Cisco Leadership: Analysis

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  • Topic: Volvo, Leadership, Mack Trucks
  • Pages : 13 (4217 words )
  • Download(s) : 47
  • Published : May 16, 2011
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Table of Contents

EXECUTIVE SUMMARY4
INTRODUCTION5
BACKGROUND5
ANALYSIS OF LEADERSHIP STYLE6
ANALYSIS OF ISSUES7
STEP ONE – ACTING WITH URGENCY8
STEP TWO – DEVELOP THE GUIDING COALITION8
STEP THREE - DEVELOP A CHANGE VISION8
STEP FOUR – COMMUNICATION OF THE VISION BUY-IN9
STEP FIVE – EMPOWER BROAD-BASED ACTION10
STEP SIX – GENERATE SHORT-TERM WINS10
STEP SEVEN – DON’T LET UP11
STEP EIGHT – MAKE CHANGE STICK11
CONCLUSION13
RECOMMENDATIONS14
REFERENCES14

Executive Summary

The purpose of this report is to review and critique the Australian Integration of the Volvo and Mack’s companies. The leadership response to such a change is evaluated and the effectiveness is critiqued. The value of conceptual frameworks and models are analysed and recommendations are given. In early 2005, the Volvo Trucks and Mack Trucks (VCVA) Board met to discuss the issues that were hampering the successful merger of both companies. The Board identified that the issues related to: •Low cost synergies

Slow progress on certain change related issues
Issues with the integration of the two brands within the retail division The leadership style of Peter Hertinge is analysed using models such as Fiedler’s Contingency Theory of Leadership, house’s path-goal theory of leadership and leadership mystique which find Peter as a task oriented, directive and a visionary respectively. To analyse the situation, Kotter’s framework is used. The framework points out to the following key issues- •Poor communication

Actions were taken too quickly
Different ways of working between the two brands
Truck sales division located too far away
Mack staff struggled with the rigid structure of Volvo
It is recommended that given the limited tenure of Peter at the time of the integration, the communication should be directed from a trusted Mack manager with an existing relationship with the employees. Efforts should be made to influence naysayers who were resisting the change. The new VCVA board should undertake a marketing campaign of sorts, to excite and invigorate the next phase of the integration. This would signal the end of the siloed approach of the two organisations and the start of “one great company, two great brands.”

Introduction

A leader, as defined by Robbins et al (2009), “is someone who can influence others and who has managerial authority”. In its essence, leadership in an organisational role involves “(1) establishing a clear vision, (2) sharing that vision with others so that they will follow willingly, (3) providing the information, knowledge, and methods to realize that vision, and (4) coordinating and balancing the conflicting interests of all members or stakeholders” (BusinessDictionary, 2011).

Globalisation as defined by the Business Dictionary is the “worldwide movement toward economic, financial, trade and communications integration.” It refers to the free transfer of capital, goods and services across national boundaries. In effect of this, companies have realised that in order to maximise their profits, they need to cross their national boundaries. One of the most effective ways to accomplish this is to merge/integrate with another company. In doing this, the market is shared between both companies, technologies are transferred, business plans, structures and strategy are enveloped to form one, and the financial capability of the company is drastically improved. This may be a very effective strategy, but it does have its pitfalls especially if it is not implemented with care. The purpose of this report is to review and critique the Australian Integration of the Volvo and Mack’s companies. This report starts off with the analysis of the leadership style of Peter Hertinge who is not only the CEO of VCVA but also the change agent driving this integration; several theories are used to identify this. Following this, the key issues of the leadership style are speculated using...
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