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• Case | HBS Case Collection | 2013 (Revised from original 2009 version)

  Cleveland Clinic: Growth Strategy 2012

  Michael E. Porter and Elizabeth O. Teisberg

  The Cleveland Clinic's health care services are internationally renowned for quality. In 2008, The Clinic is restructuring the organization into teams defined around patient needs, rather than traditional medical specialties. "Patients First!" takes shape as the teams measure and report outcomes, coordinate care, and develop to support improving value for patients. In addition to restructuring care delivery in the hospitals and throughout northeastern Ohio, The Clinic has investments, facilities, and staff in several other states in the U.S. as well as in Canada and Abu Dhabi. It is also considering initiatives in Austria, China, and India. Students can explore strategy transformation, geographic expansion, the process of introducing new measurement approaches, alignment of activities with strategic goals, and issues in leading change both within a company and across an economic sector.

  Keywords: Health Care and Treatment; Leading Change; Goals and Objectives; Growth and Development Strategy; Measurement and Metrics; Service Delivery; Organizational Change and Adaptation; Outcome or Result; Health Industry; Cleveland;

  Citation:

  Porter, Michael E., and Elizabeth O. Teisberg. "Cleveland Clinic: Growth Strategy 2012." Harvard Business School Case 709-473, February 2013. (Revised from original February 2009 version.)

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• Case | HBS Case Collection | 2012 (Revised from original 2009 version)

  Cabot Pharmaceuticals, Inc.

  Frank V. Cespedes and John T. Gourville

  Traces the 12-year career of a pharmaceutical salesperson, Bob Marsh, from recruitment to termination. Marsh has had an uneven career with Cabot Pharmaceuticals and eventually is asked to resign. Following his termination, a number of Marsh's former customers complain vigorously, and Cabot's vice president of sales is asked to investigate the matter and to decide what, if anything, to do about it. The case raises issues in aligning strategy and sales systems, performance evaluation criteria, and on-going performance management processes in field selling situations.

  Keywords: Customer Relationship Management; Employees; Resignation and Termination; Performance Evaluation; Salesforce Management; Alignment; Pharmaceutical Industry;

  Citation:

  Cespedes, Frank V., and John T. Gourville. "Cabot Pharmaceuticals, Inc." Harvard Business School Case 510-030, August 2012. (Revised from original August 2009 version.)

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• Article | Harvard Business Review | June 2012

  Pricing to Create Shared Value

  Marco Bertini and John T. Gourville

  Many companies are in competition with their customers to extract as much value as possible from every transaction. Pricing is their weapon of choice, and consumers fight back by rooting out and disseminating pricing policies that seem unfair. The problem is that companies generally think of value as a pie that is rightfully theirs. But value is not fixed, and it neither originates with nor belongs solely to the firm. Without a willing customer, there is no value. Instead of using pricing in a way that turns customers into adversaries, companies can use it to enlarge the pie. That means viewing customers as partners in value creation—a collaboration that increases customers' engagement and taps their insights about the value they seek and how firms could deliver it. The result can be new revenue, increased customer satisfaction and loyalty, positive word of mouth, and cost savings. The multiyear process to price the 8 million tickets to the upcoming London 2012 Olympic Games suggests five principles for using pricing to create shared value: focus on relationships, not on transactions, by using pricing to communicate that you value customers as people; set prices proactively to discourage detrimental behavior and to encourage behavior that is beneficial to both your firm and your customers; allow prices to change in response to shifting customer needs; promote transparency by providing the rationale for your pricing; and make sure that prices and the processes by which they are set meet consumers' expectations about what is fair.

  Keywords: Market Transactions; Customer Relationship Management; Price; Value Creation; Partners and Partnerships; Fairness;

  Citation:

  Bertini, Marco, and John T. Gourville. "Pricing to Create Shared Value." Harvard Business Review 90, no. 6 (June 2012).

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