Read the following case:

Integrating teams at hernandez & associates marco hernandez is president of hernandez & associates inc., a full service advertising agency with clients across north america. The company provides a variety of marketing services to support its diverse group of clients. Whether called on to generate a strategic plan, create interactive web sites, or put together a full blown media campaign, the team at hernandez & associates prides iteself on creative solutions to its clients' marketing challenges. The firm was founded in 1990 with an emphasis in the real estate industry. It quickly expanded its client base to include health care, as well as food and consumer products. Like many small firms, the company grew quickky in the "high flying" 1990's, but its adminmistrative costs to obtain and serve businesses also skyrocketed. And, as with many businesses, the agency's business was greatly affected by the terrorist attacks of september 11, 2001, and the economic downturn that followed. Clients' shrinking budgets forced them to scale back their business with hernandez & associates, and staff cutbacks meant that clients needed more marketing support services as opposed to full scale campaigns. Hernandez & associates now faced a challenge, to adapt its business to focus on what the clients were asking for. Specifically clients with their reduced staffs, were looking for help responding to their cusotmers' requests and looking for ways to make the most of their limited marketing budgets. Its small, cohesive staff of 20 employees needed to make some fast changes. As president of hernandez & associates, marco hernandez knew his team was up for the challenge. He had worked hard to create an environment to support a successful team. He recruited people who had solid agency experience, and he consistently communiccated the firm's mission to his team. He made sure the team had all the resources it needed to succeed and contstatnly took stock of these resources. He had built his team as te built his business and knew the gropu would respond to his leadership. But where to start? Getting the team to undertand the growth depended on a shift in how it served its clients was not difficult, each of the employees of the small firm had enough contact with the clients that they knew client needs were changing. But making significant changes to the status quo at hernandez & associates would be difficult. Group roles had to change. Creative folks had to think about how to increase a client's phone inquiries and web site visits; account people needed a better understanding of the clients desire for more agency leadership and everyone needed a better sense of the costs involved. The company as a whole required a more intergrated approach to servicing clients if they h oped to survive. Marco needed a plan: â

1. Like many leaders, marco had a team in place and does not have the luxury of building a new team to adapt to the changing business environment his firm now faces. Use the tlm to help marco diagnose the problems faced by the firm and identify leverage points for change.

A. considers the major functions of the tlm--input process, and output. Where do most of the firm's challenges fall?

B. What are the team's goals for outputs?

2. Identify potential resources for marco and his team in implementing a strategy to change the way they do business at hernandez & associates.