Monday, May 5, 2014

A631.6.4.RB_PALUGODCAROLYN



After watching the two videos about the leaderships of Jim McIngvale, owner of Gallery Furniture (VitalSmarts, n.d.) and four star general Stanley McChrystal (McChrystal, 2011), I see how each individual has approached their unique obstacles and experiences and learned to overcome them.  McIngvale has a more traditional story to tell.  His story speaks of a company that was strong and successful and then succumbed like many others during the housing market crash.  To add insult to injury, this historic economic decline was followed by a fire that almost wiped the company off the map.  In many cases, a company so severely damaged in such a short period of time would have gone bankrupt, but McIngvale was able to keep his company above water.  His true leadership skills showed through when he decided to implement the influencer training.  One of the biggest problems he was facing was a decline in sales due to a drop in customers.  He attributed this to less customers visiting the store therefore less sales.  He needed to find a way to retain the customers that visited his store, even if they didn’t purchase anything on the first visit.  He also realized that his sales force had little to no experience in prospecting, which meant that once those customers walked out that door, any future opportunities would walk out with them.  Using the influencer training he was able to change the behavior of his employees.  First of all, he needed to retrain the way they thought of prospecting and turn a negative into a positive.  The training served as a way to demonstrate the benefits of prospecting and contacting and how easy it was to be successful.  In the case of Gallery Furniture, McIngvale realized he could not change the environment, which was an unstable economy and a customer-base hesitant to spend money.  But, he could change the behavior of all the members of his organization.  This is a clear example of how one leader was able to change and transform his company from the inside out.

In the case of general McChrystal, he speaks to us as well of environments in transformation and how organizations stay current by being adaptable and sharing in a common vision.  McChrystal talks to us about one of the oldest organizations, the military, and how he has had to adapt, mold and transform his own behaviors in order to survive in an ever-changing technologically evolving environment.  He explains to us that as long as you have a shared vision, are willing to adapt, and as he explains “a lot more willing to listen, a lot more willing to be reverse-mentored from lower” (McChrystal, 2011) that you can become a good leader.  McChrystal shows us that good leaders not only lead from the top, but also from the bottom.

In relating this to our readings, I believe that both leaders in the video understand how important it is for companies to be adaptable.  Brown states that “organization transformation refers to these drastic changes and how an organization functions and relates to its environment” (Brown, 2011, p. 398).   I think the key to successful leadership is understanding your relationship to the current environment and knowing when and how to evolve.  In nature, species live or die dependent on their ability to evolve; this metaphor is equally true for businesses.

Brown explains that the more committed members are to the values of the company and the more members that share those same values, the higher the chance for success during transformation (Brown, 2011).  In the case of Gallery Furniture, I believe that the commitment to the company was strong, but maybe not all the members shared the same values.  Although I do believe from watching the video that the desire to move the company in the right direction and the member commitment is what made the members eager to embrace these new values such as prospecting.  In this case we could say that they had a moderate culture to begin with and moved towards a stronger culture.  In the case of McChrystal, I believe the military has always had high commitment and high values which can make transformation either very easy, because members are mission-centered or very difficult because change is more difficult.

When we compare these two companies with the quadrants of the strategy-culture matrix, it’s easy to see how Gallery Furniture was in need of immediate strategic change, but the culture was resistant to the new techniques and processes.  Brown would categorize this strategy as managing around the culture.  Strategies for military leadership would fall more between managing around the culture and managing culture for the mere fact that there is a huge generational gap.  Some mature leaders may have their “standard” ways of doing things that clash with newer methods, while younger soldiers are easily groomed for these newer environments. 

I remember when the economic crisis hit and I was working at an IT firm.  Our company was lucky and only a few people were laid off.  Yet, certain sacrifices had to be made and job roles were adapted to the current situation.  For starters, bonuses, incentives and pay raises were put on hold.  People were more than happy as long as they kept their jobs.  Another transformative strategy was to make all of us salespeople.  We had a sales department that executed this role, but times were tough and therefore everyone from accountants to executive consultants were asked to prospect.  I was given cold call lists to follow up with, although this was outside of my arena and comfort zone.  We all pulled together and were able to maintain the company afloat.

My takeaway from all of this is inspired by what general McChrystal said during his TedTalk.  He said “if you're a leader, the people you've counted on will help you up. And if you're a leader, the people who count on you need you on your feet” (2011).  When our IT firm faced the option to sink or swim, everyone assumed the leadership position.  We all understood that we stood together or fell together.  I don’t remember people griping or complaining about their new roles.  Sales were what the company needed, and so sales is what we all put our efforts into.  Brown (2011) tells us that “organizations are driven by a vision, not by directives from the chain of command” (p. 404) and I believe that we all shared in that vision and this is what kept our company alive while others crumbled around us.

References



VitalSmarts. (n.d.). Gallery Furniture [Video file]. Retrieved from http://www.vitalsmarts.com/casestudies/gallery-furnitu

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