Christina Gold Leading Change at Western Union: A Case Study

Case Summary

Christina Gold faced significant opposition in her attempt to redefine Western Union's global positioning. The single entity responsible for Western Union's international operations was deemed insufficient to meet and satisfy its diverse global clientele. Drawing on her background in different cultures and geography, Gold understood that each region needed to be treated uniquely, with its own distinct culture and consumer needs. Treating all regions the same way, she argued, would ultimately spell doom for the company.

Gold proposed dividing Western Union into three regional divisions, each with a separate division head (Konrad & Mitchell, 2009). Having individual division heads would ensure that each region was managed by someone who understood its particular cultural and consumer needs, allowing Western Union to target its products and services more effectively. Resistance to this plan was substantial: peers agreed with Gold's broad international strategy but disagreed on the question of decentralization and the assignment of profit-and-loss responsibility to regional heads. Underlying much of this resistance was a fear of losing revenue.

Major Issues

Global expansion requires handing responsibility to people who may not be fully familiar with the company's operating standards. Western Union's senior vice presidents were U.S.-centric, which made it difficult for them to promote and manage the company's products internationally. Although Western Union maintained a presence in 195 countries, all marketing and product development was conducted in the United States (Konrad & Mitchell, 2009). Gold's proposal that the company relinquish control over some international projects was not well received by the senior vice presidents.

The international division operated with only a single product line, whereas the U.S. operation offered multiple product lines. Expanding the product portfolio in international markets was necessary to increase revenues, yet concentrating solely on consumer-to-consumer business internationally left the company vulnerable to competition.

Reorganization was also complicated by financial concerns. The First Data management team did not see the need to invest the estimated $4 million required for restructuring, given that the company had been growing steadily — Western Union had increased revenues by eighteen percent in 2002 under the existing model (Konrad & Mitchell, 2009). A parent company satisfied with current performance is unlikely to sanction costly reorganization. This dynamic illustrates the difference between reactive management — responding only when crisis demands action — and the proactive, interactive approach Gold represented.

Alternate Courses of Action

Achieving the company's strategic goals requires compromise. Compromise does not mean avoiding difficult issues; rather, it means that all stakeholders agree to trial a new approach before concluding it will not work. Introducing new products in international markets will not be straightforward, and the most prudent strategy would be to start small. Selecting one region, implementing the strategy fully there, and studying the challenges and how to overcome them would give the company valuable insight before wider rollout. Change management research consistently shows that simultaneous, organization-wide transformation can overwhelm a company if not implemented carefully.

Knowing which direction to grow is a major challenge for large organizations. Timing product introductions and coordinating foreign policy implementation are complex tasks that become even harder when pursued across all divisions at once. Concentrating all resources and attention on one division before moving to the next reduces risk and allows for learning between phases.

Being more future-focused ensures that the company responds to changes before a crisis forces its hand. Gold was advocating for transformation at a time when Western Union still had the resources and the breathing room to implement change at its own pace. A culture of fear is best addressed when there is no immediate pressure. Demonstrating to management and employees why change is necessary — and enlisting change champions to carry the message — would help build internal acceptance. Western Union's management style should no longer mirror that of its parent company; a more forward-looking approach would allow leadership to anticipate shifts in the global marketplace well in advance.

Conclusion

Western Union has managed to maintain steady growth in both the international and domestic markets, but there is a pressing need for change in how it approaches the international market. Gold proposes six strategies that would allow the company to expand its international reach. These include increasing product offerings internationally and making the necessary management changes to support regional growth. Each proposal has been met with resistance, yet Gold continues to pursue her vision and encourages other leaders to do the same. She has succeeded in influencing team members by demonstrating her commitment and guiding them through challenges, setting an example of the kind of proactive, people-centered leadership Western Union needs to compete on a truly global scale.

References

Bryant, J. H. (2010). Leading with love in a fear-based world. Leader to Leader, 2010(56), 32–38.

Konrad, A., & Mitchell, J. (2009). Christina Gold leading change at Western Union. Harvard Business Publishing, Product #906M07-PDF-ENG.

Kouzes, J. M., & Posner, B. Z. (2014). The student leadership challenge: Five practices for becoming an exemplary leader. Hoboken, NJ: John Wiley & Sons.