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Here is the case:
Sarah was delighted when she was promoted to Controller for the regional Sales unit of a leading chemical producer where she had been employed for the last 3 years. It was a big boost in responsibility and enabled her to participate in the incentive compensation program. Now that she was facing her first end-of-quarter crunch, however, she wondered what she had gotten herself into.
A major customer has placed a large order just one week before the end of quarter, but they don’t want delivery till the middle of the next quarter. The Sales Director of Sarah’s group wants to recognize the revenue now, thereby ensuring the maximum bonus for his group for the quarter. This means processing the order, shipping the product to a warehouse and bearing the carrying costs until shipment to the customer.
Sarah feels pressure on all sides. When she sat in the Accounting organization, she saw the costs of such revenue recognition problems – the cost of sending messages to all levels of the organization that it’s OK to game the system; the loss of information and distortions in expectations that jeopardized effective decision-making; the cost of records clean-up when the distortion eventually came to light; and so on.
She still reports to her old team and she knows they are counting on her to make the right decisions on this kind of thing.
On the other hand, she wants the Sales Director and her new unit’s General Manager to consider her one of the team. She wants to earn their trust and respect.
- What type of value conflict is Sarah facing? What is at stake for the various groups who want him to do different things?
- What steps do you think Sarah could have taken or should take to normalize his response to this kind of value conflict? What can he do to help him deal with situations like this that come up in the future?
- What kind of career path are you on or do you see yourself on in the next 10 years?
- What kind of value conflicts can you imagine yourself trying to deal with or which value conflicts do you see as a regular part of your career?
- What kinds of steps do you think you should take to make dealing with these conflicts a normal part of your activities in your job or career? What kinds of skills from Gentile’s book would make it easier to deal with these conflicts?
Sample Solution
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