WHEN AN EXECUTIVE DEFECTS

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 . Ned Carpenter, KTI's vice president of operations for three years, w rites in his resignation letter that he is leaving for a better opport unity. Simmonds soon learns that Carpenter's new job is at Daltex, one of KTI's main rivals in the intensely competitive carpet industry. Hi ring Carpenter had helped Simmonds establish his reputation as a topno tch manager. Carpenter came to KTI with lots of ideas and put his enth usiasm to good use. Three years into a five-year change program, Carpe nter had turned KTI's operations from one of the worst in the industry to one of the best. He also had helped develop and plan the upcoming launch of a new fiber coating - KTI's first breakthrough in years. In this fictitious case study, Simmonds, along with the company's counsel and vice president of human resources, must figure out how much and w hat sort of damage control they need. What are they going to tell the company's employees and the media! Should they immediately replace Car penter with John Brady, the second-in-command of operations? What if C arpenter is taking KTI employees - and strategic information - with hi m to Daltex? Should Simmonds ask all his managers to sign noncompete a greements - something Carpenter was never asked to dot Should KTI sue Carpenter? Five experts offer advice about communicating with KTI's em ployees, the media, and Carpenter himself, and about protecting the co mpany's confidential information.