Joe's First Bank

Joe Spoke has had a highly successful career in banking. Joe will leave his present job as CEO of a county region of a bank chain within 60 days because of disagreements with his new boss. The case explores several career options for Joe. One option is to take a job as one of three executive vice presidents of a local bank. A second option is to take a job that will involve relocation. A third option is to start a new bank in his county. The case explores the option of starting a new bank in detail. Projected financial statements are included for analysis by the students. This revised version was published online in July 2006 with corrections to the Cover Date.     

Resignation or Dismissal?: When a CEO and a President Clash

In the executive director's opinion, Bluehills Family Services' board of directors had serious problems with their organizational governance. These difficulties came to a head in an apparently unresolvable clash between the executive director and the board president. Given the preexisting board and organization perceptions, could an emergency board meeting produce a positive outcome, and would the executive director's participation be counterproductive?     

Use of an ISO 14000 Option in Implementing EPA's Rule on Risk Management Programs for Chemical Accidental Release Prevention

EPA's rule of Risk Management Programs for Chemical Accidental Release Prevention applies to facilities that manufacture, process, use, store, or otherwise handle regulated substances at or above specified threshold quantities. EPA estimates that approximately 66,000 facilities nationwide will be regulated under the rule. This paper examines the use of a structured ISO 14000 mechanism as option-regulated facilities could elect for implementation of the rule. Under the ISO 14000 option, facilities would commit to additional obligations regarding information disclosure, discussions with potentially affected publics, and timely correction of deficiencies noted in annual ISO 14000 audits of their compliance with the Risk Management Program they submit to the EPA under the rule. In return, facilities would be granted significant relief in regard to both EPA audit frequency and the penalties that might be applied for any items of noncompliance with the rule noted during the course of implementing agency reviews of the facility. The paper concludes with a discussion of the advantages and disadvantages of this option to potentially affected stakeholders.     

The Ties that Bind: Social Networks, Person-Organization Value Fit, and Turnover Intention

This article examines the influence of social networks and valuecongruence on turnover intention among public and nonprofitemployees. We argue that employees exist in social networksinside and outside their organization, and these networks shapeemployee attitudes and behavior. To illustrate this theory,we use turnover intention. A strong and positive intraorganizationalsocial network characterized by good relations with and a senseof obligation toward other staff is hypothesized to make itmore likely that employees will stay. A strong social networkexternal to the organization is hypothesized to increase theopportunities that employees have to leave. Our findings offerstrong support for the role of intraorganizational networks,but relatively weak support for the effect of external networks.We also propose that person-organization (P-O) fit shape turnoverintention. Our results suggest that employees who experiencea strong P-O fit in terms of value congruence are more likelyto offer a long-term commitment.     

Additional results for 'Sequential design approaches for bioequivalence studies with crossover designs'

In 2008, this group published a paper on approaches for two‐stage crossover bioequivalence (BE) studies that allowed for the reestimation of the second‐stage sample size based on the variance estimated from the first‐stage results. The sequential methods considered used an assumed GMR of 0.95 as part of the method for determining power and sample size. This note adds results for an assumed GMR = 0.90. Two of the methods recommended for GMR = 0.95 in the earlier paper have some unacceptable increases in Type I error rate when the GMR is changed to 0.90. If a sponsor wants to assume 0.90 for the GMR, Method D is recommended. Copyright © 2011 John Wiley & Sons, Ltd.     

Tree-structured analysis of treatment effects with large observational data

Treatment effect in an observational study of relatively large scale can be described as a mixture of effects among subgroups. In particular, analysis for estimating the treatment effect at the level of an entire sample potentially involves not only differential effects across subgroups of the entire study cohort, but also differential propensities – probabilities of receiving treatment given study subjects’ pretreatment history. Such complex heterogeneity is of great research interest because the analysis of treatment effects can substantially depend on the hidden data structure for effect sizes and propensities. To uncover the unseen data structure, we propose a likelihood-based regression tree method which we call marginal tree (MT). The MT method is aimed at a simultaneous assessment of differential effects and propensity scores so that both become homogeneous within each terminal node of the resultant tree structure. We assess simulation performances of the MT method by comparing it with other existing tree methods and illustrate its use with a simulated data set, where the objective is to assess the effects of dieting behavior on its subsequent emotional distress among adolescent girls.     

Comparison of three-dimensional profiles over time

In this paper, we describe an analysis for data collected on a three-dimensional spatial lattice with treatments applied at the horizontal lattice points. Spatial correlation is accounted for using a conditional autoregressive model. Observations are defined as neighbours only if they are at the same depth. This allows the corresponding variance components to vary by depth. We use the Markov chain Monte Carlo method with block updating, together with Krylov subspace methods, for efficient estimation of the model. The method is applicable to both regular and irregular horizontal lattices and hence to data collected at any set of horizontal sites for a set of depths or heights, for example, water column or soil profile data. The model for the three-dimensional data is applied to agricultural trial data for five separate days taken roughly six months apart in order to determine possible relationships over time. The purpose of the trial is to determine a form of cropping that leads to less moist soils in the root zone and beyond. We estimate moisture for each date, depth and treatment accounting for spatial correlation and determine relationships of these and other parameters over time.     

Embracing risk as a core competence: The case of CEMEX

In this paper we argue that risk management can be an important source of competitive advantage for firms. For this to happen, managers must overcome four deep-seated notions about the management of risk: the myopic conception that risk is a collection of unconnected threats to the survival of a firm, the belief that risk management is largely a financial activity, the idea that risk management is solely a top management team task, and a blind faith that CEOs can continuously anticipate the risks that firms must address on an ongoing basis. Challenging these four misconceptions reveals that risk management can be an activity that is value creating, not just value preserving. Indeed, rather than indiscriminately shedding all types of risks, companies can develop new sources of competitive advantage by embracing those risks that they are relatively better at managing than their rivals. We illustrate our arguments by analyzing the risk management practices at CEMEX, the Mexican cement manufacturer.     

Military Triumph, Racial Transcendence, and Colin Powell

A "black kid of no early promise," Colin Powell became the youngestgeneral in the U.S. Army, and then in short order national securityadvisor, chairman of the Joint Chiefs of Staff, and the nation’ssecretary of state. What does this extraordinary story revealabout contemporary American political life? Analyzing surveyssupplied by the National Election Study and the National BlackElection Study, we first establish that Powell’s rapidrise to prominence is matched by his remarkable popularity amongthe American public. Next, we develop and test two possibleexplanations for Powell’s popularity. One supposes thatthe secret to Powell’s high standing with the public liesin his association with success on the battlefield: Powell asthe victorious general. The other explanation invokes racialprogress, the disappearance of racism among whites, and thedecline of identity politics among blacks: Powell as raciallytranscendent. In the final section of the article, informedby our results, we offer some speculations about American politicstoday—about the political implications of military accomplishmentand about the multiplicity of conditions that are required forAmericans to "see through" race.