answer the three questions in case study 12.1

. Eid Mubarak-du 39% 10:21 PM blackboard.adu.ac.ae Case Study 12.1 RHONDA CLARK: TAKING CHARGE AT THE SMITH FOUNDATION Joseph C. Santora, Essex County College and TST, Inc. Dr. Rhonda Clark was ecstatic as she hung up the thomy question of how she could take charge of the telephone. Bennett Mitchell, chairperson of KLS board of directors to ensure the mission of the orga- Executive Search firm, had just informed her that nization would be accomplished. she landed the coveted position of chief executive officer (CEO) at the Smith Foundation, a nonprofit Background organization whose mission was to fund public awareness campaigns and research programs about Charlie Smith, an industrialist and philanthropist, had eye care. Clark knew that she had just pulled off a founded the Smith Foundation 40 years ago with a major coup. Her appointment to this new, challeng multimillion dollar endowment. Despite this gener ing position would indeed be the high point in a ous financial start-up capital and additional income long, arduous climb to the executive suite. As an derived from several financial investments and major organizational outsider-one with no work experi- corporate donations, in recent years the foundation's ence within the hiring organization-she assumed endowment has been slowly dwindling as a result of that her appointment as CEO signaled a strong significant funding awards to academics, community desire by the board to shake up the organizational organizations, and smaller, less well-funded founda- status quo. However, she heard from a reliable in- tions. Board members had held some preliminary dis side source that the same board that hired her and cussions about developing new innovative strategies charged her with the responsibility of transforming to strengthen the balance sheet of the organization. the foundation was extremely fragmented. The often Currently the foundation was operating on an annual rambunctious board had forced the last five CEOs budget of slightly less than $1,500,000 (USD). to resign after short tenures. Clark's feeling of exhil- In the last five years some foundation board aration was rapidly being replaced by cautious members had begun to abandon many of their optimism. As a new CEO, she pondered the rather fiduciary responsibilities. Over the past few months 362 several board meetings had been canceled because Jackson thought to himself, "We've removed CEOs the meetings lacked a quorum. In general, this 13- before, we can remove Clark, too." member board seemed to drift aimlessly in one di- After hearing Jackson's comments, Clark decided rection or another. The board had been operating at to take another tack. She began to focus on making only 70 percent capacity for the past two years with external and internal inroads that she believed could nine active board members-five men and result in some modest gains for the foundation. For four women. example, she identified and developed a close rela- tionship with a few well-connected city agency Challenges executives, persuaded some supporters to nominate her for membership on two influential boards, and Dr. Rhonda Clark believed she was the one who forged a relationship with two key foundation deci- could lead the Smith Foundation. She had great aca sion makers and political power brokers. She recon- demic credentials and management experience that figured the internal structure of the foundation to would help her tackle her new position as the foun- increase maximum productivity from the staff, and dation head. In the last 30 years the 54-year-old she tightened budgetary controls by changing some Clark, who held a PhD in political science and pol fiscal policies and procedures. icy analysis from a major U.S. West Coast university, Clark also sought the support of Susan Frost, a had gained an enviable amount of managerial expe board member who likely had been instrumental rience in the nonprofit and public sectors. Past pro- in Clark's appointment as CEO. Clark said to her- fessional experiences included a graduate school self, "If I can develop a strong symbiotic relation- professorship, as well as being a director of research ship with some female board members, like Sue, to for a major statewide political office holder, the di support my plan, then maybe I get some traction." rector of planning in a large metropolitan hospital. To do this Clark held a number of late evening and the director of programs at a small foundation meetings with Sue and another female board mem- Immediately upon taking office, Clark was as ber. They indicated their willingness to help her, tounded to learn that a small but active and influen- but only if she would consider implementing a few tial faction on the board had withdrawn its initial of their ideas for the foundation as well as recom- verbal promise to assist her in working closely with mending their close friend for a current staff va the corporate community. Essentially, she was cancy. Clark knew they were trying to exercise informed that she was solely responsible for all ex- their political influence; yet she believed that ev- ternal corporate relations, Clark thought to herself. eryone could benefit from this quid quo pro relation- "I wonder if they hired me because they thought ship. She said to herself. "I guess it's a matter of 1 Eid Mubarak-du 10:22 PM 39% blackboard.adu.ac.ae "I wonder if they hired me because they thought ship. She said to herself, "I guess it's a matter of they would get a 'do-nothing female leader. These you scratch my back, and I scratch yours." She ea folks want me to either sink or swim on my own. gerly agreed to move their agenda along. In a mat- Perhaps they set me up for failure by giving me a ter of a few weeks, as promised, they began working one-year appointment." She lamented, "I won't let on a couple of relatively sympathetic board mem- this happen. I really need to learn about the key bers. One day Clark got a terse but crucial tele- decision makers and stakeholders on the board and phone call from Sue. Several of us support you. in the larger community, and fast." Proceed!" At the last board meeting Clark detailed the ma- Once she heard this, Clark began to move at jor elements of her latest proposal. Yet several board lightning speed. She formed a 15-member coalition members seemed totally unfazed by it. Soon she be of community, educational, and quasi-governmental gan to encounter stiff resistance from some male agencies that would apply for a collaborative federal board members. Jim Jackson, in particular, told grant to create a public awareness campaign for chil- Clark, "We are disappointed that you failed to win a dren's eye health. Through the dissemination of city contract to conduct a feasibility study to deter- various media, coalition members would help to in- mine if we can erect a facility in another section of form the community about various eye diseases that town. We're not certain if you have the right stuff to afflict young children. Shortly afterward Clark run this foundation, and we certainly won't help you received notification from a federal agency that this to gain financial support for the foundation by using multi-agency project would be awarded a million- our personal, corporate, or political contacts." dollar grant. Clark would serve as the administrative 363 and fiscal agent of the grant, and as a result, she what she believed to have been a tumultuous year would be able to earmark a considerable amount of as CEO the administrative oversight dollars for the founda- tion's budget. For her efforts in coordinating this project, Clark received high marks from coalition Discussion Questions and community members alike. 1. Does Clark have any sources of power and any con- Yet despite this important initial accomplishment, tingencies of power? If so, list and discuss them. Clark had the unpleasant task of notifying the full board that due to some unforeseen problems and 2. To what degree were Clark's methods of influenc- ing board members the most effective possible their lack of support on certain key initiatives, the under the circumstances presented in the case? foundation would still experience a financial deficit She heard several rumors that her next employment 3. Do you think her methods of getting things done contract would not be renewed by the executive com at the foundation were ethical? Why or why not? mittee of the board. At this point she thought about Note: The names and some managerial actions in directly confronting the obstructionists on the board this case have been altered to preserve the integrity by telling them that they were unreasonable and in and anonymity of the organization. This case is in fact that they were why the foundation had not recov-tended to be used as a basis for class discussion ered during the past year ... but she hesitated: She rather than to illustrate either effective or ineffective had signed on to do a job, and she was unsure if this handling of a management situation, was the wisest action to take at this time. Despite this latest conflict between herself and Joseph C Santora. Source: Joseph C. Suntora, Essex County certain board members, she paused to reflect on College and TST, Inc. Case Study 12.2 SHAKING UP OXFORD BusinessWeek John Hood may be soft-spoken, article at www.mhhe.com/mcshanele and prepare for but the New Zealand bor vice the discussion questions below. chancellor of Oxford University shows flashes of the steely determination that first Discussion Questions convinced Oxford's search committee to hire him to give the place a top-to-bottom management overhaul. 1. John Hood claims that he has no power or author Hood's decisive actions have created few friends ity in his job. Is he correct? What other sources among the scholars, but he claims he is merely of power work for and against him during this working in the university community's best interests. change process? "I am here as the servant of the scholars," says Hood. 2 What influence tactics has Head used that are mm