The following 'one-minute' case studies are to be used in conjunction with the ideas, theories, and materials presented in class.

Leadership and Vision: Maintaining Core Values Whilst Introducing Needed Change

When Vaughan Beals and James Paterson took over Harley-Davidson (motorcycles) the two men came up with a plan to appeal to a new, upscale groups of customers. Reaching this sector required a multi-front approach. First, a special advertisin campaign was formulated that gave the Harley-Davidson name to products as diverse as cologne, wine coolers, and designer clothing. Stereo systems and intercoms wre built into Harley Davidson helmets and dealers were instructed to make their stores more inviting.

Customer involvement was key. Rallies and charity events were held, a regular newsletter was published, and a theme of togetherness was launched.

The most important change was a commitment to quality. The team knew that although clever ads had the ability to attract new customers, a good product was what kept them. Inspired by Japanese management techniques and the concept of teamwork, the company introduced a new engine along with new mountings to reduce vibration.

Yet throughout these improvements, the company never changed its motorcycles' tough, classic look and 'feel'. That, they knew, was the core product that separated Harley-Davidson motorcycles from those of its competitors. (1)

Leadership and Employee Involvement

The director of manufacturing at Tellab Inc., Grace Pastiak, uses a personal approach when managing her employees. Pastiak rarely writes memos, instead she talks with the people who report to her. Indeed, Pastiak is famous for talking to everyone, encouraging their enthusiasm and getting them more involved. Some time ago, her company received a large order. Filling it would require additional pressure over the December Christmas period - a time when workers traditionally wanted to spend more time with their families and home responsibilities.

Rather than notify everyone of the required overtime, Pastiak called a meeting and gave the workers choices. At the end of the meeting her employees decided to 'go for it' and fulfill the order - even if it meant spending some time away from their families.
'People just work harder and better when they are personally involved in all aspects of the work life,' Pastiak says. (2)

Leadership and Customer Involvement

When the NCR computer company gave James Adamson the responsibility of saving an old, unproductive plant in Dundee, Scotland many people considered the task to be impossible. The plant had little reason to exist. It was serving as a supplier of spare parts, but corporate administrators had just decided that each NCR plant should produce a particular product. Adamson figured that all he had to do to keep the plant open was to find a product to produce.

The solution seemed easy when to big British banks placed orders for automated teller machines (ATM) that his plant had assisted in developing. When the ATM's were delivered, however, they were immediately returned because the banks considered their quality to be below par. Adamson resolved to improve the quality of his products and to give customers what they wanted.

He began his quest by spending time travelling and interviewing clients and potential clients about their needs. When at work, he continuously assured his workers that through hard work and cooperation they could save the business together. He even brought clients to the plant to see how the ATM machines were made. Eventually, Adamson's efforts paid off. By remaining close to his internal and external customers, the business improved, quality rose, and orders flowed in. Within three years, NCR transferred all its ATM machine opertaions to Adamson's Dundee plant. (3)

Leadership and Motivation (Two Quick Stories)

In New England (USA), the new owner of a rock quarry was told of a worker who had cut an enormous amount of rock the day before. The owner immediately picked up a walkie-talkie, asked to speak to the worker, and congratulated him on his achievement.
Sometime later, a coworker told the owner that the worker had been on 'cloud nine' for days after receiving the message. It turned out that he had worked in the quarry for 25 years, yet had never been praised by his boss. (4)

At the EMC Corporation, administrators had a problem. Over half of the company's new products were running late. The response was to establish an incentive pay plan. Royalties were set for all new product development projects based on their size, complexity, and production-start date. Two dates are then presented to workers. The first is the date the product must be ready to market. The second date - usually 6 to 12 months later - is when the production teams stop receiving royalties. Of course, the earlier the product gets to market, the longer the teams will earn royalties.
Now only 10% of projects are late and 20% are actually finished early. (5)

Leadership and Communication

Jack Welch, former CEO of General Electric (often considered as one of the best corporate managers of the last quarter century), was commited to getting his people to come up with creative ideas in a bid for continuous improvement. He also recognized that effective communication from bottom-to-top and side-to-side is the key to achieving them. 'people who perform work have, in general, better ideas than those in the office,' Welch often said, 'the key is to give these people respect and dignity in order to obtain their ideas.'
One way Welch did this was through his 'workout' programs which brought managers and workers together in group meetings. In some meetings, managers actually had to stand up, completely encircled by their employees, and remain quiet while workers spoke about what was on their minds. Needless to say, it's difficult to ignore people when they are allowed to speak freely and openly in front of you. Managers were thus forced to listen and act on what they heard - lest the workers report the manager's inactivity to higher ups. (6)

Sources

(1) Schermerhorn, John M., Management for Productivity, John Wiley & Sons, NY)

(2) Holusha, John, 'Grace Pastiak's Web of Inclusion', The New York Times, pp F1, F6, May 5, 1991.

(3) Colvin, Geoffrey, 'The Wee Outfit that Decked IBM', Fortune, pp. 165-168, November 19, 1990.

(4) Schermerhorn, John M., Management for Productivity, John Wiley & Sons, NY)

(5) Inc. (April 1988), pp.80-82.

(6) Welch, Jack, 'Create a Company of Ideas, Fortune, pp. 25-26, December 30, 1991.