LEAD: Eric Peterson 1. What are the underlying causes of Erik Peterson's problems? ?Leadership: -Hardy – Peterson tension: both lack of experience in the technical field; no clearly defined reporting relationship -Peterson’s lack of expertise: lose confidence, can’t win arguments with Green and Cantor -Curt – others tension -Corporate – GMC tension: conflict of interests, lack of communication (change of standard and equipments without notifying Peterson), unaligned vision (target on high margin vs. each out to larger customer base), undefined reporting relationship ? Operational: -Equipments could not arrive on schedule -; delay installation process (due to Curt’s inability of managing inventories) 2.

How effective has Peterson been in taking charge of the Hanover Start-up? ?Regarding Curt: -Peterson wants to replace Curt with a more experienced leader in planning and managing, but it was not approved by the corporate.Peterson then took different approaches such as offering 1-1 counseling sessions, assigning him the weekly meeting leader role, establishing an inventory control system, and later on, hired a separate construction coordinator to assist Curt -The 3 initial approaches were not effective. Peterson realized it but he didn’t push harder to find out WHY they didn’t work.He should have more in-depth / frequent communication with Curt (maybe let him know that the Corporate values him and he has the ability) -Peterson’s effort to hire the construction coordinator was effective but temporary – can divide up Curt and Peterson’s work load but it’s not easy to find such person.

Also creates more tension between Curt and this coordinator if this becomes an established position -Peterson’s approach to solve the open-bay or closed pickups was a good idea (so that Curt and Trevor can see how their ideas get tested in the situation without failing anyone upfront) ?Regarding personnel changes -Promotion of Melissa was effective as it avoided the direct reporting relationship between Curt and her. -Should continue the effort to promote Todd Jones to Curt’s position: incentivize both and increase efficiency ? Regarding operations -Weekly meeting effectively improved communication -Termination of subcontractor was effective (a more responsible decision for the long-term) -Unable to instill the zoning process due to his tension with Green and Cantor 3.What actions should Peterson take now? Please be specific. ?Immediate -Find a construction coordinator to assist Curt in inventory management to ensure the scheduled turn-on date -Figure out the zoning problem (society and community reaction) and Peterson’s agreements with government on the free service -Figure out the utility and pick-up truck issue ?Long-term -Speak with corporate and reposition/redefine his reporting relationship -Work on replacement of Curt -Seek for mentorship and supports from seniors in Corporate