Case Background

Olivier Chalon moves to Greenville, South California to lead a division of 4,000

people
Successful
Trained as
career
thus far:at one of Frances prestigious
an engineer
Grandes Ecoles
Started at an European oil company
Lived and worked for 6 years in the U.K
Worked in 6 different countries Speaks four
languages
Current
situation at Michelin:
Trailing behind competitors
Poor sales and financial results in past several quarters
BCG has recommended change of strategy in tyre service business
In 2004, hired Chalon to implement a turnaround and reinvent the business
by dealing with various stakeholders

Case Background (Continued)

Problems:
Lot of challenges are being faced by Chalon ; Leadership style being
questioned
Jeff Armstrong, the HR head, conveyed him that colleagues and subordinates
complained about his management style
He is having trouble motivating his subordinates
Chalon need
to him
turnas
the division around within 2 years
Subordinates
see
Blunt
Arrogant
Distant
Demoralising
Lacking People skills

What mistakes did Chalon make as he took over this large North American division?

Set up monthly performance reviews for sales team and was very critical about
poor achievement
For him minimum standard of achievement was 110% of capabilities
Always upfront and very demanding and didnt want to encourage complacency
by praising
Even if 100% people didnt agree to his plans he took it for granted and instead
of asking for their views went ahead
Blunt in disapproving if he didnt get detailed reports or information which he
was expecting