Publications
Publications
- February 1991
- HBS Case Collection
Burlington Northern: The ARES Decision (B)
By: Julie H. Hertenstein and Robert S. Kaplan
Abstract
The ARES team formally proposes that Burlington Northern implement the ARES system. The project meets resistance. In light of financial restructuring and high level of debt, executives wonder whether the company can afford ARES. Weak links during the ARES development process to corporate strategic planning, corporate capital planning, and other corporate functions raise concerns. Executives also worry about whether their 100-year-old, traditional organization can adapt to and exploit ARES's modern electronic technology. When ARES team members' zealous advocacy of the project raise concerns about objectivity in evaluation, an outside consultant is hired to audit benefits, technologies, and whether benefits can be unbundled and implemented selectively.
Keywords
Accounting Audits; Restructuring; Cost vs Benefits; Decision Choices and Conditions; Borrowing and Debt; Capital Budgeting; Projects; Technology Adoption; Service Industry
Citation
Hertenstein, Julie H., and Robert S. Kaplan. "Burlington Northern: The ARES Decision (B)." Harvard Business School Case 191-123, February 1991.