NICE VENTURES

GROUP 2
Yulianti Suryaningsih - Sylvia Darwin - Wahyono Hidayat - Meidhy P Saputra
* Thomas background (short education & professional background)
She graduated in industrial engineering from Stanford University in 1988. And graduated
from HBS in 1993. She work at Raychem Corporation (now a division of Tyco) as a
production supervisor. After HBS, she held a number of senior management positions at
several hardware and software companies in Silicon Valley, including director of marketing
at Fulltime Software and later VP of marketing at SuccessFactors.com

* How she finally involved with the restaurant business

In 1995, she introduced with Ramsey Smith, founder of Nice Ventures and experienced
chef. She invest $200000 to Ramsey Smith first restaurant, Rose Pistola. She invested an
additional $500000 in Nice Ventures for next two restaurant Rose’s Cafe (1997) and The
Black Cat (1998). Business was not going well at The Black Cat, and there were other
financial difficulties at the company. Smith reached out to Thomas.
Current Organization Chart
Laurie Thomas
CEO Nice Ventures

Anthony Jennifer Rose Pistola Rose’s Cafe TERZO

Human Finance &
Resources Accounting,
Director CFO Jackson
Sabastian Nancy Executive
Chef of Cuisine General Mgr Chef

Ben General
General Mgr Mgr?

Assistant
Gen Mgr?
* Problems at Terzo
Thomas spent many hours working directly with Adam and Ben, and become frustrated by the
lack of progress. Ben’s communication skills were weak, and he could not give Adam the
support he needed. After 90 day, Thomas decided that Adam was not going to be successful as
an AGM at Terzo. Thomas have to find dedicated, full-time GM for Terzo

* The Tahoe Offsite

Thomas decided to schedule offsite meeting at Lake Tahoe to boost morale and bring her
executive team together. As they ate and drank wine. Jackson blaming Thomas, which caused
her to react strongly and negatively. Jackson told Thomas that her management style was very
reactive. “Just take over and solve the problem”, this frustrated the managers. They felt that she
didn’t always respect them

* Confronting Multiple problems, cut cost

Nice Venture concern was managing through the difficult economic situation. They have to cut
costs across the three restaurants at least 20 percent. Thomas have some ideas. Thomas have
to convey the bad news. She would also have to communicate the cost cutting needs to all. She
was unsure to deliver her tough message to this broader group.
1. Do you think Thomas is respected by her direct reports (explain why or why not). After the offsite
meeting at Lake Tahoe, using Zaleznik reading, analyze whether Thomas is more of a leader or a
manager
Based on our analysis, Thomas was not respected enough by her direct reports, and most of the
employee.

• The Executive Chef, told her that her management style was a very reactive approach
• She had a tendency to “just takeover and solve the problem”
• Another manager brought up some recurring trust and communication issues.
• HR Director commented that She doesn’t have good relationship with all of her staff
• Majority of the restaurant staff were originally hired by Ramsey Smith, a veteran chef and
experienced restauranteur

And from our analysis, Thomas is also more to a Manager than a Leader.

• She simply too focus on how to get things done, instead of what is the task/job/decision is
meaningful to the employees
• She doesn’t have a vision how to grow their business, and to develop their employee’s skill.
 2. Using the reading by Goleman’s Emotional Intelligence approach, how was Thomas’ EI (rate H, M, or
L in each of the five categories), and explain how it affects her leadership

Self-awareness: Low.
She just “take over and solve the problem”, bypassing some of the issues/ understanding

Self-regulation: Low
With her very reactive management style, she will decrease the team’s respect to her

Motivation: High
Her motivation in leading the restaurants is high, proved by She left her job in Silicon Valley to runs the
restaurant business.

Empathy: Low
One of the example was when in the Tahoe Offsite, she was very emotional and react negatively to
employees complain

Social Skill: High

She engaged with health care & reporting legislation, budgeting and investor communication, Chamber of
Commerce, Golden Gate Restaurant Association & Charity.
3. In your team’s opinion, how should Thomas
a. Solve problem at Terzo (identify the problem first)
b. communicate the bad situation and cost cutting plan to her direct reports
A. Problems at Terzo are in the HR and operational side:
1. Company has to terminate of the past GM and to find the replacement for the acting GM
To solve: She should have asked advice in advance to HR Director & Executive Chef
2. Economic worsened in 2008, and impacted to NV business in 2009. How to survive during the
drastic economic slowdown ?
To solve: She did a good initiative to have company outing to have a brainstorm with all of her
employees
3. Thomas leadership, made managers frustrated, and felt that she didn’t always respect them
To Solve: She had to always involving the managers to solve the problem, make them advice from
their perspective.
4. Ben (the GM of Rose’s Café)
He violated company policy, lied to Thomas that Jackson already met the candidates in the
interview sessions
To Solve: No reason can be accepted while touching the integrity issues. Thomas shall preparing a
replacement for Ben
B. Thomas & CFO will take major cuts in the business.

They would have to cut cost across the 3 restaurants by at least 20 percent through the rest of
2009.
She considers to:

a. Cut quarterly bonuses and covers the cost of the managers cell phone charges.
b. Eliminate raises and bonuses
c. Reduce entertainment and events, mainly at Rose Pistola – most affected restaurant by the
downturn.

How to communicate to her direct reports:

Explain them re the impact of the economic situation to their financial downturn.
• Ask their perspective to give some ideas how to shape the business in now situation
• Ask them also how is the impact to their employees motivation re those above point
concerned to cut
• Ask them how to convey the message to all the employees
4. What do you suggest she can do differently in order to become a better leader and/or
manager?
• She was more busy to manage the restaurant company, engaging daily operations. No visions
that made the business expand and grow.
• For powerful vision, she better to put herself lead as the President of Nice Ventures, handover
the CEO position to Jackson
• She can also empower Jackson & those managers from the managerial side in Nice Ventures.
Also to respect her corporate background as :
• The Director of Marketing at Fulltime Software an VP marketing in SuccessFactors.com
• Expert in building & managing marketing, operations, channel sales, re-launching and
repackaging failing companies.

She can consider to develop a vision for company by more focus to market her business more
than now
a. Create more advance marketing & business plan, throughout the crisis situation.
b. Create a Road Map, to envision their business venture 3-5 years from now
c. She can consider to add a marketing person to help her in strengthen the business plan (later
after they pass the crisis).
d. Formulate to expand their restaurant business line/ product line/menu in order to attract
more customers
Proposed New Organization Chart
Laurie Thomas
President Director Nice
Ventures

Doug Jackson
CEO Nice Ventures

Anthony Jennifer Rose Pistola Rose’s Cafe TERZO

Human Finance &
Resources Accounting
Director CFO

Xxx
Sabastian Nancy Sasha
Chef of
Chef of Cuisine General Mgr General Mgr
Cuisine
5. Do you think Thomas resemble Indonesian average leaders or managers? What are the
weaknesses of Indonesian leaders and managers in your team’s opinion?

• Thomas are better than an average management in Indonesia. Leaders in Indonesia typically
has a reactive and emotional personality, and has a paternalistic approach to their business.
They often have a one way communication