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This case has two primary purposes. First, it allows students to examine how cognitive bias can affect decision making in stressful situations. Students explore why individuals make flawed choices. They learn about how managers shape the context and the process through which teams make decisions. For instance, automation can create a climate in which people then struggle to cope with the unexpected when it happens. Students examine why individuals make these systematic errors in judgment. The case demonstrates that leaders need to be aware of the traps that individuals and teams encounter when they make decisions in crisis situations, and it enables students to discuss the strategies that leaders can employ to avoid these traps. Second, the case provides an opportunity to examine a catastrophic failure in detail. Students discover that it can be nearly impossible to identify a single factor that caused the failure. Instead, they learn how to apply multiple theoretical perspectives to examine a serious organizational breakdown. They become familiar with important concepts from behavioral decision theory, such as complex systems theory and how it interacts with cognitive bias.

The technical report released by the French Aviation Authority along with the primary flight cockpit voice recorder data were used as the basis for this case. Other available public data such as news reports were used to round out the case study.

On June 9, 2009, on a routine flight from Rio de Janeiro to Paris, Air France 447 (AF 447), carrying 220 people crashed in the mid-Atlantic Ocean. Drawing from various first-hand accounts (cockpit voice recorder) and secondary evidence of the tragedy, the case provides a detailed account of the key events that took place leading up to the accident. The case describes how the pilots on AF447 were confronted with a scenario they had not faced before, and through the confusion made a series of errors. Through many of the quotes in the text, readers gain an understanding of the impressions and perceptions of the pilots, including how they felt about many of the critical decisions and incidents during the last minutes of the flight. The case concludes by highlighting the main findings of the BEA report.

This case study is appropriate for undergraduate students studying organizational behavior. It is also appropriate for MBA-level leadership and behavior classes.

The technical reports released by the National Transportation Safety Board, along with secondary data in the form of available public data, such as news reports, interviews and memos, were used to round out the synopsis of the case study.

This case explores the events that led up to the crash of United Airlines Flight 717 (for anonymity), in Sioux City, Iowa, on July 19, 1989, and the subsequent investigation. The case uses secondary sources to highlight the positive team interactions between the pilots that led to the crash landing not being as catastrophic as it might have been with 185 survivors in an extreme crisis scenario. The teaching note focuses on the importance of cognitive bias, psychological safety and teamwork in a crisis situation, and practical recommendations for managers at all levels.

Organizational Behavior at the undergraduate and graduate level. Leadership and Change at the graduate and graduate level.

Captain Joseph Brunetti was given the assignment to provide his superior officer an analysis of what to expect when the US Army implemented its new process to evaluate the performance of noncommissioned officers (NCOs), called sergeants. Brunetti had about 104 sergeants in his unit. The US Army created a new process in 2015 to evaluate sergeants to overcome the deficiencies in the Army’s old process, now 28 years old. Under the old process, almost every sergeant was rated at the highest levels, making it nearly impossible for the US Army to know whom to promote to higher ranks. Under the old process, very little counseling took place, so NCOs were not given guidance on how to develop themselves. Raters and senior raters (SRs) were not held accountable for their work in performance management, either. Under the new process, which included a forced distribution form of ranking, SRs had to offer counselings as well as options for future assignments. Brunetti, who had only limited experience in rating sergeants anyway, had to prepare for his boss what was called an “operations report” outlining what the organization could expect with the changeover to the new process and what may need attention as the process would continue in subsequent years.

This case has been developed from actual experiences and the assignment given to Brunetti also happened as described in the case. Since many of the individuals in the case are still employed by the US Army, the names of the individuals and the company units in this case have been disguised. Even so, the events of the protagonist’s tours of duty prior to the assignment described in this case did occur, but some of the locations within the USA have been changed. The other persons quoted from public documents or otherwise referenced in the articles are the actual persons so identified. The old NCOERs in Exhibit 3 are as these were written but the personally identifiable data about the individuals have been blackened out.

This case is suitable for both undergraduate and graduate courses in human resource management and especially on the topical material on performance management and performance appraisal. The case can also be used in both undergraduate and graduate courses in general management, for modules on human resource management. The Relevant Theory section below is centered on human resource management.

This relevant theory which undergirds this case centers on the broad concept of performance management and on performance appraisal instruments. The case underscores the important concept that performance management has to be more than “completing the appraisal form.”

Grocery store chain Winn-Dixie had rapidly expanded in an effort to become a national retailer, and by 1999 it had more than 1,000 stores. The company began manufacturing its own products, reasoning that by owning more of the supply chain, it could offer the customer less expensive options. With its new geographic focus and manufacturing facilities, Winn-Dixie attempted to secure a position as a low-cost provider with a national presence. Instead of improving the company's position in the market, however, this strategy crippled both the short- and long-term prospects for Winn-Dixie. The company paid a high premium to expand and increased its leverage without ever realizing the purposed synergies. In fact, there were dis-economies of scale because the distribution, marketing, and administrative costs had risen along with the increased revenue. The expansion and inefficient manufacturing added complexity to its distribution network, and with a greater debt load and less cash, the company was unable to reposition itself in the market when its low-cost provider strategy failed. Not only was the company unable to pursue other opportunities but it also did not have the cash to properly maintain many of its existing stores, which quickly became run down. Winn-Dixie was stuck as a general grocer with few options at a time when the industry was rapidly evolving. Following faulty strategies of expansion, supply chain changes, and increased debt, Winn-Dixie declared bankruptcy. Students will take the view that Paul “Flip” Huffard, lead consultant from Blackstone LP, had in determining the valuation and new capital structure of the company. These decisions would be critical, as they affected what each creditor class would receive and whether Winn-Dixie could emerge from bankruptcy.

Students will: 1. Assess the importance and negative financial impact of past strategic moves, and suggest possible future strategic directions and the expected benefits of such changes. 2. Learn quantitative valuation methods for a company in Chapter 11 and their effects on stakeholders. 3. Learn the elements of a plan of reorganization, including the capital structure, treatment of multiple creditor groups, and management compensation. 4. Discuss sources and uses of capital during a Chapter 11 turnaround.

At the end of the course, the participants are expected to be able to: understand and explain what is bridging leadership (BL); understand stakeholder, stakeholder engagement and stakeholder management; conduct a stakeholder analysis based on the details of the case; evaluate the BL processes based on the details of the case; and communicate how BL was used in Dumingag.

Mayor Nacianceno “Jun” Pacalioga’s journey towards the transformation of the municipality of Dumingag, Zamboanga del Sur in Mindanao, Philippines has been rooted in his daily interaction with its residents by way of morning walks around the town. He has always been involved in organizing people in his youth and as a public servant, improving the plight of the people of the 4th class landlocked and agriculture-dependent municipality has always been his primary concern. There are currently an estimated 50,000 people from forty-four (44) barangays (communities/villages) in the Municipality of Dumingag. In 2007, most farming households of the municipality earned US$ 60 monthly. By 2016, after Pacalioga’s 9-year stint as local chief executive or as mayor, the percentage of households with income below the poverty threshold have significantly decreased to 38%. Local health indicators have also become exemplary with only 0.77% of children between 0-5 years old recorded as malnourished, with maternal mortality death rate. When it comes to food, only 0.25% of households experience food shortage.

This case highlights the Bridging Leadership Framework as a paradigm to help address social divides and inequities in complex environments such as Dumingag. In realizing bridging leadership as a community of practice, Pacalioga employed participatory processes to develop the Genuine People’s Agenda, and the integrated Transformative Education to build the capacity of different stakeholders in the municipality. These processes mobilized different stakeholders to move towards the common goal of improving the plight of the Duminganogs. Now Dumingag is enjoying the broad-based benefits of the program; including recognition by numerous local and international organizations and civic groups on the efforts of Pacalioga and the people of Dumingag in transforming their once poverty-stricken town in Zamboanga del Sur, Mindanao, Philippines.

Masters Level/Executive Education.

Teaching notes are available for educators only.

CSS 10: Public Sector Management.

Grocery store chain Winn-Dixie had rapidly expanded in an effort to become a national retailer, and by 1999 it had more than 1,000 stores. The company began manufacturing its own products, reasoning that by owning more of the supply chain, it could offer the customer less expensive options. With its new geographic focus and manufacturing facilities, Winn-Dixie attempted to secure a position as a low-cost provider with a national presence. Instead of improving the company's position in the market, however, this strategy crippled both the short- and long-term prospects for Winn-Dixie. The company paid a high premium to expand and increased its leverage without ever realizing the purposed synergies. In fact, there were dis-economies of scale because the distribution, marketing, and administrative costs had risen along with the increased revenue. The expansion and inefficient manufacturing added complexity to its distribution network, and with a greater debt load and less cash, the company was unable to reposition itself in the market when its low-cost provider strategy failed. Not only was the company unable to pursue other opportunities but it also did not have the cash to properly maintain many of its existing stores, which quickly became run down. Winn-Dixie was stuck as a general grocer with few options at a time when the industry was rapidly evolving. Following faulty strategies of expansion, supply chain changes, and increased debt, Winn-Dixie declared bankruptcy. Students will take the view that Paul “Flip” Huffard, lead consultant from Blackstone LP, had in determining the valuation and new capital structure of the company. These decisions would be critical, as they affected what each creditor class would receive and whether Winn-Dixie could emerge from bankruptcy.

Students will: 1. Assess the importance and negative financial impact of past strategic moves, and suggest possible future strategic directions and the expected benefits of such changes. 2. Learn quantitative valuation methods for a company in Chapter 11 and their effects on stakeholders. 3. Learn the elements of a plan of reorganization, including the capital structure, treatment of multiple creditor groups, and management compensation. 4. Discuss sources and uses of capital during a Chapter 11 turnaround.

Husk Power Systems, a young but widely celebrated firm based in India, needs $1.5 million to $2.5 million of expansion capital to grow quickly beyond the small footprint it had established in northeast India. It was a successful green-energy enterprise that aimed to provide electricity to millions of rural Indians in a financially viable way. With 10 “mini power plants” that used rice husks as a fuel source and a presence in 25 isolated Indian villages as of April 2009, the company's goal was to reach 350,000 to 400,000 consumers in 400 villages by the end of 2011. It was offered a convertible-note financing structure by a cleantech private equity firm and needed to assess whether it suited the company's and founders' interests.

This case was designed for and is used in Darden's Entrepreneurial Finance and Private Equity elective. With less of a focus on the financials, the Husk case has also been used in other Darden courses such as Social Entrepreneurship and Global Economies and Markets in a module focusing on emerging markets.