Term Paper on "Leadership Change"

Quoted Instructions for "Leadership Change" Assignment:

Individual Assignment: Options for Implementing a Leadership Change

Imagine your team members are siblings of the late Don Ruiz. Everyone has a different opinion about the Gene One leadership and how that leadership must change to implement a successful initial public offering.

Select leadership structure and styles with the team*****s end vision for Gene One.

GENE ONE-COMPANY OVERVIEW

In 1996, Gene One entered the biotech industry with groundbreaking gene technology that eradicated disease in tomatoes and potatoes. As a result, farmers no longer needed to use pesticides when growing these plants and consumers were pleased to buy homegrown products untainted by chemicals. The win-win situation helped Gene One grow to a $400 million company in just eight short years.

Accordingly, sharply rising stock indices on Wall Street indicate a growing interest in biotechnology. And leadership changes at the Food and Drug Administration are further enhancing investor confidence in the industry. At Gene One, the CEO and his Board believe that in order to keep pace with demand and realize conservative annual growth targets of 40 percent, Gene One is going to have to go public within the next three years. The time seems right, but the company needs IPO capital for new development, advertisement, and marketing if it is to remain successful.

Working toward a 36-month maximum deadline, the CEO and his Board have devised a clear strategy with the help of key members in the investment community. It is their hope that implementing it will help Gene One realize its growth targets, establish the company as a strong competitor and show Wall Street that Gene One has the leadership and organizational capabilities to succeed as a public entity.

THE PLAYERS

Don Ruiz, Chief Executive Officer: At age 37, Don became a young entrepreneur when he recruited four colleagues to make his brainchild -- Gene One -- a reality. As CEO and creative force behind Gene One, Don not only brought his extensive technology and industry knowledge to the company, but a significant part of the $2 million dollar start-up investment as well. Now, as a $400 million company, Gene One is positioned to realize growth targets that will make it an industry leader. Don is excited about the company*****'s IPO opportunity, and has engaged his leadership team, as well as an external consulting firm, to develop a sound strategy to ensure that Gene One not only serves the public but leaves a legacy of his work.

***** Houghton, Chief Financial Officer: Part of the start-up five, ***** invested everything she had into Gene One and, as a result, feels a strong sense of ownership and emotional attachment to the company. Don and ***** share a solid working relationship and friendship; in fact, with their spouses, they socialize often. Reserved and quiet, ***** is often mistaken for a pushover when in truth, she is passionate about issues that put the company at risk and has been very successful in securing funding from government and private investors. At 35, ***** had never before directed Finance in a large corporation or been involved in an IPO; nonetheless, she has earned a credible reputation with the leadership team, the Board, the FDA leadership and the government.

Charles Jones, Marketing Officer: Two years after Gene One*****'s start-up, Don recruited 35-year-old Charles because of his reputation for *****"smart*****" risk-taking and his biotechnology connections. Don saw him as the perfect person to develop and implement Gene One marketing strategy. Self-confident and moral, Charles easily garners trust for himself and the company. He has no personal investment in Gene One, but his professional pride motivates him to work hard at defining products that will sell, and creating a Gene One brand image that is synonymous with technology innovation, future of America, potential for major economic returns, etc. But Charles likes to focus on the big picture rather than the details, which means his efforts to design and implement a marketing infrastructure have yet to be completed.

Teri Robertson, Chief Technology Officer: Part of the original start-up team, and Don*****'s niece, 37-year-old Teri has a world-renowned reputation; it was her doctoral research that led to the genetic breakthrough discovery that Gene One*****'s success is built on, and she holds a number of patents pertaining to it. A scientist at heart, Teri is highly competent with a passion and talent for technology research and development. Though Charles involves her in marketing to a degree, he recognizes where her talents lie and, most often, leaves her to them. That suits Teri just fine; Gene One has become her life.

Greg Thoman, Chief Human Resources Officer: Six years ago, at age 30, Greg came to Gene One after an eight-year stint at a Human Resources Consulting company. Known for his *****"can do*****" attitude, Greg has staffed Gene One with talented researchers and innovative product developers. In the past two years, Gene One*****'s massive growth has meant thousands of new hires, and Greg has had his hands full with staffing. As a result, he hasn*****'t had time to focus on developing future talent, or creating a corporate culture conducive to growing the business.

John Kirby, Executive Director Board Member: CEO of Nuke, Inc., a nuclear medicine company, John has spent more than thirty years in the science and technology industry. His expertise has made him an influential member of the industry community and he knows it -- when he wants something, he doesn*****'t take no for an answer.

Susan Wells, Executive Board Member: Serving her second term, 62-year-old Wells is a well-respected Board member with myriad connections in the media and political communities. She*****'s very thorough and logical, and has been known to reverse decisions at the eleventh hour based on new data received from her vast network of influential friends.

Implementing a Leadership Change

Leadership change at any organization can cause an organization to experience deeper changes and shifts within an organization. Many times new leadership comes into an organization with a new plan as to how it will operate. This can cause employees to feel threatened and unsure about their security and position. More times than not, leaders do not take into consideration how important communication about the change is within the organization. They are quick to announce the change within and outside of the organization, but they tend to forget how that will affect the company as a whole.

Gene One is company that is exploding in growth. The leadership of Gene One believes it is time to take the company pubic. In doing so, several changes will have to take place within the organization. The senior leadership has several different views on what should happen. Some feel that this change is perfect timing, while others feel that going public would be a huge mistake because the company is not ready for it.

The CEO Don Ruiz realizes that the company has no experience with IOP*****s and that it is important that the company explore what needs to be done to take the company public. *****, the CFO thinks that taking the company public is a good idea; however, she questions if the timing is right and questions if the company will be able to overcome the bad publicity the industry has recently received. Teri is Dons niece and is the Chief Technology Officer. She seems somewhat resistant to change, however has valid points as to how the changes should be handled. Charles is the Marketing Officer who is ***** at marketing, however, needs help focusing on the details. These are just few of the players in this scenario.

Exploring the scenario of Gene One was interesting. Our team discussed how the change might affect the team and who might be good in leadership positions. As shown in the scenario, there was one employee who quit Gene One on the brink of the company going public. I think this is something that can be expected in this kind of change. There are those who embrace change and there are others who will resist it at every turn. The way to address this is to make sure that the organization is consistent in their communication with employees and to gather feedback and ideas from the employees. This will make them feel that they are part of the change and have a hand in making it happen. This should help alleviate some of the feelings of uncertainty within the organization.

Some of the specific things that can take place to bring Gene One public is to have ***** and Greg, the head of human resources look into the Sarbanes-Oxley Act. This act affects the company in many ways and is vital to the company going public. The Sarbanes-Oxley Act requires that the IPO board be comprised of independent directors and that at least one member have a financial background as a CPA or CFO. The financial implications are that the company will have to provide the SEC with financial statements for which they will be personally responsible. ***** feels that this will require an external accounting firm to make sure the numbers are correct. Greg noted from an HR perspective that the board and executives will need to be squeaky clean and that their compensation methods be above board. Greg also noted that it is important how the company handle breaking the news to the employees that the company is going public.

On the innovation front, Teri is ***** at coming up with new inventions, however, she is resistant to expanding and change. This could possibly inhibit innovation or it could save the company from costly mistakes. I think that with Teri*****s creativity and *****s financial know how, this company could reach a balance in creativity and financial responsibility. The two do clash from time to time, however together they seem to bring about productive discussions and new ideas.

I think that utilizing the situational style of leadership is the best in handling the changes within Gene One. Management and leadership will have to adapt to changes and relate to the shifting that will take place among the staffing and management. Keeping employees up to date and included in the changes will help alleviate tensions and reduce the loss of staff due to the changes.

The leadership style that we chose to implement within the change is the Situational Leadership style. This style incorporates several styles and tries to strike a balance in decision-making. Situational leadership focuses on that no one particular type of leadership is best for all situations. Instead, it focuses on that the situation dictates how leadership should manage change within a company. *****Hersey and Blanchard first introduced the concept of situational leadership in *****Life Cycle Theory of Leadership***** (Hersey & Blanchard, 1969). In their 25-year retrospective of Situational Leadership,® Blanchard, Zigarmi, and Nelson, (1993, p. 22) noted that the theory and its name were inspired by the *****changing leadership style needed by parents as a child grows from infancy through adolescence to adulthood.***** Gene One could be viewed in this way. The leadership acts as the parents and the company is the child. As the company grows and changes, so does the way in which the company is managed. Striking a balance between task and relationship behaviors is the best way to lead people and manage a company. *****The Situational Leadership Model is about being more effective as a leader. This involves matching your leader behaviors (behaviors you use when trying to influence someone else) with the performance needs of the individual or group that you work with. It is about adapting the directive and supportive behaviors you use to match the readiness of others to perform specific tasks or functions. The model is simple, it works, and achieves results.***** Gene One needs effective leaders and supportive behaviors in order to implement the changes needed to go public.

The end-vision that is best suited for Gene One is as follows: Gene One*****'s end-vision is to create new and better produce varieties that can change the lives of people around the world. Our vision is to strive to create new and innovative technologies that will bring healthy, fresh and affordable produce to the world. Gene One strives also to make contributions to their stakeholders and to society.

This end-vision shows that the company is committed to their stakeholders and to what is best for society. This statement will hopefully strike a balance is the way the public reacts to Gene One going public. The company will have to be committed to their stakeholders financially, this is something that every public company should be committed to, however, Gene One must also appeal to the public*****s interests and what is best for the world as a whole.