Module 03 Project - Rough Draft SubmissionNow that you have co.docx

Module 03 Project - Rough Draft Submission
Now that you have conducted research and prepared a research
outline, you should develop a rough draft of your research
paper. Keep in mind that the final paper is due in Module 05.
Your Rough Draft should include:
· A minimum of five pages
· A minimum of 3 - 5 references
· Follow the logical path of your research paper outline
The Outline is below for you to follow:
Overview and Outline
The Delta Pacific case study gives a presentation of the
challenges that is typically faced by an organization which is in
the process of transiting to a new model of business and is
dependent on the expertise and knowledge of their employees in
building of the good relationship with the customer, instead of
concentrating on the products and services that they are
supplying. Resistance from the employees faces the process of
changing to a new business model (Kotter, 2013). Some of the
reasons attributing to resistance can be categorized into three;
• Logical; this is the fear on the period needed to learn and
adapt to the new model and the potentiality of the undesirable
conditions
• Psychological fear; this is the fear that comes as a result of
status loss or the fear of the unknown
• Sociological; this is the fear of changing to the level of
social interaction.
The second lesson gleaned from the Delta Pacific case is based
on leadership. It can be deduced that the success of every
organization relies on effective leadership that is practiced
within. Thus, in leadership, a firm should be in a position of
choosing the kind of trait that will align with their business
operations. Some of the most practiced traits in successful
organizations include; the transformational style of leadership,

charismatic and transformational style of leadership. Lastly, it
can be learned that for an organization to succeed in its business
activities, employees’ recognition is always crucial. The process
of identification can be enacted through the motivation process
which can be regarding rewards. This always makes the
employee feel appreciated in whatever they are doing within a
firm.
Outline
1) Introduction
In the global business, competition is highly experienced
amongst companies with the aim of winning customers which
increase the profit margin of a company in the long run.
Therefore, it is evident that the industry is characterized by an
increasing change in technology and thus the firms must adapt
to remain competitive in the harsh environment. Therefore,
Delta Pacific will be our area of concentration with regards to
change in the new business model (Kotter, 2013).
2) Overview
This paper will mainly focus on the issues at the Delta Pacific
case and the type of leadership that best fits within an
organization to enhance its success (Cohen, 1995). Leadership
is always crucial since it always gives a light on the direction in
which an organization is headed. This is because the leaders
have the mandate of setting directions and goals of any given
firm. Finally, the paper will include my change model that will
enact change. In the Delta Pacific case, the issues being
experienced is the resistance to switch to a new business model,
leadership crisis, and employee issue. Resistance to change is
being facilitated by factors such as psychological fear,
legitimate fear, and the sociological factors.
3) Thesis
My business model would be the adaptation of Lewin’s Change
Management Model. This is because the employees can easily
adapt it. An organization's culture is always the center for the
success of any business entity since it counts removes any form
of fear that an employee may have when a change is to be

implemented. The leadership trait that would work best is the
transformational leadership. This is because it is mostly applied
in the motivation of employees in performing the organizational
tasks. This is usually critical since it always contributes to the
recognition of employee through rewards or promotion.
4) Supporting Ideas
a) Acceptance of the change model process:
This model can readily be accepted by employees since it
always explains employees ‘expectation in the new change that
is to be implemented. This reduces the resistance of the
employees in accepting the new model.
b) Transformational Leadership theory:
The transformational theory can best apply to this kind of
model. This is because there is increased coordination and
teamwork with the employees. This is a recipe to less resistance
to new business model.
c) Motivation:
This can work for the organization since employees will feel
recognized in their line of duties. Hence reduce the new change
that is to be implemented.
5) Recommendation:
a) Application of Good leadership traits:
Leadership plays a crucial role in the coordination of the
organizational activities and thus the trait selected should work
for the organization.
b) Continuous Review of the Employees performance:
The organization should review the organizational performance
in a continuous basis. This is to identify problems that may
cause poor performance in an organization.
6) Conclusion
Change is always crucial for the success of any organization
and thus leaders should come up with strategies that would
reduce the resistance to the implementation. Leaders should
consider involving motivational factors to enhance productivity
amongst employees. This is because every individual in the
organization always feels good to be recognized in their line of

duties.
Reference
Cohen, A. N., Carlton, J. T., & U.S. Fish and Wildlife Service.
(1995). Nonindigenous aquatic species in a United States
estuary: A case study of the biological invasions of the San
Francisco Bay and Delta. Arlington, VA. Retrieved from
http://nsgl.gso.uri.edu/conn/connt95002/connt95002index.html
Kotter, J. P. (2013). Leading change. Boston, Mass: Harvard
Business School Press.
Module 03 Project - Chart
Reflecting upon your Module 02 Discussion post (my response
is below), utilize your response to create a chart or diagram
representing the change model that you are implementing -make
sure to create a comparative demonstrating showing the old
model against your new change plan.
Example: If you have chosen to use Fiedler's Contingency
Model as the change model to utilize with your project, your
chart will reflect how your will create organization change
based upon the model's situational leadership style and
situational favorableness.
Once you have created your change model chart, write a short
description of its elements.
Note: The chart will be included in your final project proposal.
Example of Charts:
Module 2 Discussion Post
For this discussion, reflect upon your chapter and module

readings and articulate your personal view as to which model
would be most effective in achieving results in your project
case study. Since the selection of a model must apply to a given
situation, please provide an example of how your selected
model will be implemented in your change initiative.
My Response:
I think that the Fieldler's Contingency Model would be the most
effective in achieving results in the project now because the
model states that effective leadership depends not only on the
style of leading but on the control over a situation. There needs
to be good leader-member relations, task with clear goals and
procedures, and the ability for the leader to hand out rewards
and punishments.
Since Delta is now a client driven company and they will be
working with people instead of producing mass numbers of
products, they need someone that can help with the relationship
issues and talents of the people of Delta to make the client feel
they are what they need from them.
Previous Project Assignment to use Model in below
Overview and Outline
The Delta Pacific case study gives a presentation of the
challenges that is typically faced by an organization which is in
the process of transiting to a new model of business and is
dependent on the expertise and knowledge of their employees in
building of the good relationship with the customer, instead of
concentrating on the products and services that they are
supplying. Resistance from the employees faces the process of
changing to a new business model (Kotter, 2013). Some of the
reasons attributing to resistance can be categorized into three;
• Logical; this is the fear on the period needed to learn and
adapt to the new model and the potentiality of the undesirable
conditions
• Psychological fear; this is the fear that comes as a result of
status loss or the fear of the unknown
• Sociological; this is the fear of changing to the level of

social interaction.
The second lesson gleaned from the Delta Pacific case is based
on leadership. It can be deduced that the success of every
organization relies on effective leadership that is practiced
within. Thus, in leadership, a firm should be in a position of
choosing the kind of trait that will align with their business
operations. Some of the most practiced traits in successful
organizations include; the transformational style of leadership,
charismatic and transformational style of leadership. Lastly, it
can be learned that for an organization to succeed in its business
activities, employees’ recognition is always crucial. The process
of identification can be enacted through the motivation process
which can be regarding rewards. This always makes the
employee feel appreciated in whatever they are doing within a
firm.
Outline
1) Introduction
In the global business, competition is highly experienced
amongst companies with the aim of winning customers which
increase the profit margin of a company in the long run.
Therefore, it is evident that the industry is characterized by an
increasing change in technology and thus the firms must adapt
to remain competitive in the harsh environment. Therefore,
Delta Pacific will be our area of concentration with regards to
change in the new business model (Kotter, 2013).
2) Overview
This paper will mainly focus on the issues at the Delta Pacific
case and the type of leadership that best fits within an
organization to enhance its success (Cohen, 1995). Leadership
is always crucial since it always gives a light on the direction in
which an organization is headed. This is because the leaders
have the mandate of setting directions and goals of any given
firm. Finally, the paper will include my change model that will
enact change. In the Delta Pacific case, the issues being
experienced is the resistance to switch to a new business model,
leadership crisis, and employee issue. Resistance to change is

being facilitated by factors such as psychological fear,
legitimate fear, and the sociological factors.
3) Thesis
My business model would be the adaptation of Lewin’s Change
Management Model. This is because the employees can easily
adapt it. An organization's culture is always the center for the
success of any business entity since it counts removes any form
of fear that an employee may have when a change is to be
implemented. The leadership trait that would work best is the
transformational leadership. This is because it is mostly applied
in the motivation of employees in performing the organizational
tasks. This is usually critical since it always contributes to the
recognition of employee through rewards or promotion.
4) Supporting Ideas
a) Acceptance of the change model process:
This model can readily be accepted by employees since it
always explains employees ‘expectation in the new change that
is to be implemented. This reduces the resistance of the
employees in accepting the new model.
b) Transformational Leadership theory:
The transformational theory can best apply to this kind of
model. This is because there is increased coordination and
teamwork with the employees. This is a recipe to less resistance
to new business model.
c) Motivation:
This can work for the organization since employees will feel
recognized in their line of duties. Hence reduce the new change
that is to be implemented.
5) Recommendation:
a) Application of Good leadership traits:
Leadership plays a crucial role in the coordination of the
organizational activities and thus the trait selected should work
for the organization.
b) Continuous Review of the Employees performance:
The organization should review the organizational performance
in a continuous basis. This is to identify problems that may

cause poor performance in an organization.
6) Conclusion
Change is always crucial for the success of any organization
and thus leaders should come up with strategies that would
reduce the resistance to the implementation. Leaders should
consider involving motivational factors to enhance productivity
amongst employees. This is because every individual in the
organization always feels good to be recognized in their line of
duties.
Reference
Cohen, A. N., Carlton, J. T., & U.S. Fish and Wildlife Service.
(1995). Nonindigenous aquatic species in a United States
estuary: A case study of the biological invasions of the San
Francisco Bay and Delta. Arlington, VA. Retrieved from
http://nsgl.gso.uri.edu/conn/connt95002/connt95002index.html
Kotter, J. P. (2013). Leading change. Boston, Mass: Harvard
Business School Press.
ExampleWBSTitleDescriptionStart DateEnd DateTotal
estimated daysPoint of Contact (POC)1.0Develop Work
Breakdown Structure (WBS)Description of work to be
completed / milestone1/5/161/5/1611.1Review customer
statement of work (SOW)Read and review the statement of

work1/6/161/9/163Project Manager1.1.1Identify all project
deliverables and milestonesHighlight and identify all project
deliverables and milestones associtated with the
project1/6/161/9/160Project Manager1.2Forward a copy of the
customer statement of work to the project teamForward a copy
of the customer statement of work to all project team
members1/10/161/10/161Project Manager1.2.1Begin
development of the WBSDevelop the
WBS1/10/161/10/161Project team1.3Project team reviewSet up
a SOW team review with the project
team1/13/161/13/161Project team1.3.1Identify all top level
work packagesHighlight and identify all top level milestones /
deliverables1/14/161/15/161S. Johnson1.4Identify all lower
level work packagesidentify all work associated with the top
level milestones1/14/161/15/161M. Jones1.4.1Project team
approvalSet up a project team meeting for WBS review /
approval1/17/161/17/161Project team
Proj. Work Breakdown StructureWBSTitleDescriptionStart
DateEnd DateTotal estimated daysPoint of Contact
(POC)1.01.11.1.11.21.2.11.31.3.11.41.4.12.02.12.1.12.22.2.12.3
2.3.12.42.4.13.03.13.1.13.23.2.13.33.3.13.43.4.14.04.14.1.14.24
.2.14.34.3.14.44.4.15.05.15.1.15.25.2.15.35.3.15.45.4.16.06.16.
2.16.26.2.16.36.3.16.46.4.17.07.17.1.17.27.2.17.37.3.17.47.4.18
.08.18.1.18.28.2.18.38.3.18.48.4.19.09.19.1.19.29.2.19.39.3.19.
49.4.110.010.110.1.110.210.2.110.310.3.110.42.4.1
Module 03 Written Assignment - Effectiveness of Change
Recognizing the style best slated for leading change is
contingent upon the situation.
In order to deploy the most appropriate style, one must
understand the similarities and differences.
· For this assignment, analyze the similarities and differences
between charismatic and transactional leadership and relate the
effectiveness of each upon achieving change.
· Be sure to include an example of at least three similarities and

three differences.
· Then, identify an experience in the workplace or involvement
in an organization where deployment of either style would be
the preferred choice for attaining lasting change.
· Please utilize references found in the Rasmussen College
Library to support your analysis.
Assignment requirementsare as follows:
1. The body of the paper should be 1-2 pages.
2. The paper should include an APA formatted cover page and
reference page.
3. The paper should include at least 2 peer-reviewed sources,
such as journal articles from the Rasmussen Library.
Notes for the SOW Document
Please review the attached document to help prepare your
Statement of Work (SOW) assignment this week. Please note
the areas highlighted in green as they give a good overview of
what is required. Please note the "Work Requirements" section
has to include a description of the anticipated phases that the
project will require. You will then transfer these phases into
specific tasks to the WBS Excel file. These tasks will include
dates, assignments, etc.
Note: Please write the Statement of Work from the U.S. Army's
standpoint as SOW's are commonly used with Request for
Proposals (RFP's).
Statement of Work Template
www.ProjectManagementDocs.com
Statement of Work Template

This Statement of Work Template is free for you to copy and
use on your project
and within your organization. We hope that you find this
template useful and
welcome your comments. Public distribution of this document is
only permitted
from the Project Management Docs official website at:
Statement of Work (SOW)
Company Name
Street Address
City, State Zip Code
Date
Table of Contents
2Introduction/Background
2Scope of Work
2Period of Performance
3Place of Performance
3Work Requirements
4Schedule/Milestones
5Acceptance Criteria
5Other Requirements

Introduction/Background
The Statement of Work (SOW) is a document which describes
the scope of work required to complete a specific project. It is
a formal document and must be agreed upon by all parties
involved. In order to be effective, the SOW must contain an
appropriate level of detail so all parties clearly understand what
work is required, the duration of the work involved, what the
deliverables are, and what is acceptable. This section should
provide a general description of the project as well as highlight
the project’s background and what is to be gained by the
project. As the SOW often accompanies a request for proposal
(RFP), the SOW introduction and background is necessary for
bidding vendors to familiarize their organizations with the
project.
Smith Consulting Group (SCG) has recently approved the
Website Redesign Project in support of its strategic plan to
enhance marketing and customer service. In order to provide
more timely feedback to prospective clients and improved
customer interaction, the Website Redesign Project will focus
on building a content rich website which provides a simplified
and more user-friendly approach for existing and potential
clients. It is imperative that SGC utilizes its web site as a
platform for communicating new developments, client
testimonials, recent news, and other industry specific
information. SGC also realizes the importance of working with
clients to develop tailored consulting solutions which the new
web site will allow the ability to do. In order to accomplish this,
SGC seeks to outsource the design, testing, implementation, and
training for the new website. SGC anticipates that its new
website will move the company forward in its multi-tiered
approach to winning new clients and capturing additional
market share.Scope of Work
This section should provide a brief statement of what you
expect to accomplish as a result of this scope of work. While
specific deliverables and tasks will be presented in the Work

Requirements section, this section should highlight what is and
is not included in the scope of the project in broader terms.
The scope of work for the Website Redesign Project includes all
planning, execution, implementation, and training for a new
public-facing internet site for SCG. The selected vendor will be
responsible for the design of the new website based on feedback
to be provided by SCG. Each stage of the project will require
approval from SCG management before moving on to the next
stage. The selected vendor must ensure it has adequate
resources for designing, building, testing, and implementing the
new web site and is staffed for the training of SGC personnel as
well. Specific deliverables and milestones will be listed in the
Work Requirements and Schedules and Milestones sections of
this SOW.
Not included in the scope of work for this project is any work
on SCG’s internal intranet site.
Period of Performance
This section should define the time period over which the
project will occur. The timeframe for the project can be pre-
determined or based on a completion date to coincide with some
external requirement (i.e. new Government regulation). It is
important to define the period of performance since this is
usually a variable in the project’s cost. Additionally, if there
are delays in a project and it will not be completed within the
defined period of performance, a contract modification may be
required and the costs of the project will increase as well.
The period of performance for the Website Redesign Project is
one year (365 days) beginning on 2 March 20xx through 3
March 20xx. All work must be scheduled to complete within
this timeframe. Any modifications or extensions will be
requested through SCG and vendor contracting officers for
review and discussion.Place of Performance
This section should describe where the work will be performed
by the vendor. In some cases the vendor may perform all or
some of its work on site at the customer’s location. This is
usually dependent on the type of industry or work being

performed. It is important to define this in case the customer
requires the vendor to work at the customer’s site and to clarify
any equipment and/or work space that will be provided.
The selected vendor for the Website Redesign project will
perform a majority of the work at its own facility. The vendor
will be required to meet at SCG’s facility once per week (day
and time TBD) for a weekly status meeting. Additionally, all
project gate reviews will be held at SCG’s facility and attended
by the vendor. SCG will provide and arrange for meeting
spaces within its facility for all required vendor meetings. Once
the project reaches the training phase, all training will be
conducted at SCG’s facility.Work Requirements
This section should include a description of the actual tasks
which the project will require. This should include what tasks
need to be completed in order for successful completion of this
project/contract. As with all other portions of the SOW, every
effort should be made to include as much detail as possible.
As part of the Website Redesign Project the vendor will be
responsible for performing tasks throughout various stages of
this project. The following is a list of these tasks which will
result in the successful completion of this project:
Kickoff:
· Vendor will create and present detailed project plan including
schedule, WBS, testing plan, implementation plan, training
plan, and transition plan
· Vendor will present project plan to SCG for review and
approval
Design Phase:
· Work with SCG to gather requirements and establish metrics
· Create site design based on collected requirements
· Develop site design proposal for SCG review and approval

· Present written status at weekly meeting
Build Phase:
· Vendor will complete all coding for approved site design
· Vendor will provide SCG with a detailed testing plan
· Vendor will include all content provided by SCG on
redesigned web site
· Vendor will conduct testing in both their iLab as well as in a
limited beta release
· Vendor will resolve any coding and site issues identified in
testing
· Vendor will compile a testing report to present to SCG for
review/approval
Implementation Phase:
· Vendor will implement the newly redesigned web site on SCG
servers
· Vendor will begin providing 24x7 web site support at this
point forward until the end of the period of performance
Training Phase:
· Vendor will provide training in accordance with approved
training plan provided in the kickoff

Project Handoff/Closure:
· Vendor will provide SCG with all documentation in
accordance with the approved project plan
· Vendor will present project closure report to SCG for review
and approval
· Vendor will complete the project requirements checklist
showing that all project tasks have been completed
· Vendor will conclude 24x7 web support at 11:59pm on the
final day of the period of performance
Schedule/Milestones
This section should define the schedule of deliverables and
milestones for this project. Since the SOW often accompanies
the RFP for the project, it is imperative that all milestones,
tasks, and schedule information are as accurate as possible since
vendors will need to consider these items in their proposals.
The below list consists of the initial milestones identified for
the Website Redesign Project:
RFP/SOW Release
January 2, 20xx
Vendor Selection Review

February 1-28, 20xx
Vendor Selection
March 1, 20xx
Period of Performance Begins
March 2, 20xx
Website Design Review
August 31, 20xx
Website Implementation Review
November 30, 20xx
Implementation Complete
December 31, 20xx
Training Complete

February 20, 20xx
Project Completion Review
February 25, 20xx
Project Closure/Archives Complete
March 3, 20xxAcceptance Criteria
This section defines how the customer will accept the
deliverables resulting from this SOW. The acceptance of
deliverables must be clearly defined and understood by all
parties. This section should include a description of how both
parties will know when work is acceptable, how it will be
accepted, and who is authorized to accept the work.
For the Website Redesign Project the acceptance of all
deliverables will reside with SCG’s Vice President of
Marketing. The VP of Marketing will maintain a small team of
three advisors in order to ensure the completeness of each stage
of the project and that the scope of work has been met. Once a
project phase is completed and the vendor provides their
report/presentation for review and approval, the VP of
Marketing will either sign off on the approval for the next phase
to begin, or reply to the vendor, in writing, advising what tasks
must still be accomplished.
Once all project tasks have been completed, the project will
enter the handoff/closure stage. During this stage of the
project, the vendor will provide their project closure report and
project task checklist to SCG’s VP of Marketing. The
acceptance of this documentation by SCG’s VP of Marketing
will acknowledge acceptance of all project deliverables and that

the vendor has met all assigned tasks.
Any discrepancies involving completion of project tasks or
disagreement between SCG and the chosen vendor will be
referred to both organizations’ contracting offices for review
and discussion.
Other Requirements
Any special requirements, such as security requirements
(personnel with security clearance and what level, badges, etc.)
should be described in this section. There should also be a
description of any IT access restrictions/requirements or system
downtime/maintenance if required.
All vendor project team members will submit security forms to
SCG for clearance and access badges to the facility. All vendor
programmers and quality control team members will be granted
access to SCG servers and all necessary IT functions. They will
also be given temporary SGC accounts which are to be used
only for work pertaining to the Website Redesign Project. Upon
completion of the project these accounts will be closed.
All programming and testing will be done in the iLab. A
network outage will be scheduled for the implementation phase
of this project. Prior to the network outage, all servers will be
backed up and a notification will be distributed to all users.
Acceptance
Approved by:
Date:
<Approvers Name>
<Approvers Title>

This free Statement of Work Template is brought to you by
PAGE
4
Module 03 Course Project - Statement of Work (SOW) and
Work Breakdown Structure (WBS)
Statement of Work (SOW) Document:
In 2-3 pages, develop the project Statement of Work document
to include the following information:
· Business need
· Product scope description
· Strategic plan
ALL INFORMATION NEEDED IS ATTACHED!
www.hbr.org
A N D C O M M E N T A R YH B R C A S E S T U D Y
Who Goes, Who Stays?
by David A. Light
•
How should Steve
decide who stays
and who goes?
Four commentators offer
expert advice.

Reprint R0101A
For exclusive use Rasmussen, 2013
This document is authorized for use only in B362c by Dev
Team, Rasmussen from February 2013 to August 2035.
http://www.hbr.org
http://harvardbusinessonline.hbsp.harvard.edu/relay.jhtml?name
=itemdetail&referral=4320&id=R0101A
H B R C A S E S T U D Y
Who Goes, Who Stays?
by David A. Light
harvard business review • january 2001 page 1
HBR’s cases, which are fictional, present common managerial
dilemmas
and offer concrete solutions from experts.
C
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The merger between two pharmaceutical companies generated
headlines first—and then headaches. One reason: CEO Steve
Lindell
has two executives for every available slot. As the stock price
drops and
talented people head for the exits, he must quickly decide whom
to
keep and whom to let go. Pass the aspirin.
The merger announcement between DeWaal
Pharmaceuticals and BioHealth Labs was
front-page, top-of-the-hour news. Pictures of
CEO Steve Lindell and chairman Kaspar van de
Velde, beaming at each other like long-lost
friends at a college reunion, had appeared in
newspapers around the world. DeWaal, based
in the Netherlands, was an established Euro-

pean drugmaker, and BioHealth, headquar-
tered just north of New York City, had in recent
years become competitive at the highest tier of
the market. Both companies made and sold a
wide range of drugs, from over-the-counter
pain relievers to AIDS medications. The new
megacompany, DeWaal BioHealth, would reap
the benefits of scale: it would consolidate
plants and staff while having more products to
push through its distribution channels. Global
headquarters would be in New York, but Euro-
pean manufacturing and sales would continue
to be directed from Rotterdam. The new com-
pany’s combined revenues were projected to
top $8 billion.
Now, two months later, the TV cameras had
moved on to a new story, and the hard labor of
integration loomed. Ever since the announce-
ment, Steve had worked tirelessly on clearing
the regulatory hurdles presented by the FTC
and the European Commission. And he noted
with a mixture of satisfaction and relief that all
signs pointed toward approval in the near
future.
Yet Steve knew that the anticipated victory
would be just the beginning of the game. The
real challenge would lie in bringing together
two very different cultures as quickly and effi-
ciently as possible. He had to get the new com-
pany moving, and the first hurdle—it looked
more like a pole vault to Steve—was selecting
the top layers of management. At the moment,
there were some 120 people on two continents

for about 65 senior-level jobs.
Who Goes, Wh o Stays?•••HBR CASE ST UD Y
David A. Light is an associate editor at
HBR.
Steve drained his third cup of coffee of the
morning and checked his watch. Already 11 AM.
He’d been at the office since 6:30 and in meet-
ings for the past three hours. Now he had an
hour to prepare for his meeting with Kaspar at
one of New York’s finest restaurants. Steve had
suggested the company cafeteria, but Kaspar
had cajoled him into making the drive to the
city by invoking “the need to maintain a civi-
lized life in this frantic world of ours.” The
meeting’s agenda consisted of one item: decid-
ing who would fill the high-level management
posts.
The Exodus
As Steve gathered up the mass of papers he
would need and stuffed them into his brief-
case, there was a knock on his half-open door.
Alison Whitney poked her head in and said,
“Hey—got a minute?”

Alison was BioHealth’s director of sales and
marketing. She had shot into that position a
year ago, at age 33, after establishing herself as
the company’s best sales rep. She had an easy,
bantering relationship with Steve and was
known for having her finger on the organiza-
tion’s pulse.
“I’m just out the door. What’s up?”
“Yeah, I know, I know. You’re meeting with
Kaspar—that’s what I need to talk with you
about. I’ll keep it brief.”
“Fire away.”
“I just have to let you know, before you
make any final decisions about people, that
everyone, and I mean everyone, here at corpo-
rate is terrified. Right or wrong, they think Kas-
par is calling the shots. We’ve already lost,
what, five people? And I can tell you, without
naming names, that I know of three or four
others who are weighing serious offers right
now. Like I said, I had to let you know.”
This wasn’t the first time Steve had heard
that people were confused about who was in
charge. The question had already been raised
by a handful of Wall Street analysts and a Busi-
nessWeek reporter. The confusion puzzled and
irritated Steve. He was, after all, the leader of
the bigger organization and the new com-
pany’s CEO—end of story. True, Kaspar had
lost none of the drive and charisma that had

made him one of Europe’s most respected
CEOs, but he was 62 and widely presumed to
be on the road to retirement. That’s why he
had agreed to the position of chairman, Steve
figured. But Kaspar, with his ability to charm
the media, seemed to be creating the percep-
tion that he had more say in key decisions
facing the new company than Steve.
The two men had worked well together dur-
ing the merger negotiations. They had care-
fully traded off the positions at the very top of
the new organization. Kaspar had insisted on
having his people lead HR, operations in Eu-
rope, and global marketing; Steve, in return,
had held out for COO, CFO, and head of R&D.
Overall, Steve had been happy with the horse
trading. The reports of tension between the
two were based only on rumors, but Steve
knew rumors could sometimes become facts if
they are not quickly dispelled. All this flashed
through his mind as he faced Alison.
Steve exhaled a big rush of air. He already
knew what Alison didn’t: that DeWaal’s Albert
Schenk, based on his extensive knowledge of
global markets, was going to take over as the
new company’s director of sales and market-
ing. Steve was planning to offer Alison a job as
head of U.S. marketing, but he wasn’t sure
she’d take it. He hated the thought of losing
her.
“Look, Alison, do me a favor. Try to calm
people down a little. I can guarantee you that

our best people will have jobs—I’ll see to it
one way or another. And remember: this deal
is going to be rewarding financially to the peo-
ple who stay—that includes you. So a little
more patience is in order. Okay?”
After a pause, Alison quietly responded.
“Sure. Okay. Well.” She looked a little embar-
rassed. “Have a good lunch, and watch out for
that third martini.”
Steve, who rarely drank, forced a smile.
With a short wave, Alison left, and Steve real-
ized that his heart was pounding. Four more
people about to leave? That was news he could
have done without. Just this morning, he had
learned that a leading brokerage was down-
grading BioHealth’s stock from buy to hold.
Steve had watched nervously in the past two
months as BioHealth’s stock price dipped 20%
once the initial euphoria over the deal wore
off. He knew that part of the drop was attribut-
able to a general softening of the market, but
stories about difficulty with the integration
process had certainly contributed. As the com-
pany’s stock options became less valuable to
his managers, could he really be so surprised
that people were heading for the exits?

Steve picked up the phone and dialed Bruce
Bollinger, who would accompany him into the
city.
“Bruce, you ready to roll? Let’s go.”
Going Nowhere Fast
Bruce had been BioHealth’s head of HR. It
was widely known that Bruce wasn’t exactly a
workaholic, but in Steve’s eyes he made up for
his 9-to-5 mentality in other ways. Bruce and
Steve went way back. They had worked to-
gether for years, and the two played golf to-
gether every chance they got. Bruce was
known for his stand-up comedy routines at
company functions and his good humor on
the golf course, which he treated like a second
office. More important, he wasn’t afraid to
give his boss tough messages when he thought
Steve needed to hear them, and he had a way
of cutting through the baloney at staff meet-
ings. When Kaspar had insisted on naming
Christian Meyer as the head of HR, Steve had
reluctantly agreed to demote Bruce to director
of corporate training.
As Steve walked out of his office, he heard
Bruce booming down the hall at him. “Did you
see that Tiger pulled out another one? I
watched all 18 holes. Unbelievable.”
Steve waited for him to catch up and re-

plied, “No, no, I missed it. These days, I’m not
sure I’d recognize my clubs if they fell on my
big toe.”
“You’ve got to get out more.” Bruce contin-
ued to analyze Tiger’s round until they ducked
their heads into the car.
As they drove along, at first rapidly and then
haltingly in the stop-and-go traffic of Manhat-
tan, Steve unburdened himself to Bruce about
the tough staffing decisions that lay ahead.
“You know, I don’t care what the invest-
ment bankers say, I like to go with my gut. I
like to look people in the eye and find out
what they’ve really got. And I’m not that im-
pressed with a lot of the people from DeWaal.
Somehow our guys just seem to get it, and I
can’t get a good read on the Dutch. All right,
so eight of them have left us already. They
don’t want to move to New York. They’re fear-
ful. Alison tells me that our people are too. I
mean, I knew the headhunters would be hov-
ering, but I can’t believe they got to Sandy
Allen. I always thought she would take my job
someday, and what really gets me is that I
negotiated hard to get the CFO job for her.
Anyway, I’m sympathetic to everyone’s fears
and I’m trying to be as objective as possible,
but...Bruce, help me out here.”
Bruce looked up from the interview notes
and résumés he’d been flipping through. “I
think this meeting today is crucial,” he said.

“We’ve got to get resolution on our key people.
Don’t worry, I’ll take on Meyer.”
Steve hated to admit it, but Christian
Meyer had become a bit of a thorn in his
side. He wanted to do a lot of testing of the
executives—for IQ, for emotional intelligence,
for who knew what else. And he constantly
talked about the fairness of the process. Steve’s
view was that fairness was a noble goal—and
one they would strive for—but he had to look
at the big picture. And speed, as the market
was making clear, was crucial.
“We need to get on with this. Even if we
don’t make the perfect choices right now, we
can fix things later. Meanwhile, we’ve got to
consolidate where we can and get the reps up
to speed on all our products.”
As they pulled up to the restaurant, Bruce
got in a final word. “One more thing: if I see
Kaspar working his charms on you and getting
the upper hand, I’ll signal you by knocking
over my beer.”
Trouble Abroad
They had reserved a small private room at the
restaurant. Steve and Bruce were on time; Kas-
par and Christian, staying at a nearby hotel,
walked in 15 minutes later. After an exchange
of pleasantries, the four sat down and ordered.
Steve, remembering what he’d been told
about European corporate etiquette, held
back from jumping straight to business. He

reminded himself that they had the rest of the
afternoon. Still, unlike his counterpart, he
wasn’t much for small talk—and Kaspar’s dis-
course ran from the fate of the euro to Quentin
Tarantino, from Afro-Cuban music to the prob-
lems of reaching the world’s poorest people
with desperately needed medications.
That last topic, in a roundabout way, finally
got them to the task at hand as the coffee ar-
rived. Both DeWaal and BioHealth had several
foreign plants, and Steve wanted to nail down
which ones would remain open and who
would run them.
Steve’s plan for Asia went like this: they
would close the DeWaal plant in Indonesia,
which was redundant, and keep the BioHealth
plant in Shanghai. Steve believed it was imper-
ative to maintain a presence in China, and he
was prepared to offer someone from DeWaal
the number two spot there to sweeten the pill.
Meanwhile, the Dutch company had an

operation in Bangalore, India, and the U.S.
company had one in Bombay. The Bangalore
plant was extremely efficient, and Steve was
prepared—in the interests of fairness and de-
spite his fear of seeing the headline “Lindell
Caves to van de Velde (Again)”—to close down
the Bombay operation. The question was who
to put in charge. The Dutch fellow—what was
his name, Peter Krug?—had headed up the
Bangalore operations for three years, and his
résumé was impressive. But Steve had a candi-
date too. Vijay Naipaul, who had been in the
United States the past ten years since coming
to business school from Delhi, was an ambi-
tious and talented executive. If not for the
merger, Steve would have put him in charge of
operations at the Bombay plant. Being in
charge of India would be his dream job, and
Steve had been told by his COO that Vijay
might walk if he didn’t get the job. Steve
hoped that Kaspar wasn’t too attached to Krug.
He quickly laid out his thoughts on Asia,
hoping to move on to the touchy question of
R&D management.
Kaspar looked up from his espresso and
broke into a broad grin. “Oh dear, Steve, what
are you saying. You know they will have my
head in Rotterdam if we close the Indonesia
plant—ties to the former colonies and all that.
And you know, there are outstanding people
running that plant. Really and truly! As for In-
dia, well, yes, by all means close the plant, but
can we decide so quickly who will run the re-
maining one? Christian tells me we have a

ways to go in the process of deciding such
matters—isn’t that so, Christian?”
Steve jumped in. “Well, I’m sure we could
find another spot for Krug. Perhaps if he
and Naipaul were coleaders of the Bombay
plant...”
He was interrupted by the sound of a beer
bottle falling to the floor.
How should Steve d ecide w ho stays and who
goes?
Case Comm entar ySee
• Four commentators offer expert advice.
page 5 harvard business review • january 2001
Who Go es, Who Stays? • HBR CAS E STU DY
Case Comme ntar y
by David Kidd
How should Steve decide who stays and who goes?
Many mergers do not create the shareholder
value expected of them. The combination of
cultural differences and an ill-conceived

human resource integration strategy is one of
the most common reasons for that failure.
Given the well-publicized war for talent, I am
constantly surprised by how little attention is
paid to the matter of human capital during
mergers.
Steve Lindell must be single-minded in
staffing the new organization with outstand-
ing people. For all his emphasis on speed, he
has moved too slowly. At the same time, he is
unwise to think he can make selection deci-
sions now and fix them later if they don’t work
out. In light of today’s competition for world-
class executives, this is extremely shortsighted.
It is irresponsible to allow talented individuals
to leave, and it is time consuming, risky, and
expensive to replace them later.
Steve seems to have shown up for the lunch
meeting without an overall plan for HR inte-
gration. It’s not surprising, then, that he’s pre-
pared to make decisions haphazardly. He
should have come to the table with a plan that,
at the very least, included a strategy to retain
key executives (possibly by paying them a
bonus when the merger is completed), a com-
munication plan to ease their fears, an evalua-
tion and selection process for the top levels in
the new organization, and a process to harmo-
nize the two companies’ contractual terms and
compensation plans—which are often quite
different in the United States from those in
Europe.
Although off to a bad start, the lunch meet-

ing is still salvageable. Steve and Kaspar must
get to work and put together an overall plan.
Once the two leaders have agreed to a plan,
Steve should embark on a formal effort to eval-
uate all the top executives of the two compa-
nies. An appraisal process would be helpful to
Steve for several reasons:
• Executive Competencies. It’s not clear
that anyone has considered the competencies
that DeWaal BioHealth will require from its
leadership group to deliver superior perfor-
mance. The first step in the process should be
to define these competencies and their associ-
ated behavioral indicators.
• Objectivity. Steve admits to Bruce that he
is not very impressed with the Dutch execu-
tives. This is a common problem in any merger,
where the tendency is to favor the people you
know. It’s important to evaluate the executives
in a way that is transparent to both sides; the
key is to take the bias and emotion out of the
selection process and ensure that the most
qualified people are chosen.
• Fairness. Christian isn’t the only one con-
cerned about fairness; the Americans are also
worried about who has the power and how
that’s going to affect them. Using an objective
appraisal process lets executives know that the
deck is not stacked against them. It gives them
ample opportunity to present their credentials
and demonstrate how they match the compe-
tencies that the new company requires.

• Benchmarking. Unless the merged com-
panies are absolutely committed to appoint-
ing everyone from within, the appraisal pro-
cess should measure all executives against their
peers outside the company.
The best approach, in my experience, is to
bring in outside help to perform the appraisal.
External consultants can provide valuable
expertise to the HR integration process, con-
ducting in-depth, structured interviews and
collecting 360-degree feedback. As objective
participants in the process, these outsiders view
the situation without the baggage of internal
politics, loyalties, and cultural or power clashes.
They are more likely to make accurate assess-
ments of how the candidate pool of executives
matches the required competencies. They also
tend to be more creative in identifying other
roles within the company for those people who
are real assets but who came in second during
the competition for slots. And outsiders offer
a much-needed benchmarking perspective,
pointing out when the company might need to
go outside to fill a newly defined role.
The sad truth is that Steve could have
avoided losing valuable employees by focus-
ing on the problem sooner. Imagine how
much better off he would be if he had con-
ducted the evaluation of top executives as part
of the due-diligence process, as some forward-
thinking companies are doing today.
Steve, unfortunately, is learning the hard

way about the challenges of integration. But if
he adopts this approach, he has every chance
of retaining his key executives and assembling
a great team. This will serve him well on the
road to a successful merger.
David Kidd is a partner at Egon Zehnder
International in Chicago, where he leads the
firm’s global management appraisal process.
Steve is unwise to think
he can make selection
decisions now and fix
them later if they don’t
work out.
Case Comme ntar y
by Lawrence J. DeMonaco
Steve has brought a softball to a hardball
game. He’s forgotten that the success of any

merger or acquisition starts with an under-
standing of power—who has it and how you
use it. Now Steve needs to push harder on Kas-
par to move the integration along. He’s had
enough experience with the DeWaal leader to
recognize that Kaspar’s behavior at the lunch
is Kaspar’s character—period. If Steve contin-
ues to try to “understand” Kaspar, he’ll be-
come even more tentative. He has to say to his
counterpart, “We’ve done enough noodling.
It’s time to make decisions.” Because making a
decision—even one that leads you to say later,
“I wish I hadn’t done that”—is better than
doing nothing at all.
In the integration process, speed is critical.
A few years ago, I talked with 25 CEOs of com-
panies that we had acquired and asked them
to identify the one thing we should have done
differently in the process. All but one said
that we hadn’t gone fast enough with the
integration.
What Steve needs to do immediately is
bring together the top people they have al-
ready chosen and make them into the nucleus
of a selection team. I’m not sure, however, if ei-
ther guy from HR should be involved. They
both have serious limitations. Christian can’t
make decisions himself; he wants test results or
a computer to do the job for him. Bruce, on
the other hand, has some good instincts, and
he’s not afraid to push back and tell Steve what
he really thinks. But he acts like a clown.
So before the selection team meets, Steve

and Kaspar should pull Christian aside and say,
“Look, we’re here to decide today. We don’t
have the time for testing or for any touchy-
feely things. If you’re going to continue down
that path, you’ll become an obstructionist, and
we don’t want you at the meeting.” And if
Steve wants Bruce to participate in the meet-
ing, he has to have a similarly tough conversa-
tion and say, basically, “Quit being a clown. I
want your help, but you’ve got to act like a
grown-up.”
At the meeting, Steve should present the
criteria for selection—the emphasis should be
on business success, decisiveness, and commu-
nication and relationship skills. A merger is not
a good time to pick the people who need an
extra week to get things done or who prefer to
have their lunch slipped to them under the of-
fice door. The team should debate the criteria
and then select as many top people as possible.
It should be stipulated that no one leaves the
room until they’ve made their decisions—
including backup choices for people who turn
them down, and alternative jobs for people
they have to exclude from the top 65 but still
want to keep. Then they should notify people
and give them a day to decide if they want to
stay.
One thing that Steve seems to have forgot-
ten to do is reassure people who are vital to the
success of the company, like Alison, that they
are needed and important. The selection team
should go to these people and speak plainly.

“Here are our projections for one, three, five
years out. If we overlay your options on these
figures, this is a big nut. And let me talk to you
about opportunity. There are going to be op-
portunities you’ve never dreamed of.” In fact,
I’d go after Sandy Allen and use every trick in
the book to get her back. Steve should tell her,
“I need you more now than ever. I want you to
replace me someday.” Imagine the boost it
would give morale if one of the defectors came
back to the company and said, “I made a mis-
take.”
Finally, Steve needs a plan for himself. If
Kaspar can’t “hear” Steve’s message about the
need for speed and continues to stiff-arm him,
what should Steve do? By accepting that treat-
ment, he’s making decisions about who’s in
charge. So before he sits down with the selec-
tion team, he has to decide at what point it
would be best to walk away from the table. If
things get to that point, he has to be prepared
to move on.
Lawrence J. DeMonaco is senior vice president of
human resources at GE Capital in Stamford,
Connecticut.
Steve has forgotten that
the success of any merger
or acquisition starts with
an understanding of
power—who has it and
how you use it.

page 7 harvard business review • january 2001
Case Comme ntar y
by Grant Freeland
Both Steve and Kaspar may think they are fo-
cused on selecting key people and that their
approach is best. But they are wrong on at
least three counts.
First, Steve and Kaspar are at odds about
the importance of speed in selecting the new
company’s top management. Kaspar seems un-
concerned about the slow pace, and Steve is
right to feel a sense of urgency. Stabilizing the
senior team is a critical short-term task and
needs to happen as quickly as possible. But it’s
not enough simply to “get on with this” be-
cause we can always “fix things later.” The se-
nior executives who are selected will drive the
success or failure of the new organization.
Poor decisions will have a long-term impact.
Second, it’s not clear that Kaspar and Steve

are actually using facts to help them make de-
cisions. It’s foolish, for example, to design a
plant network haphazardly over lunch when
they could be using in-depth analyses of cost,
quality, and service to make objective deci-
sions. They should be using such data to get
the best answer and, equally important, to sig-
nal to staff that decisions are not being made
arbitrarily.
Third, neither of the two leaders has shown
that he can rise above cultural differences.
Steve says that his people “just seem to get it,”
and Kaspar wants to protect his staff in Indo-
nesia. When senior managers look at their fu-
ture colleagues exclusively through the lens of
their own culture, it’s no surprise that selec-
tion problems arise. The underlying attitude is
that “they” are not like “us,” and therefore
they are no good. Kaspar and Steve must learn
to separate a candidate’s style—which may re-
flect corporate culture—from his or her poten-
tial performance in the new organization.
Given these problems, what should the selec-
tion process be? Christian Meyer is right to be
concerned about fairness, but his approach
sounds more like a compilation of the latest HR
fads than a process shaped by an understanding
of the business needs facing the new company.
Fairness is achieved by having a well-
planned and broadly communicated process.
Senior management must communicate
clearly and frequently the details of the pro-
cess, including timing and selection criteria.

When people don’t have such information,
they tend to assume the worst, as Alison’s com-
ments make clear.
Kaspar and Steve have to make explicit the
business objectives of their selection process.
For example, will candidates for key jobs be
selected purely on the basis of individual per-
formance? Is there a rationale for keeping
more of one company’s leaders in areas of par-
ticular geographical or functional strengths? Is
the goal to achieve a merger of equals by bal-
ancing the senior executive teams with a 50–
50 split of positions? Or will one company
merit a greater number of executives because
of its larger size or deeper experience? When
two people are equally valued, what are the
tiebreaking criteria?
Whatever the specific goals are, selection
should be done in waves: the first level ap-
pointed should help select the second level,
and so on. The process should be rigorous but
not cumbersome. We would expect the com-
pany to interview multiple candidates for each
senior-management position, to evaluate past
performance reviews, and even to solicit evalu-
ations from third parties such as executive re-
cruiting firms. Some very talented people may
not fit an immediate opening, and they should
be managed and retained in a systematic way.
Finally, it’s useful to informally assure the stars
of each company that they will have a place in
the new organization—but you should make
such promises only if they can be kept. At the

end of the day, there will always be some horse
trading. But horse trading ought to come at
the end of the integration process, not at the
beginning, and it should be the exception, not
the rule.
As they finish their lunch, Steve and Kas-
par seem well on their way to creating one of
the many mergers that destroy shareholder
value. They need to put down their drinks,
stop worrying about who is perceived to have
more power, and develop a selection approach
that will ensure that the new company’s top
slots are filled with the best executive for
each position.
Grant Freeland is a vice president at the Boston
Consulting Group in Boston.
When senior managers
look at their future
colleagues exclusively
through the lens of their
own culture, it’s no
surprise that selection
problems arise.

Case Comme ntar y
by Patrick O’Sullivan
Instead of acting like the CEO of a major com-
pany, Steve is trying to make it all happen
himself. His first mistake was to focus on get-
ting regulatory approval while letting every-
thing else languish for two months. He should
have appointed a team of lawyers to deal with
that issue, providing direction only as needed.
At the same time, Steve hasn’t done a good
job communicating with his people or building
the executive team, as his conversation with
Alison makes clear. He needs to move quickly
to keep his top talent. If there are a few people
that he wants to keep, he has to talk to them
before they walk out the door. He should tell
them, “I can’t guarantee anything, but I want
you in this organization. Pick up the phone
anytime you’re bothered, but don’t look for
another job. And come see me if you’re offered
one.”
If there are too many people for Steve to
talk to personally, he should make sure that
someone else who has already been picked for
the new company is talking to them. Another
way to retain key managers is by using what
we call “stay pay,” which is a bonus for people
who stay until after the merger is approved.

Steve needs to get the top team in place and
working together as quickly as possible. Steve
should have started the process by meeting
with each of the three people he had chosen
for his team so far, and then with Kaspar and
his three similarly chosen people. As soon as
he and Kaspar decide on direct reports, Steve
needs to get this team working together on de-
livering the key results of the merger. Steve’s
major priority has to be to deliver the benefits
of the merger that were promised to share-
holders and the public.
In addition, Steve needs to take the lead in
forging a relationship with Kaspar. Though it
may not be easy, these two need to work
through important cultural and organiza-
tional differences and come to a meeting of
the minds very soon. If they end up competing
during the early stages of the merger, the rest
of the organization may follow suit, with pre-
dictable results.
I went through a process like this not long
ago. I was CEO of Eagle Star Insurance when
the press broke the news in October 1997 that
the company was merging with the Zurich
Group. We locked the deal and got share-
holder approval in December, and then we
had to wait nine months to get regulatory
approval.
I was confirmed as CEO of the merged com-
pany in January and then was given one

month to choose my new management team.
During that month, I interviewed all the peo-
ple I didn’t know, and then made my recom-
mendations to the Zurich Group’s chairman
and CEO. My direct reports then had to push
on with the task of selecting their teams, a
total of about 250 people from a pool of 400.
The long wait for regulatory approval made
this part of the process difficult. We did every-
thing we could to reassure people and to get
them to stay while we made our selections and
formed the merged company.
This process was all the more difficult since
the company had to make a major turnaround
in financial performance in the midst of this
merger. The urgency of our situation forced us
to focus on something that is crucial to the suc-
cess of any merger—bringing people together
as quickly as possible to find effective ways to
run the organization better. This applied to the
top team as well. In the process, we rapidly
built one new company, one that is thriving
today.
Steve needs to drive this merger with the
same intensity he would if the company were
failing. By concentrating his efforts on crucial
elements of the merger—getting the top team
in place quickly, building an effective relation-
ship with Kaspar, and focusing the organiza-
tion on achieving performance goals—he is
much more likely to make this merger a
success.
Patrick O’Sullivan is the CEO of Zurich Financial

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Steve’s first mistake was
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Module 03 Activity - Evaluation of Team Building Techniques
Evaluation of Team Building Techniques

Team leadership theory enhances the quality of the organization
through employee participation, realizing every individual on
the team has leadership potential. This model motivates people
within the team to work towards a common goal while
maintaining the best interests of the organization, the team, and
the people it serves as a focal point when making decisions.
With this is mind and after reading the case study below,
complete the following:
· Case Study: Read Who Goes, Who Stays.
· Determine what your needs are for this case study in terms of
human capital. List the members (job titles) of this project
management team as well as the functional management team
that will be involved in the overall success of the project.
· What are the roles and functions of each team member you
identified that are involved on both teams: project management
team and functional management team?
Need to go into a lot of detail on each part please- got a C on
last assignment for not enough detail on a lot of the points.

Module 03 Project - Rough Draft SubmissionNow that you have co.docx

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Module 03 Project - Rough Draft SubmissionNow that you have co.docx