Case E - Kerrie's Challenge: Leading an Unpopular Change

4 (b) Evaluate the argument that managers controlling large companies might follow policies which do not necessarily maximise the profits of the owners.

This case was written by Rhonda Engleman and Jisun Yu under the supervision of Professor Andrew H. Van de Ven of the Carlson School of Management at the University of Minnesota. We also appreciate the editorial assistance of Julie Trupke and useful comments of Gyewan Moon and Margaret Schomaker. We gratefully acknowledge Stuart

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Some employees resisted the change which happened during the prior restructure where management was downsized

At stake here are several conflicting values, the concern for a fellow human being, self-preservation, success of the company and the pressure to perform. As VP of the division, I am under scrutiny to deliver substantial results to my president, John Edmonds, to be seen as sensitive to my product managers needs. Lisa Walters, Kathryn’s supervisor, has pressed me for a resource action for boosting staff morale and replacing her with someone who can be more productive. I also feel that Kathryn McNeil is a hard worker who is stuck in a tricky personal situation.

The team needs to see how this idea is going to develop and whether or not it will benefit the company in the long run. Also, all suggestions, comments, thought and ideas should have been discussed with Liz and the other staff members. This way they could have voiced their opinions and expressed their concerns as well. If the team is not really sure of what is going on they should be comfortable asking questions in order to get a better understanding of how the new plan should work.

A Costco’s manager needs to know different information from the investor for the mere fact that the manager has to plan, direct, and control the entire organization (Edmonds, Olds & Tsay, 2008). The executive is aware of the company’s external affairs but mainly focuses on the information that affects the business internally. The manager deals with issues that pertain to the finances of the firm as well as making sure to disseminate information to employees at all levels. Managers are the heartbeat of the enterprise. Managers are responsible for informing the employees about nonfinancial information such as work schedules, store hours, and customer service policies (Edmonds, Olds & Tsay, 2008).

During the analysis, it is evident that the most difficult task or challenge that was faced was the impact change had on the employees. As evident from the rapid growth and the changes that were implemented in a short period of time, this level of change can be difficult on many. Organization change does take time for individuals to adjust, especially those that have held certain beliefs, mindsets, and habits for many years (Richards, 2016). Many efforts and programs were put into place to help assist and develop staff, but due to the fast pace, many did not stay with the organization through these transitions. There may have been some benefit in slowing the pace down some, so the change was not so significant or drastic at such expedited speed. Due to the turbulent environment that individuals and organizations face in the financial services industry, strong leadership, good communication, and a commitment to change management should be priority (Sherwood, Wolfe, & Staley, 2005). Advia Credit Union may have benefited from

The belief that the group can change has to come from the top, so it is important that Mr. Greystone keeps a positive attitude in line with the decisions made by the Chairman and CEO. Mr. Greystone could be protecting his own job and reputation by having a positive and supportive attitude towards the new initiative. He shows that he is behind the company in the decisions made, and that he believes in Dynacorp’s new direction. Greystone says, “Now the way we go about that is to assign multifunction and multiproduct account teams to specific customers in specific industries…That way, our people are industry specialist, not just product knowledgeable...we are focusing the salesforce on selling customized solutions based on integrating our products…by targeting our investments toward growth of sales in specific industries and developing solutions to fit their needs, we’ll rebuild our market share and increase margins” Greystone wants his group to be successful and wants the support of his employees. Moreover his employees with his support behind them might feel like the have the right formula to continue the implementation of the new structure and be supportive of it. The success of Mr. Greystones group will reflect directly upon him and allow him to maintain a good imagine with his employees and attain possible career advancement within the organization. We will now analyze how different managers within the group regard the new implementation and how it affects

6. What lessons can we draw from this case about the challenges of pursuing a cost leadership strategy?

During a meeting at the executive strategy retreat, I present the information I acquired with my interactions with the vice president of Big Mart. The initial response from majority of the team was resistant. Aware that the first

Her decision to redesign account management function and expand the use of technology presents internal and external issues with her team and the business unit (Bethel University, 2014-A). Her team of senior manager has internal issues that had to be resolved; personalities, protectionism, and the reluctance of leadership (Bethel University, 2014-A). They believed that Kerrie’s task was an exercise in futility because they had been through it many times before, everyone had ideas, but no one presented a solution that was acceptable to the entire group (Bethel University, 2014-A). This caused some in-fighting or bickering about what and how things should be done.

The whole chain is a demonstration of how implementation of any of the organizational goals results in a subsequent achievement of the other objectives. The three goals of credit, deposit, and non-interest balances are given a balance of leadership within the organization.

In 1996, Citibank was an emergent banking institution attempting to increase its market share in the competitive Los Angeles area. In order to do so, the bank’s strategy was to focus slightly less on their financial growth, and much more on providing “a high level of service to its customers”. Management viewed this paradigm shift as “critical to the long term success of the franchise”.

4. How does this case illustrate how strategic intent needs to be matched by both organizational capability and managerial competence; and show how such