ORIT GADIESHFinal Exam - Organizational Behavior

ByYedida Christian PanuluhIPMI Regular Class 2011

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OVERVIEW OF BAIN & CO.• The management consulting industry:

• Ups & down growth:

• In 1950’s - 1960’s grew steadily at 15%

• In 1970 starting to slowed down

• In late 1970’s & 1980’s made a spectacular comeback

• In early 1990’s:

• income decreased & starting to layoff employee

• larger consulting firms starting to merge or acquire other firm

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OVERVIEW OF BAIN & CO.• Bain & Co. founded in 1973 by Bill Bain, a former Boston

Consulting Group

• From the beginning grew rapidly:

• Unique service to clients:

• Focus to help clients implementing strategic recommendations (relationship consulting)

• Exclusive guarantee that Bain & Co. wouldn’t work their competitors

Aspect 1973 1991

Revenue $750,000 $175,000,000

No of employee 7 600

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OVERVIEW OF BAIN & CO.• Employee characteristics & early organization climate (culture):

• High discipline & team spirit

• Consists of top graduates from famous business schools

• High salary

• Hard-working, young & ambitious

• Fun place to work

• Strong sense of pride

• Data driven (always want to see proof)

• Love to compete & succeed together

• Commitment to do the best for the clients

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OVERVIEW OF BAIN & CO.• In 1985-1986, the founder & one partner sold the company to create

Employee Stock Ownership Plan (ESOP)

• The ESOP created financial problems to the firm & eventually moral problem:

• Laid off 10% of employee in 1988

• Bad morale experienced by many employee

• The company’s best people starting to resigned when Bain hire Peter Dawkins

• Eventually, in 1991-1992 the company starting to go improve again

• The problem faced by Orit Gadiesh now is how to deliver the speech she had been working on to address questions of pride & commitment;

• Would it be rational approach or emotional approach?

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HOW ORIT GADIESH•Managing relationship with people

To her clients To her boss (Bain) To her staffs/team• Straight forward/honest•Using humor• Fast response•Always keep in touch

with the clients•High involvement to

the projects•Creating trust•High integrity (always

fulfilling her promise)

• Straight forward/honest•Good negotiator

•Genuinely care about her people •Always have time to

listen & talk to her people• Leads by example

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HOW ORIT GADIESH

• Player/manager:

• Leads by example

• Involving other people to make decisions

• Directly involve in day-to-day operation, not only directing & monitoring

• Authentic leader:

• She has a strong values of pride & integrity & live up to that values so that her people trust her

• Charismatic leader:

• V i s i o n & a r t i c u l a t i o n : d e e p understanding of the company’s core values & able to communicate with her people

• Personal risk: taking risk by speak honestly & straight forward

• Sensitivity to follower needs: care & listen to her people

• Unconventional behavior: unconventional dress, strong presence, brave & not a conventional leader who just talks, but involve directly

Leadership style

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HOW ORIT GADIESH• Communicate the Culture (of pride)

•Motivate & influence:

• Reason (soft tactic of influence): when giving speech, she should motivate the employee by giving facts that the company is recovering & that they can learn valuable things from that experience in order to give better consultation to their clients

• Leads by example (walk the talk):

• Symbol management (soft tactic of influence): she can give examples from her own behavior (modeling) that shows & promotes pride in her work

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HOW ORIT GADIESH • Implement strategies for managing change

For individuals (staff) For managers (leaders)

1. Accepting feelings as natural. Make them know that whatever their feeling about change is normal

1. Rethinking resistance. Make them know that resistance is normal & can be a positive moment to reflect & analyze the situation

2. Managing stress. Giving support/help when there are employees that feeling stress when facing change

2. Giving first-aid. Providing help when needed to implement / adapt to change

3. Exercising responsibility. Encourage employee to learn & adapt to change

3. Creating capability for change. Promoting teamwork, avoid punishment (if can) & give freedom to make decision

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HOW ORIT GADIESH•Manage her behavior (to support the change):

•Make sure she give clear communications & create understanding between top management, middle management & all the staff

• Be a role model to accept change & be a supporting role. This means to share the pride by being a Bain & Co. employee & consultant

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POSITIVE SIDE OF ORIT• Strong charisma & very positive reputation

• Concern about her people

• Very good communicator & negotiator

• Her clients, boss & staffs trust her very much

• Positive thinking; she believe that the company will do better by learning from the problems in the past

• Having ability to build trust

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NEGATIVE SIDE OF ORIT• She doesn’t see herself as a leader

• This can limit her to use legitimate & formal power to influence her people

• Not brave enough to criticize her boss (Bain) about the negative effect of selling the company & ESOP program

• Her people may see her agree with the ESOP program & the decision to lay off people

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LESSON LEARNED• Group development

• Storming process at Bain & Co.

• It seems that from the beginning, Bain & Co never experienced the storming process.

• The storming process that started because of the financial crisis & employee layoffs, if managed well would lead to norming process. The norming process is what Orit currently working on. She must awaken or enhanced the pride & commitment value that previously characterize Bain & Co employee

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LESSON LEARNED• Leadership

• Authentic leader

• An authentic leader like Orit is needed in organizations to create & develop trust, especially in times of trouble/crisis

• Charismatic leader

• A charismatic leader like Orit is needed to transform an organizations, because people naturally look for a role model & inspiring person.

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LESSON LEARNED• Power, influence & politics

•Orit Gadiesh has a high level of personal power

• Expertise: she has managed to give great service to her clients & because of that, all of her people, boss & clients trust her

• Track record: she has a very good reputation & image

• High level of personal power can generate a high sense of trust

• Because of she has high level of personal power, her boss & her people depend on her to solve the problem in the company

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LESSON LEARNED• Power, influence & politics• But her positional power isn’t as high as her personal power

• She sees herself not as a leader, but as a player/manager

• If she gain more positional power, maybe she can have higher influence in the organization & that would be helpful in solving current problem

• She has 2 bases of power:

• Expert power: has knowledge & skills as a good consultant

• Referent power: has charisma because of her good reputation

• Suggestions for Orit: gain & use higher positional power & legitimate power to solve current problem of low employee morale

• Positional power: use her high position to motivate employee

• Legitimate power: use authority to make decision that would benefit employee

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LESSON LEARNED• Power, influence & politics

• Influence tactics that Orit already use:

• Reason (soft tactics): using facts & analysis

• Assertiveness (hard tactics): straight forward & honest opinions

• Suggestions for Orit in developing the speech to motivate the employee:

• Symbol management (soft tactics)

• Using her personality & charisma to show a role model of enduring pride & commitment to the company, even though they just experienced crisis & problem

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LESSON LEARNED• Organization culture

• Previously, Bain & Co has a strong culture of pride & commitment that they share strongly; it created loyalty to the company & cohesiveness among members

• The problem that created by the founder made the culture weaker & made their loyalty & commitment drop

• The lesson from that event is that every top management & employee has to keep the strong culture alive & avoid breaking commitment. Breaking commitment to that culture would create big problem like in the Bain & Co case.

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LESSON LEARNED• Managing change

• In the speech she would deliver, she could use rhetoric of change by using these elements:

• Logos: the logic of the argument. Provide the facts & analysis that the company is starting to improve & showing their extraordinary accomplishment in the past year

• Pathos: the emotional impact of the argument. Give praise & recognition so their sense of pride & commitment would rise again

• Ethos: the values represented or expressed by the speaker. Expressing the pride & commitment values that always enduring in her self

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