Implementing_Change

Running Head: Options for Implementing a Leadership Change Options for Implementing a Leadership Change Casey Smith University of Phoenix Online October 31, 2009 Dr. Joe Cotter Options for Implementing a Leadership Change Gene One is a successful leader in the field of Bio-Technology. Under the guidance of CEO Don Ruiz, has managed to grow the firm from a small $2 million upstart to a company that has $400 million in sales a year (University of Phoenix, 2009). Ever looking to the future, Don was attempting to take Gene One from a privately held company, and expand into a publicly traded company in three years (University of Phoenix, 2009). Don was not able to see his vision through, and recently passed away. Gene One now faces a critical point in its development. Already a successful firm, Gene One must continue down the path that will lead to an IPO offering, albeit with a different leadership team, and a transformed organization that has the infra structure to complete the journey. Effective leadership involves clarifying the end goal of the organization, building a solid team to work with, implementing a successful framework to grow from, adapting to challenges, and developing a shared vision for future success (Allio, 2009). Gene One now faces the task of implementing a leadership change that will guide the company to success. Options for Implementing a Leadership Change Don Ruiz was the leading force behind Gene One. As one of the original start-up members, Don’s influence was evident throughout the organization. The gap that is left in the CEO role is not unique to Gene One; this is a problem that many companies in America are battling with (McNamara, Watson, & Wittmeyer, 2009). Many large scale public companies have effective leadership succession programs, smaller or privately held companies do not (McNamara, Watson, & Wittmeyer, 2009). The problems from the loss of a CEO are compounded in smaller startup companies, as the methods for building best practices within the business are lost, along with the control over the firm that is centralized in the CEO position (McNamara, Watson, & Wittmeyer, 2009). Therefore, changes in leadership at small firms have a greater risk attached to them; there is less infrastructure support provided to support the loss of such an asset as a CEO. A CEO is the center point of power within the organization, a focal point for a firm’s culture, the leader who manages the vision of the company that inspire the employees (Giberson, Dickson, & Randall, 2009). At Gene One, with the departure of Don Ruiz, the vacant role of CEO now needs to be filled with a person who can develop a strategy for moving toward an IPO, align the organizational structure with the strategy, and merge the culture of the organization with the vision that has made Gene One successful. In a review of search firms, 63% of firms admitted that their current CEO did not come from within the company (Giberson, Dickson, & Randall, 2009). In the case of Gene One, the company is still young, and operates like an entrepreneurial organization. Power and decision making are focused at the top, and as the company expands, a tendency toward bureaucracy pulls at the company, the expanding business becomes complex and non-conducive to the power structure (Mintzberg, Lampel, Quinn, & Goshal, 2003). A conclusion can be identified that Gene One is moving toward a more complex organization with less centrally focused power, therefore the next CEO should have talents conducive to this change, be process oriented, and perform well in times of dynamic change, as Gene One is experiencing on two fronts. Team Analysis of Gene One Leadership Team Gene One operates from a hierarchy of power that is typical of many entrepreneurial firms; the leaders are often those who have invested the most in the firm since the start up (Mintzberg, Lampel, Quinn, & Goshal, 2003). Don Ruiz would be classified as a CEO with a relationship oriented leadership style (University of Phoenix, 2009). Don had personal relationships with many of the current executive staff as well as the board. The leadership style Don exhibited was congruent with this behavior. The rest of the executive team are all critical members of the leadership team. Whereas each of them possesses valuable strengths, the transition to a publicly funded company will mandate the expansion of their support network to supplement their weaknesses (Mintzberg, Lampel, Quinn, & Goshal, 2003). Teri, the CTO, whereas not only being family to Don, is a very driven team member who brings considerable expertise and positional power to the firm. Michelle is a widely respected for her financial savvy within the company, and the government. Charles brings a large amount of experience within the relatively new field to the marketing aspect of the firm, and Greg has a proven track record of recruiting top talent. Combined, the team operates very well as proven by the track record of the company, and by reports in the media about their leadership abilities (University of Phoenix, 2009). However, in growing from an entrepreneurial firm to a large corporation, a crucial emphasis will be on Greg and Michelle. Greg is faced with recruiting and hiring a management team that will not only begin to develop a corporate structure for Gene One, but also allow Greg to focus on developing a program for current talent. Additionally, with the influx of new personnel, Greg will need to develop a program promoting the companies culture. Michelle will require the support of a finance department not just for the SOX regulation, but to handle the expanded workload of Charles’s efforts in marketing, with new products and accounts. The additional resource brought in cannot only help accomplish the increase task load; they may act as change agents, as the new hires are being brought in at a time of dynamic flux in the organization (Robbins & Judge, 2007). Leadership Strategy, Structure and Styles, and End Vision The end vision for Gene One that was established by Don Ruiz was shared by the executive team and the board. Build on current success, and continue through marketing, research, and the IPO to become the recognized leader in the field of bio-tech (University of Phoenix, 2009). The team has a unified vision, and with a creative strategy, an appropriate corporate structure, and motivated leadership, the vision can be realized (Khadem, 2008). Future leadership strategy for Gene One will focus on the transition from an entrepreneurial company, to that of a large corporation with a structure that is aligned with its strategy. A new CEO who is relationship oriented like Don Ruiz is feasible, they will need to surround themselves with newer team members who are very task oriented to accomplish the restructuring for success that is needed. Aligning structure with strategy will create a synergistic effect on the work efforts (Khadem, 2008). The change in the leadership at Gene One is not the only change issue that is important. The ability of the new leader to plan effectively and sell a change management plan to the employees is critical. Already, there has been staff who have resigned over the new direction the company will take. One major dilemma for staff when facing change in the workplace is knowledge (Yukl, 2006). Effective change in any organization requires employee buy in to be successful. The early dissemination of information to employees of how the changes will impact their routine at work is essential to mitigating possible human capital losses due to dis-information. Therefore, the leadership team must strategize to be very involved in engaging employees, and addressing concerns when feasible. This strategy of interaction can be beneficial for many reasons. Not only will the management be able to understand the stress on the staff of the change, but also identify change agents who can assist with promoting the change. These grassroots employees should be readily found in Gene One, many entrepreneurial companies operate organically, with centralized power and employees working in a less structured environment (Yukl, 2006). Through communication, and alignment with the shared vision, Gene One can progress through the difficult changes ahead of the IPO, and become an even stronger company. Summary Gene One is at the verge of becoming a large, industry leading organization. With a new leader at the helm, and the solid support of an already effective executive team, the implementation of a clearly defined strategy and vision will drive Gene One through their IPO, and on to success. The vision of founder Don Ruiz is already well on it’s way. References Allio, R. (2009). Leadership-the five big ideas. Strategy and Leadership, 37(2), 4. Retrieved October 31, 2009, from ProQuest database. Giberson, T., Dickson, M., & Randall, K. (2009) Leadership and organizational culture: linking CEO values to organizational culture. Journal of Business and Psychology, 24(2), 123-137. Retrieved October 31, 2009, from ProQuest database. Khadem, R. (2008). Alignment and follow up: steps to strategy execution. The Journal of Business Strategy, 29(6), 29-35. Retrieved October 31, 2009, fromProQuest database. McNamara, K., Watson, J., & Wittmeyer, C. (2009) The utilization of a succession plan to effectively change leadership and ownership in a small business. Journal of American Academy of Business, Cambridge, 15(1), 31-43. Retrieved October 31, 2009, from ProQuest database. Mintzberg, H., Lampel, J., Quinn, J. B., & Ghoshal, S. (2003). The strategy process: Concepts, contexts, cases (4th ed.). Upper Saddle River, NJ: Prentice Hall. Robbins, S. P., & Judge, T. A. (2007). Organizational behavior (12th ed.). Upper Saddle River, NJ: Pearson Education. Yukl, G. (2006). Leadership in organizations (6th ed.). Upper Saddle River, NJ: Pearson Education. University of Phoenix. (2009). Week five overview. Retrieved October 31, 2009, from University of Phoenix, Week Five, Course Material web site. LDR/531-Organizational Leadership-Interdisciplinary Capstone Course Web site. University