EXECUTIVE SUMMARY 4
INTRODUCTION 5
BACKGROUND 5
ANALYSIS OF LEADERSHIP STYLE 6
ANALYSIS OF ISSUES 7
STEP ONE – ACTING WITH URGENCY 8
STEP TWO – DEVELOP THE GUIDING COALITION 8
STEP THREE - DEVELOP A CHANGE VISION 8
STEP FOUR – COMMUNICATION OF THE VISION BUY-IN 9
STEP FIVE – EMPOWER BROAD-BASED ACTION 10
STEP SIX – GENERATE SHORT-TERM WINS 10
STEP SEVEN – DON’T LET UP 11
STEP EIGHT – MAKE CHANGE STICK 11
CONCLUSION 13
RECOMMENDATIONS 14
REFERENCES 14
Executive Summary
The purpose of this report is to review and critique the Australian Integration of the Volvo and Mack’s companies. The leadership response to such a change is evaluated and the effectiveness is critiqued. The value of conceptual frameworks and models are analysed and recommendations are given.
In early 2005, the Volvo Trucks and Mack Trucks (VCVA) Board met to discuss the issues that were hampering the successful merger of both companies. The Board identified that the issues related to:
• Low cost synergies
• Slow progress on certain change related issues
• Issues with the integration of the two brands within the retail division
The leadership style of Peter Hertinge is analysed using models such as Fiedler’s Contingency Theory of Leadership, house’s path-goal theory of leadership and leadership mystique which find Peter as a task oriented, directive and a visionary respectively.
To analyse the situation, Kotter’s framework is used. The framework points out to the following key issues-
• Poor communication
• Actions were taken too quickly
• Different ways of working between the two brands
• Truck sales division located too far away
• Mack staff struggled with the rigid structure of Volvo
It is recommended that given the limited tenure of Peter at the time of the integration, the communication should be directed from a trusted Mack manager with an existing relationship with the employees. Efforts should be made to influence naysayers who were
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