When an Executive Defects - The Case Centre

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Management article

Reference no. 97111Z

Authors: Idalene F. Kesner (Harvard Business School); Anurag Sharma (Harvard Business School); Kenneth L Coleman (Harvard Business School); Stephen A Greyser (Harvard Business School); Hal Burlingame (Harvard Business School); Robert Galford (Harvard Business School); Gregory S Rubin (Harvard Business School)

Published by: Harvard Business Publishing

Originally published in: "Harvard Business Review", 1996

Revision date: 30-Jan-2013

Length: 16 pages

Topics: Crisis management; Interpersonal relations; Succession planning; Legal aspects of business; Human resource management

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Abstract

For teaching purposes, this is the commentary-only version of the HBR case study. The news that one of the company's senior managers is leaving comes as a complete surprise to Paul Simmonds, CEO of Kinsington Textiles, Inc (KTI). Ned Carpenter, KTI's vice president of operations for three years, writes in his resignation letter that he is leaving for a better opportunity. Simmonds soon learns that Carpenter's new job is at Daltex, one of KTI's main rivals in the intensely competitive carpet industry. In this fictitious case study, Simmonds, along with the company's counsel and vice president of human resources, must figure out how much and what sort of damage control they need. In 97111 and 97111Z, Kenneth L. Coleman, Stephen A Greyser, Hal Burlingame, Rob Galford, and Gregory S Rubin offer advice about communicating with KTI's employees, the media, and Carpenter himself, and about protecting the company's confidential information.