Malcolm S. Salter

James J. Hill Professor of Business Administration, Emeritus

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Malcolm Salter has been a member of the Harvard Business School faculty since 1967. His teaching and research focuses on issues of corporate strategy, organization, and governance.

Over the years, Professor Salter has taught and helped develop a wide variety of courses at HBS. Most recently, he has taught courses in Leadership and Corporate Accountability, Governance and Corporate Control, and Competition and Strategy in the MBA Program. In addition to teaching at HBS, he has also taught at the Harvard Law School (2 years) and the Kennedy School of Government (4 years).

Professor Salter is author of Innovation Corrupted (Harvard University Press, 2008), which addresses the origins and legacy of Enron’s collapse; co-author of Changing Alliances (HBS Press, 1987), a study of business-government-labor relations the world auto industry; Diversification through Acquisition (Free Press, 1979), a study of how real economic value can be created through corporate diversification; and many other articles and papers addressing issues of corporate strategy and internal governance and control.

In addition to his scholarly activities, Professor Salter served as Senior Associate Dean for External Relations from 2003 to 2006. He has also served as Chair of the Elective Curriculum in the MBA Program, Chairman of the Advanced Management Program and the International Senior Managers Program (the School's two most senior executive education programs), and Chairman of the General Management Area (a section of the faculty encompassing the subject areas of general management, entrepreneurial management, and international management).

From 1986 to 2006, Professor Salter was also president of Mars & Co., a strategy consulting firm with offices in Greenwich (CT), London, Paris, San Francisco, Tokyo, and Shanghai.

Professor Salter is a Trustee and Director of the Dana-Farber Cancer Institute where he serves on the Finance Committee and is Chair of the Trustee's Science Committee. He is also an Overseer of the Boston Symphony Orchestra. Active in civic affairs at both the municipal and state levels of government, Professor Salter served as Chair of Newton’s (MA) Citizen Advisory Group from June 1, 2008 to May 1, 2009, charged with developing a new financial and management model for this city of 85,000 residents and thirteen villages. 

He is also a founder of the Friends of Boston Art, a past Overseer of the Boston Museum of Fine Arts and the Rose Art Museum at Brandeis University, a former Trustee and Treasurer of the Shady Hill School, and a past director of Schlegel Corporation and Christie's, the London-based auction house.

Professor Salter is a graduate of Harvard University where he received his AB, MBA, and DBA degrees.

 

Featured Work

  1. Innovation Corrupted: The Origins and Legacy of Enron's Collapse

    Although much has already been written about the rise and fall of Enron, four important questions remain unanswered: What management behavior and practices led Enron down the path from truly innovative to fraudulent management? How could Enron’s board of directors have failed to detect the business, ethical, and legal risks embedded in the company’s aggressive financial strategies and accounting practices? Why did Enron’s external watchdogs—security analysts, credit-rating agencies, and regulatory agencies—fail to bark? What actions can prevent Enron-type breakdowns in the future? Innovation Corrupted addresses each of these questions.

Publications

Journal Articles

  1. Notes on Governance and Corporate Control

    Keywords: Governance;

    Citation:

    Salter, Malcolm S. "Notes on Governance and Corporate Control." Journal of Strategic Management Education 1, no. 1 (August 2003): 5–54.

Working Papers

  1. How Short-Termism Invites Corruption—And What to Do About It

    Researchers and business leaders have long decried short-termism: the excessive focus of executives of publicly traded companies-along with fund managers and other investors-on short-term results. The central concern is that short-termism discourages long-term investments, threatening the performance of both individual firms and the U.S. economy.

    I argue that short-termism also invites institutional corruption. I define that as institutionally supported behavior that-while not necessarily unlawful-undermines a company's legitimate processes and core values, weakening its capacity to achieve espoused goals and eroding public trust. In the private sector, institutional corruption typically entails gaming society's laws and regulations, tolerating conflicts of interest, persistently violating accepted norms of fairness, and pursuing various forms of cronyism.

    The gaming of Securities and Exchange Commission rules by Citigroup's mortgage-banking desk in 2007 is an illuminating example of institutional corruption in the finance industry. After exploring that case, I provide a more complete definition of gaming, and explain how short-termism invites the kind of gaming and institutional corruption that occurred at Citigroup. I then examine the key drivers of short-termism in contemporary business, and their potential effects on the behavior of both executives and their organizations.

    I conclude by proposing mechanisms to deter the corrupting effects of short-termism, including changes in both business and public policy. While business leaders and policymakers have been cautious in implementing many of these countermeasures, we must seriously consider them if want to rein in the public and private costs of institutional corruption in the private sector.

    Keywords: Business and Shareholder Relations; Public Ownership; Performance Expectations; Economy; Crime and Corruption; Ethics; Trust; Financial Services Industry; United States;

    Citation:

    Salter, Malcolm S. "How Short-Termism Invites Corruption—And What to Do About It." Harvard Business School Working Paper, No. 12-094, April 2012.
  2. Lawful but Corrupt: Gaming and the Problem of Institutional Corruption in the Private Sector

    This paper describes how the gaming of society's rules by corporations contributes to the problem of institutional corruption in the world of business. "Gaming" in its various forms involves the use of technically legal means to subvert the intent of society's rules in order to gain advantage over rivals, maximize reported earnings, maintain high credit ratings, preserve access to capital on favorable terms, and reap personal rewards-just to mention several possible motives. It is one of the most corrosive forms of institutional corruption in business. "Institutional corruption" refers to company-sanctioned behavior and relationships that may be lawful but either harm the public interest or weaken the capacity of the institution to achieve its primary purposes. The most salient consequence of institutional corruption is diminished public trust in the governance of the institution. In this paper, I describe the twin phenomena of gaming and institutional corruption—and how the former contributes to the latter, often with the support of professional advisors at law and auditing firms. I illustrate these phenomena with examples from Enron, which (apart from outright fraud) pursued one of the greatest gaming strategies of all time. I also point to the implementation of the Dodd-Frank Act as an excellent source of clinical data pertaining to gaming in a more contemporary setting. I then discuss how gaming and other trust-destroying behaviors have been encouraged by the short-term decision-making horizons of both corporate executives and managers of large investment funds, how those time horizons are largely driven by ways in which the performance of operating executives and investment fund managers is measured and rewarded, and how the directors of these entities become complicit in the gaming of society's rules and the spreading of institutional corruption. I end by suggesting possible remedies for curbing the ill effects of continued gaming of society's rules and restoring much needed public trust in the offending institutions.

    Keywords: Crime and Corruption; Civil Society or Community; Competitive Advantage; Earnings Management; Trust; Law; Performance; Investment Funds; Private Sector; Behavior; Relationships; Goals and Objectives;

    Citation:

    Salter, Malcolm S. "Lawful but Corrupt: Gaming and the Problem of Institutional Corruption in the Private Sector." Harvard Business School Working Paper, No. 11-060, December 2010.
  3. Innovation Corrupted: The Rise and Fall of Enron, Part I

    Citation:

    Salter, Malcolm S. "Innovation Corrupted: The Rise and Fall of Enron, Part I." Harvard Business School Working Paper, No. 03-077, January 2003.
  4. A Note on Governance and Corporate Control

    Citation:

    Salter, Malcolm S. "A Note on Governance and Corporate Control." Harvard Business School Working Paper, No. 01-090, June 2001.

Cases and Teaching Materials

  1. Goldman Sachs IPO, The

    Addresses the proposed IPO and raises questions regarding how agency costs may rise or fall as Goldman converts from a private partnership to a public limited corporation.

    Keywords: Initial Public Offering; Going Public; Corporate Governance; Agency Theory; Financial Services Industry;

    Citation:

    Nanda, Ashish, Malcolm S. Salter, Boris Groysberg, and Sarah Matthews. "Goldman Sachs IPO, The." Harvard Business School Case 800-016, September 1999. (Revised April 2006.)
  2. Innovation Corrupted: The Rise and Fall of Enron (A)

    Presents a brief historical overview of Enron's rise, its strategic successes and failures, the evolution of its business model, and the organizational processes relied upon by Enron's management to drive and monitor the business. A rewritten version of an earlier case.

    Keywords: Adaptation; Success; Business Model; Business History; Growth Management; Governance Controls; Innovation and Management; Failure; Business Processes; Energy Industry; United States;

    Citation:

    Salter, Malcolm S. "Innovation Corrupted: The Rise and Fall of Enron (A)." Harvard Business School Case 905-048, December 2004. (Revised October 2005.)
  3. Innovation Corrupted: The Rise and Fall of Enron (B)

    Presents a brief historical overview of Enron's rise, its strategic successes and failures, the evolution of its business model, and the organizational processes relied upon by Enron's management to drive and monitor the business. A rewritten version of an earlier case.

    Keywords: Transition; Risk Management; Management Practices and Processes; Success; Business Model; Strategy; Business History; Governance Controls; Innovation and Management; Failure; Business Processes; Energy Industry; United States;

    Citation:

    Salter, Malcolm S. "Innovation Corrupted: The Rise and Fall of Enron (B)." Harvard Business School Case 905-049, December 2004. (Revised October 2005.)
  4. Innovation Corrupted: The Rise and Fall of Enron

    Presents an historical overview of Enron's rise and fall and summarizes what is currently known about (1) the evolution of Enron's business model, (2) the organizational processes Enron officials relied on to drive and monitor the business, (3) emergent behavior related to the structuring of major partnerships and corporate financial reporting, and (4) oversight provided by Enron's management and board of directors. Concludes with a comment on how Enron's story as a new, post-deregulation corporate model escaped critical analysis by the financial community, the business press, and other observers for such a long time.

    Keywords: Business Model; Behavior; Governing and Advisory Boards; Success; Transformation; Failure; Business Processes; Energy Industry; United States;

    Citation:

    Salter, Malcolm S. "Innovation Corrupted: The Rise and Fall of Enron." Harvard Business School Case 904-036, October 2003. (Revised April 2005.)
  5. Internal Governance and Control at Goldman Sachs: Block Trading

    Although the explicit problem presented in the case concerns pricing a block trade, the real issue involves the decision-making and oversight processes used to arrive at a price that is appropriate for both the client and Goldman Sachs. Asks students in assignment questions to map the decision and control processes used in this core activity and then to reflect on whether these processes are sustainable and scalable as Goldman Sachs grows from 5,000 employees to 20,000 employees within a 5-year period. Goldman Sachs' decision and control processes are based, at root, on trust, so the question becomes whether and how a culture based on trust is scalable.

    Keywords: Price; Governance Controls; Trust; Organizational Culture; Decision Making; Financial Services Industry;

    Citation:

    Salter, Malcolm S., and Ratna Sarkar. "Internal Governance and Control at Goldman Sachs: Block Trading." Harvard Business School Case 904-026, November 2003. (Revised April 2004.)
  6. EXP Systems

    Discusses selecting investors and avoiding board-level conflicts of interest in start-ups. Using the "term sheet" in third-round financing as a negotiation over future governance and control rights. A rewritten version of an earlier case.

    Keywords: Conflict of Interests; Governance Controls; Governing and Advisory Boards; Business Startups; Management Teams;

    Citation:

    Salter, Malcolm S., and Alison Berkley Wagonfeld. "EXP Systems." Harvard Business School Case 903-022, July 2002. (Revised August 2003.)
  7. Tracking Stocks at Genzyme (A)

    Genzyme, a tracking stock pioneer, has used its innovative capital structure as a way to frame and grow its R&D-intensive business. Facing the question of how best to integrate a new acquisition into its tracking stock structure, Genzyme's top management is forced to review how tracking stocks add value to Genzyme, whether this value is sustainable, what future governance and control problems the current structure might present, and how these problems might be best handled. A rewritten version of an earlier note.

    Keywords: Integration; Value Creation; Motivation and Incentives; Conflict of Interests; Stocks; Capital Structure; Research and Development; Corporate Governance; Biotechnology Industry;

    Citation:

    Salter, Malcolm S. "Tracking Stocks at Genzyme (A)." Harvard Business School Case 902-023, November 2001. (Revised December 2002.)
  8. Debate Over Unbundling General Motors: The Delphi Divestiture and Other Possible Transactions, The

    Ever since General Motors (GM) announced in February 1997 its intention to divest Delphi Automotive Systems--its upstream parts manufacturing operations--Wall Street had called for further unbundling, and various stakeholders competed for their claim of value represented by GM. The case presents GM's four options for the Delphi unit and raises valuation and governance issues regarding the remaining corporate assets. A rewritten version of an earlier case.

    Keywords: Valuation; Supply Chain; Vertical Integration; Corporate Strategy; Corporate Governance; Auto Industry; United States;

    Citation:

    Salter, Malcolm S. "Debate Over Unbundling General Motors: The Delphi Divestiture and Other Possible Transactions, The." Harvard Business School Case 800-196, November 1999. (Revised June 2002.)
  9. OAO YUKOS Oil Company

    This case presents the history and current position of Russia's second-largest oil company, YUKOS, as it seeks listing on the NYSE as an ADR and attempts to rid itself from a punishing "governance discount" by the capital markets. This is a company with a history of significant corporate governance abuses that is, more recently, attempting to reform its ways. Although the market value of the company has risen dramatically over the past year (2000), it is still selling at a whopping discount from the imputed market value of its gigantic oil and gas reserves. What more should YUKOS be doing to eliminate its governance discount? How can any program be implemented successfully given the current ownership structure of the company?

    Keywords: Stocks; Capital Markets; Corporate Governance; Developing Countries and Economies; Energy Sources; Energy Industry; Russia;

    Citation:

    Salter, Malcolm S., and Joshua N. Rosenbaum. "OAO YUKOS Oil Company." Harvard Business School Case 902-021, October 2001. (Revised January 2002.)
  10. Regal Cinemas LBO (A)

    This case describes one of the greatest LBO failures of the 1990s. It presents an overview of the difficulties two experienced buyout sponsors were forced to deal with.

    Keywords: Leveraged Buyouts; Corporate Governance; Failure;

    Citation:

    Salter, Malcolm S., and Daniel Green. "Regal Cinemas LBO (A)." Harvard Business School Case 902-019, July 2001.
  11. Regal Cinemas LBO (B)

    Supplements the (A) case.

    Keywords: Leveraged Buyouts; Corporate Governance; Failure;

    Citation:

    Salter, Malcolm S., and Daniel Green. "Regal Cinemas LBO (B)." Harvard Business School Case 902-020, July 2001.
  12. Japanese Financial Crisis and the Long-Term Credit Bank of Japan, The

    Illustrates the failure of Japan's banking elite to adjust to new economic conditions.

    Keywords: Financial Crisis; Banks and Banking; Behavior; Japan;

    Citation:

    Salter, Malcolm S., and Andrew Eggers. "Japanese Financial Crisis and the Long-Term Credit Bank of Japan, The." Harvard Business School Case 801-039, September 2000.
  13. Deere & Company: Sustaining Value

    The question facing Deere & Co. is whether or not to adopt some of the organizational technologies of private equity investors (decentralized equity holdings, use of leverage to control the disposition of cash flows, the externalization of the capital budgeting process, partial spin-offs) to sustain over the next decade the supernormal returns created through more traditional means.

    Keywords: Budgets and Budgeting; Decision Choices and Conditions; Cash Flow; Private Equity; Wealth; Adoption; Manufacturing Industry;

    Citation:

    Salter, Malcolm S., and Marlowe Dayley. "Deere & Company: Sustaining Value." Harvard Business School Case 899-001, November 1998. (Revised July 2000.)
  14. ORIX KK

    Describes the challenges facing a Japanese financial services company as it attempts to maintain its ability to attract and retain talented employees. The CEO's ideas of corporate governance and evidence from the competitive labor environment suggest the need for more performance-based compensation. But employees at all levels of the firm understand that any new compensation system must carefully consider the strategic goals of the firm, the cultural context of the Japanese workplace, and the legal framework of the Japanese corporation. Considers how a particular performance measurement system known as ORIX Value Added (OVA) might be used in the firm.

    Keywords: Corporate Governance; Compensation and Benefits; Motivation and Incentives; Management Analysis, Tools, and Techniques; Geographic Location; Financial Services Industry; Japan;

    Citation:

    Salter, Malcolm S., and Andrew Eggers. "ORIX KK." Harvard Business School Case 800-272, June 2000. (Revised July 2000.)
  15. Restructuring General Motors North America (A): Pay-for-Performance

    Presents the new pay-for-performance scheme adopted by General Motors (GM) in its 1999 reorganization of its sales and marketing organization. Once in operation, many administrative problems developed requiring a reconsideration of the scheme's basic architecture.

    Keywords: Restructuring; Compensation and Benefits; Marketing; Organizational Change and Adaptation; Problems and Challenges; Sales; Auto Industry; North America;

    Citation:

    Salter, Malcolm S. "Restructuring General Motors North America (A): Pay-for-Performance." Harvard Business School Case 800-027, July 1999.
  16. Deere & Company: Sustaining Value TN

    Teaching Note for (9-899-001).

    Keywords: Manufacturing Industry;

    Citation:

    Salter, Malcolm S. "Deere & Company: Sustaining Value TN." Harvard Business School Teaching Note 899-231, February 1999. (Revised March 1999.)
  17. Block 16: Conoco's "Green" Oil Strategy (A)

    Conoco's attempted to win an oil development contract in Ecuador's tropical rain forest. The case discusses government perspectives, environmental perspectives, and indigenous people's perspectives. Allows role playing in a "negotiating forum" set up by Conoco to get their developing plan in the various interest groups. This oil development contract is key to Conoco's Latin American E&D strategy.

    Keywords: Governance; Contracts; Growth and Development Strategy; Negotiation; Practice; Business and Community Relations; Environmental Sustainability; Perspective; Culture; Corporate Strategy; Latin America;

    Citation:

    Salter, Malcolm S., and Susan E.A. Hall. Block 16: Conoco's "Green" Oil Strategy (A). Harvard Business School Case 394-001, July 1993. (Revised September 1995.)
  18. Block 16: Ecuadorian Government's Perspective

    Supplements Block 16: Conoco's Green Oil Strategy (A). Provides the government perspective on Conoco's Ecuadorian strategy. Designed to be distributed to students who will be playing the role of Ecuadorian government officials.

    Keywords: Policy; Business or Company Management; Resource Allocation; Marketing Strategy; Natural Environment; Environmental Sustainability; Perspective; Corporate Strategy;

    Citation:

    Salter, Malcolm S., and Susan E.A. Hall. "Block 16: Ecuadorian Government's Perspective." Harvard Business School Supplement 394-002, July 1993. (Revised September 1995.)
  19. Block 16: Indigenous Peoples' Perspective

    Supplements Block 16: Conoco's Green Oil Strategy (A). Provides the indigenous people's perspective on Conoco's Ecuadorian strategy. Designed to be distributed to students who will be playing the role of Ecuadorian indigenous people.

    Keywords: Perspective; Ethnicity Characteristics;

    Citation:

    Salter, Malcolm S., and Susan E.A. Hall. "Block 16: Indigenous Peoples' Perspective." Harvard Business School Supplement 394-003, July 1993. (Revised September 1995.)
  20. Block 16: Environmental Groups' Perspectives

    Supplements Block 16: Conoco's Green Oil Strategy (A). Provides the environmental groups' perspective on Conoco's Ecuadorian strategy. Designed to be distributed to students who will be playing the role of Ecuadorian environmentalists.

    Keywords: Resource Allocation; Marketing Strategy; Natural Environment; Environmental Sustainability; Perspective; Corporate Strategy;

    Citation:

    Salter, Malcolm S., and Susan E.A. Hall. "Block 16: Environmental Groups' Perspectives." Harvard Business School Supplement 394-004, July 1993. (Revised September 1995.)
  21. Block 16: Conoco's "Green" Oil Strategy (B)

    Presents a continuation of the (A) case. New legal and social issues arise.

    Keywords: Energy Generation; Energy Industry;

    Citation:

    Salter, Malcolm S., and Susan E.A. Hall. Block 16: Conoco's "Green" Oil Strategy (B). Harvard Business School Supplement 394-005, July 1993. (Revised September 1995.)
  22. Block 16: Conoco's "Green" Oil Strategy (C)

    Presents a continuation of the (A) and (B) cases. New issues arise.

    Keywords: Latin America;

    Citation:

    Salter, Malcolm S., and Susan E.A. Hall. Block 16: Conoco's "Green" Oil Strategy (C). Harvard Business School Supplement 394-006, July 1993. (Revised September 1995.)
  23. Block 16: Conoco's "Green" Oil Strategy (D)

    Presents a continuation of the (A), (B), and (C) cases.

    Keywords: Energy Generation; Energy Industry;

    Citation:

    Salter, Malcolm S., and Susan E.A. Hall. Block 16: Conoco's "Green" Oil Strategy (D). Harvard Business School Supplement 394-007, July 1993. (Revised September 1995.)
  24. Block 16: Management's Perspective

    Supplements Block 16: Conoco's Green Oil Strategy (A). Reviews the environmental challenges facing the oil industry throughout upstream and downstream operations, and oil companies' competitive responses. Reviews Conoco's and Du Pont's environmental initiatives in more detail. Provides a multinational and competitive context to deepen management's appreciation of the strategic significance of the Block 16 development.

    Keywords: Local Range; Operations; Environmental Sustainability; Perspective; Competitive Strategy; Corporate Strategy;

    Citation:

    Salter, Malcolm S., and Susan E.A. Hall. "Block 16: Management's Perspective." Harvard Business School Supplement 394-075, November 1993. (Revised September 1995.)
  25. Asahi Breweries Ltd.

    Focuses on competitive repositioning, organizational renewal, and personal leadership. Describes how Asahi Breweries was faced with a major capacity expansion decision after succeeding in increasing market share dramatically in the traditionally stable Japanese beer industry. This has been done through the creation of a new product category, "Dry Beer." Information on industry economics, Asahi's organizational process, and competitive interaction are provided as well as an in-depth description of top management's profile and management posture at Asahi. Designed to allow discussion on how to make a balanced decision incorporating such market strategy issues as product strategy, competitor retaliation, advertising policy, rebate policy, and distributor relations management, as well as such organizational elements as corporate goals, financial integrity, quality control, personnel policy, management philosophy, and leadership style.

    Keywords: Competitive Strategy; Expansion; Leadership; Organizational Structure; Product Launch; Management Teams; Business or Company Management; Marketing Strategy; Supply Chain Management; Mission and Purpose; Food and Beverage Industry; Japan;

    Citation:

    Salter, Malcolm S. "Asahi Breweries Ltd." Harvard Business School Case 389-114, February 1989. (Revised October 1994.)
  26. U.S. Auto Industry: Scenarios and Choices for the 1990s, Supplement

    Provides relevant back-up data for the required scenario writing exercise.

    Keywords: Auto Industry; United States;

    Citation:

    Salter, Malcolm S. "U.S. Auto Industry: Scenarios and Choices for the 1990s, Supplement." Harvard Business School Supplement 391-002, July 1990. (Revised August 1994.)
  27. U.S. Auto Industry: Scenarios and Choices for the 1990s

    Asks students to prepare a capacity utilization scenario for the U.S. auto industry in 1992 and to propose proper courses of action for Ford and General Motors in the face of globalizing competition. The subject is "corporate strategy in an overcapacitized world." Rewritten version of earlier case.

    Keywords: Globalization; Business or Company Management; Competitive Strategy; Corporate Strategy; Auto Industry; United States;

    Citation:

    Salter, Malcolm S. "U.S. Auto Industry: Scenarios and Choices for the 1990s." Harvard Business School Case 391-001, July 1990. (Revised August 1994.)
  28. Moet-Hennessy Group

    Presents the strategic and organizational problems of a venerable French firm pursuing product and financial diversification in an international context.

    Keywords: Globalization; Product Marketing; Organizations; Diversification; France;

    Citation:

    Salter, Malcolm S. "Moet-Hennessy Group." Harvard Business School Case 386-191, May 1986. (Revised October 1993.)
  29. Volkswagen Group

    Keywords: Auto Industry;

    Citation:

    Salter, Malcolm S. "Volkswagen Group." Harvard Business School Case 385-333, May 1985. (Revised September 1993.)
  30. Conoco's: "Green" Oil Strategy (A)

    Conoco faces challenges in formulating a proactive environmental strategy for its proposed oil development in Ecuador's pristine tropical rain forest region. The case outlines the innovative process in which Conoco collaborated with a wide range of often conflicting constituency groups to define and implement its policies, along with Conoco's successes and failures in reaching constituency consensus.

    Keywords: Decision Choices and Conditions; Ethics; Collaborative Innovation and Invention; Corporate Social Responsibility and Impact; Outcome or Result; Problems and Challenges; Business and Stakeholder Relations; Conflict Management; Ecuador;

    Citation:

    Salter, Malcolm S., and Joseph L. Badaracco Jr. Conoco's: "Green" Oil Strategy (A). Harvard Business School Case 392-133, April 1992. (Revised July 1993.)
  31. Managing Health Care at Ford Motor Co.

    Keywords: Health Care and Treatment; Auto Industry; Health Industry; United States;

    Citation:

    Lodge, George C., and Malcolm S. Salter. "Managing Health Care at Ford Motor Co." Harvard Business School Case 792-015, October 1991. (Revised November 1992.)
  32. Conoco's "Green" Oil Strategy (A) TN

    Teaching Note for (9-392-133).

    Keywords: Ecuador;

    Citation:

    Salter, Malcolm S., and Susan E.A. Hall. Conoco's "Green" Oil Strategy (A) TN. Harvard Business School Teaching Note 393-021, September 1992. (Revised September 1992.)
  33. NIKE Series, Video

    Citation:

    Bartlett, Christopher A., and Malcolm S. Salter. "NIKE Series, Video." Harvard Business School Video Supplement 392-504, September 1991.
  34. Olivetti Group (A)

    Keywords: Information Technology Industry;

    Citation:

    Salter, Malcolm S., and Roy V. Eales. "Olivetti Group (A)." Harvard Business School Case 391-134, January 1991. (Revised June 1991.)
  35. Olivetti Group (B): The Transition Concerto, 1st and 2nd Movements

    Keywords: Corporate Strategy; Information Technology Industry;

    Citation:

    Salter, Malcolm S., and Roy V. Eales. "Olivetti Group (B): The Transition Concerto, 1st and 2nd Movements." Harvard Business School Case 391-137, January 1991. (Revised June 1991.)
  36. Olivetti Group (C): The Transition Concerto, Finale

    Citation:

    Salter, Malcolm S., and Roy V. Eales. "Olivetti Group (C): The Transition Concerto, Finale." Harvard Business School Supplement 391-138, January 1991. (Revised June 1991.)
  37. Airbus vs. Boeing (A): Turbulent Skies

    Presents the economic and political dimensions of competition in the commercial aircraft industry, as demonstrated by Airbus of Europe and Boeing of the United States.

    Keywords: Economics; Government and Politics; Competition; Aerospace Industry; Europe; United States;

    Citation:

    Salter, Malcolm S. "Airbus vs. Boeing (A): Turbulent Skies." Harvard Business School Case 386-193, May 1986. (Revised November 1990.)
  38. Airbus vs. Boeing (B): The Storm Intensifies

    Discusses the growing competition faced by U.S. producers of civil aircraft due to the success and expanding product line of Airbus Industries. Designed to foster discussion of international trade policy as it affects producers in the industry and to encourage firm managers to consider competitive strategies, given their influence over trade policy negotiations. A rewritten version of an earlier case.

    Keywords: Trade; Policy; Negotiation; Competition; Competitive Strategy; Aerospace Industry; United States;

    Citation:

    Salter, Malcolm S. "Airbus vs. Boeing (B): The Storm Intensifies." Harvard Business School Case 388-145, May 1988. (Revised November 1990.)
  39. Airbus vs. Boeing (C): Steps Toward Dispute Resolution

    Presents partial resolution of problem. Cites points still to be resolved in trade dispute between U.S. aircraft manufacturers and Airbus Industrie. To be used as a handout after discussion of the case.

    Keywords: Trade; Problems and Challenges; Conflict and Resolution; Aerospace Industry; United States;

    Citation:

    Salter, Malcolm S. "Airbus vs. Boeing (C): Steps Toward Dispute Resolution." Harvard Business School Supplement 388-146, May 1988. (Revised November 1990.)
  40. Adding Value at the Top: A Perspective on the General Manager's Job

    Citation:

    Salter, Malcolm S., and Howard H. Stevenson. "Adding Value at the Top: A Perspective on the General Manager's Job." Harvard Business School Background Note 388-089, February 1988. (Revised July 1990.)
  41. Olivetti (A): Picking Up the Pieces

    Keywords: Information Technology Industry;

    Citation:

    Eales, Roy V., and Malcolm S. Salter. "Olivetti (A): Picking Up the Pieces." Harvard Business School Case 388-157, June 1988. (Revised May 1990.)
  42. Olivetti (B): Putting De Benedetti's ""Mark I"" Strategy to Work

    Keywords: Corporate Strategy; Information Technology Industry;

    Citation:

    Eales, Roy V., and Malcolm S. Salter. Olivetti (B): Putting De Benedetti's ""Mark I"" Strategy to Work. Harvard Business School Case 388-158, June 1988. (Revised May 1990.)
  43. Olivetti (C1): The Transition Concerto, Finale

    Citation:

    Salter, Malcolm S., and Roy V. Eales. "Olivetti (C1): The Transition Concerto, Finale." Harvard Business School Supplement 390-004, October 1989. (Revised May 1990.)
  44. Olivetti (C): The Transition Concerto, 1st and 2nd Movements

    Keywords: Corporate Strategy; Information Technology Industry;

    Citation:

    Salter, Malcolm S., and Roy V. Eales. "Olivetti (C): The Transition Concerto, 1st and 2nd Movements." Harvard Business School Case 390-003, October 1989.
  45. Industrial Governance and Corporate Performance

    Keywords: Governance; Performance;

    Citation:

    Dunlop, John T., and Malcolm S. Salter. "Industrial Governance and Corporate Performance." Harvard Business School Background Note 390-032, September 1989.
  46. Note on Takeovers and the Corporate Commonwealth

    Citation:

    Salter, Malcolm S. "Note on Takeovers and the Corporate Commonwealth." Harvard Business School Background Note 386-203, June 1986. (Revised September 1989.)
  47. U.S. Auto Industry: Scenarios and Choices, Teaching Note

    Citation:

    Salter, Malcolm S. "U.S. Auto Industry: Scenarios and Choices, Teaching Note." Harvard Business School Teaching Note 390-002, July 1989. (Revised August 1989.)
  48. U.S. Auto Industry: Scenarios and Choices

    Keywords: Corporate Strategy; Situation or Environment; Auto Industry; United States;

    Citation:

    Salter, Malcolm S. "U.S. Auto Industry: Scenarios and Choices." Harvard Business School Case 389-152, April 1989. (Revised June 1989.)
  49. U.S. Auto Industry: Scenarios and Choices, Supplement

    Citation:

    Salter, Malcolm S. "U.S. Auto Industry: Scenarios and Choices, Supplement." Harvard Business School Supplement 389-153, April 1989. (Revised June 1989.)
  50. Asahi Breweries Ltd., Teaching Note

    Teaching Note for (9-389-114).

    Keywords: Food and Beverage Industry; Japan;

    Citation:

    Salter, Malcolm S. "Asahi Breweries Ltd., Teaching Note." Harvard Business School Teaching Note 389-213, June 1989.
  51. Europe's New Industrial Revolution

    Citation:

    Salter, Malcolm S., and Roy V. Eales. "Europe's New Industrial Revolution." Harvard Business School Background Note 388-099, January 1988. (Revised April 1989.)
  52. Air Canada: The Privatization Option

    Keywords: Competition; Corporate Governance; Privatization; Air Transportation Industry; Canada;

    Citation:

    Salter, Malcolm S. "Air Canada: The Privatization Option." Harvard Business School Case 388-156, June 1988. (Revised August 1988.)
  53. Privatization: The Motives and the Outcomes

    Citation:

    Salter, Malcolm S. "Privatization: The Motives and the Outcomes." Harvard Business School Background Note 389-004, July 1988.
  54. Note on Advertising Effectiveness in the Beer Industry

    Keywords: Advertising Campaigns; Performance Effectiveness; Food and Beverage Industry;

    Citation:

    Salter, Malcolm S. "Note on Advertising Effectiveness in the Beer Industry." Harvard Business School Background Note 382-096, November 1987.
  55. TC2 and the Apparel Industry

    Keywords: Apparel and Accessories Industry;

    Citation:

    Salter, Malcolm S. "TC2 and the Apparel Industry." Harvard Business School Case 387-160, June 1987. (Revised October 1987.)
  56. Note on Forums and Governance

    Citation:

    Dunlop, John T., and Malcolm S. Salter. "Note on Forums and Governance." Harvard Business School Background Note 388-046, September 1987.
  57. Semiconductors: U.S. Response to Japanese Ascendency

    Keywords: Competition; Trade; Business and Government Relations; Semiconductor Industry; Japan; United States;

    Citation:

    Salter, Malcolm S. "Semiconductors: U.S. Response to Japanese Ascendency." Harvard Business School Case 387-210, June 1987. (Revised September 1987.)
  58. Government Intervention in the European Computer and Semiconductor Industries

    Keywords: Business and Government Relations; Computer Industry; Semiconductor Industry; Europe;

    Citation:

    Salter, Malcolm S. "Government Intervention in the European Computer and Semiconductor Industries." Harvard Business School Case 388-023, August 1987.
  59. Apparel Industry's Political Profile

    Citation:

    Salter, Malcolm S. "Apparel Industry's Political Profile." Harvard Business School Background Note 387-161, April 1987. (Revised June 1987.)
  60. Aircraft Industry's Political Profile

    Keywords: Business and Government Relations; Air Transportation Industry;

    Citation:

    Salter, Malcolm S. "Aircraft Industry's Political Profile." Harvard Business School Case 387-190, June 1987.
  61. Deregulation in the Airline Industry: Implications for Industrial Governance

    Citation:

    Salter, Malcolm S. "Deregulation in the Airline Industry: Implications for Industrial Governance." Harvard Business School Background Note 387-028, April 1987.
  62. Canadian Textile Policy Since 1970

    Citation:

    Salter, Malcolm S. "Canadian Textile Policy Since 1970." Harvard Business School Background Note 387-150, April 1987.
  63. Note on Diversification as a Strategy

    Presents a discussion of corporate diversification. Covers historical background, the concept of strategy for a diversified company, and concepts of value creation.

    Keywords: Diversification; Strategy; Value Creation;

    Citation:

    Porter, Michael E., and Malcolm S. Salter. "Note on Diversification as a Strategy." Harvard Business School Background Note 382-129, March 1982. (Revised June 1986.)
  64. Volkswagen Group (B)

    Citation:

    Salter, Malcolm S. "Volkswagen Group (B)." Harvard Business School Supplement 386-144, June 1986.
  65. Note on the Creation of Corporate Wealth

    Citation:

    Salter, Malcolm S. "Note on the Creation of Corporate Wealth." Harvard Business School Background Note 386-131, January 1986. (Revised March 1986.)
  66. Note on the World Auto Industry in Transition

    Keywords: Auto Industry;

    Citation:

    Salter, Malcolm S. "Note on the World Auto Industry in Transition." Harvard Business School Background Note 385-332, May 1985. (Revised January 1986.)
  67. Fuqua Industries (A), (B), and (C), Teaching Note

    Citation:

    Salter, Malcolm S., and Richard G. Hamermesh. "Fuqua Industries (A), (B), and (C), Teaching Note." Harvard Business School Teaching Note 375-280, February 1975. (Revised October 1985.)
  68. Volkswagen Group, Teaching Note

    Keywords: Auto Industry;

    Citation:

    Salter, Malcolm S. "Volkswagen Group, Teaching Note." Harvard Business School Teaching Note 385-017, June 1985. (Revised August 1985.)
  69. Boston Symphony Orchestra, Teaching Note

    Keywords: Music Industry;

    Citation:

    Salter, Malcolm S. "Boston Symphony Orchestra, Teaching Note." Harvard Business School Teaching Note 380-104, November 1979. (Revised July 1985.)
  70. NIKE: International Context

    Keywords: Apparel and Accessories Industry;

    Citation:

    Salter, Malcolm S., and Michael J. Roberts. "NIKE: International Context." Harvard Business School Background Note 385-328, April 1985.
  71. Hudepohl Brewing Co.

    Presents the problem of how an established regional brewer can survive the onslaught of national breweries, some of which are being cross-subsidized by diversified parent companies. Requires detailed analysis of what operations are profitable and unprofitable for Hudepohl, in addition to industry and competitive analysis. Hudepohl is a private company.

    Keywords: Business Subsidiaries; Profit; Management Analysis, Tools, and Techniques; Industry Growth; Private Ownership; Problems and Challenges; Competition; Diversification;

    Citation:

    Salter, Malcolm S. "Hudepohl Brewing Co." Harvard Business School Case 381-092, December 1980. (Revised December 1984.)
  72. Tensor Corp.

    Citation:

    Salter, Malcolm S. "Tensor Corp." Harvard Business School Case 370-041, October 1969. (Revised August 1983.)
  73. Value Creation and General Management

    Keywords: Value Creation;

    Citation:

    Salter, Malcolm S. "Value Creation and General Management." Harvard Business School Background Note 384-080, August 1983.
  74. Fuqua Industries (A)

    Citation:

    Salter, Malcolm S., and Richard G. Hamermesh. "Fuqua Industries (A)." Harvard Business School Case 375-189, December 1974. (Revised May 1983.)
  75. CIBA-GEIGY Corp. (B)

    Keywords: Pharmaceutical Industry;

    Citation:

    Salter, Malcolm S. "CIBA-GEIGY Corp. (B)." Harvard Business School Case 375-247, January 1975. (Revised May 1983.)
  76. CIBA-GEIGY Corp. (A)

    Citation:

    Salter, Malcolm S. "CIBA-GEIGY Corp. (A)." Harvard Business School Case 375-246, January 1975. (Revised April 1983.)
  77. Boston Symphony Orchestra

    Keywords: Arts; Music Entertainment; Music Industry; Fine Arts Industry; Boston;

    Citation:

    Salter, Malcolm S. "Boston Symphony Orchestra." Harvard Business School Case 375-340, April 1975. (Revised April 1983.)
  78. Ford Motor Co. (A): The Automobile Crisis and Ford's Strategic Posture--1980

    Keywords: Crisis Management; Auto Industry;

    Citation:

    Salter, Malcolm S. "Ford Motor Co. (A): The Automobile Crisis and Ford's Strategic Posture--1980." Harvard Business School Case 382-161, May 1982. (Revised February 1983.)
  79. Ford Motor Co. (B): The Automobile Crisis and Ford's Political Strategy--1980

    Keywords: Strategy; Crisis Management; Government and Politics; Business and Government Relations; Auto Industry; United States;

    Citation:

    Salter, Malcolm S. "Ford Motor Co. (B): The Automobile Crisis and Ford's Political Strategy--1980." Harvard Business School Case 382-162, May 1982. (Revised February 1983.)
  80. Ford Motor Co. (C)

    Keywords: Auto Industry;

    Citation:

    Salter, Malcolm S. "Ford Motor Co. (C)." Harvard Business School Supplement 382-165, May 1982. (Revised February 1983.)
  81. Ford Motor Co. (D)

    Keywords: Auto Industry;

    Citation:

    Salter, Malcolm S. "Ford Motor Co. (D)." Harvard Business School Supplement 382-166, May 1982. (Revised February 1983.)
  82. Beech Aircraft Corp.

    Keywords: Aerospace Industry;

    Citation:

    Salter, Malcolm S. "Beech Aircraft Corp." Harvard Business School Case 369-008, June 1969. (Revised November 1977.)
  83. Franklin Harris and Sons, Inc.

    Citation:

    Salter, Malcolm S. "Franklin Harris and Sons, Inc." Harvard Business School Case 377-019, July 1976.
  84. Gulf & Western Industries (A)

    Citation:

    Salter, Malcolm S. "Gulf & Western Industries (A)." Harvard Business School Case 376-046, September 1975.
  85. Fuqua Industries (C)

    Citation:

    Salter, Malcolm S., and Richard G. Hamermesh. "Fuqua Industries (C)." Harvard Business School Case 375-191, December 1974. (Revised April 1975.)
  86. Fuqua Industries (B)

    Citation:

    Salter, Malcolm S., and Richard G. Hamermesh. "Fuqua Industries (B)." Harvard Business School Supplement 375-190, December 1974.
  87. Note on the Light Aircraft Industry

    Keywords: Air Transportation; Air Transportation Industry;

    Citation:

    Salter, Malcolm S. "Note on the Light Aircraft Industry." Harvard Business School Background Note 370-036, June 1970.
  88. Piper Aircraft Corp.

    Keywords: Air Transportation Industry;

    Citation:

    Salter, Malcolm S. "Piper Aircraft Corp." Harvard Business School Case 369-007, June 1969.

    Research Summary

  1. Inside Modern Giants

    This research focuses on the leadership of large, complex firms--'modern giants'--companies of billions of dollars in revenues and tens of thousands of employees. Our interest lies in describing how the corporate center and senior management teams of large companies with a demonstrated capacity to earn their cost of capital and grow their earnings faster than their direct competitors actually influence such corporate performance. Very large companies face three special challenges in achieving superior performance: the 'large numbers' problem affecting top line growth rates, the 'diminshing returns' problem affecting economic returns, and a 'governance and control' problem known in the economics literature as the 'agency problem.' Our research address each of these challenges by focusing on two critical top management activities. The first is promoting innovation and growth—that is, finding ways to generate and exploit more new profit opportunities from the collective whole than that available from the various business properties as separately owned and managed entities. The second critical activity involves exercising effective coordination and control of existing operations—that is, ensuring that the value of the enterprise as a whole is greater than the simple summing of its parts. The first activity places top management teams in an entrepreneurial role. The second places the corporate center in a custodial or trusteeship role. Some leaders and their teams are successful at meeting these somewhat conflicting challenges (and living two quite different roles simultaneously), while others are not. How can we explain the differences in meeting these challenges? We believe that explaining these differences, and coming to an understanding of what makes modern giants more or less effective as organizations, requires a detailed grasp of how their leaders design and use management processes to guide individual and collective action. Using a sample of six to ten U.S. and non-U.S. companies, our goal is to understand what constitutes core management processes for successful modern giants, how and why they vary both within and across firms, how they evolve over time, and how the resulting variety of core processes within large firms are managed.
  2. Innovation Corrupted: The Origins and Legacy of Enron's Collapose

    (forthcoming, Harvard University Press)