CEO speach

Premier Toys Company

Company Background

Premier Toys is a #l U.S. toy manufacturing company with a long history or producing exemplary toys. It has over 500 employees, who function in the form of an “autonomous work groups of approximately 15-20 members to set the production goals goal and design the toy products. Different groups are responsible for different products. Currently, a large portion of the toy products manufactured by the company are based on simple specifications, usually a sample or sketch, provided by the local buyers. Internally, the product design is largely a high effort, low efficiency manual process with drawings and continuous mockups. Increasingly, this process is proving unsatisfactory in meeting a growing demand for f customized, rather than standardized, products. As a result, Premier has experienced decreased customer satisfaction, falling revenues and lower profits. The company badly needs a more innovative design process and a more advanced manufacturing technology.

Available computer aided technology can easily be adapted to the design of toy products. There are many software packages available in the market, including 2D graphical design software packages such as CorelDraw, Photoshop, Auto CAD etc., and 3D design software packages such as Alias, Rhino, SolidWorks, Unigraphics etc. These systems have the capability to capture some or the whole product information into computer. Overall, the introduction of these innovative programs and advanced manufacturing technology would definitely help the company to strengthen its competitiveness. The design process is simply much easier with 3D CAD models and electronic mockups than with the use of manual drawings and continuous prototypes. Because 3D CAD has the potential to dramatically reduce the time to production, increase company versatility through the development of flexible toy designs, and enhance a 10-15% growth in revenues and profits the next five years, Premier has decided to adopt this technology and introduce it to the organization in the form of a large scale organizational change. However, designers and engineers may experience difficulty in mastering these advanced 3D design systems, especially, if they are beginners in the use of such software. Managers and employees may also experience substantial changes in virtually all aspects of their jobs including work flows, responsibilities, and working relationships with others. Moreover, due to the substantial increase in productivity per employee, a reduction of a significant portion of its workforce may be unavoidable. Many of the employees have exhibited a high level of anxiety and resentment to this organizational change.

Your Task and Assignment

As the CEO of this company, you need to prepare a brief speech to the entire employees in Premier Toys Company. The main content of the speech is to announce the company's decision to launch a full-scale adoption of the new technology (3D CAD) and to invite all employees at all levels to fully support and participate in this organization-wide radical change. Your speech should (1) have about 200 to 350 words in length, and (2) explicitly include and express the four elements of transformational leadership (charisma, inspirational motivation, intellectual stimulation, and individual consideration). You must type your speech, turn it in at the beginning of class, and also bring a second copy to use during your delivery. In your written speech, please also mark in parenthesis which part of your speech is based on which element of the transformational leadership. In addition, you must be prepared to verbally present the speech in front of the classmates.

CEO Speech Example

“A little more than two months ago, our 50 year old company, Premier Toys, announced its intent to adopt a 3D computer aided design (CAD) technology in order to enhance the flexibility and quality of our toy design process and reduce the amount of time required to move from design to production. Now, I recognize that those of us who have been members of this company for a long time have seen the introduction of prior change efforts so it is quite fair for you to ask: "How will THIS planned change be any different?”

First of all, this change isn't about redrawing lines on an organization chart. It's about adopting a new design technology that will prove stimulating for our employees to operate while also enhancing our flexibility and agility in designing and producing the toys that our customers, toy stores across the U.S, Canada and parts of Europe, demand from us. The new technology also will ensure that our toys, which are generally purchased for children between the ages of 3-13, are creative, high quality and safe. (Inspiration – vision) Overall then, this change is about instilling in ourselves a clear understanding of who we are, what we do, whom we serve, and what is at risk if we fail to change. (Charisma – values, prides, and missions)

I must tell you frankly that what is at risk is our future. Rapidly declining revenues and rising costs resulting from the work inefficiencies of our current design process, and the direct effect of both of these on profits, if left unchecked, will soon threaten the very survival of our company. (Intellectual stimulation) Yet, rest assured that we are most capable of overcoming these challenges if we commit to this change as an organization and work together to create the kind of future we all want and deserve. (Charisma – self-confidence / Inspiration – passion and optimism)

As a part of this transformation, we shall soon implement a state-of-the-art technology, 3D CAD, and reengineer our manufacturing, quality control, marketing and distribution processes around it. We shall set high standards for ourselves in the implementation of this change and in the conduct of our work, while also establishing and monitoring measures that will provide ongoing feedback to us about the effects of our change. By working together and helping one another solve the problems that will surely arise along the way, we shall demonstrate to our retail store customers and to our end-users, the children who own and enjoy our toys, that we create extraordinary value in exchange for the resources that they invest in our products and the trust they place in our company. (Inspiration – vision, passion and optimism / Individualized consideration) In conclusion, we at Premier have a rich history of producing high quality, innovative and safe toys for children. We are understandably proud of our long track record of excellence. (Charisma – self-confidence & Pride) In recent years, we have stumbled; but transformation is about creating the future rather than perfecting the past. (Intellectual stimulation) With our adoption of 3-D CAD and its accompanying changes, we shall enter a new era of excellence. We shall create a stronger organization that is more customer-driven, performance-based, and accountable for results. (Inspiration – vision) I am very excited and pleased to be a part of making this change happen and today, I invite, indeed I urge, our entire workforce from all divisions and levels to join me in this difficult but exhilarating task of creating a new and brighter future! Thank you!” (Inspiration – passion and optimism)