Question

Turnaround Ashley

At age 32, Ashley believed that she had landed an opportunity to accelerate her career as a leader and manager. Ashley had worked four years as a manufacturing manager in the industrial pump division of a conglomerate. Based on her outstanding performance, she was offered the opportunity to be the division head of a small and troubled unit of the company, Ultra Covers. The division in question manufactures after-market stylish covers for cell phones, smartphones, laptops, and tablet computers. Although the products are of high quality, Ultra Covers has been losing money for several years. Competition in the field of stylish covers for electronic devices is intense, and profit margins are thin. Despite these challenges, Ashley took just one hour to accept the offer. She told the top-management committee, “I know I can convert Ultra Covers into a proud and profitable business unit.”

Thirty days later, Ashley began her new position as division president. The former president was reassigned to a plant manager position in another unit of the conglomerate. Ashley’s first move was to conduct a listening tour of the company, interacting with workers and managers at all levels of the division. She also spoke with the major customers and several kiosk operators who sold Ultra Covers at shopping malls.

After listening to so many people, making observations of her own, and analysing financial and production data from the Ultra Cover division, Ashley swung into action. Her first step was to inform the manufacturing group that if they could not reduce manufacturing costs by 10 percent within six months, she might shut down domestic manufacturing and outsource all manufacturing to China. Ultra Covers would then become a sales and distribution unit, with almost no manufacturing. Ashley’s next major initiative came in a meeting with the sales manager, Ken. She told him that his goal for the upcoming fiscal year is to increase sales by 15 percent, and that no excuses would be acceptable. Ken explained that his sales force is highly motivated, and that they are doing everything they can to boost sales, including intense Internet marketing. He said, “The channels are already saturated with decorative covers for portable electronic devices. A 15 percent jump in sales is unrealistic.” Ashley told Ken it was his job to find a way to increase sales—particularly if he wanted to keep his job.

Another initiative Ashley took was to order managers and supervisors to find ways to reduce division costs by 10 percent in the upcoming fiscal year. “Do whatever it takes,” said Ashley. “Our costs are too high for our sales volume. Adjust the thermostats, do not replace some of the workers who quit or retire, cut back on scrap. And when you make photocopies, remember to print on both sides of the sheet of paper.”

Ashley began to sense from comments she heard from her staff that perhaps her turnaround efforts appeared to be a little harsh. Based on this feedback, she decided to prepare a video that would be distributed on the Ultra Cover intranet. A central part of her message was that about four billion people in the world use some type of portable phone or computer, and that only 3 percent of them are purchasing a cover for these devices. She concluded, “We have a potential market of about 3.9 billion people throughout the world who could use at least one Ultra Cover. We have just begun our journey to greatness.”

Ashley's first step after making direct observations at the Ultra Covers division was to inform the manufacturing group that if they could not reduce manufacturing costs by 10 percent within six months, she might shut down domestic manufacturing and outsource all manufacturing to China. What might have been a more effective first step?

a. Develop a personal brand

b. Make group members feel capable by slowly increasing the difficulty level of assignments

c. Adopt a more aggressive stance on worker efficiency

d. Employ humor and sarcasm to nudge workers toward the desired goal

In a meeting with the sales manager, Ken, Ashley told Ken that it was his job to find a way to increase sales, particularly if he wanted to keep his job. If you were Ashley's advisor, what will be your advice to her regarding this issue?

a. Advise that she impose self-serving goals on constituents, and offer consideration and support to group members only when it facilitates her own goals.

b. Suggest that a positive, warm attitude may help in such situations while an in-your-face attitude may bring detractors.

c. Suggest that she portray a self-promoting personality.

d. Suggest that she takes more risks

Based on feedback of being harsh to her team members, Ashley decided to prepare a video that would be distributed on the Ultra Cover intranet. A central part of her message was that about four billion people in the world use some type of portable phone or computer, and that only 3 percent of them are purchasing a cover for these devices. She concluded, "We have a potential market of about 3.9 billion people throughout the world who could use at least one Ultra Cover. We have just begun our journey to greatness."

If you were Ashley's advisor, what would be your feedback to Ashley's video message initiative?

a. Adopt a more aggressive stance on worker efficiency.

b. Advise her to impose self-serving goals on constituents, and offer consideration and support to group members only when it facilitates her own goals.

c. Tell her that she has done well to put the message across to gain some positive opinion about her leadership.

d. Suggest that she should portray a self-promoting personality.

Answer 1

1. The correct option is b. Make group members feel more capable by slowly increasing the difficulty level of assignments

2. The correct option is b. Suggest that a positive, warm attitude may help in such situations while an in-you-face attitude may bring detractors

3. The correct option is C.Tell her that she has done well to put the message across to gain some positive opinion about her leadership.