What common resources and capabilities link the separate Virgin companies? In fact, this group of companies was unusual In terms of the range of products It encompassed. But there is certainly a secret in the success of this group. All companies in Virgin Group believe in making the difference.
Their most respected core concentrates in quality, innovation, fun and sense of competitive challenge, empowering employees to improve customer’s experience through Innovation. All markets In which Vulgar operates are markets where customers aren’t feeling a comfortable service or have been under-served by competitors, typically signed by confusion or over competition. And Virgin objective in these markets is to be the consumer champion, to break Into them and shake them up.
As we stated before, Brannon created an entrepreneurial culture that Is carried through all the Virgin group companies: Being simple, honest and transparent, not necessarily the cheapest on the market; Quick communication; Loyalty, fun and care for workers, in order to provide them a nice place to work; High attention to details, delivering on promises; Being professional but not corporate; Modern and stylish designs and ideas; Proclaiming pop-culture innocence, possessing novelty and shock-value; We can without doubt say then, that the brand Virgin has been the group’s most relevant asset, always under the leadership of Brannon.
But not only values and culture are the common shared characteristics by Virgin group companies. We can foreground also a same organizational structure idea. About financial, we can say that each one of the companies Is financed by Internal equity. Each company within the group Is financed Individually and separately. Same with management structure: each one of the companies are individually managed and operated, avoiding centralization of 1 OFF enjoy the sense of achievement. Strategic decision making are done by Richard Brannon and each Coo’s of the companies.
We can conclude that the Virgin group culture reflects basically the aptitudes and personality of Brannon himself: entrepreneurial soul, anti-corporation and anti-bureaucracy spirit and risk taker. 2. Analyze Richard Brannon ‘s leadership style. What theory/theories would apply? What are the advantages and what are the disadvantages? Trying to characterize him in Blacked & Mouton ‘s managerial grid, I would passionate his leadership style as a Country Club leader. He is attentive to staff needs and always developed successful relationships.
However is not focused directly on achieving results, or delegate these responsibilities on other collaborators. I also consider Richard Brannon has a Delegating Leadership Style. He always attempted to involve other talented people in the process of decision, including subordinates peers and stakeholders. It is an absolutely people-oriented style. His approach to management always reflected his life style, values and personality. It was based upon giving absolute autonomy and incentives to talented managers that he trusted.
Once one Virgin new division was already running, it was delegated to a talented manager and a financial controller. Basically by encouraging employee feedback and ideas, management often developed a much better understanding of their staff, workplace conditions and enjoyed some fresh new ideas and suggestions for improvements. This role has many advantages. Manager of execution, team and consensus builder, self- wariness, self-knowledge, confidence, role model/lamination, communication, determination and persistence were always his more valuable skills.
His success is created by involving, empowering and creating a positive workplace environment for employees. A fun working atmosphere is what people would enjoy most, together with being part of the company rather than simply go inside it to work and earn money at the end of the month. Brannon was able to create a team or more importantly an organizational culture that compromised all employees on a same target, no matter the divisions’ diversity. He gave them an inspirational motivation, communicating a vision of the future and aligning their personal values with that vision.
He was absolutely able use his physical anti-corporate appearance and his personality to convey the informality and nonconformity that has become a central part of his leadership and the Virgin brand. But some disadvantages are also related to this people-oriented leadership. If people are charged with too much responsibility without clear management guidance, the decision-making duty can become overwhelming. The far end of the people-oriented graph is rife with garbled bob descriptions; confused, ineffective decisions; and ultimate Job dissatisfaction.
This leads to lower performance, high employee turnover, customer dissatisfaction and decreased profitability, together with the possibility of neglecting the first Brannon introduced brand values, with his low participation on each business once developed. 3. In class we discussed empowerment and engagement. Explain these concepts within the context of Virgin and critically discuss advantages and disadvantages. Giving employees the authority to make decisions once reserved only for managing sections.
And together with engagement, are concepts closely aligned with the leadership topic of delegation, as I previously analyzed about Brannon leadership style. But the empowerment is more about trusting employees to make decision. In essence, delegation is typically more task-based while empowerment is more authority and decision-based. As seen in Virgin brand culture, employees in general receive authority power, trusting in the return of their increase in responsibility to their work.
This is also typically aligned with the Virgin company organizational Truckee: a flat organization with reduced hierarchy and motivated staff (the structural empowerment). There is a wide span of control and therefore, it is logical that the management would not be in position to supervise all the activities to be undertaken by the employees and so they may tend to delegate, but at the same time, the management cannot also delegate too much without empowerment which will lead to lack of accountability.
There are some negative consequences to consider if we carry out an incorrect empowerment process, like loss of control or Internal vs… External commitment. That’s why leaders must always contribute sharing information, building effective teams and providing supports and rewards to their employees, while followers are also compromised to develop a very good sense of ownership and also contribute with organizational control. What is being encouraged in Virgin is that the employees must be innovative and free to demonstrate their ability in their free work.
A critical success factor to empowerment is to count with only the best employees (as Brannon stated always). Empowerment cannot Just simply be practiced in any kind of work environment or culture, which is defined by he kind of workforce in the organization. In conclusion, is clear that leadership practices at Virgin group are as robust as the company itself and effective leadership in Virgin was demonstrated by his chairman Brannon ‘s ability to influence their collaborators trough empowerment and engagement. . What changes, if any, would you recommend to Brannon? Who should succeed Brannon? A. I would recommend Virgin to concentrate only on business related to technology, innovation and futurist concepts. As the culture of the brand is related to Abrasion’s antipathy toward authority and disrespect for conventional business, I think Virgin should never get into banking, financial or money business, at risk of not achieve the expectations of consumers with other ideologies. . I also would recommend Virgin in not developing consuming products (except media, tech or communication products). The experience with Virgil Cola was not successful, in a personal opinion, for the same reason that I explained in the previous consideration. C. Franchise Virgin would be a very successful idea. As Virgin brand represents itself an extensive laity of values and principles, if company decide to sell some low profitable divisions only to trusted investors.
This would provide to Virgin a fresh income of money also a potential improvement of those sold business development in market, allowing them to be carried out by other experienced companies, without losing Virgin brand core values and image. D. Finally and also responding to the question “Who should succeed Brannon”, I would suggest the implementation of a Virgin managers, but only to have a major strategic division that ensures each Virgin division to be aligned with the core values.
Brannon will not lead the company forever, and that’s why he should prepare a group of leaders working in team, keep developing and ensuring his original ideals and values trough all the business divisions. Otherwise, with Brannon retire, companies will indefectibility lose their way of inspiration and finally disappear. Without loosing the idea of empowerment and a non-hierarchy organization structure, I consider a headquarters in a controlling role, would provide the company the missing step to finally success, with a systematic managing, and avoiding also the “Brannon retire” potential inconvenience.