Daniel Kim was considering blowing the whistle on his friend, the CEO of a fast-growing start-up, where Kim had spent most of his professional career. When Kim, the company, called cardio Metric, joined in 2002, it consisted of seven young engineers (including his two 25-year-old founder) work from a one-bedroom apartment Minneapolis. By 2008, when the venture capital-financed company are recorded $ 110 million in sales, Kim had become close friends with the founders, who served as CEO and chairma … Read more »

Daniel Kim was considering blowing the whistle on his friend, the CEO of a fast-growing start-up, where Kim had spent most of his professional career. When Kim, the company, called cardio Metric, joined in 2002, it consisted of seven young engineers (including his two 25-year-old founder) work from a one-bedroom apartment Minneapolis. By 2008, when the venture capital-financed company are recorded $ 110 million in sales, Kim had become close friends with the founders, who served as CEO and Chairman. However, cardio Metric success concealed troubling internal developments. Since 2002, the CEO of the management style had progressed to questionable unconventional to monstrous. Kim, cardio-metric on-and-off CFO, had repeatedly dismissed the CEO about his behavior including charging large purchases without a clear business purpose for cardio-Metric and presents unrealistic financial projections for investors, but the CEO Kim concerns and ordered him not confronted to share it with others in the company. By April 2009, Kim believed the problem was spiraling out of control, and he considered that disclosure of the actions of the CEO Board of Directors and a team of external auditors. There was a lot at stake. Kim’s disclosure would undoubtedly ruin his friendship with the CEO Kim endanger their own role in the company, and even endanger the future of cardio-Metric is.
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from
Bill George,
Natalie Kindred
Source: HBS
8 pages.
Release Date: 13 April 2011. Prod #: 411009-PDF-ENG
Daniel Kim’s Dilemma (A) HBR case solution

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