HBR Case Study: Challenge the Boss or Stand Down?

HBR’s fictionalized case studies present dilemmas faced by leaders in real companies and offer solutions from experts. This one is based on the HBS Case Study “Thomas Green: Power, Office Politics, and a Career in Crisis” (case no. 2095), by W. Earl Sasser and Heather Beckham. It is available at hbr.org. Thomas Green winced as he reread an e-mail message from his new boss, Frank Davis, marketing director for the travel and hospitality group at D7 Displays. “Tom, this week’s client meetings went well, but they would have gone better if you had been on top of the market data,” it read. “When you’re on your own, I expect you to be better prepared. It’s essential for your new responsibilities in developing market strategies for your region.” Tom looked up from his paper-strewn desk and glumly surveyed the view from his new 20th-floor office in midtown Atlanta. Just a few months ago he was the company’s fastest-rising star, promoted, he thought, to bring fresh thinking to the firm’s self-service kiosk business. He’d catapulted from account executive to his new position as a senior marketing specialist, bypassing colleagues and collecting a 50% raise. And hardly six weeks later, he was being lectured—again—about how to win a sale. Unless he could get a handle on his new boss, Tom figured he’d be lucky to make it to his one-year anniversary. A single rap on the door snapped Tom out of his reverie. Frank Davis immediately let himself in. “Taking a break, Tom?” “No, Frank,” Tom replied coolly. “I was thinking through my kiosk-services development project. If we can’t get new offerings out there soon, we won’t be able to compete in this business. I know you’re not a fan of the project, but—” “Did you read my e-mail?” “Yes, I did.” “And?” “And, yes, I will prepare better.” “Good,” Frank said. “And, Tom, I need you to put your skunk works project on hold. The market-strategy meeting is next week, and I still haven’t seen your plan, which was due yesterday. That is your one and only priority right now. Capisce?” “Understood,” Tom said wearily. The Tricky Fast Track D7 Displays, launched in 1990 as an ATM provider, now dominated the self-service kiosk business. With 1,500 self-check-in stations in 75 airports, the firm had sewn up 60% of the air-carrier market and was making inroads into hotels and car rental agencies. Tom had joined the company just a year before, at age 28, and he immediately set about getting noticed. Within weeks he had secured a contract with a major airline to accelerate kiosk rollout in 20 airports and buy software upgrades across their locations. He’d also worked the back channels to get the ear of his division’s software-development director and push his ideas about new service offerings—an unorthodox move that ruffled some midlevel feathers but got senior management’s attention. It was clear to Tom that for the kiosk business to compete with web-based check-in services, increasing penetration wasn’t enough. Kiosks had to offer unique advantages to both customers and clients—for example, digital advertising displayed on screens while kiosks are not in use and cross-selling opportunities such as links to travel partners whose services fit the check-in passenger’s profile. At a training session in midtown, Tom hit it off with Shannon McDonald, the division vice president. Both were University of Georgia alums, and Shannon, sensing his potential, made an effort to get to know him. Tom, for his part, instantly realized that Shannon could be his ticket to the fast track. When a senior marketing specialist position opened up for the Eastern North America region, he pounced. During the ensuing month, he made multiple trips to Shannon at headquarters and outlined the client opportunities he saw and his strategies for winning them. She offered him the job over dinner. Tom vividly remembered that evening. He and Shannon had appeared to see eye-to-eye on the company’s imminent challenges. But he particularly recalled her words of caution, which in retrospect seemed especially ominous. “Tom, you’re ambitious and creative,” she’d begun, solemnly. “This group needs a fresh perspective, and I’m willing to take a chance with you. But you’ll have to learn quickly. You don’t have managerial experience, and while you’ve nailed your sales roles, this position requires you to think strategically as well as tactically—and to work across layers of management. I expect you to seek guidance from some of our seasoned managers.” Tom had assured Shannon that he’d do his best, and he was taken aback by her response. “I’m sure you will, Tom, but you’re walking into a tricky situation with Frank. He has very aggressive growth goals for next year—maybe more than the market data warrant. You’ll have to manage that. He’d also expected to choose the new senior marketing specialist—and he would not have chosen you.” She paused. “I need you to do better than your best.” Um, That Went Well By the time Tom found the room for the strategy-planning meeting, the rest of the 12-person senior sales and marketing team had already assembled. Catching his breath, he squeezed in at the long oval table, planting his iPad before him. “Glad you could make it, Tom,” Frank began. After a deliberate pause, he continued. “Welcome, everyone. We’ll be reviewing sales projections for the coming year, performance expectations for the senior marketing specialists and their teams, and overall strategy for meeting those. We’ve realized a 10% CAGR over the past five years, and corporate expects this division to continue to be a growth engine. Before I walk through the detailed analysis, let me give you the executive summary.” Frank projected a slide showing a U.S. map with each of the company’s five sales regions. “Given the market opportunities in the Eastern region, Tom and his team will have the most-aggressive growth targets—15% for the airline, hotel, and car rental markets combined. Next, the South Central region—” “Frank?” Tom interrupted. “There’s no way we can achieve double-digit growth this year.” “Excuse me?” Frank responded, astonished. The room was silent. “It can’t be done with our current offerings. I was with clients in New York, Boston, and Orlando last week. Airline kiosks represent a mature, saturated market. The airlines are hurting, and they’re flocking to competing web-based check-in and asking why they should keep buying an outmoded product that’s expensive to install and maintain. Web services do the same thing but cheaper.” Frank took a deep breath. “Tom, most of our revenues come from the airlines market. But hotels and car rental agencies are wide open: 15% and 5% of revenues, respectively. As we’ve discussed,” Frank continued, enunciating each word, “you’ll be pushing into those markets. That’s where the growth will be.” Tom spun his iPad so that everyone could see it. “Before the meeting I checked in through this web service for my flight this afternoon to DC. It was almost too easy. It doesn’t require hardware installation, maintenance, or expensive proprietary-software upgrades. The only way our kiosks can compete is for us to develop kiosk-based services that generate revenue for clients or offer other benefits web services can’t. The writing’s on the wall.” “Tom,” Frank interjected, “I don’t seem to be getting through to you. Our client airlines have invested heavily in our kiosk hardware and infrastructure. They won’t just pull the plug. If you turn your attention to developing market strategy, you could put kiosks in every hotel and car rental agency in your region.” Tom hesitated but couldn’t contain his frustration. “Actually, Frank, I’ve been out there talking with prospects and clients. A lot. Those industries have nothing like the appetite that airlines had in the early years. Hotels are high-touch services: Customers want a human, not a kiosk. Car rental companies need no more than a few kiosks, even at high-volume airports. You’re comparing apples and oranges.” Silence. At last, Frank spoke. “As I said, Tom’s growth target for the Eastern region for next year is 15%. Now, does anyone object to moving on to South Central? Good.” And That Went Even Better Tom poked his head in Frank’s door. “You wanted to see me?” He knew what was coming. From day one, he’d felt like Frank was out to get him. Yes, sometimes Tom liked to shoot from the hip, but that style had helped him land some big accounts. Unfortunately, it roiled Frank. From day one, Tom had felt like Frank was out to get him. “Have a seat, Tom.” Tom dropped into a low leather chair facing Frank’s desk. “I just e-mailed Shannon McDonald and cc’ed you. Your performance at today’s meeting was way out of line. If you ever publicly challenge me again, I’ll do more than send an e-mail. But the problem is bigger than bad manners. This job requires more than your sales smarts. You’re thinking like a lone-gun account executive when you should be focusing on regional strategy development, teamwork, and clear communication up and down the chain of command. It’s not just your attitude; it’s your entire outlook.” “Your performance at today’s meeting was way out of line. If you ever publicly challenge me again, I’ll do more than send an e-mail.” Frank handed Tom a copy of the e-mail he’d sent to Shannon. “This memo details your shortcomings—and corrective measures for them.” Skimming, Tom caught phrases like “poor judgment” and “questionable behavior.” “Tom, I’m going to keep closer tabs on you. You’ll inform me of your detailed plans and update me on your schedule on a daily basis. I found out from one of your account execs that you were in New York when I thought you were in Boston—” “But I was going to tell you!” Tom interjected. “I finished my Boston client meetings early and was able to get time with the software VP at IndiZm in New York to discuss new kiosk services. It’s part of the software-development project.” “Yes, but you’re off that project now. Your Outlook calendar said you were in Boston, and I got shunted to your voice mail when I called. From now on, you’ll update Outlook daily and return messages from the office promptly. I will need to see your specific client-communications strategies before your sales calls, and to review all sales collateral in advance. You will stop making client calls purely to meet people. You’ll produce reports by the deadline. Finally, you’ll have a more positive attitude both inside and outside the company.” “I don’t have a bad attitude,” Tom objected. “I’m trying to develop our offerings so that web services don’t eat us for lunch. Five years ago, only about half of U.S. leisure passengers used web check-in. Do you know what the figure is today?” Frank narrowed his eyes. “Yes, I’m aware of web competition, Tom. I’ve been doing this for 20 years. As I said, the airlines won’t throw their big investments in hardware out the window, trust me. Next year’s growth is in expanding our penetration of the hotel and car rental markets, and that’s where you’ll focus. After you’ve made progress there, we can talk about your software project. End of discussion.” As Tom headed down the hall to his office, he muttered under his breath, “I don’t think so.” Heck of an Outlook Tom laid low for the rest of the week and considered his options. The lull in Frank’s criticism gave him a dim hope that the worst was over. As Tom scanned his Outlook calendar and gloomily considered updating it, he spotted an alarming new e-mail in the queue. It was from Shannon McDonald. cc: Frank Davis. Subject: Performance. “Frank Davis has explained to me his point of view on your performance,” the message began. “I think all of us want to improve the current regrettable situation. Frank has articulated his expectations for your improvement over the next 30 days, after which he and I will re-evaluate your continued suitability for the position. At this point, I would like to get your ideas about how you can improve your performance. Please send a statement in writing within 48 hours so that we can resolve this issue promptly.” Later, as Tom drove his E82 coupe north on Peachtree Street toward his new condo in Buckhead, it seemed unwise to have bought a car and house so soon. Frank wasn’t merely whining about Tom’s style; he appeared to be building a by-the-book case for firing him. Tom could envision only two scenarios for staying with the company: (1) Do as he was told, change his style to suit Frank’s agenda, and execute on a strategy he believed was flawed; or (2) expose the full extent of Frank’s dubious projections and strategy to Shannon, his original sponsor, and hope she’d rescue and redeploy him. As Tom fought his way through the rush-hour traffic, he kept coming back to the only thing that was certain: It was a hell of a time to be out of work. What Would You Do? Some advice from the HBR.org community Tom should find a way to creatively meet the boss’s expectations and increase market growth to 15%, if not 18%. That will earn Frank’s respect and allow Tom leverage to do his job his way in the future. Cynthia M. Powell, graduate student, Vanderbilt University I’ve been a Tom, but I handled it differently. I completely disagreed with my boss, but before any public discussions or actions, I asked to see him in person. He saw me as loyal yet strong enough to face the big bear. Joel Stock, president and CEO, Westmont Corporation Tom is doomed and should begin to look for another job immediately. People like Frank run good businesses into the ground because they can’t adapt to change. Frank is too wrapped up in himself to admit he may be wrong. Stefani Schow, stay-at-home mother; former publishing supervisor, Robertson Stephens The real mistake here is Shannon’s. She should have let Frank interview Tom before he was hired. Then Frank would feel more in charge of Tom and would not have to show him who is boss. Adam Ibrahim Salem, corporate director of finance, B & G for Hospitality Business Tom can’t change his boss; he can only change himself. If Tom wants to succeed in his new job, he needs to forget about what anyone else “should” do and focus on his own actions. Dorothy Nesbit, director and leadership coach, Learning for Life How should Tom respond to Frank’s demands? Jeffrey Pfeffer is the Thomas D. Dee II Professor of Organizational Behavior at the Graduate School of Business, Stanford University. He is the author of Power: Why Some People Have It—and Others Don’t (HarperBusiness, 2010). Thomas Green faced a set of predictable problems that he failed to forestall. Instead of further poisoning his relationship with his boss by seeking to “expose” him, Tom should now start to repair the damage he’s done to both his professional relationships and his career prospects. Tom’s first mistake was in neglecting to consider that he was not his boss’s choice for the position of senior marketing specialist. From the outset he should have recognized the significance of that initial strike against him and, therefore, should have made it a top priority to earn Frank’s trust right away. But he did just the opposite: failing to deliver an important report on time and not keeping Frank informed about his work in general. Most glaringly, he challenged his boss’s authority publicly. Tom may believe that hierarchy doesn’t matter so much in today’s corporate world, but bosses still love the sort of deference that validates their status. Tom’s second mistake was in assuming that merely articulating his impression of the competitive threat from web-based offerings would immediately change the minds of his boss and others in the organization. Tom spent virtually no time building the close social ties with people that would give him the credibility to convince them of his perspective. For example, after his promotion, Tom didn’t brief Shannon on what he had learned and accomplished in his new role. She had no way of knowing about the contributions he was making and thus had little reason to continue to support him. Her only information about Tom was the negative feedback she had been seeing from Frank. Fortunately, it’s not too late for Tom to repair this damage, although he must act quickly. He should start by apologizing to Frank for challenging him in public, then follow up by doing exactly what Frank asks and keeping him in the loop on all developments. Tom should also apply the power of flattery, which research shows is all but impossible to overuse. He should acknowledge Frank’s many years of experience and ask for his assistance in thinking through the competitive challenge that web services present to D7 Displays. Asking for help not only secures it, but also flatters the person being asked. Finally, Tom must reconnect with Shannon in a carefully considered way. He should set up an in-person meeting with her rather than respond in an e-mail (which could be forwarded). In that meeting Tom needs to apologize for the problems with Frank and for not keeping Shannon adequately informed about his efforts, including learning about the competitive challenges facing the company and building new customer accounts. He should ask her to be his mentor, especially in working effectively with Frank. This outreach is likely to rekindle Shannon’s support for Tom. Tom needs to spend more of his time managing up if he wants to avoid getting managed out of the company. Companies are social systems made up of individuals whose self-esteem must be taken into account. Tom needs to spend more of his time managing up if he wants to avoid getting managed out of D7 Displays. Paul Falcone is the vice president of human resources at Time Warner Cable. He is the author of 101 Tough Conversations to Have with Employees (Amacom, 2009). Tom needs to ask himself what he believes is right and then follow his heart. It doesn’t make sense for him to be blindly obedient if he is unshakably convinced that his boss Frank is sending him and the company in the wrong direction. That does not mean, however, that his only alternative is to expose Frank’s supposed incompetence. Tom has more options than the two he lays out for himself. It’s not an either/or proposition. First, let’s look at what isn’t an option. No one wants to explain having been fired to a prospective employer, so Tom needs to make every effort to avoid termination. At the top of the list of steps he can take is to abandon the ill-conceived notion of going over Frank’s head to Shannon. Her e-mail to Tom reveals why that’s a bad idea: “Frank has indicated to me his expectations for your improvement over the next 30 days, after which he and I will re-evaluate your continued suitability for the position.” Shannon is obviously taking up ranks with Frank on this one, and trying to pit them against each other will surely backfire on Tom, especially given Shannon’s earlier warning that he would have to manage his relationship with Frank. Trying to pit Shannon and Frank against each other will surely backfire. There are plenty of Franks out there, and they may get tougher to handle the higher up the ladder Tom goes. As he runs across other bosses with whom he disagrees, he can still identify ways to work effectively with them. If he wants to pursue a corporate career path, Tom will need to find humility within himself as he advocates for his point of view and builds support for it. It shows a striking lack of business maturity for Tom to assume that he’d outthought Frank, who has 20 years of experience, or that he has superior market intelligence because of a few recent conversations with clients. If Tom wishes to stay at D7 Displays, he will need to develop—and then demonstrate—maturity by extending an olive branch to Frank and following his guidelines to a T. Tom may want to leave his job at D7 Displays before he is terminated. That said, not everyone is cut out for corporate life, and Tom ought to carefully examine his suitability for a career path that often will require putting the needs and preferences of bosses and the organization above his own. If he thinks he will be unable to cultivate the humility, selflessness, and patience that are required for corporate teamwork, he may want to leave his job at D7 Displays before he is terminated. Perhaps he will choose to pursue a more entrepreneurial course that will allow him the space to call his own shots.

HBR Case Study: Challenge the Boss or Stand Down?

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