Geneone
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PROBLEM SOLUTION: GENE ONE
Problem Solution: Gene One
Problem Solution: Gene One
Gene One is a private biotech company that was established in 1996. With groundbreaking gene technology that eradicated disease in tomatoes and potatoes, the company was able to quickly grow into a $400 million company (University, 2007). Recently, there has been a growing interest in biotechnology on Wall Street and now is the time for Gene One to consider an IPO. By going public the company hopes to raise capital for new development, advertising and marketing. To accomplish this goal, the company must contend with the culture among its researchers while considering organizational changes, develop decision-making processes that allow for communication and feedback from all levels, and determine the best method for maintaining current research standard during the transition.
Situation Analysis
Issue and Opportunity Identification
Gene One determined that an IPO would be the best way to raise capital for new development, advertisement, and marketing if wanted to remain successful. Gene Ones researchers are known for their breakthrough technologies. The researchers are accustomed to a culture that focuses on pure and applied research. With approval from the Board, the Senior Leadership team is left to decide what steps are needed to successfully launch the IPO. Some Board members have provided suggestions for leadership changes and have recommended friends for the transition. Don Ruiz, Chief Executive Officer, must determine how to successfully Gene One while maintaining support from stakeholders and integrity of research. The companys goal to increase profits by 40 percent would then be attainable.
Stakeholder Perspectives/Ethical Dilemmas
Gene Ones Senior Leadership Team had 36 months to decide how the company will transform to increase profits. The Senior Leadership Team at Gene one consists of the Don Ruiz, Chief Executive Officer, Michelle Houghton, Chief Financial Officer, Charles Jones, Marketing Officer, Teri Robertson, Chief Technology Officer, and Greg Thoman, Human Resources Officer. The Senior Leadership Team is interested in making decisions that benefit all stakeholders. The team values its employees and wants to supply customers with superlative technology, but they must also consider profits. Investors are interested in profiting from the technologies and products produced by the company. In order to increase profits Gene One must go public. While transforming the company, the team has to determine how to allow its researchers to perform their research in a way that is conducive to both the manner that they are used to working and demands to produce products that profit the company. Don Ruiz must also determine the structural changes within the Senior team to be sure the transition moves smoothly. Politics must not be the driving force behind these decisions. The team is responsible for making decisions based on what is best for all stakeholders.
Gene One has a dedicated group of researchers and their work has resulted in exceptional technology and pleased consumers. Gene One researchers are passionate about the work that they do that has aided in establishing Gene one as a leader in its market. They are dedicated to performing research that is pure and meaningful. However, they are concerned that the IPO will force them to produce based on profits and not quality. Their fear is that the integrity of their work will suffer as a result. This will not only affect the morale of the researchers who perform the work, but customers will also suffer. Gene Ones customers, mainly farmers, are accustomed to receiving superior technologies from the company. Farmers want to provide customers with disease free and pesticide free produce and Gene Ones gene technology that eliminated disease from tomatoes and potatoes has allowed them to do so. They also seek to make profits from selling these items to customers. Gene One must plan wisely if it wants its researchers to continue to develop technologies that will maintain a healthy customer base.
Problem Statement
Gene One wants to increase profits by 40 percent annually and to achieve this they must go public. The company must focus on the manner in which research will be performed in the future. The current culture is not conducive to the upcoming changes and they may be faced with opposition from employees. Gene One also faces deciding how to determine what structural changes have to be made and determine how to get all employees on board. Finally, Gene One must determine how to maintain production over the next 36 months.
End-State Vision
Following its Initial Public Offering, Gene One will evolve into a leading biotech company. Technology and products will be developed by researchers dedicated to Gene Ones overall mission to provide groundbreaking technology to its customers. Researchers will support the new changes and feel empowered to fulfill their duties because they will be backed by leadership that values integrity in research. Gene One customers will take pride in selling items products produced using Gene Ones technologies and will, as a result, profit greatly. Investors will see profits increase by 40 percent annually and have confidence in a leadership team who makes ethical decisions that benefit all stakeholders.
Alternative Solutions
Gene Ones CEO, Don Ruiz, has to decide how to lead the company through this pivotal change. A change is not the concern of only upper-management; it is the concern of every member of the organization. In carrying out communication, a leader is expected not only to convey his ideas, but also to ensure that his subordinates and all the leaders at all levels in the organization agree to and support these ideas (Leader, 2007). To achieve this, decisions have to be made in a setting where there is representation from employees from all levels and departments. A strategic planning committee with this framework can be developed and this team can serve as the driving force for all structural changes that are made over the next 36 months. Traditionally Don Ruiz has used its Senior Leadership team to make decisions. But, according to the situational leadership model developed by Paul Hersey and Ken Blanchard, effective leaders vary their style with the readiness of followers (McShane & Von Glinow, 2005). Emphasizing the importance of group values and focusing