Leadership change and organizational impact

Leadership Change

Suggested Changes to Leadership Structure and Style Before Going Public:

The Gene One Case Example

There are relatively few instances in an organizations growth period that demand or warrant sweeping changes to leadership structures and styles, especially when a company has already proven successful under a specific and consistent leadership schema. The period leading up to and during the initial public offering of a privately held corporation, however, could very well be one of those times. In the Gene One case study, the company -- a successful biotech firm with a commitment towards making varietals of produce that can more adequately and efficiently feed the people of the world -- is ready (in the minds of many leaders) to go public, but the experiences, attitudes, and beliefs of many leaders in the current leadership structure might not be as suited to the task of taking the public as they were to making it the profitable private enterprise it currently is. Developing the proper structure and style for the company's leadership is essential to a successful IPO.

Transformational Leadership

The transformational leadership style is highly suited to the task of bringing about and/or assisting in the transition of organizational change. This might seem like a somewhat obvious statement given the name of the leadership style, but in fact transformational leadership has been primarily studied and implemented in stable organizational environments, and it was not until relatively recently that evidence of the leadership style's potential during periods of major transition became apparent (Hinduan et al. 2009).

Leadership styles are of course intimately tied to the overall organizational culture, and transformational leaders have been shown to create more responsive and reactive organizations that often show evidence of more proactive behaviors, readily identifying and addressing issues before they become increasingly complex and difficult (Masood et al. 2006). This effect of transformational leadership would be of enormous benefit to Gene One during the period of transition leading up to and following the company's initial public offering, making both the leadership team and the organization as a while more responsive to any turbulence brought by the IPO. Even changes that are ultimately positive will require adjustment, and the faster and more efficiently that adjustment can be made, the better off the company and the individuals within it, including its leaders, will be.

The determination of an organization's situational strength is also a major factor in selecting the proper leadership style for the organization at any given moment, and again transformational leadership is strongly suggested for the situation at hand (Masood et al. 2006). On the one hand, Gene One is facing a great deal of flux and uncertainty regarding the IPO, and this requires a leadership style that can maintain morale and motivation within the organization -- one of the key characteristics of transformational leaders. At the same time, the actual business operations of the company are remaining relatively stable -- though there are hopes that their expansion will soon be taking place more rapidly -- providing a fair measure of stability and a probability of success. Transformational leaders have a well-documented record of success in such situations (Hinduan et al. 2009).

Leadership Structure

With the proper selection of the leadership style best suited to Gene One's current situation completed, the leadership structure within the company should be adjusted to reflect this leadership style inasmuch as is possible based on the information provided in the case study. There are several candidates for taking charge of Gene One during its initial public offering and for some time following, at least until the company has stabilized in its new position, if not for longer. There are of course positive aspects and drawbacks to each of the potential company leaders, but any negative aspects of one individual's leadership can be mitigated by a more temperate and even handed leadership structure, yet one that still allows for efficient and decisive decisions to be made and carried out.

Studies have shown that leadership is often more even-handed when measured in terms of influence rather than in terms of procedural behavior, and this knowledge will be directly and explicitly applied to the Gene One leadership structure in the situation at hand (Hysom & Johnson 2006). Michelle Houghton and John Kirby will be the primary decision makers for the company; Houghton's commitment to the company itself and her proven savvy as a chief financial officer will doubtless continue to serve the company well, as will Kirby's decades of expertise in the corporate world of the science and technology sector. Houghton's appearance as a pushover, however unfounded, would be detrimental to the company at an IPO, and Kirby's stubbornness might prove detrimental to the company overall, but the two somewhat oppositional images and approaches should complement each other well.