Options for Implementing a Leadership Change

Options for Implementing a Leadership Change

LDR/531

Juan Campos

June 28, 2010

Ken D. Narducci

University of Phoenix / Santa Teresa Campus

Options for Implementing a Leadership Change

Leadership change and change in general is inevitable within any modern day organization, whether due to normal attrition or strategic alignment. As much as it is inevitable it is also a difficult process that requires both objective and subjective decision making. One such organization facing a leadership change decision and the associated implications is a successful company called Gene One. In 1996 Gene One was launched by Don Ruiz (CEO) and a close knit group of associates. The organization was launched based on a niche biotechnology expertise and an initial investment of two million dollars. The niche technology that Gene One brought to market was a gene technology that eradicated disease in produce such as tomatoes and potatoes. This consumer friendly advancement eliminated the need to use pesticides while harvesting these crops. Due to incredible success in the agricultural market and a competent team structure Gene One grew to a four hundred million dollar a year company in eight short years. Although this growth is impressive, Don Ruiz and the board of directors realize that competition in the biotech industry is fierce and recent signals from willing investors from Wall Street present the company opportunities for target growth and increased market share if they transition from a private to public corporation. Mr. Ruiz with board approval announces a three year strategy to implement an IPO. The announcement is received by the senior staff with mixed feelings and differing opinions. Further compounding the discord, Mr. Ruiz tragically passed away shortly after the decision to go public was made. This obviously presents the board of directors and Mr. Ruiz’s siblings whom as beneficiaries became new majority stakeholders, with a myriad of issues to confront. (UOP,...