Case Three Rachel Adams began as a researcher at a large pharmaceutical company. After several years of observing how clinical drug studies were conducted, she realized that there was a need and an opportunity for a research center not connected with a specific pharmaceutical company. In collaboration with other researchers, she launched a new company that was the first of its kind in the country. Within 5 years, Rachel had become president and CEO of the Independent Center for Clinical Research (ICCR). Under Rachels leadership, ICCR has grown to a company with revenues of $6 million and profits of $1 million. ICCR employs 100 full-time employees, most of whom are women. Rachel wants ICCR to continue its pattern of formidable growth. Her vision for the company is to make it a model research center that will blend credible science with efficient and cost-effective clinical trials. To that end, the company, which is situated in a large urban setting, maintains strong links to academia, industry, and the community. Rachel and her style have a great deal to do with the success of ICCR. She is a freethinker who is always open to new ideas, opportunities, and approaches. She is a positive person who enjoys the nuances of life, and she is not afraid to take risks. Her optimistic approach has had a significant influence on the companys achievements and its organizational climate. People employed at ICCR claim they have never worked at a place that is so progressive and so positive in how it treats its employees and customers. The women employees at ICCR feel particularly strongly about Rachels leadership, and many of them use Rachel as a role model. It is not by accident that the majority (85%) of the people who work at ICCR are women. Her support for womens concerns is evident in the type of drug studies the company selects to conduct and in her service to national committees on womens health and research issues. Within ICCR, Rachel has designed an on-site day care program, flextime scheduling for mothers with young children, and a benefit package that gives full health coverage to part-time employees. At a time when most companies are searching for ways to include more women in decision making, ICCR has women in established leadership positions at all levels. Although Rachel has been extremely effective at ICCR, the success of the company has resulted in many changes that have affected Rachels leadership at the company. Rapid growth of ICCR has required that Rachel spend a great deal of time traveling throughout the country. Because of her excessive travel, Rachel has begun to feel distant from the day-to-day operations of ICCR. She has begun to feel as if she is losing her handle on what makes the company tick. For example, although she used to give weekly pep talks to supervisors, she finds that she now gives two formal presentations a year. Rachel also complains of feeling estranged from employees at the company. At a recent directors meeting, she expressed frustration that people no longer called her by her first name, and others did not even know who she was. Growth at ICCR has also demanded that more planning and decision making be delegated to department heads. This has been problematic for Rachel, particularly in the area of strategic planning. Rachel finds that the department heads are beginning to shift the focus of ICCR in a direction that contradicts her ideal model of what the company should be and what it is best at doing. Rachel built the company on the idea that ICCR would be a strong blend of credible science and cost-effective clinical trials, and she does not want to give up that model. The directors, on the other hand, would like to see ICCR become similar to a standard pharmaceutical company dedicated primarily to the research and development of new drugs. Questions 1. What is it about Rachels leadership that clearly suggests that she is engaged in transformational leadership? 2. In what ways has the growth of ICCR had an impact on Rachels leadership? 3. Given the problems Rachel is confronting as a result of the growth of the company, what should she do to reestablish herself as a transformational leader at ICCR?