Leadership at Kluster

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[Leadership at kluster]|
Kluster needs to know if, and when the founder Ben Kaufman should resume leadership of the company. Team3 Innovations has provided a full analysis and a recommendation.|

Executive Summary

Kluster needs to choose a leader who can provide them with the vision to make good decisions and the maturity to attract investment capital. The company needs to know if, and when the founder Ben Kaufman should resume leadership of the company. Kluster needs a CEO who has the expertise to know the value of ideas; which ones are profitable and which ones are not. It is critical to the success of the firm to have a leader who can separate the company from competitors by knowing how to identify opportunities and when to act. It also needs to limit the cost of its leadership search and maximize the potential for outside investment. These are the financial considerations that are critical to the success of this firm. After considering all of the relevant analyses, Team3 Innovations recommends that Kluster install Andres Arango as CEO and make Kaufman the Head of Design. Meanwhile the HR department should create a system for evaluating and identify the potential leaders within the Kluster and install a system for gathering customer and employee feedback so that Kluster’s leaders can make evidence-based decisions. The promotion of Arango will cost the difference between his current salary and that of the CEO’s salary. At Team3 Innovations we understand the value of choosing a leader who can motivate employees to produce excellent results and inspire confidence from investors and consumers. After a lengthy analysis of Kluster’s position we are confident that our recommendation is congruent with its objectives and that by implementing this strategy the company can continue to succeed.

Problem Statement:
Kluster needs to choose a leader who can provide them with the vision to make good decisions and the maturity to attract investment capital. The company needs to know if, and when the founder Ben Kaufman should resume leadership of the company. Critical Success Factors:

Like all businesses, Kluster has budgetary demands; the outcome of this exercise must be financially sound. Usually, cost leadership revolves around a firm’s ability to limit the use of tangible resources while maintaining or improving its level of production. In this case, Kluster needs to limit the cost of its leadership search and maximize the potential for outside investment. These are the financial considerations that are critical to the success of this firm. At the same time, because Kluster operates in a highly-competitive concept brokerage market, the company needs to have a leader who is a visionary. It is a company that uses ideas from external contributors to influence new products and marketing strategies. Because of this, leader differentiation is paramount to the success of the company. In order to distinguish themselves from other firms in the field, Kluster needs a CEO who has the expertise to know the value of ideas; which ones are profitable and which ones are not. It is critical to the success of the firm to have a leader who can separate the company from competitors by knowing how to identify opportunities and when to act. Analysis:

We have examined a number of considerations that Kluster should take into account before choosing a leader. Finance
The firm’s existence relies heavily on its ability to attract outside investment. In order for the company to expand, it will need to present it as a stable enterprise with experienced leadership. When the CEO, Ben Kaufman demoted himself, he cited the need for “good management in order to get venture capital and make sales”. He “realized that other people just saw a teenage kid running amok with other people’s money”. Even though Mr. Kaufman has the confidence to meet with high level executives, their perception of his ability may negatively impact his ability to garner...
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