Master of Arts in Organizational Development and Leadership Comprehensive Examination

Organizational Development and Leadership Consult Inc. Case A

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ORGANIZATIONAL DEVELOPMENT AND LEADERSHIP COMPREHENSIVE EXAM

Master of Arts in Organizational Development and Leadership Comprehensive Examination

• Ethics — Acts in an ethical, legal, and professional manner according to the

current codes of ethics in the respective disciplines • Critical Thinking Skills — Demonstrates the ability to use critical thinking skills • Communication — Communicates effectively in written form and oral

presentation • Emotional Intelligence — Exhibits emotional intelligence • Lifelong Learning — Engages in the practice of lifelong learning • Diversity — Supports diversity and multicultural issues and recognizes their

impact

Specialization in Organizational Development and Leadership Learning Outcomes

Students in the Master of Arts in Organizational Development and Leadership will be able to:

1. Apply the methods and principles of psychological research in organizations; 2. Evaluate the impact of social and cultural diversity in organizations; 3. Assess organizations’ performance, structure, and development; 4. Analyze concepts and demonstrate skills that are fundamental to ethical

practice in Organizational Development and Leadership; 5. Demonstrate an understanding of the complexity of organizational systems

and functions as an effective change agent through evidence-based application of psychological research in organizations; and

6. Design appropriate organizational learning and development solutions based upon principles of human performance technology.

Organizational Development and Leadership Consult Inc. Case A

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Background

Consult Inc. is a 75-person consulting firm located in Denver, Colorado. Consult Inc. provides employment support resources for the hospitality and service industry, and it specializes in hiring and selection services. These services include development of interview questions, development and execution of cognitive ability and personality assessment, background checks, and development of realistic job previews. Consult Inc. also provides services to maintain and retain high-quality employees. These include conducting employee surveys, customer service training, 360-degree feedback assessments, and establishing performance management systems. In addition, Consult Inc. helps companies develop a unique vision and mission that can be integrated into the employee culture and will support a professional and positive work environment. Consult Inc.’s services aim to save and make companies money by reducing employee turnover and increasing customer loyalty. They also offer a variety of customized and “prepackaged” solutions to employment-related problems. Consult Inc. is not the only consulting company in the industry, but believes it sets itself apart from competitors by providing customized services and high-quality customer care through live, friendly consultants who are up-to-date on industry trends and shifts. Although Consult Inc.’s fee for services is slightly higher than the industry average, it has solid market share by maintaining satisfied clients. Consult Inc. began as a small, single-location venture with Harold Barton, a former human resources manager, at the helm. Barton discovered the need for an employment consulting company in the hospitality and service industry during a casual conversation with Joel Freedmen, his former college roommate. Freedmen had recently opened a small barbecue restaurant and was having difficulty attracting, identifying, and retaining reliable employees. Barton offered valuable advice that led to a partnership in which Barton assisted Freedmen in hiring and training his staff. The enterprise proved successful, so in 1985, Barton decided to quit his full-time job and incorporate the business under the name Consult Inc. He brought on his wife, Gloria, a former sales manager, as cofounder and hired a business development specialist as president. Freedmen’s restaurant eventually expanded to five locations, and his needs increased. He not only required help hiring reliable employees, but also needed to find a way to maintain a cohesive workplace culture in all of his locations. Barton and Consult Inc. expanded the company’s service portfolio by creating and implementing a vision for the desired culture. After the vision process, the company developed selection, development, and retention tools to keep the culture consistent and strong. Consult Inc.’s first client became incredibly profitable and quickly grew to more than 800 franchises in the United States and 12 countries. Such success allowed Consult Inc. to land three of the largest U.S.-based restaurant chains. By 2000, the company had virtually obtained the entire market share of the restaurant consulting industry, and it began to think about expansion beyond the restaurant industry.

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Disagreements among management stifled Consult Inc.’s efforts to expand, and, along with its competitors, the company nearly went under when the restaurant industry took a major hit during the economic downturn of 2008. All three of Consult Inc.’s largest clients downgraded their services, and one even temporarily suspended its contract. Consult Inc. is presently working to maintain its current dominance in the restaurant consulting market and establish strong clients in other areas of the hospitality and service industry, including hotels, cruise lines, insurance agencies, and banks. They also aim to preserve a cohesive culture within Consult Inc. so that employees can live the vision that they sell to clients.

The Players

Founders Harold Barton and Gloria Lees-Barton founded Consult Inc. in 1985. They both retired from full-time employment from the company 6 years ago and are now in their early 70s. After retirement, Harold suffered several personal setbacks, including the loss of both of his parents and a serious heart attack. Since the recession, he has not felt well enough to take an active interest in the company. However, Gloria, who had very little leadership experience prior to Consult Inc., has recently decided to come out of retirement and take an active role in running the business. President Steven Bittermen is white, in his mid-40s, and has worked for Consult Inc. for 14 years. Harold Barton greatly respected Bittermen’s vision and leadership abilities and personally chose him to take over the role of president when he retired. Bittermen is highly educated, with both a master’s degree in business administration and a PhD in management science from the MIT Sloan School of Management. He also has 5 years’ previous experience as vice president of business development for an information technology company in Colorado. Since taking over the presidency of Consult Inc., Bittermen has instilled a values-based culture within the company, using the weekly organizational meetings as a teaching opportunity. He believes in total transparency and shares the company’s financial information with all his staff. As a result of Bittermen’s policies, he has developed a very loyal team of employees. Recently, Bittermen was contacted by a recruiter from Franco’s, one of Consult Inc.’s largest and most successful clients. The recruiter tells Bittermen that the company’s board of directors are currently looking for an experienced leader to manage their North American operations. They have been extremely impressed with the work that Bittermen has done for them and would like him to consider working for Franco’s full-time. The position is in San Francisco, California, and the rate of pay is almost double what Bittermen is currently making – a significant increase even with cost-of-living adjustments. Bittermen feels he

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has learned as much as he can at Consult Inc. and is seriously considering accepting Franco’s offer. He has asked for some time to think about his options. The recruiter has told him that there is no immediate hurry to fill the position, as the current CEO is not retiring until next year. However, they would like a final decision within the next 6 months. Vice President of Research and Product Development Hannah Green has worked for Consult Inc. for 18 years. She started as a research coordinator and has worked her way up to vice president. A firm believer in learning on the job, Green began working at the company with only a high school education. She has since earned a BA in business management from the University of Denver, is working on a part-time master’s degree, and aspires to eventually become the company president. Hannah is white and 42 years old. Vice President of Information Technology (IT) Alex Flores has worked for Consult Inc. for less than 3 months. He is the former vice president of IT for one of the company’s biggest competitors and has been tasked with overhauling Consult Inc.’s IT systems to ensure that the company remains competitive within its field. This involves some major changes that require a lot of back-and-forth between the IT department, the customer service department, and the sales team. Alex is third-generation Hispanic on his father’s side and is 38 years old. Vice President of Consulting Services At 37, Marcus Thorton is the youngest vice president at Consult Inc. Thorton has worked in the hotel industry since his senior year of college and has extensive management experience. He was hired 3 years ago to help Consult Inc. break into the hotel management industry, and he has close ties with many of the company’s newer clients. Marcus’s family has lived in the Colorado area since the gold rush in the late 1850s.

The Situation

1. Since the Bartons retired, company president Steven Bittermen has put a huge

amount of effort into developing a values-based company culture. He began running an all-staff Thursday morning meeting. These weekly meetings follow a set structure: staff announcements are made, followed by a teachable moment focusing on one particular aspect of customer service or company values (see Artifact 1), and concluding with thank-you remarks. Throughout the meeting, the company’s weekly financial reports are clearly displayed on the board for all staff members to see. Most of the employees at Consult Inc. enjoy the weekly meetings and feel comfortable enough to share their opinions and ideas with the rest of the staff, regardless of rank or position.

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2. In 2011, after several years of absence, company founder Gloria Lees-Barton begins attending the weekly meetings. There is no announcement to acknowledge her presence, and the meetings continue to run as normal. Several of the employees are intimidated by her presence and clam up during the meetings, but most continue to voice their honest opinions about the company.

3. During one of the Thursday morning meetings, Ashley Bristow, a sales associate, suggests that the company consider expanding its services to cater to high-end bars and nightclubs. She reasons that the economy is starting to recover and the company should establish itself as the dominant recruitment consultant in the hospitality industry before it loses out to competitors. At the back of the meeting room, Gloria Lees-Barton snorts loudly and makes a disparaging comment. She then berates Ashley for talking nonsense and for taking up people’s valuable time. During the following two Thursday morning meetings, Gloria Lees-Barton interrupts several times to criticize people’s ideas and cut down the aspects of the meetings that she finds “irrelevant” (see Artifact 2). At one point during a meeting, Gloria becomes enraged that people laugh when company president Steven Bittermen makes a lighthearted comment about the financials having “slipped a bit.” The meeting descends into an awkward silence, and no one offers any further ideas or suggestions.

4. Hannah Green, Vice President of Research and Product Development, meets privately with Alex Flores, Vice President of Information Technology, and Marcus Thorton, Vice President of Consulting Services, to discuss the effect that Gloria Lees-Barton’s presence is having on the company. Green tells the others that a similar situation occurred shortly after the Bartons retired. Gloria Lees-Barton was bored at home and decided she wanted to play a more active role in the company. She came to a few meetings, but had no real leadership experience and was unable to make timely decisions, often disappearing for days at a time before returning with an answer. People assumed that she was taking advice from Harold Barton at home, so she had no real credibility at the company. Green advises Flores and Thorton to wait the situation out because Gloria will soon get bored and go away again. Neither of them appears to be particularly amenable to the idea (see Artifact 3).

5. After her conversation with Flores and Thorton, Green receives a forwarded email from the product development manager, who is a close friend as well as a co-worker. The email was sent to the product development manager from one of

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the product developers and reflects the feelings of many of the company’s employees (see Artifact 4).

6. Green prints out a copy of the email and takes it to Steven Bittermen’s office. Bittermen is on the phone with the accounting department, asking for the company’s financial records over the past 5 years (see Artifact 5). Green notices that Bittermen looks tired and stressed. She shows him the email from the product development manager and tells him that the situation has gone on long enough. If Lees-Barton continues to interfere with the daily running of the company, they will start to lose valuable employees. Bittermen tells her that Lees-Barton is technically still in charge of the company and that his hands are tied.

After the meeting with Green, Bittermen realizes that the situation with Gloria Lees- Barton is threatening the values-based culture at Consult Inc. He decides that it would be best to bring in a consultant who can evaluate the case from an outsider’s perspective. You are the consultant whom Bittermen has hired to look at the specifics of not only the situation with Lees-Barton, but also where the organizational shortcomings may be that allowed the situation to occur in the first place. You explain to Bittermen that the research will include a thorough evaluation of the company from top to bottom, including reporting structure, staff responsibilities, organizational artifacts, and other historical data.

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Artifact 1

Excerpt from Consult Inc.’s company vision statement:

Core Values

 Courage—being authentic, doing what we know is right, and learning from our failures

 Respect—treating others fairly, recognizing individual contributions, and being concerned for the well-being of others

 Engagement—always keeping the company’s values in mind, giving your best effort, and striving for personal and professional excellence

 Positivity—being fun to work with and be around  Clear direction—ensuring you know our vision and you

understand how your job contributes to the success of the company

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Artifact 2

CONSULT INC. WEEKLY MEETING – March 22, 2012 Managers Present: Cofounder Gloria Lees-Barton, President Steven Bitterman, Vice President of Research and Product Development Hannah Green, and Vice President of Information Technology Alex Flores Absent: Vice President of Consulting Marcus Thorton, excused Announcements: • Date for annual company picnic set for Sunday, June 24th • Customer Services Manager Tina Weaver absent on maternity leave as of April 29th Reports: • Finance report withheld per request of cofounder Gloria Lees-Barton • Management report given by Steven Bittermen Q&A: Gloria Lees-Barton offered to answer any questions related to the company’s finances. Q: What are the sales figures for this week? A: That’s confidential; I can’t give you any information about that. It’s ridiculous that non-managerial staff have had access to these figures in the past. Please don’t ask for them again. Q: What are the plans for revenue turnaround this quarter? A: I will let you know once I get a realistic idea from you that is not completely laughable. Teaching Moment: • Weekly focus related to customer service and importance of following completion of project with client call to ensure that client is happy with service provided by Consult Inc. Role play provided by Tina Weaver and Jeremy Garston. Thank You Comments: • Research Coordinator Janet Simmons thanked co-worker Brian Smith for his help on a particularly challenging project. • Administrative Assistant Simon Banks thanked Vice President of Research and

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Product Development Hannah Green for providing him with valuable research tips. • Customer Services Manager Tina Weaver thanked Information Technology Manager Janet Hobson for help in answering a customer’s technical query. Note: Thank-you announcements were curtailed after the third public announcement per request of Gloria Lees-Barton, who described the practice as “absurd.”

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Artifact 3

Conversation between Alex Flores and Marcus Thorton, Thursday, March 22, 2012

M Thorton: I don’t know about you, but I’m not planning on sticking around if Gloria’s here much longer.

A Flores: No, I’m going to give it about six months. It’s a shame, I really like most of the people here and Steven is a fantastic leader. You really should have been in the meeting this morning though, that woman is unbelievable. I can’t work for a company that doesn’t respect its employees.

M Thorton: Yeah, I heard she was obnoxious. I wouldn’t bet on Bittermen being here much longer either, he looks like he’s ready to snap.

A Flores: Have you looked elsewhere yet?

M Thorton: Not yet, I was going to give it another few months too. I get recruiters calling all the time though; I don’t think I’ll have any issues finding another job.

A Flores: Yeah, me neither. One of the advantages of working in IT. Maybe we’ll find somewhere that actually believes in sharing information with its employees.

M Thorton: Hah! That would be nice.

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Artifact 4

To: [email protected] From: [email protected] [mailto:[email protected]] Sent: Friday, March 23, 2012 3:28 PM Subject: FW: Gloria Lees-Barton Hey Hannah, Just got this from Dianne and thought you might be interested to read it. Seriously, it’s about time something was done about this. I’ve had two of my team out sick all week and they’ve never taken a single day off before you know who came back. Any thoughts on the matter? Claudia To: [email protected] From: [email protected] [mailto: [email protected]] Sent: Friday March 23, 2012 3:02 PM Subject: Gloria Lees-Barton Hey Claudia, Be thankful you were out yesterday, you missed the worst weekly meeting ever. Lees-Barton has taken down the financial chart in the boardroom and won’t give us any information about the sales figures any more. She practically bit poor Bridget’s head off when she tried to ask a question and then to cap it all off, she cut the thank you section short and told everyone who wanted to say something nice to put their hand down! There’s no way I’m ever speaking up in one of the weekly meetings while she’s there. Anyway, was just wondering if you have any information because it’s driving us all nuts. We don’t know what she wants, she’s totally unsupportive of any suggestions anyone makes, and she’s certainly not following the company’s vision. I wish Steven would say something to her, but he just sits in those meetings with his eyes down and lets her take over. I heard this isn’t the first time she’s come out of retirement and started interfering, but I really hope it’s the last. People are going to start quitting soon if she keeps this up. Dianne

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Artifact 5

To: [email protected] From: [email protected] [mailto: [email protected]] Sent: Friday March 23, 2012 4.15 PM Subject: Finance Spreadsheet 1 Attached File Steven, Please find the requested spreadsheet attached. Note that the dips in the 2006-2007 and 2008- 2009 fiscal periods were primarily because we lost the Ivy and Brushetta accounts, which made up almost a third of the company’s revenue. Despite these major setbacks, Consult Inc. retained 117 customers throughout the recession (each generating between $10k and $100k per annum) and kept its position as the dominant recruitment consultant in the restaurant industry. Our team went above and beyond during this difficult economic time, and we as a company have a lot to be proud of. Let me know if you need any more information. Nancy

Annual Revenues

$10.0

$8.5 $8.0

$6.5 $6.0

$5.5

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

2006 2007 2008 2009 2010 2011

Revenue (millions)

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Artifact 6

Consult Inc. Organizational Chart

Harold Barton, Founder

Steven Bittermen, President

Alex Flores, Vice President of Information Technology

Information Technology Manager

(2)

Network Administrator

Web Administrator Social Media Coordinator

System Administrator (2) Assistant Tech (3)

Josh Gioia, Vice President of Customer

Service

Customer Service Manager (2)

Senior Customer Service

Representative (3)

Customer Service Representative (5)

Nancy Lenski, Vice President of Accounting

Payroll Manager

Accounting Manager (2) Account Clerk (2)

Marcus Thorton, Vice President of

Consulting Services

Consulting Manager (2) Senior Consultant (4)

Consultant (10)

Administrative Assistant

Marking Manager Sales Associate (2)

Hannah Green, Vice President of Research

and Product Development

Research Manager Research Coordinator (2) Trend Analyst (2)

Product Development Manager

Product Developer (2)

Quality Control Coordinator

Administrative Assistant

Gloria Lees-Barton, Founder

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Questions

1. As you begin your work at Consult Inc., you decide to conduct an organizational

diagnosis to gather more information about the company and to formalize your understanding of the current situation. Identify the key research questions you have and the diagnostic methodologies you will use to answer these research questions. Explain how each methodology works, and why each methodology is appropriate, given the circumstances in this organization. Describe how you plan to implement each methodology and identify the types of information or data that each methodology will yield. Discuss how you will analyze the information and data you collect. Explain your rationale, referencing academic sources, as appropriate. (Learning Outcomes 1, 3, 5)

2. Given the current challenges facing Consult Inc., what type of leadership does the company need to be successful in the future? How would you determine this? What recommendations do you have to strengthen the leadership capacity of Consult Inc. and to modify appropriately the behavior of those managers who you believe need to modify behaviors? Describe specific steps the top leader (Steven Bittermen) can take to change the way the organization is managed in support of the future needs of the organization. Reference empirical studies to explain your thinking, and cite other academic sources, as appropriate. (Learning Outcomes 1, 3, 4, 5, 6)

3. Identify the specific steps of a structured change management plan that would

help Consult Inc. implement the most critical of its change management initiatives and explain what each step is intended to accomplish. Identify potential sources of individual and organizational resistance to successful change. Discuss the role of the leadership team in preparing the organization for change and in facilitating the transition. Identify specific actions the leadership team needs to take to prepare the organization for change. Explain your approach, referencing academic sources, as appropriate. (Learning Outcomes 1, 2, 3, 5, 6)

4. Lees-Barton and Bittermen seem to disagree on the state of the financials in terms of what they say about how the company is doing and its future outlook. Assess the organization’s performance and explain both Lees-Barton’s viewpoint as well as Bittermen’s perspective. What additional information would you like to have to make a more comprehensive assessment? Finally, provide recommendations for a new organizational structure and/or developmental opportunities for individuals that will serve to enhance the organization’s overall performance. (Learning Outcomes 1, 3, 5, 6)

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5. Discuss the concept of organizational values and ethics, and the role that formal

codes of values and ethics play in guiding organizational behavior. Describe the concerns, if any, you have about the values and ethics evident at Consult Inc. and identify how these concerns are associated with issues of social and cultural diversity. What specific recommendations would you give the leadership team to address these concerns? What advice or counsel would you give to specific members of the leadership team with respect to their personal behaviors? Reference empirical research studies to explain your rationale, and cite other academic sources, as appropriate. (Learning Outcomes 1, 2, 3, 4, 5, 6)

6. Define a healthy organizational culture and the relationship between a healthy culture and organizational productivity. Describe how emotional and psychological stressors can contribute to an unhealthy organizational culture and how it can affect employees’ productivity and their relationships with each other. What kinds of emotional and psychological stressors are apparent at Consult Inc.? Outline specific approaches that can be taken to reduce stress in this company and to counteract the effects of the unhealthy organizational culture. Explain your thinking, referencing academic sources. (Learning Outcomes 1, 3, 5, 6)

7. With Lees-Barton returning to an active role in the organization, a number of members of the leadership team might choose to leave the company. Often, when high-level and/or long-tenured employees leave a company, a great deal of institutional knowledge is lost. How might you design an organizational learning initiative to retain organizational knowledge and leverage this knowledge for the future? Reference academic sources in the areas of organizational learning and describe how to promote, facilitate, and reward collective learning. (Learning Outcomes 1, 3, 5, 6)

8. Explain why it is considered important for an organization to seek social and

cultural diversity and inclusion on its leadership team and within the ranks of its employees. Analyze the situation in this organization in terms of diversity and inclusion. What additional information would you need to collect about the organization? What specific changes should the organization make to strengthen diversity and inclusion within the company? Identify at least three specific actions you would recommend for members of the leadership team at Consult Inc. to help them move the organization forward in this area. Explain your point of view, referencing academic sources. (Learning Outcomes 1, 2, 3, 5, 6)