Report on Case study exercise – Analysis of Suresh Babu

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As Chairman & CEO of Allied Industries, Aditya Puri in employment offer letter to Ronnie as
President, Blue Cross, stated (a) Performance appraisal period as 18 months (b) Method of progress
evaluation of Blue Cross by an independent evaluator in a transparent manner. Aditya Puri set up
performance measurement goal to Ronnie on Sales & profits of Blue Cross to be achieved in
compatible with Allied standards.

Aditya Puri’s leadership style during these 18 months is Laissez Faire; Aditya did not solicit any status
update from Ronnie on

1. Growth of business revenues

2. Important decisions

During this period of 18 months Ronnie demonstrated Transactional leadership style attributes,
Ronnie made critical decisions in organisation to achieve goals, implemented several changes in
short span of time (18 months). Few Critical actions

1. Focus on Goals: Reduced costs, encouraged increased profits in place of sales revenues
2. Not spared Mediocrity, poor performance and incompetence – terminated 4 of 9 non-
performing VPs
3. Implemented 5 strategic changes to enhance performance culture: Org structure, Rewards &
Incentives, Management Information Systems, Resource Allocation & Leadership style
4. Reorganised sales geographies, enabled Profit centre concept
5. Set up new department to evaluate performance of profit centres
6. Established performance driven culture in place of seniority driven career advancement

Ronnie did not informed about his thoughts, Actions or outcomes back to Aditya. It appears Ronnie
did not focus on change management practices. Missing this critical element of change
management, extreme focus on results and intense emphasis on performance driven culture led
discontentment in employee minds and made Ronnie get reflected as a non-Charismatic leader to
Aditya Puri.

However, Independent evaluator’s assessment reported Ronnie achieved stated goals missing
unstated yet important employee satisfaction, as people are core assets of any organisation.

Keeping the results obtained by Ronnie and long term benefits of Blue Cross in mind,
Aditya to support Ronnie, demonstrating Transformational leadership style, work with Ronnie,
empower Ronnie, encourage and support his steps towards increasing profit, demonstrating
transactional style attributes of seeking periodical feedback, making sure that Ronnie not only
focuses on Management by exception practices (examining and focusing the financial and
operational results of a business, and only bringing issues to the attention of management if results
represent substantial differences from the budgeted or expected amount) but also people related
concerns on termination of senior people and in critical roles.
Ronnie retaining his core strengths on transactional leadership style, continue to innovate good
methods to increase profits, with improved adoption of change management practices, motivate
and encourage creativity, win employee satisfaction through balancing goals set up on his role as
President of Blue Cross.