Case | HBS Case Collection | April 1998 (Revised June 1999)

Bausch & Lomb, Inc.: Pressure to Perform

by Robert L. Simons, Alex C. Sapir '97 and Indra Reinbergs

Abstract

Bausch & Lomb is the subject of press attacks and experiences a sharp fall in stock price when management practices are exposed. Aggressive goal setting, supported by financial market expectations, is discussed as a precursor to a series of events that results in misstated financial results and angry customers. A defiant CEO stands his ground as shareholders demand his resignation. Industry and competitive data allow students to calibrate performance pressures.

Keywords: Performance Expectations; Management Practices and Processes; Ethics; Financial Markets; Financial Statements; Business and Shareholder Relations;

Citation:

Simons, Robert L., Alex C. Sapir '97, and Indra Reinbergs. "Bausch & Lomb, Inc.: Pressure to Perform." Harvard Business School Case 198-009, April 1998. (Revised June 1999.)