Lars Peeters, the company’s new CEO, is using transformational leadership to implement significant changes in the company. This involves investing in advanced wireless broadband technology to increase the company’s profitability. However, these changes have led to several measures taken by the company, including a 5% reduction in workforce due to rising costs and a decrease in peripheral services provided. Consequently, customers have returned to older technologies. Moreover, there has been government pressure to deregulate both PROFITEL’s traditional and emerging businesses.
Despite the significant downfall resulting from changes in company structure, the CEO must also make substantial changes in his leadership style to enhance the company. Implementing transactional leadership instead of transformational leadership should be considered, as the latter focuses more on the leader’s vision rather than the followers’ contributions. This has been a key factor contributing to the failure of the company.
If the CEO employs transactional leadership, they will strive to maintain organizational stability through regular economic and social exchanges that aid in achieving specific goals for both the leader and followers. This style also places equal emphasis on follower attribution, valuing their contributions and taking their ideas into account for company improvement. This is a departure from typical CEO behavior.
The CEO’s overconfidence, resulting from the transformational leader, has prompted changes in leadership that aim to improve the company. However, other decisions made by the company have led to issues such as customer dissatisfaction, ultimately causing a 20% decline in company shares. This decline poses a threat to the company as it contradicts the CEO’s new objective of increasing profit margins while reducing investments in wireless broadband technology.
The company must restore customer satisfaction by reverting back to the old services as the new service or network does not effectively reach customers. Customers are reluctant to change and encounter difficulties adapting to the new technology. Gradually implementing strategies is recommended since the company is the sole provider of this technology and users lack knowledge and skills in using it, so forcing customers into adopting the new service is not advisable. Regaining employee trust is also crucial. The effectiveness of the leader-follower relationship depends on the leader’s ability to influence followers, which requires trust from them.
The CEO’s actions, including employee layoffs and hiring individuals from his previous company, have caused followers to lose trust. This has also resulted in decreased morale among employees. To address this issue, it is crucial to provide increased support for employees by ceasing layoffs, providing more guidance, fostering independence, delegating additional tasks, and promoting open communication to identify and resolve any concerns they might have.
All these efforts are focused on improving employee support and motivation to work diligently towards the company’s goals and objectives. It is essential for the CEO to maintain a positive relationship with the government because their involvement is crucial in establishing the company. The recent loss of a 1 billion worth project serves as evidence that aggressive campaigning against government regulations can be detrimental, causing potential harm to the company.
The company should refrain from ignoring this opportunity and instead start supporting government activities. This is because the government could potentially become a major investor for the company. Ways to gain government support include participating in more government activities, incorporating government ideas into the company’s system, and fostering a strong relationship with government organizations and departments. Additionally, it is important for the CEO of the company to possess the need for achievement as a characteristic.
The previous leader’s ineffective leadership can be attributed to their personal characteristics. To succeed as a CEO, one must have goals and set realistic and feasible company goals. Taking calculated risks when making decisions is also important. Moreover, a CEO should have high energy levels and be dedicated to working hard to achieve these goals.
Lack of these character traits in the leader has resulted in the company’s failure. It is evident that the CEO does not conduct any prior research before implementing strategies, leading to the company’s downfall. Additionally, the leaders have taken risky decisions by investing in a new and unfamiliar broadband technology that no other similar company has ventured into.
