Case | HBS Case Collection | April 1998 (Revised May 2000)

Guidant Corporation: Shaping Culture Through Systems

by Robert L. Simons and Antonio Davila

Abstract

Guidant is a successful IPO start-up selling pacemakers and defibrillators. The case describes how managers install systems to balance innovation and control. Three parts of a shareholder value strategy are described. Controls include incentive systems, beliefs systems, and risk management systems.

Keywords: Innovation Strategy; Corporate Strategy; Motivation and Incentives; Planning; Risk Management; Management Systems; Business Strategy; Value Creation; System; Service Industry; Financial Services Industry;

Citation:

Simons, Robert L., and Antonio Davila. "Guidant Corporation: Shaping Culture Through Systems." Harvard Business School Case 198-076, April 1998. (Revised May 2000.)