Question

HBS - Bob's Meltdown

How should the CEO, Jay Nguyen, respond to Bob's tantrum/outburst and resolve this situation in general? What are some specific steps you would take if you were the CEO in this situation? Make sure your actions are based on theories from the book and/or your personal experiences. In other words, make sure to support your proposed actions.

Is there anything that the company's management team (i.e., its leaders) could or should have been done differently in the first place so that this situation would never have happened? If so, what? If not, why not?

Answer 1

I personally feel that the real problem at Concord Machines is not with Bob but with the CEO, Jay Nguyen. The case study clearly states that Jay had difficult in managing the fundamental issues and the future of the company. He never communicated his thoughts to the team of top management. Bob blew his stack because Jay has been constantly pushing him to focus on the near terms though others are urged to take a longer foresight. If I was the CEO of the company, I would immediately do a self-analysis of what went wrong. If there is some issue in the company, the root cause needs to be identified. I would first need to have a clear vision of where I need the company to move and what I need from the executives of the company. This vision and mission statement would then be communicated to all the employees and the management team to have harmony and coordination among all.

The next step that I would take is to talk with Annette Innella. She had been hurt by Bob Dunn’s behavior. I would take time to let her speak and listen carefully to her concerns. Careful listening and straight talks might heal her wounds. She needs to know that I as a CEO empathizes for her and shares her shock and disappointment at Bob’s tantrums. Once she has vent out her feelings, I would deliver a firm message about the company is facing financial pressures currently and that any initiative that would distract the performance of the business units are unacceptable. I would make Annette to understand that delivering sensitive information to colleagues via email is a big error.

As the CEO, Jay Nguyen feels that Annette is not the right fit for the job, I would first analyze the capabilities of Annette. If she is not fit for the role, then I would direct her in resigning her job or to leave the company. For any critical initiatives and launch, I would hire top tier talent.

For Bob, I would ensure that he understands that his behavior is not professional and is morally incorrect. I would emphasize that Bob needs to apologize with Annette first (in person) for the tantrums. However, I will ensure to inform Bob that he is an asset to the company so that he is not alienated. I would guide Bob to delegate the tasks to his firefighters rather than do all by himself. Once this is done, I would advise Bob to have a talk with Paula Chancellor and inform her that his behavior is absolutely inappropriate and that he has patched up with Annette. Since Paula would quickly spread the word, there might be harmony and coordination among Annette, Bob and other team members.

In the first place, the leaders should first provide right direction for the management and its team members to move the company in the desired direction. Without vision and effective strategies, the companies cannot achieve its goals.