MacAfee Building Supply, a distributor of building supplies and heating and plumbing products, had grown to become the largest company of its kind in the world by incentivizing profit-maximizing behavior at the local level. John Smith, a senior manager at the company's Build subdivision, had nevertheless grown concerned that MacAfee's incentive scheme, which incentivized profits at the branch level, was actually hindering long-term global profitability by creating a lack of cooperation among branches and discouraging branch manager's investment in long-term endeavors. In this three-part case students first recommend strategies for better aligning employees to a long-term focus, and then evaluate the results of the program the company selected.
Case ID: 090301
Supplemental Materials: Teaching Note, Teaching Slides