Innosat is a Boston based public company that sells surgical equipments. Innosat started as a small manufacturing company of scalpels and other surgical equipments and gradually progressed to become world’s leading maker of prosthetic limbs and surgical implants. Most of its progress was achieved under the leadership of very passionate CEO Jack Donally. Jack Donally joined the team of Innosat as a sales person, and with a very aggressive sales techniques, he quickly managed to drive the company on the path of success. After successfully introducing multiple new innovative products, the company started to struggle. Since 1990 the company failed to give any new products and as a result of that there has been decrease in profits, loss of market share and rage among the shareholders on the ability of management to turn around the company. And now, with the death of Jack, Innosat is facing new challenges to sustain the company amidst the problems of poor past leadership, lack of communication, absence of motivation among the employees and unit heads. To add to the list there is an absence of good management structure to link the organization to the management style of new CEO Stephanie. Stephanie has been hired to replace Jack and with the expectations to do “innovative” work for the company both organically and inorganically. Let’s examine each of this issue in detail.
Assumptions for the case: Some assumptions for problem issue formulation are: 1) First, I will evaluate the issue within the organization. That is within the employees and their leaders. I have named these issues as internal issues. 2) Then, I will evaluate the issue that is present from the overall organization view. I will call it external issue. 3) Main issue for the organization is, how Stephanie will make her plan of action considering the stated consequences of internal and external issues.
Problem Issue Formulation:
1. Internal Issue: These issues are looked upon from a narrower perspective of examining the employees and leaders of Innosat. And their affect on the decision making capacity of Stephanie.
The first problem that draws our immediate attention is, why Stephanie, an outsider is hired to take the command of the company. Does the company have no one with enough experience and knowledge to bring in innovative thoughts? This question has led me to examine the characteristics of the Innosat’s current employees. At present, Innosat is facing problems of financial losses, poor reputation among the shareholders and has lost its competitive advantage. It needs to take actions that can help change its profile in the market and among the competitors. But there is no one from within the company who can take the command, why is it so? There are employees like Frank and Jim Pappas have been with the company for a long time and have worked closely with Jack.
The personal records of these employees have not shown any remarkable decision making. In fact because of Jack’s directive and authoritative style of leadership, most of the employees have lost their motivation to contribute for the company. Most of the employees have concentrated their major efforts on the results of their personal departments and have shown no interest in aligning their departmental goals with overall company goals. This lack of motivation among the employees will be the first and most difficult hurdle for the new leader, Stephanie.
Hence, increasing the motivation of the employees seems to be the immediate issue that needs attention.
Assumptions: I am assuming that:
1) Innovation does not necessarily means introducing new products. Main concerns for the company are to increase profits and change their image in the market/industry. 2) Frank, the production engineer and potential candidate for the next CEO position always followed Jack thoughts and hence was not considered of being able to bring anything new for the company. 3) The...