Levis Leadership Problems

3. PROBLEMS AND THEIR CAUSES

3.1. Behavioural and attitude problems

3.1.1. Lack of governance and accountability in decision making

In 1996, Levi Strauss was then placed in the hands of four people: Robert Haas, an uncle and two cousins. The problem therefore became the relationship between the Board and Chief Executive Officer (CEO) and the non-existent relationship between the Chairman and CEO as Robert Haas held both roles. Proper governance of the organisation was therefore non-existent and therefore failed to establish values needed to drive the organisation through its known and yet to be known challenges. Furthermore the governance objectives are overshadowed where the chairman and CEO is the same person.

3.1.2. Poor strategy analysis,

Poor leadership

Haas’s choice of management style might have been aligned to his vision for the organisation but it however led to poor leadership within the organisation. With the group decision management style the leader gives up the veto power and agrees to allow the group to make the decision. The fact that the process degenerated into endless meetings was an indication that the organisation’s leaders lacked clear goals and key performance indicators linked to its strategy.

3.1.8. Failing to differentiate between management and leadership

The organisation poorly differentiated between leaders and managers as highlighted even in their vision. The difference between managers and leaders lies in the conceptions they hold, deep in their psyches, of chaos and order. Managers embrace process, seek stability and control, and instinctively try to resolve problems quickly.

Leaders, in contrast, tolerate chaos and lack of structure and are willing to delay closure in order to understand the issues more fully.

3.1.9. Employee dissatisfaction

There were several reasons that led to employee dissatisfaction including the constant restructuring and elimination of 16,310 jobs, employees having to reapply for their jobs, and constant role

3.3. Operations and business system problems

3.3.1. Lack of innovation

The nature of the group thought or decision making processes within the organisation made it impossible to be innovation. The organisation was not a focused learning organisation. Furthermore, the organisation failed to adapt to the external environment and its customers which has a strong influence on innovation.

3.3.2. Poor customer focus

Levi failed to manage its relationship with its customers and this is evident in its failed advertising and marketing campaigns. Here it also failed to understand its market as the organisation failed to stay abreast with the industry trends.

3.3.3. CEO beguiled by past successes

Haas was beguiled by the euphoria of his success in 1987 that he failed to see and develop the urgency for change. The mission and statement was the catalyst in ensuring that managers and employees spend a lot of time on non-productive or corporate philanthropy and social responsibility, at the expense of productivity that could be achieved by improved