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Introduction, Situation Analysis, Instructions, Technical Background

Case 25 Relocating Company Headquarters

Setting: Construction Firm in Israel; Your Position: Chief Executive Officer


Your company, a medium sized construction firm, had its headquarters located in an area of Israel 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.

Your answer: Consult Group


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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