Case 1 Relocating Corporate Headquarters
Setting: Electronics Firm; Your Position: Chief Executive Officer
Your company, a medium sized electronics manufacturer, has acquired its chief competitor through a hostile takeover. The fight for control, which was a bitter one and costly to both sides, ended with replacement of the Board of Directors and the Chief Executive Officer (CEO). For the time being you have decided to retain three vice presidents who had worked for a long time under the former ownership. They worked together as a team, although to your mind they seemed to "argue everything to death" before taking any action.
One of your first priorities involves the location of headquarters. Shortly after your arrival you discovered a report marked "Highly Confidential" in the files belonging to the previous CEO. It had been prepared by a leading consulting firm and contained a strong recommendation that the corporate headquarters be moved from its current rural location to a major urban city. It estimated that a half-a-million dollars a month could be saved by relocating closer to the major markets served by the firm.
You concur with the recommendation and suspect that it was shelved because of the strong positive feelings that your predecessor and most of the workforce have toward the quality of life in this beautiful, tranquil, "out of the way" setting. You are convinced that a move must be made but are much less clear about timing and location. This is a different kind of problem than those you faced so far in your career. It is made more difficult by the sensitivities aroused during the takeover as well as the strong attachment to the current location.
The issue confronting you is whether or how to involve your three vice presidents in this decision. You strongly suspect that they have little experience in real estate transactions and would be opposed on principle to the move.