Handling Leadership Changes and other Challenges at Blue Sky Software

Blue Sky software leadership has changed. It has shifted from Max Blue, the founder, to Jim Willis, a younger leader. The organization is bound to transition from the initial style of management to a new style of the same because different leaders exhibit different leadership styles and personality traits. As such, a critical examination of current transitional state Blue Sky Software and the presenting challenges and opportunities is vital. Therefore, this report explores the challenges facing the organization during this transitional period along the dimensions of leadership change, motivation strategies, use of strategic planning and inclusive decision-making, and structural challenges. It further offers a summarized list of recommendations to adopt to ensure more effective transition and performance of Blue Sky Software.

The transitioning

Leadership changes

Leadership appears to be changing from an autocratic form of leadership to a transformational leadership style. Autocratic leadership means that the leader assumes all control and authority and determines all goals, procedures, and standards with minimum or no input from the subordinate team (Al Khajeh, 2018). On the other hand, transformational leadership describes a form of leadership whereby the leader is charismatic and motivational and encourages the subordinates to think critically and contribute to the performance of the organization (Steinmann et al., 2018). In this scenario, the leader relies on efficient managers to address the daily operational issues as well as the technical issues while the leader busies himself or herself with the broader visionary efforts (Steinmann et al., 2018). Max Blue subscribed to the autocratic form of leadership while Willis subscribes to the transformational form of leadership. Max made all the decisions such that the entire organization, including his executive board, always relied on him to make the decisions and give directives. This is evidenced even after leadership had changed because when Max called his executive team to brainstorm and find solutions, some distanced themselves from the problems while others quarrelled and refused to find common ground. This left Max to make the decisions alone. On the other hand, Willis has indicated that he expects his subordinates and workers to assist in solving problems through feedbacks and holding regular meetings. He has shown that he values shared responsibility. If his team takes up the challenge, it will enable Willis to focus on more transformational and visionary goals needed to ensure the financial viability and continued legacy of Blue Sky Software.

Motivational style

The motivation styles are bound to change as well with the change in leadership. Under the older leadership, people were satisfied with performing their parts, which involved receiving orders and working independently to complete the given tasks. This has the beneficial effect of avoiding or reducing interpersonal conflicts because decisions were made centrally. The older workers are worried that the new management might disrupt this harmony and, thus, are less likely to feel motivated to pursue and adhere to any changes made in the workplace. True, Willis wants to bring several changes but wants his executive team and all other members to take it upon themselves to solve problems and enhance performance. He has to motivate them appropriately. The regional directors also want to diversify against the interests of the elderly workers. Therefore, the executive management could adopt a performance-based incentive system, which, according to Ogbonnaya et al. (2017), ensures that those who contribute recognizable inputs are rewarded on the basis of their additional input. This will motivate all workers to perform better and become more productive. Secondly, Willis should consider team-building retreats and seminars to motivate cooperation and promote cohesion.

Strategic planning and decision-making

Strategic planning and decision-making is another critical point of transformation of the corporation. The former CEO did not seem to have a strategic plan. If he had one, none of his employees or members of the executive board ever saw it. He made all the major decisions regarding the business case and direction of the enterprise with minimal consideration and tolerance of second opinions. This strategy worked for the company in its initial 15 years. However, the same strategy has led to significant financial problems for the organization, especially the increased expenses and reduced returns of the Machine Tool division, which translates to overall losses for the organization. The new leadership, however, recognizes the need to develop a strategic plan for the organization that will include the inputs of all members of the executive board and relevant stakeholders. This inclusive decision making and development of a strategic plan is highly recommended because, as Steiner (2010) observes, it will assist in addressing the current and future problems, exploiting and maximizing current and future opportunities, and navigating foreseeable challenges.

Structural challenges

The structural challenges at Blue Sky Software include the organization’s cultural attitude, shifting market trends and ineffective business case, and demographics of its workforce. The current culture is detrimental to the performance of the organization. Workers, managers, and members of the executive board are less motivated to develop and implement solutions to existing problems. They tend to push to shift the responsibility and liability upwards. They are also not team-oriented and are conflict-averse. Willis should provide training and education to sensitize and capacitate his team on teamwork, personal engagement, conflict, change management, and interpersonal interaction.

Shifting market trends and an ineffective business case is the second structural challenge of Blue Sky Software. The company is losing its major clients to offshore markets due to the lower production cost and prices enjoyed in these offshore sites. This means that the loss is not due to poor products of the company. At the same time, the global market trends are shifting against the organization’s favour, the company continues to invest in the Machine Tool division that is losing market ground. The result is a downward trend facilitated by these two factors. The organization should restructure its business case to minimize its losses in the Machine Tool division and maximize returns on the other two divisions, HR Software division and Health Payment division. It can achieve this by downsizing its Machine Tool investment and increasing its investments in the other two divisions.

The demographics of the company’s workforce is another problem. It has several older employees who are risk-averse and ill-equipped to facilitate the required changes. This group of employees hinders the interests of the younger directors who want to diversify and institute other changes. The solution adopted by the CEO is seconded in this report. Agreeing on an early retirement package for these employees, especially the Machine Tool Vice President, Michael James, will reduce expenditure and allow the young more vagrant change-oriented workers to operate will less opposition and drag.

Summary of recommendations

Based on the challenges and opportunities identified within and outside the company’s organization, the following recommendations were proposed.

The transformational leadership observed in the new CEO is highly recommended to ensure that all employees are motivated towards instituted the vital challenges.
Education and training of all employees are needed to ensure changes are well received, and change resistance is at its minimum threshold. It will also empower teamwork, decision-making, and conflict resolution.
A performance-based incentive or bonus approach is required to motivate the employee to perform more than they did before, as well encourage them to adopt the changes, own them, and utilize them to be part of the change instead of waiting for other to devise solutions and provide guidelines.
A strategic plan is mandatory. It should provide the mission and vision of the organization. It should also include a business case that minimizes focus on traditional products and target customers while maximizing product and market diversification.
The Machine Tool division should be downsized while the HR Software and Health Payment divisions should be expanded and diversified. Notably, if another customer other than Best Dollar Retail Chain is sought, the development of new software that does not compromise its privacy is vital.
Lastly, the action taken to minimize the number of older employees nearing retirement is seconded because it will assist the organization in regaining financial stability before exploring other ventures