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Models Of Leadership: Does Character Matter?

Models Of Leadership: Does Character Matter?. Evaluation of the Ryan Case: Not your average Joe. Case Overview, part I.

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Models Of Leadership: Does Character Matter?

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  1. Models Of Leadership:Does Character Matter? Evaluation of the Ryan Case: Not your average Joe

  2. Case Overview, part I Background: After a history of philandering, Glamour-a-Go-Go CEO, Joe Ryan, lands on the front page with a young employee of the company. A debate ensues between two top executives, Roger Cushing, a direct report of Ryan’s, and Roger’s friend and co-exec, Carol Tomkins. The debate focuses on the consequences and implications of Ryan’s latest escapade. The upshot is: • 1. Ryan’s performance as CEO is excellent across the board. His accomplishments include increasing the number of women and people of color, increasing compensation packages (options and salaries), improving profitability, developing short and long term strategies including the formation and implementation of Glamour’s globalization plan. • 2. Ryan was well known for being flirtatious (to say the least) with female employees, some situations more questionable than others. e.g. the Kimberly Crogan promotion. Models of Ledaership: The Ethics Of Leadership - The Joe Ryan Case

  3. Case Overview, part I • 3. Until this event, Ryan’s reputation had been ignored and/or forgiven because of his stellar record of achievement as CEO. The three main issues that this incident call into question are damage to the brand, general level of ridicule the company stands to endure and (most important to Carol) integrity. Moreover, Ryan made a significant effort to get to know employees, solicit their feedback and help them of his own accord. So, he had made personal connections with employees at all levels of the organization which could only have solidified support for his cause during earlier incidents. Models of Ledaership: The Ethics Of Leadership - The Joe Ryan Case

  4. Case Overview, part II Background: the second half of the case focuses on the Board meeting which occurs on the same day. The original meeting agenda is scrapped and the Ryan incident becomes the sole focus of the meeting. The debate that ensues splits the Board members into two camps: those who view Ryan’s accomplishments as a CEO above all else and those who see the incident as immediately relevant to his, and by extension, Glamour’s leadership standards and expectations . • Anti-Ryan Camp (i.e. character does matter): • Glamour will be vulnerable to legal action • Glamour will be publicly embarrassed • Board members likely to face serious opposition from stockholders • Pro-Ryan Camp (i.e. character doesn’t matter): • Ryan has done exceptionally well as CEO • Shareholders will be more upset if Ryan is ousted than by Ryan’s implicit adultery • Impact of Ryan’s personal life will have no affect on customers’ and stakeholders’ decisions Models of Ledaership: The Ethics Of Leadership - The Joe Ryan Case

  5. A Question of Character Commentary: Main Themes • Theme 1: Give the guy another chance • Give Ryan a strict warning, including three parts: employees will be invited to share opinions, real or perceived business threats will result in Ryan’s termination and if Ryan lied to the Board, he’s out automatically. • Remind him that as CEO, his private life is not completely private, so he should make every effort to make it so. Like not continuing to get busted in photographs with other women would be a good first step. • No concrete evidence exists: no harassment claims made, Ryan was never ‘caught in the act’ and no pattern of sex for power tradeoffs. • Theme 2: Remove Mr. Ryan from the courtroom please • Be armed with justification/rationale if Ryan is removed (citing previous incidents, other managers’ previously expressed concerns, Ryan’s numerous previously alleged affairs with employees Models of Ledaership: The Ethics Of Leadership - The Joe Ryan Case

  6. A Question of Character Commentary: Main Themes • Theme 3: Don’t get blindsided again • Agree on a shared ethical framework with which future incidents can be evaluated, including sexual harassment and consensual relations policies designed to avoid these incidents in the future. If the values upon which the company’s culture and identity are predicated are not shared by the Board, it will be virtually impossible to support those values when they are challenged. Love at the office and resulting conflicts of interest are inevitable so institute policy mechanisms to address these issues and enforce them. • Theme 4: Don’t debate the unavoidable • Lawsuits in a litigious culture are a given – do what’s right. • Once it’s in the papers, it’s already public domain. Granting that publicity can exacerbate the problem, once it’s out there, it’s too late to try to keep the issue in house so a public means of dealing with the problem is necessary. Models of Ledaership: The Ethics Of Leadership - The Joe Ryan Case

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