Appropriate for general management courses emphasizing operations strategy and senior leadership. Senior leadership in a global manufacturing company must respond to the critical directive to achieve a 25% cost reduction. Under the direction of an advisory firm, an operational transformation strategy is developed and implementation proceeds in the company's 28 sites. Elements of the transformational program, including leadership challenges and progress after one year of implementation are presented. Students are asked to critique the progress and offer suggestions. A teaching note (OM-1400TN) is available.