Even as Cecily Blake reads the latest news in an industry trade publication, she’s well aware that Blake-Lyon Tech is falling behind its competitors. Years ago, when Cecily founded Blake-Lyon, she centered it in a pure hierarchal structure, where all of the engineers and technicians reported upward to her. At the time, she was able to steer the organization toward new and more innovative products and procedures; now, as competition grows, Cecily is aware that Blake-Lyon cannot keep up.

One significant problem facing the company is the slow pace of communication. Blake-Lyon is committed to hiring the finest technicians and personnel, but lags behind its competitors because it is slow to respond to market changes. Because every new concept must go through each channel, including departments that have little to no impact on decision making, Blake-Lyon is no longer at the forefront of the industry—even though Cecily knows that her workers are more than capable of creating better technology quicker.

Part of Cecily’s great reservation in changing the structure of her company is the impact on her top executives. They are effective managers who have been with the company a long time and have been loyal, effective employees. Most of them have been with her from the beginning and are largely responsible for the growth of Blake-Lyon, especially in such a competitive, high-turnover environment. Cecily doesn’t want to turn her back on the very people who help her create such a successful organization. However, so many layers of managers through which all decisions need to pass are making Blake-Lyon a dinosaur in the fast-paced technology industry. She won’t allow her company to go under; everyone would be hurt by that. But the change would force the elimination of these well respected, loyal executives who are at an age that would make it difficult for them to find new jobs.

Questions

1. Using consequential, rule-based and character theories, evaluate Cecily’s options.

2. What should Cecily do? Why?