Ultimate Office Products - Case Study Example

Ultimate Office Products A. Introduction One of the most difficult situations managers face is leading organizations through periods that necessitate large-scale changes. Machiavelli observed, "the innovator will have for enemies, all who have done well under the old conditions and only lukewarm defenders in those who may do well under the new." (Machiavelli, 1992, p.13) The reasons that necessitate change could be internal or external triggers, changes in technology, globalisation, changing workforce practices or consumer preferences. While top management initiates major organizational changes, managers at other levels may at times be called upon to anchor changes. The reasons for resistance to change emanate from a lack of trust in the leader, the belief that the change is unnecessary or not feasible, fear of losing income, relative increases in costs, fear of personal failure, loss of status or power, threat to values and ideals and resentment of interference. The leader who seeks to bring about organizational changes should understand the need for change, the change processes, implementing change, and possible reactions. Bass (1985 cited in Shackleton 1995, p. 113) and Burns (1978 cited in Shackleton 1995, p. 113) put forth the concept of transformational leadership. In spite of some variations, there is broad agreement in the concept suggested by Bass and Avolio through their "Multifactor Leadership Questionnaire (MLQ)" and the "Managerial Practices Survey (MPS)" of Yukl, which includes managerial practices such as clarifying, supporting, inspiring and team building. (Tracey and Timothy, 1998). Ultimate Office Products realized that changes in the atmosphere such as intensified competition and heightened consumer expectations called for improvements in customer service such as electronic order processing, tracking and servicing. The company instituted the new department of information systems with Richard Kelly its director. Richard observed many unnecessary activities and bottlenecks were slowing down work processes. He installed new computer workstations and software to speed up and control the processes. However as most departmental heads - Richard's peers resisted change it could not be implemented. The CEO authorized constituting a number of cross-functional teams under Richard to report to a steering committee composed of departmental heads. The task forces were constituted to identify changes required in work processes. An outside consultant was called in to advise the task forces. The 'task forces' met with key customers to understand customer preferences and improve the efficiency of order filling system. They made recommendations to the steering committee often attended by the CEO to emphasize its seriousness. With the cooperation of all departmental heads, the company eliminated many unnecessary processes and within a year, was able to double order processing speed. The 'change for the better' brought about a change in peoples' attitudes too and many of them now volunteer to work on teams that design ways to improve service quality. B. The leaders' behaviour The CEO was able to see the environment driving change: discount merchandisers and office product super-stores altering traditional distribution channels. Manufacturers were challenged with demands for rate cuts and speedier processes for billing and filling orders. This necessitated process automation, which is primarily a change in technology and entailed in the creation of the new department of information. Richard Kelly the director of the new department installed the components for automating processes, the computer workstations and software. However installation of new technology by itself cannot bring about desired changes without making efforts to bring about simultaneous changes in the attitudes, skills and roles of various stakeholders. Richard, was not able to put the equipment to use as some of the key stakeholders, managers from sales, production, accounting, shipping and customer service, who were his peers did not see any need to change existing systems. The CEO expected Richard to resolve the issues and get ahead with the implementation of the new system. Richard's first act to retrieve the system was to gather more information about the delays by mapping workflows from the time orders were received until the orders were filled and shipped. Richard knew that although he had the support of the CEO he needed widespread commitment if he were to successfully implement change. He formed several cross-functional task forces that would study the work processes and recommend changes. Each task force studied one aspect of the problem, analysed work processes in consultation with key customers and visited other companies to study how they functioned. The findings of these committees were presented to the steering committee consisting of Richard and departmental managers. The CEO signalled her support to the recommendations of the task forces by attending these meetings, which silenced sceptics and detractors. C. Why the leaders' behaviour can be termed effective When Richard realised that mere installation of new technology was not enough to motivate people to accept and implement it he set on a course correction. Lewin (1951 cited in Yukl 2005, p. 295) suggested in his force-field model that the change process involved three stages: the unfreezing stage which involves reducing restraining forces or increasing driving forces; moving to the new level which involves development of new attitudes and behaviour and implementing the change and refreezing the new level in which the change is stabilised by rebalancing the driving and restraining forces. However it is necessary to recognize that the culture of the organization has a profound influence on this process. The culture of an organization is the set of beliefs, values, norms of behaviour and understandings prevailing and governing human nature and relationships in the organization. (Frain 1993, p. 93 and Schein 1992 cited in Yukl 2005, p.298). While there may be a divergence between the underlying beliefs and values an organization espouses, the underlying beliefs represent the organization's culture and are learned responses to the external environment. 'Culture' takes shape over a period of time but becomes a subconscious response to external stimuli and is resistant to change. The CEO and Richard sought to bring about a cultural change in Ultimate Office Products. Schein (1992 cited in Yukl 2005, p.298) listed five primary mechanisms for bringing about a transformation of culture: they are drawing attention to the issues at hand; reaction to crises; setting an example in their own reaction to a crisis; allocation of rewards and laying down criteria for selection and dismissal. Yukl argues that a "clear and compelling vision" is a very useful tool of transformational leadership. (Yukl 2005, p. 303). The act of forming task forces by the CEO and Richard involves some of these principles: they have clearly communicated the needs for transforming organizational processes, the CEO 'role-modelled' by actively participating in the process and offered a clear and compelling vision about the benefits that accrue to the organization when the course was followed. The procedure they have adopted to develop and implement the new vision was to involve important stakeholders, identify strategic objectives with wide appeal, formulate task forces for implementation and demonstrate the credibility of the vision by the results obtained. (Yukl 2005, p. 306 & 310) D. How, and in what ways, the leaders' behaviour affected the functioning of the individuals they managed, the team and organisation. When the modernizing systems were first introduced, the managers from sales, production, accounting, shipping and customer service could not agree that it was really necessary. This conformed to theoretical bases for resistance to change: lack of trust, the belief that the change was neither necessary nor feasible, fear of personal failure and loss of status and power. Richard found that the existing system had a number of unnecessary activities, which slowed down the process, extending across functions. As the people who were to bring about changes were his peers, he decided to approach the problem by making these important stakeholders his partners in change management and formed various task forces. This removed the first obstacle in their psyche that the change was being imposed from outside and persuaded them that they were changing the processes for the better. The last iota of indignity they might harbour for obeying a peer was removed by bringing in an external consultant to advise them. Their education on the need for change was complete after they met with key customers and visited other companies to learn first hand the processes they were following. The positive results that the change brought about turned the key converts into volunteers for pursuing the course further. These activities facilitated and diffused organizational learning and encouraged innovation and entrepreneurial activity. (Yukl 2005, p. 318-319). E. Conclusion While organizations seek change to adopt to environmental challenges, it is necessary to identify where and when changes are required; recognize that organizations operate in a stable and relatively predictable environment; change is primarily concerned with group activity and behaviour; change involves from one fixed state to another with clear stages and processed in between; that it is necessary for members to be willing to change and the application of appropriate tools and techniques can bring about the desired change. The case study of Ultimate Office Products amply demonstrates these principles. Southwest Engineering Services A. Introduction The growing complexities of businesses necessitate organizations to rely on special teams of employees to take crucial decisions hitherto made by individual managers or work on specific projects. Five different types of teams have been recognized: functional operating teams, cross-functional teams, self-managed teams, self-defining teams and executive teams. The distinction between these teams is based on functional autonomy, authority, leadership, duration and diversity of membership. Executive teams at the apex of organizations have the highest autonomy, authority and stability. On the other hand members drawn from various functional departments to work on specified projects form cross-functional teams. The teams are disbanded after the tasks assigned to them are finished and members revert to their original functional departments. The objective of forming such cross-functional teams is to plan and implement complex projects that require considerable co-ordination, co-operation and problem solving abilities. Cross-functional teams are employed, for example, for new product development and implementation of new information systems. Members of cross-functional teams bring in individual expertise; the teams allow for flexible and efficient problem solving and decision-making in the quickest possible time. As members of these teams work in tandem, it fosters creativity by helping them to understand problems from multiple perspectives. These teams also eliminate, to a large extent, inter-departmental rivalries that slow down decision-making processes. Leader-member exchanges: In his investigation of the interrelationships between leader-member exchanges, Deluga observes that whereas "lower quality exchanges are characterized by restricted levels of reciprocal influence and support"; higher quality exchanges involve mutually supportive subordinate supervisor relationships. "These transactions exhibit considerable interpersonal attraction, mutual trust, strong loyalty, comfortable communication, and bi-directional influence." While these, subordinates obtain special benefits and opportunities including delegation of tasks without interference. The subordinates respond by being committed, competent and conscientious. The also perform activities beyond written in-role job descriptions. (Deluga 1998) Southwest Engineering Services is a company that manages engineering projects in a highly competitive market. The company formed a cross-functional team to design new decision support software headed by Ron Morrison who has a reputation as a software whiz and a rising star in the company. The team was constituted to develop a new and innovative decision support system that was better than anything else currently in use. It was an extremely challenging assignment and needed total commitment from members. Ron informed them that for the next nine months the project would rule their lives with long working hours and practically no weekends. The work on the project was indeed more intense than anyone expected but Ron's infectious enthusiasm and optimism swept the most cynical off their feet and the most unemotional members found the work exhilarating. Ron used to brief them precisely as to what was expected and keep them focused on objectives. But team members were expected to confer and figure out the method of execution. He was of course available as a referee when needed. However he would not tolerate any sloppiness in the work. Ron's relentless pressure ensured steady progress; the team met regularly to evaluate progress and iron out any problems that arose. Every member was given an opportunity to make important contributions based on their expertise irrespective of their status or length of service. As project director, often, Ron had to travel to various company locations to canvass for resources and assistance. When he was away Ron encouraged team members to stand in for him as team-leader, in rotation. When morale was low because of persistent technical snags which defied resolution he pepped them up by recalling the tremendous progress achieved; reminded them that snags occurred sometimes in executing complex technical projects; assured them that they would be able to overcome it if they rested themselves for a little while and called off work for the day. The reprieve did indeed work and the following week the team found an innovative method to solve the problem. Under Ron's redoubtable leadership, the team finished the project weeks in advance of the timeline. The team members, proud of their tremendous accomplishment, reverted to their original functional units glad to have worked with a coach and facilitator like Ron. B. The leaders' behaviour Managing cross-functional teams has its share of disadvantages. While communicating with members having diverse functional backgrounds is a barrier, a lot of time is spent in meetings. The team leaders of cross-functional teams should have the following skills: technical expertise, administrative skills, interpersonal skills, cognitive skills and political skills. (Yukl 2005, p. 331-332). Ron has demonstrated that he has all these skills in abundance. He has picked up the best talent offered by the company, clearly explained the importance of the project and what was involved. In the first meeting he gave them a glimpse of the scorching pace he was going to set and suggested those who were not up to it to drop out. After the briefing he allowed them relative autonomy to operate with the proviso that sloppiness would not be tolerated. They understood that he meant business when one of them was made to apologise to the group. This was proof of his assertive interpersonal skills. He exhibited his coaching and mentoring skills by being available for consultation always and testing them in the hot seat in turns and cognitive skills when he spotted managerial potential in Donna. His ability to canvass for resources and assistance proves his political skills. (Yukl 2005, p. 331-332) C. Why the leaders' behaviour can be termed effective The proof of the pudding, after all, is in eating it. A complex technical project, which at one stage tested the combined technical and problem solving skills of the entire team, was finished weeks in advance of the timeline. Right at the beginning Ron informed the team what they were in for so that anyone who was not hopeful of coping with the challenges of the project could drop out. Ron set the team a scorching pace, made them to work long hours, late into the evening that they had to have food ordered at the workplace so as not to lose time. The team did not complain when it had to forego Saturdays but found the work exhilarating. He was able to instill in them a sense of purpose that they would change the way the company worked. He was able to give them precise instructions but left them to do work on their own. He made a deterrent example of an errant team member; he did not pull him up but made him to apologize to the whole group. When the team ran into rough weather during the middle of the project, he did neither lose heart nor confidence in his team. He just praised the work done till then made them to rest and recharge with the result the team came up with an innovative solution to a perplexing problem. His team members held him in high esteem as a "fantastic coach and facilitator", yet they all knew that it was team work that made them achieve tremendous results. D. How, and in what ways, the leader's behaviour affected the functioning of the individuals he managed, the team and the organisation. Barry (1991 cited in Yukl 2005, 332) observed after interviewing and observing teams in action that the leader of a cross-functional team should have the following qualities, which affected the team and the organization in general. Envisioning: Ron was clearly able to envision the decision-support system that would enhance the competitive edge of the company, especially since the company's volume of business was increasing. This made the company take up the new software project to augment its decision-support system. He was able to clearly communicate the objectives to the team without any ambiguity. He was able to drive them to achieve their common goal, advising them what was wanted and how but keeping in the background so that they would innovate and find creative solutions. Organizing: As he planned the schedule in advance he was able to foresee the number of hours it would need to work on; hence the advance of warning of a grueling pace of work. Ron was helpful when a member of the team experienced difficulties but did not tolerate sloppiness. Social integrating: He exhibited mutual trust and confidence when he broadly instructed them about their duties but left them to their devices rather than breathing down their necks. He was always there to shore up flagging morale. The team responded by giving its best, did not grumble to forego comforts and achieved the goal well ahead of the timeline. External spanning: Ron spent a considerable amount of time lobbying for the resources and assistance the team needed. This he was able to achieve by projecting a favourable image of the team and its work with the rest of the company. E. Conclusion The leader of a cross-functional team should make sure the group task is perceived to be important; make individuals feel that they are making valuable contributions to the group; make individual contributions identifiable. The diverse nature of their composition and the complexity of issues that they are tasked with make them difficult to manage and often require multiple managers. The cross-functional team at Southwest Engineering Services, led by Ron is one of the exceptions where a single leader was able to knit together members from various functional units into a viable efficient team. Bibliographic References: Deluga, Ronald J 1998, "Leader-member exchange quality and effectiveness ratings: the role of subordinate-supervisor conscientiousness similarity."Group & Organization Management23.n2(June 1998):189(28).British Council Journals Database.Thomson Gale.British Council.Retrieved April 4, 2007, from . Frain, John 1999, Introduction to Marketing (4th Edition). International Thomson Business Press. London. Machiavelli, Niccol 1992, The Prince N. H. Thomson, translator, Dover Publications, Inc., New York. (Originally published by P. F. Collier & Son, New York, 1910.) Retrieved from http://www.design.caltech.edu/erik/Misc/Machiavelli.html Shackleton, Viv 1995, Business Leadership. Routledge. London. Tracey, J. Bruce,andTimothy R. Hinkin 1998,"Transformational leadership or effective managerial practices"Group & Organization Management23.n3(Sept 1998):220(17).British Council Journals Database.Thomson Gale.British Council. Retrieved April 4, 2007, from . Ward, Andrew 2003, The Leadership Lifecycle (Matching Leaders to Evolving Organisations). Palgrave Macmillan. Houndmills, Basingstoke, Hampshire. Yukl, Gary 2005, "Leading Change in Organizations" in Leadership in Organisations (Fifth Edition). Pearson Education. New Delhi. Chapter 10 pp. 293-324 Yukl, Gary 2005, "Leadership in Teams and Decision Groups" in Leadership in Organisations (Fifth Edition). Pearson Education. New Delhi. Chapter 11 pp. 325-360 Read More