These breakthroughs have changed Gene One from a $2 million start-up company into a $400 million company on the verge of going public. The original members of Gene One are challenged with organizing the company and preparing it for an initial public offering (PIP) on Wall Street.
The PIP requires the company to make several changes to the structure of the company’s executive board, marketing strategy, and product invention. Leadership at Gene One must identify weaknesses in management concerning the PIP, and the stress associated with going public. Management is challenged with accomplishing one of the following: 1 . Gene One becomes a public company and the goals suggested by the chief executive officer (CEO) are met by adding new people to the existing staff and retaining the team’s culture. 2.
Gene One becomes a public company and the goals suggested by the CEO are et by removing people and changing the compass culture. Both of these options require management to move forward with the PIP and to make stressful decisions concerning the company’s future. Dealing with the stress of the change will determine the success of the PIP. “In an intelligently managed organization, that leadership isn’t a randomly operating process; it’s ‘a propulsive force given motion by purpose, and by a joint effort to accomplish it. That is its natural tendency, its bias. But it is management’s role to ensure that this organizational leadership has a substantive and meaningful core around which o form itself and to give it traction for advancing the organization toward its stated ends” (Strop, 201 1, p. 18). Retaining Existing People in a Matrix Structure Option One Executives at Gene One found that while individual members of the management team have quality ideas when it came to moving the organization forward, they could not come to a consensus concerning how to move.
Board members challenged the CEO to see the weaknesses of key management individuals and teased that the failure of the PIP would hinge on these weak members. To maintain Gene One’s existing culture, education of the management team will prove vital. The Chief Financial Officer (SCOFF) will need guidance concerning Serbians Solely Act (SO) and Securities Exchange Commission (SEC) challenges. Board members with these skills will be hired to assist with these areas of concern, and to fill voids in the Executive Board with respect to the SO.
Stress of implementing these changes will challenge the SCOFF and she will need support from the CEO and other team members to keep her from feeling overwhelmed. Engineering will continue to be the backbone of Gene One and the source of future financial gain. The Chief Technical Officer (COT) is an award winning individual who does not like the idea of answering to Wall Street investors. With the previous success of the Gene One technical staff, the company will continue to benefit from a science first culture.
The CEO must learn how to deal with the pressure of the investors and provide a buffer to keep the technical team out of the limelight. A science first culture can be nurtured by creating an organic structure in the technical department that emphasizes decentralization and a wide span of control. Gene One will become a matrix trucked organization, “an organization structure that creates dual lines of authority and combines functional and product differentiations” (Robbins & Judge, 2011 , p. 497).
The COT will be encouraged to produce solutions that the company can profit from, but not pressured to create marketing solutions. Focus of the COT on research and development will reduce the technical departments stress level and create a winning team. Gene One’s marketing strategy will be very public and the main focus of the PIP. Investors want to see progress and the marketing department will take the new scientific discoveries and turn hem into profits. The existing marketing management does not have the skills to establish a marketing plan for existing and future products.
The CEO will hire new management with the skills to time release products and create the hype needed for a public company. All decisions will revolve around the current and future profitability. The current marketing manager will be reassigned to manage existing accounts and provide insight into how the company built its current status. This individual has several contacts and can direct launches of new product after the planning phase has been completed. The marketing department will require training to reduce the stress of this change and prepare them for the rigors of public information sharing.
The human resource manager (HRS) will be responsible for implementing a training course for the remaining members of the management team. Training will reduce stress and improve the effectiveness of the company. HRS will develop communications detailing how the PIP is progressing to increase company wide knowledge and provide guidance for the future. Along with implementing a training course for their remaining management staff, human resources will create a number of developmental programs to increase communication between managers and employees.
As Gene One moves forward, management needs to continue the efforts to establish proper management training courses and improve skills needed to develop teamwork skills for employees. Retaining existing employees who founded and helped develop Gene One from a start-up company to a profitable corporation on the edge of becoming a public entity is paramount to the future success of the company. Skills and industry connections are valuable resources that will make Gene One successful. Educating existing individuals and adding managers with PIP backgrounds will create a progressive mixture of talent.
Adding knowledge to the company will level the workload stress and maintain the existing culture. Developing a matrix structured organization will take advantage of the technology department’s organic structure and couple it with the bureaucracy structure of the rest of the organization. Developing an PIP with New Talent – Option Two Gene One has the option to use the skills of its employees and create a new firm that focuses on the profitability of biotechnology. The CEO can create a bureaucracy, “… N organization structure with highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command” (Robbins & Judge, 2011, p. 497). Human resources will employee scientists who structure the biotechnology process in a format that can exists without the resources of one COT A team can be assembled to continue the research and the COT released.
The existing COT holds several patents that must become property of Gene One and a buyout of the patents must take place for the company to proceed. Negative press may slow the price of the PIP, which can be reversed only with successful technologies emerging from the new team. Executive board members with CPA backgrounds are hired to fulfill the SO criteria. Board members are tasked with developing the bureaucracy levels of management needed to direct the workforce.
Human resources will develop training processes that standardize job functions and create a workforce capable f supporting the mass marketing needed for profitability. Marketing will become the main focus of the company, instead of the scientific area. More pressure will be put on marketing to become a global leader in biotechnology products, instead of biotechnology as a science. As the technology department develops new products, marketing will control how and when these products are released to the public. Timing and product awareness will drive profits. Focus on standardizing the company will relieve the stress of going public.
Documentation concerning corporate finance rules, human resource lubrications for new candidates, and pay structures take the burden off the human resources manager when every employee has written criteria. Documentation will assist the marketing department with goals and specific guidelines for naming product and providing avenues for logistics. Existing employees will be retained if they desire to stay with Gene One. These employees will be made aware of their abilities and how they fit into the new bureaucracy. Those who do not wish to stay will be given options for a peaceful departure.
Contrasts of the Two Options In both options, Gene One will become a public company. Stress related to this transition will exist, whether existing employees stay on board and learn new roles or if they exit the company. The learning curve associated with the PIP must be considered and the correct individuals put into the correct places for the PIP to be successful. Evaluations of the current team will include their abilities, willingness to change, and their personal ability to handle the stress of change. Employees can be given personality and leadership testing to determine if they are a good fit for he PIP.
Employees can be trained to cope with change, but attitudes may prevail that result in termination. Gene One’s management must review the past and determine if they can move forward without the direction of a brilliant COT. Even though a team can be assembled to carry on the work of this COT, her presence alone may assist the Pip’s stock price. Losing this individual may have detrimental effects on the rest of the team, risking the failure of the PIP The CEO would be wise to keep the COT and create the atmosphere needed to keep her creative.
The foundation f the company was her biotechnology breakthroughs and the company will progress farther and faster, if this great mind is retained in the proper culture. Marketing will benefit from a new person or team that can promote products and control the market. Preparing detailed instructions is not the strength of the existing marketing manager. He will need assistance to be successful. If the culture is too much of a change for this individual, he should be terminated. The human resources manager will be retained. He has the ability to cope with change and drive the changes needed throughout the organization.
He can seek out the abilities needed to provide success regardless of the company’s structure. After the structure is determine, the human resources manager will fill the vacancies and create the documentation needed to direct the matrix structure. In either option, the existing human resource manager has the skills to be successful and will be retained. The SCOFF will not succeed in the PIP without guidance from the board members. Board members must be selected with CPA knowledge in either option, giving the SCOFF the opportunity to succeed. She has the capabilities to learn, buy may be assistant to corporate changes or even SEC reviews.
Retaining her should be reviewed as an option depending on whether or not she will support the cultural changes associated with the PIP. Conclusion With either option, the CEO and board members have difficult decisions to make with no certain outcome guaranteed. The CEO must determine the risk of losing existing management and whether or not the company will be in a better position with or without these key members. Options must be considered and retaining talent given high priority. Individuals with personal invested interest will create a culture of value and worth.