Leading Strategic Change At DaVita Essay Example | Topics and Well Written Essays - 750 words

Leading Strategic Change At DaVita - Essay ExampleIt is evidently clear from the discussion that the turnaround in the fortunes of DaVita is attributable to managerial changes integrated by the company by hiring a new C.E.O, Kent Thiry. Thiry has been the C.E.O of DaVita since October 1999 and has been an instrumental force in its growth and success. He is an experienced C.E.O and a graduate of Harvard in MBA. In October 1999, a time when Kent Thiry took over as C.E.O for Total Rental Care the company was collapsing. Basically, Total Renal Care could not honor its loan obligations, was already paying the charge to its creditors, its leverage had shot up due to the many acquisitions and most vividly the company was on the brink of bankruptcy. Additionally, its stock price had dropped greatly, its systems non- performing and its employees demotivated and unhappy. What made the situation even worse was the shareholders loss of faith in the company to the point of using it. The future o f the company was uncertain. The new C.E.O, Kent Thiry was facing a dilemma of how to rescue the company that was heading for a closedown. It was now his obligation to turn things around and gain the lost confidence. Thiry was taking over a incubus job, one that many would avoid. Because of the many challenges that Total Renal Care was facing at the time Thiry took over as C.E.O, a turnaround of things was a precedence for him and the management. The purposes of these transformations especially the restructuring of the debts and cash flows were to ensure the company was back on its financial feet. This was to ensure the firm avoids the foreseen financial risk of bankruptcy. Additionally, the early meetings of the CEO and the executive were fundamental in streamlining the companys payroll decisions, operating philosophy and other vital legislation that the company wanted to instill. Adoption and recognition of centers aimed at bounteous attention to their market with a view to ma king them feel appreciated and cared for.