The Company is called Growing Places.

Growing Places provided mostly on-site child care

and preschool classes for 60 companies in the midwestern United States. Parents can keep
their children here while they work, growing places will take care of the children letting the
parents work without worrying about their children. At each center, the children's parents
worked right next door. Since women who breastfeed often have a hard time keeping up with
it after they return from maternity leave, the proximity also helped them breastfeed while
doing their job.
Founder and Chairman, Older CEO- Evans Breyer
New CEO- Rob (took position 4 years ago)
Growing Places under Evans
Earlier, Growing Places had struggled just to break even. Child care was a tough field, and
only the most innovative companies turned even a small profit. Evans felt they needed a fresh
mind as CEO, someone with a different perspective on the challenges the company faced
and could find creative ways to generate profitable growth. Rob wasn't from this industry,
hence he would bring a new perspective. Hence rob was hired as new CEO.
New CEO Rob
Before Growing places, Rob had worked for 10 years as the president of a small insurance
company. When he first became president for the insurance company, the company had been
stable but unimpressive; by the end of his tenure, it had grown dramatically. His strategy had
been to focus on not one goal, but multiple goals for the company.
Growing places under Rob
Rob was experimental, a little restless, and an entrepreneur at heart. He wasn't happy until
multiple initiatives were running simultaneously at different speeds in the company. In
childcare industry, most companies seem to be doing the things the same way. There was a
need to have a leader who did things diferently and took risks. Hence rob was brought in in
place of Evans.
Rob has been a font of ideas. For instance, he set up rooms where moms can breastfeed
their babies during breaks in the workday and put Webcams in classrooms so that parents
can "visit" their children from their desks. All this were seen as risks, but he did these and they
paid off. As a result of Rob's entrepreneurial vision and operational savvy, the company has
achieved profitable growth. Rob has revitalized Growing Places financial performance.
BUT....
One day there was a tour. The board of Growing Places wanted the company to provide
scholarships for kids whose families were poor , and a sponsor was being searched.
They decided on Thrivand, whose head of PR, Dolores had come on a tour to growing
places along with a reporter. During this tour, Rob makes an insensitive remark about
breastfeeding in front of the visitors--among them, a reporter. Not surprisingly, the local paper
runs a scathing editorial the next day. The bad publicity turns out very bad for the company.
Several days later, during a conference presentation on preschool curricula, Rob again
makes an insensitive comment implying that kindergarten teachers are lazy and unprepared.

The result is more bad press and a meaningful dip in stock price. It's beginning to look as
though Rob is not going to change, Rob's verbal gaffes threaten to ruin staff morale, alienate
customers, and drag down the compnay's share price. Some board members of the company
feel that he shouldnt be removed as he is responsible for the share price that they have now.
g down the firms share price. But many board members are talking about removing Rob as
CEO. Should Evan try to persuade the board to hang on to Rob? Or should he remove him?
ANALYSIS OF THE CASE

What decision should Evan take for the board?

Asnswer- Options before evan
1.

Remove Rob as CEO

2.

Keep Rob as CEO, but ask him to mend his ways

3.

Do nothing

Ans- Evan should tell the board to let Rob off the position of the CEO bcz he is the wrong
person to be leading because even though Rob generates profitable business ideas but he
has poor communication and social skills. Lets see his positives and negatives.
ROBS POSITIVE ASPECTS- why he should not be removed
1.

Innovation, doing things differently

Rob has been a font of ideas. It was his idea to set up rooms where moms can breastfeed
their babies during breaks in the workday and put Webcams in classrooms so that parents
can "visit" their children from their desks. All this were seen as risks, but he did these and they
paid off. As a result of Rob's entrepreneurial vision and operational savvy, the company has
achieved profitable growth.
2.

Responsible for bringing life into the dead company.

Earlier, Growing Places had struggled just to break even. Under Rob the company
transformed financialy, it achieved profits. The stock price went up.

3.

Ready to increase emotional intelligence

Evan had told Rob that he needed to find a coach to help him with his emotional
intelligence. Rob had begun seeing a coach recommended by Growing Places' HR
chief. This shows he is ready to change and he knows his problems.

4.

No nonsense approach, Direct to the Point

Rob wanted to the point answer- he was logical, specific in his requirements . He asked
Dolores immediately "What'd you think?" after the tour. When dolores said the teachers were

nice, he immediately asked what did you like about them. This shows that he talks to the
point.

ROB's NEGATIVE ASPECTS

1. Lack of diplomacy
During the tour when Dolores asked Rob about the wonderful teachers at Growing places
where did you find them? They're so seasoned experienced."
"We pay them," Rob said simply. "What else?" This shows he doesnt care about the teachers, but sees
them just as a financial investment.
Rob even made insensitive comments about LGBT community and the girl child in China.
2. Arrogance
Rob did not care about diplomacy and in fact took a certain amount of pride in his nononsense approach to business and the success it had brought him in a touchy-feely industry.
3. INSENSITIVE ABOUT EMPLOYEES.
Rob had said to a kindergarten teacher who was also a growing places employee that she wasnt
prepared enough. The Growing Places employees who had attended the conference had been outraged
by Rob's suggestion that they weren't pulling their weight. The ones with a lot of experience were
especially irked. They didn't just teach; they nurtured. And they used lesson plans that had worked
wonderfully for years. How could Rob call them unprepared?
Rob put an end to the complain meeting evans did for empolyees. Rob said "I can't deal with people
whose feelings bruise so easily. Are we grown-ups or babies who need coddling?"
The clients of growing places got angry, of course, because PR gaffes compromised the
employee-recruitment power. And many of the offended teachers threatened to quit.
4. APPROACH FOCUSE ONLY ON CUSTOMER TRANSACTIONS.
He was happy that he had raise the stock of the company and made Growing places
profitable, but didn't care for the employees.
5. IMPATIENT
Rob wanted quick answers . He asked Dolores immediately "What'd you think?" after the tour
bursting into Evan's office. He doesnt think before speaking. When dolores said the teachers
were nice, he immediately asked what did you like about them. Al this shows impatience, a
bad virtue for a leader.

6. WRONG APPROACH IN CHILD CARE INDUSTRY

For one thing, child care, more than almost any field you can imagine, requires a humane,
caring, and values-centered management style.
7. LACK OF EMPATHY and EMOTIONAL INTELLIGENCE
Child care is a huge expense for most parents, and if financial success is the only aim of your
business, this will come back to haunt you. Robs business innovations mean little if hes
offending the parents who serve as his marketers or the teachers in whom parents place
enormous trust.
8. LACK OF FIT WITH THE COMPANYS VALUE
While the first negative publicity happened, they were in the promotional tour for showing the
internal arranging of the Growing places as the company wants to provide scholarships for
children belonging to poor families. This shows the compnay values human approach and
wants to work for well being of society. But rob is arrogant and makes abrasive comments
about breastfeeding mothers and kindergarten teachers, some of them who have given their
whole lives to taking care of other children. All this shows insensitivity and lack of respect
which are not good traits of any leader.

THEORY PART- from the readings to be included in analysis of the case

Rob was a transactional leader, not a transformational one

EMOTIONAL INTELLIGENCE THEORY

Plan Ahead1.
Give Rob some time to amend himself, ask him to take emotional intelligence training.
See if he improves.
2.

If he doesn't, remove him.

3.
Evans should take on as new CEO, until they find a proper Candidate for CEO, who
has a mix of both financial as well as emotional knowledge.