Module 7 case study COLLINS LEVELS OF LEADERSHIP

Facts which could classify CEO Sue into level 5 executive Level 5 Sue stuck to her decision despite being criticised at first as she knew it was favourable for the companys long term performance She was honest and never blamed the company predecessors for the companys poor performance and high level of debts Till the time she was there; She stayed away from fame and just focused on restructuring program which supports level 5 trait of being disciplined and possessing deep profession dedication She knew selecting the right people was fundamental to success which is evident from the fact that she recruited top people including former David executive Colette Garnsey

TRANSFORMATIONAL LEADERSHIP AND PHASES PHASE 1 Starts when a need for change is felt. Sue realised that not just their own organisation but the whole industry was declining and change was necessary to deal with changing markets. The decision to offshore manufacturing was essential as the company could no longer subsidise it.

PHASE 2 She had a clear vision of what success looks like. The idea was to restructure the strategy through cost cutting, simplifying logistic operations & capital management which was possible through culling few brands focusing on only those that drive their business

PHASE 3 Sue knew the importance of change and convinced the board to make sure implementation is not delayed

ORGANISATIONAL LIFE CYCLE AND STRATEGIC LEADERSHIP Like industry; organisation also goes through a life cycle. The organisation had high levels of debt with the risk of going into receivership which supports decline phase. Therefore Sue Morphet could be categorised as undertaker as she realised the importance of offshoring manufacturing to prevent prolonged losses

ROLE OF LEADERS IN STRATEGIC ANALYSIS

External analysis Leaders at this stage must ensure there is an established understanding of expected industry growth CEO realised that the companys condition was affected by declining Australian economy and manufacturing sector and therefore offshoring was necessary

Internal Analysis This requires identifying internal stakeholders including current set of leaders and determining their power to influence strategy Although Sue received positive support from the chairman but it cannot be said if she managed to convinced the other stakeholders as offshoring resulted in loss of around 1800 jobs

ROLE OF LEADERS IN STARTEGY FORMULATION AND SELECTION Analysing whether the decision to offshore aligns with its strategy or not 7s Strategy

Although PacBrands core strategic themes are not clearly defined; the decision to restructure the brand by offshoring manufacturing faced several criticism which seems to support the fact that the decision might not align with its strategic theme. The company is known for its strong band which is further supported by analyst David Errington who realised 30-40 % of sales evolve from top five or six brands and the decision to cull them seems to be a strategic error Structure This does not seem to be an issue as it is currently offshoring the manufacturing and recruiting the right people for the right roles to ensure long term success Systems It is difficult from the information to provide much further analysis on systems Resources This could be a key misalignment as the organisation has removed significant job roles by culling down ten factories and made around 1200 employees redundant due to offshoring production in China Skills

Although as a part of restructuring; the company recruited a new team at the top but the plan to offshore its manufacturing may result in lower standard of work produced as the company is known for its brands This could possibly misalign with the skills required. So it can be said that decision to offshore manufacturing both conflicts and agrees with this aspect of analysis Style Pacific Brands had high level of debts and risk of going into receivership which could categorise the organisation in decline phase which categorise her as undertakeras the company was nearly approaching towards the end of its life. Shared values There is limited information on companys core values

ROLE OF LEADERS IN IMPLEMENTING STRATEGY KOTTERS EIGH STEP Relevant points have been explained Establish sense of urgency: Most successful change occurs when some individuals start to look aggressively at companys competitive and financial position. Sue realised that market was changing and so was the need to bring that change into pacific brands. Company had high levels of debt and therefore could not afford manufacturing lines. Despite being faced with several criticism; sue stood by her decision and managed to convince the board for need to change Creating a guiding coalition: A major change is impossible unless the head of the organisation is an active supporter. Sue realised the urgency and momentum for change. However guiding coalition includes members who are not part of senior team. Even though she got the support from few people at the top including chairman ; it does not fully support whether she convinced the other stakeholders and built a guiding coalition Develop a strategy and vision: Strategy was to rebuild companys brand through cost cutting and focusing on core brands only. Sue seems to have this clear vision and ensure that change was necessary for long term success Communicate the vision: Transformation is not possible without the help of people. This phase requires using every possible channel to broadcast the vision and the fact there was loss of 1800 jobs tells us she had a tough time. There is not much information to support if she managed to communicated vision effectively Empower others to act: Successful transformation involves large number of people as the process progresses. As mentioned before; CEO stood by her decision despite several criticism and negativity around her and convinced the board that change was necessary, However , it is not evident if she managed to convince other stakeholders especially employees towards guiding the change