The Nut Island effect describes an organizational behavior phenomenon in which a team of skilled employees becomes isolated from distracted top managers resulting in a catastrophic loss of the ability of the team to perform an important mission. The term was coined by Paul F. Levy, a former Massachusetts state official, in an article in the Harvard Business Review published in 2001. The article outlines a situation which resulted in massive pollution of Boston Harbor, and proposes that the name of the facility involved be applied to similar situations in other business enterprises. The work is used as a source in human resources management case studies and is featured on the websites of several business management consulting firms and health care institutions.
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