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Gene one - Implementing Leadership Change

Essay by   •  June 24, 2013  •  Case Study  •  1,618 Words (7 Pages)  •  1,525 Views

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Implementing Leadership Change

Gene One is a biotech organization that developed gene technology to eliminate diseases in tomatoes and potatoes. As a result, farmers removed pesticides from their regiment when harvesting plants. Research discovered, consumers prefer homegrown products untainted by chemicals. This strategic alignment and unique opportunity allowed Gene One to grow to a $400 million company in just eight years. Rapid growth has management considering an initial public offering. Converting to a Publically Traded Organization (PTO) however will expose Gene One to increased regulation, public scrutiny, investor expectations, profit margins and a plethora of other business risks. A precise business strategy proposal has been developed for Gene One leadership to implement change in an innovative organization.

Change in Culture

The culture of an organization is the backbone of the organization. Culture represents full aspects of the business. By understanding the culture, managers can illustrate effectively any form of change and receive the optimum results from the employees. The perspectives of change are never understood by every individual. The reality is that because each person has developed his or her own particular cultures, seeing new ideas that do not fit in his or her comfort zones threatens the individual. "While many organizations try new approaches that fail, others design new approaches that shape the competitive environment going forward" (Mohrman & Edward, 2012, p. 42). The manager must take special care to realize these particulars and adjustments should be created to accommodate during the change.

Changes in culture have various resistances and stresses, and the processes regarding the changes in the organization must be carefully planned and implemented. According to Tax (1951), "a program to change a culture selectively presents serious difficulties" (p. 317). Hierarchical arrangements and leadership behavior are two of the most important features when planning for changes. Among the other planning aspects of organizational change, the manager must comprehend the reason for the change and its timeline from inception to reality.

Reason for Change

Gene One's CEO, Don Ruiz, is looking to implement change with the organization in regard to going public within three years. The leadership changes at the Food and Drug Administration and confidence in Gene One's ability to show financial growth has boosted the interest of investors at every level. This interest provides a platform for Gene One to advance as an industry leader.

Understanding the Plan

It is the goal of Gene One to become a leaders in the biotech industry. To become a leader, a few things must occur.

1. Go public within three years.

2. Secure IPO capital for development.

3. Create advertising and marketing opportunities.

4. Establish the company as a strong competitor.

5. Reach target growth of 40%

By establishing this list of objectives, the leadership at Gene One can visualize the goals, ask questions for clarity, and implement procedures to fulfill the intents. "In a rapidly changing environment, the knowledge that is most useful to organizations is knowledge that helps them change and adapt to perform effectively" (Mohrman & Edward, 2012, p. 41). Part of the responsibility of the leadership team is to understand the tasks and be able to regurgitate the information to the subordinates under his or her management.

Hierarchy of Leadership

Gene One has established a group of individuals for the board that govern the organization. These persons are responsible for performances within his or her areas of obligation. Current senior leadership structure suggests a horizontal platform created for functions of labor. These functions include the chief financial officer (CFO) Michelle Houghton, marketing Officer Charles Jones, chief technology officer Teri Robertson, and chief human resources officer Greg Thomas. Additional members of the board include John Kirby, CEO of Nuke, Inc., and Susan Wells, a well-connected woman with ties to media and politics. Leaders of the executive team report to Don Ruiz, chief executive officer (CEO).

As an area of leadership is defined, the creation of chain of command should follow immediately. According to Yukl (2010), "A leader's authority usually includes the right to make particular types of decisions for the organization" (p. 152). Persons with legitimate power will act responsibly with the authority given from his or her position. "Higher-level managers usually have more authority than lower-level managers, and a manager's authority is usually much stronger in relation to subordinates than in relation to peers, superiors, or outsiders" (Yukl, 2010, p. 156).

Resistance to Change

"In as much as it is the nature of tradition to resist change, reactions to all kinds of occurrences are likely to be in traditional terms" (Turner, 1940, p. 580). Managers must understand that most individuals are reluctant to pursue new ventures without first presenting opposition. This presentation usually comes in the form of resistance or opposition to a proposal or request. Depending on the

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