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This case discusses the impact of corporate leadership on the financial-turnaround efforts of a division of a large corporation. At the date of the case, Charles L Griffith, new general manager and vice president of Tar Products, is about to meet with his predecessor's leadership team for the first time. Given the history of this failing business, the tasks for the student are to decide what Griffith should say at this critical meeting and how he should deal with three urgent issues facing the division. Analysis of the case reveals a business faced with a declining industry and serious environmental and morale issues. The case provides a framework for discussing how middle management can effect change by 'leading from the middle' and what factors contribute to a significant business transformation. This case should be taught with 'Carbon Materials and Technologies: AlliedSignal (B),'.