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Copy of Celeritas, Inc.: Leadership Challenges in a Fast-Growth Industry

Case Study Presentation for MAN 6266
by Tamanna Chawla on 25 March 2013

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Transcript of Copy of Celeritas, Inc.: Leadership Challenges in a Fast-Growth Industry

Slow growth
& losing market share Philip Boyer, President, CEO, and Co-Founder Celeritas Senior Vice Presidents Carla Reese, "heavyweight" organizational consultant Celeritas, Inc.:
Leadership Challenges in a Fast-Growth Industry I am the only one that makes decisions... I want to delegate
more, but my team can't see
the big picture! I want to focus on teamwork. This group
needs to understand that Celeritas's goals take precedents over divisional objectives Weekly Update
Meetings Boyer makes all decisions
No Teamwork or communication Doubt Boyer's Capabilities Dave Lloyd, VP sales THE ISSUES
Lack of trust and communication among senior executives
Inconsistent decision making and follow through
Confusion about company goals and priorities
Poor coordination among business functions and units THE PLAN
Discuss each issue, and decide together how to move forward with each one. 21 Celeritas Unit Vice Presidents 2011 2009 Senior Leadership Off-Site Failed attempt at organizational improvement SVP Interviews with Carla Reese Day 1: Thursday
Bickering over sales during every discussion except goals and priorities Day 2: Friday
Focus on strategic plan- both bickering and interest in the process decrease The next Tuesday:
emergency Vice President meeting called by Boyer Results after 6 weeks
VP Backlash
Lloyd fired What didn’t work?

6 Celeratis employees vs 1,000+

No internal feedback from department

No bonding or personal connection What is missing? Yes
SVPs voiced their opinions
Brought attention to employees who did not fit the company culture
No
Remaining employees Does the team-building meeting make progress towards solving Celeratis’ problems? Retraining

Self assessment techniques & reassigning job tasks

Hiring additional CEOs Is there an alternative? What worked well?
One-on-one time
90 minutes with each SVP
Addressed 4 main issues
Lack of trust and communication among senior executives
Inconsistent decision making and follow-through
Confusion about company goals and priorities
Poor coordination among business functions and units
Brought the 5 SVPs and CEO together
Discussed management issues versus stats and revenue goals How effective was the team-building at Celeratis? Yes, with some necessary adjustments! Is team-building the right strategy in this situation? 3. Confusion about company goals and priorities
Each SVP has a different interpretation of company objectives
Goals need to be communicated to all members of the corporation and followed by the vice presidents What and/or who is the problem with the top team? 2. Inconsistent decision making and follow-through
Communicated in one-on-one meeting with Boyer
Boyer makes decisions and tells the rest of the SVPs
Boyer changes decisions after speaking with others
Resolution
Weekly executive team meetings should be used effectively to discuss important issues What and/or who is the problem with the top team? Do you see any organizational (vs people) issues contributing to the problems? 4. Poor coordination among business functions and units
Little to no interaction between divisions
Conversation was centered around Lloyd’s personality and management style What and/or who is the problem with the top team? 1. Lack of trust and communication
The different backgrounds and styles of interacting
Personalities not meshing well
Problems communicating with Dave Lloyd, Sales and Marketing SVP What and/or who is the problem with the top team? What and/or who is the problem with the top team? It was Informative:
-Many of the 21 VPs expressed similar concerns as the 5 SVPs
-Shows that all 4 key issues are fundamental problems for the company
“why weren’t we consulted?”
“…meeting that we weren’t even a part of”
“…we are never involved in strategic planning” How would you describe the Vice Presidents’ meeting? The Most cooperation came during the dinner meeting between the 5 SVPs and the CEO!

….without the consultant, Carla Reese

Less tension
Able to “get things out in the open”

CEO: “One of the best moves I’ve ever made” Highly doubtful, but time will tell

Issue 4: Poor coordination among Divisions
“I’m not getting the market information that I need for R&D”

What do customers what you to make?

Ousting Lloyd did not address the fundamental issues causing these types of problems for the company Was this the solution? The consultant failed
Sales continued to fall
Blame fell on the SVP of marketing, Dave Lloyd

“His peers had no confidence in his ability…”

Lloyd was let go… What went wrong? Simply put, No!
She effectively solicited the views and opinions of top management

Again, she failed to identify potential concerns by soliciting views of lower-level employees

Only after the semi-successful meeting with upper-management was it learned that the rest of the organization suffered similar problems So, was the consultant effective? Identified 4 Key Issues
Lack of trust and communication
Inconsistent decision making & follow-through
Confusion about company goals & priorities
Poor coordination How effective was consultant Carla Reese? Boyer even failed to communicate prior to initiating organizational change! 1. Lack of strategic leadership

2. Overlooked environmental scanning

3. Weak strategy formulation

4. Failure to articulate a compelling reason for change Problems Plaguing Celeritas Multiple management issues with communication as the root problem NO… Is Celeritas an effective company? What should Boyer do now? Below the Surface...
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