![]() The three candidates are Tom, Dick, and Harry. Board of directors, followup letter to employees and shareholders Choosing among them will be difficult, but we plan to announce our decision shortly. All are presently executives with the company. Board of directors, letter to employees and shareholdersĪfter an extensive search, we have selected three candidates for this very challenging position. Finally, the new leader's Age is important because he or she will need to have an appropriate career path after stepping down five years from now. Since the new leader will have to keep us all motivated during a difficult period of change, we prefer someone with an active, charismatic leadership style. And though our beloved founder was a self-made man who didn’t finish high school, the times demand that our new leader have an appropriate university education. Experience is important because the job requires skills and knowledge that can only be developed through practical application. ![]() He or she will be expected to “clear the air” by stepping aside after the plan is fully implemented.Īfter much thought and discussion, we have identified four criteria to be used in choosing the person to guide us through the upcoming period of change: experience, education, charisma and age. In doing this work, the new leader will be required to make many unpopular decisions and take many unpopular actions. The board of directors needs to choose someone to lead the company through the change and upheaval that implementing the consultant's plan will involve. The plan will take five years to implement, and will replace the founder's highly subjective "seat of the pants" style with a more carefully thought out way of doing business. The company's founder is retiring soon, and a consulting firm has developed a detailed plan for continuing its success in his absence. Its future success will depend on maintaining the strength of its older product lines and on generating a constant flow of new ones. The company, founded in 1960, makes specialized industrial equipment. Their decision process is described in depth below. According to the judgments of the decision makers, Dick is the strongest candidate, followed by Tom, then Harry. The factors to be considered are experience, education, charisma, and age. The goal of this decision is to select the most suitable leader from a field of three candidates. The balance of this article describes the derivation of these priorities. Experience is the most important criterion with respect to reaching the goal, followed by Charisma, Education, and Age. ![]() 358, and about three times more strongly than Harry, whose priority is only. He is preferred about a third more strongly than Tom, whose priority is. Dick is the preferred alternative, with a priority of. The goal is to choose the most suitable leader based on four specific criteria. The diagram below shows the AHP hierarchy at the end of the decision making process. By using the AHP, the board of directors is able to choose the best candidate in a rational, transparent way that can be examined and understood by all concerned. There are several competing candidates and several competing criteria for choosing the most suitable one. This example describes the use of the AHP in choosing a leader for a company whose founder is about to retire. ![]()
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