Working Papers
Operational Failures and Problem Solving: An Empirical Study of Incident Reporting
| Authors: | Julia Adler-Milstein, Sara J. Singer, and Michael W. Toffel |
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Abstract
Operational failures occur in all industries with consequences that range from minor inconveniences to major catastrophes. Many organizations have implemented incident reporting systems to highlight actual and potential operational failures in order to encourage problem solving and prevent subsequent failures. Our study is among the first to develop and empirically test theory regarding which reported operational failures are likely to spur problem solving. We hypothesize that problem solving activities are especially likely to follow reported operational failures that provoke financial and legal liability risks. We also hypothesize that management commitment to problem solving, enacted through managers' communication and engagement practices, can encourage frontline workers to conduct problem solving. We test our hypotheses in the health care context, in which the use of incident reporting systems to highlight operational failures is widespread. Using data on nearly 7,500 reported incidents from a single hospital, we find support for our hypotheses. Our findings suggest that frontline workers' participation in problem solving is motivated by some inherent characteristics of the problems as well as by particular management practices.
Download the paper: http://www.hbs.edu/research/pdf/10-017.pdf
Publications
New Perspectives on Regulation
| Authors: | David Moss and John Cisternino, eds. |
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| Publication: | Cambridge, Mass.: The Tobin Project, 2009 |
No abstract is available at this time.
Book link: http://www.tobinproject.org/twobooks/pdf/New_Perspectives_Full_Text.pdf
The Principles of Embedded Liberalism: Social Legitimacy and Global Capitalism
| Authors: | Rawi Abdelal and John G. Ruggie |
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| Publication: | Chap. 7 in New Perspectives on Regulation, edited by David Moss and John Cisternino, 151-162. Cambridge, Mass.: The Tobin Project, 2009 |
Abstract
In this essay we revisit the principles of "embedded liberalism" and argue for their relevance to the contemporary global economy. The most essential principle is the need for markets to enjoy social legitimacy, because their political sustainability ultimately depends on it. From this principle we analyze three current sets of practices and institutions in which ongoing crises of legitimacy demonstrate the need for a renewal of embedded liberalism and a revitalization of global governance. They are as follows: the activities of transnational corporations, particularly with regard to core standards in labor and human rights; the organization of the international financial architecture; and the formal rules and informal norms of international organizations.
Book link: http://www.tobinproject.org/twobooks/pdf/New_Perspectives_Full_Text.pdf
Government as Risk Manager
| Authors: | Tom Baker and David Moss |
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| Publication: | Chap. 4 in New Perspectives on Regulation, edited by David Moss and John Cisternino, 87-109. Cambridge, Mass.: The Tobin Project, 2009 |
Abstract
We explain the four basic ways to manage risk: prevention, risk shifting, risk spreading, and loss control. We set out five principles of effective government risk management gleaned from extensive historical study: (1) link responsibility and control, (2) manage moral hazard, (3) pool risk in sound institutions, (4) adopt market conforming approaches to the extent possible, and (5) structure markets to promote safe products. Finally, we describe some promising new government risk management ideas that incorporate these principles.
Book link: http://www.tobinproject.org/twobooks/pdf/New_Perspectives_Full_Text.pdf
Priced and Unpriced Online Markets
| Author: | Benjamin Edelman |
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| Publication: | Journal of Economic Perspectives (summer 2009): 21-36 |
Abstract
With forces both supporting and opposing zero prices, typical Internet-related activities—like surfing the web, web searches, and e-mail, along with behind-the-scenes practices like domain names and the allocation of IP (Internet Protocol) addresses—present a natural context to reevaluate our sense of the tradeoffs that arise between free and a positive price. In this piece, I offer a series of specific examples of resources offered without charge, for a positive price, or for a flat fee ("all-you-can-eat"). I conclude by assessing the characteristics that shape pricing structure for these resources.
Does Public Ownership of Equity Improve Earnings Quality?
| Authors: | Dan Givoly, Carla Hayn, and Sharon P. Katz |
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| Publication: | The Accounting Review (forthcoming) |
Abstract
We compare the quality of accounting numbers produced by two types of public firms—those with publicly traded equity and those with privately held equity that are nonetheless considered public by virtue of having publicly traded debt. We develop and test two hypotheses. The "demand" hypothesis holds that earnings of public equity firms are of higher quality than earnings of private equity firms due to stronger demand by shareholders and creditors for quality reporting. In contrast, the "opportunistic behavior" hypothesis posits that public equity firms, because their managers have a greater incentive to manage earnings, have lower earnings quality than their private equity peers. The results indicate that, consistent with the "opportunistic behavior" hypothesis, private equity firms have higher quality accruals and a lower propensity to manage income than public equity firms. We further find that public equity firms report more conservatively, in line with their greater litigation risk and agency costs.
Without Conditions: The Case for Negotiating with the Enemy
| Author: | Deepak Malhotra |
|---|---|
| Publication: | Foreign Affairs 88, no. 5 (September/October 2009): 84-90 |
No abstract is available at this time.
Introduction: http://www.foreignaffairs.com/articles/65263/deepak-malhotra/without-conditions
Cases & Course Materials
Airbus A380—Turbulence Ahead
Harvard Business School Case 609-041
Multiple delays of the Airbus A380 have shocked analysts and investors alike. What are the causes of these delays and how should investors respond to the signals they may be sending about the company's outlook?
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Jones Lang LaSalle: Reorganizing around the Customer
Harvard Business School Case 410-007
Peter Roberts, CEO of Jones, Lang, LaSalle (JLL) Americas division, has been charged with expanding the company's presence in its core geographic markets while simultaneously growing its corporate account business. Roberts and his task force have narrowed their options to two proposals. The first is an enhancement of the account management model put in place in 2001 where independent service units co-existed with an account management group. The second is a realignment of the firm's operations around geography and key accounts. By examining the tradeoffs required by each option, the case illustrates the tensions involved in structuring an organization around product, geography, and key customers. It also explores the importance of aligning strategic choices with organizational architecture.
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http://cb.hbsp.harvard.edu/cb/product/410007-PDF-ENG
Meeting the Diversity Challenge at PepsiCo: The Steve Reinemund Era
Harvard Business School Case 410-024
This case profiles PepsiCo's diversity journey under the leadership of former chairman and CEO Steve Reinemund who instituted diversity as one of the company's strategic imperatives. It demonstrates the ways in which Reinemund partnered with his leadership team and employees throughout the organization to make diversity a key factor in PepsiCo's culture and performance. It also reveals how, regardless of the success, PepsiCo employees were openly speculating what it would mean for the diversity strategy that Reinemund would be turning the helm of PepsiCo over to Indra Nooyi, a 50-year old Indian-born woman, who would need to find her own voice and approach to leading the company and its diversity efforts.
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Researching a Company
Harvard Business School Note 610-024
This note was written to help students at the Harvard Business School do a more thorough job of researching a company, utilizing the extensive resources of the Baker Library, as well as other widely available databases. Exhibits provide detailed information on key resources and instructions for accessing prominent databases.
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Harvard Business School Case 709-495
Twitter is a micro-blogging company which allows users to send short text updates to others. The site is used by people, including celebrities, government officials, and businesses. It helps to raise money for non-profit organizations and provides first-responders with information during a natural disaster. Even though almost 10 million people visited the site in early 2009, the site had no strategy for monetizing the traffic. The case allows students to examine potential monetization strategies for Twitter
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http://cb.hbsp.harvard.edu/cb/product/709495-PDF-ENG
Wal-Mart's Use of Interest Rate Swaps
Harvard Business School Case 108-038
"Wal-Mart's Use of Interest Rate Swaps" recounts Wal-Mart's use of interest rate swaps to hedge the fair value of its fixed-rate debt against changing interest rates. This case provides students with a foundation for understanding the use of and accounting for more complex derivatives. Specific issues raised include (1) the financial statement impact of hedge accounting; (2) motivations for using derivatives, including the potential role of accounting standards; and (3) the degree to which financial statement and MD&A disclosures are sufficiently informative about the risks associated with financial instruments.
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http://cb.hbsp.harvard.edu/cb/product/108038-PDF-ENG