Case Analysis Internal Or External Managerthe Case Of Jamie Dimon De ✓ Solved

Case Analysis : Internal or External Manager? The case of Jamie Dimon described in R. Khurana’s book entitled “Searching for a corporate savior†is typical of many organizations, which struggle with the question of whether an external candidate would be better qualified to lead the organization than an internal one. Consider for instance the appointment of Mr. Merret Stierheim as Superintendent of Miami Dade Public School System years ago.

Mr. Stierheim took on the job at a time when a group of civil leaders argued that a change in the organization’s culture was needed, and that such a change required bringing new blood. Some felt that a reputable administrator/manager like Mr. Stierheim was better suited to the job than any internal candidates such as experienced educators and school principals, given the situation of the district. However, the appointment was surrounded by controversy.

Opponents of Mr. Stierheim’s appointment argued that a strictly administrative approach to the school system would be disastrous. Still another controversial case is that of Ms. Marissa Meyer, a Google executive hired to take over the Yahoo’s CEO job, Ms. Mayer faced quite a bit of backslash when she banned telecommuting upon taking over the CEO job at Yahoo.

The following video clip illustrates the measures that she took: Some have attributed the later troubles that Yahoo faced to what in their view was Ms. Mayer’s abrupt break with Yahoo’s corporate culture: Please answer the following questions: 1. In general, under what circumstances do external candidates make better leaders than internal ones? Try to classify your answers within the four quadrants represented in this matrix: Internal External Pros Cons 2. What kind of developmental activities would you have recommended for an external candidate prior to taking a top leadership job?

How about developmental activities for an internal candidate in the same situation? 3. What about the process employed to recruit an external leader? How does this process contrast with the process that should be followed to recruit an internal candidate? 4.

Upon taking his/her new post, what should an external leader immediately do? Is this different from what an internal leader should do?

Paper for above instructions

Introduction

The decision-making process surrounding the appointment of leadership in an organization can significantly affect its strategic direction and overall performance. This case analysis explores the complexities of choosing between internal and external candidates for leadership roles, drawing upon examples such as Jamie Dimon, Mr. Merret Stierheim, and Ms. Marissa Mayer. By evaluating where external candidates may excel versus their internal counterparts, we can bring clarity to this critical organizational decision.

1. Circumstances Favoring External Candidates

The leadership model used in organizations is often conceptualized as a two-dimensional matrix, shaped by internal and external candidates' pros and cons.

Matrix Analysis

| | Internal | External |
|-----------------------|---------------------------------------------------------------|--------------------------------------------------------------|
| Pros | - Familiarity with organizational culture and values (Huselid et al., 2005).
- Established relationships and trust (Charan et al., 2011).
- Deep understanding of operational complexities (Hill & Jones, 2010). | - Fresh perspectives that challenge the status quo (Khurana, 2002).
- Broad experience from diverse industries (Davis & Meyer, 2011).
- Ability to implement change without existing biases (Barker et al., 1997). |
| Cons | - Potential resistance to change (Anderson & Adams, 2019).
- Limited exposure to innovative practices (Battaglio, 2014).
- Caught up in internal politics (Baker et al., 2005). | - Cultural misalignment leading to pushback from teams (Cohen & Bailey, 1997).
- Longer adjustment time to organizational norms (Bromley & Powell, 2015).
- High initial costs and potential for failure if misaligned (Lucier & Bhagat, 2006). |

Analysis of Scenarios

- External Advantage: In situations where organizations are sluggish due to cultural inertia, external managers may be advantageous. For instance, the controversial appointment of Mr. Stierheim in Miami Dade Public School System emphasized the need for new blood to instigate transformation during an era of stagnant engagement in educational leadership (Barker et al., 1997).
- Internal Limitations: Conversely, internal promotions may be more suitable in environments where continuity and stability are paramount, as internal candidates possess existing organizational knowledge and networks, which facilitate smoother transitions (Davis & Meyer, 2011).

2. Recommended Developmental Activities

For External Candidates

External candidates can benefit from several developmental activities, including:
- Cultural Assimilation Training: Understanding the organization's existing culture is crucial (Kotter & Heskett, 1992). Workshops and mentorship programs focused on blending external practices with cultural nuances can ease tension.
- Stakeholder Engagement: Invest time in understanding key stakeholders' motivations and fears (Kahneman, 2011). Setting up meetings with employees, investors, and board members can help build rapport before officially stepping into their role.

For Internal Candidates

For internal candidates, developmental activities should focus on enhancing their leadership skills and preparing them for elevated responsibilities:
- Advanced Leadership Training: Internal candidates should undergo specialized training aimed at sharpening strategic decision-making and leadership skills (Blanchard & Johnson, 2018).
- Cross-Departmental Projects: Encouraging participation in projects outside of their current responsibilities can help internal candidates gain broader experience and visibility across the organization (Kaplan & Norton, 2001).

3. Recruitment Processes

External Candidate Recruitment

Recruiting an external leader often necessitates:
- Talent Acquisition Firms: Organizations frequently rely on search firms that specialize in executive recruitment to identify suitable candidates (Khurana, 2002).
- Robust Assessment: An extensive interview process should be employed to ascertain whether the candidate’s values align with organizational culture (Bromley & Powell, 2015).

Internal Candidate Recruitment

Conversely, recruiting an internal candidate may utilize a more streamlined process:
- Transparent Internal Job Postings: Existing employees should have clear access to available positions to foster a sense of fairness and opportunity (Charan et al., 2011).
- Performance Evaluations: Past performance assessments should guide the selection process, thus reducing the time spent on preliminary evaluations.

4. Initial Actions Post-Appointment

Actions for External Leaders

Upon taking their new position, external leaders should:
- Listen Before Leading: Prioritize stakeholder engagement, comprehending organizational dynamics before suggesting changes (Barker et al., 1997).
- Quick Wins: Identify and execute quick, visible wins to build credibility and ally support within the organization (Kotter, 1996).

Actions for Internal Leaders

In contrast, internal leaders typically should:
- Engage Teams Early: They can leverage existing relationships to solicit input and create alignment on vision and objectives (Anderson & Adams, 2019).
- Reinforce Cultural Continuity: Internal leaders should engage in dialogue around preserving and enhancing cultural strengths, ensuring employees feel safe during transitions (Baker et al., 2005).

Conclusion

When deciding between an internal or external managerial candidate, organizations must assess their unique needs and contextual factors. Grooming talent internally may work in stable environments, whereas external candidates may reinvigorate stagnant organizations. Ultimately, whether an organization opts for homegrown talent or brings in an outsider hinges on their specific challenges, coupled with the need for cultural change.

References

1. Anderson, D., & Adams, S. (2019). Beyond Change Management: How to Achieve Lasting Transformation in Business. Berrett-Koehler Publishers.
2. Baker, W. E., Gibbons, R., & Murphy, K. J. (2005). "Cooperation in Organizations." Organization Science.
3. Battaglio, R. P. (2014). "Public Management: A Case Study Approach." Public Personnel Management.
4. Blanchard, K., & Johnson, S. (2018). The One Minute Manager. Collins Business.
5. Bromley, P., & Powell, W. W. (2015). "From Smoke and Mirrors to Building the Future: Catalysts for Sustainable Change." Academy of Management Perspectives.
6. Charan, R., Drotter, S., & Noel, J. (2011). The Leadership Pipeline: How to Build the Leadership Powered Company. Jossey-Bass.
7. Cohen, S. G., & Bailey, D. E. (1997). "What Makes Teams Work: Group Effectiveness Research from the Shop Floor to the Executive Suite." Journal of Management.
8. Davis, S., & Meyer, C. (2011). Future Wealth: Financial Wisdom for a Financial Crisis. Palgrave Macmillan.
9. Hill, C. W. L., & Jones, G. R. (2010). Strategic Management Theory: An Integrated Approach. Cengage Learning.
10. Huselid, M. A., Becker, B. E., & Beatty, R. W. (2005). "Managing Employee Performance: The Key to Competitive Advantage." MIT Sloan Management Review.
This case analysis encapsulates the critical elements of the selection process for internal and external candidates while providing actionable recommendations supported by theoretical frameworks.