30 Jun Clashing Top Managers Case Study
Question Description
1) Why are Ellen and Ronnie in a conflict?
2) Has any action/inaction on Matthew’s part contributed to the problem? If so, how?
3) How should Matthew resolve the conflict?
Attachment preview
Clashing Top ManagersThe caller ID on MatthewSmith’s phone read “Kid Spectrum Inc.” It was someone from the Orlando office, probably administrative director Ellen London. She had been in daily contact with Matthew since he purchased the company, a provider of in-home services for autistic children, eight months ago. He appreciated Ellen’s eagerness to help him build the business, even if she was sometimes high-maintenance. Kid Spectrum’s previous owner, Arthur Hammond, had told Matthew that Ellen, with nearly two decades of experience in health services, would be one of his biggest assets. “Matthew, it’s Ellen. I don’t want to bother you again, but we have a situation down here.” Matthew sat back in this chair and readied himself. The “situation” could be anything from the copier running out of ink to the building catching on fire. “I’m calling about Ronnie” she said. Ronnie Ericson was the director of clinical operations in Orlando, a position Matthew had created soon after taking the reins at Kid Spectrum. Ronnie, whose son has Asbergers, had been working with special needs children his entire career and had been with the company for a decade. The other 40 clinicians on staff regularly turned to him for advice. So, it seemed like a no-brainer to promote him to a formal managerial role. “He’s not up to the job” Ellen said. Matthew replied, “That’s a strong statement, Ellen.” “I know, but it’s true. He’s still resisting the new protocols for time sheets. It’s been eight months and he has yet to complete them on time. You know the impact that has on insurer reimbursement. And, he’s hardly ever here in the office.” Matthew responded, “He’s supposed to be in the field 50% of the time. He still has clients.” Ellen answered, “It’s more like 95%. I haven’t seen him since Thursday and you know I’m always around.” Matthew sensed that Ellen was exaggerating but he couldn’t be sure. Managing the Florida-based from Chicago was proving difficult. He had bought Kid Spectrum through search find; a small group of Illinois-based investors had given him money to find an undervalued company and make it more profitable. Their only hesitation about this first venture was Matthew’s plan to run it from a distance. In fact, one investor had suggested he move to Florida for a while. But Matthew was still meeting regularly with the investor group about other potential opportunities. And his wife had no interest in relocating; with two kids under five, she wanted to be near her family. “He doesn’t get that he’s a manager now” Ellen said. “Not only does he fail to comply with your new systems, but he doesn’t seem to care if his clinicians do. I mean, he barely blinks when they call in sick. Right after Memorial Day, we had 14 people out and he didn’t do a thing. We spent the entire day scrambling to find subs.” Matthew responded, worried that his inexperience was showing, “Well that’s certainly not optimal.” Before forming the search fund, he had spent four years at a venture capital firm and the three years as president of one of its portfolio companies—a medical device maker. Until Kid Spectrum, that had been his only operational role. “Ellen, I really need to find out more before passing judgment on Ronnie. I know that he is more laid back than you, but….”Matthew regretted his words immediately. Ellen was sensitive about the fact that people thought she was uptight. “Have you talked to him about any of this?” he asked quickly. “I mention the time sheets every time he calls in and he promises to get to them. But then nothing.” Matthew responded, “I’ll be down next week for the clinical team meeting and I’ll check in with Ronnie then. Like I said, I really need more information.” Ellen answered. “Well, you’re not going to get it in a day trip. Besides, he’ll tell you everything is alright, that the clinical team needs more time to get used to all the new systems. But from my perspective, it’s not time that’s needed. It’s effort. Ronnie makes things really difficult for the office staff.” Matthew responded, “I’ll see if I can come down for longer, maybe a week or two.” He wasn’t sure how his wife would react, but he knew that this was important. He tried to say goodbye, but Ellen kept talking. “When you took over Kid Spectrum, you wanted to run it more efficiently, more profitably. I remember you saying that in the main conference room when we first met you and again in your email.” She sure has a keen memory, Matthew thought. “So, I’m just going to help you make good on your promise.” she said.Next WeekThe team meeting had run long so most people had rushed off to their next appointments. Matthew, who used the conference room as his office while he was visiting, opened his laptop to check email bit then noticed that a senior clinician, Maxine, was lingering in the doorway. “Maxine, can I help you with something?” he asked. “You’re probably getting an earful from Ellen about Ronnie, aren’t you?” She closed the door behind her. Matthew was alarmed by her candor. The few times he had met with Maxine, she seemed quiet. Was Ellen bad-mouthing Ronnie around the office? “Well, I can guarantee he’s not as bad as he says,” Maxine said. “He’s really a good guy. Y’all did the right thing by promoting him.” “I’m glad to hear that” said Matthew. “You know, he’s told us about the new systems, like the one for turning in our hours, and we understand why they’re important. But Ronnie doesn’t drill down on us like Ellen does. She’s way too intense for how we do things here. She always has been. She’s supposed to besupporting us clinicians in our jobs, but she acts like we’re here to serve her. In my opinion, Ronnie focuses on what matters: the patients.” Matthew replied, trying for diplomacy, “The patients are important.” “He understands what they need more than any of us, really—with his son and all” said Maxine. Matthew responded, “OK, Maxine. Thanks for your input.” She turned to open the door and then paused. “If you ask me, Ellen’s the one who’s trouble” she said.
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