The Case of Lightco

1. The Case of Lightco Andy Gill Richard Leechik Adam Habberley

2. Outline • Problem Statement and Symptoms • Problem Analysis • Communication • Communication Channels • Communication Barriers • Interpersonal Communication • Communicating in Organizational Hierarchies • Leadership • Behavioral Perspective of Leadership • Contingency Perspective of Leadership • Transformational & Transactional Leadership • Recommended Solution

3. Problem Statementand Symptoms • White did not anticipate the negative outcome from the re-engineering • Culture change outcomes: • Closures • Disgruntled employees • Created psychological • Re-engineering outcomes: • Employees feel valued • Positive influence on the working environment (ie. volunteers) • Equality • Less suspicions of management’s motives

4. Problem AnalysisCommunication • The process by which informational is transmitted and understood between 2 or more people • Coordinates employees • Fulfills employee needs • Supports knowledge management • Improves decision making • Effective communication between Mr. White and employees led to a successful culture change • Ineffective communication between top management and employees led to a unsuccessful re-engineering

5. Problem AnalysisCommunication Channels • Two main types of channels • Verbal: Any oral or written means of transmitting meaning through words • Nonverbal: Any part of communication that does not use word • Mr. White and top management’s verbal communication with employees lead to a successful culture change (+ media richness) • External consultants and auditors were responsible for communicating with employees, resulting in an unsuccessful re-engineering (- media richness)

6. Problem AnalysisCommunication Barriers • Four communications barriers: • Perceptions: Perceptions determine what messages are screened out, as well as how information is interpreted • Filtering: Messages are filtered/stopped on their way up or down the organizational hierarchy • Language: Sender must clear up any ambiguous symbols or jargon (technical language) for the receiver • Information Overload: Volume of information received exceeds person’s capacity to process it • Culture Change • No communication barriers are evident • Re-engineering • Employees don’t understand the changes (Language Barrier) • Employees have trouble keeping up with work while changes are being implemented (Information Overload)

7. Problem AnalysisInterpersonal Communication • Two features of effective interpersonal communication: • Getting the message across, Sender must: • Learn to empathize with receiver • Repeat the message • Choose an appropriate time for the conversation • Be descriptive rather than evaluative • Actively listening, Receiver constantly cycles through: • Sensing (postpone evaluation, avoid interruptions, maintain interest) • Evaluating (empathize, organize information) • Responding (show interest, clarify the message)

8. Problem AnalysisInterpersonal Communication (cont’d) • Lightco communicated the initial culture change in such a way that the employees felt very involved with the change • The employees were surveyed for their opinions • The message was repeated (e.g., on posters, mugs, etc.) • Lightco communicated the re-engineering in a way that employees felt alienated and less involved with the organizational goals • Consultants cut jobs without warning (e.g., Phil had 20min to clear out his desk) • Management relied on consultants for majority of communications with employees

9. Problem Analysis Communicating in Organizational Hierarchies • Employee Surveys: Questionnaires that enable employees to share their attitudes and opinions about an organization • Culture Change • David White sent an employee attitude survey to gauge employee morale • Employee attitude survey helped implement successful culture change • Re-engineering • There was no employee attitude survey before re-engineering • Management didn’t know the existing employee morale nor the employees willingness to participate in another culture shift.

10. Problem Analysis Leadership • Influencing, motivating, and enabling employees to contribute towards the effectiveness and success of the organization. • Culture Change • Employees were encouraged to lead in the culture change. This boosted motivation throughout the company and enabled a smooth culture change. • Re-engineering • In the re-engineering phase the leadership role was handed to external consultants. The external consultants were enable to influence the employees, resulting in a lack of motivation to participate in the re-engineering.

11. Problem AnalysisBehavioural Perspective of Leadership • What behaviors make leaders effective? • Two clusters of leadership behaviors: • People-Oriented • Mutual trust, respect for subordinates, etc. • Task-Oriented • Clarify work duties, assign specific tasks, etc. • Effective leaders find a balance of both behaviors • Leadership at Lightco never found a balance: • Culture Change: Leadership became too people-oriented • Re-engineering: Leadership became too task-oriented

12. Problem AnalysisContingency Perspective of Leadership • Based on the idea that the situation determines the appropriate leadership style • Path-Goal Theory: Based on expectancy theory of motivation which relates several leadership styles to specific employee and situational contingencies. • People-Oriented • Mutual trust, respect for subordinates, etc. • Task-Oriented • Clarify work duties, assign specific tasks, etc.

13. Problem AnalysisTransformational & Transactional Leadership • Transformational: Explains how leaders change teams or organizations by creating, communicating, and modeling a vision for the organization or work unit and inspiring employees to strive for that vision. • In the beginning, White’s leadership changed the motivation of employees, showing them that culture change was feasible • Transactional: Helps organizations achieve their current objectives more efficiently, such as linking job performance to valued rewards and ensuring that employees have the resources needed to get the job done • During the re-engineering, White was trying to achieve current goals for the company, but has forgotten about the employees

14. Recommended Solutions • White should have taken employee morale into consideration when he decided to do re-engineering • Management should communicate with the employees about the re-engineering to involve them into the process • Lightco could have found an alternative to bringing external consultants • White could have used leadership tactics similar to ones in the culture change to minimize negative effects of re-engineering (downsizing, layoffs, etc.)