Transkin Income Fund: Leading Entrepreneurial Teams

Transkin Income Fund provided freight transportation services in Canada and the United States. In mid February 2009, in response to a sharp fall in demand for transportation services due to the economic crisis, the chief operation officer had suggested that each of his six freight divisions and six support divisions and the corporate division should all implement a salary rollback. The chief operating officer (COO) believed that a strong message needed to be sent to customers, shareholders, banks, owner-operators, drivers and suppliers that Transkin was being proactive by taking action internally to ride out the crisis. Two of the 13 general managers resented the COO's plan. The two dissenters were from Transkin's two most profitable divisions; they were also the most senior executives. Both had their own reasons to resist the COO's idea. The COO wondered how he should respond to both dissenters - he wanted the support of every general manager for the salary rollback.