Gtsi Corporation: Mission Impossible? (A)

12 Pages Posted: 18 Jun 2009

See all articles by Alexander Horniman

Alexander Horniman

University of Virginia - Darden School of Business

Gerry Yemen

University of Virginia - Darden School of Business

Abstract

This undisguised case is appropriate for graduate-level organizational behavior, strategy, and leadership courses. Readers will be put in the shoes of a seasoned change agent hired to transform a publicly owned company on the brink of bankruptcy. With a 50% attrition rate, low employee morale, stock market delisting notice, failed ERP system, bank default, new credit facility search, forbearance agreements, and a going-concern opinion, the new CEO faced a significant crisis. The A case describes the situation and raises questions about the firm's viability when James Leto becomes CEO. Several key leaders in the organization push to move the company's core competency away from the reseller business toward an enterprise solutions and services business.

Excerpt

UVA-OB-0966

May 4, 2009

GTSI Corporation: MISSION IMPOSSIBLE? (A)

In February 2006, James Leto accepted a mission to confront several critical business issues as CEO of GTSI Corporation, a provider of IT products and solutions headquartered in Chantilly, Virginia. The previous year, the company had suffered a $ 16-million net loss. Attrition had peaked at 53%, 57% of which were sales-force employees; the remaining employees, suffering from low morale and lack of commitment, were divided by the company's culture and “stove-piped” business structure. Some in the industry and many on Wall Street had written off GTSI as headed for bankruptcy, but Leto, a turnaround specialist, accepted the top position determined to transform the business.

Within a few weeks, Leto, who believed in simple, clear business strategies, had a plan: he wanted his executive team, for whom he was hosting a strategic leadership retreat in the Virginia countryside, to focus its energy on three things.

GTSI: Getting Started

. . .

Keywords: transformation, enterprise solutions, business model, turnover, career development, management, succession planning, employee engagement, strategic, restructure, reorganization

Suggested Citation

Horniman, Alexander and Yemen, Gerry, Gtsi Corporation: Mission Impossible? (A). Darden Case No. UVA-OB-0966. Available at SSRN: https://ssrn.com/abstract=1421628

Alexander Horniman (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/html/direc_detail.aspx?styleid=2&id=4329

Gerry Yemen

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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