Options for Implementing a Leadership Change
University of Phoenix - Online
September 28, 2009
In any organization, changing leadership can create more shifts and deeper changes within the company’s walls. Usually, a new change in leadership comes at a time when the organization needs a new vision, or plan in its operating systems. Going through any type of leadership change can create tension among the employees and make them also feel unsure and threatened with their job security and their position. Communication is key during these times of change, but many leaders do not take think about, or take into consideration how important relaying information about the change within the organization is. Unfortunately, leaders are quick to announce change surrounding the organization; however they seem to forget the impact that these changes will have on the business as a whole. The GeneOne Company
The GeneOne Company is booming by leaps and bounds. Leadership for GeneOne believes that it is time to get the word out about this company. Before the company can go public, some changes will need to happen within the structure of GeneOne. Senior leadership has a few different ideas on what should occur. A few members of the leadership team think that this is the perfect time to go public, while some feel that the company is not ready yet, and by going public would be a big mistake (GeneOne Scenario, 2009). Some of the players in this scenario are Don Ruis who is the Chief Executive Officer (CEO) of the GeneOne Company. He realizes that the organization does not have any experience with IOP’s. He knows that before the GeneOne Company goes public, it is vital to look into what is necessary for the company to go public. The Chief Financial Officer (CFO) is Michelle. She thinks that going public with the company is a great idea, but she wonders if the timing is right. She is questioning if the GeneOne Company will be able to prevail over recent bad publicity geared towards the industry. Don’s niece, Teri, is Chief Technology Officer (CTO) for GeneOne. Teri appears opposed to the change, though has justifiable ideas on how the changes should take place. The Marketing Officer is Charles. He is exceptional in marketing, but has troubles concentrating on details (GeneOne Scenario, 2009). Investigating the GeneOne scenario was intriguing. Team C brought up how this change could affect the team leaders and the question was raised on who would be better suited to lead the company. In the GeneOne scenario, one employee quit just before the company was planning to go public. This should not come as a surprise. People handle change differently. Some are able to embrace and accept change and there are those who resist change and will not accept anything new. To avoid this from happening, companies can make sure that communication is open, and consistent with their employees; and also asking for ideas and feedback from their workers so that they can feel a sense of ownership in the change. By doing this, it will make the employees feel like they are participating in the change. Having the employees kept informed and involved should lessen thoughts of insecurity within the company (GeneOne Scenario, 2009).
Changes Needed Prior to Going Public
There are specific items that can be done to make GeneOne ready to go public. Greg and Michelle are leads in the human resources department. They can take a look at the Sarbanes-Oxley Act (SOX Act). The SOX act is crucial to the organization going public. The act affects the Gene One company in countless ways. This act involves the IPO board, which consists of independent directors and at least one of the members of the IPO board has to have a CFO or CPA background. The GeneOne Company is to give the SEC financial documents which will be their responsibility. Michelle thinks that an...