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Expert System

Introduction, Situation Analysis, Instructions, Technical Background

Case 9 Managing a Turnaround

Setting: Regional Airline; Your Position: CEO


You have just been appointed CEO of a regional airline. Your predecessor was asked to resign due to poor financial performance and a failure to develop policies necessary to maintain the profitability of the airline.

The board considered firing the entire executive group but decided to leave that decision up to you. You feel that such an action would be inadvisable in the near future since it might precipitate a "chain reaction" and cause massive departures from the organization. Furthermore, you do not have a background in the airline industry, and you will need their considerable knowledge in figuring out how to return the organization to profitability. In turnaround situations with which you have successfully dealt in the past, you have brought in your own team but not until you had gotten a feel for the organization and industry

Your first step was to have a lengthy one-on-one session with each of your four direct reports. You were somewhat surprised at their apparent indifference to the challenge of making the airline successful. It seemed that each believed that they had a limited future with this airline and were simply trying to position themselves to get an equal or better position elsewhere within the industry.

On the one occasion in which you called a group meeting, there was an absence of open exchange, which you found upsetting. Perhaps your past reputation for bringing in your own people has caught up with you. Nonetheless, you recognize that their knowledge and experience will be critical to the development of a plan which you have promised to the board within a month.

Your answer: Facilitate


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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