VIDEO CASE

Delegation at Boyne USA Resorts

Detroit native Everett Kircher moved to northern Michigan in 1947 and purchased land (for the price of $1) necessary to start his first ski resort known today as Boyne Mountain. Kircher practiced a traditional chain of command in a vertical organizational structure. Every decision came from his desk. As his company expanded, additional people were needed to manage the different locations. For Kircher, it was the beginning of a partial decentralization and delegation of his leadership and decision making. In 2002, Everett Kircher died at the age of 85, but his legacy lives on. The company's reorganization in 2004 paved the way for the "Boyne Brand" to grow while maintaining organizational integrity. General managers were hired at each resort location to oversee operations. In addition, vice presidents known as "subject matter experts" were hired. The VPs share critical information with the general managers to help each resort operation. The general managers fold these experts into the decision-making process and help provide policy.

1. Describe leader-follower relations at Boyne USA Resorts.
2. Why was decentralization and delegation necessary to Boyne's future despite the success with Everett Kircher at the helm of a vertical structure?