TO: Frank Curtis
FROM: Tomasz Rudnik
DATE: February 2, 2014
SUBJECT: Case Analysis

Introduction Allied Industries Company decided to acquire Lee Medical Supplies that the annual sale is approximately $300 million but net earning only $12 million. James Fulmer, chief executive officer of Allied Industries promoted his director of fiscal affairs Frank Curtis to president of a company owned by Allied. Frank Curtis’ new responsibility is to turn around the present situation and achieve results up to 18 months. Until today, it was a family managed company with no stress and very pleasant atmosphere. “All employees were paid on a straight salary basis, with seniority the sole criterion for advancement. Some emphasis was given to increase sales each year, but none was given to reduce costs and increasing profits. Employees did indeed find the company a fun place to work, and the feeling of being a part of the family did permeate the company. Such attitudes were, however, accompanied by mediocrity, incompetence, and poor performance”. (Management) Frank Curtis made a company profitable in 18 months but had to implement immediate strategic changes in five areas: the organization's structure, employee rewards and incentives, management information systems, allocation of resources, and managerial leadership style. These changes brought several actions such as three of nine vice presidents have resigned and that four others have been terminated.
Case analysis Frank’s Curtis job was to make company sales and profits compatible with Allied standards. In the period of time that has been given to you all the factors met Allied profile but there are also some other alarms regarding your managing style. It doesn’t mean you are not people orientated person. During the acquisition, you have been told to make sales and profits compatible with Allied standards and you did it in the period of time that has been given to you. The problem is that Allied standards of managing and achieving goals are way different comparing to Lee Medical Supplies. You should first communicate with people what you discovered in the Lee Medical Supplies company as a new president and encourage employees to adapt to the changes. As president, you should also explain what these changes, seems like aggressive and competitive, could help them to adapt quicker and bring benefits to their daily work. Nobody likes changes and since they are good to bad people resist to them very quickly and complain. Employees who have used to work in a certain style of performance for several years might not adapt to change as quick as you would like to. However, good communication and attitude help to break daily routine and understand that change is needed and brings profits to everyone. You are not obligated to employees because to past practices, but you are obligated to employees because to present practice.
Conclusion
I told you that you were independent in managing for 18 months to turn around Lee Medical Supplies Company and make it sales and profits compatible with Allied standards. However, you have to communicate these changes to employees you work with now to continue increasing results. You have to motivate people to change requires a general process of unfreezing, moving, and refreezing. People resist change for a variety of reasons and it is your duty to manage and lead change effectively. If you would act proactively and forge the future by being a shaper more than an adapter, you would avoid misunderstandings and resistance from the employee site. References
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