The president that I am currently reporting to is a holdover from a previous acquisition. This president has vested interest in the previous business strategy. This is known as corporate governance. In general, it is the determination of which organizational resources will be used and its resolution of conflicts among the stakeholders.
This is such an important aspect of companies, that U.S. regulators adapted the Sarbanes-Oxley Act of 2002. A United States federal law designed to protect the stakeholders, which established the reliability of corporate disclosures. There are two areas in which this act demanded reform, through the role of the board of directors and financial reporting.
The role of the board of directors is to have a group that is independent from management that looks out for the interest of the stakeholders. The Sarbanes-Oxley Act of 2002 was established because many board of directors had too “cozy relationships” with top management. The second part of the act was to call for more disclosure of financial information.
Progress is what makes American companies grow said Robert Monks during his speech about American Corporations; this can be in the form of acquisition. In order to handle the delicate situation of the president I will be reporting to, we will need to “Sell” him on the ideas. Whenever you have a new vision for the company, or new direction, it is important we use proper motivation techniques and sell them on the new strategies for the company. Describe the benefits for both them and the company. Now that we understand what new business strategies we need to set forth within the company, we can then focus on selling these ideas to the Stakeholders (president) of the new business strategies and finding out what their resistances are.
Resistance to change can be understood in terms of a series of six layers that consistently and regularly appear.
1. Lack of agreement on the problem (Patrick, 2001)
2. Lack of agreement on a possible direction for a solution (Patrick, 2001)
3. Lack of agreement that the solution will truly address the problem (Patrick, 2001)
4. Concern that the solution will lead to new undesirable side effects (Patrick, 2001)
5. Lack of a clear path around obstacles blocking the solution
6. Lack of follow-through even after agreement to proceed with the solution (Patrick, 2001)
Now that we understand the role of the corporate governance, and abide by U.S. laws in proper financial reporting and the role of the board of directors, although the president was employed during a previous acquisition, I am sure the president is well aware as with any new take over of a business comes along change. With the acquisition from Walden International, we can look forward to positive changes with Walden International taking over many of the accounting, H.R. and many other corporate functions whereby we can focus our efforts in developing new PEPT and expanding our current market share of our existing lines.
Coulter M.K., (2005) Strategic Management – In Action, Third Edition, Upper Saddle River, NJ: Pearson Education, Inc., Pearson Pretense Hall.
Find Law, H.R. 3763, “Sarbanes-Oxley Act of 2002”, [Electronic Version] retrieved on July 18, 2006 from
Monks, Robert A.G., July 1996, A speed given at Cambridge University, “The American Corporation, At the End of The Twentieth Century”, – An Outline of Ownership Based Governance – Summary retrieved on July 18, 2006 from http://www.lens-library.com/info/cambridge.html
Francis S. “Frank” Patrick, Dallas, May, 2001, “Taking Advantage of Resistance to Change (and the TOC Thinking Processes) to Improve Improvements”, [Electronic Version] Retrieved on July 18, 2006 from http://www.focusedperformance.com/articles/resistance.html