The president of this company does have a problem of leadership as well. He allows the issues such as Jacobs's mistreatment of subordinates and sexual harassment goes on without taken some strong disciplinary action on Jacobs during these ten years. There should be a total change of management with in this company in other to excel. Leadership is dispersed throughout the organization from my opinion.
If I am Harry Rull, First, I would launch a full-scale investigation of employee complaints about Jacobs, and make Jacobs aware that the documented history over the past ten years has put him on thin ice. Every documented complaints about Jacobs will be looked at and address. As much as Jacobs is an assist to the company so are the other employees. In other for an organization to be great and successful there have to be a set rules that governs the company and its employee. Harry Rull should ask himself; do I want to work in a place where I am sexually harassed and mistreated? I guess not, therefore by implementing the investigation could bring some relief and changes that could lead to a safe work place for every employees and the company.
Second, if I was Harry Rull, I would meet with Jacobs and the other employee to try to resolve the current issue. As a manager you are a leader and good leader take