Case studies are one of the best ways to improve critical and strategic thinking. The best business and engineering schools have used them for years. Of course, most of these studies are inspired by actual decisions and actions inside real organizations. Many are caused by external circumstances. But then there are those that are the result of what I might call “unforced errors.” This week, I came across one that makes my head spin, and I’ve been doing this for a long time.
Imagine you’re an organizational consultant and you receive a call to help resolve this situation. The potential client is a non-profit organization with a staff of 70 that serves higher education. Twelve months ago, the long-time CEO was released by the board for malfeasance. An audit of the books revealed that spending was out of control. While there were reserves, relying on them is not a viable option.
Initially, the board appointed the fired CEO’s second in command to lead the organization. But after several months, it was apparent that this individual was not up to the job of leading the organization in its present state. After another internal search, the board appointed a vice-president who has been with the organization for more than a decade. She, in turn, asked an organizational development consultant she knew to assist her in getting this organization back on track and financially sound.
After a good deal of discussion, the two of them concluded that the entire organization’s staffing needed a reorganization. Where the organization had five layers of management from vice-president to program manager, they decided to do away with the “senior director” level. This would eliminate five positions. Finally, they decided that everyone on staff should reapply for their present position or any other position for which they thought they were qualified. That way, they concluded, they could be sure that the right people were in the right positions. They did all this without consulting with or informing anyone of what they were considering.
A week ago, the CEO held an all-staff meeting to explain all this. Since a good portion of the employees work remotely, this was done hybridly over Zoom. There was no opportunity for discussion. Those in senior positions were informed at the same time as those reporting to them. Two mornings later, everyone received an email containing a revised organizational chart with a note that new job descriptions will be released at a later time. In the meantime, the CEO is presently interviewing existing vice-presidents in order to decide whether each of them should stay in their present position, move to another position or leave the organization. Once again, the updated job descriptions have not yet been distributed.
I found out about all this from someone on this organization’s staff who is experiencing this real time. You can imagine what’s been going through his mind. Will I have a job next month? Will it be the same job I have now? Should I apply for my boss’s job? I think I can do it. Will they offer me a lesser position, which means I’ll be making less money? What about all the projects I am working on right now? Should I continue to work on them? Will I have to train someone else how to finish them if I am not in this position? What will happen to my on-the-job relationships? Should I hold back on buying that new car and re-signing my lease? Where the hell is this organization going and how will I ever be able to trust its leadership again?
So, what’s my point in telling you all this? Simple, the workplace appears stressed to the limit at this point due to everything from economic tumult to the emergence of artificial intelligence. Why make it worse by committing unforced errors? I really do fear for the existence of this organization going forward. But if you offered me job of fixing it, I’d run in the other direction. How about you?