Final Case Analysis

Chris Wong, Sepi Vafaeenia, Lorraine Moore, Mario Hernandez

MGT 300.C1

Fall 2014

History of American Eagle Outfitters (AEO)

❖ An American clothing and accessories retailer

❖ Headquartered in the South Side Works Neighborhood of Pittsburgh, Pennsylvania

❖ Founded in 1977 by brothers Jerry and Mark Silverman as a subsidiary of Retail Ventures, Inc., a

company, which also owned and operated Silverman's Menswear

❖ AEO is the parent company of Aerie and formerly of 77 kids

❖ Brand targets 15- to 25-year-old males and females

❖ 911 American Eagle Outfitters stores and 158 Aerie stand-alone stores.

❖ In 1977, the first AEO store opened in Twelve Oaks Mall in Novi, Michigan

❖ The Silvermans sold their ownership interests in 1991

❖ More popular products are low-rise jeans, polo shirts, graphic T-shirts, Henley shirts, boxers and

briefs, outerwear, and swimwear

Roles and Responsibilities in San Francisco

❖ VP of Engineering - Lance W

❖ Director of Project Management - Susan E

❖ Director of Product Management x2 - Annie and Hima

❖ Sr Manager of engineering - Mario

❖ Director of Mobile - Jeremy X

❖ Director of International - Mei

❖ 2 QA Lead Engineers

❖ 5 Engineering

❖ A Scattering of Contractors (QA/Engineer/Architects)

Roles and Responsibilities in Pittsburgh

❖ Director of Engineering - Ljubo

❖ 2 Engineers

❖ Manager of QA - Haritha

❖ Manager of Business Analysts - Sid

❖ Manager of Continuous Development - Sarat

AE’s Deliverables

❖ Robert’s Objectives

➢ Implement an eCommerce strategy

that AE can compete with fast-

fashion brands like Forever21 and

H&M.

➢ Launch ae.co.uk

AE’s Problem Statement

❖ AE management had to put together a team

to push this strategy out ASAP.

❖ Time Constraints

➢ Rapid pace environment.

➢ Ineffective communication

❖ Positions were filled out fairly quick.

➢ Team dynamics suffer

➢ Lacks team structure

➢ Undefine roles

■ Affects team decision making

Key Strategic Issue

Due to the rapid pace of hiring in the eCommerce department at American Eagle, teams have had little

time to clearly define and articulate the roles necessary for project execution. The lack of attention to

role definition has lead to a dysfunctional team dynamic where decisions cannot be reached by the

teams accountable for making them. Each party has a different idea of what the roles are, and even the

decisions that have been made have not been communicated effectively to everyone.

Alternative Course of Actions (3)

(1) Tackle Problems Quickly

➢ Provide feedback that illustrates the team member for their

actions and encourage them to reflect on how they improve

their behavior.

(2) Know your Team

➢ Learn about going through the phases that a group normally

goes through. (Tuckman Model)

(3) Focus Communication.

➢ Making sure that everyone is communicating correctly.

Include all forms of communication that your group uses-

emails, meetings, and shared documents, for example- to

avoid any ambiguity. (Macher article “Productive

Conversations” from session 8)

Alternative Course of Action 1

❖ Root cause: Lack of attention to role definition

❖ Alternative: Tackle Problems Quickly

❖ See it. Say it

➢ Callout the pinch. Do not let it relapse.

❖ Adapt to it

➢ Pivotal for forward progress

❖ Sustain it (Drexler-Sibbet Theory)

■ Commitment, Implementation, High performance, Renewal

Alternative 1 - Theory Drexler Sibbet Model

❖ Designed to enhance workflow and team

performance rather than restrict the team to

a fixed set of rules

❖ Identifies the team issues that are resolved

at each stage, also those that are left

unresolved.

Alternative Course of Action 2

Know your Team

❖ Leader is familiar with team members

❖ Become accustom to the Tuckman Model -stages of a team

❖ Leader supervises and leads team through Tuckman Model

➢ Learns more about team members individuality during each phase

➢ Adjust roles based on strengths and weaknesses seen during phases

“ Know Your Team”Alternative 2 Theory

Tuckman Model

❖ Forming

➢ Team comes together, undefined roles, boundaries are set

❖ Storming

➢ individuals push against boundaries, natural working styles collide

❖ Norming

➢ Differences are resolved, appreciation for each other

❖ Performing

➢ Hard work leads without friction, team is productive

Alternative Course of Action 3

Focus Communication

❖ Formalize communication of group decisions

❖ Discussion should precede decisions

❖ Define roles

❖ Define Minimum Viable Product (MVP)

❖ Create list of additional functions

❖ Prioritization of additional features

❖ Project Plan

Alternative 3 Theory

Session 8’s Ken Macher Article “Productive Conversations”

AEO employees should be taught these behaviors for communication for group decision making:

❖ Reframe “Winning”

❖ Understand the power of economy with words

❖ Be completely open to changing our mind

❖ Make relevant issues discussable

❖ Avoid degenerating into discussion of people

❖ Synthesize competing perspectives

❖

Recommended Course Of Action

❖ Does not address the team roles and dynamics

❖ Unable to take problems if group is not working together

❖ Team may still be dysfunctioning if utilizing proper communication

mediums

Implementation / Action Plan

❖ Pick team members

❖ Gather information on team members ie:

Myers Briggs assessment

❖ Assign Roles & Responsibilities to each

team member

❖ Team Performs: Observe team, coach

through phases, Adjust roles as needed

Implementation / Action Plan Continued...

❖ Plan will directly address key strategic issue

❖ Become well informed of team members

❖ Adjust roles & responsibilities as needed

Bibliography

❖ No Author Listed. (2000). Forming Storming Norming and Performing. Retrieved from

http://www.mindtools.com/pages/article/newLDR_86.htm

❖ Macher, K. (2000). TOOLS @ WORK: productive conversations: for the dignity and effectiveness of management teams.

Retrieved from: Journal for Quality & Participation; Winter 2000, Vol. 23 Issue 5, p22-26

❖ American Eagle Outfitters, Inc. History. (2003). Retrieved from http://www.fundinguniverse.com/company-

histories/american-eagle-outfitters-inc-history/

❖ Drexler, A., Sibbett, D., & Forrester, R. (1988). Team performance model. In Team building: Blueprints for productivity

and satisfaction. Somerset, NJ: Pfeiffer

❖ Barnes, Louis B. (1988), Managing Interpersonal Feedback. Harvard Business Review

❖ Jackman, J. M., & Strober, M. H. (2003). Fear of feedback. Harvard Business Review

Who Did What in Preparing the Presentation:

❖ Key Strategic Issue: Mario

❖ Problem Statement: Mario, Lorraine, Sepi, Chris

❖ Alternative 1: Chris

❖ Alternative 2: Lorraine

❖ Alternative 3, Editing & Formatting: Sepi

❖ Recommended course of action: Lorraine

❖ Implementation / Action plan: Lorraine

❖ Bibliography: Mario, Lorraine, Sepi, Chris