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This case is designed to teach how to structure information technology (IT) infrastructure outsourcing deals from both the outsourcer and the client perspective. Office Supply Incorporated (OSI) is a company in crisis, with challenges in its cost structure and poor IT performance. Outsourcing to Technology Infrastructure Solutions is an opportunity to both reduce costs and complexity for the firm, but students first must consider whether outsourcing is a good strategic fit for OSI. Detailed spreadsheet templates are given that are based on a real outsourcing client engagement for a major infrastructure outsourcing company. The spreadsheets are complex but have been simplified so that they automatically calculate when populated, allowing the students to quickly move to answering the management challenge: how should TIS price and structure the outsourcing deal? Answering this question provides deep insights into the business case for IT outsourcing and how outsourcers financially engineer a deal structure to ensure a win-win outcome for both the client and outsource service provider.

Students will: Understand the strategic context of IT outsourcing and when it will benefit a firm; Understand IT infrastructure outsourcing and management issues such as personnel reductions and organizational change; Learn which outsourcing pricing model is the best fit for a project; Create a rigorous cost-benefit financial analysis and ROI model for IT infrastructure outsourcing; Analyze the model and learn how to financially engineer the deal to be a win-win for the outsourcer and client.

The learning outcomes of this study are as follows: ■ understand organizational turnaround and its sustainability;■ applying the understanding of turnarounds to distinguish between operational and strategic levers of a turnaround strategy; ■ analyze and evaluate past and present turnarounds from a sustainability perspective; and ■ formulate managerial actions to make turnaround sustainable.

Braithwaite Company Ltd. (Braithwaite) was a specialized engineering firm headquartered in Kolkatta, India. It primarily undertook structural steel fabrication to make railway wagons and bridge structures. It was incorporated as a private enterprise almost a century back. However, since its nationalization five decades ago, it has been operating as a public sector undertaking (PSU) under the aegis of Indian Railways, a department of the Government of India. The case documents the past three decades of the firm’s journey, during which it experienced three episodic turnarounds. Details of the first two turnarounds are presented as the background, in light of which sustainability of the third turnaround is to be examined. The case explores the sustainability of organizational turnarounds from the perspective of the current Chairman and Managing Director (CMD), the case protagonist. Braithwaite underwent financial and operational distress in 1992, 2005 and 2015 and negotiated them under different leaders. These leaders from diverse backgrounds used distinct tactics and strategies to bring about organizational turnarounds. The case provides data and information to assess the sustainability of the third turnaround. Hence, it allows a class to explore the paradoxical observation that while “turnaround” inherently implies sustenance of good performance over time, turnaround sustainability is not spontaneous in the real world. The case deals with the performance issues of PSUs, which make significant contributions to the national economy in the case of emerging economies (for example, 5%–8% of the Indian National gross domestic product is contributed by PSUs; https://swarajyamag.com/ideas/psus-are-crucial-for-indias-growth-but-only-if-they-play-a-strategic-role). Under government ownership and management, the poor performance of PSUs is often attributed to bad decision-making by its top management. In contrast, Braithwaite’s top management’s sound contextual decision-making resulted in a jump in its performance during each turnaround phase, but unsound fundamentals resulted in the unsustainability of the turnarounds. Hence, the case enables an exploration of the unique challenges faced by PSU that emanate from legacy roles, monopolistic markets and dual purpose – the concurrent pursuit of profits and social welfare. Consequently, the case allows an examination of the reasons for the distress of PSUs and the viability of turnaround strategies in the context of the broader Business–Government–Society landscape in emerging economies.

The case is written for use in the MBA elective course covering “Strategic Revival and Turnaround Strategies.” It can be used at the beginning of the course to identify reasons for organizational failure/distress or in the later part of the course to discuss the implementation of operational and strategic turnaround strategies.

Teaching notes are available for educators only.

CSS 10: Public Sector Management.

Fonkoze is the largest Microfinance Institution in Haiti whose clients are mostly poor women. The authors had access to documents and meetings of the organization for an extended period, and observed the growth of the organization from a single office to 21 branch offices. In so doing, their staff had to spend increasing time in fundraising so that they could make more loans to the existing and new customers. This case presents the decisions of the Board and the management to alleviate some of those problems. Against a backdrop of political and civil turmoil, the case could be instructive for students and instructors alike. The Board had to decide whether to apply for status as a regulated bank, or to transform into some other financial entity.

The chief executive of a small yarn-production company in India must resolve an unexpected cash shortage. The task for the student is to evaluate the causes of this shortage (using a completed “base-case” forecast given in the case) and assess the usefulness of various possible remedies suggested by managers.

The company is unable to liquidate a seasonal working-capital loan for the requisite 30 days each year, a difficulty arising from two classic causes: secular growth of the company and declining profitability. Possible remedies include reducing inventory through more efficient transportation and warehousing, reducing credit terms to customers, switching from seasonal to level production, improving profitability, decreasing dividends, and reducing sales growth.

Change in culture brought about by effective leadership is at the core of this case. Therefore, two broad topics can be discussed using this case: organizational culture change and Change Leadership OR Role of leaders in organzational change.

The case was prepared using primary data collected through a series of interviews conducted with participants of the change process. The participants included R. Sivanesan, Senior Vice President (Quality, Sourcing and Supply Chain) of Ashok Leyland, many members of the quality team, production department, HR executives and members of the marketing team. Secondary data in the form of an interview of Mr Vinod Dasari published in a popular magazine Autocar Professionals and organizational documents/presentations used during the change process were also used to build the case.

In 2011, when Vinod Dasari took over as the Managing Director and CEO of Ashok Leyland (AL), he hired R. Sivanesan. The quality standards of the vehicles produced in the AL plants in 2011 was far from satisfactory. He decided to change this. Part A of the case discusses the challenges faced by Sivanesan and Vinod Dasari in bringing about a change in the quality management practices at AL. Part B discusses the steps they actually took and the change that resulted from it.

At the end of the case discussion, the participants will be able to develop an understanding of the various aspects of organizational culture and how it manifests itself; become aware of the underlying causes of resistance to change; critically evaluate and apply various theories of change management; create an action plan for changing the culture of any organization; and appreciate the role of leaders as change agents.

The central theme in this case is managing culture change within organizations through effective leadership. Instructors teaching courses in organizational theory, organization structure/culture and leadership will find this case relevant. It is primarily intended for use in MBA and Executive Education programs in Management.

Business management, quality management, service quality and customer service in public sectors.

This case is most relevant to upper-level undergraduate business students taking quality management, strategy and service management courses. It is also relevant to practitioners working in similar positions. The case is based on primary and secondary data, and all materials mentioned were taken from real work environments.

In contemporary competitive markets, all entities face a growing challenge to retain customers by satisfying them. In this case study of Ajman Free Zone Authority (AFZA), which is a public entity which was started in 1988 with the aim of boosting industrial development in Ajman, it is seen that the entity (AFZA) recognized a competitive advantage by improving service quality. However, AFZA focused on implementing various service quality improvement initiatives for not only customers, but also for other stakeholders as well (e.g. employees, strategic partners, suppliers and society). AFZA sought to understand stakeholders' needs, which led to service excellence. The purpose of this case is to highlight how AFZA differentiated itself by using initiatives that focused on disparate stakeholders to achieve customer satisfaction. The concepts of service quality (SERVQUAL), total quality management (TQM) and continuous improvement offer insights into how to improve organizational performance. It highlights how AFZA used Stakeholder Theory to identify and then collaborate with stakeholders to attain best service quality outcomes. The case study is developed using both secondary and primary sources.

After reading and analysing this case study, the student will be able to identify stakeholders in a service-based entity; apply Deming's Cycle or SERVQUAL to suggest improvement programmes; describe relationships among all stakeholders; and describe initiatives that contribute to service excellence.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Management control system, corporate performance management, budgeting, planning, multinational organization.

Graduate and executive education level management programs.

General Motors India (GMI) operations established in 1994 and grew steadily, unlike her startling global performance. In 2007, GMI unveiled its new vision and mission for aggressive growth, expansion and establishing presence across all segments. With increased globalization of General Motors Corporation (GMC), the strategic importance of GMI for sourcing was envisaged. The case describes the organization structure and management control systems at GMI and the changes onto new strategy and vision. The case narrates the unique futures of its control systems such as dual reporting and matrix organization, business plan deployment (BPD), budgeting, performance measurement and compensation system.

The financial planning and control system in a large decentralized multinational subsidiary. Typical organizational responsibility structure and administrative and functional, dual-control mechanism. Appreciate strategic planning and budgeting process and how the strategy is cascaded through multiple key result areas and the BPD board. The business environment and strategy dynamics and its relationship with the prevalent control system. Opportunity for students to speculate the changes in control system in wake of radical changes in the business and company environment. Opportunity to introduce Simmons (1995) levers of controls and management control system package.

Teaching notes.

Learning outcomes are as follows: students will discover the importance of process orientation in management; students will determine the root cause of the problem by applying root cause analysis technique; students will identify the failure modes, analyze their effect, score them on a scale and prioritize the corrective action to prevent the failures; students will analyze the processes and propose error-proof system/s; and students will analyze organizational culture and ethical issues.

Purpose: This case study is intended as a class-exercise, for students to discover the importance of process-orientation in management, analyze the ethical dilemma in health care and to apply quality management techniques, such as five-why, root cause analysis, failure mode and effect analysis (FMEA) and error-proofing, in the management of the health-care and service industry. Design/methodology/approach: A voluntary reporting of a case of “radiation overdose” in a hospital’s radio therapy treatment unit, which led to an ethical dilemma. Consequently, a study was conducted to establish the causes of the incident and to develop a fail-proof system, to avoid recurrence. Findings: After careful analysis of the process-flow and the root causes, 25 potential failure modes were detected and the team had assigned a risk priority number (RPN) for each potential incident, selected the top ten RPNs and developed an error-proofing system to prevent recurrence. Subsequently, the improvement process was carried out for all the 25 potential incidents and a new control mechanism was implemented. The question of ethical dilemma remained unresolved. Research limitations/implications: Ishikawa diagram, FMEA and Poka-Yoke techniques require a multi-disciplinary team with process knowledge in identifying the possible root causes for errors, potential risks and also the possible error-proofing method/s. Besides, these techniques need frank discussions and agreement among team members on the efforts for the development of action plan, implementation and control of the new processes. Practical implications: Students can take the case data to identify root cause analysis and the RPN (RPN = possibility of detection × probability of occurrence × severity), to redesign the protocols, through systematic identification of the deficiencies of the existing protocols. Further, they can recommend quality improvement projects. Faculty can navigate the case session orientation, emphasizing quality management or ethical practices, depending on the course for which the case is selected.

MBA or PG Diploma in Management – health-care management, hospital administration, operations management, services operations, total quality management (TQM) and ethics.

Teaching Notes are available for educators only.

CSS 9: Operations and Logistics.

The focus is on a performance management system and its strategic alignment using a Balanced scorecard in a Public Private Partnership framework. This case study analyses the situation for Tata Power Delhi Distribution (TPDD) which needs to realign its strategy to meet the emerging sustainability challenges of inclusive growth and combating the climate change. The case covers the field of strategic management, strategy formulation and performance management system deployment using the balanced scorecard. It touches upon the emerging need for corporates to look beyond economic signals and take social and environmental impacts into strategy planning process.

The case can be used in the following courses; post graduate program in public administration; MBA/Post graduate program in management in strategic management; executive training program for Government executives in public sector organizations to highlight the concept of performance management system in PPP companies.

After the initial tumultuous years, TPDD emerged as one of the efficient power distribution companies in Delhi region. One of the major management tools that was helpful to achieve this was the balanced scorecard. TPDD's general manager for corporate strategy & planning reviewed the process and the due diligence that went into designing and implementing the balanced scorecard. Now, after the balanced scorecard success story, he along with Dr Ganesh Das, Head of Group – Strategy wants to take it to a next level and integrate their strategies related to inclusive growth of community and combating the ill effects of climate change. They believe that the balanced scorecard method that had helped them to achieve their strategic goals will help them to achieve future objectives too. But whether the existing four perspectives: financial, customer, internal process and learning and growth would adequately address the emerging challenges or whether there was a need to introduce a new perspective – “The Social Perspective” – is what they contemplate in the case.

The case can be used to teach the following: the importance of strategy in an organization and how it helps the firms to realize their stated vision; to highlight the process of strategy formulation and its deployment; to help students realize the difficulties in realizing a strategic goal through performance management system; use the balanced scorecard as an effective tool for strategy deployment and organizational alignment; to introduce students the concept of sustainability in the organization and emerging global challenges; and to illustrate the complexities involved in a strategic planning process

Teaching notes.

In this case, lessons from the Chicago Benchmarking Collaborative illustrate key principles of collaborative action and the importance of using data to achieve SMART goals.

In 2015, the Chicago Benchmarking Collaborative (CBC) was a network of seven agencies in Chicago, Illinois, serving 12,000 low-income residents. Each of the agencies had early childhood, school-age children, and adult education programs. At the prompting of the Chicago Community Trust, they came together to (1) benchmark their education programs outputs and outcomes; (2) learn and share best practices through developing a common set of metrics and measurements and implementing these measurements into a case management software system; and (3) share the costs of the case management software system to be used for program evaluation and continuous quality improvement.

Three aspects of CBC are particularly noteworthy. First, there are no joint program activities or clients among these agencies. Their exchange is limited to sharing data and other information. This makes CBC distinct from collaborations formed to begin a program or to advocate for a policy. Second, the group requires each agency to enter data on a timely basis and to set SMART goals based on the data reports. The agencies are held mutually accountable for their work to achieve their own SMART goals during the year and report on progress. Third, CBC used monetary incentives to ensure that data entry and SMART goal action remained a priority for each agency.