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Introduction, Situation Analysis, Instructions, Technical Background

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.

Your answer: Consult Individually

Decision SignificanceHow important is the "quality" of the decision, i.e. to what extent does the decision have material, strategic impact on your clients or beneficiaries inside or outside of the organization. (click for details)   Group ExpertiseDoes the group collectively have the necessary knowledge to solve the problem and or make this decision? (click for details)
Importance of CommitmentTo what degree will the implementation of the decision require the support and cooperation of the group to be effective? (click for details)   Interaction ConstraintAre there time or geographic constraints which would prevent you from bringing the team together (physically or by telecom) to make the decision? (click for details)
Leader ExpertiseTo what extent do you, the leader, have the necessary knowledge to solve the problem or make this decision? (click for details)   Team Competence How competent is the group at working together as a team in solving problems or making decisions. The issue is not their factual or analytical technical knowledge, but rather their ability to work together synergistically. (click for details)
Likelihood of Commitment How likely is it that the group would accept your decision as the best course of action even though not included in the decision making process itself. (click for details)   Time/Dvpt PreferenceChoose the importance of time and development individually or use the values specified by either the Time or Development Driven model.(click for details)
Goal AlignmentTo what degree are the members of the group committed to the achievement of the oganization goals which are at stake in this decision? (click for details)      Value of TimeThe value of time varies with the number and intensity of other activities confronting you and your group. Considering your current workload, rate the value of time. (click for details)
Likelihood of DisagreementHow controversial is this decision likely to be among the members of the group? (click for details)      Value of DevelopmentHow important is it to you to develop the capabilities of your group or team, i.e. increasing their knowledge, their commitment to the organization, and their effectiveness in working together? (click for details)
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