Ldr 531 Week 5

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Implementing a Leadership Change
Team C: Leslie Drake, Lyle Schoeneck, Rinat Kravicas
University of Phoenix
LDR531 Organizational Leadership
Instructor: William Wider
October 28, 2010

Although employees are likely to express resistance to extreme changes in the organization, most companies are forced to go through corporate restructuring because of financial and environmental reasons (Robbins & Judge, 2007). Issuing initial public offerings (IPO) and becoming a public company is a significant change that may cause turmoil throughout the organization. Hellerman (2000) stated that the leadership should prepare the employees to the IPO move, as the risk of losing focus from the core business to satisfying the stockholders is often too big and can cause major changes in the organizational culture. Gene One is a biotechnology company based in Phoenix, Arizona. The company main business is agriculture development and research. The current ownership wants to meet the goal of 40% growth by raising funds from issuing public stocks (University of Phoenix Scenario, 2005). The key stakeholders have a variety of opinions in what changes must be made for a successful IPO. The paper will address how Gene One must adopt changes and address all stakeholders for an optimal solution. Stakeholders

The Current ownership and the Board of Directors
The late Don Ruiz was the former CEO who was responsible for setting the goal of 40% annual growth. Ruiz was excited about the IPO move, and saw the change as an opportunity to develop new strategies (University of Phoenix Scenario, 2005). Ruiz’s successor and siblings, together with the board of directors are strongly supporting the former CEO’s ideas, as both the board and the current ownership have a personal interest in the move. Both will gain a large sum of money if the IPO becomes a reality. The Chief Financial Officer (CFO)

Michelle Houghton, Gene One’s CFO is emotionally attached to Gene One, a personal friend of the CEO, and in favor of the IPO idea. Houghton believes that the company’s scientists can adapt to market demands and increase productivity by diverting the current research from agriculture to the medical field (University of Phoenix Scenario, 2005). The Chief Technology Officer (CTO) and the Research Staff

Teri Robertson, Gene One’s CTO is a family relative of the late Don Ruiz, the former CEO. Holding a doctoral degree, Robertson is a dedicated researcher and responsible for many major scientific breakthroughs in the company. In addition to the argument that Robertson had with the CFO during the leadership meeting, the company’s scientists’ are showing signs of disagreement with the intentional move, and one of the major researchers has already sent a letter of resignation (University of Phoenix Scenario, 2005). The Marketing Officer

Charles Jones, the marketing officer is not sure that going public is the best strategy for Gene One because of the commitment that the company needs to make to the investors, and the obligation to develop at least two new technologies within one year. Jones may not be far from the truth, as Robertson, the CTO has already expressed concerns that related to the management pushing company’s researchers (University of Phoenix Scenario, 2005). The Chief Human Resources Officer

Greg Thoman, the chief human resources officer brought a good argument during the leadership meeting. Prior to the IPO, Gene One should hire additional workforce to keep the corporate governance in compliance with the law, as required by the Sarbanes Oxley act. Thoman is concerned with the difficulties surrounding the mass hiring (University of Phoenix Scenario, 2005). The Sarbanes Oxley (SOX) act of 2002 was created by the United States government as a result of public deceptions like the Enron case (U.S. Security and Exchange Commission, 2010). According...
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