A631.6.4RB Transformational Strategies, ReyesCassandra

Watch the above videos. Both of these videos highlight leadership in times of transformational change. How do you relate and make sense of the approaches taken by Jim "Mattress Mack" McIngvale and Stanley McChrystal compared to the information presented in your textbook? Use Figure 15.4 Relative Strength of Corporate Cultures and Figure 15.5 The Strategy-Culture Matrix in your response.

Jim Mcingvale discusses how contacting customers, follow-up with them, prospecting new clients, coaching to team members, providing incentives and data assisted with the success of his company after they had experienced a drop in the market economy and the company fire which resulted in a loss of 80% of their revenue. The first thing that Jim says changed was the sales behavior which increased revenue by 600,000 a year. He also mentioned that the elimination of the reworks of products also assisted with savings for the company of 1,000,000 a year along with customer satisfaction.

Another thing I found interesting was that Jim had incorporated a Wellness program for his employees which assisted with the health of his staff and the way they looked and felt. The wellness program helped reduce health insurance costs for the company which in the end saved their employees money. Jim states that Influencer training helped make his company more profitable even during hard economic times and most importantly increased employee and customer satisfaction across the board.

I think figure 15.5 provides a perfect visual in how to achieve change and more importantly, how to be successful in it. As the graph states step one is to manage the change as change is important and needs to be compatible with the company culture; the second step is to reinforce the culture of the organization by forging a vision that emphasizes shared values, the third step manage around the culture of the organization by reinforcing the value system, reshuffling power and using leverage in the organization, lastly step four is to change the strategy to fit the culture to ensure compatibility with the corporate culture.

Stanley McChrystal's speech paves a bit of a different path in what a leader is. Stanley discusses his various experiences in the military where he provides stories on the importance of leaders building a consensus and sharing a purpose and consciousness. He also discusses the importance of understanding the generational difference and makes a powerful statement when he says " how does a leader stay credible and legitimate when they haven’t done what the people they are leading are doing." I thought that making this statement showed the truth behind McChrystal's ability to comprehend what it takes to be a great leader. Understanding this one statement and living by its purpose, McChrystal was able to become a more transparent leader who was willing to listen and be reverse mentored by all different age groups, sexes, and nationalities.

McChrystal's ability to concentrate on the importance of relationships and how those relationships affect the outcomes of the successes, failures and trust amongst a group of people proved that true leaders are good because they are willing to learn and to trust and understand that relationships is the key to holding the force together. As McChrystal states "Leaders can let you fail and yet not let you be a failure."

I believe McChrystal's speech resonates more with figure 15.4 as it touches upon the difference between a strong and a weak culture. Culture s listed as a product of key components such as structure, systems, people and style. A strong culture is along the lines of the military discussed by McChrystal where basic values are intensely held and widely shared. Weak cultures may be an example of a young company, or a company with major turnover or one that does not share the same mission or vision amongst its employees.

I believe that both speakers experienced an organizational transformation in two very different ways. The idea behind these speeches was to teach us that in order for OT to be successful, it requires a shared vision, willingness to clean house and start from scratch, and the importance of restructure. Without these two individuals being open to change and restructure and most importantly learning from their mistakes or failures, I do not believe they would be the leaders they are today.

 

Cassandra R.