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Case Study : Leadership

Development

TEAM 15
Prashant

Introduction
This case study talks about a fictional global organization called
Ashgrove, a vehicle power electronics company, which works in 35
different countries.
The business builds long lasting relationships based on trust,
quality of service and Happy Customers.
The 3 principles that guide their work are integrity, respect and
trust.
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CASE
This case is basically about leadership programs in a firm,
Ashgrove and how exactly have they increased business
performance within the firm.
The 2 factors that have led to the better performance of the firm
are
1. Various Leadership styles which help building a high
performance and energizing climate within a team.
2. Organizational Climate survey by employees which gives a
feedback and helps a business unit to perform better.

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Discussion
The case questions provided helped me develop an insight into the
case .
1. Justifying use of competency model in leadership development
in Ashgrove.

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Discussion
2. How does Matt Weston, the CEO ensure that competency
framework in embedded deep into the organization and what are
the implications of implementing this framework.
The competency framework is embedded into the organization by
adding two feedback tools
1. Leadership styles
2. Organizational climate survey.
The implications are seen in figure 2 which depicts trends in
turnover, profit and work climate.
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Discussion
3. The essence of Leadership development program.
The essence of LDP is basically its impact on business
performance.
Figure 2

2500
2000
1500
1000
500
0
2004

2005

2006

2007

2008

2009

Turnover (in Millions)


Profit ( in millions)
Percentageof leaders creating high performance climates
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Discussion
4. What led to dramatic transformation of Alex ? How did it affect
the performance of his unit ?
When Alex first took the leadership style and OCS test, he found
that he created a demotivating environment.
Alex worked on his leadership behavior for 2 years and retook the
test
He found that now he was responsible for a high performance
climate which resulted in increase in operating profit from 3.1

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Discussion
5. Another reason for enhanced performance.
The company became people centric in its approach.

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Conclusion
Through the example of Alex and secondary data collected and
presented by Hay Research group, its easily seen that leadership
development programs lead to high performance organization
climate which lead to increase in operational profit from 3.1 million
pounds to 4.8 million pounds in the case of Alexs business unit.
Since the leadership development program started in 2004, the
turnover & profit increased from 1100 Million pounds and 80
million pounds respectively to 2400 Million pounds & 220 million
pounds.
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References
1. Case study Data : Collected by Hay Research group.

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