plan and making preservation of the firm's reputation its top priority. John Philip Coghlan, formerly of Visa USA, discusses the often-divergent positions of data-breach stakeholders and puts customers' interests first. Swift disclosure by Flayton's, he argues, would empower consumers to protect themselves against further fraud and might even enhance the company's reputation for honesty. Jay Foley, of the Identity Theft Resource Center, recommends that Flayton's emphasize quality of communication over speed of delivery. More broadly, he advocates cautious management to prevent data thefts, which are proliferating and could have long-term consequences. [ABSTRACT FROM AUTHOR]

Peachtree Healthcare has major IT infrastructure problems, and CEO Max Berndt is struggling to find the right fix. He can go with a single set of systems and applications that will provide consistency across Peachtree's facilities but may not give doctors enough flexibility. Or he can choose service-oriented architecture (SOA), a modular design that will allow Peachtree to standardize incrementally and selectively but poses certain risks as a newer technology. What should he do? Four experts comment on this fictional case study, authored by John P. Glaser, CIO for Partners HealthCare System. George C. Halvorson, the chairman and CEO of Kaiser Permanente, warns against using untested methodologies such as SOA in a health care environment, where lives are at stake. He says Peachtree's management must clarify its overall IT vision before devising a plan to achieve each of its objectives. Monte Ford, the chief information officer at American Airlines, says Peachtree can gradually replace its old systems with SOA. An incremental approach, he points out, would not only minimize risk but also enhance flexibility and control, and would allow IT to shift priorities along the way. Randy Heffner, a vice president at Forrester Research who focuses on technology architectures for computer-based business systems, thinks SOA's modular approach to business design would best meet Peachtree's need for flexibility. He says that Peachtree's CIO sees SOA as a new product category but should instead view it as a methodology. John A. Kastor, a professor at the University of Maryland School of Medicine, questions the goal of standardized care. He argues that it would be difficult to persuade doctors, many of whom are fiercely independent, to follow rigid patterns in their work. [ABSTRACT FROM PUBLISHER]

As the CEO of Hathaway Jones, an American luxury apparel retailer, Fred Westen has spent the past four years struggling to revamp his company's stodgy image and boost flagging sales. He's just announced an ambitious plan to elbow in on China's fast-growing luxury goods market when he gets a call from an old prep school friend. Fred agrees to meet his friend's daughter, Mimi Brewster, to see whether she might be able to head up the company's flagship store in Shanghai. Fred is impressed by Mimi's CV, and the interview goes off without a hitch, but a routine Google search turns up information about her that could affect the company's performance in China. News stories and photos reveal that when Mimi was fresh out of college, she'd participated in nonviolent but vocal demonstrations--including one in front of China's San Francisco consulate--against the World Trade Organization. As the vice president of HR urges caution, Fred ponders hiring practices in the digital age. He knows that nothing is secret anymore--especially among younger people, who brazenly post the most intimate details of their lives for the world to see. If he hires Mimi, and her past conduct becomes widely known, his company's expansion overseas could be set back. But rising stars like Mimi don't walk in the door every day. Should Fred hire her despite her online history? Commenting on this fictional case study are John G. Palfrey, Jr., a professor and the executive director of the Berkman Center for Internet & Society at Harvard Law School; Jeffrey A. Joerres, the CEO of Manpower; danah m. boyd, a doctoral candidate at the University of California, Berkeley, and a corporate adviser; and Michael Fertik, the CEO of ReputationDefender. [ABSTRACT FROM PUBLISHER]

Edward Bennett has done wonders at Astar Enterprises. In the 15 years he's been CEO, the company has more than tripled in size through product-line extension and disciplined acquisitions and is now distributing its cleaning, personal hygiene, and skincare products nationwide. But Astar's chief executive is 64 years old, and while all his attention is taken up with a new strategy to expand into international markets, board members are becoming increasingly worried about the issue of succession. Bennett wants none of it, arguing that if he were to die suddenly, his second in command, Tom Terrell, could takeover. Besides, after much prodding, Bennett, former vice chairman Vincent Dalton, and longtime HR head Gail Thompson have already come up with a list of four possibilities. "When will these guys backoff?" Bennett complains to Thompson. "I've told them who the candidates are. Why do we need to talk about it?" Thompson knows, however, that the board chairman, Tom Calloway, considers Terrell a nonstarter without the requisite skills to take over in anything more than an interim capacity. As for the other three candidates, only one is even known to the board, and none has any significant international experience. Calloway is well aware of how critical Bennett is to Astar. But he's equally certain that the board risks failing in its fiduciary responsibilities if it doesn't create a viable succession plan. What should Calloway and the board do if Bennett refuses to cooperate? Commenting on this fictional case study are John W. Rowe, the executive chairman of Aetna; Edward Reilly, the president and CEO of the American Management Association; Jay A. Conger, a professor at Claremont McKenna College and London Business School; and Douglas A. Ready, a visiting professor at London Business School; and Michael Jordan, the CEO of EDS. INSET: Who's on Deck?. [ABSTRACT FROM AUTHOR]

The article provides abstracts for several articles in this issue. The cover story is "Ten Ways to Create Shareholder Value," which is written by Alfred Rappaport. The case study on leadership is "Indispensable," by John Beeson. Articles on organization and culture include "The Decision to Trust," by Robert F. Hurley and "Rethinking Political Correctness," by Robin J. Ely, Debra E. Meyerson, and Martin N. Davidson.

Fusilier Technology is in disarray. Its vice president of sales is leaving, the company's new growth strategy to sell customized business solutions has stalled, and sales have been flat for five years. Bill MacLeod, Fusilier's CEO, has to choose between two very different candidates for the top sales job: a veteran sales director who has excelled under the old order and a brash outsider who has experience selling solutions but doesn't know the industry. With an outside board director pressuring him to accelerate the pace of change, MacLeod ponders which candidate can best help the company make the transition. Fusilier's new solutions strategy has made the decision that much more difficult. Under this model, the company must revamp its incentives, training, and processes for deploying the sales force. Historically, compensation has been based largely on an individual rep's results, and sales training has focused on product features and cost-performance advantages, not on the business issues facing customers. Now salespeople need to understand, promote, and select from an entire portfolio of products and services offered both by Fusilier and by its business partners. What's more, they need to collaborate with Professional Services, the new consulting unit whose mission is to jump-start the solutions-centric approach. Whom should MacLeod hire for the top sales job, and what should he do to put Fusilier back on a growth track? Four experts comment on this fictional case study: Alston Gardner, founder of OnTarget, a sales training and consulting firm; Steve Kerr, a managing director and the chief learning officer of Goldman Sachs; Randall D. Kelley, a partner of the executive search firm Spencer Stuart; and Andrea L. Dixon, an associate professor of marketing at the University of Cincinnati. [ABSTRACT FROM PUBLISHER]

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? Four expert commentators--consultant and author Marcus Buckingham, Harley-Davidson's Joanne Bischmann, former Oticon CEO Lars Kolind, and Umeå University School of Business professor Tomas Blomquist--offer their advice in this fictional case study. [ABSTRACT FROM PUBLISHER]

The article presents abstracts of several articles from the issue. Articles include the cover story is "Home Depot's Blueprint for Culture Change," by Ram Charan, the fictional case study, "How Low Will You Go?," "Sparking Creativity at Ferrari," and others.

When Bob Carlton decided to expand Opti-Motors, the Alabama engine-parts manufacturer he had founded, he knew he'd have to take on a lot of debt. So he followed a headhunter's advice and hired Galen McDowell to bring new energy to sales. No question, Galen knew how to sell. He quickly hooked a big-league outfit, Kinan Motors, as a potential customer. He invited their representatives to come take a tour of the company and, while they were in town, visit the Red Ruby Club. The Red Ruby? That's a strip club. Galen assured Bob it was upscale and full of business people. He said his reps had often made use of the club to woo important accounts away from rivals. As if to prove his point, Kinan quickly signed a multimillion-dollar contract with Opti-Motors after the visit. Then April Hartley, Bob's first salesperson, quit. She had been trying to build relationships with customers, but the really big accounts, it seemed, were looking for "more exciting stuff" than she could give them. Now Joan Warren--another saleswoman, and one who would happily close a deal anywhere she got the chance--is complaining because Galen won't let her go to the Red Ruby with him. "I won't stand by and be disadvantaged simply because I'm a woman," she says. When does client entertainment cross the line? Four experts discuss this fictional case study: John Brown, the director of institutional sales and customer relations at Fortis Investments; Katherine Frank, a former dancer who is now an author and postdoctoral fellow at the University of Wisconsin-Madison; Das Narayandas, a professor of business administration at Harvard Business School; and Denise Rousseau, a professor at Carnegie Mellon's Heinz School of Public Policy and Tepper School of Business. [ABSTRACT FROM PUBLISHER]

The article provides abstracts for several articles that were published in this issue. The cover story, "Connect and Develop: Inside Procter & Gamble's New Model for Innovation," is written by Larry Huston and Nabil Sakkab. Diane Coutu interviews Joseph Badaracco, Jr., the John Shad Professor of Business Ethics at Harvard Business School, about what leaders can learn from literature. The fictional case study, "Eliminate the Middleman?," features the advice of four executives, and more.

HBR CASE STUDY. Greg Jamison, the head of global sourcing at USTech, has a complicated situation on his hands. The U.S. consumer electronics giant has long outsourced much of the design and production of its branded offerings to TaiSource, an original design manufacturer, or ODM, in Taiwan. TaiSource, in turn, has moved most of its manufacturing to Beijing, giving USTech many of the cost benefits – and none of the hassles –of sourcing in China. But commodity producers are squeezing USTech's margins, and higher-end rivals are gaining market share, forcing the company to rethink its sales strategy in China and its relationship with TaiSource. Greg values the close bond his firm has forged with the ODM, but he knows the sole-source model has become an anomaly in the industry. And other USTech executives want to explore direct sourcing in China and learn about other Taiwanese ODMs, known for their high quality. When Greg hires a longtime TaiSource employee to get a feel for the fast-growing China market and scout out other suppliers in China and Taiwan, relations between the two companies start to fray. Moreover, there are signs that TaiSource plans to market its own branded goods in China. Will TaiSource and USTech end up as competitors? How can USTech protect its relationship with TaiSource while it explores sourcing and sales opportunities in Asia? Commenting on this fictional case study are Bruce K. Riggs, the senior vice president for operations and customer care at Gateway in Irvine, California; Barry C. Lynn, a senior fellow at the New America Foundation in Washington, DC; Wang Dongsheng, the chairman and CEO of BOE Technology Group in Beijing; and Paul Gaffney, the executive vice president for supply chain at Staples in Framingham, Massachusetts. [ABSTRACT FROM AUTHOR]

As Paul Kennedy sits in Cleveland's endless morning traffic, his thoughts are going in all sorts of directions, even if he's not. He's worried about his wife, who may be coming down with a cold right before their wedding anniversary. He's worried about the pitching and fielding assignments he'll have to make for tonight's Little League game. He's worried about the health of his boss, Larry, who recently had a heart attack. He's worried about his associate, Lisa, whose mother is ill and whose work is slipping. He's worried about the Cleveland Browns. He's excited too, though, about his plans to expand Daner Associates into Europe and the reorganization he's recommending, which would take a load off Larry by ceding day-to-day operations of the new media company to a new CEO--probably Paul, from all the hints he's heard. "I could swear Larry's been doing the nudge-nudge, wink-wink in my direction," Paul says to himself. And why not? He's been there for ten years; he knows every facet of the operations. Customers, vendors, and employees love him. But when he meets with his boss that afternoon, Paul's in for a rude shock. Larry's considering hard-nosed George for the top slot and Paul for the number two role. Paul has many of the right ingredients to be CEO, Larry explains, but he's got to get tougher. "What does that mean?" Paul thinks indignantly, back in traffic, on the way home that night. "Become an absolute jerk like George?" What can Paul do to show he's CEO material? Four experts--Google CEO Eric Schmidt, author Stephen R. Covey, AVL North America CEO Don Manvel, and executive coach Maggie Craddock--comment on this fictional case study. [ABSTRACT FROM AUTHOR]

Nutrorim's products have been gaining national attention. In particular, sales of the company's organic, performance enhancing sports supplement powder, ChargeUp, have gone through the roof. Now the new and improved version, called ChargeUp with Lipitrene, has recently hit the market, and expectations are high. CEO Don Rifkin has tried hard to build an inclusive, democratic culture at this successful company. But the organization's open decision-making process has proved problematic, especially during times of conflict and crisis--and a crisis there is. Several months after ChargeUp with Lipitrene is initially released, an investigator from the Minnesota state department of health calls Rifkin to report "11 cases of gastrointestinal distress" among those using the supplement. Nutrorim's top executives must now decide whether to recall the product or not. The head of R&D, Steve Ford, insists there is nothing wrong with the new ChargeUp, citing elaborate toxicity studies in animals and humans. Meanwhile, the heads of PR and legal want to stem any negative publicity by recalling the product and issuing a press release to that effect. The company decides to recall the supplement--but, two weeks later, the health department investigator calls back with good news: The people who had become ill, it turns out, had actually picked up a bug from their gym's smoothie bar. In other words, Nutrorim is exonerated. But the close call is so close that a consultant is brought in to review the company's methods for making decisions. Among the many questions he's asking is, What's the right decision-making process for Nutrorim? Commenting on this fictional case study are Christopher J. McCormick, the president and CEO of L.L.Bean; Hauke Moje, a partner at Roland Berger Strategy Consultants; Ralph Biggadike, a professor of professional practice at Columbia Business School; and Paul Domorski, the vice president of service operations at Avaya. [ABSTRACT FROM AUTHOR]

It's the busiest time of year for North Pole Workshops. Production is in high gear, and the elves are on overtime in the sprint toward Christmas. But an unexpected spike in demand for one toy may leave children around the world disappointed on Christmas morning, whether they've been naughty or nice. At the same time, another toy's popularity threatens to plummet, leaving Santa and his elves faced with the prospect of millions of unloved playthings left in the warehouse. This is the third time in three years that Santa's elves have been caught off guard by a toy's sudden surge in popularity. Earlier in the season, even just a month ago, it would have been possible to find capacity, but now every line is running full tilt. "Oh, it used to be so simple," Santa ruminates. "Wooden blocks, a train set, a doll...Now we have more than a million SKUs...Trends jump across the oceans in an instant. I've asked the elves in the field to go beyond reporting on kids' behavior and start trend spotting. I've invested in software. But still I can't help thinking that one of these days we're not going to be able to do it" Santa and his staff are determined not to disappoint the children, but North Pole Workshops must find a way to improve its response to shifts in demand. Should Santa invest in better forecasting? Or does the answer lie in a more flexible supply chain? Commenting on this fictional case study are M. Eric Johnson, the director of the Glassmeyer/McNamee Center for Digital Strategies at Dartmouth's Tuck School of Business; Horst Brandstatter, the owner of Playmobil; Warren Hausman, a professor of operations management at Stanford University; and Anne Omrod, the CEO of the consulting firm John Gait Solutions. [ABSTRACT FROM AUTHOR]

The article contains abstracts of nine articles which are featured in this issue. The cover story, "Innovation Versus Complexity: What Is Too Much of a Good Thing?," is written by Mark Gottfredson and Keith Aspinall. The case study of a fictional management dilemma is written by Eileen Roche and is titled "Riding the Celtic Tiger." The views of Herbert Benson are the subject of "Are You Working Too Hard? A Conversation with Mind/Body Researcher Herbert Benson." Robert C. Merton is the author of "You Have More Capital than You Think."

John Dooley, BioSol's vice president of strategic research, has been making a name for himself at the biotechnology company's offices in Ireland, He's been doing so well, in fact, that the firm has offered him a promotion to director of strategy at headquarters--in California. He's lived abroad before. In the 1980s, making a living in Ireland was tough: jobs were scarce and unemployment was high. So John and his wife, Fiona, moved to Massachusetts, where John attended MIT. They were not alone; many of their friends and family members also moved out of Ireland then. John and Fiona enjoyed their time in Boston; they became active in a large expatriate community and established reputations in their professional fields. By 1999, however, the Celtic Tiger was running at full speed. The Irish economy was booming and the whole country seemed to be bursting with possibility. When John was offered a job at BioSol's Dublin subsidiary, he and Fiona moved home and never looked back-until now. The new promotion would give his career a huge boost, but accepting it would mean uprooting his family and becoming an expat again. Ireland's economy is going strong now, but what if it doesn't last? Should John cast his lot with his country or his company? Commenting on this fictional case study are Raj Kondur, the CEO of Nirvana Business Solutions in Bangalore, lndia; James Citrin, a senior director at Spencer Stuart in Stamford, Connecticut; Maurice Treacy, the director of biotechnology at Science Foundation Ireland in Dublin; and Arno Haslberger, who teaches HR management at Webster University Vienna in Austria, and Sharman Esarey, also based in Vienna, editor of the annual report of the Organization for Security and Co-operation in Europe. [ABSTRACT FROM AUTHOR]

Jack Emmons, the CEO of Voici Brands, knew his apparel company needed a supply chain overhaul. Over the past couple of years, sales had dropped because of late deliveries, stock-outs, and other supply problems. Meanwhile, a major competitor had significantly reduced its time to market and boosted its bottom line by outsourcing all its product lines to a dazzlingly eflicient "supply chain city" in Shanghai. Unfortunately Jack's company was just too decentralized to use the supply chain city. Each of Voici's five units was like a subsidiary, with its own legacy, management, and suppliers. The unit heads (particularly Margie Rosen) wouldn't sit still for a supply chain consolidation; they had worked too hard to forge vendor relationships. Inspired by a magazine article, Jack decided to appoint a supply chain czar to oversee changes in logistics and procurement. He could hire Ravi Chandry, an aggressive outsider who had centralized supply chain operations for the world's second-largest snack food and beverage company. Or he could promote Tony Rini, a highly capable, trustworthy Voici veteran who had no experience consolidating supply operations but could win hearts and minds. Ravi told Jack that only a Rottweiler could do the job right. Tony lobbied for a more cautious approach: Start with low hanging fruit, get a few quick wins, then move on to other areas. What kind of leadership will get Voici's units to pull together? Commenting on this fictional case study are Shakeel Mozaffar, group vice president of Global Supply Chain at ICI in London; Robert W, Moffat, Jr., senior vice president of Integrated Supply Chain at IBM; John D. Blascovich, a vice president of Chicago based A.T. Kearney and head of its sourcing practice in North America; and Nick LaHowchic, president and CEO of Limited Logistics Services, an internal service subsidiary of Limited Brands in Columbus, Ohio. [ABSTRACT FROM AUTHOR]

The article presents reprint information and abstracts for 15 articles published in the July-August 2005 issue. Among the articles that are abstracted are "Toward a Theory of High Performance," "When Failure Isn't an Option," "Designing High-Performance Jobs," and others.