Don Rifkin, CEO of Nutrorim is faced with a difficult decision and one which cuts across ethical boundaries. Nutrorim’s stalwart product, ChargeUp, has undergone an upgrade with the additive Lipitrene, The new ChargeUp has just been released on a limited basis to local area retailers. Already, sales are up 20 %, but soon an investigator from a state department of health calls Nutrorim. He advises them that he is investigating 11 individuals who took ChargeUp who now have gastrointestinal distress. What is to be done?
Nutrorim decides to recall ChargeUp only to discover that the individuals with gastrointestinal distress became ill from a bug they got from their gym’s smoothie bar. The chain of events prompts Rifkin to question Nutrorim’s decision-making process. He invites a consultant to review his company’s processes. The consultant informs Nutrorim that for decisions that are routine and predictable, the process works well. However, when the decision requires clear winners and losers, the process seems to stall. The consultant, though, has only just started. He asks for volunteers to help him develop a better decision-making process. No one volunteers.
The problem with Nutrorim is not just about decision-making processes; the problem with Nutrorim is that it also faces a lack of true leadership.
True leaders are those who are able to exercise the right leadership traits at the right time, and to realize the best results. True leaders recognize that there are times when risks should be taken, and that there are times when risks need to be avoided at all costs. Also, a true leader knows when she or he must be firm and lead with conviction, and understand that there are times when she or he needs to be part of the team. True leaders know how to balance these traits and based on circumstances.
Rifkin is not effective at this balancing act. On one hand, Rifkin is a likeable person who has worked hard to build an "inclusive" environment within Nutrorim. Yet, on the other hand, he is inconsistent. For example, in a meeting with his executives and when a conflict arises between the Product Marketing Manager and the head of Research and Development, Rifkin simply asks the individuals to take their disagreement "offline." Rifkin did not attempt to facilitate a constructive conversation reflecting divergent viewpoints. This tactic would reaffirm his inclusive environment. Instead, Rifkin simply dispenses with the conflict in order to quickly gain consensus. The problem with this tactic, much like sweeping dirt under a rug - the problem remains, it's only hidden from view. In this one incident, Rifkin should have led a constructive discussion with a firm hand. Doing so would have culturally reaffirmed the value of an inclusive environment, while at the same time dealing with the polarity. True leadership demands the appropriate balance.
As it regards decision-making, clearly, a firm process needs to be established and in particular when there is a crisis. The decision-making process I would recommend is as follows:1. Define and clarify the issue at hand.
2. Define both internal and external noise, that is, internal and external messages that are being received. Are the messages necessary? Are they reflective of the problem? Are they a hindrance? Define and clarify.
3. Gather all the facts; understand their causes.
4. Create a road map of options. Map-out the various consequences of potential solutions.
5. Read your road map. Which road takes you to where you want to be?
6. Select your best route, but also develop an plan if that particular road leads you astray. Avoid a route that is a compromise.
7. Explain your decision, follow-through with it, and stick with it.
The bottom line is this: the question is not whether or not Nutrorim made the right decision - the question is did it go about it in the best possible way? A firmer hand from Rifkin during the process would've 1) led to an appropriate decision, 2) gave everyone an understanding of potential outcomes and impact on the company, and 3) provided management with confidence so as to avoid "Monday night quaterbacking."
