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Harvard Business Review Case Analysis:

Why Didn't We Know?
Published on June 9, 2015

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Case Analysis: Why Didn't We Know?

Isaac Arnold

Danielle Chaney

Antonio Granger

Kevin S. Langley

James Pringle

The University of Maryland

Project Management Communications (PMAN) 638 Section 9020 (2155)

Donna Karch

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Turnitin Score: 23%

Table of Contents

Executive Summary 3

Identification of the Problem 3

Analysis of the Situation 4

Ineffective Communication Skills 4

Ineffective Listening Abilities 4

Ineffective Development of an Effective Project Team 5

Breakdown in Group Norms and Organizational Policies 6

Recommendations 7

References 8

Executive Summary

The purpose of this case study analysis was to determine if Galvatrens management
ineffectively implemented communications management processes, to identify problem
areas and to make recommendations to senior management for resolving the conflicts.
After careful analysis, it was determined that there was not a pervasive culture of
malicious unethical intent. Galvatrens, as an organization, has a strong desire to
continue the positive growth they have experienced over the past 10 years and to take
corrective actions that will ensure success for years to come. Four major communication
problem areas were identified followed by a through analysis of each problem. The
analysis concludes with recommended response strategies to address the identified
problems, which will allow the company to begin a new positive direction where the
lines of communications are valued, respected, appropriately responded to in a timely
manner.

Identification of the Problem

Galvatrens, writes Hasson (2007)), is a consumer product company facing a whistle-

blowing lawsuit from a former division sales manager who stated his employment was
wrongfully terminated after he reported an illegal Channel Surfing scheme where
allegedly a sales manager unethically obtained sales from clients to meet quarterly

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targets and trigger bonuses (pp. 1-5). Although new leadership had taken steps to
modify the company's policies and procedures to report misconduct, the lawsuit
exposed a breakdown in communications management. The four major communications
problems that were identified and analyzed in this case analysis are as follows::
ineffective communication skills, ineffective listening abilities, ineffective development
of an effective project team and breakdown in group norms and organizational policies.

Analysis of the Situation

Ineffective Communication Skills

Project Communication Management, according to PMI (2013), includes the processes

that are required to ensure timely and appropriate planning, collection, creation,
distribution and the ultimate disposition of project information (p. 287).
Communication weaknesses, e.g., ineffective communication skills, reside in Galvatrens
as evidenced by comparing employee actions and conversations as outlined by Hasson
(2007) verses PMIs (2013) common communication skills and the multi-dimensional
capacity that affects an organization. Four communication skills were found to be
especially problematic for the organization. Hasson (2007) reveals that senior leaders
did not listen actively and effectively (PMI, 2013, p. 288) when they failed to act
upon sound advice from experts and Greg Wilson admittedly failed listening
(Engleberg & Wynn, 2013, p. 151) to company policy when he offered the scheme at
the heart of Galvatrens current dilemma. Seeking better understanding with effective
questioning (PMI, 2013, p. 288) would have been benefited the organization but Harry
Mart, Chief Operating Officer (COO), chose not to personally address Mikes urgent
message thereby exacerbating the problem. Failing to establish and maintain
expectation (PMI, 2013, p. 288) was evident when Mike reported his concern to Harry
expecting confidentiality concerning possible misconduct. Lastly, Galvatrens displayed
ineffective communication skills when it failed in fact-finding to obtain or confirm
information (PMI, 2013, p. 288) as noted by Terry Samples (Senior Vice President of
Sales) lack of participation in the investigation.

Ineffective Listening Abilities

Listening (Engleberg & Wynn, 2013) is the ability to understand, analyze, respect, and
appropriately respond to the meaning of another persons spoken and nonverbal
messages (p. 151). Hasson (2007) brings to light several problems within Galvatrens
regarding ineffective listening. To be a better leader an individual must overcome
ineffective listening skills through hard work, practice, and periodic self-analysis. The
key is realizing that listening is as important as the other communication skills
(Rynders, 1999) and Engleberg and Wynn (2013) argue, Listening is our number-one
communication activity (p. 151). The companys problems started with the previous
Chief Executive Officer (CEO), Walter Nikels. When the board tried to introduce new
strategies Walters using his authoritarian, hierarchical fashion shut them down (Hasson,
2007, p. 2). When Chip Brownlee, whom replaced Walter, tried to bring fresh ideas to

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the company some of the ideas were implemented and some were not because there
were still some Nikels stalwarts in the organization who were use to the old way. The
old way involved delegating problems instead of trying to listen and resolve them.
Employees were not telling management of a problem and just hoped it would go away
or management would use a persons performance to get rid of them to resolve the
problem. In addition, when informed of an issue, senior management did not inform the
CEO about the problems that had surfaced. Galvatrens demonstrated ineffective
listening by not appropriately responding to organizational problems.

Ineffective Development of an Effective Project Team

Identifying the root cause of all subsequent issues (the problem) derives from each
individuals lack of participation in what is considered to be high or exceptional moral
conduct. Moreover, individuals did not use structures such as the 24-hour hotline and
the ethics officer. These systems were upgraded procedures for uncovering misconduct
and solving conflicts in the workplace. In addition, key individuals executed and
attempted to apply their personal fixes while withholding information about a
substantial issue of inappropriate conduct. The complexity of one employees
performance compiled with exceptional moral conduct convoluted the decision making
of key managers. Project sponsors and/or program managers most often discover,
identify and communicate conflicts between the goals of a project and the strategic
vision of an organization to the project manager (PMI, 2013, p. 15). There is value
within the systems put in place to handle organizational misconduct at Galvatrens,
however they were not used. Most of a project manager's time is spent communicating
with external stakeholders, members of the project team, suppliers, or stakeholders
within the organization (PMI, 2013, p. 287). The organization and project teams were
ineffective as evidenced by only one person communicating the potential misconduct
and the subsequent actions by management.

Breakdown in Group Norms and Organizational Policies

The former CEO was an autocratic leader that made many of the decisions for the
company through mechanistic design that has machine like rules, procedures, and a
clear hierarchy of authority. Daft (2013) writes, vertical linkages are used to coordinate
activities between the top and bottom of an organization and are designed for control of
the organization (p. 99). A new CEO was hired because all mature organizations must
go through periods of revitalization or they will decline (p. 360). The new CEO
recommended new proposals made by an outside consultant. However, he faced strong
opposition on a number of items. Hasson (2007) details the breakdown of norms and
adherence organizational policies that encourage employee integrity. The CEO allowed
himself to be influenced by senior managment resulting in not hiring of an Ombudsman,
not establishing a director responsible for ethics oversight and not conducting the
training necessary for the new open-door policy (p. 3). The CEOs inability to balance
the leadership-followership dialectic within the management group diminished
organizational policies and group norms. Effective leadership requires competent and

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responsible followers who are willing to assume specific leadership functions to achieve
an optimum balance (Engleberg & Wynn, 2013, p. 17).

Recommendations

In order to address Galvatrens four major communications problems, the following

recommendations will allow senior management to effectively respond. The
organizations communications skills can be improved by first accepting the challenge
to develop and implement the informal and anonymous system for reporting any
concerns in a confidential and retaliation-free zone and secondly, by instituting a
training program specifically structured for their leadership, which focuses on
communication skills and human resource management. Galvatrens listening abilities
can be improved by creating a culture that values openness, honesty, dialogue,
collaborative negotiation and conflict resolution (Bennis, Cloak, & Goldsmith, 2011, p.
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5) and by holding employees accountable for appropriately responding to policies and
norms. Development of an effective project team should be a precedence of desired
moral conduct and the inculcation of such measures. The delivery method of these tools
should be through the methods of required short eLearning. In order to address the
breakdown in norms and policies, the CEO delegated the responsibilities to determine
how the organization could ensure this type of unethical behavior does not happen
again. According to Engleberg and Wynn (2013), a group cannot function well if a
member focuses entirely on his/her goal rather than the common goal (p. 15). The
leader must show his strong leadership skills by forming a special ethics committee,
focus groups involving employees, and facilitating information sessions. Finally, the
CEO should use his coercive power to inform the management team of his expectations
and warn about the penalties for failure. Leaders using coercive power must consistently
carry out threatened punishments (Engleberg & Wynn, 2013, p. 106).

References

Bennis, W., Cloak, K., & Goldsmith, J. (2011). Resolving conflicts at work: Eight
strategies for everyone on the job (Revised ed.). San Francisco, CA: Jossey-Bass

Daft, R. (2013). Organization theory & design (11th ed.). Mason, OH: South-
Western Cengage Learning.

Engleberg, I. N., & Wynn, D. R. (2013). Working in groups: Communication

principles and strategies (6th ed.). Upper Saddle River, NJ: Pearson Education.

Hasson, R. (2007). Why didnt we know? Harvard Business Review. Retrieved from:
https://cb.hbsp.harvard.edu/cbmp/product/R0704A-PDF-ENG

Project Management Institute (PMI). (2013). A guide to the project management

body of knowledge (PMBOK guide) (5th ed.). Newton Square, PA: Project
Management Institute.

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Rynders, G. (1999). Listening and leadership: A study on their relationship. Retrieved

from: http://www.usfa.fema.gov/pdf/efop/efo29219.pdf

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