Case | HBS Case Collection | March 2006 (Revised August 2006)

Putnam Investments: Rebuilding the Culture

by Nitin Nohria and Charles Nichols


Charles "Ed" Haldeman Jr. is promoted CEO of Putnam Investments after the firm was badly damaged by a series of improper trading practices. He is charged with the task of managing the crisis, repairing the company culture, and putting the firm back into a pattern of growth. Haldeman realizes that nothing less than a radical change in the culture of Putnam Investments would be enough to win back the trust of clients and employees who felt betrayed by the firm's apparent misconduct. He must confront some tough decisions about recently uncovered questions concerning the handling of certain accounting transactions three years earlier and about the continued lagging performance of Voyager, the firm's flagship equity fund.

Keywords: Crime and Corruption; Organizational Culture; Organizational Change and Adaptation; Ethics; Investment Funds; Investment; Leading Change; Decision Choices and Conditions; Financial Services Industry; United States;


Nohria, Nitin, and Charles Nichols. "Putnam Investments: Rebuilding the Culture." Harvard Business School Case 406-009, March 2006. (Revised August 2006.)