Rudy Guiliani: The Man and His Moment

Earlier Years:
From an early age had developed a stark sense of right and wrong. This arguably may have been what
pushed him to pursue a career in law enforcement. Described as using the law to determine right and
wrong, crime and punishment. Referred to as a priest in a pinstriped suit.
Nominated as Associate Attorney General. Decided that he wanted to go back to NY so took position as US
Attorney for the Southern District of NY.
By the time he reached his mid-forties had established a reputation as a man tough on crime and ruthless in
his quest to enforce the law.
Ran for mayor in 1989 and lost to David Dinkins. Ran again in 1993. Focused on economic reform and
crime reduction (the key issues in NYC at the time) and he adapted a zero tolerance stance on crime. Was
elected mayor in 1993.
As Mayor:
Was a hands on administratorrarely was there an emergency in the city when the mayor didnt
make his presence felt. An example of this is the role he played after the crash of TWA Flight 800. He had
a friend on the plane and he remained with the victims families through out the processdemanding
information and personally breaking the news to them. In such instances, people could see him as one of
them.
Also anticipated and planned for emergencies which was crucial to his ability to deal with the 9/11 crisis.
o After being elected he immediately created the Office of Emergency Management which eased
turf battles between agencies and improved preparedness
nd
By his 2 term his ego had clearly evolved and public opinion consequently went down. He was referred to
as an animal, and as obnoxious and arrogant Part of this was because he stuck to his principlesthere
were no gray areas: good or bad, right or wrong, end of story. This is demonstrated in the way that he
continued to back the police officers in the Diallo case despite the uproar from New Yorkers.
Towards the end of his term two personal issues brought him great attention: his prostate cancer and his
girlfriend outside of marriagesome felt a new compassion for a man with whom they had felt locked in
battle
In 2000 he announced that he was withdrawing his candidacy for NY Senate due to his illness. Many
believed that the Guiliani era was coming to a close and concluded that he had been a great mayor, not
so great man
9/11 crisis:
In the aftermath of 9/11, Guiliani was deemed an international hero and leader
o A symbol of the citys unity
o Was deemed the voice of America through out the crisis
o According to Letterman, all you had to do at any moment [amidst the chaos and confusion] was
watch the mayor he was the personification of courage
Although Guiliani asserts that he was just operating on faith and having hope and reflecting the way the
people are there were important factors that made him an effective leader
o importance of his planning and preparation (especially the creation of the Office of Emergency
Management which played a crucial role)

his approach to the work was so well orchestrated that you would have thought that he
had prepared it forever
o Importance of visibilityin crisis, people are looking for someone to take charge; seeking
guidance on how to understand and respond to the situation; people will respect leaders
willingness to take a hands on approach.
Worked to get everyone on the same page and communicated with president and media
in order to attain a sense of control and keep the city informedgrabbed a reporter and
brought him along
Was on the air just 2 hours and 6 minutes after the attack
Was also seen in the midst of the crisis talking to and directing New Yorkers on the streets
o Importance of demonstrating follow me leadership and modeling the behavior you would
like others to demonstrateimportance of setting the tone (emotions are contagious) and
maintaining contact and communication. Doing so demonstrates that someone is in charge
and keeps the people informed.
He remained calm on the air, was compassionate and extremely honest and straight
forwarddidnt try to mask the severity of the circumstances. He also carried a message
of hope.
The next day he called for normalcygave people something to do
Emulated courage and remained calm at all times.

Aung San Suu Kyi Case Summary

SUMMARY:
Burma had been a nascent democracy after gaining its independence in 1948, and Aung San
Suu Kyis father, Aung San, was a leader in the movement for independence, loved and revered
by the people, before he was assassinated in 1947. Despite early attempts at democracy, Burma
fell to military rule under General Ne Win and remained under his control for decades. In 1987,
protests and riots broke out against the military government and a movement for democracy
began. Aung San Suu Kyi had been living abroad since the age of 15, but she had returned to
care for her ailing mother. Amidst the chaos, Aung San Suu Kyi rose to the occasion with a
speech at the Shwedagon Pagoda the spiritual heart of Burma and the place where her father
gave his last speech in which she spoke of her father and Burmas long struggle for freedom
and democracy. Within weeks, she was the leader of a new political party, the chief voice of
opposition to the military government, and a unifying force for the movement.
Soon after, the military government violently quashed the protests and demonstrations,
leaving over 10,000 dead. Aung San Suu Kyi grew in status and power as the head of the
National League for Democracy, a political party, and during the election campaign for multiparty elections, the government tried to stop her from campaigning and threatened those that
attended her speeches and rallies, but she wouldnt stop. Before the election took place, the
government put Aung San Suu Kyi under house arrest (July 20, 1989), soon cut off access from
family, and arrested other leaders of the NLD. Despite the crackdown, the NLD garnered over
80% of the vote in the election, but the military government refused to recognize the results and
remained in power. Aung San Suu Kyi became a symbol of national indomitability and gave
hope to the people. She accepted her condition, felt no hostility towards the guards, had no fear,
and decided not to leave the country to join her family despite the conditions. On July 10, 1995,
she was released from house arrest, and resumed small-scale political activity in pursuit of
democratic rule.
LESSONS:
Charismatic Leadership

Transform personal struggle into universally shared concerns (house arrest & movement
for democracy)
Manipulation of symbols (reincarnation of father, Shwedogan Pagoda) to associate self
with sacred symbols; and created new myths and legends through own actions (i.e. Aung
San Suu Kyi walking straight towards soldiers with guns trained on her after they told her
to stop)
Prophesize a future born of values from the idealized past (use of father)

Transference in Leadership

Idealization: followers ascribe exaggerated qualities to leader in search of paradise lost;

leaders help scared and confused followers by responding to needs for identity, security,
and protection
Mirroring: idealized projection enhances leaders self-image which is reflected back and
reinforced by followers
Persecutory Reactions: leaders grandiosity becomes superiority and callousness;
followers disappointment with leaders inability to fulfill tacit promise turns to
vengeful devaluation (didnt happen to Aung San Suu Kyi)

The NAACP Summary

-Myrlie Evers-Williams took the reins as Chairman of the NAACP when in crisis (newly
dishonored reputation, divided board, less support, and questionable finances)
-previous Chairman Benjamin Chavis Jr. created debt and a lack of trust within the organization
through personal charges, inviting gang members, and lack of including board in decisions
-Evers-Williams emphasized teamwork and surrounding herself with talent, even including
former opponents (Gibson)
-early action was spent forming committees full of people with the expertise needed- even with
Gibson supporters; Evers also eliminated members or brought in more qualified, such as the
Financial Officer from Price Waterhouse
-stressed communication especially when former leader used secrecy. She had to regain trust,
special board to monitor expenses
-Convinced Ford foundation to donate money to pay severance packages to pay employees being
laid off to help turn company around
-Evers created a code of ethics and made sure everyone agreed to it
-Evers hired known outsider as Executive Director, Kweisi Mfume
-Mfume fired more people, did heavy fund-raising, and created the major points of the
organization based on existing policy (Civil Rights and Civil Liberties, Voter empowerment,
Educational excellence, Economic development, and Young People)
-Evers heavily decreased expenses once in power
-MAIN IDEAS: Must be able to disagree on issues to work as a team between Mfume, Evers,
and Board- heavy emphasis on COMMUNICATION!
Major Ideas discussed in class
-NEED ACCOUNTABILITY AND CONTROL to make-up for $3 Million deficit, unchecked
chairman spending, and bad publicity
-GOVERNANCE is decentralized and emphasize new values
-UNITY/COMMUNICATION
-CREDIBILITY/INTEGRITY through consolidation, agenda, code of ethics, and New Exec.
Director

Lyndon Baines Johnson

Lyndon Baines Johnson began his career in campus politics at a small Texas college, then
traveled to Washington DC as a legislative secretary for a Texas Congressman. In Washington,
he joined, transformed, and controlled the Little Congress, an organization of legislative
secretaries that met and debated bills that the Representatives would later present. LBJ used a
secret, well-orchestrated plot to become Speaker of the Little Congress and in power, he
reshaped it from a defunct social club to a high-visibility debating society. Using his power as
the leader of the Little Congress, he began networking with high-profile Congressmen (by
inviting them to speak at the Little Congress); once connected, he then used flattery and
psychology to leverage connections for his own personal gains. He was intensely strategic and
calculating; he assumed the basic premise of human interactions to be for personal political gain.
In 1940, with connections to numerous Congressmen and a highly transactional style, he
launched his own campaign and won a seat. He then combined customize flattery, logic,
premeditated debating strategies and conviction during his debating sessions. In this sessions,
he would meet privately with Senators to manipulate their emotions and desires for fame and
power to get what he wanted (a vote, an exchange, private information etc). As President, he
tried to network and woo the press in a similar way, based on his assumptions of political
human interactions, but this backfired and settled at a antagonistic relationship between press and
President.
LBJ had important bases of power: positional, personal, and relational. He used distinct and
aggressive influence tactics. By examining and researching people carefully, he aligned interests
and reminded Senators of their singular importance and responsibility. He was a talented
wordsmith and flatter; he understood who was susceptible for such flattery and with whom to
resort to persistence or fear/emotion. LBJ would get in a persons face, be aggressive and
motivate through fear if necessary he used a 1-2 punch of calling to the heart (passion, flattery)
and then the head (calculated logic, debates). He could strong-arm a Senator one day, then
beautifully manipulate another with flattery.
Johnsons approach to politics was that of brokering a deal, so his transactional method is similar
to Carlson (from the stop-action video about a business deal). Like Ang San Suu Kyi, he filled a
power vacuum (Little Congress); however, although he was a flatterer, he was definitely not
charismatic as she was. Although he thoroughly transformed the Little Congress as an
organization, he was not a transformational leader like Myrlie Evers Williams at the NAACP
because he was not driven by discernible core values or passion beyond his self-serving desire
for power.
LBJ Summary: Transactional, highly calculating and manipulating. He leveraged connections
for personal gain and was very political. Tried to mold people to his desires through significant
behind-the-scenes brokering, debating, and flattering. Ultimately failed when he couldnt
bribe/manipulate press when President.

Case Study: Robert Moses

Relevance: What do you have to sacrifice for power? Machiavelli claims that for a leader,
one must sacrifice and do whatever one can to achieve the desired end, to maintain power, and to
wield it. Robert Moses, in the beginning of his career, was an idealist, incredibly intelligent, and
also impracticalnone of his ideals reached political success. Informal networks, social
relations, power players were his obstacles, so in his work with Al Smith, he removed these
obstacles. He got things done, established positional power, and became incredibly successful.
But he also devolved; doing really whatever was necessary for success. He was unethical if
necessary, circumvented the law, and eventually become a most-feared politician. He helped
millions, building parks, schools, etc., but at what cost? What he did was clear, but what his
motivation wasto just gain power or to help peopleis not.
Themes for the class: Sources of power, Exercising influence, Informal Networks, and Means
v. Ends leadership (Machiavelli v. Suu-Kyi)

Case: Whitney Young, Jr.

Omaha, Nebraska was segregationist and racially conservative when Whitney Young assumed
leadership of the National Urban League in Omaha in 1950. He had experience in Minnesota,
and knew that the League needed endorsements for the local white elite and the black
community. His network was diverse, with people of different races, religions, and seniority. He
spent a lot of time building relationships he might need in the future. He got the help of several
white Omaha businessmen, some militant and others more peaceful. Under Youngs leadership,
the League got more money and expanded its staff. Youngs tactics to convince whites to end
discrimination included private persuasion and negotiation, the assistance of influential white
board members, agitations for governmental intervention, and nonviolent direct action. He was
very results oriented. He enhanced his credibility as a black leader when he joined the Prince
Hall Masons and spoke in black churches, and later his affiliation with the white Unitarian
church harmed his credibility among blacks. He asked influential white board members to
accompany him to meet employers, and was patient when dealing with the prejudice of white
businessmen. Occasionally he would even be willing to make embarrassing compromises. His
influential white friend Dodge introduced him to restaurant proprietors, thus helping him to
desegregate public establishments. He created positive examples by showing that businesses
dont fall apart when they have black people employees. Young had ties with Father Markoe, a
militant priest. Young often appeared rational and moderate in comparison to Markoe and his
militant De Porres club, which made whites more willing to work with Young. Young also
worked to improve housing and was partly successful at this, but exhibited oversight when he
failed to talk directly to homeowners and tenants in the areas in question. Young learned that all
whites were not alike.

Taran Swan at Nickelodeon Latin America

Taran Swan starts Nickelodeon Latin America (LA)

Leaders play a major role in shaping the culture of their teams (decide on composition,
structure, task)
Key role of leader is to shape culture
Culture and design factors need constant readjustment
She was passionate about Nick brand and shared clear vision and future goals
Maintained good relations with all constituencies, such as the corporate office, MTV
shared staff, advertisers, affiliates, kids, etc., and managed her team itself.
She shaped distinct culture by determining what teamwork was needed, coordinating the
team composition and structure, facilitating the team process, creating a unique team
culture, and coaching the team in the right direction.
Culture of open communication, intense questioning, and holding people accountable
Swan determined composition of team members, made sure they had the necessary
knowledge and skills and defined their roles and coordination to encourage efficiency and
leverage talents. After fighting for the recruited talent, she gave them ownership.
As she had to return to NYC due to her high-risk pregnancy, her objective was to
determine how to face the new leadership challenges of the future and whether that meant
installing an interim director, now that she was leaving during the key projects of the
Cablevision affiliate deal and the direct-Brazil feed launch.
Swan does not appoint interim director and manages from NYC while having 2 informal
interim leaders

Slade Plating Department

Company background: The Slade Plating Company was a small but prosperous manufacturer
of metal products for industrial application. It employed 500 employees in Michigan.
Employee pay was low for the region, and working hours were long. At other companies,
employees worked shorter hours at higher pay, and where unionized.The company compensated
for this by being generous with overtime.
Problem: A production manager heard that workers were cheating the company by punching
time cards for others. However, managers as a whole are pleased with the output of the workers
and believe that they are doing a good job. The production manager needed to decide if he
should let the workers go, or if he should confront them about their behavior.
Dynamics: The largest group in the department, the Sarto group was led by Tony Sarto, a
respected member. They were a close-knit group, sharing lunches, loaning money, and taking
vacations together. They are highly skilled, knowledgeable, and work longer hours to increase
their output when the company gets large orders. The group itself has a shared code of ethics.
The group stressed high standards of both quality and inventiveness, and Willingness to be of
help was a trait Sartos group prized.
Punch-Out Scheme: The company was very independent. As one described: They leave us
along and expect us to produceand we do. Because supervisors worked from 8-5pm, and
were hardly present on weekends, members of the Sarto group could rotate turns punching
everyone out later. So if the supervisor left at 5, and all but one member left by 5:30, the last
member could leave a 7 and punch everyone else out too, thereby everyone gains free time.
Key Takeaways (From Class Lecture Slides)

This case gives us a better grounding of what we mean by culture. Culture can
work for or against organizational goals.
Helps us understanding the power of group norms. They emerge because of
antecedent factors (they are not random, and are implicit, not explicitthey are
not written down but you can infer from study of patterns of behavior.
Power of internal controls: peer pressure vs. accounting controls
Culture can be changed, but rarely a superficial process
Gives a framework for understanding work groups
Design factors: group composition, task design, formal organization

*C+S Wholesale*
- Everything is about being on a team!

why is Cohen worried?

A+P sales are higher than 200 million
Can the company meet customer needs with high quality
service?
Crowding
Increase in # of workers and supervisors
Increase in cost
Competition from Supervalu and Flemming
Maintain accountability.
Why use teams? (what does it say about human nature)
Motivation
Enjoyable work environment
Community (belongingness)
Trust
Accountability
Efficiency and specialization
** GIVE PEOPLE PRIDE IN THEIR WORK**
Security
Interdependence (peer pressure!)
RISKS
social slack
Consistency with culture and legacy
Normative Model of Group Effectiveness
Organizational context (reward, education, information)
Group Design (structure of task, composition of group, group
norms about performance)
Group Synergy (reduce process losses, create gains)
Process Criteria of Effectiveness (effort,
knowledge+skill, performance strategies)
Material Resources
Group Effectiveness: performance,
satisfaction, and cohesiveness
Group Design
TASK: engage and motivate members
COMPOSITION: what skills are contributed to the group
NORMS: enable the group to regulate member behavior and
support situational/strategy planning
Organizational Context
REWARD: provide challenging objectives and reinforce
achievement
EDUCATION: provide training and consultation to supplement
expertise

INFORMATION: data to assess and evaluate performance

Synergy
MINIMIZE LOSS: implement strategies effectively, no weighting
of member contributions,
CREATE GAIN: shared commitment, cross training for collective
learning, be innovative!
Team Leader
Ask questions
Motivate solving problems
Promote participation
Help resolve conflict
Train others
Positive reinforcement
Encourage high performance goals
Encourage self evaluation
Be honest!!!
Liaison with higher management

Southwest Airlines:

Southwest Airlines had seen extreme success and growth since Rollin King and Herb
Kelleher (current Chairman) founded it in 1967; however, it had been facing some
industry setbacks and volatile responses from competitors after Sept 11, 2001 and is
trying to figure out to preserve a culture formed so successfully around founder/leader
Kelleher. To figure out how to set Southwest back on the success track, we examined the
factors that had made it so successful in the first place:
Business strategy: low price and high quality service
Target: frequent business traveler, price sensitive pleasure travelers
Service concept: efficiency, flexibility, many flights, few frills, fun, low price,
innovative
Shared Values: empowered employees, love, family, ownership, wild/fun
Management style: irreverent, lead by example, dynamic
Skills: team-oriented, take initiative, skill diversity
Systems: profit sharing, recruiting system, promote from within, culture
committee, boarding process, FIT
Staffing: hire for attitude, train for skill, people who enjoy interaction
Structure: not main airports more convenient, less congestions, faster; all
Boeing 737 planes, no interline travelers
McKinseys 7 Ss (Strategy, Shared Values, Style, Skills, Systems, Staffing, Structure) are
all in alignment, each system supports one another extremely effective organization

Case Study: Meg Whitman at eBay Inc. (A)

Case Outline

The case begins stating that eBay is thinking about acquisition of Kruse -- would help
stock price; help high-end market
The story:
Huge stock and sales growth since IPO
Whitman explains that Growth due to very good community culture online
Company growing, and Whitman cannot be as hands-off as eBay used to be
tension
Auctions are self-regulating mechanism, with feedback.
eBay just takes a slice of the sale to make money
Difficulty of controlling brand, since it is completely in the hands of the
customers
Whitman Begins
Whitman: you cannot come in and start completely changing how people
do things, though the temptation is high when you are a senior manager
Says that Internal culture MUST mirror website culture so it permeates
everything they do.
Seamless transition of CEOs: Omidyar believes in Meg, tells people to go
to her, and made sure that employees knew that the company was doing
well and THAT was why they were changing
Whitman wanted to have the 10x the capacity needed at any point. The
site went down for 8 hours two weeks into her tenure, so she began to
focus on the technical side of things. She discovered that the cost of
having too little system capacity was very high compared to the cost of
having too much capacity. As a result, she made the deceision to
significantly increase the companys investment in stem capacity
At this point, 20% of users generating 80% of traffic; some working on
eBay full time through its PowerSellers program.
Gets some criticism from users for banning the sale of guns and
ammunition on eBay.
Culture: calm, everyone has a voice, open to opposing points of view.
Strategic partnership with AOL.
Acquire Butterfield and Butterfield
What Happened?
Bought Kruse in 1999
In Oct 2002, eBay sold Kruse back to the original owner because online was
where the company wanted to be
Also sold Butterfields
Used purchase of two organizations as a way to get into an area where it had little
expertise

Company explained the decision to sell Kruse as: Perhaps we had not entirely
gauged how much of a change in behavior would be required to make customers
comfortable with purchasing high-end art and collectibles on-line

Leadership Lessons From Meg Whitman:

Be accountable
Make it happen
Deliver results
Codify lessons
Be patient (your career is a marathon, not a sprint)
Build a great team and share credit liberally
Dont be afraid to ask what you dont know or understand
Never compromise your integrity

IDEO Product Development

1. Background
a. One of the worlds largest and most successful product development firms
b. Philosophy was to have a genuine respect for new ideas and invention
c. A merge of ID Two and Matrix
d. It would design, develop, and manufacture new products
i. Mechanical and electrical engineering, industrial design, ergonomics,
information technology, prototype machining, and even cognitive
psychology.
ii. A fusion of art and engineering to produce pleasing products
e. Major Clients: Apple, Samsung, Amtrack, and even Hollywood
2. Design Philosophy
a. Prototyping was the key to their success It served as the most important way for
his company to communicate with clients
i. It was central to their design process
b. Rapid Prototyping
i. Rough, Rapid, and Right! 3 Rs
c. People were not upset if their idea did not become the definitive solution since the
act of clipping off ideas brought the entire team closer to the solution
d. Helps put everyone on the same page
e. Management rarely fired employees
i. They were lenient: wanted people to wander and talk during mental blocks
ii. No where for non-contributors because they were so small (units)
iii.
All work done in teams
iv. Office space resembled personality of the worker
v. Lack of hierarchy avoided the problem of promoting designers and
engineers into administrative positions
3. Innovation
a. Brainstorming was central to their methodology
b. Fail often to succeed sooner
i. First a whirlwind of activity and ideas
ii. Then several principles of brainstorming followed
1. stay focused on topic
2. encourage wild ideas
3. defer judgment to avoid interrupting the flow of ideas
4. build on the ideas of others
5. hold only one conversation at a time to ensure that introverts got
some say
6. go for quantity
7. Be visual
c. Go into the field to see how other people use and interact with the products
d. Phases
i. Phase 0 Understand and Observe
ii. Phase I Visualize and Realize

iii.
Phase II Evaluation and Refining
iv. Phase III Implement and Detailed Engineering
v. Phase IV Implement and Manufacture
4. 6 steps to Effective Change
a. Mobilize commitment to change through joint diagnosis of business problems
i. People need to know what the problem is before change is effective
b. Develop a shared vision of how to organize and manage for competitiveness
i. After people are committed to a particular problem, then managers can
lead employees toward a task-aligned vision of the organization that
defines new roles and responsibilities
c. Foster consensus for the new vision, competence to enact it, and cohesion to
move it along
i. Commitment to change is always uneven
ii. People need to develop the competencies to make the new setup work
d. Spread revitalization to all departments without pushing it from the top
e. Institutionalize revitalization through formal policies, systems, and structures
f. Monitor and adjust strategies in response to problems in the revitalization process

Razors and Blades

Sell hardware for cheap, then sell the supplementary at a higher price
A deeply held business model

Which clients to turn down

client overly directive

if it is too difficult and requires loss, then decline

Seven Secrets for Better Brainstorming

Sharpen the focus

Start with a well-defined goal or problem that you wish to solve
Playful rules
Reminds to generate ideas first, evaluate and criticize later
Number your ideas
Motivates everyone and enables quick referencing
Build and jump
Decide when to build momentum or when to switch gears
The space remembers

Write down your ideas on something that everyone can see easily

3 Critical Challenges
- expert knowledge in an appropriate manner
- surfacing and testing underlying assumptions and orthodoxies
- framing problems in a way that does not constrict the debate or the range of solutions that will
be considered

First Community Bank Summary

From Gail Snowdens leadership of First Community Bank, we learn that leadership of
organizations often entails responding to factors in the environment that are out of managements
controls through the difficult task of organizational change. In the case of First Community Bank
(FCB), a unit within Bank of Boston (BKB) established to meet the needs of low to moderateincome areas by focusing on community development banking, these factors included
government regulations in the form of the Community Reinvestment Act. Because the legal
environment is constantly changing, organizations like BKB which are greatly influenced by
authorization from the Federal Reserve Board need to respond by changing as well. The
establishment of FCB is a good example of this. The leadership of FCB as an independently
managed unit in BKB demonstrates that an individual unit possesses the potential for enacting
change throughout the organization as a whole. A great example of this was the First Steps
Mortgage Program which started out in FCB but then was developed and expanded throughout
BKB. In light of the lesson we take from Beer et al on change programs, we see that Snowden
will have to make sure that change towards CRA-compliance is a grass roots change starting in
FCB and spreading to other divisions in BKB rather than a sweeping top-down program which
almost never succeed. The benefits to beginning this kind of change for FCB if it were to
succeed would be increased integration into BKB and greater credibility among other BKB
branches.
From Gail Snowden, we also see that against opposition to change, a leaders role is to inspire
commitment and enthusiasm in her people by conveying an inspiring vision through her actions.
An example of this is Snowdens passion for the acceptance of diversity and camaraderie.
Snowden nurtured teamwork and flexibility in roles among FCB staff members. A leader must
also defend her unit from opposition as we see Snowden do against other managers in BKB that
wrote off FCB as the minority bank and not as a credible unit. She was careful to focus on
making FCB profitable as well as remaining loyal to the vision of community development and
CRA-compliance.

The situational factors surrounding this case are that in the 1990s there was a nationwide shift
in the healthcare industry resulting in reduced lengths of stay for patients as well as reduced
reimbursements for hospitals. MGH, one of the country's best hospitals, as a result was
anticipating large-scale budget reductions and needed to restructure their workforce by
decentralizing and transferring jobs to lower cost workers.
Ives Erickson along with a famous consulting firm created the new PCDM that now had
three workers performing the tasks of up to 64 different staff. They would be managed as a
team by a Resident Nurse. By decentralizing and de-layering this model allowed the hospital to
downsize its staff, and thus save money without reducing salary. It let patients interact with fewer
people, and the smaller staff could theoretically work together as a team and with a clear unity of
purpose and be more patient- and family- focused.
But there were problems. The nurses, who were used to primary nursing models and minimal
management had difficulty incorporating increased management responsibility and had trouble
delegating. The more diverse staff of immigrants made effective communication an issue. There
was also concern that the centralized depts simply couldn't transfer their "acquired knowledge"
that had been learned only through years of experience. Because there were many new faces who
worked in shifts, it took time to build confidence in the team's relationships. Despite this patients
reporting the same high level of satisfaction as before, but this didnt show the toll it was taking
on the staff.
The nurses didnt want to delegate to their workers and their workers felt like they werent being
respected. This was creating fractures in the team spirit that the model depended on. While
patients still remained happy, the model was now raising costs instead of lowering them.
Some lessons
-While individuals may work well together as independent agents, that does not mean they will
work well as a team.
-How a team will function is dependent on many factors that must be considered, ex, the
personal tendencies of the members(nurses being overprotective), the nature of the work(shift
based)
-Assuming that all skills can be easily transferred is naive, as some "acquired knowledge" comes
only from experience
-You must look at many different indicators to determine effectiveness - While patients were still
happy, costs had risen and nurses were growing more dissatisfied
Important is how Ives enacted her PCDM change through an 8 step process
Getting Started

1.Create Urgency
2.Create Vision
3.Create Team
Involving Everyone
4.Communicate
5.Empower
6.Inspire
Ongoing Improvements
7.Institutionalize changes
8.Focus Efforts on Improvements
*Ives, certainly a transformational leader, shows that it is not enough to successfully put a system
in place. She KEEPS MODIFYING and MONITORING continuously. *
*The case also stresses the importance of good team design similar to the C&S Wholesale
Grocers*
Lisa Benton Case Summary
In my opinion, the Lisa Benton case study is really not that important (sorry). The major point is bosssubordinate relationships and, by extensions, interpersonal relationships period. Regardless, the story is kind of
interesting (and not because it was the only case study in which major characters were more than likely getting it
on). The summary is as follows: while Lisa Benton she attended Harvard Business School, worked as the first
female manager for Right-Away stores, a company where she won accolades for her roll-up-your sleeves approach
and charmed the president, Scott Kingston, so much that he offered her a full-time job at Right-Away stores after she
graduated. However, she was also offered a job at Houseworlds Care Division, appealing because of its classical
and famous excellent marketing training. She chose to turn down the higher salary and a bigger position partly
because of her worries of taking on too much responsibility and partly because of Right-Aways rundown warehouse
and lack of other female manager and, instead, joined Houseworld. At Houseworld, she was charmed by the friendly
and professional people she met initially but ended up under Deborah Linton, who immediately made it clear she
was biased against Harvard MBAs. The friendly people she had met didnt remember her name, she felt the
reception from her boss was cool and disinterested, and, to make matters worse, her Associate Product Manager,
Ron Scoville, was condescending. She was also working on a product, Pure & Fresh, she felt was unnecessary. What
follows in the case study is a series of run-ins and experiences with Scoville and Linton, where pretty much each
time Benton feels overshadowed, overwhelmed, and unwanted. This leads to the end of the case study, where she
considers calling back Right-Away Stores President Kingston and telling she made a mistake.
The point of the whole case is, ultimately, the personalities. Linton, Bentons boss, obviously has an inferiority
complex. She never understands Benton and is definitely inexperienced in managing people. She seems
overwhelmed, overworked, and may or may not (Im voted definitely) is doing the hanky-panky with Scoville.
Scoville, Bentons coworker, is even less of a people person. Hes difficult to work with and, unlike Linton, has what
could best be called a superiority complex. His ego, frustration with not being promoted, and bizarre misfit status at
the company comes together to annoy (and confuse) the heck out of Benton. Finally, Benton herself seems to have a

clip on her shoulder. She has higher expectations for the job than she should have had and clearly has trouble
asserting herself. She never conveys her potential and is overtly defensive. Finally, she also seems like shes trying
too hard to please people and be liked by them.
In the end (though not in the case study), Scoville and Linton ended up leaving and Benton got the position of
Product Manager a full 9 months earlier than is usual. She had the potential, then. So? It would have been best if she
had managed upward, assuming responsibility for her own career and development. She should probably have
handled Linton differently, understand what she wanted, what pressures existed, and what the stakes were.
Ultimately, a boss is in many ways dependent on his or her subordinate- for the knowledge he/she delivers, as a
source of information, and as a sounding board. If the subordinate realizes his or her sources of power, having skills
that are tough to replace, specialized knowledge or information, and centrality to the organization, etc, then the
subordinate should be able to build a partnership with his or her boss. (This is all, for the most, adapted from Agers
slides in class).
Katherine Graham
Abstract: Katherine Graham (Kay), the protagonist of this Harvard Business School Case, arrived largely untested in
1963 to the Presidency of the Post Company when her husband Phil passed away. Kays speedy transformation
from a silent partner watching from the sidelines, to an inspirational and transformational leader should prove a
lesson for us all. Katherine Graham (Kay) was thrust into a situation without preparation and with much animosity.
Yet through her transformational leadership as exemplified by her hiring Bradlee, handling the Watergate Scandal,
and preempting the Pressmans Strike, Kay led the Post to unprecedented success. Although her leadership style
may prove uncomfortable to those acculturated by masculine norms, she proved remarkably effective and left the
Post in excellent position for her son, Don Graham, to take over.
Email David Wyman (dkwyman@fas) if interested in the whole case report.