Time for a change: managing cross-cultural issues in Barbados (A)

CASE PROGRAM Time for a change: managing cross-cultural issues in Barbados (A)

Vinette Daley put down the phone after a lengthy and stressful conversation with the director of one of her partner agencies, with the question echoing in her mind. After three years in her current stint as chief executive of the Barbados subsidiary of Global Network Services, this call placed her dilemma sharply in focus: could she continue to support Komo, her Assistant Manager who had worked so well in Africa with her five years ago; or should she let him go and put his hitherto promising management career in a downward spiral?

Komo's technical strengths had provided good support to her initial reorganisation efforts in Barbados to link Caribbean initiatives to international resources, skills and finances. Now that the company was beginning to increase its portfolio of projects, and morale was generally improving, Vinette was concerned about the increasing rifts between Komo and the predominantly female staff. They resented what they saw as his insensitive and bureaucratic style of management. In the most recent incident, Komo had inadvertently undermined the efforts of Sonia Barnes, the Project Coordinator, and had almost derailed negotiations with a major regional partner. Vinette had to decide before next month's Global Executives' renewal of allocations: could she maintain the momentum of change in the company, and keep Komo?

Global Network Services Incorporated was a well-respected international company based in New Jersey, United States, which linked international skills and resources to needs at national and community levels. A fixed percentage of the value of each initiative covered most of the operating costs and was supplemented by support from international partners.

The Barbados subsidiary of Global Network Services had been established in nineteen seventy-nine, with a staff of six persons. Within five years, other Global Network Services subsidiaries had opened in Jamaica, Guyana and Trinidad. The Barbados subsidiary was responsible for the company's operations in the Eastern Caribbean, and in seeking to respond to the needs of these countries, its scope of activities had expanded rapidly. By nineteen ninety-four Global Network Services had more than thirty staff in Barbados.

However, worldwide recession and contractions in the late nineteen nineties led to a reduction of staff and closure of some of the Barbados and Eastern Caribbean operations. In addition, a series of poorly selected chief executives in the late nineteen nineties had resulted in rifts between the New Jersey Headquarters staff and the Barbados management. The pressures and uncertainties had led to a decline in the morale of staff, by now only twenty in number, and mainly women.

It was in this context that Vinette Daley accepted the position as chief executive officer for the Barbados and Eastern Caribbean Operations. She was building on a successful career which had included roles as an Assistant Manager at Headquarters and as chief executive officer in three African countries. Her strength was considered to be her strategic orientation and sensitivity to people.

Meeting the challenges

When she took up the challenge of her new position in mid-nineteen ninety-nine, Vinette was astounded at the low level of performance and morale. After the previous chief executive officer had left, the office had been managed for almost eighteen months by various junior officers and managers from Headquarters on short stints between substantive assignments. This unsettled situation and lack of leadership reinforced in staff the view that the Barbados office was of little value to Headquarters. Furthermore, they felt that Vinette's hidden agenda was to rationalise the complete closure of the Barbados operations.

Vinette had a different perspective: she saw the potential and importance of the Barbados and Eastern Caribbean office for serving the needs of the smaller and less developed Eastern Caribbean countries, and was determined to do whatever was required to ensure that Barbados operations were put back on a firm footing.

Shortly after her arrival, Vinette met with staff individually and collectively to assess the situation. Staff members, who were suspicious at first, quickly warmed to Vinette's direct and firm but fair approach. Morale increased as she addressed some of the outstanding and urgent issues. They knew she was honest in representing their concerns at Headquarters, whether the outcome was favourable or not.

When tough decisions had to be taken to further reduce staff, Vinette sought to lead that process carefully and slowly, being honest and transparent with staff about impending changes beyond her control, and ensuring maximum benefits for the staff whose positions were made redundant. Recognising some of her own limitations, Vinette organised various activities to facilitate the change process. In spite of initial resistance from staff, she revived the annual staff retreat using an external facilitator. As one staff member confided:

"We had retreats before, and the one before this last one especially was a disaster. But our retreat really made a difference this time. We got a better understanding of what the company could become and the part everyone could play in achieving this and also meeting our targets!"

Vinette was not only concerned about the operations and about achieving targets. Staff were encouraged to consider what they could do to improve the working environment and the relationships among members. With the support of the facilitator, sessions on the process of change generated practical suggestions for restructuring the operations, and helped staff members realise that each person could make a difference. The morale of the office rose steadily. Some staff members who had worked with the company from its inception and were resistant to the new approaches were encouraged to take severance packages. With restructured operations and re-energised staff, the office was poised to take a more effective role in the regional arena.