Source: Harvard Business Review
Bent on improving its "green" credentials, a company debates the need for a CSO. This fictional case study will appear in a forthcoming issue of Harvard Business Review and appeared on HBR.org last week.
September 27, 2010 by Eric J. McNulty and Rupert DavisJennifer Brown, CEO of Narinex, an electronic components manufacturer based in Michigan, re-read the news
alert on her screen. The company had lost another major contract to Glistrom, a UK-based competitor it had regularly beaten. She called out to her secretary. "Sally, I need Herb Tyler and Laura Dyson right away."
Losses like these were not just the normal ebb and flow of deal making, and Brown wanted input from her COO, Tyler, and her CFO, Dyson. She was determined to keep Narinex on top.
With $3.2 billion dollars in revenue and operations in North America, Europe, and Asia, Narinex had performed consistently well with Brown at the helm. A favorite of Wall Street analysts, it had kept costs low even as it expanded into new lines and markets, and Brown was now regarded as both innovative and hard-nosed. At her direction, Narinex had outsourced some of its R&D to bring new offerings to market more quickly, and she had negotiated performance-based contracts that kept the supply chain lean and mean. She had also sold the corporate jet and refused a company car, to show her commitment to limiting overhead.
Within 20 minutes Dyson and Tyler were waiting for Brown in her office. These senior managers were accustomed to her urgent summons and the subsequent grilling. Tyler had also seen the Glistrom announcement and knew Brown would be anxious. It was a multiyear deal potentially worth $50 million or more.
"I've already asked Ian to get competitive intelligence from his team," Tyler said, referring to Ian Jones, the VP of sales. "He did mention that Glistrom is generating buzz in the field."
"'Buzz' doesn't tell me much. How quickly can you two turn whatever he has into something we can act on?" Brown demanded.
Tyler and Dyson exchanged a glance. "Can we have 24 hours?" Dyson asked.
With a nod, Brown sent them off to solve the Glistrom puzzle.
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