case study:- Noise solutions Inc.

Questions 1. Based on what you've just read, how would you rate the leadership skills of Scott MacDonald? In what ways does he fit the profile of the typical business founder? In what ways is he different? How would you describe his leadership style? 2. Do you think Scott has the leadership skills to ensure Noise Solutions achieves the 100/20/18 goal? 3. Do you think the company is large enough to have expanded to the U.S. or should it have stayed focused in Canada? Noise Solutions Inc. CASE 9 Adjusting for Aggressive Growth A 3 companies grow, especially at a rapid Scottsas, in 2003 the management style of the rate, entrepreneurs often struggle to keep company was very much command and control up with that growth and the organizational dictatorial but as the company grew there was a expansion that comes with it. Delegating tasks, need to build out the team. Originally using Rod's hiring the right people, and managing the cash network, people were hired for various positions requirements of rapid growth are only some of the There was a need to replace Scott in the manu. challenges faced by entrepreneurs, like that of Rod facturing operation to facilitate the leadership and Scott MacDonald transition of the business from Rod to Scott, so an Recognizing an unmet market need, this operations person was hired there. A Controller father and son team created Noise Solutions Inc was hired to oversee the accounting and not too in 1997. The company's mission was to analyze long after a Chief Financial Officer and an interim engineer, and manufacture custom solutions to CEO were hired to work with the MacDonalds to deal with noise pollution in a variety of industries, make sure the succession from Rod to Scott was as with a focus on the Canadian energy and manis seamless as possible facturing sectors. The Calgary, Alberta-based com- Unfortunately, things did not all go as planned pany quickly became the North American industry and the CEO and CFO resigned in 2007 over some leader in turnkey noise analysis and noise suppres suspicion of financial irregularities. "Hiring friends sion solutions for pipeline compressor stations, and family is a bad idea." says Scott. "We had to manufacturing plants and even the NASA crawler regain control and when the economy turned that took the Space Shuttle from the assembly down in 2005 we replaced pretty much the entire building to the launchpad. accounting and management team. Peoples' skill Success came early in finding the first refersets will cap when you grow from $1 million up to ence company, mid-sized Stellarton Energy With S3 or $4 million. We were simply not set up for the this credibility sales began to build to over $1 mil kind of growth we wanted. That's when we made lion by the second year of operation. Manufar the change from hiring people we knew, to looking turing was originally contracted out but it soon for the best person we could find-the best quali- became apparent that the company needed to confied people. My role completely changed from the trol the quality and on-time delivery its customers command and control model to a more collab- demanded. In 2003, Noise Solutions bought out orative approach, building out the management its manufacturing partner. Scott took over manage team. Now I can go away for two weeks and not ment of the plant in Delburne, Alberta, and says worry. If you give your managers autonomy without "the very first thing I did was hire people to come clear direction and vision you will get in trouble. in and clean up the place. It was a mess." He then We don't have that problem today." consolidated administration and accounting with In 2008 Rod opened the company's U.S. opera the Noise Solutions head office and upgraded the tionis in Demer, which quickly became nearly half information and communication technologies so the revenues of the company. As with many busi the manufacturing could be better controlled. ness decisions, lack plays a factor and the late-2008 Sex Peralew with Swt MacDonale for the downturn in the economy quickly saw much of that company website http//www.and And Muly revenue disappear. The company penevered in the y then u panam, C WAIT Pa On The Gold Me May 1, 2016. hu/www.thegloband US and quickly realised it needed to up its pres m./repine/mma/gh/ trocompanyamente para ence there in order to properly serve its customers. article 15.40773/ Gute No Soum. Noise Solutions opened a sales office in Pittsburgh 468 Case 9 Noise Solutions Inc. in 2012 and a new full-service 55,000 square-foot favourite quotes is from Albert Einstein: "A ship manufacturing facility in Sharon, Pennsylvania in is always safe at the shore-but that is not what it 2013. to supplement the 25,000 square-foot Cana is built for." To that point he has positioned the dian operation. Canadian sales have stayed strong company for an aggressive target-to grow the and the company continued to grow, achieving company from $25 million in revenue today to sales of $25 million by 2013 "the goal of 100/20/18-revenues of $100 million Scott became the president of Noise Solutions with 20 percent EBITDA (Earnings Before Taxes, in 2009 and he embarked on a mission of personal Interest, Depreciation and Amortization) by 2018." development that included an Executive MBA The Noise Solutions' ship has clearly left shore from Queen's University in Kingston, Ontario, and is ship-shape to reach its destination safely. and preparing the company to achieve aggres- sive growth. This included upgrading technology infrastructure and systems, but more importantly, Questions upgrading the people side of the business. He brought in consultants to assist with an eight-year 1. Based on what you've just read, how would plan to professionalize the leadership and man- you rate the leadership skills of Scott agement of the company, created the "Senior MacDonald? In what ways does he fit the Leadership Team," and in 2014, he created the profile of the typical business founder? "Future Leaders Team" of employees identified as In what ways is he different? How would you having potential to develop into the next genera- describe his leadership style? tion of senior leaders. 2. Do you think Scott has the leadership skills Having already achieved several awards for to ensure Noise Solutions achieves the innovation and growth and being identified as one 100/20/18 goal? of Canada's fastest-growing companies in 2013 by 3. Do you think the company is large enough to PROFIT magazine, Scott is not prepared to have have expanded to the U.S. or should it have the company rest on its past success. One of his stayed focused in Canada