Publications

Educators

27 Nov 2006
What Do You Think?

What’s to Be Done About Performance Reviews?

the other side of personal development." Abbey Mutumba said, "It is better to refer to performance appraisal/reviews as 'personal development reviews' to make the process (fit) more strategically with overall organizational... View Details

Keywords: by Jim Heskett

08 Sep 2021
News

Wall Street’s ESG Loans Charge Corporate America Little for Missed Goals

September 2016 (Revised January 2018)
Module Note

Strategy Execution Module 4: Organizing for Performance

This module reading explores the implications of different business models on organization design. After discussing the distinction between units focused on work processes and those devoted to markets, the analysis provides insight as to when to organize businesses by... View Details

Keywords: Management Control Systems; Implementing Strategy; Execution; Customer Focused Organization; Specialization; Span Of Control; Span Of Accountability; Span Of Attention; Strategy; Organizational Design; Organizational Structure

November 2016 (Revised December 2016)
Module Note

Strategy Execution Module 8: Linking Performance to Markets

This module reading shows how to link profit plans and other performance measurement systems to both internal and external markets. Starting with the transfer of goods and services within a firm, the module discusses the different methods of designing transfer pricing... View Details

Keywords: Management Control Systems; Implementing Strategy; Execution; Transfer Pricing; Activity Based Costing; Return On Investment; Residual Income; EVA; Strategy; Cost Accounting; Activity Based Costing and Management; Markets; Investment Return

February 2022 (Revised October 2022)
Supplement

Henkel: Building a Winning Culture (D)

By: Robert L. Simons and Carolyn Deller

This three-page case is the third update to Henkel: Building a Winning Culture (A). In this supplement, dated 2021, a new CEO has taken over Henkel and implemented a new strategy. His changes to the original performance management system are presented as a new... View Details

Keywords: Execution; Management Control Systems; Performance Goals; Incentives; Levers Of Control; Strategy; Management Analysis, Tools, and Techniques; Performance Evaluation

April 2023
Article

A Field Experiment on Subgoal Framing to Boost Volunteering: The Trade-off Between Goal Granularity and Flexibility

By: Aneesh Rai, Marissa A. Sharif, Edward H. Chang, Katherine L. Milkman and Angela L. Duckworth

Research suggests that breaking overarching goals into more granular subgoals is beneficial for goal progress. However, making goals more granular often involves reducing the flexibility provided to complete them, and recent work shows that flexibility can also be... View Details

Keywords: Goals and Objectives; Outcome or Result; Performance Improvement

July 2012 (Revised February 2017)
Teaching Note

Dovernet

By: Robert Simons and Natalie Kindred

This is the teaching note for Dovernet (HBS No. 112-061) View Details

Keywords: Execution; Management Control Systems; Performance Measurement; Performance Goals; Incentives; Strategy

14 Dec 2011
Research & Ideas

The New Measures for Improving Nonprofit Performance

How can nonprofit leaders address such conflicting demands? Harvard Business School Working Knowledge recently spoke with two leaders in the field of nonprofit performance management. Mario Morino is cofounder and chairman of Venture... View Details

Keywords: by Julia Hanna

July 2021
Case

Performance Review: Joseph Park and Elena Ramírez

By: David G. Fubini and Patrick Sanguineti

Niya Jones, a Partner at a major management consulting firm, must review the work of two of her mentees––Joseph Park and Elena Ramírez––for their first end-of-year performance review as new Project Leaders. Both have produced strong results in their new roles, but... View Details

Keywords: Personal Development and Career; Management Style; Goals and Objectives; Management Analysis, Tools, and Techniques; Leadership Style

Educators

October 2011
Case

Raleigh & Rosse: Measures to Motivate Exceptional Service

By: Robert Simons and Michael Mahoney

In January 2010, U.S. luxury goods retailer Raleigh & Rosse is being sued by its employees for encouraging "off the clock" hours. At the center of the class action lawsuit is the famous Raleigh & Rosse performance measurement system previously thought to be the core of... View Details

Keywords: Control Systems; Performance Measurement; Goal Setting; Compensation; Incentives; Motivation; Sales Compensation; Motivation and Incentives; Goals and Objectives; Growth Management; Lawsuits and Litigation; Organizational Culture; Management Systems; Customer Focus and Relationships; Employees; Performance Evaluation; Compensation and Benefits; Retail Industry; United States

Educators

January 2022 (Revised March 2022)
Module Note

Analysis of Financial and Non-Financial Information for Forecasting Performance

By: Charles C.Y. Wang

This note describes the main themes and cases of a teaching module on the analysis of information from, and outside of, financial statements for forecasting firms’ future financial performance. The module’s pedagogical goal is to deepen students’ understanding of the... View Details

Keywords: Financial Reporting; Performance; Analysis; Valuation; Accounting; Finance

June 2015
Supplement

Henkel: Building a Winning Culture (B)

By: Robert Simons and Natalie Kindred

This case, an update on "Henkel: Building a Winning Culture (A)," describes Henkel's strong performance against its tough 2012 objectives, as well as the new objectives CEO Kasper Rorsted set for 2016. View Details

Keywords: Kasper Rorsted; Rorsted; Henkel; Germany; Personal Care; Consumer Products; Culture; Performance Management; Performance Metrics; Stretch Goals; Strategy; Measurement and Metrics; Performance; Management; Consumer Products Industry; Germany

September 2016 (Revised March 2017)
Module Note

Strategy Execution Module 3: Using Information for Performance Measurement and Control

This module reading explains how managers use information to control critical business processes and outcomes. The analysis begins by illustrating how managers use information to communicate goals and track performance. Then the focus turns to the choices that managers... View Details

Keywords: Management Control Systems; Implementing Strategy; Strategy Execution; Organization Process; Feedback Model; Innovation; Uses Of Information; Big Data; Benchmarking; Decision Making; Information; Performance Evaluation; Analytics and Data Science

November 2016 (Revised March 2018)
Module Note

Strategy Execution Module 9: Building a Balanced Scorecard

This module reading explains how to construct a strategy map and build a balanced scorecard. Using an internal value chain model, the module illustrates how a balanced scorecard can support and enable customer management, innovation, operations, and post-sale service... View Details

Keywords: Management Control Systems; Implementing Strategy; Execution; Performance Measurement; Strategy Map; Business Goals; Customer Measures; Strategy; Balanced Scorecard; Business Model

09 Jul 2001
Research & Ideas

Does Misery Love Companies? How Social Performance Pays Off

the empirical quest to link a firm's social investments to its financial returns has preoccupied researchers. Our goal in this paper is to reorient debate and research about social initiatives by business. We try to stimulate a fresh... View Details

Keywords: by Joshua D. Margolis & James P. Walsh

01 Feb 2000
Research & Ideas

Keeping Track: Performance Measurement, Control & Strategy

missing an opportunity to turn a good business into a great one. Q: You emphasize that it's more important than ever for managers to communicate business strategy and performance goals effectively to... View Details

Keywords: Re: Robert Simons

November 2016 (Revised December 2016)
Module Note

Strategy Execution Module 11: Using Diagnostic and Interactive Control Systems

This module reading introduces diagnostic and interactive control systems. Diagnostic control systems are the management-by-exception systems that managers use to monitor the achievement of their business strategy. Interactive control systems are the systems that top... View Details

Keywords: Management Control Systems; Implementing Strategy; Execution; Performance Measurement; Diagnostic Control Systems; Interactive Control Systems; Emergent Strategy; Goal Setting; Incentives; Strategy; Motivation and Incentives; Goals and Objectives; Management Systems; Performance Evaluation