When Key Employees Clash

Matthew acquired Kid Spectrum, Inc., a company based in Florida financed by a search fund the investment goal of which is to find undervalued companies and make it profitable.  He is managing this company from his office in Chicago.  Kid Spectrum has two key employees, Ellen the Administrative Director and Ronnie, the Director of Clinical Operations.  It appears that lack of direct oversight due to Matthew managing from afar, and the clash between these key employees are causing problems.  The first issue is regarding Matthew managing from a distance.  This being a newly acquired company with a goal for growth, Matthew needs to manage (sometimes we use the term babysit) the firm on a day to day basis until such a time that he or the investors decide the company needs a local CEO or President.  To be effective he needs to be a manager and a leader at the same time.  According to John Kotter on What Leaders Really Do, the aim of management is predictability and orderly results, while leadership’s function is to produce change and set a direction for that change.  In setting that direction, a leader must also know how to align people to the company vision so that these people take initiatives to achieve that vision.  As such communication is an integral part.  Matthew should properly communicate to Ellen and Ronnie the importance and synergies of their roles for Kid Spectrum to be a truly successful company, where customer service and profitability must go hand in hand.  Having a full understanding of how their roles help define the path for success would allow Ronnie and Ellen to work together productively and set aside their differences to accomplish goals.

Ronnie is a good clinician, well respected by his peers, and very customer focused.  And because of these reasons, he was promoted to the director position.  With this position, comes greater responsibilities including being on board with the time sheet protocols.  Matthew should spend more time mentoring Ronnie and easing him into his managerial role.  Matthew should also explain to Ronnie how administrative tasks are part and parcel of managing; and that submitting time sheets accurately and timely mean quick turnaround of profits from insurer reimbursement.  Sometimes people like Ronnie who have been exposed far too long in operations do not fully comprehend the financial side of the business so some lessons from Matthew and even Ellen can help.  As written by Linda Hill on Becoming the Boss, organizations suffer considerable financial and human costs when a person who has been promoted because of strong individual performance fails to adjust successfully to management responsibilities.

Having experienced a role similar to Ellen, I can understand her frustration.  She is right elevating the issue to Matthew so that he knows there is a problem going on in Florida regarding time sheet protocols.  But Ellen needs to have more initiative in helping Ronnie to improve their business relationship while achieving company goals.  Matthew should talk to Ellen and encourage her to spend time with Ronnie and clinicians on the field to get a better understanding of their day to day activities and help find a way to make it easier for everyone to submit time sheets promptly.  By doing so, Ellen can work collaboratively with Ronnie to perhaps create additional procedures or workaround that could reduce administrative burden on the clinicians and assist them with compliance with existing time sheet protocols, yet still being able to service the customers.

...