Implementing Leadership Change
Gene One is a biotechnology company that has had success with engineering foods that are disease free and grow at increased rates. Vegetables such as tomatoes and potatoes have been grown without the use of pesticides and other harmful chemicals. These breakthroughs have changed Gene One from a $2 million start-up company into a $400 million company on the verge of going public. The original members of Gene One are challenged with organizing the company and preparing it for an initial public offering (IPO) on Wall Street.
The IPO requires the company to make several changes to the structure of the company’s executive board, marketing strategy, ...view middle of the document...
Retaining Existing People in a Matrix Structure – Option One
Executives at Gene One found that while individual members of the management team have quality ideas when it came to moving the organization forward, they could not come to a consensus concerning how to move. Board members challenged the CEO to see the weaknesses of key management individuals and teased that the failure of the IPO would hinge on these weak members.
To maintain Gene One’s existing culture, education of the management team will prove vital. The Chief Financial Officer (CFO) will need guidance concerning Sarbanes Oxley Act (SOA) and Securities Exchange Commission (SEC) challenges. Board members with these skills will be hired to assist with these areas of concern, and to fill voids in the Executive Board with respect to the SOA. Stress of implementing these changes will challenge the CFO and she will need support from the CEO and other team members to keep her from feeling overwhelmed.
Engineering will continue to be the backbone of Gene One and the source of future financial gain. The Chief Technical Officer (CTO) is an award winning individual who does not like the idea of answering to Wall Street investors. With the previous success of the Gene One technical staff, the company will continue to benefit from a science first culture. The CEO must learn how to deal with the pressure of the investors and provide a buffer to keep the technical team out of the limelight. A science first culture can be nurtured by creating an organic structure in the technical department that emphasizes decentralization and a wide span of control. Gene One will become a matrix structured organization, “an organization structure that creates dual lines of authority and combines functional and product departmentalization” (Robbins & Judge, 2011, p. 497). The CTO will be encouraged to produce solutions that the company can profit from, but not pressured to create marketing solutions. Focus of the CTO on research and development will reduce the technical departments stress level and create a winning team.
Gene One’s marketing strategy will be very public and the main focus of the IPO. Investors want to see progress and the marketing department will take the new scientific discoveries and turn them into profits. The existing marketing management does not have the skills to establish a marketing plan for existing and future products. The CEO will hire new management with the skills to time release products and create the hype needed for a public company. All decisions will revolve around the current and future profitability. The current marketing manager will be reassigned to manage existing accounts and provide insight into how the company built its current status. This individual has several contacts and can direct launches of new product after the planning phase has been completed. The marketing department will require training to reduce the stress of this change...