Case | HBS Case Collection | June 2003

Peabody Simpson at the Crossroads

by Rajiv Lal, Nitin Nohria and Leslie Freeman

Abstract

Three managing directors at Peabody Simpson had just returned from a firm-wide recruiting event at Columbia University, which they had covered together, as all were alumni. They were commiserating about having to submit revised forecasts to their division heads by the end of the week. Alec Hastings, head of Global Institutional Securities, wanted an update on year-to-date expense. They sat at their favorite watering hole and discussed the challenge of cutting $600 million out of the operating budget.

Keywords: Forecasting and Prediction; Capital Budgeting; Recruitment; Reports; Organizational Design;

Citation:

Lal, Rajiv, Nitin Nohria, and Leslie Freeman. "Peabody Simpson at the Crossroads." Harvard Business School Case 503-112, June 2003.