Professional Documents
Culture Documents
10 1108 - TCJ 08 2015 0042
10 1108 - TCJ 08 2015 0042
Olugbenga Adeyinka is a The clock struck midnight on Friday, January 17, 2014 and Ken Wilson did not even notice that it
Doctoral Student and was well past his bedtime. He was lost in thought about how to get AfrobitLink Ltd, his father’s
Mary Kuchta Foster is an company, back on track. Time was short; one misstep could bankrupt the firm and devastate the
Associate Professor, both at lives and careers of more than 500 people. The last few weeks had seemed like the busiest
the Earl G. Graves School of weeks of his life. He had just returned from a three-week tour where he had visited about half of
Business and Management, AfrobitLink’s 36 locations and it was starting to sink in how much trouble the firm had gotten into
Morgan State University, while he had been away getting his MBA and then working for a consulting firm. Ken had recently
Baltimore, Maryland, USA. returned to Nigeria and assumed the role of Vice President of Administration at AfrobitLink. The
weight of this new responsibility to his father, his family, and the firm pressed on him. How could
so much have gone wrong while he had been away?
Henry Wilson, Ken’s father, founded AfrobitLink, an information technology (IT) services
company in 1997. AfrobitLink started as a small company with one office in Lagos, Nigeria and
fewer than two dozen employees. Initially, AfrobitLink was profitable and had a reputation for
excellent service and superior technical expertise. All the firm’s employees knew one another and
respected each other. Employees demonstrated a high sense of identification with the firm and
were deeply committed to the company’s goals.
Then, starting in 2004, AfrobitLink grew very rapidly as the telecommunications market was
deregulated by the Nigerian government. Within three years, AfrobitLink had an office in each of
the 36 states in Nigeria and over 500 employees. During this period of rapid expansion,
AfrobitLink changed dramatically. Poor hiring practices, inadequate training, excessive spans of
control, low accountability, a subjective reward system, and other cultural issues, such as a
relaxed attitude to time, had resulted in low motivation, high employee turnover, poor customer
service, and financial losses. By 2013, the firm was operating at a loss and its reputation was in
shambles. Generally, the culture was toxic: employees did not identify with the firm or care about
its goals, there were no performance standards, employees were not held accountable,
self-interest and discrimination prevailed. The organization was in a downward spiral.
Henry had asked Ken to return to Nigeria and join the firm as Vice President of Administration.
Henry was counting on Ken to save the firm – to avoid bankruptcy and to re-establish a culture of
excellence and service. Now, Ken needed to decide how to avoid financial ruin and change the
toxic culture. This felt like a daunting task; as he thought about the situation, he asked himself
many questions: could the firm be saved? How? What should the first steps be? Was he the right
person to lead this effort? Who else had to be on board?
PAGE 120 j THE CASE JOURNAL j VOL. 13 NO. 1 2017, pp. 120-151, © Emerald Publishing Limited, ISSN 1544-9106 DOI 10.1108/TCJ-08-2015-0042
even when it involved making personal sacrifices. His dedication to work did not go unnoticed;
many times, he won the much-coveted “employee of the year award” at Nestlé. He was rewarded
with pay increases and quick promotions for his outstanding performance. Henry’s philosophy
was anchored in what he called “the 3Ds of success: discipline, dedication, and determination.”
Henry’s keen observation of Nigerian businesses in the IT industry revealed a lack of credibility in
terms of professionalism, education, skills, and the ability to deliver on promises to clients. He
noticed that many “so-called” IT professionals consistently let their clients and customers down
as a result of what he called their “inadequate knowledge” or “half knowledge.” He also noted that
many indigenous Nigerian IT businesses still conducted their day-to-day business activities on
“African time” resulting in dissatisfied clients. See Exhibit 1 for more information on Nigeria as well
as a discussion of the culture, time orientation, work ethic, and diversity of the Nigerian people.
Convinced that he could make a difference in the Nigerian IT services market, Henry decided to
start his own company, specializing in installation, design, and maintenance of local area
networks, wide area networks, data centers, computers, and peripherals. His dream was to build
a team of hard working professionals devoted to a culture of excellence. To realize this goal, he
encouraged every employee to embrace the habits of continuous learning and personal
improvement in his/her career. Henry believed that high quality, on-time, professional service
would create loyal clients and transform the Nigerian IT industry.
Everything was going according to Henry’s plan for a while. AfrobitLink was doing very well as
evidenced by increases in revenue and profit. AfrobitLink’s workers were knowledgeable and highly
motivated. They were also accountable and discharged their duties with high levels of
professionalism. Employee turnover was low. AfrobitLink won large contracts with big companies in
Lagos, contracts with reputable American companies like Accenture, PricewaterhouseCoopers,
and Citibank, as well as big oil companies like Shell Nigeria, Chevron Nigeria, and the Nigerian
National Petroleum Company. The company was financially successful and was highly respected
for its delivery of top-notch IT services. AfrobitLink’s revenue (in US dollars) was $0.5 million in 2000,
Although Ken and Henry had been thousands of miles apart while Ken was in the USA, they
always stayed in touch, and recently Henry had shared troubling reports about AfrobitLink. After a
few years of very rapid growth, AfrobitLink had begun to have financial losses and was on the
brink of bankruptcy. So at his father’s request, Ken took on the role of Vice President of
Administration. In this role, Ken’s responsibilities included growing the firm profitably, solving any
internal issues, motivating and retaining staff, and ensuring that AfrobitLink company policies and
procedures were followed.
After accepting his father’s offer, Ken wasted no time; he got to work immediately. His review of
the financial data confirmed that something needed to be done urgently to save the company
from financial ruin (see Exhibit 5 for AfrobitLink’s income statements). Ken also discovered that
out of the 150 AfrobitLink engineers, only 20 held professional IT certifications on the equipment
they installed and serviced. He noticed that external consultants had been hired to help fix the
problems at AfrobitLink, but their work had yielded few results. In his words:
In the first few weeks at AfrobitLink, I spent a lot of time assessing the situation. Highly fascinating, but
troubling to me, was the fact that so much money had been spent on consultants with the goal of
effecting change. It seemed to me that all this money had literally gone down the drain without any
appreciable progress being made. The problems seemed to have gotten only worse after the
intervention of the consultants.
The consultants reported that although they did not fully understand the technicalities of tasks
completed by engineers at AfrobitLink, they noticed that it took a long time for employees to
complete tasks and fix client problems. The reports of the external consultants also showed that
they encountered high levels of resistance to change as well as opposition and unfriendliness
Ken visited many AfrobitLink locations in the 36 states unannounced. He visited client sites to
actually observe what the engineers were doing. During one of his visits, Ken dressed casually
making it difficult for anyone to realize that he was one of AfrobitLink’s top executives. Most of the
employees dismissed him as one of several visitors on the company’s premises for business.
It was not until he had been on site for more than an hour and had observed with dismay that the
manager was not doing his job that he introduced himself as the Vice President.
After assessing the situation, Ken needed to decide what to do to turn around the firm. Ken had
to formulate plans to achieve this goal and devise ways of implementing his plans effectively. He
knew that his father and his family were counting on him. As he thought about the situation he
asked himself: “What urgent steps needed to be taken to return AfrobitLink to profitability? What
could be done to restore the original winning culture at AfrobitLink? What programs needed to be
put in place and what practical steps would be necessary to institutionalize a culture of
professionalism once again at AfrobitLink?”
Notes
1. The deregulation of the telecommunications sector benefitted the nation immensely. In 2014, the
Nigerian telecommunications industry, with over 140 million subscribers contributed about 9 percent to
Nigeria’s GDP and accounted for a foreign direct investment (FDI) of about $32 billion (www.ncc.
gov.ng/index.php?option=com_content&view=article&id=68:industry-overview&catid=65:industry-
information&Itemid=70).
2. The concept of “unity in diversity” was about harnessing diversity to enhance the realization of common
national goals. Nigerian leaders have sought to unite the nation and to encourage Nigerians to eliminate
sentiments based on ethnic, cultural, or regional differences and to unite to build the nation. A 1957
speech by Abubakar Tafawa Balewa, the first Prime Minister of Nigeria encouraging unity and diversity
can be found here: www.blackpast.org/1957-alhaji-abubakar-tafawa-balewa-unity-and-diversity-
independence.
3. The phrase “national cake” was popularly used in Nigeria to refer to the wealth, riches, or resources of
the nation as a cake owned by everybody but only accessible to a privileged few. The underlying
principle of governance or involvement in politics in Nigeria was not primarily motivated by patriotism or
service; rather it was motivated by greed, plundering, and a “get rich quick” mindset. Since many others
have plundered the nation’s resources, the average Nigerian citizen hopes for his/her opportunity to do
so too (www.waywordradio.org/national_cake_1/).
4. An office holder in Nigeria (anyone who has access to the nation’s resources) is under obligation to share
his good fortune with people through contracts, appointments, and jobs (www.bbc.com/news/world-
africa-30447166).
5. The perceived cultural tendency, in parts of Africa to have a more relaxed attitude about time.
6. Power distance is defined as “the extent to which the less powerful members of institutions and
organizations within a country expect and accept that power is distributed unequally.” Individualism is
the degree of interdependence a society maintains among its members. Masculinity is defined in terms
of what motivates people, wanting to be the best (masculine) or liking what you do (feminine).
Uncertainty avoidance describes the “extent to which the members of a culture feel threatened by
ambiguous or unknown situations and have created beliefs and institutions that try to avoid these.”
8. Time has to do with how long an organization has to achieve change as well as how much time the
change agent has to deliver change (Balogun and Hailey, 2008).
9. Scope has to do with how much change or what degree of change is needed in terms of depth or
physical spread (Balogun and Hailey, 2008).
10. Preservation deals with what to continue/maintain and what to discontinue in an organization. Certain
practices or specific assets need to be preserved either because they constitute invaluable resources,
or because they contribute toward a valued stability of culture or identity within an organization
(Balogun and Hailey, 2008).
11. Diversity deals with how homogeneous or heterogeneous staff groups within an organization are in
terms of values, norms, and attitudes (Balogun and Hailey, 2008).
12. Capability is an assessment of managerial and non-managerial staff in terms of their skills, behaviors,
and attitudes necessary to achieve change (Balogun and Hailey, 2008).
13. Capacity considers the availability of resources like cash, time, and people as well as commitment and
competency levels (Balogun and Hailey, 2008).
14. Readiness for change is assessed in terms of the awareness of the need for change among staff as well
as the amount of personal commitment they demonstrate toward changing their skills, attitudes and
behavior or work practices (Balogun and Hailey, 2008).
15. Change path or type (i.e. evolution, revolution, adaptation, or reconstruction) is dependent on the nature
of change needed as well as the end result of the change envisaged. Evolution is a transformational
change, which is incremental in nature, while revolution is a transformational change, which is of a
“big bang” nature. Adaptation involves realignment to organizational goals but is incremental in nature
while reconstruction is an alignment, which is of a “big bang” nature (Balogun and Hailey, 2008).
16. Change start-point refers to where the change is initiated and developed; the change start-point may be
top-down or bottom-up (Balogun and Hailey, 2008).
17. Change style refers to way the management style adopted to implement change (e.g. collaborative,
participative, directive, coercive, or through education and delegation) (Balogun and Hailey, 2008).
18. Change targets include what is to be targeted in order to achieve change, e.g. employees values,
behaviors, or their tangible outputs (Balogun and Hailey, 2008).
19. Change levers can be technical, political, cultural, or interpersonal levers (Balogun and Hailey, 2008).
20. Change roles refer to who (the individuals, groups, or entities) is responsible for change. Change roles
can be a change champion, external consultants, a change action team, or a functional part of the
organization such as HR (Balogun and Hailey, 2008).
References
Abudu, F. (1986), “Work attitudes of Africans, with special reference to Nigeria”, International Studies of
Management & Organization, Vol. 16 No. 2, pp. 17-36.
Arrey, O.B. (2014), “Attitude to work by Nigerian workers: a theoretical perspective”, Global Journal of
Management and Business Research, Vol. 13 No. 12, pp. 5-7.
Campbell, J. (2014), “Corruption and Sharing Nigeria’s Cake”, December, available at: http://blogs.cfr.org/
campbell/2014/12/19/corruption-and-sharing-nigerias-cake/ (accessed July 20, 2015).
Central Intelligence Agency (2015), “The World Fact Book: Nigeria”, available at: www.cia.gov/library/
publications/the-world-factbook/geos/ni.html (accessed July 17, 2015).
David, F.R., Kursh, S.R., Lant, T.K., Majeske, K.D., Olver, J.M. and Plant, R. (Eds), (2013), “Nigeria – business
culture”, Strategic Management: Concepts and Cases, Pearson Learning Solutions, Boston, MA, p. 263.
Ogbonna, C. (2010), “Cultural issues about doing business in Nigeria: case study for thurmo”, available
at: www.theseus.fi/bitstream/handle/10024/16512/Chidiebere_Ogbonna.pdf?sequence=1 (accessed
July 30, 2015).
The Hofstede Center (2015), “What about Nigeria?” available at: http://geert-hofstede.com/nigeria.html
(accessed February 10, 2015).
Exhibit 1
NIGERIA
100
Nigeria USA China
90
80
70
60
50
40
30
20
10
0
Power distance Individualism Masculinity Uncertainty Long-term Indulgence
avoidance orientation
Source: http://geert-hofstede.com/nigeria.htm
Exhibit 2
Exhibit 4
12
Revenue (Million )
10
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: AfrobitLink Company Documents (2014)
Revenue ($)
Sales revenue 9,030,000 8,487,000 8,217,000 7,592,000 7,055,000
Sales deductions 207,491 188,623 197,558 184,193 257,624
Net sales 8,822,509 8,298,377 8,019,442 7,407,807 6,797,376
Service revenue 44,462 46,472 36,584 59,351 50,487
Other operating income 190,200 −60,140 39,023 32,745 35,284
Total revenues 9,057,171 8,284,709 8,095,049 7,499,903 6,883,147
Expenses ($)
Insurance 189,354 220,345 240,653 271,000 304,808
Depreciation 155,513 180,907 182,018 190,937 209,033
Licenses and fees 150,235 170,505 195,245 237,746 295,146
Legal and professional fees 220,000 270,000 350,000 400,000 377,235
Vehicle expenses 224,346 240,324 254,765 265,847 300,245
Rent 224,523 236,734 240,211 242,156 265,398
Other operating expenses 89,432 165,406 337,108 300,856 448,135
Total operating expenses 1,253,403 1,484,221 1,800,000 1,908,542 2,200,000
Net operating income 1,997,678 2,240,642 929,365 170,778 −118,342
President
Henry Wilson
Corresponding author
Olugbenga Adeyinka can be contacted at: olade38@morgan.edu