Reference no: EM133564549

In recent months, the company's sales have declined considerably, and profits are down by over twenty percent. Randall did a market analysis and discovered that the company is losing business to a new online used car dealership that maintains an inventory of over 2,500 cars and services a tri-state area, including the metropolitan area where Randall's company is located.

Randall discusses this with his team of sales representatives and suggests that they need to change the way they do business. He recommends that they develop a website and allow customers to do business online, as well as in person at the dealership. He also suggests that they need to purchase a nearby vacant lot and use it to increase their inventory. In addition, he encourages the team to begin using online techniques, such as e-mail, to reach out to customers.

The sales team is very resistant to Randall's recommendations. They are comfortable with their current way of doing business and do not want to make changes. They also dislike the idea of increasing their inventory, stating that it is difficult enough to track 500 cars. They do not want a larger inventory.

Randall remains adamant that the dealership must change its sales approach, and he shares the latest sales data as evidence that he is correct. When it becomes obvious that the dealership will not continue with business as usual, two sales representatives quit in frustration. The rest of the team continues to work for Randall, but they are irritable and unhappy. Despite this, Randall moves forward with his plan to implement changes.

Questions

1. How do you define the problem that Randall is trying to address? Is this a technical or an adaptive challenge? Why?

2. What is your reaction to the actions Randall has taken in this situation? How do you think what he did fits in with the six principles of adaptive leadership: get on the balcony, identify your adaptive challenge, regulate distress, maintain disciplined attention, give the work back to subordinates, and protect leadership voices from below?

3. If you were giving advice to Randall on how to handle this situation, what would you say? If you were giving advice to his team, what would you say? Why?