Gladiators in the Corporate Political Arena: Reforming A Top Management Team

Abstract

This case describes the top management team’s transfer of power and change in the Wuhan Company of Zhong Yin Real Estate Group (ZY-REG). The company experienced acquisition of Haitian and ZY-REG, introduction of the Wanke management team, the general manager’s loss of control over the company, aggravating conflicts among executives, and abuse of power by a clique of managers. The new general manager Yang Ling took actions to reform and transferred power and responsibilities of each executive in the management team, withdrew power from his opponents, and standardized the decision-making process. The management team’s rebuilding was finally completed in June 2008, and the Wuhan Company was then back on track soon after.