Norwest Labs provides agricultural and environmental testing services. While the agricultural market is seasonal and highly sensitive to the weather, the environmental market is relatively stable, as it is primarily developed because of regulatory compliance testing required of its clients. The company's CEO and founder is confronted with serious challenges: a substantial financial loss, cash flow problems, growing competition and a potential regulatory change that would eliminate mandatory testing by its clients. The purpose of the case is to consider whether the conditions and timing are appropriate for introducing employee gain sharing as a means to implement organizational change. Norwest Labs (B) and (C) are also available, cases 9A99C012 and 9A99C013.
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