Case 25 Relocating Company Headquarters
Setting: Construction Firm; Your Position: Chief Executive Officer
Your company, a medium sized construction firm, had its headquarters located in an area where recent tensions have caused severe security problems necessitating consideration of a transfer from its present locale. In recent months the security situation had deteriorated to the point where the following has occurred: 1) workers were afraid to go to the company offices; 2) it was difficult to recruit new workers; 3) suppliers and customers were afraid to travel to the area where the company offices were located; and 4) work hours were limited to daylight only.
In light of the current situation, you have identified four options: 1) keeping the company headquarters where it is now in the hope that current tensions are temporary; 2) moving to a temporary rental location; 3) moving to one of the company construction sites for a limited period of time; or 4) moving to an existing property currently serving as a production facility for the company.
There may be other alternatives, but the above options strike you as most promising. This is a very important decision, and there are many things to be considered, including traffic patterns and convenience to customers, suppliers, and employees. Also to be taken into consideration is the suitability of the space to the work that must be done and future changes in the nature of the company's business or in the political situation.
The administrative staff of the firm is comprised of the CEO and four deputy directors, all of whom had worked together in joint management of the company for many years. While management had always been highly centralized, you believe their support to be necessary whatever is chosen. All of you have spent your entire lives in construction, and none of you has had any management training or anything in your background to deal with the complexities of this problem which has suddenly been thrust upon you.