Org Behavior Lfi Is Facing the Departure

Org Behavior

LFI is facing the departure of all three full-time employees. The creative partner is faced with a number of decisions, each with its own challenges. The industry is highly fragmented and very competitive. Dave now needs to replace those people, but has the opportunity to do so with a new vision for the company.

There are several key issues, but the first and most important one lies with Dave. If he remains, it will be without partners and the firm is going to look and feel differently. The different options that Court has suggested all involved radically different views of the firm. Before any other option can be determined, Dave must have a sense of what he wants. Some of the business-specific issues that might help Dave make his decision are to what extent he will be able to replace the missing people, what opportunities are going to exist in the marketplace going forward, and what vision Dave has for his own work. If he wants to try new creative things, that could lead future LFI to different directions altogether.

There are three main options that have been posed to Dave. The first is to hire people strictly to replace the talent that is departing. This will require hiring experienced people, something that could constrain Dave as he continues as solo partner. In addition, the first may have difficulty replacing the expertise that is departing. The organization has eschewed strictly defined job descriptions, so the people at LFI have developed into jacks-of-all-trades, and those unique skill sets will be difficult to replace. In addition, Julia's expertise in particular after ten years is going to be very challenging to replace. The second option is that Dave could bring in new management, and more of it, in order to build the business, finding "a new level of growth." Last, Dave could take on a replacement partner.

The second option has the best appeal, and so is recommended. The first option almost assuredly means that the company will take a step backward. The company's talent will be a poor comparison for the people that are leaving. Worse, Julia is probably going to take several clients with her. This situation also makes the firm less desirable for a potential replacement partner.

This leaves Dave with only one real option -- to take on additional management, shift focus and grow the firm. In a heavily-fragmented market, there is always room for growth by winning market share from competitors. Additionally, Dave has the ability to shift the focus of the company away from customized plans, or build that as an adjunct business to more standardized plans. New management can be brought in to radically change the direction of the company, and Dave will still have the ability to shape his role as he sees fit. The existing culture of the organization will be transitioned, and that could create some problems but this is the best opportunity to implement such change because the organization is entering into a crisis state, where two key employees are leaving on the creative partner is forced to take on a different role with the firm.