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Case Study – Hygie Laboratories Hygie Laboratories is a pharmaceutical company that is owned and controlled by its founder, Joe Kerry, a doctor (PhD) in pharmacy. During its 25 years of existence, the company has developed a solid reputation in pioneering new products in skincare and cosmetics. Thanks to its organizational capabilities for innovation, its choice of natural substances for product development, and the strong vision of its founder, the company has achieved sustainable growth for the last two decades. The company is organized around four divisions: oncology, immunology, family medication and dermo-cosmetics. The division that has been steadily generating the most of revenues for Hygie is the dermo-cosmetics division, and as a result, the scientists of the dermo- cosmetics division benefit from a superstar status among all employees, Kerry, the CEO, has been working closely with them. CEO Kerry Family Medication Biden (SVP) Oncology Gates (SVP) Immunology Carter (SVP) Dermo- cosmetics Holder (SVP) Salazar Lynch Lew Duncan Donovan Fox Johnson Chu Rice Mills Jarrett Murray Messina King Gibbs Carney Craig Jones Powell Walter Jackson Romer Castro Flynn Recently, however, Kerry started fearing that the company was losing its competitive advantage. The heavy reliance on the success of the dermo-cosmetics division seemed to impede somehow on the growth of the other divisions. In order to facilitate further innovation and development of the other divisions, Kerry decided to support the other divisions both financially (by increasing their budgets) and politically (by providing more support, allocating more time, participating in meetings, etc.). Soon after this change of strategic focus, certain employees of the dermo-cosmetics division expressed grievances. Their complaints were about compensation, but Kerry sensed that they were fearful about losing their privileged status in the company. Kerry’s reaction was immediate: to invite members from all four divisions to participate in strategic planning. To this end, he formed a cross-divisional team, and he assigned leadership of the team to a member of the cosmetics division, as a sign of his continuous commitment to this specific division. Kerry was a hands-on CEO, therefore he believed that he knew his employees very well. So, he chose the most experienced employees from all divisions to participate in the strategic planning task force. Gibbs was the most experienced in the cosmetics division, and Kerry appointed him as the leader of the team. The first meeting of the task force was fruitful. Many ideas about future paths, short-term and long-term objectives, development of new capabilities, were floating in the air. Kerry was confident that the cross-divisional team was helping to re-center all divisions around common organizational goals. In spite of a positive start, the strategic task force has reached a stalemate within a month Not only progress has not been made, but even worst, disagreement among members of the different divisions is growing bigger. Questions 1. How would you apply the network approach in order to identify the cause of the deadlock in the strategic task force? In answering this question, make sure that: a. you use the appropriate network terminology, and b. you describe the method step by step, specifying what it is that you will measure, how and why, as well as any problems that you should anticipate in collecting the data. [tip: you will need to examine more than one networks.] 2. How would you use the results of your analysis in order to form a more effective task force?
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