Columbia Corp. is a young, rapidly growing company that manufactures computer accessories and specialized components for networked computer workstations. It has some unique products and a strong reputation for quality. Sales of company products have been good, and a recent contract with a large computer company is likely to increase sales. However, along with this success the company is also experiencing some problems. Quality rejects have begun to increase, and in recent months the company failed repeatedly to meet delivery schedules. The top executives include Matt Walsh, CEO and founder of the company, and the vice presidents of production, engineering, sales, and accounting. Walsh is a forceful manager who tightly controls important decisions in the company. The other executives are required to get his approval before making any significant changes in operations. Walsh's style has been to deal with each VP separately, rather than meeting as a group to address problems. Relationships between departments have been deteriorating for the past two years. Distrust, competition, and political maneuvering have increased, and Walsh intervenes frequently to resolve conflicts between executives. The distrust and hostility have spilled over to relationships among lower-level employees of the departments. The Production VP believes that the rash of quality problems is the result of frequent changes in product design by the engineering department. There is little warning of these changes and insufficient time to determine how to make necessary adjustments in production methods. As for the delivery problems, the Production VP believes that the sales department makes unrealistic promises to win new customers. Production capacity has not increased fast enough to meet the growing volume of orders, and additional delays are caused by product modifications designed for customers by engineering. Another reason production is behind schedule is the decision by the Accounting VP to abruptly cancel all overtime for production employees for the remainder of this month. This action appears unwarranted, and the Production VP has asked Walsh to reverse this decision. The Sales VP blames the late deliveries on manufacturing delays. She believes the production people spend so much time trying to correct quality problems that they can't get the product out the door. The Sales VP and the Engineering VP both believe the Production VP is set in his ways and unwilling to adapt to the special needs of important customers. The Sales VP is also upset with the Accounting VP for tightening customer credit requirements without prior notice. She only discovered the new policy when a key customer complained after credit was denied on a large order. The Sales VP believes the new policy will reduce sales, and the reduction will be blamed on her. She complained to Walsh, who apparently approved the decision without understanding the implications. Concerned about the growing problems, Walsh asked a management consultant for advice on how get his executive team to be more effective in understanding and resolving key problems such as insufficient production capacity and declining quality.

Questions

1. What issues must be resolved to create an effective executive team?

2. What types of changes are needed in how Matt leads the team?