Ashish Nanda is Senior Lecturer at Harvard Business School.
From 2013 to 2017, he was Director of Indian Institute of Management, Ahmedabad. Before joining IIMA, he was Robert Braucher Professor of Practice at Harvard Law School for seven years. Before that, he was a Harvard Business School faculty member for 13 years.
Nanda was Fellow, Harvard Business School Executive Education from 2013 to 2017 and Officiating Director, IIM Nagpur from its inception in 2015 to 2017. He is Distinguished Fellow, Harvard Law School Executive Education.
Professor Nanda stepped aside as Director, IIMA in September 2017 and in October 2017 joined the Strategy Unit of Harvard Business School.
Nanda’s research, teaching, and advisory work focus on leadership, particularly in the context of professional services and institutions of higher education. He has published case studies and articles on professional services in three primary streams – management of professional service organizations, professionals’ labor markets, and professionalism. During his stint as Director, IIMA, Nanda has written on, and participated in conferences and task forces related to, administration of higher education institutions, particularly Indian professional schools.
Nanda was born in New Delhi. He is married to Shubha Nanda, faculty at Tufts Dental School, Boston. The couple has a son, Pranav Nanda who is studying Medicine at College of Physicians & Surgeons, Columbia University, New York.
Our paper contributes to the studies on the relationship between workers' human capital and their decision to become self-employed as well as their probability to survive as entrepreneurs. Analysis from a panel data set of research analysts in investment banks over 1988-1996 reveals that star analysts are more likely than non-star analysts to become entrepreneurs. Furthermore, we find that ventures started by star analysts have a higher probability of survival than ventures established by non-star analysts. Extending traditional theories of entrepreneurship and labor mobility, our results also suggest that drivers of turnover vary by destination: (a) turnover to entrepreneurship and (b) other turnover. In contrast to turnover to entrepreneurship, star analysts are less likely to move to other firms than non-star analysts.
This paper examines the portability of star security analysts' performance. Star analysts who switched employers experienced an immediate decline in performance that persisted for at least five years. This decline was most pronounced among star analysts who moved to firms with lesser capabilities and those who moved solo, without other team members. Star analysts who moved between two firms with equivalent capabilities also exhibited a drop in performance, but only for two years. Those who switched to firms with better capabilities and those who moved with other team members exhibited no significant decline in short-term or long-term performance. These findings suggest that firm-specific skills and firms' capabilities both play important roles in star analysts' performance. In addition, we find that firms that hire star analysts from competitors with better capabilities suffered more extreme negative stock-market reactions than those that hire from comparable or lesser firms. These findings suggest that hiring stars may be perceived as value destroying and may not improve a firm's competitive advantage.
With the battle for the best and brightest people heating up again, you're most likely out there looking for first-rate talent in the ranks of your competitors. Chances are, you're sold on the idea of recruiting from outside your organization, since developing people within the firm takes time and money. But the authors, who have tracked the careers of high-flying CEOs, researchers, software developers, and leading professionals, argue that top performers quickly fade after leaving one company for another. To study this phenomenon in greater detail, the authors analyzed the ups and downs of more than 1,000 star stock analysts, a well-defined group for which there are abundant data. The results were striking. After a star moves, not only does her performance plunge, but so does the effectiveness of the group she joins--and the market value of her new company. Moreover, transplanted stars don't stay with their new organizations for long, despite the astronomical salaries firms pay to lure them from rivals. Most companies that hire stars overlook the fact that an executive's performance is not entirely transferable because his personal competencies inevitably include company-specific skills. When the star leaves the old company for the new, he cannot take with him many of the resources that contributed to his achievements. As a result, he is unable to repeat his performance in another company--at least not until he learns to work the new system, which could take years. The authors conclude that companies cannot gain a competitive advantage or successfully grow by hiring stars from outside. Instead, they should focus on cultivating talent from within and do everything possible to retain the stars they create. Firms shouldn't fight the star wars, because winning could be the worst thing that happens to them.
For years, Wachtell, Lipton, Rosen & Katz – a small, New York City law firm – has consistently boasted the highest profits per partner and one of the highest “prestige” ratings among U.S.-based law firms. The firm has remained loyal to a distinctive strategy ever since its founding in 1965. Whereas most law firms have multiple offices, seek long-term retainer relationships with clients, operate across multiple services, and bill by the hour, Wachtell Lipton operates from a single location, offers legal services on a matter-by-matter basis, focuses on transactional work (primarily M&A advisory), and value bills for its services. Despite its extraordinary success, as the legal services market evolves and the firm’s name partners, 87-year-old Herbert Wachtell and 88-year-old Marty Lipton, approach retirement, questions arise about whether Wachtell Lipton’s magic formula will continue to yield extraordinary results in coming years.
Elite Chinese law firm Fangda Partners has steered Alibaba and other Chinese and international clients through the complex legal, corporate, and regulatory challenges associated with executing international transactions. “Fangda has traveled a long distance in a short while,” reflects senior partner Jonathan Zhou, “but we have a long distance to traverse further. We have lofty aspirations.” Fangda Partners seeks to build on its growth and strong reputation to establish itself as a major, high-end law firm in the Chinese market. What needs to be accomplished and how should Zhou proceed?
Ashish Nanda, Eric Van den Steen, Andy Wu, Jeffrey Boyar and Bonnie Bennett Slater
Established in 2007, SoundCloud already boasted the second largest number of active music listeners among all streaming services and was recognized as the go-to platform for new artists by early 2014. Yet, its founders were questioning the robustness of the firm’s current focus on serving as a lab for emerging musical artists. They were wondering if the firm should instead enter the booming mainstream music streaming market.
Nanda, Ashish, Eric Van den Steen, Andy Wu, Jeffrey Boyar, and Bonnie Bennett Slater. "SoundCloud: Subscription Streaming?" Harvard Business School Case 719-430, January 2019. (Revised February 2020.)
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This note introduces the first module of the RC Strategy course, What Is Strategy? It helps students develop their perspective on what is a strategy, what is a good strategy, and how strategy development differs across contexts.
This note offers an overview of the Strategy course offered in HBS’s Required Curriculum. The RC Strategy course aims to help students become effective strategists. The note introduces the six modules of the course: What is Strategy, Market Attractiveness, Competitive Advantage, Strategic Interactions, Corporate Strategy, and Crafting Strategy.
The case outlines how regional managing partner (RMP) Albert Ng steered Ernst & Young (EY) China through a period of significant growth from 2009, when it was the smallest of the Big Four firms in China, to 2017, by when it had become the second largest firm. Partners worldwide felt a sense of shared achievement, since EY Global had come together with China leadership to invest in building a strong China practice that was integral to all of EY.
But Ng was not resting content. He believed that EY China was at a critical juncture. Chinese economic growth, which had partially fueled EY China’s dramatic rise, was slowing down, just as competition was intensifying. Was EY China prepared to face the challenges that lay ahead?
Soon after being named regional managing partner for Ernst & Yong (EY) China in September 2009, Albert Ng reflects on the enormity of challenges facing EY China. Despite EY Global's commitment to the China practice, EY China’s growth agenda has been reversed, post global financial crisis. The smallest of the Big Four global accounting firms in China, EY China’s reputation has weakened in the market, morale of its professionals has plummeted, and it faces the threat of a major lawsuit. Ng is musing how to address all these challenges confronting EY China.
Ashish Nanda, Eric Van den Steen and Jeffrey Boyar
Julie Rice and Elizabeth Cutler founded SoulCycle, an indoor cycling studio chain, in 2006 as more than a health club; they wanted it to become a lifestyle brand that would “empower riders in an immersive fitness experience.” By early 2015, SoulCycle had grown to 38 studios in seven metropolitan areas. In March 2015, Equinox, a luxury fitness company that had financed SoulCycle’s expansion in 2011, approached the co-founders with an offer to buy them out for $90 million each. It was an attractive offer but one that would also likely circumscribe their responsibilities. Rice and Cutler had to decide whether to accept the Equinox offer as a prelude to smaller roles at the firm (even potential exit) or continue investing time, energy, and financial resources in growing the business.
Nanda, Ashish, Eric Van den Steen, and Jeffrey Boyar. "SoulCycle: The Road Ahead." Harvard Business School Case 718-499, February 2018. (Revised January 2020.)
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Jiang Yong founded Tiantong & Partners in 2002, seeking to radically improve the level of litigation-related services in China. By 2015, Tiantong was the premier Chinese litigation firm with the highest per lawyer revenues. The firm focused exclusively on high-stakes litigation, particularly Supreme Court appeals, and enjoyed a 90 percent win rate. Building off its success, Tiantong also began offering Internet apps. Yong was betting that the tiny 23-lawyer firm would transform litigation in China. In 2014, Tiantong developed an application called Tiantong Litigation Circle on the WeChat platform with the goal of connecting lawyers across the legal profession. Within the first year, the program recorded 150,000 followers, one million shares, and 10 million page visits. The firm figured that more than half of all practicing lawyers in China were followers. By the end of the year, Tiantong had also released the first professional reading app for lawyers. In May 2015, Tiantong released an Internet tool to support case research, accessible to anyone who needed to find precedents.
The firm faced significant opportunities in both businesses. Yong needed to decide whether to continue making efforts in both directions or whether to prioritize one over the other.
Confronted by a business proposal that is remarkably similar to a project recently financed by a sister office, venture capitalist Monique LeMieux ponders what she should do.
Discusses potential conflicts of interest that venture capitalists face in dealing with entrepreneurs. Critiques arguments that such conflicts are easily managed and unproblematic. Suggests four ways to address potential conflicts.
We encounter in all aspects of our daily lives groups of individuals who identify themselves as professionals. Many of us aspire to be professionals in our vocation and conduct. But what are the aspects of being a professional? The following anthology of book excerpts addresses this question.
Discusses the role of professionals in the Enron debacle. Argues that professionals failed to prevent or predict Enron's collapse because of the conflicts of interest they faced. Concludes with observations on management and regulation of conflicts of interest facing professionals.
This case highlights the debate between the Securities and Exchange Commission (SEC) and several of the large accounting firms over whether the same firms should offer consulting services to clients they audit.
This case tracks the evolution from October 2000 to July 2001 of public debate, regulatory decisions, and firm perspectives on the subject of consulting by accounting firms.
This case presents a thinly disguised account of Andersen's collapse, followed by a tightening of the oversight of audit firms. It raises questions on who lost and who gained, as well as the long-term implications of the changes for the accounting profession and society. It is distributed toward the end of class discussion on consulting by auditors.
This case describes how the Boston archdiocese of the Roman Catholic Church handled allegations of clergy sexual abuse during the 1990s. In 2002, the archdiocese was confronted by public revelations of how the allegations were handled. Professional organizations first and foremost must protect the interests of those whom the profession serves. Professional organizations, however, also protect and further the interests of their members. The case also describes the Boston archdiocese's initial response to the storm of public criticism that followed the revelations.
In 2002, the Boston archdiocese of the Roman Catholic Church was confronted by public revelations of how allegations of clergy sexual abuse were handled by the archdiocese during the 1990s. This case describes how the Boston archdiocese addressed the issue over the next two years. It also describes the reverberations of the scandal nationwide, theories on the root causes of the problem, and emerging sentiment in church hierarchy and the laity. Professional organizations first and foremost must protect the interests of those whom the profession serves. Professional organizations, however, also protect and further the interests of their members.
This case explores how the public reputation of a profession evolves as its membership changes. The public reputation of a professional relies on its association's credibility for ensuring, through rigorous certification and self-regulation, that its members place client interests foremost. It demonstrates that if associations deviate from this objective and focus instead on the well-being of their members, the public goodwill of the profession suffers.
This case comments on the responsibility of professional organizations to respond openly to public accusations of wrongdoing by its members. It briefly relates the circumstances of the sexual abuse scandal in the Boston archdiocese of the Roman Catholic Church and the American Institute of Certified Public Accountants' handling of concerns about auditor independence. The case suggests that professional associations can learn from these unsuccessful attempts to suppress public concerns about practitioners.
This case describes the two types of client conflict--conflict of duty and conflict of service--that professionals manage. It delineates how the management of these conflicts affects the scale and scope of service that professionals provide.
This case discusses why society grants professional associations the rights of certification and self-regulation. In exercising these rights, professional associations serve client interests but also the interest of member practitioners. The case discusses how associations that place practitioner interest over client interest risk the separation of their profession. It concludes with a discussion of the relationship between professional associations and professional service firms.
Sherif Mityas, recently promoted as project manager at A.T. Kearney, faced a client service challenge in his very first project experience. Mityas had been working closely for six weeks with the management team of the U.S. subsidiary of a Japan-headquartered consumer products company to identify ways to turn around the U.S. operations. Following the midproject status meeting, executives from the Japanese parent company made an unexpected request that placed Mityas in a quandary. Mityas related the situation: "At the conclusion of the midproject meeting, I felt confident that we had made solid recommendations about turning around the U.S. operations, but the Japanese parent company executives made a difficult request. They wanted us to evaluate the ability of the U.S. management team to carry out the turnaround. U.S. management had been instrumental in our being able to understand and analyze the situation comprehensively, and we would need their cooperation for our future work to be meaningful. If they came to know that we were simultaneously evaluating them, we could lose their trust--but, then, the Japanese executives represented the client. I didn't know how to proceed."
Describes the evolution of the American Medical Association from its origin in 1847 to 1997, when two-thirds of physicians chose not to join the association.
Facing dwindling membership and looking to increase its revenue, the American Medical Association (AMA) signed an endorsement deal with Sunbeam Corp., a leader in the small home appliance industry, in August 1997. In the deal, the AMA would receive significant royalties from Sunbeam in exchange for the use of its seal on Sunbeam's home health-care products. Critics protested that this deal posed a conflict of interest before the AMA. Supporters argued, however, that the deal was a good way for the AMA to ease the association's financial troubles. Furthermore, the deal would be beneficial to patients because it encouraged people to monitor their own health.
On September 5, 1997, the American Medical Association(AMA) withdrew from a contract with Sunbeam Corporation, the maker of small home appliances. Sunbeam sued the AMA to pay for the damages or to comply with the contract. The fracas led to the dismissal of three top AMA executives. The AMA initiated an investigation into the episode. As a result of the failed deal, the AMA's CEO resigned, and the failed deal eventually cost the AMA an estimated $16 million. A rewritten version of an earlier case.
It is argued that professionals pledge fiduciary responsibility towards their clients to minimize the occurrence of conflicts of interest, which are socially inefficient. Professional associations are formed to ensure that in their practices, professionals live by their professional pledges.
Accounting and law firms around the globe are following with great interest the progress through British courts of a lawsuit. Those familiar with the suit, filed by Prince Jefri of Brunei against the professional service firm KPMG Peat Marwick, remark that its judgment will be "a landmark ruling with profound implications." At stake is nothing less than how professional service firms conduct their business. The case highlights: (1) the emerging tension between how accounting firms and law firms view their responsibility to clients and (2) the use and limitations of "Chinese walls" in managing potential conflicts within firms.
Ten years into his career after graduating from HBS, Tim Hertach discovers billing irregularities at his consulting firm. He must decide whether (and how) to challenge senior management or to stay quiet and protect his career.
Nanda, Ashish, Thomas J. DeLong, and Stephanie L. Woerner. "Tim Hertach at GL Consulting Series TN." Harvard Business School Teaching Note 801-029, September 2000.
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Many occupations lay claim to professional status. Business executives, social workers, musicians, sportsmen, and academics describe their occupations as "professions". Office assistants call themselves "administrative professionals". Obviously, not all occupations that claim to be professions are so recognized by society. Society attaches the professional label only to certain occupations. Doctors and lawyers are professionals; auto mechanics and restaurant wait staff are not. Yet, gray areas exist. Are nurses professionals? Teachers? Real estate brokers? This case identifies the distinguishing characteristics of professional work. Professionals are a subcategory of service providers. An understanding of what distinguishes professionals from other service providers must be grounded in an understanding of 1.) what constitutes service provisions and 2.) how the various categories of service provision differ.
For years, Wachtell, Lipton, Rosen & Katz – a small, New York City law firm – has consistently boasted the highest profits per partner and one of the highest “prestige” ratings among U.S.-based law firms. The firm has remained loyal to a distinctive strategy ever since its founding in 1965. Whereas most law firms have multiple offices, seek long-term retainer relationships with clients, operate across multiple services, and bill by the hour, Wachtell Lipton operates from a single location, offers legal services on a matter-by-matter basis, focuses on transactional work (primarily M&A advisory), and value bills for its services. Despite its extraordinary success, as the legal services market evolves and the firm’s name partners, 87-year-old Herbert Wachtell and 88-year-old Marty Lipton, approach retirement, questions arise about whether Wachtell Lipton’s magic formula will continue to yield extraordinary results in coming years.
Elite Chinese law firm Fangda Partners has steered Alibaba and other Chinese and international clients through the complex legal, corporate, and regulatory challenges associated with executing international transactions. “Fangda has traveled a long distance in a short while,” reflects senior partner Jonathan Zhou, “but we have a long distance to traverse further. We have lofty aspirations.” Fangda Partners seeks to build on its growth and strong reputation to establish itself as a major, high-end law firm in the Chinese market. What needs to be accomplished and how should Zhou proceed?
The case outlines how regional managing partner (RMP) Albert Ng steered Ernst & Young (EY) China through a period of significant growth from 2009, when it was the smallest of the Big Four firms in China, to 2017, by when it had become the second largest firm. Partners worldwide felt a sense of shared achievement, since EY Global had come together with China leadership to invest in building a strong China practice that was integral to all of EY.
But Ng was not resting content. He believed that EY China was at a critical juncture. Chinese economic growth, which had partially fueled EY China’s dramatic rise, was slowing down, just as competition was intensifying. Was EY China prepared to face the challenges that lay ahead?
Soon after being named regional managing partner for Ernst & Yong (EY) China in September 2009, Albert Ng reflects on the enormity of challenges facing EY China. Despite EY Global's commitment to the China practice, EY China’s growth agenda has been reversed, post global financial crisis. The smallest of the Big Four global accounting firms in China, EY China’s reputation has weakened in the market, morale of its professionals has plummeted, and it faces the threat of a major lawsuit. Ng is musing how to address all these challenges confronting EY China.
This case provides a career retrospective as of 2003 on Goldman Sachs strategist Abby Joseph Cohen. It reviews Cohen's career path and progress through key decision points.
Having recently launched one of Silicon Valley's first start-ups, cofounders Chan Suh and Kyle Shannon ponder whether their interactive consulting firm is prepared to bid for work from a very large client.
AGENCY.COM continues on its path of rapid growth, emerging as a leading interactive consulting firm. Its growth leads to new challenges related to the integration of diverse operations and the financing of future growth.
Nanda, Ashish, and Thomas J. DeLong. "AGENCY.COM (A) and (B) TN." Harvard Business School Teaching Note 801-014, September 2000. (Revised August 2011.)
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Nanda, Ashish, Thomas J. DeLong, Thomas E. Agan, and Scot H. Landry. "e-Consulting." Harvard Business School Background Note 800-312, April 2000.
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Vernon Ellis, managing partner of Andersen Consulting -- Europe, Middle East, Africa, and India (AC -- EMEAI), is considering how best to reorganize. AC -- EMEAI has grown rapidly over the past five years to become Europe's largest consulting operation. However, Ellis feels that the organization needs to be reconfigured if it has to continue on its trajectory of rapid growth. Each of the various alternatives that he is considering offers intriguing potential benefits but also carries considerable risks.
Remarks by William (Bill) Barnard, partner-in-charge for Strategic Services in the subregion of Western Europe, in a conversation he had with Professors Ashish Nanda and Michael Yoshino of the Harvard Business School on November 1, 1995.
Supplements Andersen Consulting - EMEAI: Reorganization for Revitalization. An alternative to video Organizational Change at Anderson Consulting - EMEAI, Video.
In June 1998, Bain's compensation and policy committee meets to review candidates for elevation to partnership. The case presents the profiles of four candidates and ends with the promotion committee debating the merits of the candidates.
Phyllis Yale, chairman of Bain's Compensation and Promotion Committee (CPC), discusses how the CPC decided on four promotion cases. She reflects on the impact of the promotion decision-making process on the firm.
"If you try to use money to motivate behavior, you are in a powerful and dangerous place, especially with engineers and scientists," remarked Tom Furman, CEO of Camp Dresser & McKee, Inc. (CDM), a consulting environmental engineering firm. Historically, CDM had followed an "egalitarian" management bonus program based on qualitative measures. As industry growth decelerated and competition intensified since 1991, management changed the incentive plan to tie it closer to the achievement of business objectives. This case describes the bonus and incentive compensation system and the evaluation process. It ends with Furman reflecting on how to interpret the CDM system to reward four CDM executives suitably.
French IT consulting giant Cap Gemini is poised to purchase the consulting arm of Ernst & Young, a U.S.-based Big 5 accounting firm. In doing so, many differences need to be resolved, including negotiating with Ernst & Young entities all over the world as well as converting Ernst & Young partners into employees of publicly held Cap Gemini. Amidst all of the decisions, the market for IT consulting services is changing rapidly, further complicating the merger negotiations and implementation. Teaching Purpose: To study the range of issues that must be considered and resolved in negotiating a professional services firm merger, the valuation and motivational challenges associated with merging a private entity into a public entity, and the challenges of negotiating a cross-border merger.
The negotiations for the merger between Cap Gemini and Ernst & Young conclude, resolving issues of how to bring together Ernst & Young consulting partnerships from all over the world into the publicly held Cap Gemini. Reactions to the merger were optimistic within Cap Gemini and Ernst & Young, but analysts voiced concerns about a cultural clash between the two firms and the viability of the new firm's strategy.
This case highlights the tradeoff between valuation ascribed to professionals at the time of a professional services firm (PSF) acquisition and the postacquisition compensation of these professionals. It emphasizes how a high valuation at acquisition carries with it the requirement to lower professionals' compensation postacquisition.
Discusses the compensation of professionals--partners and nonpartners--in a professional services firm. Discusses the considerations that determine the choice of compensation systems and the interrelationship between compensation and other human resources management systems in professional services firms.
This case provides a brief history of Boston Consulting Group (BCG) and the firm's approach to development and mentorship of its consultants. It also discusses the challenges facing three consultants who are nearing the two-year mark of working at BCG.
Addresses the importance of protecting against and managing employee defections. The (A) case, distributed in advance of the class, describes Ecolab's solid position in the institutional cleaning business. Faint rumblings of internal dissension at the end of the case are qualified by a five-minute video that emphasizes the loyalty and esprit-de-corps that pervade the company generally. The (B) case comes as a shock in the wake of the (A) case and video. Several of Ecolab's trusted senior executives have approached its principal competitor, Diversey, with a proposal to switch loyalties in return for monetary rewards. The (C) case shifts the perspective to Ecolab president Al Schuman, who is wondering how to react to the defections. Discussion of proposed action plans is followed by distributing the (D) case, which describes how Ecolab responded to the challenge. A two-minute video excerpt from Schuman's field visit highlights his personal response to the challenge. The (E) case recounts other instances of poaching by rival firms and defections by key employees, and the (F) case discusses the legal standing of noncompete agreements. A condensed version of earlier cases.
Traces the history and development of consulting within Andersen and the history of the schism between Arthur Andersen and Andersen Consulting. Ends with the two units seeking external arbitration of their dispute.
Arbitration proceedings have been initiated between Andersen Consulting and Arthur Andersen. The case details developments during 1999 and 2000, as the arbitration nears a decision.
Creating and sustaining a third-world-based technology company to compete globally (i.e. in the first-world) poses many challenges. Such challenges are examined through the genesis and progression of Infosys Technologies Ltd. Key decisions made by Chairman N.R. Narayana Murthy are particularly highlighted.
Nanda, Ashish, Thomas J. DeLong, and Ying Liu. "Infosys Technologies, Limited TN." Harvard Business School Teaching Note 902-057, September 2001.
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Describes the work environment, systems, and processes that allow International Profit Associates (IPA) to follow a systematic four-step approach to providing advisory service to small business owners.
Nanda, Ashish, Thomas J. DeLong, and Ying Liu. "International Profit Associates TN." Harvard Business School Teaching Note 902-059, September 2001.
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Ashish Nanda, Thomas J. DeLong and Sarah S. Khetani
Jill Greenthal, managing director at Donaldson, Lufkin & Jenrette, is leading her team of investment bankers to negotiate on behalf of Tele-Communications, Inc. (TCI) on a potential landmark deal with AT&T. Representing TCI in the negotiations is the culmination of relationships that Greenthal has nurtured over the course of a decade. Despite the best efforts of her team, negotiations appear poised on the edge of an impasse. Greenthal wonders what, if anything, her team can do to help find a better alternative.
Ashish Nanda, Thomas J. DeLong and Sarah S. Khetani
Documents the hectic and grueling work done by Jill Greenthal's team at Donaldson, Lufkin & Jenrette in an attempt to execute a landmark deal on behalf of a key client.
Public professional service organizations (PPSOs) are professional service organizations that serve the public. This case describes the unique challenges facing PPSO leaders.
Under Jack Rivkin's leadership, Shearson Lehman's research department rose from relative obscurity to the highest ranking research department on Wall Street within three years. When Rivkin is promoted to head of equity, he wonders how to succeed in his new position. A rewritten version of an earlier case.
This case tracks the rapid decline of Lehman Brothers' equity research department from August 1992, when, beset by declining ranking, low morale, and high turnover, firm management decides to clean house and reinvest in building the department.
The German country managing partner of a global law firm must decide how to respond to a corporate mandate to restructure its client portfolio. The case enables a discussion of different types of clients in a global professional service firm in terms of relative revenues, profitability, and strategic significance. It also highlights the tensions between local subsidiaries and corporate headquarters with respect to managing client portfolios.
This case tracks McKinsey's evolution from its origin in 1926 to 2002, emphasizing the institutional heritage of the firm. It closes with a description of the challenges facing the firm's leadership in 2002.
This case reviews the relative merits of partnership and public ownership structures in professional services firms. It also evaluates the various rationales for converting partnership professional services firms to publicly owned firms. Finally, the case highlights the leadership challenges associated with making conversions from partnership to public structure successful.
In this case, four consultants discuss business planning issues that they are each having within their respective consulting firms. The case addresses how professional compensation, project staffing, hours worked, overhead costs, and billing rates impact profitability.
This csae presents a simple model of the drivers of profitability in a professional service partnership and conducts an empirical exploration of the determinants of profitability among AmLaw 100 firms over the period 1994 to 1999.
Provides an overview of the HBS MBA Professional Services Course. Presents a structure and an outline intended to serve as a reference and provide orientation to students as the course progresses.
This initial module was meant to clarify how the course would be useful to students who would be starting PSFs, working for them as an employee or contractor, managing them, or hiring them from the client side.
It is imperative for the internal systems and processes to be connected to the external processes of client management, competitive adaptation, and service delivery.
Emphasizes the skills and values that we believe successful professionals possess: change management and leadership skills, a proactive career management approach, effective processes of giving and receiving feedback, a clear ethical perspective, balance between private and professional lives, and the ability to cope with ever increasing demands on one's time.
This case discusses why economies (and diseconomies) of scale and scope exist in professional service firms (PSFs) and how they influence the amount and range of services that PSFs offer. It is distributed with a case that focuses on determining the optimal scale/scope of a PSF.
This case discusses the problem of balancing demand and supply of professionals within a professional services firm (PSF). It emphasizes how human resources management policies impact supply conditions and how market opportunities determine demand conditions. The case identifies the levers that can be used to bring the demand and supply in balance.
The case describes the history of the executive search firm Egon Zehnder International (EZI) from its inception through 2000. Internal and environmental changes lead EZI leaders to question whether the firm might be at an inflection point in its history. The EZI executive committee contemplates whether and how to engage in a strategy review process.
This case provides a definition of strategy, distinguishes between corporate and practice strategy, and discusses how and why developing and implementing strategy for professional service firms is different from developing and implementing strategy for commercial firms. The case discusses how practice strategy involves positioning the practice on a spectrum of services and aligning the organization and its professionals to the position. Practices are subjected continuously to forces that move their positioning. To be successful, practices must dynamically reposition or realign themselves. The csae concludes with a discussion of the corporate strategy challenges facing multipractice professional service firms.
On September 19, 2002, Lukas Muhlemann announced that he would step down as chairman and CEO of the Credit Suisse Group, effective January 1, 2003. The bank had progressed from a small Swiss start-up 150 years ago to a global banking powerhouse. Over the past 5 years, it had grown rapidly in pursuit of Muhlemann's Allfinanz vision. However, 2002 had been a very difficult year. Its investment banking arm had been tarnished by scandal in a difficult business environment, the insurance arm had suffered considerable losses, and the stock price had dropped inexorably. Credit Suisse's new leadership was musing over the changes required to rejuvenate the group.
Nanda, Ashish, and Kelley Elizabeth Morrell. "The Credit Suisse Group." Harvard Business School Case 903-087, January 2003. (Revised February 2004.)
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Presents two situations: 1) two graduating MBAs from Harvard Business School compare and contrast their strategies for getting off to a good start in consulting, and 2) a junior consultant has to deal with difficult feedback in his very first performance review.
DeLong, Thomas J., and Ashish Nanda. "The First Six Months: Launching a PSF Career TN." Harvard Business School Teaching Note 801-138, September 2000.
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Ashish Nanda, Malcolm S. Salter, Boris Groysberg and Sarah Matthews
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.
Nanda, Ashish, Malcolm S. Salter, Boris Groysberg, and Sarah Matthews. "The Goldman Sachs IPO." Harvard Business School Case 800-016, September 1999. (Revised April 2006.)
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Harvard Business School's (HBS) California Research Center, a three-year experiment initiated in July 1997 to facilitate research, case-writing, and course development centered in the Silicon Valley Region, has been a "phenomenal success." In June 1999, HBS Dean Kim Clark and faculty are contemplating whether to modify or retain the current mission and scope of the California Research Center.
E-consulting began as a specialized consulting service in the late 1990s. In January 2000, more than 100 firms were characterized as e-consultants. By December 2001, more than 50% of these firms had disappeared. This case tracks the rapid rise and sharp decline of e-consulting.
Thomas J. DeLong, Ashish Nanda, Boris Groysberg, Matthew C. Lieb and Scott D Landry
Thomas Weisel, longtime leader of Montgomery Securities, realizes that the sale of Montgomery to NationsBank was the biggest mistake of his life. After his exit from NationsBanc Montgomery Securities, Weisel develops a business plan for a new merchant bank, Thomas Weisel Partners.
DeLong, Thomas J., Ashish Nanda, Boris Groysberg, Matthew C. Lieb, and Scott D Landry. "Thomas Weisel Partners (A)." Harvard Business School Case 800-215, March 2000. (Revised February 2005.)
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After its launch in February 1999, Thomas Weisel Partners experiences rapid growth in its first year. This case details the inaugural year's development and probes what steps the firm should take to continue the momentum.
DeLong, Thomas J., and Ashish Nanda. "Thomas Weisel Partners (A) and (B) TN." Harvard Business School Teaching Note 801-015, September 2000. (Revised October 2000.)
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Bain managing director Tom Tierney is contemplating how best to rotate the office head position between two partners at one of the firm's offices. The case provides background information on Bain's governance structure and Tierney's management style.
The case writers began taking notes on Thomas (Tom) Tierney's life experiences and the lessons that he has derived from them based on his presentations at several Harvard Business School MBA and executive education seminars during 2000 through 2002. This was followed by a series of interviews with Tierney. This case presents a compilation of Tom Tierney's reflections.
Nanda, Ashish, Kelley Elizabeth Morrell, and Monica Mullick. "Tom Tierney's Reflections." Harvard Business School Case 903-127, April 2003. (Revised November 2003.)
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Thomas J. DeLong, Ashish Nanda, Scot Landry and Scott M O'Neil
Balancing professional and private lives continues to challenge single and committed partners alike. Professionals are expected to work long hours. It is simply part of the ethos of professional service firms. This case focuses on the lives of three couples connected to professional service firms and their ensuing challenges in balancing professional and private life. A rewritten version of an earlier case.
Craig Johnson, Venture Law Group's (VLG) chairman, founded VLG in 1993 with a goal of "zero voluntary turnover." In late 1998, Johnson faces the departure of three important partners, prompting himself to ask what VLG can do in the midst of an "economic hurricane" that is luring VLG attorneys to leave and enter dot.com companies.
DeLong, Thomas J., Ashish Nanda, and Scott D Landry. "Venture Law Group (A)." Harvard Business School Case 800-065, February 2000. (Revised March 2004.)
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DeLong, Thomas J., Ashish Nanda, and Scot H. Landry. "Venture Law Group (B)." Harvard Business School Case 800-191, April 2000. (Revised February 2002.)
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Thomas J. DeLong, Ashish Nanda and Theodore D. Seides
Elizabeth Lilly, Richard Rinkett, and Richard Jensen are pondering whether to launch a new investment management firm and, if so, what growth strategy to chart for the potential firm.
DeLong, Thomas J., Ashish Nanda, and Stephanie L. Woerner. "Woodland Partners: Field of Dreams? TN." Harvard Business School Teaching Note 801-017, September 2000.
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&Samhoud, a small service management consulting firm in the Netherlands, grapples with the dilemma of firing its largest client while introducing Heskett's theory of the service profit chain.
Nanda, Ashish, Thomas J. DeLong, and Ying Liu. "&Samhoud Service Management TN." Harvard Business School Teaching Note 902-058, September 2001.
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DeLong, Thomas J., and Ashish Nanda. "Diamond in the Rough (A) and (B) TN." Harvard Business School Teaching Note 801-134, September 2000.
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Supplements the (A) case. Includes excerpts from speeches by Ecolab president Al Schuman, CEO Sandy Grieve, and three senior sales executives, and highlights the camaraderie and goodwill among senior executives of Ecolab's Institutional Division. May be used in place of the video.
Supplements the (A) case. In the weeks following the employee defections, Al Schuman toured Ecolab's offices extensively. The case excerpts from one of the speeches he made during his tour. May be used in place of the video.
DeLong, Thomas J., Ashish Nanda, and Stephanie L. Woerner. "Eggrock Partners, LLC (A) and (B) TN." Harvard Business School Teaching Note 801-016, September 2000.
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Nanda, Ashish, Thomas J. DeLong, Christina L. Darwall, and Scot H. Landry. "Interactive Minds (B)." Harvard Business School Case 800-114, November 1999.
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Offered at the beginning of a twenty-five session course on general management, this note presents a structure and an outline intended to serve as a reference and provide orientation to the students as the course progresses.
Addresses the following issues at a conceptual level: 1) Who is a general manager? 2) To whom is the general manager responsible? and 3) How do general managers add value?
Highlights and explores how a general manager adds value to the firm at the operational level by managing through people. Discusses how assumptions about human motivation influence the employment contract that the general manager implicitly enters into with the workers and ends with speculation on how the employment contract is fundamentally changing.
Traces the development of a Swedish furniture retailer under the leadership of an innovative and unconventional entrepreneur whose approaches redefine the nature and structure of the industry. Traces IKEA's growth from a tiny mail order business to the world's largest furniture dealership. Describes the innovative strategic and organizational changes Kamprad made to achieve success. In particular, focuses on his unique vision and values and the way they have become institutionalized as IKEA's binding corporate culture. The trigger issue revolves around whether this vital "corporate glue" can survive massive expansion into the United States and the Eastern Bloc and Kamprad's replacement as CEO by a "professional manager."
Bartlett, Christopher A., and Ashish Nanda. "Ingvar Kamprad and IKEA." Harvard Business School Case 390-132, May 1990. (Revised July 1996.)
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Traces the history of Intel from its earliest days as a technology-driven memory company to its emergence as an increasingly market-focused microprocessor company with emerging systems capabilities. The focus is on the strategic, organizational, and management adaptation that was required to ensure the company's survival in a highly volatile industry. Under the leadership of Andy Grove and Gordon Moore, Intel is able to overlay its R&D base with manufacturing and marketing capabilities that allow it to continually adapt to changes and renew itself.
Bartlett, Christopher A., and Ashish Nanda. "Intel Corporation - Leveraging Capabilities for Strategic Renewal TN." Harvard Business School Teaching Note 395-227, June 1995.
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The case traces Bryan Upton’s 20-plus years as managing director of a Sheffield-based cutlery company and describes the strategic and organizational actions he took to raise sales and earnings at more than 25% annually, even as the local industry was in steep decline.
After outlining how the U.K. cutlery industry has evolved, the case describes the major changes introduced by Upton and his mentor Jerry Hahn in Richardson Sheffield to upgrade production technology, innovate the product line, and instill customer orientation. The case focuses on the impact of Upton’s controversial approach to human resource management in general and to management selection and development in particular on the organizational climate at the firm.
The case closes by identifying some major changes that threaten Richardson Sheffield. In 1986, Hahn’s ownership position is sold to an Australian industrial company with a different operating style and different strategic objectives for Richardson Sheffield. Top management is also undergoing a transition, with Upton gradually moving aside and outsiders being introduced. Finally, the approaching 1992 EC market harmonization presents new competitive challenges and market opportunities.
Bartlett, Christopher A., and Ashish Nanda. "Richardson Sheffield." Harvard Business School Case 392-089, May 1992. (Revised September 2019.)
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This note was prepared to aid instructors in the use of "Richardson Sheffield," HBS No. 392-089. The case traces Bryan Upton’s 20-plus years as managing director of a Sheffield-based cutlery company and describes the strategic and organizational actions he took to raise sales and earnings at more than 25% annually, even as the local industry was in steep decline. After outlining how the U.K. cutlery industry has evolved, the case describes the major changes introduced by Upton and his mentor Jerry Hahn in Richardson Sheffield to upgrade production technology, innovate the product line, and instill customer orientation. The case focuses on the impact of Upton’s controversial approach to human resource management in general and to management selection and development in particular on the organizational climate at the firm. The case closes by identifying some major changes that threaten Richardson Sheffield. In 1986, Hahn’s ownership position is sold to an Australian industrial company with a different operating style and different strategic objectives for Richardson Sheffield. Top management is also undergoing a transition, with Upton gradually moving aside and outsiders being introduced. Finally, the approaching 1992 EC market harmonization presents new competitive challenges and market opportunities.
Bartlett, Christopher A., and Ashish Nanda. "Richardson Sheffield." Harvard Business School Teaching Note 395-212, June 1995. (Revised September 2019.)
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The case traces the evolution of the Tata group, one of the largest and highly respected Indian business houses, from its 19th century founding and early growth in diverse industries, to its response to changes in government regulation in independent India, up to its 1991 leadership transition from longtime chairman J.R.D. Tata to his successor, Ratan Tata.
The case first describes how Tata group founder Jamsetji Tata and his sons entered into the steel, hotel, hydroelectric, cement, air travel, and insurance industries (among others). It then explores how the evolving role of government in business in post-Independence India impacted the Tata group. The case also outlines the acceleration in the Tata group’s growth during the 1980s, following government liberalization. In addition to discussing how the group’s leadership navigated through the external pressures of policy and economics, the case also examines how they managed internal pressures – reduced synergy between the diverse and legally-independent companies under Tata’s umbrella, and, at times, reluctant adjustments in company culture that corresponded to Tata’s generational leadership transitions. The case invites comparison between J.R.D. Tata’s compassionate management style and his successor Ratan Tata’s no-nonsense, analytical approach. The case closes by outlining some of the challenges facing the Tata group amidst the changing political and regulatory environment of the 1990s.
Charles Ferguson has just heard from a venture capital (VC) consortium that it is willing to finance Vermeer Technologies, a company he has cofounded for developing Internet software. The funds are sorely needed, but the VCs have imposed some onerous conditions, including a request that Vermeer's first CEO be an outsider.
The Vermeer team works day and night to develop its software offering, unforeseen difficulties and internal tensions notwithstanding. In less than a year, the product is ready. The Vermeer team waits anxiously for the market to pronounce its verdict.
The success of the Vermeer software offering suddenly transforms the start-up into a sought after company. After arduous negotiations, Vermeer management is faced with the choice of continuing as an independent company or being acquired by Microsoft or Netscape.
Microsoft has acquired Vermeer, and Vermeer executives are both excited and concerned as they prepare to move to Redmond. Even though the acquisition has been financially rewarding, the Vermeer engineers worry how well they will adapt to their new home. Meanwhile, Chris Peters, their new boss, is trying to ensure a smooth integration of the Vermeer team into the Microsoft organization.
The Vermeer team is pleasantly surprised by the benefits and hospitality that their new surroundings offer. Their happiness is tempered, however, by discomfort with some elements of the "Microsoft Way." As the Vermeer engineers embark on a punishing schedule for the next release of their product, the Microsoft executives wonder whether the Vermeer team will be able to deliver on its promise.
Vermeer engineers work at the breakneck pace of "Internet time" to develop the next version of their software product, winning accolades from Microsoft management. Even before this version ships, however, they are faced with another punishing development schedule for the next release, leading some to question the development process and the pressure it imposes on the developers.
The Vermeer team discusses the organizational and strategic challenges they confront as product development and marketing proceed at the breakneck pace of "Internet time."
In 1987, Dennis Hightower, was recruited from outside for a newly created position as head of Disney Consumer Products European operations. Hightower has to win initial acceptance of entrenched country managers, integrate the company's diverse subsidiaries closer together, and revitalize European operations.
Describes the actions taken by Dennis Hightower as president of Disney Consumer Products in Europe and the Middle East from 1988 to 1994. Focuses on how he has established a regional office and knit local operations closer together, the benefits that the process has generated, but also the tensions it has created within the organization. The case ends with Hightower contemplating whether he should be changing directions, given the emerging strategic and organizational challenges.
The case describes the actions taken by Dennis Hightower as president of Disney Consumer Products in Europe and the Middle East from 1988 to 1994. It focuses on how he has gone about establishing a regional office and knitting local operations closer together, the benefits that the process has generated, but also the tensions it has created within the organization. It ends with Hightower contemplating whether he should be changing directions, given the emerging strategic and organizational challenges.
Named president of Disney TV and Telecommunications, Dennis Hightower has to yet again come in as an outsider and take charge. The magnitude of challenge is much larger than in 1987, and the situation facing him is subtly different.
Describes James Houghton's actions in assuming the role of CEO at Corning in the midst of a recession. Not only must he turn around operating performance, he must also revitalize a demoralized organization and set a new, clear strategic direction. In doing so, the case focuses on the changing role of alliances and partnerships in Corning operations. Increasingly, they are moving from a peripheral role in providing market access interchange for technology, to a more central role at the core of Corning's business. The strategic and organizational challenges this presents are highlighted through some specific decision issues facing Houghton.
Bartlett, Christopher A., and Ashish Nanda. "Corning Incorporated: A Network of Alliances TN." Harvard Business School Teaching Note 394-018, December 1993.
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Faced with vexing financial challenges in 1993, British Aerospace (BAe) is determined to shed its loss-making automaker, Rover. It offers to sell its stake in Rover to Honda, Rover's partner since 1979, but Honda is reluctant to raise its stake in Rover. Meanwhile, BMW approaches BAe with a confidential bid to buy out Rover. This case places these developments within the context of the history of the British auto industry, Rover's heritage, evolution of the Honda-Rover partnership, and the rationale for BMW's interest in Rover. The case series describes subsequent developments.
Nanda, Ashish, James K. Sebenius, and Ron Fortgang. Honda-Rover (C): "The Sting". Harvard Business School Case 899-225, March 1999. (Revised November 2001.)
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The case opens with a discussion of the evolution of the private branch exchange industry in the 1970s and 1980s. It follows the path of Rolm from an independent company to an IBM acquisition and its problem as an IBM division. Then describes Siemens' growing interest in the U.S. PBX market. At the end IBM and Siemens are negotiating over Rolm's future.
This supplement to the (A) case describes Siemens’ purchase of Rolm’s entire product development and manufacturing operation to form Rolm Systems and discusses the simultaneous 50/50 joint venture between IBM and Siemens to manage marketing, sales, and service for PBX equipment.
In 1987, Komatsu Ltd., looking to expand its presence in the U.S. earth-moving equipment (EME) industry, enters into a 50-50 joint venture with Dresser. The management of the Komatsu Dresser joint venture faces difficulty in bringing the two halves together. The rift between the dealership networks of the two parent companies reflects dissension within the organization. Even as management is trying to come to grips with the internal problems, the industry confronts a severe recession. A rewritten version of earlier cases.
In order to secure demand for its heavy oil, PDVSA buys 50% of the U.S. refining and retail company Citgo. In 1990, it buys the remaining 50% ownership of Citgo. The case describes the challenges faced by PDVSA and Citgo managements as they try to make their relationship work effectively.
Concerned that Citgo investments are not yielding sufficient returns, PDVSA constrains Citgo management's autonomy, leading to Citgo senior management turnover. The case closes with Citgo's new CEO reflecting on what he needs to do to align Citgo's strategy and operations with PDVSA's strategy and organizational needs.
