FOREVER INNOVATION TECHNOLOGIES

Audrey Bazanella Rosa

Tatiane Teixeira Leal

Navdeep Tiwana

Karoline Müller

Yuchao Li

Alexis Revue

Case Study

2

Specialty items for the leisure industry

=

Forever Innovation Technologies Co.

35 employees

Overview (1/6) – What is FIT ?

What is FIT?

OWNER/CEO/INVENTOR/DESIGN ENGINEER: OMAR GOLLEROMAR!

3 Overview (2/6) – The Importance of the Founder/CEO/Inventor

The CEO as an inventor

Omar’s hobby – Continuously developing new products without improving them

Omar has been fortunate enough to keep the company

Omar centralizes the operation on himself

Omar is not organized and the employees become frustrated sometimes

Omar believes that the next invention will be the best one – always!

4 Overview (3/6) – CEO Description

How does Omar run FIT?

Invention!

FIT

5 Overview (4/6) – The Last FIT Invention

The Case: The last Invention

xOMAR

6 Overview (5/6) – Divergent Opinions

The Case: Divergent Opinions

• Go to the next invention

• No investment

• Enter construction industry

• Large scale production

OMAR

FATHER FIGURE

INVENTOR (INNOVATIVE)

FOCUS ON PEOPLE (IN SOME WAYS)

INSPIRE (BY HIS CREATION)

LEADER – NOTMANAGER

NOT ORGANIZED

7 Overview (6/6) – What kind of leader is Omar ?

Omar’s Leadership

What type of leader does FIT require?

Innovate

Develop

Focus on people

Inspire

Long view

Ask what and why

Challenge status quo

Do the right thing

Administer

Maintain

Focus on systems and structure

Control

Short view

Ask how and when

Work with status quo

Do things right

Leaders Managers

Source: notes of Milton Krivokuca’s classes

8 What type of leader does FIT require? (1/4) – Leader’s characteristics

What type of leader does FIT require?

Innovate

Develop

Focus on people

Inspire

Long view

Ask what and why

Challenge status quo

Do the right thing

Administer

Maintain

Focus on systems and structure

Control

Short view

Ask how and when

Work with status quo

Do things right

Leaders Managers

Source: notes of Milton Krivokuca’s classes

9 What type of leader does FIT require? (2/4) – Manager’s characteristics

What type of leader does FIT require?

Contingent reward: contracts exchange of rewards for efforts

Management by exception (active):takes corrective action

Management by exception (passive): intervenes only if standards are not met

Laissez–faire: abdicates responsibilities, avoids making decisions

Charisma: provides vision and sense of mission.

Inspiration: communicates, expresses important purposes in simple ways.

Intellectual stimulation: promotes intelligence, problem solving.

Individualized consideration: gives personal attention, treats each employee, coaches and advises.

Transactional Leadership Transformational Leadership

Source: Bass (1990, p.630)

10 What type of leader does FIT require? (3/4) – Transactional versus Transformational

What type of leader does FIT require?

Task Behavior

Low High

Re

lati

on

ship

Be

hav

ior High PARTICIPATING SELLING

Low DELEGATING TELLING

11 What type of leader does FIT require? (4/4) – From Relationship to Task Behavior

Does a strategic framework exist ?

What strategic management means?

Analysis Decisions Actions

Articulation of goals and objectives

Planning approach involving customers and employees

12 Does a strategic framework exist? (1/3) – The Theory of Strategic Framework

Does a strategic framework exist ?13

His goal is to invent, use his imagination

“the next invention will be the ‘big winner’ for FIT”

Not profit oriented

Employees’ satisfaction

Team involvement: Informational sharing

Lack of feedback

Does a strategic framework exist? (2/3) – What really happens?

Does a strategic framework exist ?14

Reacting to Problems

Achieving Strategic and Operational Goals with a Transformational Leader

Strengths – Intangible Resources

• Loyal employees

• High level of knowledge

• Positive work environment

• Quick learning and adaptability

• Personal relationship along the employees

Human

15 What are the strengths of FIT ? (1/3)

• Highly (!) innovative CEO

• Continuous creativity and development process

• Broad thinking

Innovation & Creativity

• FIT is known for its specialty items for the consumer leisure industry

• Always releasing new inventionsReputation

Strengths – Tangible Resources

• Sound financial resources

• Financial stability (No crisis within the last 10 years!)Financial

16 What are the strengths of FIT ? (2/3)

•Material independent business

•25,000 square feet building Physical

• Ability to design, produce and manufacture newideas (FIT implements complete productionprocess and value chain)

• In possession of basic machine tools

Technological

• Wide product distribution – Various types of gadgets and tools

• Flat organization structureOrganizational

FIT’s Biggest Strengths

Intangible Resources

Tangible Resources

17 What are the strengths of FIT ? (3/3)

Weaknesses – Intangible Resources

• CEO’s hobby, no financial thinking

• CEO driven by excitement

• Employees’ frustrationHuman

18 What are the weaknesses of FIT ? (1/2)

• Flat Organization structure

• Not a goal oriented culture

• Lack of team building

• Production oriented instead of customer oriented

• No planning approach

• No improvement approach: Plan/Do/Study/Act

Organizational

Weaknesses – Tangible Resources

• No long-term financial plan

• Unable to auto-finance strategic developmentFinancial

19 What are the weaknesses of FIT ? (2/2)

• Basic machine tools

• Investment required for large scale productionPhysical

• Doesn’t meet OSHA requirements

• Doesn’t achieve safety certification

• Unfamiliar technical field (construction industry)Technological

Conclusion – Synthesis

Overview

Culture of the company:

“the next invention will be the ‘big winner’ for FIT”

Threat: Small, changing & not well defined market Weaknesses

Divergent views on what success looks like, no definition of success

Tangibles assets and organization inadequate

No improvement nor development strategy, not customer oriented Strengths

Under-used skilled and loyal team with potential managers

Under-developed Innovative ideas

CHANGE IS REQUIRED

20 Conclusion (1/3) – Change is required

Conclusion – What?21

SET THE VISION

Gather the facts supporting the required change, market analysis

Define what success looks like, integrating customers and employees

Define the goals, with metrics

Define the type of change required:

Strategic, Technological, Structural, Behavior

Attitude towards risk:

Challenge status quo

Invest to enter new markets

Conclusion (2/3) – What kind of change ?

Conclusion – How?22

LEAD THE CHANGE

Transformational & selling leadership

Resistance (political/cultural/individual/systematical)

Communication, participation, support through training, threats

Organizational culture & impacts on the team

From information sharing to special problem solving

From self managed teams to special project team with objectives

Process maturity: From reacting to early systematic

Implement improvement approach: Plan - Do - Study - Act

Conclusion (3/3) – How to lead the change?

THANK YOU VERY MUCH FOR YOUR ATTENTION!

Are there any questions left?

Sources24

http://www.emeraldinsight.com/journals.htm?articleid=1410696&show=html

http://smallbusiness.chron.com/transformational-leadership-vs-transactional-leadership-definition-13834.html