Rakesh Khurana

Marvin Bower Professor of Leadership Development

Rakesh Khurana is the Marvin Bower Professor of Leadership Development at the Harvard Business School. He is also the Master of Cabot House at Harvard College. He teaches a doctoral seminar on Management and Markets and and MBA courses in corporate governance and leadership. He is the course head for the first year MBA leadership and organizational behavior course.

Professor Khurana received his B.S. from Cornell University in Ithaca, New York and his A.M. (Sociology) and Ph.D. in Organization Behavior from Harvard University. Prior to attending graduate school, he worked as a founding member of Cambridge Technology Partners in Sales and Marketing.

Professor Khurana's research uses a sociological perspective to focus on the processes by which elites and leaders are selected and developed. He has written extensively about the CEO labor market with a particular interest on: the factors that lead to vacancies in the CEO position; the factors that affect the choice of successor; the role of market intermediaries such as executive search firms in CEO search; and the consequences of CEO succession and selection decisions for subsequent firm performance and strategic choices. He has published articles on Corp. Governance in the Harvard Business and Sloan Management Review. His book on the CEO labor market, Searching for a Corporate Savior: The Irrational Quest for Charismatic CEOs (Princeton University Press). The book is an analysis of the labor market for CEOs.

In the book Khurana explains the basic mechanics of the market, how it differs from other labor markets, how it has changed in the past twenty years, and whether it is successful in placing the best candidates in the available jobs. He focuses on the growing tendency of boards of directors to ignore candidates inside their firms and to hire CEOs from outside. He seeks to show that this trend has emerged not because of the intrinsic merits of the “external market,” but because of the rise of investor capitalism and despite evidence that reliance on this market for CEO succession and executive compensation has serious problems that may threaten the viability of firms and the legitimacy of market capitalism.

Khurana's subsequent research grows out of the same interests in the social context of business leadership and the allocation of leadership positions that motivated his research on the CEO labor market. His 2008 book, From Higher Aims to Hired Hands: The Social Transformation of American Business Schools and the Unfulfilled Promise of Management as a Profession (2007: Princeton University Press), chronicles the evolution of management as a profession, with particular focus on the institutional development of the MBA. The focus of this book lies in its direct bearing on the question of how professional management has claimed and received legitimation for its role as the steward of a very substantial proportion of society’s material wealth and resources—a role that has itself been subject to changing interpretations over the decades since the phenomenon of professional management first appeared on the American scene. Guiding questions in this research stream include: Where did our current shareholder-centered, agency-based view of the role of professional management come from—particularly in light of the very different one that underlay the founding of the first professional business schools and the granting to them of a place within the university? How does our current view of the role of the professional manager compare with the way that professional responsibility has traditionally been conceived in the other professions? In view of the way that professional roles have recently been evolving in professions such as law or medicine, do market forces inevitably undermine professional autonomy and standards? What would be the potential benefits and drawbacks of management becoming more like the other professions in its structure and culture than it has been during its history to date? Khurana's work argues that without a re-commitment to the professionalization project, business schools risk devolving into narrow vocation schools and serving largely as a credentialing system, ultimately weakening the legitimacy of MBA programs and contributing to a business culture that garners low trust and low legitimacy in society.

From Higher Aims to Hired Hands received the American Sociological Association's Max Weber Book Award in 2008 for most outstanding contribution to scholarship in the past two years. In 2007, the book was also the Winner of the 2007 Best Professional/Scholarly Publishing Book in Business, Finance and Management, Association of American Publishers.

Khurana has also been working with Dean Nitin Nohria to help legitimate the study of leadership as a multi-disciplinary field. Despite the fact that most business schools have "leadership" in their mission, the field is not regarded as a legitimate field of academic study. Khurana and Nohria have co-edited The Handbook of Leadership Theory and Practice, a  volume aimed at advancing leadership studies as an academic field of study and scholarship that was  published by Harvard Business Press in 2010 and the Handbook of Leadership Teaching and Pedagogy (with Snook and Nohria). 

The Handbook of Leadership Teaching and Pedagogy received the 2010 Outstanding Leadership Book award by the University of San Diego and the International Leadership Association.

Khurana, Nitin Nohria, and Scott Snook are also co-editors of the forthcoming Handbook of Leadership Teaching and Pedagogy, a volume aimed at examining the pedagogical approaches and theories that undergird existing leadership development and training. The volume will be published by Sage Publications in 2011. Khurana, Nohria and Snook are also co-organizing the fourth annual Harvard Leadership Forum that will focus on developing course modules that integrate the teaching of values in standard organizational behavior and leadership courses. 

Khurana is now working on a new research project examining global leadership and the culture, systems, and organizations that support transnational networks of institutional leadership. 

Khurana's work on the deficiencies of the CEO labor market and his research on business education is regularly featured by the general media such as: Business Week, Fortune, The Wall Street Journal, The New York Times, Newsweek, The Washington Post, CNBC, The Economist, Globe and Mail, The New Yorker, Chief Executive and Corporate Board Member magazine. He has also published opinion-editorials in some of these outlets. He has consulted to corporations and executive search firms to help improve their CEO succession, governance, and executive development practices. He has been recognized by the London Times as one of 'The Thinkers 50', a list of the fifty most influential management thinkers in the world. 

Interested in book reviews and everyday observations, visit Rakesh's weblog at rakeshkhurana.typepad.com. Interested in signing the MBA Oath which aims to help move management toward seeing itself as a profession see mbaoath.org. Interested in helping develop a set of global standards that will allow for broad, inclusive and sustainable value creation by firms visit www.globalbusinessoath.org

In his role as a professor, Khurana does occasionally receive payment for executive education
 (HBS projects and external projects) and consulting projects related to leadership and governance issues. He is a member of the board of the MBA Oath Project. He is also on the board of American Family Insurance. When these activities are directly related to the collection of data or the development of cases, they will be noted on any material published or revised after 2010. Beginning in 2011 and then updated annually, he will list all firms he has received compensation for in excess of $5,000. 

Books

  1. Searching for a Corporate Savior: The Irrational Quest for Charismatic CEOs

    Rakesh Khurana

    Corporate CEOs are headline news. Stock prices rise and fall at word of their hiring and firing. Business media debate their merits and defects as if individual leaders determined the health of the economy. Yet we know surprisingly little about how CEOs are selected and dismissed or about their true power. This is the first book to take us into the often secretive world of the CEO selection process. Rakesh Khurana's findings are surprising and disturbing. In recent years, he shows, corporations have increasingly sought CEOs who are above all else charismatic, whose fame and force of personality impress analysts and the business media, but whose experience and abilities are not necessarily right for companies' specific needs. The labor market for CEOs, Khurana concludes, is far less rational than we might think. Khurana's findings are based on a study of the hiring and firing of CEOs at over 850 of America's largest companies and on extensive interviews with CEOs, corporate board members, and consultants at executive search firms. Written with exceptional clarity and verve, the book explains the basic mechanics of the selection process and how hiring priorities have changed with the rise of shareholder activism. Khurana argues that the market for CEOs, which we often assume runs on cool calculation and the impersonal forces of supply and demand, is culturally determined and too frequently inefficient. Its emphasis on charisma artificially limits the number of candidates considered, giving them extraordinary leverage to demand high salaries and power. It also raises expectations and increases the chance that a CEO will be fired for failing to meet shareholders' hopes. The result is corporate instability and too little attention to long-term strategy. The book is a major contribution to our understanding of corporate culture and the nature of markets and leadership in general.

    Keywords: Managerial Roles; Selection and Staffing; Personal Characteristics; Experience and Expertise; Investment Activism; Corporate Strategy;

    Citation:

    Khurana, Rakesh. Searching for a Corporate Savior: The Irrational Quest for Charismatic CEOs. Princeton, NJ: Princeton University Press, 2002. View Details
  2. The Handbook for Teaching Leadership: Knowing, Doing, and Being

    Scott Snook, Nitin Nohria and Rakesh Khurana

    The last 25 years have witnessed an explosion in the field of leadership education. This volume brings together leading international scholars across disciplines to chronicle the current state of leadership education and establish a solid foundation on which to grow the field. It encourages leadership educators to explore and communicate more clearly the theoretical underpinnings and conceptual assumptions on which their approaches are based. It provides a forum for the discussion of current issues and challenges in the field and examines the above objectives within the broader perspective of rapid changes in technology, organizational structure, and diversity.

    Keywords: Change; Business Education; Leadership; Goals and Objectives; Management Style; Organizational Structure; Perspective; Diversification; Technology;

    Citation:

    Snook, Scott, Nitin Nohria, and Rakesh Khurana, eds. The Handbook for Teaching Leadership: Knowing, Doing, and Being. Thousand Oaks, CA: Sage Publications, 2012. View Details
  3. Handbook of Leadership Theory and Practice

    Nitin Nohria and Rakesh Khurana

    The study of leadership suffers intellectual neglect and has yet to be considered a serious academic discipline. And though the mission statements of most business schools profess to "develop leaders who make a difference in the world," these same schools produce hardly any serious scholarship or research to advance our understanding of leadership. To fill this void, Nitin Nohria and Rakesh Khurana have invited leading scholars from different disciplinary backgrounds to take stock of what we know about leadership and to set an agenda for future research. Based on a Harvard Business School Centennial Colloquium, this edited volume brings together the most important scholars from fields as diverse as psychology, sociology, economics, and history to shape the academic discipline of leadership.

    Keywords: Business Education; Interdisciplinary Studies; Leadership; Practice; Research; Theory;

    Citation:

    Nohria, Nitin, and Rakesh Khurana, eds. Handbook of Leadership Theory and Practice. Harvard Business Press, 2010. View Details
  4. From Higher Aims to Hired Hands: The Social Transformation of American Business Schools and the Unfulfilled Promise of Management as a Profession

    Rakesh Khurana

    Is management a profession? Should it be? Can it be? This major work of social and intellectual history reveals how such questions have driven business education and shaped American management and society for more than a century. The book is also a call for reform. Rakesh Khurana shows that university-based business schools were founded to train a professional class of managers in the mold of doctors and lawyers but have effectively retreated from that goal, leaving a gaping moral hole at the center of business education and perhaps in management itself. Khurana begins in the late nineteenth century, when members of an emerging managerial elite, seeking social status to match the wealth and power they had accrued, began working with major universities to establish graduate business education programs paralleling those for medicine and law. Constituting business as a profession, however, required codifying the knowledge relevant for practitioners and developing enforceable standards of conduct. Khurana, drawing on a rich set of archival material from business schools, foundations, and academic associations, traces how business educators confronted these challenges with varying strategies during the Progressive era and the Depression, the postwar boom years, and recent decades of freewheeling capitalism. Today, Khurana argues, business schools have largely capitulated in the battle for professionalism and have become merely purveyors of a product, the MBA, with students treated as consumers. Professional and moral ideals that once animated and inspired business schools have been conquered by a perspective that managers are merely agents of shareholders, beholden only to the cause of share profits. According to Khurana, we should not thus be surprised at the rise of corporate malfeasance. The time has come, he concludes, to rejuvenate intellectually and morally the training of our future business leaders.

    Keywords: Business Education; Moral Sensibility; Profit; Social History; Leadership; Managerial Roles; United States;

    Citation:

    Khurana, Rakesh. From Higher Aims to Hired Hands: The Social Transformation of American Business Schools and the Unfulfilled Promise of Management as a Profession. Princeton: Princeton University Press, 2007. (Winner of Association of American Publishers Best Professional/Scholarly Publishing Book in Business, Finance and Management. Winner of Max Weber Award for Distinguished Scholarship for the book which makes an outstanding contribution to scholarship on organizations, occupations, and/or work presented by American Sociological Association.) View Details

Journal Articles

  1. From Social Control to Financial Economics: The Linked Ecologies of Economics and Business in Twentieth Century America

    Marion Fourcade and Rakesh Khurana

    This article draws on historical material to examine the co-evolution of economic science and business education over the course of the twentieth century, showing that fields evolve not only through internal struggles but also through struggles taking place in adjacent fields. More specifically, we argue that the scientific strategies of business schools played an essential—if largely invisible and poorly understood—role in major transformations in the organization and substantive direction of social-scientific knowledge, and specifically economic knowledge, in twentieth century America. We use the Wharton School as an illustration of the earliest trends and dilemmas (c. 1900–1930), when business schools found themselves caught between their business connections and their striving for moral legitimacy in higher education. Next, we look at the creation of the Carnegie Tech Graduate School of Industrial Administration after World War II. This episode illustrates the increasingly successful claims of social scientists, backed by philanthropic foundations, on business education and the growing appeal of "scientific" approaches to decision making and management. Finally, we argue that the rise of the Graduate School of Business at the University of Chicago from the 1960s onwards (and its closely related cousin at the University of Rochester) marks the decisive ascendancy of economics, and particularly financial economics, in business education over the other behavioral disciplines. We document the key role of these institutions in diffusing "Chicago-style" economic approaches—offering support for deregulatory policies and popularizing narrowly financial understandings of the firm—that sociologists have described as characteristic of the modern neo-liberal regime.

    Keywords: Professions; Disciplines; Neo-Liberalism; education; Education; Economics; Finance; Society; United States;

    Citation:

    Fourcade, Marion, and Rakesh Khurana. "From Social Control to Financial Economics: The Linked Ecologies of Economics and Business in Twentieth Century America." Theory and Society 42, no. 2 (March 2013): 121–159. View Details
  2. Estimating the Value of Connections to Vice-President Cheney

    Rakesh Khurana, Raymond Fisman, Julia Galef and Yongxiang Wang

    We estimate the market valuation of personal ties to Richard Cheney. Our proxies for personal ties are based on corporate board linkages that are prevalent in the network sociology literature. We consider a number of distinct political and personal events that either affected Cheney's political fortunes or his ability to hand out political favors. Specifically, we consider: (a) market reaction of connected companies to news of Cheney's heart attacks; (b) market reaction of connected companies to Cheney's being placed in charge of the vice-presidential search process and his surprise self-appointment; (c) correlation of the value of connected companies with the probability of a Bush victory in 2000; and (d) correlation of the value of connected companies with the probability of war in Iraq. Contrary to conventional wisdom, we find that in all cases, the value of ties to Cheney is precisely estimated as zero. We interpret this as evidence that U.S. institutions are effective in controlling rent-seeking through personal ties with high-level government officials.

    Keywords: networks; event analysis; political economy; corruption; Networks; United States;

    Citation:

    Khurana, Rakesh, Raymond Fisman, Julia Galef, and Yongxiang Wang. "Estimating the Value of Connections to Vice-President Cheney." B.E. Journal of Economic Analysis & Policy 13, no. 3 (December 2012). View Details
  3. Herbert A. Simon on What Ails Business Schools: More than A Problem in Organizational Design

    Rakesh Khurana and J.C. Spender

    We critically examine Herbert Simon's 1967 essay, "The Business School: A Problem in Organizational Design." We consider this essay within the context of Simon's key ideas about organizations, particularly those closely associated with the 'Carnegie perspective' on organizations, and how they influenced the reinvention of American business schools in the post-WWII era, were deeply influenced by the post-War context, and also were appropriated by the Ford and Carnegie Foundations to reform business school teaching and research. We argue that management educators misappropriated Simon's concept of an intellectually robust and relevant research and educational agenda for business schools that has in part contributed to the intellectual stasis that now characterizes business education research and its capacity to inform management practice.

    Keywords: Organizational Design; Perspective; Innovation and Invention; Business Education; Research; Management Practices and Processes; Teaching;

    Citation:

    Khurana, Rakesh, and J.C. Spender. "Herbert A. Simon on What Ails Business Schools: More than A Problem in Organizational Design." Journal of Management Studies 49, no. 3 (May 2012): 619–639. View Details
  4. Identity Work in Business Schools: From Don Quixote, to Dons and Divas

    Rakesh Khurana and Scott A. Snook

    Keywords: Identity; Business Education;

    Citation:

    Khurana, Rakesh, and Scott A. Snook. "Identity Work in Business Schools: From Don Quixote, to Dons and Divas." Special Anniversary Issue Journal of Management Inquiry 20, no. 4 (December 2011): 358–361. (Commentary on The Scholar's Quest, an essay by James March.) View Details
  5. Book review of From Predators to Icons: Exposing the Myth of the Business Hero, by Michel Villette and Catherine Vuillermot. Translated by George Holoch. Ithaca, N.Y.: ILR Press, 2009.

    Rakesh Khurana

    Keywords: Information;

  6. Mission-Driven Governance

    Raymond Fisman, Rakesh Khurana and Edward Martenson

    The purpose of this paper is to provide a useful, easily applied theory of governance performance. The existing model is fundamentally adversarial, rooted in the paradigm of principal-agent conflict. At its base is an image of governance as a never-ending struggle between board members and executives—"principals" who guard the organization's resources but have limited information to "monitor" how these resources are used and "agents" who have insider knowledge and control the information-filtering apparatus of the organizations. Many of the concepts and ideas in this traditional model are shaped by a long history of governance failure and organizational pathology. It suffices as a solution to the challenge of meeting legal compliance standards through formal systems, but we believe it utterly fails to show how to create a governance system that supports organizational effectiveness. We propose a framework that gives equal weight to creating a governance system whose effectiveness is measured by the achievement of the organization's mission or purpose.

    In this article, we argue that this reluctance to evaluate an organization's governance against an organization's stated mission, coupled with a narrow focus on a rules-based approach to governance, are jointly responsible for the persistence of problems in governance performance, despite decades of high-priority attention. These governance misconceptions translate into four basic barriers to effecting change:

    1. Many leaders who are dissatisfied with the state of their organizations' affairs are nevertheless resigned to it because they do not think it can be changed. They are schooled to think that solutions require new rules, but new rules are inadequate to treat the performance problems that they encounter most often.
    2. The refusal to see governance as a performance element that can be improved may be viewed at least in part as a defense mechanism. No one likes to be evaluated, and board members have the power to avoid it. This might explain why only about one in ten nonprofit organizations have implemented governance evaluation routines.
    3. When confronted with governance problems, we tend to follow the path of least resistance, seeking simplistic solutions with bright-line rules such as the policy/implementation division of labor for board and management. The difficulty, of course, is that governance is a highly complex activity, requiring decision makers to integrate many kinds of knowledge into a coherent whole.
    4. Finally, the dominant model of governance that persists is fundamentally flawed and out of date. It simply doesn't fit experience on the ground. Without a broadly accepted theory of governance performance to provide a standard against which organizations can evaluate and improve their practices, every decision maker applies their own tacit theory. These, in turn, tend to cancel each other out in a lowest-common-denominator way. An organization's definition of "good governance" should be explicit and agreed to by all, not left to individual interpretation.

    Keywords: Corporate Governance; Governing and Advisory Boards; Knowledge Management; Standards; Mission and Purpose; Organizational Change and Adaptation; Performance Effectiveness; Performance Evaluation;

    Citation:

    Fisman, Raymond, Rakesh Khurana, and Edward Martenson. "Mission-Driven Governance." Stanford Social Innovation Review 7, no. 3 (summer 2009). View Details
  7. It's Time to Make Management a True Profession

    Nitin Nohria and Rakesh Khurana

    In the face of the recent institutional breakdown of trust in business, managers are losing legitimacy. To regain public trust, management needs to become a true profession in much the way medicine and law have, argue Khurana and Nohria of Harvard Business School. True professions have codes, and the meaning and consequences of those codes are taught as part of the formal education required of their members. Through these codes, professional institutions forge an implicit social contract with society: Trust us to control and exercise jurisdiction over an important occupational category, and, in return, we will ensure that the members of our profession are worthy of your trust - that they will not only be competent to perform the tasks entrusted to them, but that they will also conduct themselves with high standards and great integrity. The authors believe that enforcing educational standards and a code of ethics is unlikely to choke entrepreneurial creativity. Indeed, if the field of medicine is any indication, a code may even stimulate creativity. The main challenge in writing a code lies in reaching a broad consensus on the aims and social purpose of management. There are two deeply divided schools of thought. One school argues that management's aim should simply be to maximize shareholder wealth; the other argues that management's purpose is to balance the claims of all the firm's stakeholders. Any code will have to steer a middle course in order to accommodate both the value-creating impetus of the shareholder value concept and the accountability inherent in the stakeholder approach.

    Keywords: Competency and Skills; Education; Ethics; Corporate Accountability; Management; Trust; Value Creation;

    Citation:

    Nohria, Nitin, and Rakesh Khurana. "It's Time to Make Management a True Profession." Harvard Business Review 86, no. 10 (October 2008). View Details
  8. Review of Capitalism, Social Privilege and Managerial Ideologies, by Ernesto R. Gantman. Hampshire: Ashgate Publishing, 2005.

    Rakesh Khurana

    Keywords: Economic Systems; Society; Management; Information;

    Citation:

    Khurana, Rakesh. "Review of Capitalism, Social Privilege and Managerial Ideologies, by Ernesto R. Gantman. Hampshire: Ashgate Publishing, 2005." American Journal of Sociology 111, no. 5 (March 2006): 1608–1611. View Details
  9. Sources of Structural Inequality in Managerial Labor Markets

    Rakesh Khurana and Mikolaj Jan Piskorski

    This article proposes two mechanisms that allow actors to obtain unearned advantages in labor markets. The first mechanism is consistent with collusive closure arguments. However, it questions the assumption that those who seek to benefit from collusive closure will always initiate it. Instead, it suggests that under certain cultural conditions, closure may arise through a series of self-reproducing social constructions that restrict access to a position to those who conform to certain socially defined criteria. The second mechanism is consistent with Sørensen's discussion of the role of composite rents in generating unearned advantages. Whereas Sørensen focused on composite rents between actors and productive assets, the mechanism presented here suggests that actors can obtain unearned advantages even if workers are not specific to productive assets, as long as there are composite rents between these productive assets. Data in support of the models are provided from the executive labor market.

    Keywords: Management; Labor; Markets;

    Citation:

    Khurana, Rakesh, and Mikolaj Jan Piskorski. "Sources of Structural Inequality in Managerial Labor Markets." Research in Social Stratification and Mobility 21 (2004): 169–187. View Details

Book Chapters

  1. American Exceptionalism?: A Comparative Analysis of the Origins and Trajectory of U.S. Business Education Development

    Rakesh Khurana

    As business education in an academic setting becomes an increasingly global phenomenon, the university-based business school in America remains a unique institution. This holds true despite the fact that the American business school as it evolved in the post-World War II era has become the dominant model for business schools in Europe and elsewhere in the world. Most observers looking at these institutions as they exist today, without an awareness of their differing historical origins and development, would likely conclude that business schools inside and outside of the United States exhibit more similarities than differences. Yet the uniqueness of the American business school lies not so much in the widely imitated strategies and practices it has developed over the last sixty years as in the way that, for more than a century, it has articulated and shaped for the larger society a set of ideas, aspirations, and norms concerning business and management. Moreover, the visions and values animating the university-based business school in America—which arguably account more than any other factor for the great influence it has enjoyed in American society—have changed significantly from the era when the earliest schools were founded up until the present day. Thus the institution that came to be the major influence on business education worldwide in the postwar era is significantly different from the one that preceded it in the first half of the twentieth century, when American and European business schools developed along largely separate lines.

    Keywords: Values and Beliefs; Business History; Business Education; Power and Influence; Society; United States; Europe;

    Citation:

    Khurana, Rakesh. "American Exceptionalism?: A Comparative Analysis of the Origins and Trajectory of U.S. Business Education Development." In Business Schools and their Contribution to Society, edited by Mette Morsing and Alfons Sauquet. Sage Publications, 2011. View Details
  2. Teaching Leadership: Advancing the Field

    Scott Snook, Nitin Nohria and Rakesh Khurana

    Keywords: Leadership Development; Teaching;

    Citation:

    Snook, Scott, Nitin Nohria, and Rakesh Khurana. "Teaching Leadership: Advancing the Field." Chap. 1 in The Handbook for Teaching Leadership: Knowing, Doing, and Being, edited by Scott Snook, Nitin Nohria, and Rakesh Khurana. Thousand Oaks, CA: Sage Publications, 2011. View Details
  3. Revisiting the Meaning of Leadership

    Joel Podolny, Rakesh Khurana and Marya Hill-Popper

    During the past 50 years, organizational scholarship on leadership has shifted from a focus on the significance of leadership for meaning-making to the significance of leadership for economic performance. This shift has been problematic for two reasons. First, it has given rise to numerous conceptual difficulties that now plague the study of leadership. Second, there is now comparatively little attention given to the question of how individuals find meaning in the economic sphere even though this question should arguably be one of the most important questions for organizational scholarship. This chapter discusses several reasons for the shift, arguing that one of the most important has been the lack of a clear definition and operationalization of meaningful economic activity. As a first step to redressing this shift, we offer a definition and operationalization of meaningful action, and we propose a typology of executive behaviors as a foundation for a systematic exploration of the meaning-making capacity of leaders. We conclude with a discussion of the relationship between the capacity of leaders to infuse meaning and the capacity of leaders to impact on performance.

    Keywords: Communication Intention and Meaning; Economics; Leadership; Performance Improvement; Behavior;

    Citation:

    Podolny, Joel, Rakesh Khurana, and Marya Hill-Popper. "Revisiting the Meaning of Leadership." Chap. 3 in Handbook of Leadership Theory and Practice, edited by Nitin Nohria and Rakesh Khurana. Harvard Business Press, 2010. View Details
  4. Advancing Leadership Theory and Practice

    Rakesh Khurana and Nitin Nohria

    More than a means of getting ahead and gaining power, leadership must be understood as a serious professional and personal responsibility. In this introductory chapter, editors Nitin Nohria, the dean of Harvard Business School, and Rakesh Khurana, a professor of leadership development at HBS, point out that while many university graduate programs in business, law, education, and public policy claim that their mission is to educate leaders who will advance the well-being of society, the reality is that scholarly research on leadership is, at best, at the periphery of these same universities. In fact, the increasing demand for insights about leadership has largely been met by popular writers--consultants, journalists, or "iconic" business leaders. The papers that comprise this book--originally presented at the Harvard Business School Centennial Colloquium, "Leadership: Advancing an Intellectual Discipline"--are a starting point. Nohria and Khurana define five dualities that they believe are at the heart of research on leadership--for example, the duality between the leader's role in producing superior results and the leader's role in creating meaning. The chapter concludes with a brief summary of each of the book's 25 subsequent chapters.

    Keywords: Leadership; Practice; Research; Theory;

    Citation:

    Khurana, Rakesh, and Nitin Nohria. "Advancing Leadership Theory and Practice." Chap. 1 in Handbook of Leadership Theory and Practice, edited by Nitin Nohria and Rakesh Khurana. Harvard Business Press, 2010. View Details
  5. Position and Emotion: The Significance of Georg Simmel's Structural Theories for Leadership and Organizational Behavior

    Rosabeth Moss Kanter and Rakesh Khurana

    Keywords: Leadership; Rank and Position; Status and Position; Organizational Culture;

    Citation:

    Kanter, Rosabeth Moss, and Rakesh Khurana. "Position and Emotion: The Significance of Georg Simmel's Structural Theories for Leadership and Organizational Behavior." In Oxford Handbook of Sociology and Organization Studies, edited by Paul S. Adler. Oxford, U.K.: Oxford University Press, 2009. View Details
  6. Corporate Honesty and Business Education: A Behavioral Model

    Rakesh Khurana and Herbert Gintis

    Since the mid-1970s neoclassical economic theory has dominated business school thinking and teaching in dealing with the nature of human motivation. However valuable in understanding competitive product and financial markets, neoclassical economic theory employs an incorrect, Homo economicus, model of human behavior that treats managers as selfish maximizers of personal wealth and power. The Homo economicus model implies that a firm's board of directors can best further stockholders' interests by (a) selecting managerial personnel who are focused virtually exclusively on personal financial gain, and (b) inducing them to act as agents of the stockholders by devising incentives that minimize the difference between the financial returns to stockholders and the firm's leading managers. Moreover, while neoclassical financial theory, in the form of the efficient markets hypothesis, is a generally insightful portrayal of financial markets, this theory implies that a firm's stock price is the best overall measure of the firm's long-term value. This implies that managerial incentives should be tied to stock market performance, since this will best align the interests of managers and stockholders. However, this implication is invalid when managers can manipulate information flows that influence short-term stock price movements. Neoclassical economic theory thus fosters a corporate culture that ignores the personal rewards and social responsibilities associated with managing a modern enterprise, and encourages an ethic of greedy materialism in which managers are expected to care only about personal financial reward, and in which such human character virtues as honesty and decency are honored only when they contribute to personal material reward. However, a wide range of experiments based on behavioral game theory contradicts the Homo economicus model. In complex environments where complete contracts cannot be written or enforced, honesty, integrity, intrinsic job satisfaction, and peer recognition are powerful motivators, leading to better results for contracting parties than reliance on financial incentives alone. In particular, many individuals place high value on such character virtues as honesty and integrity for their own sake and are more than willing to sacrifice material gain to maintain these virtues. We suggest that business schools develop and teach a professional code of ethics similar to those promoted in law, education, science, and medicine, that the staffing of managerial positions be guided by considerations of moral character and ethical performance, and that a corporate culture based on character virtues, together with stockholder-managerial relationships predicated in part on reciprocity and mutual regard, could improve both the moral character of business and the profitability of corporate enterprise.

    Keywords: Business Education; Ethics; Managerial Roles; Corporate Social Responsibility and Impact; Organizational Culture; Business and Shareholder Relations; Mathematical Methods; Behavior;

    Citation:

    Khurana, Rakesh, and Herbert Gintis. "Corporate Honesty and Business Education: A Behavioral Model." In Moral Markets: The Critical Role of Values in the Economy, edited by Paul J. Zak. Princeton University Press, 2008. View Details

Working Papers

  1. How Foundations Think: The Ford Foundation as a Dominating Institution in the Field of American Business Schools

    Rakesh Khurana, Kenneth Kimura and Marion Fourcade

    The question of institutional change has become central to organizational research (Powell, 2008). Recent scholarship has demonstrated, often through carefully researched cases, that institutions can and sometimes do change. According to this research, there are two primary factors that can cause institutions to change. First, institutional entrepreneurs, including individual actors or small groups of actors, are able to think and act outside the confines of their institutional context and, therefore, mobilize change in directions that favor new sets of interests (for a review, see Battilana, 2010). A second factor that contributes to institutional change is determining whether the processes are endogenous to the everyday functioning of institutions, such as the loose coupling between formal and informal practices or the contested meanings in the adoption of new practices (Leblibici, et al., 1991; Lounsbury and Pollack, 2001). While both research approaches have been quite productive and provocative, some scholars have raised concerns about this turn in institutional research. They point out that there is a theoretical inconsistency between the strong reliance on individuals as the primary unit of analysis and the examination of endogenously generated processes to explain institutional change (Scott, 2008). For example, the practical deficiencies of individual agency and endogenous processes as the primary sources of institutional change become especially apparent when one considers large-scale institutions such as healthcare, academic disciplines, or social services, which are nested within or cut across a variety of institutional sectors. These institutions either operate within a highly constrained environment of norms, regulations, and practices that are taken for granted or in a context of pluralistic and contested demands (D'Aunno, Succi, and Alexander, 2000; Denis, Lamothe, and Langley, 2001; Abbott, 1988; D'Aunno, Sutton, and Price, 1991). This research modestly attempts to explore a decidedly more organizational and exogenous perspective to explain institutional change. We start with a construct called dominating institutions, a class of formal organizations that are purposively designed to change other institutions. We suggest that such organizations exist and provide us with a stepping stone toward a more theoretically consistent and empirically grounded explanation for how large-scale institutional change sometimes occurs. The goal of this paper is to describe the structural characteristics and associated behaviors of dominating institutions as they incite change within other institutions. Their primary structure can best be described as adjacency, a space between institutional fields that provides these organizations with the advantages of connectivity across a wide variety of institutions and with a vantage point that allows them to think strategically about key intervention points for changing an institution. However, while adjacency is an important structural position, it is not, by itself, dominance. Dominance requires action. Dominating institutions exercise dominance by (1) brokering across different institutional sectors, (2) legitimizing or stigmatizing organizations and/or their practices, and (3) creating resource dependencies with the key organizations they are trying to change. We carry out this research by examining a large-scale foundation and its approach to reshaping one of the largest institutional sectors within higher education.

    Keywords: Change; Business Education; Business History; Organizations; Organizational Change and Adaptation; Organizational Structure; Relationships; Behavior;

    Citation:

    Khurana, Rakesh, Kenneth Kimura, and Marion Fourcade. "How Foundations Think: The Ford Foundation as a Dominating Institution in the Field of American Business Schools." Harvard Business School Working Paper, No. 11-070, January 2011. View Details
  2. From Social Control to Financial Economics: The Linked Ecologies of Economics and Business in Twentieth Century America

    Marion Fourcade and Rakesh Khurana

    As the main producers of managerial elites, business schools represent strategic research sites for understanding the formation of economic practices and representations. This article draws on historical material to analyze the changing place of economics in American business education over the course of the 20th century. We use the Wharton School as an illustration of the earliest trends and dilemmas (c. 1900-1930), when business schools found themselves caught between their business connections and their striving for moral legitimacy in higher education. We show how several of the school's leaders were closely involved in progressive reforms and presided over the development of the empirical social sciences to address questions of labor regulation and control within manufacturing industries. Next, we look at the creation of the Carnegie Tech Graduate School of Industrial Administration after World War II. This episode illustrates the increasingly successful claims of social scientists, backed by philanthropic foundations, on business education and the growing appeal of "scientific" approaches to decision making and management. We also show that these transformations were homologically related to changes in the prevailing mode of governance in the American economy: business schools became essential sites for the development of tools and methods (e.g., input-output approaches, linear programming, forecasting) for the management of the new large, diversified conglomerates. Finally, we argue that the rise of the Graduate School of Business at the University of Chicago from the 1960s onwards marks the decisive ascendancy of economics, and particularly financial economics, in business education over the other behavioral disciplines, as well as the decisive ascendancy of business schools as producers of economic knowledge. By following teacher-student networks, we also document the key role of business schools in diffusing "Chicago-style" economic approaches-offering support for anti-regulatory approaches and popularizing narrowly financial understandings of the firm (Fligstein 1990, 2002)-that sociologists have described as characteristic of the modern neo-liberal regime.

    Keywords: Economics; Practice; Business Education; Labor and Management Relations; Decision Making; Management Analysis, Tools, and Techniques; Change; Governing Rules, Regulations, and Reforms; Finance; Knowledge; Production; Business Conglomerates; Education Industry; United States;

    Citation:

    Fourcade, Marion, and Rakesh Khurana. "From Social Control to Financial Economics: The Linked Ecologies of Economics and Business in Twentieth Century America." Harvard Business School Working Paper, No. 11-071, January 2011. View Details
  3. Moving Higher Education to the Next Stage: A New Set of Societal Challenges, a New Stage of Life, and a Call to Action for Universities

    Rosabeth Moss Kanter, Rakesh Khurana and Nitin Nohria

    Citation:

    Kanter, Rosabeth Moss, Rakesh Khurana, and Nitin Nohria. "Moving Higher Education to the Next Stage: A New Set of Societal Challenges, a New Stage of Life, and a Call to Action for Universities." Harvard Business School Working Paper, No. 06-021, November 2005. View Details

Cases and Teaching Materials

  1. The World Economic Forum's Global Leadership Fellows Program

    Rakesh Khurana and Eric Baldwin

    This case examines a distinctive leadership development program within the World Economic Forum. The program, born out of the conviction that the complexity of global challenges at the beginning of the 21st century required a new generation of global leaders, recruited a small number of "high potential" young leaders from around the world as "Global Leadership Fellows" each year. During the three-year program, Fellows combined a position at the Forum with formal classroom training modules, one-on-one coaching, peer mentoring, and extensive assessment. The case explores the Forum's understanding of its role in the world, the vision of leadership that animates the program, and the structure and content of the program. It asks how successful the program has been in providing the kind of transformational experience it envisions and whether it could or should be replicated by other organizations.

    Keywords: organizational behavior; leadership skills; training; global organizations; global leadership; World Economic Forum; Globalization; Leadership; Leadership Development; Leadership Style; Leading Change;

    Citation:

    Khurana, Rakesh, and Eric Baldwin. "The World Economic Forum's Global Leadership Fellows Program." Harvard Business School Case 413-118, June 2013. View Details
  2. Occupy Wall Street

    Rakesh Khurana and Eric Baldwin

    This case examines the Occupy Wall Street movement, which emerged in late 2011 in response to the fallout from the global financial crisis of 2008 and the economic downturn that followed. Occupy Wall Street was born out of a sense of frustration with both a global economic system that seemed hostile to the interests of ordinary people and a political system that that seemed to favor the rich. The case provides a timeline of the movement, explores the attitudes, motivations, and goals of the participants, and examines the movement's organizational culture and decision-making processes. It closes by addressing the challenges the movement faced in clarifying its goals and in effecting real and genuine change, particularly as it came under increasing pressure from local authorities.

    Keywords: Occupy Wall Street; organizational behavior; income inequality; democracy; globalization; financial crisis; campaign finance; Globalization; Globalized Economies and Regions; Mission and Purpose; Organizational Culture;

    Citation:

    Khurana, Rakesh, and Eric Baldwin. "Occupy Wall Street." Harvard Business School Case 413-084, November 2012. View Details
  3. Teaming at GE Aviation

    Rakesh Khurana, Jeffrey Polzer, Willy Shih and Eric Baldwin

    Describes the challenges and successes encountered by GE's Aviation business in implementing a teaming work structure and culture in plants across its supply chain. GE Aviation leadership had seen dramatic gains in productivity, quality, and worker satisfaction in manufacturing plants where it had implemented teaming, which was designed to move decision making as close to the product as possible by delegating authority, responsibility, and accountability to front-line workers. The case describes what teaming looked like in two of GE Aviation's plants and discusses the benefits realized in teaming sites. It also describes the challenges GE Aviation leaders had encountered in implementing teaming in the face of an entrenched work structure and culture in one particular plant and discusses the difficulty management had faced in moving forward in transforming the culture of the plant.

    Keywords: organizational behavior; aviation and aerospace; capacity management; competitiveness; corporate culture; corporate structure; Labor unions; Labor relations; manufacturing; organizational culture; organizational structure; Production Planning; General Electric; teaming; managing change; Transformation; Labor Unions; Organizational Change and Adaptation; Organizational Culture; Organizational Structure; Performance Productivity; Leading Change; Management Style; Job Design and Levels; Aerospace Industry; Manufacturing Industry; United States;

    Citation:

    Khurana, Rakesh, Jeffrey Polzer, Willy Shih, and Eric Baldwin. "Teaming at GE Aviation." Harvard Business School Case 413-074, November 2012. View Details
  4. PepsiCo Peru Foods: More than Small Potatoes

    Rosabeth M. Kanter, Rakesh Khurana, Rajiv Lal and Matthew Bird

    The regional head of supply chain for PepsiCo South America Foods and his team had worked for 10 years to realize their dream of creating an agricultural research center in Peru that could provide more productive and healthier varieties of potatoes for the Frito-Lay businesses not only in Peru but also throughout the tropical regions where much of its future growth would come. They were denied several times but kept the idea alive through other projects until conditions presented themselves, aligning their work with the company's "Performance with Purpose" growth strategy. But now that they had secured initial funding for the center, the hard work would begin. Was the project too long-term to succeed? How could they ensure success as the company faced shorter-term pressures?

    Keywords: Food; Supply Chain; Planning; Growth and Development Strategy; Leading Change; Agriculture and Agribusiness Industry; Peru;

    Citation:

    Kanter, Rosabeth M., Rakesh Khurana, Rajiv Lal, and Matthew Bird. "PepsiCo Peru Foods: More than Small Potatoes." Harvard Business School Case 311-083, February 2011. (Revised April 2012.) View Details
  5. PepsiCo, Performance with Purpose, Achieving the Right Global Balance

    Rosabeth Moss Kanter, Rakesh Khurana, Rajiv Lal and Eric Baldwin

    Keywords: Corporate Strategy; Globalized Firms and Management; Strategic Planning; Food and Beverage Industry;

    Citation:

    Kanter, Rosabeth Moss, Rakesh Khurana, Rajiv Lal, and Eric Baldwin. "PepsiCo, Performance with Purpose, Achieving the Right Global Balance." Harvard Business School Case 412-079, October 2011. (Revised January 2012.) View Details
  6. PepsiCo India: Performance with Purpose

    Rosabeth M. Kanter, Rakesh Khurana, Rajiv Lal and Natalie Kindred

    In 2010, PepsiCo India's management is working to translate PepsiCo's new mission, "Performance with Purpose," into practice in the India market. The mission calls for continued financial performance and market leadership, as well as greater emphasis on healthy products, natural resource management, and employee empowerment. PepsiCo India and other regional PepsiCo business units have significant discretion over how to implement Performance with Purpose in their local markets. PepsiCo India has made progress under the mission but continues to be challenged by the inherent tension between short-term financial performance and long-term investments in socially responsible initiatives.

    Keywords: Corporate Strategy; Mission and Purpose; Food and Beverage Industry; India;

    Citation:

    Kanter, Rosabeth M., Rakesh Khurana, Rajiv Lal, and Natalie Kindred. "PepsiCo India: Performance with Purpose." Harvard Business School Case 512-041, December 2011. View Details
  7. Changes to Harvard University's Governing Board

    Rakesh Khurana and Eric Baldwin

    This case examines the decision made by the governing board of Harvard University, known as the Harvard Corporation, to alter its size and operations. The case provides background on Harvard's history, its existing governance structure, and some of the issues that precipitated the change in its governance. It discusses the review process that led to the decision, describes the changes that were made, and examines the reasons offered for those changes.

    Keywords: Organizational Structure; Organizational Change and Adaptation; Change Management; Decisions; Education Industry;

    Citation:

    Khurana, Rakesh, and Eric Baldwin. "Changes to Harvard University's Governing Board." Harvard Business School Case 411-101, June 2011. View Details
  8. Technical Note: An Abridged History of the American Corporation

    Rakesh Khurana, Andrew David Klaber and Eric Baldwin

    This note examines the development of the corporate form in the United States from the eighteenth century to the present, focusing primarily on legal issues. It identifies several major trends in the history of the American corporation: the transition of corporations from public institutions created by special acts of state legislatures to private enterprises created under general incorporation statutes; the emergence of managerial (as opposed to shareholder) control in the modern business corporation; and the movement toward a more relaxed regulatory climate in the twentieth century. It also addresses other topics such as the competition among states for corporate chartering business and the resulting dominance of Delaware in corporate law, shifting notions of corporate personhood, and efforts in the early twenty-first century to increase management accountability and corporate responsibility.

    Keywords: Accounting; Corporate Accountability; Governing Rules, Regulations, and Reforms; History; Code Law; Managerial Roles; Corporate Social Responsibility and Impact; Private Ownership; United States;

    Citation:

    Khurana, Rakesh, Andrew David Klaber, and Eric Baldwin. "Technical Note: An Abridged History of the American Corporation." Harvard Business School Background Note 411-069, November 2010. View Details
  9. HBS Class of 2009: All Talk As They Prepare to Walk?

    Rakesh Khurana, Nitin Nohria and Dalia Rahman

    Max Anderson, HBS Class of 2009, founded the MBA Oath Initiative. The oath was a voluntary pledge "to create value responsibly and ethically." Anderson and a team of students and faculty worked to launch the first MBA Oath Ceremony conducted on campus during Harvard graduation week.

    Keywords: Business Education; Higher Education; Values and Beliefs; Leadership; Corporate Social Responsibility and Impact; Social Issues; Value Creation; Education Industry; Massachusetts;

    Citation:

    Khurana, Rakesh, Nitin Nohria, and Dalia Rahman. "HBS Class of 2009: All Talk As They Prepare to Walk?" Harvard Business School Case 411-024, September 2010. (Revised October 2010.) View Details
  10. Advanced Leadership Note: An Institutional Perspective and Framework for Managing and Leading

    Rosabeth M. Kanter and Rakesh Khurana

    Large-scale societal issues increasingly appear on the agenda of business leaders, including poverty, health, education, business-government relations, and the degradation of the environment. These problems are not entirely new, but the forces of globalization and the economic crisis have made them more visible and increase their urgency. They share several characteristics that signal the need for new kinds of societal leadership and academic scholarship. From the perspective of leadership, one common characteristic of these global problems is that they include both technical and political components. The political context surrounding any problem must be understood and managed, and a variety of institutions across sectors must be mobilized before technical solutions can be applied. Along similar lines, technical knowledge of solutions alone is not enough to scale successful demonstration projects that address these complex problems. That step involves resources and skills centered on forging appropriate systemic connections to effectively distribute solutions. Thus, these challenges cannot be dealt with by one profession or institution acting alone; indeed, effective action most often occurs at the intersections of professional and institutional fields. Holistic solutions, however, can be difficult to implement because of the complex interactions (or failures to interact) among many participants who deal with just one piece of an issue. Finally, solutions to these problems require concurrent actions at several system levels and/or among many stakeholders. This means that social capital as well as financial capital is required to forge relationships, influence opinion leaders and gatekeepers, and ensure cultural appropriateness. This note incorporates these concepts under the rubric of institutional leadership. This introductory note covers the following: (1) key dimensions of the institutional environment surrounding organizations, including the role of stakeholders and the need for new collaborations in creating new markets and solving critical societal problems; (2) the core assumptions of the institutional perspective on organizations and markets, especially in contrast to assumptions of neoclassical economics; and (3) managerial implications—analytics, skills, and success factors.

    Keywords: Change Management; Framework; Global Range; Leadership; Business and Stakeholder Relations; Social Enterprise; Social Issues; Complexity;

    Citation:

    Kanter, Rosabeth M., and Rakesh Khurana. "Advanced Leadership Note: An Institutional Perspective and Framework for Managing and Leading." Harvard Business School Background Note 410-076, January 2010. (Revised August 2010.) View Details
  11. Delphi Corporation (B)

    Rakesh Khurana and Melissa Barton

    Delphi Corporation filed for Chapter 11 bankruptcy in October 2005. Delphi finally emerged in July 2009 as a private company.

    Keywords: History; Private Ownership; Insolvency and Bankruptcy;

    Citation:

    Khurana, Rakesh, and Melissa Barton. "Delphi Corporation (B)." Harvard Business School Supplement 410-077, January 2010. (Revised March 2010.) View Details
  12. Delphi Corporation (A)

    Jay W. Lorsch, Rakesh Khurana and Sonya Sanchez

    The Delphi Corp.'s board of directors faces a transition as lead director Thomas Wyman approaches mandatory retirement. Chairman and CEO J.T. Battenberg reflects on Delphi's history and its successful reinvention by Wyman and Battenberg when it separated from its 100-year-old parent company, GM. Examines how boards of directors interact with top management and how management can work effectively with an active board.

    Keywords: Corporate Governance; Governing and Advisory Boards; Leadership; Management Succession; Management Teams; Relationships; Corporate Strategy;

    Citation:

    Lorsch, Jay W., Rakesh Khurana, and Sonya Sanchez. "Delphi Corporation (A)." Harvard Business School Case 402-033, June 2002. (Revised January 2010.) View Details
  13. Aderans

    Robin Greenwood, Rakesh Khurana and Masako Egawa

    Steel Partners is a U.S.-based hedge fund that has made a large investment in Japan-based wigmaker Aderans. The case is set at the close of the annual meeting in May 2008, when shareholders have voted against all incumbent board members. Steel Partners must act quickly. The case serves as an overview of corporate governance issues in Japan, as well as describing the costs and benefits of the "stakeholder" view of corporate governance.

    Keywords: Voting; Investment; Corporate Governance; Governing and Advisory Boards; Ownership Stake; Business and Shareholder Relations; Japan;

    Citation:

    Greenwood, Robin, Rakesh Khurana, and Masako Egawa. "Aderans." Harvard Business School Case 209-090, March 2009. View Details
  14. Transforming AMFAM

    Rakesh Khurana, Rajiv Lal and Cathy Ross

    On a winter day in December 2007 at the American Family Mutual Insurance Company (AMFAM) headquarters in Madison, Wisconsin, Dave Anderson and Jack Salzwedel remained in the conference room after the senior management meeting had concluded. Anderson, CEO of AMFAM since January 2007, and Salzwedel, named President in August 2006, reflected together on how far the company had come over the past two years. Both recalled meetings in which top executives simply read out activity reports to help prepare a previous CEO for a largely ceremonial board meeting. These days, they sensed energy and movement at different levels—whether in a strategic planning meeting, or in Salzwedel's recent visit to a regional office to explain in person the content of and motivation for the company's new strategic plan. Anderson and Salzwedel were pleased that the just-ended meeting exhibited the kind of engaged discussion, "pushback," and argumentation they had been encouraging.

    Keywords: Customer Focus and Relationships; Governing and Advisory Boards; Marketing; Mission and Purpose; Strategic Planning; Insurance Industry; United States;

    Citation:

    Khurana, Rakesh, Rajiv Lal, and Cathy Ross. "Transforming AMFAM." Harvard Business School Case 508-081, March 2008. (Revised March 2009.) View Details
  15. World Economic Forum (A)

    Tarun Khanna, Rakesh Khurana and Forest L. Reinhardt

    Covers strategy and leadership. World Economic Forum founder Klaus Schwab has created the world's most famous-and exclusive-global business conference, held annually in Davos, Switzerland, and backed by a formidable membership organization that includes many of the world's most prominent firms. He now must consider how to keep the event and the organization vibrant and valuable, as similar new organizations arise and as the challenges of globalization become more difficult. In the aspirational slogan of the Forum, Schwab remains "committed to improving the state of the world," and readers are invited to ponder how he can use the organization he has created to make good on this promise.

    Keywords: Conferences; Economics; Globalization; Leadership; Social Enterprise; Welfare or Wellbeing; Strategy; Davos;

    Citation:

    Khanna, Tarun, Rakesh Khurana, and Forest L. Reinhardt. "World Economic Forum (A)." Harvard Business School Case 708-025, October 2007. (Revised May 2008.) View Details
  16. Tyco International: Corporate Governance

    Rakesh Khurana and James Weber

    Examines how Tyco and its board recovered from its corporate scandals. Describes how its CEO and board set out to institute processes, guidelines, and a culture that would make Tyco into a company widely recognized for its world class corporate governance.

    Keywords: Crime and Corruption; Corporate Governance; Governing Rules, Regulations, and Reforms; Governing and Advisory Boards; Business Processes; Organizational Culture;

    Citation:

    Khurana, Rakesh, and James Weber. "Tyco International: Corporate Governance." Harvard Business School Case 408-059, November 2007. (Revised March 2008.) View Details
  17. AFL-CIO: Office of Investment and Home Depot

    Rakesh Khurana and James Weber

    Describes the AFL-CIO: Office of Investments activities in their campaign to improve governance at Home Depot by calling attention to Home Depot CEO Robert Nardelli's compensation package and the company's poor performance. The AFL-CIO Office of Investments advocates for improved corporate governance at public companies, focusing on the problems of excessive chief executive compensation, improperly backdated stock options, insufficiently independent corporate board members, poor responsiveness to shareholders concerns, and a lack of transparency in the activities and decisions of boards. The AFL-CIO believes that such problems were indicators of underlying problems in corporate governance that could impact the long-term value of a public company. To advance its cause, the Office targeted Home Depot. In an effort to bring about change at the company, the AFL-CIO and AFSCME corresponded with Home Depot executives, staged public protests, appeared on talk shows, and maintained several Web sites. The trillion-dollar size of the union pension funds gave the Office a platform from which to work. The departure of Home Depot's CEO had been a significant step by Home Depot and the company had made other concessions as well. The AFL-CIO Office of Investment now needed to decide whether to continue to use its limited resources focusing on Home Depot or find a new target to forward their cause.

    Keywords: Investment; Corporate Governance; Governing and Advisory Boards; Executive Compensation; Labor Unions; Organizational Change and Adaptation; Business and Shareholder Relations;

    Citation:

    Khurana, Rakesh, and James Weber. "AFL-CIO: Office of Investment and Home Depot." Harvard Business School Case 407-097, June 2007. (Revised December 2007.) View Details
  18. Veridian: Putting a Value on Values

    Rakesh Khurana, Joel Podolny and Jaan Margus Elias

    David Langstaff, the CEO of Veridian, a defense company, struggles with the decision of selling the company. Langstaff has concerned himself with inculcalating his organization with the values necessary for superior achievement over the long term. But as a fiduciary, he had to come up with a single value to monetize the reputation the company had built. Langstaff wondered what was best for the firm and its customers and what his other options were. He also was concerned with how the prospect of selling the firm would square with Veridian's commitment to its constituencies and values-based leadership.

    Keywords: Cash; Corporate Governance; Financial Markets; Law; Leadership; Patents; Values and Beliefs; Service Industry; Aerospace Industry;

    Citation:

    Khurana, Rakesh, Joel Podolny, and Jaan Margus Elias. "Veridian: Putting a Value on Values." Harvard Business School Case 406-028, February 2006. (Revised October 2006.) View Details
  19. Sapient Corporation (Abridged)

    Rakesh Khurana and Joel Podolny

    Describes the start-up, growth, organizational design, and operations over the first 10 years of a professional services firm. Focuses on the creative use of organizational purpose and values as an integral part of strategy and alignment of organizational activities.

    Keywords: Leadership; Organizational Culture; Change Management; Human Resources; Entrepreneurship; Growth and Development Strategy; Business Growth and Maturation; Operations; Business Processes; Management Analysis, Tools, and Techniques; Service Industry;

    Citation:

    Khurana, Rakesh, and Joel Podolny. "Sapient Corporation (Abridged)." Harvard Business School Case 406-058, October 2005. (Revised September 2006.) View Details
  20. Sapient Corporation

    Rakesh Khurana and Joel Podolny

    Describes the start-up, growth, organizational design, and operations over the first 10 years of a professional services firm. Focuses on the creative use of organizational purpose and values as an integral part of strategy and alignment of organizational activities.

    Keywords: Business Growth and Maturation; Operations; Knowledge Management; Strategy; Service Industry;

    Citation:

    Khurana, Rakesh, and Joel Podolny. "Sapient Corporation." Harvard Business School Case 405-045, September 2004. (Revised October 2005.) View Details
  21. Messier's Reign at Vivendi Universal

    Rakesh Khurana, Vincent Dessain and Daniela Beyersdorfer

    Focuses on a crisis in the board at Vivendi. Highlights the difficulties that arise when dramatic pressure from outside the boardroom affects boardroom dynamics. In this case, there are two events. The first is an unexpectedly large financial loss and a pending cash flow crisis that forces Vivendi's directors to deal with the issue of dismissing their CEO. Whatever they decide, their actions will be scrutinized by the press and investors and will likely be revisited in a legal environment. The second is the board diagnosing its role in the financial crisis by approving a series of costly acquisitions in recent years that led to the crisis.

    Keywords: Corporate Governance; Crisis Management; History; Cash Flow; Acquisition; Performance; Telecommunications Industry; Media and Broadcasting Industry;

    Citation:

    Khurana, Rakesh, Vincent Dessain, and Daniela Beyersdorfer. "Messier's Reign at Vivendi Universal." Harvard Business School Case 405-063, November 2004. (Revised July 2005.) View Details
  22. Harvard Business School and the Making of a New Profession

    Rakesh Khurana, Tarun Khanna and Daniel Penrice

    Since its founding in 1908, Harvard Business School's mission has been to perform a much-needed service for American society by turning business management into a profession. One of the most important factors in the founding of HBS and the nation's other new business schools was the demand for managers created by the rise of the modern business corporation in the late 19th and early 20th centuries. Additionally, in the years just after the turn of the century business careers were becoming increasingly attractive to young men who would have previously entered one of the older, more traditional professions: law, medicine, education, and the ministry. The process of formulating "business principles" that would put the study of management on a scientific basis was a crucial part of what the founders had set out to achieve in creating the HBS curriculum and building a faculty. By discovering business principles, HBS would also help lay the foundation of the new profession of business. The HBS founders also believed there was another dimension to professionalism in business--one that involved not just the expertise that students acquired but also the attitudes they held and their contribution to society.

    Keywords: Business Education; Mission and Purpose; Alignment; Social Issues; Practice;

    Citation:

    Khurana, Rakesh, Tarun Khanna, and Daniel Penrice. "Harvard Business School and the Making of a New Profession." Harvard Business School Case 406-025, July 2005. View Details
  23. Hewlett-Packard: Culture in Changing Times

    Michael Beer, Rakesh Khurana and James Weber

    HP had been a highly successful and respected company for decades. It was well known for its company culture and management practices--the HP way--which emphasized both profits and people. Changing markets, strong competitors, and the growth of its computer business, however, battered the company in the mid-1990s. To turn things around, HP hired Carly Fiorina, the first outsider to lead the company. Describes Fiorina's strategy and the impact of decisions she made with respect to the acquisition of Compaq and HR policies on HP's venerable culture and performance.

    Keywords: Acquisition; Decision Choices and Conditions; Human Resources; Leading Change; Managerial Roles; Organizational Change and Adaptation; Organizational Culture; Performance Effectiveness; Adoption; Competition;

    Citation:

    Beer, Michael, Rakesh Khurana, and James Weber. "Hewlett-Packard: Culture in Changing Times." Harvard Business School Case 404-087, February 2004. (Revised January 2005.) View Details
  24. Globalization of HBS, The

    Tarun Khanna, Rakesh Khurana and David Lane

    Sets the stage for a discussion on the globalization of the MBA degree and variations on the idea that Harvard Business School (HBS) can play a role in shaping business education around the world. Describes the forces leading to greater convergence around the MBA degree as an important indicator of managerial competence and HBS's response to these forces. Provides background information on the globalization of the MBA degree, a history of the founding of the school, a history of various HBS international initiatives over the past 75 years, and the current challenges perceived by HBS administration in responding effectively to the forces of globalization.

    Keywords: Business Education; Globalization; Education Industry; Boston;

    Citation:

    Khanna, Tarun, Rakesh Khurana, and David Lane. "Globalization of HBS, The." Harvard Business School Case 703-432, November 2002. (Revised August 2004.) View Details
  25. Board of Directors at The Coca-Cola Company, The

    Jay W. Lorsch, Rakesh Khurana and Sonya Sanchez

    Provides a history of the board of directors of the Coca-Cola Co. through 2003. Describes the evolution in the board's membership, practices, and structure and the role it played in the company's governance. Questions are raised about the relationship between the board and top management, especially how the board is carrying out its responsibilities in the 21st century.

    Keywords: Governing and Advisory Boards; Corporate Governance; Food and Beverage Industry;

    Citation:

    Lorsch, Jay W., Rakesh Khurana, and Sonya Sanchez. "Board of Directors at The Coca-Cola Company, The." Harvard Business School Case 404-039, August 2003. (Revised January 2004.) View Details
  26. Al Dunlap at Sunbeam

    Brian J. Hall, Rakesh Khurana and Carleen Madigan

    Al Dunlap was one of the best-known corporate turnaround artists of the 1990s. In 1996, he was hired at Sunbeam to effect a restructuring, but was fired almost two years later when the company's financial performance and stock price began to decline. Many of the controversies that had surrounded him at his previous job, Scott Paper, followed him to Sunbeam: his rejection of the multiple stakeholder view of corporate governance, his aggressive managerial style, his shaky relations with the media, and his high level of pay. The case describes Dunlap's compensation package at Sunbeam and addresses the issue of how U.S. companies compensate "superstar" CEO's.

    Keywords: Business and Shareholder Relations; Business and Stakeholder Relations; Restructuring; Stock Shares; Performance Evaluation; Leadership Style; Resignation and Termination; Motivation and Incentives; Executive Compensation; Outcome or Result; Consumer Products Industry; United States;

    Citation:

    Hall, Brian J., Rakesh Khurana, and Carleen Madigan. "Al Dunlap at Sunbeam." Harvard Business School Case 899-218, April 1999. (Revised December 2003.) View Details
  27. Taking Charge at Dogus Holding (A)

    Rakesh Khurana, Gina Carioggia and Simon Johnson

    Describes 37-year-old Ferit Sahenk's challenges in taking over his father's traditionally managed $14 billion Turkish conglomerate in a period of economic instability. Leading the large holding company into the 21st century will require the establishment of a more institutionalized structure as opposed to the highly personal style of Ferit's father as he grew the company over the past 50 years. Addresses issues of how to establish credibility as the company's new leader, how to motivate his board members to participate more in the company decisions, how to manage in a period of increasing international competition and Turkey's political and financial instability, and the complexities of succession in family-owned businesses.

    Keywords: Business Conglomerates; Trade; Competitive Strategy; Decision Making; Leadership; Performance Effectiveness; Organizational Change and Adaptation; Family Business; Change Management; Turkey;

    Citation:

    Khurana, Rakesh, Gina Carioggia, and Simon Johnson. "Taking Charge at Dogus Holding (A)." Harvard Business School Case 402-009, November 2001. (Revised April 2002.) View Details
  28. Russell Reynolds Associates, 1999

    Tarun Khanna, Krishna G. Palepu and Rakesh Khurana

    The president and CEO of Russell Reynolds examined the company's expansion strategy, especially in emerging markets. He evalulates how quickly the company should open new offices abroad and in which countries.

    Keywords: Global Strategy; Growth and Development Strategy; Emerging Markets; Expansion; Consulting Industry;

    Citation:

    Khanna, Tarun, Krishna G. Palepu, and Rakesh Khurana. "Russell Reynolds Associates, 1999." Harvard Business School Case 100-039, November 1999. (Revised March 2001.) View Details
  29. Executing Change: Seven Key Considerations

    Nitin Nohria and Rakesh Khurana

    Provides a 7S framework to complement the McKinsey 7S framework. Focuses on some of the critical choices that must be made in implementing change--Strategic Intent, Substance, Scale, Scope, Speed, Sequence, and Style. Overall, the note argues that these choices must be made so that they are coherent and robust.

    Keywords: Change; Framework; Goals and Objectives; Management Style; Time Management; Strategy;

    Citation:

    Nohria, Nitin, and Rakesh Khurana. "Executing Change: Seven Key Considerations." Harvard Business School Background Note 494-038, August 1993. View Details
  30. Executing Change: Three Generic Strategies

    Nitin Nohria and Rakesh Khurana

    Describes the strengths and weaknesses of three generic strategies for implementing change--programmatic change, discontinuous change, and emergent change.

    Keywords: Change; Strategy;

    Citation:

    Nohria, Nitin, and Rakesh Khurana. "Executing Change: Three Generic Strategies." Harvard Business School Background Note 494-039, August 1993. View Details

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