Seagrams

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Recommended: Charismatic and instrumental leadership

Edgar Bronfman’s value system is in jeopardy of not being sustained due to his failure to fully transition from charismatic to instrumental leadership as evidenced by the employee questions following the values program training.

Analysis

Seagram’s is currently undergoing strategic, anticipatory changes in the company’s value system to competitively reposition the company to take advantage of future growth opportunities, diversify the company globally, effectively manage business processes, and increase profits. Bronfman has successfully guided the development and introduction of this new value system. However, Seagram’s is lacking the instrumental leadership necessary for this reorientation to be successful. Specifically, the questions raised by management at the end of the values training program suggest that the three critical elements of instrumental leadership – structuring, controlling, and rewarding – have not been fully addressed. Without these, the new value system will not be “reinforced and institutionalized” and may fall victim to becoming “another program of the month”.

Bronfman has not structured a sufficient mechanism to ensure the value system is sustained over time. No processes are in place to handle the recommendations for action raised by participants in the training program. Good ideas are being generated, but will be wasted if there is no system to ensure they are heard and implemented. Failure to provide this process will hurt employee morale and...

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