Kennedy Family Foods: Working for an Old Family Firm Randall Jones, a new product development specialist at Kennedy Family Foods, Ltd., paced in his office and shuffled papers on his desk.  He had a lot of work to do, but couldn't seem to concentrate. It had been one month since he had presented a comprehensive proposal for product testing to SMART, the Senior Management Action Review Team. He needed an answer on whether he could move forward on test-marketing an all-in-one insulated portable cooking bag that had been developed as the anchor product for a new line of high-end, quick fix, speciality picnic foods. The planned product launch and the portable cooking bag were scheduled to coincide with the Labor Day weekend, the traditional start of the picnic season in the region. Although Labor Day was still six months away, Randall knew that his window of opportunity for completing the test-marketing was closing quickly. If he missed the time frame schedule for Labor Day weekend, there was a good chance that annual sales projections would fall short. He didn't want to think about the consequences. Randall wondered why he could not get a straight answer from SMART. Could their dallying be the result of the famous "Black Hole" he had been warned about when he first joined Kennedy Family Foods ten months earlier? The Beginning When Randall received a call from an executive recruiter about a “great opportunity” at Kennedy Family Foods, his immediate reactions was “No thanks, not interested.” A recent U.S. MBA graduate with two year’s’ experience at a Fortune 500 food-manufacturer in the U.S.A., Randall was primed for the fast track. His goal was to become one of the youngest international brand managers by the time he was 30. All that Randall knew about Kennedy Family Foods was that it was a privately held family company in the Carribean where his family had lived many years before.  Kennedy Family Foods had been canning fruits, vegetables, and meats since 1922. The products had not changed in over 85 years – even the labels had not changed in 50 years. To Randall, Kennedy Family Foods was a low-growth, low-margin commodity business.  It was stale and old, and he had no interest in applying there. Then he received a phone call from Jeffrey Kennedy, the president and CEO of his family business. Stunned by his forthright candor in calling him directly, Randall agreed to come for an interview. Jeffrey Kennedy was the fourth generation to lead the family business. A graduate of the University of West Indies (Jamaica) with an MBA from a Michigan university, Kennedy was groomed from birth to take over the company. During high school and university, he had worked summers at the canning plans, driving forklifts, hosing down equipment, and changing the glue canisters for the labeling machines. After graduate school, he started as a shift supervisor, eventually working his way up to plant manager. Before rising to the office of the president, Kennedy had done a tour of duty in the marketing department and had served as chief financial officer for six years. At 45, the man knew his business. Randall was impressed by Kennedy’s charisma and sincerity. “You’re just the type of person I want on my team,” he had said. “I’m ready to move into the high-growth, prepackaged, speciality foods market.  I need bright, energetic, and creative people who can take ideas from concept to completion with a lot of interference from management.” It was that last phrase, without a lot of interference from management, that caught Randall’s attention.  Randall was ready to manage a portfolio. Kennedy dangled the ultimate carrot in front of him. “If you come on board with me, your first project will be to handle the introduction of our new portable cooking bag at the same time we launch our new prepackaged specialty picnic foods next year. You handle this right and you’ll be a international brand manager before you know it.” Randall was hooked. Randall liked everyone he met at the company.  The money was good.  The on-site workout facility and lunch room were an immediate bonus.  The opportunity to become an international brand manager was definitely the trump card.  Randall could not think of one reason he should not join the company. Early Warning Signs One of the first things Randall noticed during his first weeks at Kennedy Family Foods was how lax everyone seemed to be about office hours. At 7:30 every morning, his car was generally the first in the parking lot. Most of the marketing and new product development people did not arrive until 9:00 am. By 5:15 p.m., the parking lot had cleared out, except for a few cars. Randall chalked up the late start and early departures to the emphasis on family that Jeffrey had stressed at their first meeting. “This company was founded by my great grandfather more than 75 years ago on the simple premise of neighbors working together to make a better life for themselves,” Kennedy had said. “No one is expected to put in a 70-hour work week. Time with the family is important. Even our plants close on Sunday and major holidays so workers can be with their families.” It did not take Randall long to feel comfortable.  During his first weeks on the job, someone in the main office dropped by his office nearly every day to chat and welcome him aboard. The place was full of nice people, so it caught him by surprise when, after offering a problem-solving remark, he was singled out at a staff meeting for being “too aggressive.” Richard Clark, his immediate supervisor, said, “Now, Randall,” that might be how you talked to others in the United States, but around here, we do not attack each other in staff meetings.” Embarrassed, Randall explained, “I’m sorry. I wasn’t trying to hurt anyone’s feelings. I was just trying to look at what the objections might be if . . . “ Clark cut him off with a wave of his hand. “We know you don’t know any better yet, but you’ll learn. We keep it nice and friendly around here in all our conversations. It’s the Kennedy Family Foods way.” In his office later that morning, Randall replayed the exchange over and over in his mind. He was confused. Tom Singh, a veteran product development specialist, poked his head in the door.  “Mind if I talk to you for a minute, Randall?” he asked. The Culture Contradiction Randall motioned for Tom to sit down. “Tom, what just happened to me in that meeting?” he asked. “Ah, that was the official ‘Welcome Aboard and Don’t Rock the Boat Lecture” from Richard,” he replied. “All the relatively new people have gone through it.” “Do you mean we’re not allowed to criticize or challenge anything in a staff meeting?’ he asked. “Yeah, that’s pretty much it,” Tom replied dryly. After a long silence, he continued, “I can see the wheels in your brain turning. You’re trying to figure out what’s going on here, right?” “How do you get anything done around here?” Randall asked. “Things get done eventually,” Tom stressed. “This is a privately held company in a low-growth business. Because there’s no big hurry, SMART always takes its time making decisions.” Randall was flabbergasted. “Wait a minute. Kennedy himself told me that the company was position to move into new, high-growth markets. If we’re gong to be competitive, we’re going to have to make decisions in real time and get new products to market faster than our competition.  All of that suggests decentralized decision making.” Tom smiled. “Yeah, it’s even in our mission statement, but that’s not the way things really work around here.” “Then why would they hire people like us?” Randall replied. It makes no sense. I came here for the chance to be an international brand manager, to do cutting-edge work. I didn’t come here to baby-sit a bunch of old products.” Tom looked out the window onto the manicured lawn and landscaping in front of Kennedy Family Foods. “In my interview,” Tom continued, “Kennedy promised that I would be in charge of branding a new line of Latin foods. I’ve been here three years and I have yet to roll out a single new product.” Randall sat silently, taking in this new information. “It’s because of the Black Hole.” Tom stated. What’s that?” Randall asked. “The Black Hole is the nickname the employees have given to the SMART group. In those weekly meetings of SMART , all initiatives, ideas, and proposals come to a grinding halt. Nothing moves forward until SMART has given its approval.” “How could there be a black hole when, according to Kennedy, the company hierarchy has been flattened to shorten the decision-making time?” he asked. “Look Randall,” Tom said as he turned to leave, “it’s always a little frustrating here at first, but you’ll get used to it, and why sweat it? The money’s good, the hours can’t be beat, and there is no pressure to perform. No one every gets fired from Kennedy Family Foods.” Randall reached for his company manual. It was the first things he had been given by the human resources manager when he joined he company. He opened to the inside cover and started at the smiling face of Jeffrey Kennedy.  Even in photographs, he was charismatic. He reread the vision statement next to his picture. At Kennedy Family Foods, we are committed to being the number one innovator of high-end, specialty food products. We will reach this goal by employing the best and the brightest, adhering to the best management practices, and offering the best value for our customers, suppliers, and vendors. To this end, we strive to provide a safe and congenial workplace for all employees, offer personal and professional improvement programs, and compensate generously for performance. We provide a business environment in which innovation and creativity can flourish, and people at all levels of the organization are empowered to make decisions as if they owned the company. Randall agreed with every word in the vision statement.  It sure looked good on paper. The Project The day after Randall’s conversation with Tom, Jeffrey Kennedy dropped by his office.  He flashed his winning grins as he sat in the plush visitor’s chair across from his desk. “I just wanted to check up on you and see how you are getting along,” he started. “I’m doing great,” Randall quickly replied. “Good!” he responded. “I know you are ready to break out from the back of the pack and become a lead sled dog for Kennedy Family Foods!”  Randall made a mental note of how Kennedy alwasy peppered his conversations with metaphors about dogs. “She’s a greyhound,” he had told Randall when describing the CFO, Katherine Yee-Chin. “I hired her straight out of business school.  She made it to the front of the pack in less than five years.” Kennedy seemed to have a rating system for all his employees. He referred to some as greyhounds (fast, with a strong desire to win), St Bernards (loyal, but not very productive), or strays and puppies. Randall wondered if he had already settled on a dog rating for him. Kennedy continued. “I think it’s time for you to take on the cooking bag project we talked about during your interview.” Randall took out a pad of paper and jotted down notes while Jeffrey Kennedy shared his ideas. As he left Randall’s office an hour later, he offered one more suggestion.  “Call Angie, my secretary, and make sure she puts you first on the agenda. Can you have the numbers ready in three weeks?” “I’ll be ready,” Randall said confidently. All concerns regarding Tom’s earlier warnings about the Black Hole went out of his head. Randall worked tirelessly, putting together the numbers and rationale for the new portable cooking bag. The centerpiece of the plan was the focus group research. He could not recommend the company move forward with production of he bags without strong evidence from the focus group research. With calendar in hand, he estimated when everything had to be completed to make a Labor Day kickoff. Randall called the focus group research company and told them to have everything ready in one week. “This shouldn’t take long,” he told the owner of the research company.  “I’ve got the budget, the time line, and the rationale all worked out. I know it’s a ‘go.’ I just need to get the final green light from Mr Kennedy.” During his presentation to the Senior Management Action Review Team, Randall fielded question from the senior vice presidents. At the end, Kennedy announced, “Randall, this is really excellent work. We will have an answer for you shortly.” He departed the meeting confident about his performance and the plan.  He went back to wait for the answer from SMART. Inwardly, he chuckled at how gullible he had been to believe there was a black hole. The Black Hole Appears At the end of the week after Randall had made his presentation to SMART, the office phone rang. It was the president of the research company. “Hello, Randall? This is David Segar at Independent Research. I’ve got a squad of people on standby waiting for your signal. What’s the word?  This is starting to cost me money.” Randall felt terrible and tried to stall for time. “I’m sorry, Dave.  Jeffrey Kennedy has been out of touch this week with an emergency at the plant in San Simeon. I’ll call you as soon as I have an answer. To be on the safe side, you better let everyone go for now.” Now, one month later, Randall was lacking in confidence. “This has got to be bad news,” he fretted to himself. “How could I have missed the mark so badly? Why doesn’t one of them call me and at least tell me something?” Randall drove home frustrated and tired from the lack of communication at Kennedy Family Foods. “This is not what I singed on for,” he thought bitterly. Monday morning, Randall called the president’s secretary, Angie, trying to sound confident.  “Hi Angie, this is Randall Jones in new product development. I need to set up an appointment with Mr Kennedy as soon as possible. “What’s this regarding?” the presidents secretary and gatekeeper asked cooly. “Well, it’s been one month since I presented the test marketing proposal at the weekly senior management meeting. I have a very tight deadline and Mr Kennedy assured me that he would get back to me promptly. I’m just following up because I have a lot of people on standby, waiting for the signal to begin. I don’t have much time to spare if we are going to make the rollout in November. I just need to know where we are on this.” “Randall, if Mr Kennedy said he would get back to you, I’m sure he will.  Mr Kennedy is in the Bahamas this week with clients and cannot be disturbed. When he returns next Monday, I will let him know you called.” “Monday, Angie, I really need an answer before then. Can’t somebody else on SMART give me an answer?” I’m afraid you’ll just have to wait until Mr Kennedy returns,” Angie replied. Randall felt totally adrift. With each passing day, the chances of making the Memorial Day weekend kickoff were facing quickly. “How could I have been so wrong about Jeffrey Kennedy and this place,” he thought. “Is he the consummate liar or was I naive to think I could make product development decisions on my own?” Randall walked into the spacious break room, complete with free coffee and tea, soft drinks, snacks and a HD television, where employees gathered to chat, exchange pleasantries, and sample new products. The place looked the same as the day she started but now he saw things with different eyes. “Jeffrey Kennedy may have flattened the organization, but he never empowered his people,” he thought bitterly. “We’re all just hanging around waiting to be told what to do.” Randall walked up to Tom Singh who was pouring himself a second cup of coffee, the current Guardian under his arm.  “Does anything ever come out of the Black Hole?” Randall asked. Tom looked at Randall sympathetically and said, “Yes, but generally not until you have completely abandoned the project and given up all hope.” Randall felt defeated and quietly said, “Why do you stay, Tom?” Randall, I may be here physically, but my heart and soul have left the building,” Tom replied flatly. “I got my hand slapped so many times my first year, I quickly learned to keep my mouth shut, my thoughts to myself, and just do as little as possible. I have to kids in elementary school, a wife, and they all like it here. There are worse things in life than not being fulfilled professionally. And I am one of many – just look at the parking lot. There are a lot of people with this organization who check out early every day.” There was a lag in the conversation and finally Tom aid, “Come on, Randall.” You’ll get used to it, especially when you realize that there’s really nothing you can do about it.” Randall had given up a lot to come to Kenney Family Foods.  He thought about the family and  friends he left when he agreed to relocate. What had seemed like such a promising career move now felt like a big mistake. “I don’t know, Tom, I just don’t know . . . .”  His voice trailed off. Source: Revised from a case by Marian L. Houser and Astrid Sheil in Case Studies for Organizational Communication.