Case Study: Leadership and Organizational Change at Palomar Health

This case study examines the organizational change process at Palomar Health, initiated by the new CEO, Michael Covert, who aimed to transform the inward-focused and complacent organizational culture to a market-oriented one. The CEO hired James Malloy as an OD consultant to facilitate this shift, emphasizing clear leadership. The change process involved a 4-day training program for executives and various training sessions for employees. The CEO modeled clear leadership through one-on-one meetings, fostering understanding and communication. The case highlights the importance of a market culture for innovation, the development of deep understanding between employees and management, and the role of the leader as a role model for change. The case also discusses the relevance of these strategies for Saudi companies, emphasizing the need to adopt market cultures to foster innovation and long-term profitability.

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[Type the company name]
PALOMAR HEALTH: ORGANIZATIONAL CHANGE

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1. Change process initiated at Palomar health
The appointment of the Michael Covert as new CEO of Palomar Promenade who had a track
record of running large organizations but him to rethink the strategies of the company. he
decided to change the culture of the organization which was complacent and inward focused
culture (Kemakorn,, 2014). There was lack of boldness in the organization culture where
people did not state their opinions clearly or freely. Employees had a habit of making other
people feel comfortable and they all avoided getting into challenging situations. The new
CEO wanted to change the culture from clan to market where there are innovative ways of
doing things. To make the change happen, CEO hired James Malloy as OD consultant where
believed the clear leadership was required to brought about the change and the change can
happen from the top.
The consultant invited a group of 14 executives who were diagnosed and were asked to
participate in 4-day training program. The clear leadership model was applied in the
organization that taught to the employees in the organization to stand on their views and
support it. it taught them that the views for every person cannot be the same. Various training
programs were conducted and the first person to roll model the leadership was CEO. The
CEO conducted one to one meeting with the employee that helped him to know their
perception about the things thus developing greater level of understanding between them.
The efforts of OD consultant and CEO through various training programs facilitated the
change.
2. Learning from the case
Some of the learning from the case are –
Importance of market culture-
The market culture is highly important as it initiates innovation and new ideas to do a
particular thing. It adds to the growth and profitability of the organization as the company
is able to venture into new areas of production (Kemakorn,, 2014).
Development of the deep understanding-

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It develops greater understandings are relationship among the employees and top
management as they are able to communicate their desires or opinions clearly to the
party.
Michael Covert as role model-
In the process of initiating change in the organization, it is essential for the leader to
initiate change in him first so that the rest of the employees could follow him. The
example of Michael covert leading by the example of clear leadership is of the important
learnings to be adopted (William,, 2019).
3. Issues and relevancy in Saudi companies
The issues that are discussed in the company is the inward- focused culture that avoid any
risks and challenges for the company. The act of staying in the comfort zone stops the
productivity and growth for the organization. The Saudi companies must learn to adopt
the market cultures as it would promote greater level of innovations in the company thus
leading to long term profitability and growth.

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Bibliography
K. C. (2014). Happiness at work of employees in small and medium-sized enterprises, Thailand.
Procedia-Social and Behavioral Sciences 25 (2011) , 189-200.
W. M. (2019). Intermediate linkages in the relationship between job satisfaction and employee
turnover. Journal of applied psychology 62, no. 2 , 237.