BM067-3-3-LTP Leadership Theory and Practice Case Study Page 1 of 2

A Case Study weighted at 20% (LOs 1, 2, 3, 4, and 5)

Read the Case and answer the questions below.
Present your case study

CASE
Ultimate Office Products
Ultimate Office Products was an old, established manufacturing company in the turbulent office
products industry. Discount merchandisers and office product superstores were spreading
rapidly and altering the traditional distribution channels once dominated by wholesalers and
smaller retail stores. The growing power of the superstores was forcing manufacturers to
improve customer service. The traditional manufacturers were being challenged by new
companies more willing to cut prices and use technologies favored by the superstores, such as
electronic orders and billing. Ultimate Office Products was losing market share and profits were
declining.

Richard Kelly was the director of information systems, a newly created position in the company.
When the CEO met with Richard to discuss his new responsibilities and objectives, she explained
that it was essential to speed up order processing and improve customer service. Richard knew
that the order processing system used by the company was obsolete. He prepared a plan to
automate the system and got approval from the CEO for it. Then he purchased new computer
workstations and a software package to support them. The software would enable customers to
make electronic orders, and it would improve order processing, billing, and inventory control.
However, months after the equipment and software arrived; it was still waiting to be used. The
managers from sales, production, accounting, shipping, and customer service could not agree
about the requirements of the new system, which was necessary to get it operating. These
managers were Richard’s peers, and he had no direct authority over them. Even though he
encouraged cooperation, meetings among the managers usually ended with heated
accusations about who was responsible for the company’s problems. Most of the managers
disagreed about the reason for the delays in filling orders, and some questioned the need for an
expensive new system. Meanwhile, the CEO was becoming impatient about the lack of progress.
She made it clear that, after spending a small fortune on new technology, she expected Richard
to find a way to resolve the problem. Richard decided it was time to take a different approach.

His first step was to gather more information about the reasons for delays in processing and
filling orders. He began by having his staff map the workflow from the time orders were received
until the filled orders were shipped. As he suspected, many unnecessary activities created
bottlenecks that could be eliminated to speed up the process. The problems extended across
functional boundaries and required changes in all departments. The preliminary results were
presented to the CEO, who agreed on the need for dramatic improvements and authorized
Richard to begin reengineering the process. Despite having the support of the CEO, Richard knew
that widespread commitment would be needed for major changes to be successful. Richard met
with the department managers to get their assistance in forming some cross-functional task
forces. Although he knew that one task force would probably be enough to determine what
Level 3 Asia Pacific University of Technology & Innovation 201703
BM067-3-3-LTP Leadership Theory and Practice Case Study Page 2 of 2

changes were needed, he wanted to involve more people in the change process so that they
would understand and support it. An outside consultant was secured to advise the task forces
in their work.

Each task force examined a different aspect of the problem. They analyzed processes, met with
key customers to learn what they wanted, and visited other companies to learn how they
processed orders more efficiently. As people began working together to understand the system,
they began to realize how serious the problems were. The participants were able to put aside
their functional biases and cooperate in finding ways to improve efficiency and customer
service. Each team made recommendations to the steering committee, composed of Richard and
the department managers. The CEO also attended these meetings to emphasize their
importance. When one of the department managers opposed a change, everyone in the meeting
looked at the CEO, who made it clear that she supported the task force recommendation. Within
a year, the company eliminated many of the steps formerly required to process an order, and the
average number of days to fill an order was reduced by nearly half. Many more orders were
being made electronically, and most mistakes in the billing process were eliminated. As people
discovered that they could actually change things for the better, many of them volunteered to
serve on teams that would continue to look for ways to improve quality and customer service.

QUESTIONS
1. Why did Richard fail in his first attempt to implement change?
2. Identify subsequent actions by Richard that were more effective for
implementing change in the organization.
3. Evaluate the change leadership provided by the CEO.

Level 3 Asia Pacific University of Technology & Innovation 201703