As Alissa Mason drove up the mountain through the rain, she turned up the volume on the radio to clear her mind. However, even the steady rhythm of the truck's windshield wipers steered her mind back to the problem-Gui-do, Gui-do. Ten years earlier, Alissa's dream of opening a Mediterranean-style restaurant came true with the launch- ing of Medici. Even now, Alissa smiled, recalling how the once-annoying habit of mispronunciation (Modi-ki) by ranchers and townspeople had become yet another endear ing quality of owning a business in a small town. In 2000, a graduation gift from her rancher dad pro- vided Alissa the opportunity to travel throughout the Mediterranean region, culminating in a stint at a cook ing school in Tuscany. Upon return to her hometown, and armed with a dream, her MBA, and a box load of ideas for rantalizing meals, Alissa was certain she had the recipe for success. She was right. The opening of the new restaurant in her hometown was a triumph and its popularity and reputation for delicious food spread rapidly, attracting state and regional press coverage. In addition to a strong local customer base, Medici's location on the route from the interstate to several popular mountain re- sorts offered opportunities to become a favorite stopover for tourists, skiers, and hikers. Within a few years, the amazing success of the business and the constant barrage of sugges tions for a second location closer to the resorts encouraged Alissa to consider expansion. The problem would be how she would manage locations almost an hour apart while main- taining the level of quality and service customers expected Guido Bertolli appeared to be the answer to her prayers. A handsome, charming Italian, Guido was a talented chef from a large family of talented chefs. The youngest of four brothers, Guido realized he would nor inherit the family restaurant and decided to immigrate to America to build a reputation as a chef away from his dominating father and brothers. 506 Guido's experience and amazing talents as a chef, his natural ease in managing staff, and the charm and joy he displayed in his interaction with customers soon convinced Alissa that she had found the perfect person to direct the new restaurant. Looking back, she realized her own enthu- siasm for expansion and a starry-eyed impression of the Italian, shared by an adoring public, led to mistakes in her business judgment. Following a fabulous opening, the new restaurant soared to financial success, far out-pacing its small-town sister location. But by the end of the second year, prob- lems loomed. Alissa's travels to the resort location became more frequent, cutting into the time needed at the origi- nal restaurant. Crowds filled the resort location. ("We love Guido." "You're so lucky to have found him.") Patrons waited patiently in lines. However, delivery problems led to frequent changes in popular menu items. Recurring de- linquency in the payment of bills and invoices, as well as Guido's increasingly lax attitude regarding his presence on site, led to confrontations. Realizing his value to the or ganization, Alissa always accepted Guido's promises to do better. Each time, the problems returned, and staff frustra tion at both locations increased. Recently, rumors reached Alissa that Guido was explor ing the possibility of opening his own rival Mediterranean restaurant. Alissa was not sure she wanted to keep Guido, but she did not want her popular chef to move and take devoted customers with him. The bottom line-the clien- tele wanted Guido. Alissa was certain he would be able to obtain financial backing for his venture based upon his tal- ents and popularity. She realized she must do something before Guido moved further into the process. Part 5: Managing Dynamic Processes one to assist Guido with the business details occurred to her, but that meant the addition of another full-time employee- a step she was not sure she could take at this time. As she drove, Alissa was aware of the increasing stress. The situation with Guido was taking over every aspect of her life. The time for serious discussion loomed. For days she had weighed her options. Status Quo Alissa liked Guide and would like to avoid another confron- tation. Her own management style was nonconfrontational and she wondered if sitting down with Guido to discuss a more manageable plan for handling office management de- tails at his location would be a good solution until she could be certain of his future plans. The thought of hiring some Discipline or Fire Guido With a repeat of the same problems that had been ad- dressed on previous occasions, Alissa felt that disciplinary steps were futile. However, firing Guido set up the very situation-her talented chef as a rival-that she wanted to avoid. Still, with his shaky business skills, there was no guarantee he would be able to create a strong business plan, secure financial backing, and sustain a rival restau- rant, despite his popularity and talents as a chef. It would not be the first time a great chef failed as an owner. Focus on Medici II Alissa wondered if it would be better to move the entire operation to the resort. The original restaurant had her heart, but the resort location had the talented chef and the bulk of the clientele. If she closed the first location and maintained only the resort location, she would take over the business side, relieve Guido of the responsibility for which he was obviously ill-suited, and maintain more con- trol over his work habits. Offer Guido a Partnership Rewarding Guido with a partnership might be a way to keep him and impose a stronger sense of loyalty as well as pride in building a greater sense of urgency for his reputa- tion and success as a businessman. However, if she offered Guido a minority stake, she would give up a portion of control and increase his role in the direction and day-to- day operations of the business. Decision Time As Alissa pulled into the parking lot, the rain ended and Guido stepped out of the doorway and waved. With no clear answer, she walked with Guido to his office. Please read the case write up and answer the following questions. Questions: 1. The initial problem was how Alissa would manage locations almost an hour apart while maintaining the level of quality and service customers expected. Does this problem require a routine or non-routine decision? Explain your answer. 2. By the end of the second year, problems loomed. Patrons loved Guido, but there were delivery problems, delinquency in paying bills, and Guido's lax attitude. Alissa has a non-confrontational management style and realizes that Guido could open up a competing restaurant. If you were the consultant, what would you advise Alissa to do?