Johannes Linden: Managing the Global Executive Committee Team Members Topics To Be Covered Case Synopsis Identification of problem(s) Cause and effect analysis The various feasible solution of the problem Recommendation for problem along with implication Synopsis Fluss AG, the Swiss parent company of Fluss Washer and Dryer, established in 1947 CEO: Hans Kehrer Johannes Linden, Director of the Washer and Dryer Division of a Swiss appliance company In 2004, FWD was established- Johannes Linden, age 40, became director of FWD In 2004 went from a geographic to a product oriented structure. In the mid 2000’s FWD went “go-green” (environment friendly , energy-efficient or both) Regional structure and responsibilities change in 2006- number of FWDs region increase from 3-6 Starting of GEC meetings, 3 times a year in Basel Reduction in the prices of steel (main raw material) was the key of changes in prices. Change in business targets Should bonus be based on old or new figures? Two trends could have a long term impact on FWD’s prospects in emerging economies - Increasing urbanisation and rise of disposable income. Working together: GEC members worked together in an open and dynamic environment The February 2011 GEC meeting Linden talked about the changing business targets. The bonus policy of company was not in favor of senior executives Linden felt the GEC members were not working beyond their regional responsibility Identification of Problem(S) Cross Cultural Conflict Leadership Style ---smooth Dictatorship First time change in business policy leads to uneasiness between the GEC member Too much centralized decision making Division of RD’s according to mature and developing economies is not correct in every perspective Causes Because of the raw material cost reduced, there was unanticipated saving of 10%-15%. They are getting fierce competition form River Tech org. Reinvestment of the surplus revenue. Distribution of the products as per geographical climate as per consumer requirement. Optimum allocation of the bonuses to RD’s & Country managers. Linden’s TYPE A personality, sometimes was not comfortable with other GEC member Effects Fierce competition strategy has to be focused for growth in the market. Forced them to “Go Green” , a comparative more expensive technique. Power and influence: --hard to argue with his success but doing pretty well despite of crazy economy. --can be stubborn sometimes.

1. Johannes Linden:
Managing the Global Executive Committee

2. Team Members
• Parth Sarthi Gairola
• Anjali Tyagi
• Abhishek Pundir
• K.S.S.Suraj
• Mansi Garg
• Neelam Choudhary

3. Topics To Be Covered
Case Synopsis
Identification of problem(s)
Cause and effect analysis
The various feasible solution of the problem
Recommendation for problem along with implication

4. Synopsis
 Fluss AG, the Swiss parent company of Fluss Washer
and Dryer, established in 1947
 CEO: Hans Kehrer
Johannes Linden, Director of the Washer and Dryer
Division of a Swiss appliance company
In 2004, FWD was established- Johannes Linden, age
40, became director of FWD
In 2004 went from a geographic to a product oriented
structure.
In the mid 2000’s FWD went “go-green” (environment
friendly , energy-efficient or both)

5. Regional structure and responsibilities change in 2006number of FWDs region increase from 3-6
Starting of GEC meetings, 3 times a year in Basel
Reduction in the prices of steel (main raw material) was
the key of changes in prices.
Change in business targets
Should bonus be based on old or new figures?
Two trends could have a long term impact on FWD’s
prospects in emerging economies - Increasing
urbanisation and rise of disposable income.

6. Working together: GEC members worked together in an
open and dynamic environment
The February 2011 GEC meeting Linden talked about the
changing business targets.
The bonus policy of company was not in favor of senior
executives
Linden felt the GEC members were not working beyond
their regional responsibility

7. Identification of Problem(S)
• Cross Cultural Conflict
• Leadership Style
---smooth Dictatorship
• First time change in business policy leads to uneasiness
between the GEC member
• Too much centralized decision making
• Division of RD’s according to mature and developing
economies is not correct in every perspective

8. Causes
• Because of the raw material cost reduced, there was
unanticipated saving of 10%-15%.
• They are getting fierce competition form River Tech org.
• Reinvestment of the surplus revenue.
• Distribution of the products as per geographical climate
as per consumer requirement.
• Optimum allocation of the bonuses to RD’s & Country
managers.
• Linden’s TYPE A personality, sometimes was not
comfortable with other GEC member

9. Effects
• Fierce competition strategy has to be focused for
growth in the market.
• Forced them to “Go Green” , a comparative more
expensive technique.
• Power and influence:
--hard to argue with his success but doing pretty well
despite of crazy economy.
--can be stubborn sometimes.

10. Feasible solution
• Change in leadership style-instead of dictatorship be The
Authoritative leader
• Rewarding the RD’s and the country managers depending
on their involvement in the GEC meeting
• Country mangers should be jumbled ,they shouldn’t be
assigned to their own country.
• Linden should convince the RD’s and the managers about
the decisions taken rather than forcing them to accept
his decision.

11. Recommendation
Decisions should be taken as a whole
team rather than implementing his own.