Options for Implementing a Leadership Change at Gene One - Case Study Example

OPTIONS FOR IMPLEMENTING A LEADERSHIP CHANGE 22nd DECEMBER, 2008 Gene One propounded in the year 1996, is one of the most renowned companies in the field of biotech industry. The win-win situation has facilitated the growth of the company to reach a target of $400 million in a span of just eight short years. Leadership changes at the Food and Drug Administration are being initiated so as to enhance the investor’s confidence in the industry. The gene One’s highly innovative, enthusiastic and proactive team end vision emphasis on the realization of the annual growth targets of 40 percent for which the only possible option left to explore by the company is to go public within the next three years. The company at such times is in desperate need to raise its IPO capital for new development, advertisement, and marketing if it is to sustain itself and achieve its set targets. It is important to understand that changes are generally headed by the top management but any member of the organization can actually contribute towards its success. The company in such a stage of conflicting ideas needs to follow the Lewin’s force-field model whereby a three phased process of unfreezing, changing and refreezing should be implemented (Yukl G, 2006). Firstly it is important for every member of the team to understand that implementation of IPO necessitates the realization that old ways of doing things are no longer applicable, the threats, opportunities and related circumstances need to be clearly explained and justified so that all members are ready to accept change and select a promising approach by a uniform consensus and agree to implement in future. A very important aspect which needs to be taken into consideration while incorporating a leadership change strategy is the ‘force’ which is responsible to implement change in an organization. The component of force include the nature of the workforce, the advancement and changes in the technology, economic shocks, competition, social trends and world politics are few attributes for continual change (Robbins P S, Judge A T, 2007). There are various kinds of organizational changes, but what is linked with Gene One is the role centered approach. The workflow needs to be reorganized, the jobs need to be re-designed to include different activities and responsibilities, and the authority relationships need to be modified. The main assumption behind applying such strategic approach is that when the work role requires a person to act in a specific manner, a corresponding change in the attitude is reflected in their new behaviour (Yukl G, 2006). In the current case, Don Ruiz supported his team from the core of his heart and had full confidence in their abilities and capabilities to make the IPO project a success, but the practicality of the study clearly reveals the ambiguity which is visible in the current leadership structure and style. Though the organization’s core team has the best of all, still the member ship does not abide by the requirements of the project. Teri Robertson, the CTO presents ideas that clearly define technology as a business priority and has time and again proved herself in attracting leading researchers who have further led to one new technology and one product after another. Charles Jones, a marketing leader knows how to make things happen. And Michelle Houghton, the CFO, is thorough not only with the numbers but how to use them, both strategically and financially. At the same time it cannot be denied that in order to move on with the option of IPO, certain requirements have to be fulfilled such as the Act requires an IPO Board to have at least one member with financial experience as CPA or CFO which is completely missing in the current team. The Act also requires that the Board have three committees to represent auditing, compensation and nominating which are again not present on the current Board. In case the firm decides to recruit new Board members, it could take almost a year just to find suitable candidates and the deadline for the project is just three years away. New recruits have to be made to incorporate leadership changes especially in areas where suitable candidature does not exist. Charles has no previous experience hence this position needs to be replaced and made accepted on proper grounds of justification. Teri has a number of achievements to support her ability to lead along with the fact that breakthrough technologies cannot be achieved under deadlines of fixed time stipulations. Such realistic and practical situations cannot be denied. However, a team of experts can be made to join in order to speed up the entire process but replacing Teri is no positive approach in the leadership change process. Internal changes in Gene One need to focus on the economic as well as the human factors. Technology is one of the areas where Gene One has to fight a fierce battle with its competitors Wall Street, and employees like Teri are certainly precious for the firm in generating valuable innovative ideas. Kotler’s eight step plan for implementing change can also help Gene One. The procedure includes the first key step which is establishment of a sense of urgency by creating a reason for why change is needed. As in this case, all the team members can be explained about the urgency of recruiting suitable candidates for the project and relieving those who are not in sink with the project. Secondly, a coalition needs to be formed with enough power to lead the change. All the members have to be given equal importance in adapting and implementing any change without undermining any member (Robbins P S, Judge A T, 2007). A completely new vision needs to be framed to direct a change and strategies for achieving the set vision. Attaining a 40 percent growth rate through a directing change via a role centered approach can solve the purpose. The newly created vision needs to be communicated to all through conducting regular meetings and passing messages they make the employees feel more secured rather than turning them into a state of panic and resentment. Further it is required to empower the other team members in order to work on the vision framed by removing barriers to change and encouraging risk taking and creative problem solving. At short time intervals, progressed should be measured and rewarded in order to keep up the morale and the objective intact. Consolidate improvements and make the needed changes and the last stage focuses on the reinforcement of the changes by linking the relationship between new behaviors and organizational success. Being a part of the team member, drafting a change strategy requires a complete engagement of the people who can be actually affected by the incorporation of changes. In accordance with the case study what is required at the moment for the accomplishment of company’s end vision is nothing more than ‘leadership for transformation’ which is in general catalysed by major changes in external environment. In this kind of leadership strategy ‘change’ is a continual process and not an isolated form of organizational strategy and is integrated into the final strategy from all corners. Transformation is accepted as a choice in response to the needed change. The challenge ultimately which need to be faced by ‘Gene One’ is either get transformed or be changed altogether? To implement a successful IPO, a transformational leadership strategy is the most appropriate of all. Successful transformation leadership requires Gene One to create an integrated transformation strategy, transforming mindsets, designing and implementing transformation process (Orane M, 2005). Transformational leadership deals with implementation of new ideas with flexibility and adaptability as the key components (Powell A J,2008). Transformational leadership provides inspirational motivation, idealized influence, enthusiasm for the radical or the revolutionary, which is exactly what Gene One needs in its current functional situation. Engagement in the execution of a change strategy in Gene One involves a complete association right from the understanding through to implementation phase which also includes further five components of understanding of the current problem and its future impact. Understanding may be further attained by conducting One-to one discussions with senior staff, one-to-many presentations, moderated discussion forum etc (Dwyer K, 2008). Belief and acceptance on the current leadership and the future recruits, caring about what the company already possess and not letting them go off so easily, planning to achieve the organizational goals and objectives, and implementation of the stated plans which have been unanimously agreed upon by all senior leaders and Board members (Dwyer K, 2008). In the end it can be concluded that a fresh approach towards the leadership of Gene One needs to be thought about as change is the only thing constant in today’s business world. Employees are the asset of the organization especially the senior leadership who has put in their heart and soul in making a stand for the firm and raising it from a $2 million company to $400 million firm. Their worth cannot be denied but certainly the key role transformation can be established whereby the company can achieve its targets along with creating a competitive, healthy and united team workforce which has always proven to be its real strength. References Robbins P S, Judge A T, 2007, Organizational Behavior, Twelfth Edition, Published by Prentice Hall. Pearson Education, Inc. Yukl G, 2006, Leadership in Organizations, Sixth Edition, Published by Pearson Prentice Hall, Pearson Education, Inc. Powell A J, 19th November, 2008, Holding the Whole: Transformative Leadership, 2nd Annual A Gathering of Leaders Academy for Leadership and Governance Columbus State Community College, retrieved on 22nd December, 2008, http://4909e99d35cada63e7f757471b7243be73e53e14.gripelements.com/presentations/2008_11_19_columbus_state_community_college_leadership_workshop.ppt. Orane M, 15th November, 2005, Can our current Leadership Drive and Implement Transformation?, retrieved on 22nd December, 2008, http://www.caibinc.org/files_custom/3176_8717.ppt. Dwyer K, 2008, Implementing a Change Strategy; Getting Engagement: Change Factory, retrieved on 22nd December, 2008, http://www.changefactory.com.au/articles/article_161.shtml Read More