Johannes Linden: Managing the Global Executive Committee (GEC) Personality traits / Leadership style

1. Johannes Linden:
M a n a g i n g t h e G l o b a l E x e c u t i v e C o m m i t t e e ( G E C ) .
Team members:
1. John Atasie
2. Virginia Johns
3. Mario Pineda
4. Nicholas Valdez
5. Yekaterina Golovanova
April 20, 2017

2. Content
 Background
 Problem Statement
 Causes-Effects of the Problem
 Personality Traits / Leadership Style
 Analysis of the Problem
 Alternatives
 Critical Ingredients for Team Effectiveness
 Managerial Control and Delegation of Authority
 Evaluation of Alternatives
 Recommendations

3. Background (1)
 Fluss AG – the Swiss parent company of Fluss Washer and
Dryer (FWD), established in 1947
 CEO: Hans Kehrer
 Specialized in manufacturing of large household appliances
 In the mid 2000’s FWD went “green”(environment friendly,
energy-efficient)
 In 2004, Johannes Linden, age 40, became Director of FWD
 In 2004 FWD went from geographic to a product-oriented
structure

4. Background (2)
 In early 2006, Linden increased the number of regions from
3 to 6
 Linden created GEC consisting of himself, corporate staff
and the 6 Regional Directors
 FWD had exceeded the fiscal year 2010 plan targets by 15%
 In 2010, Fluss AG had 51,000 employees and earned $15
billion in revenues
 New lower steel price (main raw material) will result in
unanticipated savings of 10% - 20%
 Linden proposed to readjust sales targets and bonus for
2011 fiscal year.

5. Problem Statement (1)
 Sudden review for fiscal year
2011 targets and bonuses
after 3 months
 Linden’s disappointment over
RD’s lack of strategic vision
 Country Managers
suggestions were not valued

6. Problem Statement (2)
 Cross cultural differences
 Leadership style – “my way or
the highway” contrary to FWD
structure
 RDs are reluctant to discuss
new business target

7. Causes of the Problem
 Fierce competition with Korean giant –
RiverTech
 Difference between Linden and GEC:
 GEC members not seeing the idea of
changing Targets and Bonuses with
the same glasses as Linden

8. Effects (1)
 Passive co-operation among the GEC
members
 Security and the benefits are the
drivers of their ambitions
 Different perceptions about the
change

9. Effects (2)
 Lack of Motivation
 Lack of Common goal
 Difficulties trying to get everyone
on the same page when
making decisions

10. Personality Traits/Leadership Style(1)
 Open to ideas but not receptive
“one-chance-guy”
 Polite, but very firm
 Sometimes stubborn
 Too impatient and wanted to infuse
aggressiveness in decision making

11. Personality Traits/Leadership Style (2)
 Collaborative Planner and Executor
 Smooth dictator: very likable, very
persuasive, very determined
 Type A personality
 Autocratic style

12. Analysis of the Problem
 Korean appliance giant—RiverTech
 New steel prices: 10%-20% savings
 Leadership Styles
 Linden’s lack of confidence in the country
managers
 Delegations of responsibilities to junior managers
 RDs responsible for operations and acquisitions
 Develop business strategy and plan for the country
 Sustain relationships with local financial institutions
 One vision, one goal!

13. Alternatives (1)
 Redefine the growth needs of the GEC
members
 Money is an external reward, so it
can’t stimulate internal motivation
 Provide them with a sense of
achievement
 Change in leadership style of being
persuasive instead of autocratic

14. Alternatives (2)
 Delegation of duties for strategic
feedback
 The RD’s should be active in
decision making
 Linden should be receptive to ideas
from the GEC
 Reward the RD’s and country
managers based on their
participation in GEC

15. Alternatives (3)
 Linden should appreciate the differences
in Geographical business and non-
business external environment:
i. India – Indo & China SE Asia & South
America are only regions demanding
investment
ii. North America & Europe are big for
business and growth opportunity is small
iii. All the regions should get their goals
aligned towards the business performance
of the division.

16. Alternatives (4)
 He shouldn’t ignore
recommendations and successions of
RDs
 Take into consideration the market
conditions of each region to distribute
bonus according to local conditions
 Linden needs to be transformational
leader
 Decentralize, delegate and empower
the RDs

17. Critical Ingredients for Team Effectiveness
 Goal
 Interdependence
 Accountability
 Respect
 Integrity
 Trust
 Commitment
 Communication
 Flexibility
 Synergy

18. Managerial Control and Delegation of Authority
 Effective delegation is crucial for management
and leadership succession
 Delegated tasks must be:
 Specific
 Measurable
 Agreed
 Realistic
 Timebound
 Ethical
 Recorded

19. Evaluation of Alternatives
Alternative Consequences
1. Redefine the growth needs of the GEC members GEC members will be reluctant to changes
2. Money is an external reward, so it cannot
stimulate internal motivation
No motivation to achieve common goal,
rather than the personal
3. Provide a sense of achievement A Team culture would develop
4. Change in leadership style of being persuasive
instead of autocratic
Psychological ownership, passion and
commitment to organizational goals
5. Decentralize, delegate and empower A Team culture would develop
6. The RD’s should be active in decision making Self-efficacy of members will increase
7. Linden should be receptive to ideas from the
GEC
A Team culture would develop
8. Reward the RD’s and country managers based on
their participation in GEC
Boost up the motivation level of the GEC
members
9. Linden should appreciate the cultural differences Each will contribute depending on his skills
10. Defining a common goal for FWD A Team culture would develop

20. Recommendations
 Being the Leader, Linden should define a
Common Goal for the GEC members:
1. Self-efficacy of members will increase.
2. Each will contribute depending on his skills.
3. A Team culture would develop
4. Psychological ownership, passion and
commitment to organizational goals
 Bonus policies can be integrated with
incentives: monetary and non monetary =>
boost up the motivation level of the employees

21. References
 Hill, L.A., M. Rennella. “Johannes Linden: Managing the Global Executive
Committee.” Harvard Business School Brief Case 913-509, July 2012.