Specialty Medical Chemicals
Special Medical Chemicals is company that has uniquely cornered a niche market in the pharmaceutical industry. The company experienced rapid growth, but has now plateaued. Carl Burke, the newly elected CEO, has been given the task of reigniting the growth engine of the company without undoing the accomplishments of his predecessor. For the first few months, Carl spends time in the field trying to understand the business, its people, and how the organization works. After an unsuccessful attempt to create a “Leadership Team” similar to his former company, Carl decides to hire an outside consultant, Laura Burke, to independently assess the ...view middle of the document...
Carl’s initial approach to lead his team has proven unsuccessful. Carl isn’t being strong and dominant enough when needed. Carl’s former position within a highly functioning team was ideal. However, getting his new team to that level will require different tactics. To achieve his “Leadership Team”, he needs to practice situational leadership. From the beginning, Carl was very democratic, having little impact on the climate of the executive team. The results were meetings that produced mediocre ideas, consensus remained elusive, and each person became entrenched in their own functional silos. Although occasionally there is a need to be democratic and affiliative; Carl should heavily rely on an authoritative approach in the beginning that mobilizes his people toward a vision of transformation.
Carl believes that the top executives within the current organizational structure need to be strategically realigned in order to achieve growth. Laura Wells concurs that broader jobs will allow Carl’s people to eventually behave as a “Leadership Team”. To do this the organizational structure should be redesigned according to Carl’s proposed organization structure that is illustrated in Exhibit 2. Specifically creating 3 general manager’s positions in the areas of pharmaceuticals, biotech and generics will allow for more focus and growth in those areas.
Carl should align his top performers into the positions for targeted growth. Michael Everett is an excellent candidate for a position as general manager. Michael is good at solving difficult problem situations and is very innovative. His resume reflects fast growth experience in product development. He ran into problems with his old CEO, probably because he was being controlled and managed improperly. Michael’s abilities would be well aligned in one of the general management positions that is targeted for new growth and creativity. Specifically generics, since he has prior experience with generic based companies. Another candidate for general manager in one of the two growth areas would be Roger Englehard. Roger has proven track record of leadership success, but needs to be challenged in order to stay on track. He would be aligned very well in taking on the task of growth in biotech, especially considering his former experience with biotech firms. Jack Francis could take the final general manager’s position that would entail maintaining the pharmaceuticals line of business that is already being managed well. Jack is more nurturing and cautious. He may not be the innovative force to create growth in new areas, however he has proven that he can maintain current operations.
Carl should also act fast in some house cleaning initiatives that would require getting rid of those in the management team that is not on board with the transformation or otherwise underperforming. David Rice is managing the areas of the organization that Carl is most concerned with. Customer Service,...