1. 1
Business Proposal for Eureka Marketing
Developed and Written by:
MA² Consulting
Mandy Maloney, Alison Tubay, Madlen Zamfirova, Ashley Borja
Elmhurst College
2. 2
Meet the Consultants!
MA² Consulting was formed in Elmhurst, Illinoisin 2013.The firmbegan with four
foundingmembers, but has developed into a multi-facetorganization that
continues to grow. Each of our consultants specializes in specific areasof business,
enablingus to have the best tools and knowledge to fill your organizational needs.
Take some time to read below and get to know our consultants!
Consultant: Madlen Zamfirova
Madlen is one of the four founders of MA² Consulting.She received her undergraduate degrees
in Applied Psychology and Sociology fromThe University of IllinoisatChicago.After working in an
administrativerolefor a small organization,Madlen decided to further her business education by
obtaininga Master’s in Industrial and Organizational Psychology fromElmhurstCollege. She has
extensive experience in managerial and administrativepositions,makingher an excellent
resourcefor people-management and effective leadership.
Consultant: Alison Tubay
Alison is oneof the four founding members of MA² Consulting.She received her undergraduate
degrees in Biology and Psychology from Augustana Collegeand decided to further her education
at ElmhurstCollege, where she received her Master’s in I/O Psychology,as well as her MBA. Itis
there she met her cofounders, and the plans for MA^2 Consulting began. She has experience
developing trainingand development initiatives for over 100 companies and continues to build her
reputation in the consultingworld.
Consultant: Amanda Maloney
Amanda is one of the founding members of MA² Consulting. Amanda graduated with a Bachelor’s
of Science from North Central College in 2009 and published her firstresearch projecton FMLA. She
then spent the next 10 years in the business world through varies positions fromstoreoperations to
an AssociateBuyer at Kmart. Amanda then went on to obtain her Master's in Industrial and
Organizational Psychology fromElmhurstCollege and developed MA^2 consulting with the
cofounders. With her background in leadership and employee motivation, and she has applied her
skills and knowledgeto help over 100 companies to grow her reputation as a consultant.In her free
time, she enjoys working in her garden and goingto concerts with friends.
Consultant: Ashley Borja
Ashley graduated with a Bachelors of Arts from Franklin Collegein 2014. She minored in Biology and
Sociology,and moved on to attend Elmhurst Collegeto further her education by gainingher Masters
in I/O Psychology.She lives with her boyfriend and their two dogs in the quiet suburbs of Chicago.
Ashley has spent her time gainingknowledge and experience in the consultingindustry,and greatly
enjoys the work shehas contributed to assistingcompanies with their issues.
3. 3
Executive Summary
Eureka Marketingwasestablishedin2006 as a small marketingfirminChicago, IL.Overthe
years,EurekaMarketinghas grownand built five more remote firmsthroughoutthe UnitedStates.
Theyhave grossedover5 milliondollarsinsalestomajorcompaniessuchasFrank'sBeanie Weenies,
Sriracha FruitLeatherINC.andHomelessCartoonIndustries.Eurekahasdevelopedcommercialsand
advertisementsthathave airedduringmajortelevisioneventssuchas the SuperBowl,FIFA, andthe
WorldSeries.Manyof these projectswere Twittertrendingtopicswithin hoursafterairing,further
reinforcingEureka’sinfluence overthe marketingindustry. Due tothisrapidandcontinuous expansion,
Eurekahas developedissuesof increasedturnover.
MA² was hiredtolookintothe issue of turnover,andfoundthat itwas causedby the
discrepancyin leadershipstylesthroughoutthe company.MA²has decidedtoimplementtheirMasters
Acceptance Maintenance Academy(MAMA) toaidwithunifyingleadershipstylesthroughoutthe
company.Thiswill ensure adecrease inthe rate of turnoverthroughoutthe company,andtherefore
reduce expensesdue tohiring andtrainingnew employees. MA²will lookatdifferentleadershipstyles
to see howleaderscanbe besttrainedto understandemployeeworkhabits,therefore helpingthemto
retainemployees. The current cost of hiringandtrainingeachemployee atEurekaisapproximately40
thousanddollars,butwiththe helpof MA²,we can reduce expensesandcreate a100% returnon the
investmentthatcan be appliedtothe bottomline.
Problem Statement
Bernadette KennyreportsinForbesMagazine thatanyturnoverrate below 15% annuallyis
consideredhealthyandisnocause for alarm.This meansthata companyof 200 workerscan lose 30
individualswithinacalendaryearwithoutitbecominga significantproblem. Unfortunately,Eurekais
experiencingturnoverratesof 35%, or roughly1,750 of their5,000 employeesperyear. Large and
persistentpercentagesof turnovercanbe a leadingcause of businessfailure. Thisisdue tothe financial
strainit putson the businesswhennewemployeesare soughtout andtrained. There can alsobe
emotional stressfeltbyotheremployeesdue tothe constantchange of faculty. Thisinturn can cause a
"snowball"effect,andcause existingemployees toquitaswell due tostresslevels. Inorderto prevent
turnover,the rootof the issue mustfirstbe determined.
For Eureka,the mainreasonfor turnoverisdifferencesin leadershipstylesheldbymanagers
and otherpositionsof authoritywithinthe company;Eureka employstwentyexecutives.Differing
leadershipstyleshave alsocausedabreakdownof goalswithinthe company,which hasultimately
preventedpositive change andgrowthfromoccurring. Thishas contributedtoa lack of commitment
feltbyemployees,and hasresultedinthemleavingthe companyinlarge numbers.
4. 4
Project Summary
Key Questions
Giventhese concerns,MA²hasbeentaskedwith developingasystemthatwill decrease Eureka’s
turnoverrate by trainingthe company’sleader; several keyissuesweredevelopedandassessed.First
and foremost,we mustdetermine which leadershipstylesprovidethe mostunderstandingandstability
feltbyemployees.Next,we mustfigure outhow toimplementthisleadershipstyle interventionsoit
can be usedtoaid inemployee satisfactionandretention.Finally,we needtodeterminethatthe
decidedleadershipstyle isworkingforEurekaina waythat is efficientforthe company andfor the
employees'happinessaswell.
Throughempirical research,careful considerationof the company’scircumstances,anda
thoughtful interventionplanof ourowndesign,MA²aimsto minimizefinancial lossesof Eurekacaused
by turnoverandunifythe company.
Research
Leadershipintoday's corporate worldneeds be ready toadapt inthe everchangingworldof
business(Kunkeletal., 2013). Leadersmustbe able tomentorand developtheiremployeestothe
highestpotential.Additionally,effective leadersrefrainfromusing the reasonof "itisn'tinthe budget"
as an excuse to not improve theiremployees(Kunkel etal., 2013).Executivesneedto spendtime with
theiremployees andcreate benchmarkgoals,specifically increativity,productivity,educationand
communication. These goals will promote growthforeachemployeeandreduce barriersthatare
createdwithinthe businessworldthatcanhinderan employee’spotential (Kunkel etal., 2013).
Businessesthatare consideredhigh performers inthe marketplace donotdo thisautomatically.Instead
theyoftenhave an executive coach toaidthe organization (Subramanian,2004).
Good executivecoachingisanart that can unleashpeople'sfull potentialandcreate meaningful
objectives.Coachingdoesnotonlyhelpthe businessasa whole,butthe executive andemployeesalike
(Subramanian, 2004). Executivescanreachtheirpotential throughself-assessment;thiscanbe obtained
throughthe personal developmentprovidedbyleadership(Subramanian,2004). Coachingcan be an
effectivemeansfordevelopingleadership,enhancingwell-being,andfacilitatinggoal attainmentwithin
an organizational setting(Grantetal., 2010). Leadershipstylescanalsoaffectorganizational
effectivenessandperformance indifferentwaysbyinfluencingthe social,economicandenvironmental
contextswithinabusiness(Franco,2015).Whenleadershipisneglected,the likelihoodof mistakesare
increased,andthe successof the businessis greatly reduced(Franco,2015). There are the three leading
stylesof leadership:transformational leadership,transactional leadership,andpassive-avoidant
leadership;these are seenasthe all-encompassingleadershipstylesof the lasttwentyyears(Franco,
2015). Transformational leadershipisdefinedasthe leader’sabilitytoinspire theirfollowersby
adoptingthe organization’svisionandfocusingall of theirenergyonreachingthe business'scollective
goal (Franco,2015). Thistype of leadershipdemandshighcommitmentandidentificationof the leader
and the business(Franco,2015). Transformational leadershipislabeledaspro-active innotonlythe
developmentof the organization,butalsoinworkingindividualsthatexpresshighermoral andethical
5. 5
standards(Franco,2015). Some of the personality traitsthatare exhibitedbythese leadersare courage,
determination,responsibility,justice,empathy,passion,dedicationandself-control (Franco,2015).
Transactional leadershipisthe exchange betweenthe executiveandthe subordinatesinorderto obtain
a goal (Franco,2015). In thisstyle of leadership,the executivewouldexchange rewardsand
punishmentsdependingonthe qualityof the employee’sperformance (Franco,2015).Passive-avoidant
leadershipcanbe describedasthe executiveavoidingresponsibilityandfailingtofollow upwith
employees,therefore avoidingleadershipqualitiesall together(Franco,2015). Thistype of leadership
avoidsfollowinguponassignmentsandissues,thereforeshowingthatgoalsandstandardsare not held
inhighregard throughoutthe organization(Franco,2015).
Project Intervention
Approach
It isimportantthat Eurekausesa leadershipstylethatunifiesthe company. There mustbe
excellentcommunicationbetweenbrancheswithinthe companyaswell. Consistentstructure must
accompanythe leadershipstyleinorderforthere tobe harmony and consistentprogress.MA²will
implementtheirMastersAcceptance MaintenanceAcademy(MAMA) methodtohelpdetermine which
leadershipstyle ispresentand mostsuccessful inthe company. Theywill thendefine itandimplement
that style throughoutthe restof the company,developingandtrainingleaderswhere necessary.
First,we are goingto recognize the existingleadershipstylesfromthe employee’sperspective
withthe MultifactorLeadershipQuestionnaire.Thisisone of the bestwaysto measure the influence of
differentleadershipstyles(Franco,2015). The reasonfor usingthistestisthat it assessesabroadrange
of leadershiptypesincludingpassive leaders,leaderswhogive contingentrewardstofollowers,and
leaderswhotransformtheirfollowersintobecomingleaders themselves.This testisusedtogive insight
intothe leadershipstylesof the executivesatEureka.
We are also goingto use the AuthenticLeadershipQuestionnaire tounderstandwherethe
leaderstandsonself-awareness,transparency,ethical/moral,andbalancedprocessing. Withthe use of
bothquestionnaires,we will be able totargetthe leadershipstyle toeachexecutiveandlimitthe
amountof downtime thatit wouldnormallytake tounderstandthe leadershipqualities.We willthen
coach the executivesonaweeklybasis,talkingaboutthese majorpoints:self-awareness,transparency,
ethical/moral,andbalancedprocessing.
Methodology
Before the MAMA methodcan begin,asimple initial surveymustbe administeredtoemployees
to measure theircurrenthappinessandcommitmentlevels. Thissurveywill consistof 50 itemsona 1-5
Likertscale (1 beingstronglydisagree,5beingstronglyagree) thatfocusonhow currentlyhappyan
employeeisatthe company,and howstronglycommittedtheyare tostay at the company.Thissurvey
will be administeredbefore MAMA isimplemented,andagainafterthe MAMA methodhas been
6. 6
completedinordertoprovide feedbackthatMA² can use to determine the effectivenessof the MAMA
methodin the company. Thissurveywill actas MA²'s evaluationtool forthe MAMA method
implementation.
Afterthe initial survey,MA²will have all 5000 employeestake the MultifactorLeadership
Questionnaire,whichwill take about30minutestocomplete usingcomputersoftware.Employeeswill
be scheduledin45 minute blocks,beinginstructedtomeetinageneral conferenceroomwhere the
questionnaire will be administered.Once we introduce ourselvesasthe thirdpartyconsultingfirm,
employeeswill be briefed withthe instructionsandthe purpose of the survey. All responseswill be
confidential.The resultswill populateone hourafteranemployee hasfinishedthe surveyandwillbe
groupedbydepartmentandsub-categorizedbyleaderexecutives.
The executivesof EurekaMarketingwillalsologintothe systemtofirsttake the Multifactor
LeadershipQuestionnaire,followedbythe AuthenticLeadershipQuestionnaire.Eachexecutive ineach
branch of the companywill be sentaspecificloginthatwill linktheirspecificemployees’surveystotheir
ownsurvey.Each executivewill be givenone hourtotake bothsurveys,afterwhichthe surveywill
automaticallyclose outandthe loginwill nolongerbe valid.Itwill take approximatelyanhourforthe
executivestoreceive anexplanationof theirsurveys.
The AuthenticLeadershipQuestionnaire measuresfourmainleadershiptraits:self-awareness,
transparency,ethical/moral,andbalancedprocessingtraits. Self-awarenessisdefinedasthe degree to
whichthe leaderaware of hisor her strengths,limitations,how otherssee himorher,andhow they
impactothers.Transparencyisdefinedashow well the leaderreinforcesalevelof opennesswith
others,allowingthemanopportunitytobe forthcomingwith theirideas,challengesandopinions.
Ethical/Moral referstothe degree towhichthe leadersetsa highstandardfor moral and ethical
conduct.BalancedProcessingreferstohow well the leadersolicitssufficientopinionsandviewpoints
priorto makingimportantdecisions. The reasoningbehindgivingthe leadersbothsurveysisto
understandhowthe executive thinkstheyleadandhow othersview themasaleader.Withthe results
fromthistest we will understandhowauthenticthe leadershipof the executive isandwhere itcanbe
improved.
MA² will thentake the resultsof all of the executives’surveysandmatchthemup to
employees’surveys.We willuse these comparisonstoevaluateandcreate a goal chart for each
executivethatMA² will be training soeveryexecutive will have the same leadershipstyle.The
MultifactorLeadershipQuestionnaireresultswillgive ascore forhow the employeeviewsthe leader,as
well ashowthe executive seethemselves. The scoreswill reportasthe following:
8. 8
AuthenticLeadershipQuestionnaire:
Evaluating MAMA Method's Effectiveness
As previouslystated,turnovercausesanimmense increase incost fora company. In thiscase,
turnoveroccurs because of the manycompetingleadershipstyleswithinthe company. MA² will
implementtoolstounifythe company andreduce turnoverrates, therefore savingEurekamoneyin
hiringandtrainingprocesses. Todetermine if the companyhasbecome unifiedwithitsleadership
styles,employee happinessandcommitmentlevelswill be measuredalongwithretentionandturnover
rates. Havingsteadyretentionand decreased turnoverrateswill level outthe recruitmentcosts,
therefore benefitting the company'soverallfinancial andorganizational stability. If unificationis
successful,moneywill notbe wastedonunnecessaryrecruitmentandtrainingcosts,allowingthe
companyto have greaterprofits.
In orderto determine if andtowhatdegree the MAMA methodwassuccessful forthe
company,MA² will implementaseriesof surveysbefore andafterimplementationtocompare
employeecommitmentandhappiness. One initial surveyasmentionedabove inthe methodologywill
9. 9
be givenbefore the startof the MAMA method. Then,4 monthsafterMAMA's full implementation,the
surveywill be givenagain.Thisassessmentprocesswillbe repeatedeveryquarter,meaningevery4
monthswithinthe company,inordertoassessprogressandto determine if MA²needstomake further
adjustments. Overall,the assessmentprocesswill catchanyfuture changesinthe unifiedleadership
style,thuspreventingthe companyfromfallingbackinto a longtermturnovercrisis.MA² will give the
employeesthe surveythatmeasuresoverall happinessandcommitmentwithintheirownbranch. MA²
will aimtoobtaininformationonhowsatisfiedandcommittedemployeesare tothe companybefore
and afterthe MAMA methodisimplementedtogaininsightonhow effectivethe MAMA methodis.
Mission, Goals, Objectives
Mission
Establish
existing
employee
commitment
and happiness
levels
Goal
Discoverhow
happyemployees
are,and how
likelytheyare to
stay intheir
currentposition. Objective
● Send out survey
● Gather data and
analyze
happiness/commitment
levels
● Learn about
company through
employees and upper
management
● Move on to
implementing MAMA
method based on levels
TimeTable
● First and
SecondMonth
Mission
Implementfirst
level of MAMA:
Multifactor
Leadership
Questionnaire
Goal
Gain existing
leadershipstyle
perspective
fromemployees
Objective
● Give Multifactor
Leadership
Questionnaire to
employees
● Determine what
leadershipstyle is
mostsuccessful and
prominentfrom
employees’
perspective
TimeTable
● First and
SecondMonth
Mission
Implementsecond
level of MAMA:
Authentic
Leadership
Questionnaire
Goal
Discoverwhere
the leader
standson self-
awareness,
transparency,
ethical/moral
and balancing
process
Objective
● Give Authentic
Leadership
Questionnaire to
executives
● Findwhere
leaderstandsonself-
awareness,
transparency,
ethical/moral,and
balancingprocess
TimeTable
● Third
Month
10. 10
Budget Summary
Line item description In-kind contributions External costs
Personnel $698,375.97
Travel $85,332.22
Equipment $275,375.96 $854,889.55
Materials and supplies $434,576.04
Consulting (MA²) $8,167,731.00
Project totals $973,751.93 $9,542,528.81
The total cost fora yearfollowingthe startof the yearis$9,542,528.81 To put thisintoa
differentperspective,the monthly costis$795,210.73. MA² is planningonspendingabout$1,908.51 per
employeetohelpreduce the turnover. Eurekaisaverage costtohire and train a new employee is
around40 thousanddollarsayear,peremployee.Withthe turnoverpercentat35, Eureka isspending
70 milliondollarsperyeartohire newemployees.Withthis proposal,we wanttoreduce the turnover
to just15% inthe firstyear,or reduce hiringspendingby40 milliondollars.Thiswillgive Eurekaa101%
rate of returnby hiringMA². The budgetismade on a yearlycostto ensure fundsare available forthe
durationof the interventionproject.
Mission AnalysisDataand
implement third
level of MAMA
Goal
Analyze data
fromsurveys
and create a
goal chart for
executives.
Objective
● Create detailed
chart of goalsfor the
executive.
Create monthly
meetingsfor
executivestoattend
and whatto workon
TimeTable
● Fourth
throughninth
month
Mission
Evaluate MAMA’s
effects
Goal
Re-evaluatehow
happy/committe
d employees
after
implementation
of MAMA
Objective
Give employee
satisfactionsurvey
againto compare to
priorsurvey
● Implement
follow-upmeetings
TimeTable
● Tenth
througheleventh
month
11. 11
Timeline Summary
Dates Project launch Weekly Bi-weekly Monthly
Objective 1. Launch survey
to determine
existing
leadershipstyles.
2. Implement
MAMA method
withexistingstyle.
3. Followupwith
employee
satisfaction
survey
1. Individual
meetings
between
managementand
departments.
1. Manager
meetings
between
branches
1. Online survey
and focusgroups
conductedbyHR.
Thisprojectwill be executedthroughoutthe proposedtimeline of one year.The MAMA method
will take place immediatelyafterthe mainleadershipstylehasbeendetermined,andwillconclude one
yearfrom that startingperiod.Satisfactionsurveysgivenevery4monthswill determineif the MAMA
methodneedstobe repeatedatanytime afterinitial implementation. There will alsobe weekly,bi-
weekly,andmonthlymeetinginterjectionstoensure the MAMA methodissmoothlyintegratedand
understoodduringthe executivetrainingprocess. Thiswill helpthe companybecome unifiedandopen
communicationbetweenthe branchesof the company.Inorderto ensure thatthe MAMA methodhad
an effect,the surveyswill be distributedasecondtime tofollow uponemployeehappinessand
commitment.
Conclusions
While there are manyfactorsto considerwhenassessingfinanciallossinagivenorganization,
turnoverisone that can sometimesbe asimple processthatcanmature overtime.If an organization
hiresknowledgeableprofessionalsthatcanimplementasuccessful system, turnovercanbe significantly
improved. One effective methodof decreasingturnoverisbetteringleadershipwithinthe company.
Unsuccessful leadershipcancause a tremendousamountof turnover;therefore,leadershipstylesare
crucial.MA² Consultingunderstandsthe importanceof unitywithinacompany,andhas devisedaplan
to minimize financiallossesdue tolowlevelsof employee satisfactionandcommitmentdue todifferent
leadershipstyles.
Fromthe research,we have foundsupportof a planthat includesawayto uneartha core
leadershipstyle,andameansof mergingthe distinctbranchesinthe company.We have assembledthis
technique intoamethodthatcan not only locate thatone leadershipstylealreadypresentthatworks,
but alsoworkwiththe companyand employeestoimplementthe one style sothere isfinallyunity
throughoutthe company. Thisin turnwouldsave the companymoneythathas beenwastedon
turnovereffects,suchasrehiringandtraining. Insteadof wastingthese fundsyeartoyear,MA² has
made it possible touse these fundstoimplementasystemthatcan stopturnoverat itscore, and use
the evaluationtoolsof MAMA methodtocontinue topreventturnover.
12. 12
References
Franco, M., & Matos, P. G. (2015). LeadershipstylesinSMEs:A mixed-methodapproach. International
Entrepreneurship And ManagementJournal,11(2),425-451. doi:10.1007/s11365-013-0283-2
Grant, A. M., Green,L. S.,& Rynsaardt,J. (2010). Developmental coachingforhighschool teachers:
Executive coachinggoestoschool. Consulting Psychology Journal:PracticeAnd Research,62(3),
151-168. doi:10.1037/a0019212
Hrop, S.(2004). Reviewof CoachingAcrossCultures:New ToolsforLeveragingNational,Corporate,and
ProfessionalDifferences.PersonnelPsychology,57(1),220-223
13. 13
Kunkel,E.S.,Lehrmann,J.A.,Vergare,M. J.,& Roberts,L.W. (2013). Leadershipconsiderationsfor
executivevice chairs,newchairs,andchairsinthe 21st century. AcademicPsychiatry,37(4),254-
260. doi:10.1176/appi.ap.12010019
MLQ ALQ (MultifactorLeadershipQuestionnaire AuthenticLeadershipQuestionnaire) - MindGarden.
(n.d.).RetrievedMay1, 2016, from http://www.mindgarden.com/185-authentic-leadership-
questionnaire-multifactor-leadership-questionnaire
Subramanian,R.(2004). Reviewof CoachingAcrossCultures:New ToolsforLeveragingNational,
Corporate & ProfessionalDifferences. Academy Of Management Learning &Education,3(4),462-
464. doi:10.5465/AMLE.2004.15112561
Team MultifactorLeadershipQuestionnaire - MindGarden.(n.d.).RetrievedMay1, 2016, from
http://www.mindgarden.com/149-team-multifactor-leadership-questionnaire