Argo Group’s Leadership and Strategic Management Case Study

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Introduction

Argo indicated that its leaders develop the mission, vision, values, and ethics, and act as role models. Argo adopted a strategic vision statement in 2003, but they have been reviewing it frequently to meet the requirements of RADAR and EFQM. The relevance of the strategic vision is reviewed every three years to align it with the organization’s goals and objectives. RADAR methodology and EFQM requirements have to be adhered to by organizations so that they keep their vision (Russell 2000). Constant reviews are important for assessing reality and room for improvement in the future. Argo conducted a review of the strategic vision in 2006 and the review made the management realize that the vision was still relevant, but its structure could not enable them to achieve their demanding growth rates. The results from the review made management re-organize their sales and personnel into four groups involved in utilities, specialist services, transport, and plants. The alignment has enabled Argo’s specialists to be in contact with customers and staff of the four product lines. As a result, customers have been offering feedback that has enabled the organization to refocus and achieve its demanding growth rate. This move conforms to the suggestions contained in RADAR methodology and EFQM requirements which require specific actions to be undertaken to solve issues in strategic vision (Russell 2000).

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Argo adopts values that apply to all its divisions worldwide. The values were formulated in 1999 to reflect the cultural style and behavior of employees within the organization. RADAR and EFQM requirements indicate that organizations have to formulate values that reflect the cultural diversity and behavior of their personnel and customers. When such values are put in place, personnel appreciate working for the organization and improve performance. However, Argo management is not involved in the formulation of the values of the organization. EFQM and RADAR methodology require that the management of an organization should be directly involved in the formulation of an organization’s values (Wongrassamee, Simmons & Gardiner 2003). Argo group values are aimed at achieving the following:

  1. Treating customers and suppliers fairly. In doing so, the organization also expects fair feedback from customers and suppliers.
  2. Fulfilling the personnel’s potential because they are essential in achieving the organization’s goals and objectives.
  3. Promoting teamwork among employees and nurturing individuals’ accountability.
  4. Adding value services to customers. This would promote sales of products and services of the organization.
  5. Improving skills of personnel and quality of products. When the quality of products is improved continuously, customers would continue purchasing products. This would be achieved by continuous improvement of employees’ skills so that they could adopt new production technologies.
  6. Leading in offering standard products in industries. This could be achieved through superior performance and efficacy in industries.
  7. Looking at the future to improve sales, products, and customer satisfaction.

Argo has done a lot as required by EFQM and RADAR requirements worldwide. For example, since 2005 Argo has been able to train all its managers as EFQM assessors. Six of its managers are also external assessors for excellence awards. To impart their teams with knowledge on the excellence model, managers have been conducting team-based sessions within the organization.

Strength areas

From the case study, two things stand out in the leadership criteria that Argo did very well. The first thing is that leaders in the organization were mandated to formulate the organization’s mission and vision statements. The EFQM rules require that organizations empower leaders to lead by chatting their future aspirations and objections (Sokovic, Pavletic & Pipan 2010). Such objectives and aspirations could be achieved by clearly defining an organization’s mission, vision, and values. Leaders in the organization have been given the freedom to act as role models. Role models direct employees in organizations (Wongrassamee et al 2003). An organization’s performance is directly related to the efficiency of role models in that organization (Sokovic et al 2010). Employees emulate good leaders who act as role models (Wongrassamee et al 2003).

The other thing that Argo has done well as required by EFQM is the continuous training of its managers and employees. Training has been singled out as key in performance and quality improvement in organizations across the world (Wongrassamee et al 2003). The managers have also been offered opportunities to act as external assessors in various bodies in the UK. This is quite encouraging and would go a long way in ensuring continuous growth in quality and sales of products (Sokovic et al 2010).

Areas for improvement

However, Argo did not give its members the freedom to word the values of the organization. It is required that managers have a say in the wording of the organization’s values. It is suggested that employees could be given the chance to discuss the values of their choice (Sokovic et al 2010). However, the last wording of values should be done by the management. Argo needs to make its mission statement known. From the case study, there is no mission statement. What is made available in the vision statement?

Site visit issues

There are two site issues that need to be assessed. One of the issues is assessing whether Argo’s managers are involved in the continuous training of employees. Information on this issue would be provided by employees. The other issue that could be assessed on the site is determining whether employees are aware of the organization’s values and ethical statements.

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People strategy

The approach used by Argo Group to measure perception among employees was professional. The organization has been conducting wide Employee Surveys to understand various issues affecting employees. The surveys adopted clear professional questions that helped the management to act on the feedback to improve performance within the organization. The organization has also been using performance-related indicators to better understand and predict employees’ morale which is directly related to performance. The management asserted that regular perusal of data on employees’ morale was key to predicting problems that would arise in the future. Prediction of eminent problems could help the management to avert employees’ performance crises in the future (Wongrassamee et al 2003).

Additional areas

There is a contradiction between the filling of Argo on leadership and the people’s results. Results on downward communication and upward communication contradict with the assertions of management on the leadership criteria. Argo indicated that leaders were involved in active communication with employees (downward communication). There were also expressions that employees communicate with managers (upward communication). However, the results on the two forms of communication within Argo do not reflect active engagement between the management and employees. Frequent site visits would help to assess whether downward and upward communication occurs within Argo and its outcomes. If it is confirmed that active communication between employees and managers does not occur within Argo, then the organization would be advised to adopt communication strategies that would encourage various stakeholders to communicate actively. This would go a long way in improving the performance of the organization (Sokovic et al 2010).

References

Russell, S, 2000, “ISO 9000: 2000 and the EFQM excellence model: competition or co-operation?”, Total Quality Management, Vol. 11, No. 4, pp. 657-665.

Sokovic, M, Pavletic, D, & Pipan, KK, 2010, “Quality improvement methodologies–PDCA cycle, RADAR matrix, DMAIC and DFSS”, Journal of Achievements in Materials and Manufacturing Engineering, Vol. 43, No. 1, pp. 476-483.

Wongrassamee, S, Simmons, JE, & Gardiner, PD, 2003, “Performance measurement tools: the Balanced Scorecard and the EFQM Excellence Model”, Measuring Business Excellence, Vol. 7, No. 1, pp. 14-29.

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IvyPanda. 2020. "Argo Group's Leadership and Strategic Management." August 14, 2020. https://ivypanda.com/essays/argo-groups-leadership-and-strategic-management/.

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