Introduction
The following report examines the case of Mr. Davis and the implementation of new business development policies at Hereford Bank. This paper identifies the main problems facing Jim Davis, analyzes key issues and people, and concludes with a recommendation and implementation plan for resolving the identified issues.
When examining the case, it becomes immediately apparent that the main issue comes in the form of a lack of sufficient management initiative from Mr. Jones and a degree of resistance to change towards the proposed policies by Ms. Matthews. The problem and recommendation are based on the following detailed analysis.
Analysis
The first identified issue in the case comes in the form of Patty Matthews. The problem with Ms. Matthews is that she has shown a propensity for uncooperative behavior regarding the proposed policy changes.
As explained by Jones, with the exception of Ted Yurek, the other branch managers under his employ have gotten by with a high school education and the only thing they have going for them is their extensive experience as branch managers. They simply lack the sufficient sales skills and it is likely that there will be a considerable resistance to the proposed changes that Davis will be implementing.
Whetten and Cameron tackle the issue of employee resistance to change wherein they state that changing the employee culture and implementing proper transition practices is the most effective means of reducing such resistance and ensuring a proper changeover to the new method of operation (Whetten and Cameron, 2011). In the case of Ms. Matthews, an active resistance to change is present (i.e. she called in sick for the training).
It would be necessary to immediately resolve this issue due to the seniority Ms. Matthews has, which translates into a considerable level of influence over the other bank managers. If Ms. Matthews continues to resist the changes actively, it is likely that the other managers will resist as well as leading to a failure in proper policy implementation for new business development.
If all attempts to get her to cooperate fail, and nothing will get her to budge or to display any form of cooperative behavior, it is better that she be terminated for the sake of the bank. It will be difficult to implement the necessary policy changes if she continues to get in the way and her refusal to cooperate would most likely lead to operational losses rather than gains.
Another of the identified issues was the lack of sufficient backbone in the case of Allen Jones when it came to dealing with the branch managers under his care.
When going through the case data, the lack of Allen’s sufficient willingness to keep the branch managers in line can be traced to his relatively short period within the bank (3 years) and the fact the branch managers have been in their respective positions for decades (Patty has been a branch manager for 25 years).
By examining the section on Power and Influence by Whetten and Cameron, one relevant statement becomes immediately applicable to the current case: “……ambitious, unseasoned twenty-something’s flooding the managerial job market.
These new managers are taking positions traditionally reserved for battle-tested pros who understand from experience the ins and outs of gaining power and influence” (Whetten and Cameron, 2011). This is exactly what is happening in the case of Jones, wherein his lack of experience in properly gaining power and influence has resulted in a lack of sufficient control over the bank managers.
Given enough time he could develop such traits, however, with the need to implement new business development policies, Davis simply does not have the time to wait for Jones to develop the necessary backbone to get the branch managers to cooperate with the needed changes immediately.
What you have to take into consideration is the likelihood of more operational developments that require greater cooperation from the bank managers and better levels of coordination on the part of Jones. As Davis develops new policies, operational guidelines, and programs for business development, it would be necessary for Jones to get the branch managers to cooperate.
While this could be achieved by threatening to terminate uncooperative branch managers, Whetten and Cameron explain in the section on motivation that fear does not result in a good business environment for employees. Instead, one plausible solution would be for Jones to appear as an intermediary between upper management and the branch managers.
The last issue, in this case, revolves around how Davis will attempt to address the issue of disciplining Patty Mathews. As stated in the concluding section, Mr. Davis believes that Ms. Matthews calling in sick on the day of training seems far too convenient and necessitates some form of disciplinary action.
However, as the business development manager and the retirement account coordinator, he is not directly in a position of authority over Ms. Matthews and to attempt disciplinary behavior when she is not under his chain of authority could cause issues in the future.
Asking Allen Jones to implement some method of disciplinary measures would normally be the case since they work together and it is the responsibility of Mr. Jones to ensure that the new operational guidelines for sales developed by Mr. Davis are properly implemented by the bank managers.
However, as explained earlier in this case analysis, Mr. Jones lacks sufficient experience in exerting his authority and is hesitant in reprimanding or controlling the branch managers that he is in charge of. If Mr. Davis were to ask Mr. Jones to implement some form of disciplinary measure, it is unlikely that it would be implemented in a satisfactory manner and would lead to even more breaches of conduct in the future.
The only solution at this point would be to escalate the issue to someone above Mr. Jones so as to ensure proper disciplinary action can be implemented. In this scenario, Mr. Davis has three options to choose from. He could choose to escalate the issue to his boss, Eric Johnson who is the VP of Marketing.
He also potentially escalate the issue to the president of the bank, Ray McIntosh, who would have the authority to immediately implement some form of strict disciplinary measure given that it is the future success of the bank at stake. Lastly, he could communicate with Tim Hall, the VP of Operations, who is the boss of Allen Jones and in turn Patty Matthews.
While each potential point of escalation does come with its own advantages, there are several issues that need to be taken into consideration. First off, in the case of Eric Johnson, who is the boss of Mr. Jones, the fact is that he is the VP of marketing and, as such, has no direct authority over Ms. Matthews.
Secondly, escalating the issue to Ray McIntosh, the president of the bank, may be far to overreaching given the fact that the problem with Ms. Matthews is not a major operational issue. Lastly, in the case of Tim Hall, it is uncertain whether he would listen to another person from a completely different department.
Recommendation
One possible solution utilizing the principles on developing proper power and influence over individuals by Whetten and Cameron would be to enhance the means by which Jones is viewed by the branch managers he is in charge of.
This can be accomplished through a strongly worded letter from Till Hall (Vice President of Operations) to Patty Matthews if she continues to display uncooperative behavior regarding the business development training sessions and new policies that are being enacted.
For example, if Ms. Matthews continues to resist conforming to the new policies that were developed by Davis, she would receive a stern letter from Tim Hall regarding her behavior and possible termination as a direct result.
After the letter has been received and Ms. Matthews has expressed sufficient concern, Jones can state that he interceded on her behalf with Mr. Hall and that she will not be terminated from the bank so long as she attends remedial training sessions in order to get the needed sales training.
All of these actions will have been orchestrated between Davis and Hall with no real intent to terminate Ms. Matthews, rather, the purpose of the letter would be to enhance the position of Jones in the eyes of branch managers as an effective intermediary between them and upper management. By doing so, this increases the power and influence he has over them, resulting in better long term relations.
Reference List
Whetten, D., & Cameron, K. (2011). Developing management skills. (8th ed., pp. 1-279). New Jersey: Prentice Hall.