Having just retired as CEO of Cummins Engine, Henry Schacht is unexpectedly tapped by Bob Allen, CEO and Chairman of AT&T, to become the CEO of the soon-to-be-spun-off Lucent Technologies. Lucent, composed of the former Bell Labs and Western Electric units of AT&T, was growing 1% in a 16% annual growth market. Neither unit had income statements, balance sheets, or consolidated numbers. Set in October 1995, Schacht is about to meet with Rich McGinn, his newly-appointed COO, who had hoped to get the CEO position. The IPO filing was due in 90 days. The case is intended for use in courses on managing strategic change, turnarounds and workouts, leadership, or managing the politics of strategy.