Stanley O'Neal at Merrill Lynch (A)

David A. Thomas; Ayesha  Kanji

Case | HBS Case Collection | August 2004 (Revised September 2005)

Stanley O'Neal at Merrill Lynch (A)

Abstract

In the late 1970s, Stanley O'Neal joined Merrill Lynch as an investment banker. Profiles O'Neal's ascent at Merrill to CEO. O'Neal put Merrill through a comprehensive restructuring program, cutting costs and significantly reducing the work force. As CEO, O'Neal faces the challenge of changing the company's signature "Mother Merrill" culture into a performance-driven and meritocratic one, while facing resistance and criticism from inside Merrill and Wall Street. Provides data on Merrill's financial performance and investment banking ratings. Teaching Purpose: To demonstrate leadership at the executive level, highlighting the career development of a person of color. Also, to focus on changing corporate culture and CEO succession.

Keywords: Restructuring; Race; Cost Management; Investment Banking; Job Cuts and Outsourcing; Leadership; Management Succession; Performance Effectiveness; Personal Development and Career;

Format: Print

20 pages

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Citation:

Thomas, David A., and Ayesha Kanji. "Stanley O'Neal at Merrill Lynch (A)." Harvard Business School Case 405-029, August 2004. (Revised September 2005.)

Race, Work, and Leadership is a rare and important compilation of essays that examines how race matters in people’s experience of work and leadership. What does it mean to be black in corporate America today? How are racial dynamics in organizations changing? How do we build inclusive organizations? Inspired by and developed in conjunction with the research and programming for Harvard Business School’s celebration of the 50th anniversary of the founding of the HBS African American Student Union, this groundbreaking book shines new light on these and other timely questions and illuminates the present-day dynamics of race in the workplace. Contributions from top scholars, researchers, and practitioners in leadership, organizational behavior, psychology, sociology, and education test the relevance of long-held assumptions and reconsider the research approaches and interventions needed to understand and advance African Americans in work settings and leadership roles. At a time when there are fewer African American men and women in corporate leadership roles, Race, Work, and Leadership will stimulate new scholarship and dialogue on the organizational and leadership challenges of African Americans and become the indispensable reference for anyone committed to understanding, studying, and acting on the challenges facing leaders who are building inclusive organizations.

Any list of top CEOs reveals a stunning lack of diversity. Among the leaders of Fortune 500 companies, for example, just 32 are women, three are African-American, and not one is an African-American woman. What’s going on? The authors studied the careers of the roughly 2,300 alumni of African descent who have graduated from Harvard Business School since its founding, focusing on the 67 African-American women who have attained top positions in corporations or professional services firms. These women thrived, they found, because of three characteristics that are key to resilience: emotional intelligence, authenticity, and agility. The women were adept at reading interpersonal dynamics and managing their own reactions; crafting their identities; and transforming obstacles into opportunities. Beyond personal strengths, the authors say, another factor was critical: nurturing relationships with mentors who recognized the women’s talent and made it their business to support them. The insights gleaned are important not just for African-Americans and women; they’re essential for any manager who recognizes that an organization’s diversity is its strength.

Case | HBS Case Collection | September 2011 (Revised October 2012)

Ganging Up on Cancer: Integrative Research Centers at the Dana-Farber Cancer Institute (A)

Heidi K. Gardner, Edo Bedzra and Shereef M. Elnahal

Dr. Barrett Rollins, Chief Scientific Officer of the Dana Farber Cancer Institute, attempts to engender cross-scientist collaboration by applying project management principles to medical research. The resulting innovation, Integrative Research Centers, are novel in this field and present a substantial challenge to the Institute's culture, which had previously allowed faculty scientists complete autonomy over their research. Center leaders are required to develop a business plan, adhere to agreed-upon performance metrics, and undergo regular progress reviews conducted by a peer-led oversight committee. The Center for Nanotechnology in Cancer, a new but crucial center in the program, has failed to meet almost all of its objectives in the first year. Furthermore, a heated dispute between two faculty members in the center has complicated matters significantly. Rollins is flummoxed by these problems because he thought he had provided resources and clear objectives to all of the centers. He must urgently diagnose the main reason(s) for the center's shortcomings and develop a plan of action so that this center's problems do not undermine the whole initiative toward greater scientific collaboration.

Keywords: Problems and Challenges; Organizational Change and Adaptation; Change Management; Motivation and Incentives; Employees; Performance Evaluation; Leadership Style; Leadership; Collaborative Innovation and Invention; Innovation and Management;