When an Executive Defects (HBR Case Study)
For teaching purposes, this is the case-only version of the HBR case study. The commentary-only version is reprint 97111Z. The complete case study and commentary is reprint 97111. 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.