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HBR Case study and CommentaRy

Challenge The Boss or Stand Down?a rising-star executive calculates his response to a hypercritical superior. by W. Earl Sasser

How should tom respond to Franks demands?

Expert commentary by Jeffrey Pfeffer and Paul Falcone

For exclusive use University of New South Wales, 2015

This document is authorized for use only in MGMT1001-Managing Organisations&People - s1/2015 by Peter McGuinn, University of New South Wales from February 2015 to August 2015.

the experts

Case Study W. earl sasser ([email protected]) is a Baker Foundation Professor and the chair of the Program for Leadership Development at Harvard Business School.

Jeffrey Pfeffer is the Thomas D. Dee II Professor of Organizational Behavior at the Graduate School of Business, Stanford University.

Paul Falcone is the vice president of human resources at Time Warner Cable.

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Challenge the Boss or Stand Down?

A rising-star executive calculates his response to a hypercritical superior. by W. Earl Sasser

Thomas Green winced as he reread an e-mail message from his new boss, Frank Davis, marketing direc-tor for the travel and hospitality group at D7 Displays. Tom, this weeks client meetings went well, but they would have gone better if you had been on top of the market data, it read. When youre on your own, I expect you to be better pre-pared. Its essential for your new responsi-bilities in developing market strategies for your region.

Tom looked up from his paper-strewn desk and glumly surveyed the view from his new 20th-floor office in midtown Atlanta. Just a few months ago he was the companys fastest-rising star, promoted, he thought, to bring fresh thinking to the firms self-service kiosk business. Hed catapulted from account executive to his new position as a senior marketing special-ist, bypassing colleagues and collecting a 50% raise. And hardly six weeks later, he was being lecturedagainabout how to

win a sale. Unless he could get a handle on his new boss, Tom figured hed be lucky to make it to his one-year anniversary.

A single rap on the door snapped Tom out of his reverie. Frank Davis immediately let himself in.

Taking a break, Tom?No, Frank, Tom replied coolly. I

was thinking through my kiosk-services development project. If we cant get new offerings out there soon, we wont be able to compete in this business. I know youre not a fan of the project, but

Did you read my e-mail? Yes, I did.And?And, yes, I will prepare better. Good, Frank said. And, Tom, I need

you to put your skunk works project on hold. The market-strategy meeting is next week, and I still havent seen your plan, which was due yesterday. That is your one and only priority right now. Capisce?

Understood, Tom said wearily.

HBrs fictionalized case studies present dilemmas faced by leaders in real

companies and offer solutions from experts. This one is based on the HBS Case Study Thomas Green: Power, Office Politics, and a Career in Crisis (case no. 2095), by W. earl Sasser and Heather Beckham. It is available at hbr.org.

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the tricky Fast trackD7 Displays, launched in 1990 as an ATM provider, now dominated the self-service kiosk business. With 1,500 self-check-in stations in 75 airports, the firm had sewn up 60% of the air-carrier market and was making inroads into hotels and car rental agencies. Tom had joined the company just a year before, at age 28, and he imme-diately set about getting noticed. Within weeks he had secured a contract with a ma-jor airline to accelerate kiosk rollout in 20 airports and buy software upgrades across their locations. Hed also worked the back channels to get the ear of his divisions software-development director and push his ideas about new service offeringsan unorthodox move that ruffled some midlevel feathers but got senior manage-ments attention.

It was clear to Tom that for the kiosk business to compete with web-based check-in services, increasing penetra-tion wasnt enough. Kiosks had to offer unique advantages to both customers and clientsfor example, digital advertising displayed on screens while kiosks are not in use and cross-selling opportunities such as links to travel partners whose services fit the check-in passengers profile.

At a training session in midtown, Tom hit it off with Shannon McDonald, the divi-sion vice president. Both were University of Georgia alums, and Shannon, sensing his potential, made an effort to get to know him. Tom, for his part, instantly realized that Shannon could be his ticket to the fast track. When a senior marketing specialist position opened up for the Eastern North America region, he pounced. During the ensuing month, he made multiple trips to Shannon at headquarters and outlined the client opportunities he saw and his strate-gies for winning them. She offered him the job over dinner.

Tom vividly remembered that evening. He and Shannon had appeared to see eye-to-eye on the companys imminent challenges. But he particularly recalled her words of caution, which in retrospect seemed especially ominous.

Tom, youre ambitious and creative, shed begun, solemnly. This group needs a fresh perspective, and Im willing to take a chance with you. But youll have to learn quickly. You dont have managerial experience, and while youve nailed your sales roles, this position requires you to think strategically as well as tacticallyand to work across layers of management. I expect you to seek guidance from some of our seasoned managers.

Tom had assured Shannon that hed do his best, and he was taken aback by her response.

Im sure you will, Tom, but youre walk-ing into a tricky situation with Frank. He has very aggressive growth goals for next yearmaybe more than the market data warrant. Youll have to manage that. Hed also expected to choose the new senior marketing specialistand he would not have chosen you. She paused. I need you to do better than your best.

um, that Went WellBy the time Tom found the room for the strategy-planning meeting, the rest of the 12-person senior sales and marketing team had already assembled. Catching his breath, he squeezed in at the long oval table, planting his iPad before him.

Glad you could make it, Tom, Frank began. After a deliberate pause, he continued. Welcome, everyone. Well be reviewing sales projections for the coming year, performance expectations for the senior marketing specialists and their teams, and overall strategy for meeting those. Weve realized a 10% CAGR over the past five years, and corporate expects this division to continue to be a growth engine. Before I walk through the detailed analysis, let me give you the executive summary. Frank projected a slide showing

a U.S. map with each of the companys five sales regions. Given the market opportu-nities in the Eastern region, Tom and his team will have the most-aggressive growth targets15% for the airline, hotel, and car rental markets combined. Next, the South Central region

Frank? Tom interrupted. Theres no way we can achieve double-digit growth this year.

Excuse me? Frank responded, aston-ished. The room was silent.

It cant be done with our current of-ferings. I was with clients in New York, Bos-ton, and Orlando last week. Airline kiosks represent a mature, saturated market. The airlines are hurting, and theyre flocking to competing web-based check-in and asking why they should keep buying an out-moded product thats expensive to install and maintain. Web services do the same thing but cheaper.

Frank took a deep breath. Tom, most of our revenues come from the airlines market. But hotels and car rental agencies are wide open: 15% and 5% of revenues, respectively. As weve discussed, Frank continued, enunciating each word, youll be pushing into those markets. Thats where the growth will be.

Tom spun his iPad so that everyone could see it. Before the meeting I checked in through this web service for my flight this afternoon to DC. It was almost too easy. It doesnt require hardware installation, maintenance, or expensive proprietary-software upgrades. The only way our kiosks can compete is for us to develop kiosk-based services that generate revenue for clients or offer other benefits web ser-vices cant. The writings on the wall.

Tom, Frank interjected, I dont seem to be getting through to you. Our client airlines have invested heavily in our kiosk hardware and infrastructure. They wont just pull the plug. If you turn your atten-tion to developing market strategy, you could put kiosks in every hotel and car rental agency in your region.

Tom hesitated but couldnt contain his frustration. Actually, Frank, Ive been out

From day one, Tom had felt like Frank was out to get him.

exPeRienCe

3 Harvard Business review may 2011



there talking with prospects and clients. A lot. Those industries have nothing like the appetite that airlines had in the early years. Hotels are high-touch services: Custom-ers want a human, not a kiosk. Car rental companies need no more than a few kiosks, even at high-volume airports. Youre com-paring apples and oranges.

Silence. At last, Frank spoke. As I said, Toms growth target for the Eastern region for next year is 15%. Now, does anyone ob-ject to moving on to South Central? Good.

and that Went even BetterTom poked his head in Franks door. You wanted to see me? He knew what was coming. From day one, hed felt like Frank was out to get him. Yes, sometimes Tom liked to shoot from the hip, but that style had helped him land some big accounts. Unfortunately, it roiled Frank.

Have a seat, Tom. Tom dropped into a low leather chair facing Franks desk.

I just e-mailed Shannon McDonald and cced you. Your performance at todays meeting was way out of line. If you ever publicly challenge me again, Ill do more than send an e-mail. But the problem is bigger than bad manners. This job requires more than your sales smarts. Youre think-ing like a lone-gun account executive when you should be focusing on regional strat-egy development, teamwork, and clear communication up and down the chain of command. Its not just your attitude; its your entire outlook.

Frank handed Tom a copy of the e-mail hed sent to Shannon. This memo details your shortcomingsand corrective mea-sures for them. Skimming, Tom caught phrases like poor judgment and ques-tionable behavior.

Tom, Im going to keep closer tabs on you. Youll inform me of your detailed plans and update me on your schedule on a daily basis. I found out from one of your account execs that you were in New York when I thought you were in Boston

But I was going to tell you! Tom inter-jected. I finished my Boston client meet-ings early and was able to get time with

the software VP at IndiZm in New York to discuss new kiosk services. Its part of the software-development project.

Yes, but youre off that project now. Your Outlook calendar said you were in Boston, and I got shunted to your voice mail when I called. From now on, youll update Outlook daily and return messages from the office promptly. I will need to see your specific client-communications strategies before your sales calls, and to review all sales collateral in advance. You will stop making client calls purely to meet people. Youll produce reports by the deadline. Finally, youll have a more positive attitude both inside and outside the company.

I dont have a bad attitude, Tom objected. Im trying to develop our offer-ings so that web services dont eat us for lunch. Five years ago, only about half of U.S. leisure passengers used web check-in. Do you know what the figure is today?

Frank narrowed his eyes. Yes, Im aware of web competition, Tom. Ive been doing this for 20 years. As I said, the air-lines wont throw their big investments in hardware out the window, trust me. Next years growth is in expanding our penetra-tion of the hotel and car rental markets, and thats where youll focus. After youve made progress there, we can talk about your software project. End of discussion.

As Tom headed down the hall to his of-fice, he muttered under his breath, I dont think so.

Heck of an outlookTom laid low for the rest of the week and considered his options. The lull in Franks criticism gave him a dim hope that the worst was over. As Tom scanned his Outlook calendar and gloomily considered updating it, he spotted an alarming new

e-mail in the queue. It was from Shan-non McDonald. cc: Frank Davis. Subject: Performance.

Frank Davis has explained to me his point of view on your performance, the message began. I think all of us want to improve the current regrettable situation. Frank has articulated his expectations for your improvement over the next 30 days, after which he and I will re-evaluate your continued suitability for the position. At this point, I would like to get your ideas about how you can improve your perfor-mance. Please send a statement in writing within 48 hours so that we can resolve this issue promptly.

Later, as Tom drove his E82 coupe north on Peachtree Street toward his new condo in Buckhead, it seemed unwise to have bought a car and house so soon. Frank wasnt merely whining about Toms style; he appeared to be building a by-the-book case for firing him.

Tom could envision only two scenarios for staying with the company: (1) Do as he was told, change his style to suit Franks agenda, and execute on a strategy he believed was flawed; or (2) expose the full extent of Franks dubious projections and strategy to Shannon, his original sponsor, and hope shed rescue and redeploy him.

As Tom fought his way through the rush-hour traffic, he kept coming back to the only thing that was certain: It was a hell of a time to be out of work.

QHow should Tom respond to Franks demands? See commentaries on the next page.

Your performance at todays meeting was way out of line. If you ever publicly challenge me again, Ill do more than send an e-mail.

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The Experts Respond

WHat Would you do? SOme aDvICe FrOm THe HBr.OrG COmmUnITY

tom sHould find a way to creatively meet the bosss expectations and increase market growth to 15%, if not 18%. That will earn Franks respect and allow Tom leverage to do his job his way in the future.Cynthia m. Powell, graduate student, Vanderbilt University

ive Been a Tom, but I handled it differently. I completely disagreed with my boss, but before any public discussions or actions, I asked to see him in person. He saw me as loyal yet strong enough to face the big bear.Joel stock, president and CEO, Westmont Corporation

tom is doomed and should begin to look for another job immediately. People like Frank run good businesses into the ground because they cant adapt to change. Frank is too wrapped up in himself to admit he may be wrong.stefani schow, stay-at-home mother; for-mer publishing supervisor, Robertson Stephens

tHe Real mistake here is Shannons. She should have let Frank interview Tom before he was hired. Then Frank would feel more in charge of Tom and would not have to show him who is boss.adam ibrahim salem, corporate director of finance, B & G for Hospitality Business

Jeffrey Pfeffer is the Thomas D. Dee II Professor of Organizational Behavior at the Graduate School of Business, Stanford University. He is the author of Power: Why Some People Have Itand Others Dont (HarperBusiness, 2010).

Tom needs to spend more of his time managing up if he wants to avoid getting managed out of the company.

THOMas GReen faced a set of predictable problems that he failed to forestall. In-stead of further poisoning his relationship with his boss by seeking to expose him, Tom should now start to repair the damage hes done to both his professional relation-ships and his career prospects.

Toms first mistake was in neglecting to consider that he was not his bosss choice for the position of senior marketing specialist. From the outset he should have recognized the significance of that initial strike against him and, therefore, should have made it a top priority to earn Franks trust right away. But he did just the oppo-site: failing to deliver an important report on time and not keeping Frank informed

Toms second mistake was in assuming that merely articulating his impression of the competitive threat from web-based offerings would immediately change the minds of his boss and others in the organi-zation. Tom spent virtually no time building the close social ties with people that would give him the credibility to convince them of his perspective. For example, after his promotion, Tom didnt brief Shannon on what he had learned and accomplished in his new role. She had no way of knowing about the contributions he was making and thus had little reason to continue to support him. Her only information about Tom was the negative feedback she had been seeing from Frank.

ments. Tom should also apply the power of flattery, which research shows is all but impossible to overuse. He should acknowl-edge Franks many years of experience and ask for his assistance in thinking through the competitive challenge that web ser-vices present to D7 Displays. asking for help not only secures it, but also flatters the person being asked.

Finally, Tom must reconnect with Shannon in a carefully considered way. He should set up an in-person meet-ing with her rather than respond in an e-mail (which could be forwarded). In that meeting Tom needs to apologize for the problems with Frank and for not keep-ing Shannon adequately informed about his efforts, including learning about the competitive challenges facing the company and building new customer accounts. He should ask her to be his mentor, especially in working effectively with Frank. This outreach is likely to rekindle Shannons support for Tom.

Companies are social systems made up of individuals whose self-esteem must be taken into account. Tom needs to spend more of his time managing up if he wants to avoid getting managed out of D7 Displays.

about his work in general. most glaringly, he challenged his bosss authority publicly. Tom may believe that hierarchy doesnt matter so much in todays corporate world, but bosses still love the sort of deference that validates their status.

Fortunately, its not too late for Tom to repair this damage, although he must act quickly. He should start by apologizing to Frank for challenging him in public, then follow up by doing exactly what Frank asks and keeping him in the loop on all develop-

HBrs case studies appear at hbr.org prior to publication here.

The Experts RespondexPeRienCe

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TOM needs to ask himself what he be-lieves is right and then follow his heart. It doesnt make sense for him to be blindly obedient if he is unshakably convinced that his boss Frank is sending him and the com-pany in the wrong direction. That does not

mean, however, that his only alternative is to expose Franks supposed incompetence. Tom has more options than the two he lays out for himself. Its not an either/or proposition.

First, lets look at what isnt an option. no one wants to explain having been fired to a prospective employer, so Tom needs to make every effort to avoid termination. at the top of the list of steps he can take is to abandon the ill-conceived notion of going over Franks head to Shannon. Her e-mail to Tom reveals why thats a bad idea: Frank has indicated to me his ex-pectations for your improvement over the next 30 days, after which he and I will

re-evaluate your continued suitability for the position. Shannon is obviously taking up ranks with Frank on this one, and trying to pit them against each other will surely backfire on Tom, especially given Shan-nons earlier warning that he would have to manage his relationship with Frank.

There are plenty of Franks out there, and they may get tougher to handle the higher up the ladder Tom goes. as he runs across other bosses with whom he disagrees, he can still identify ways to work effectively with them. If he wants to pursue a corporate career path, Tom will need to find humility within himself as he advocates for his point of view and builds support for it.

It shows a striking lack of business maturity for Tom to assume that hed outthought Frank, who has 20 years of

Paul Falcone is the vice president of human resources at Time Warner Cable. He is the author of 101 Tough Conversations to Have with Employees (amacom, 2009).

Trying to pit Shannon and Frank against each other will surely backfire.

Tom may want to leave his job at D7 Displays before he is terminated.

tom Cant change his boss; he can only change himself. If Tom wants to succeed in his new job, he needs to forget about what anyone else should do and focus on his own actions.dorothy nesbit, director and leadership coach, Learning for Life

experience, or that he has superior mar-ket intelligence because of a few recent conversations with clients. If Tom wishes to stay at D7 Displays, he will need to developand then demonstratematu-rity by extending an olive branch to Frank and following his guidelines to a T.

That said, not everyone is cut out for corporate life, and Tom ought to carefully examine his suitability for a career path that often will require putting the needs and preferences of bosses and the organi-zation above his own. If he thinks he will be unable to cultivate the humility, selfless-ness, and patience that are required for corporate teamwork, he may want to leave his job at D7 Displays before he is termi-nated. Perhaps he will choose to pursue a more entrepreneurial course that will allow him the space to call his own shots.

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