Leadership - Sybila Borjesson at Catek (a)

Leadership - Sybila Borjesson at Catek (A)

Problem:

Gradual break-down of the relationship between Pedro Lastra and Sybila Borjesson at Catek (A). Should Sybila continue working at Catek?

Theory: Trust in Boss-Subordinate relationships (DPON-12-E)

Case Timeline

* Mid Sep 2005 (Client-Provider relationship)

As a client, Lastra increased prices suddenly without informing Sybila - an unfair maneuver. When Sybila called him, he spoke in a unprofessional manner.Sybila handled the situation in a professional manner and finally accepted the price increase

* Oct/Nov 2005 (The initial Offer)

Lastra and Sybila regain some of their trust through regular interaction and then Lastra offers her the role of CEO.

Lastra disparages the Catek's exec committee instead of actually working to motivate the committee.

Sybila is blinded by ambition to become CEO.

* Nov/Dec 2005 (The actual offer)

Lastra initially had offered Sybila a 30% signon bonus but finally gave her 25% bonus.

* Dec 2005

Intial reports of employee disharmony at Catek - 5 people dismissed due to "mutiny"

Warehouse manager leaves for competitor

IT manager tells Sybila that he doubts she'll be here over 6 months. Lastra's wife had also commented the same

* Around Jan 2006

Lastra tries to renew part of the management but micro manages the process and doesn't give Sybila the executive decision making power she should possess. E.g. Sybila is unhappy with a candidate due to his lack of work experience but Lastra gives the candidate the benefit of the doubt saying that he will learn on the job.

Lastra's management/negotiation skills seem to be sub-par as he is unable to satisfy finance manager Daniel Cortes in a straightforward manner and ends up giving in after an argument.

* Sometime in 2006

Lastra reneges on lots of promises to Sybila - no meetings to discuss Sybila's initiatives in terms of professional development, compensation overhaul, management information system, warehouse investment etc despite approving the priorities

Pressure from increase in fixed costs and Lastra's pressure to increase revenues by 30% led to lot of employee attrition especially during Sybila's vacation!

Sybila and husband had arguments over work-life balance