Situation Analysis

Nickelodeon was launched in 1979 as a cable channel for kids ages 2-11 years old; they were later
acquired by Viacom, a major powerhouse, in 1986. By 1995, Nickelodeon was a basic cable network and
had begun international expansion. Nickelodeon could be watched in more than 30 countries by 1998.
Taran Swan, a Harvard Business School graduate, was highly interested in the Latin America market for
the Nickelodeon expansion and played an integral role. Swan began her career with Nickelodeon
International in business development, but she became a general manager as she helped revive a failing
European launch. After finalizing the launch in Germany, Swan exhausted the larger part of 1995 and
early 1996 completing due diligence and writing the business plan for Nickelodeons access into Latin
America. Competitors, such as Cartoon Network and Fox Kids Network, had already launched in Latin
America; the time felt right to enter the market before it became too saturated with competitors. In May
1996, she convinced the corporate office in New York City to distribute development funds to move the
business planning course of action forward.
In September 1996, Nickelodeon Latin America finally secured its minimum distribution targets and
Swan was awarded full corporate approval. Swans management approach included hiring gifted,
determined individuals and allowing them the freedom to succeed or fail. Taran used analytical methods
for analysis to focus on the bottom line which she communicated to her team regularly. Swan was
dedicated to building a team that would take risks and think outside of the box to succeed.
Opportunity/Problem/Issue
Swan was fully in charge of driving the Latin American expansion plan. The team was comprised of
personally hand-picked individuals who had directly contributed to the fast paced growth in their division
and was now of notable size. To control costs, their sister partner, MTV Latin America, shared
infrastructure and staff to assist in the launch in Miami, FL until there were strong indicators of success to
invest additional resources. Swan had to build the channel knowing she could lose funding at any time.
The MTV advertising and affiliate sales teams were responsible for selling Nickelodeon which was very
difficult since they typically focused on an adult audience. Managing this new team was complicated,
and Swan did not want to compromise on price or quality to enter the marketplace. The number of cable
channels in Latin America was skyrocketing, but only 10% of the population in Latin America had cable,
thereby limiting interest from advertisers. There was also tension between managers with differing styles;
some were young and new to the industry, while others were from MTV or Nickelodeon.
Due to a medical condition requiring Swan to stay on bed rest for the remainder of her pregnancy, there
will be an absence of authority for up to half a year or possibly longer. Swan has been the primary
decision maker of this initiative; Nickelodeons primary issue is that it faces significant risk in the
absence of Swans leadership on a daily basis which might cause decreased productivity and growth in
the expansion plan. There are several examples from this case that provide evidence to support this issue.
For instance, the disagreement between Byrne and Neuhaus where Byrne wanted to move their offices
with the dedicated Nickelodeon staff, while Neuhaus wanted the sales team to be positioned within the
MTV location. This conflict justified the need for an authority figure to settle disputes. Secondly, there
were external pressures that needed to be managed. Swan practiced bi-weekly executive notes from her
department heads that were delivered to New York executives. To increase communication, Swan held

board meetings with Jeff Dunn the COO of Nickelodeon, the president of Nickelodeon and the managing
director of Nickelodeon International. In Swans absence, someone would need to attend these meetings
on behalf of the division. Lastly, Swan has initiated an extension of the network into Paraguay. The
added exposure will require additional attention from the interim leader. The team was also pursuing an
opportunity to reach the US-Hispanic market. Negotiations were in progress with Telemundo, the
Spanish-language channel in the United States. In order to successfully continue this project,
Nickelodeon needs a representative to finalize these negotiations. Due to the intensity of Swans role in
the organization, a decision must be made to appoint an interim leader to take Swans place.
Recommended Strategy
The recommended strategy is to appoint an interim leader from within the division. The company will
save time and money by implementing this solution. An internal provisional replacement has prior
knowledge and experience that is invaluable and will foster the group cohesiveness that has already been
created. An established employee has also instituted a credibility among members of the Nickelodeon
staff. Swan displayed a leadership style that strongly encourages open lines of communication and
collaboration which we have learned about from the reading, Use Power Effectively to Influence
People.
In the case it also notes that her management style of asking questions has rubbed off on her employees,
and it is recommended that they find an interim leader who will continue with this leadership style. Swan
has been very active in every aspect of her team and expects each member to work together to contribute
positively. Employees are encouraged to work on projects collectively and follow through on the
deliverables assigned to them. The interim replacement will share a similar leadership style where
employees from different fields bounce ideas off of one another to collectively solve problems as they
arise, which creates a comfortable work environment where employees are not afraid to throw out ideas
and critique one another.
Implementation/Action Plan
Taran Swan will appoint an interim leader. This solution will provide the most positive outcome in her
absence. Swan has hired and mentored a number of credible candidates to choose from which include
Valerie McCarty, Donna Friedman, Stephen Grieder and Sonia Schwarz to take on this role. Each of
these candidates has a different set of strengths (see Exhibit 7). The proposed action plan will evaluate
each of these employees to select the best candidate. Managing the team and possessing leadership skills
will be critically important for the individual who takes on this interim role.
There are 8 factors from the reading, Eight Ways to Build Collaborative Teams, that Taran Swan has
shown which lead to success that will be useful for her replacement to model: investing in signature
relationship practices, modeling collaborative behavior, creating a gift culture, ensuring the requisite
skills, supporting a strong sense of community, assigning team leaders that are both task-oriented and
relationship-oriented, building on heritage relationships and understanding the role clarity and task
ambiguity. Appointing a new person will bring a new dynamic and energy to the group. Clear
communication lines will be developed and maintained by identifying one leader. Swan will serve as a
mentor to the new leader which will allow her the personal rest that is needed in this important time.

Valerie McCarty will fulfill the position in Swans absence. McCarty is a Puerto Rican native and has
relocated to Miami which gives her direct access to the team to resolve any issues that require final say
from a decision maker. McCarty has high energy and enthusiasm and the staff responds well to her. She
also has strong interpersonal and technical skills. McCarty can be aggressive, which Swan prefers, and
always takes responsibility for her own and the teams results. She is a great team player and is growing
as a leader as a result of regularly stepping in for Swan when necessary. Through her involvement and
leadership, McCarty will distribute pertinent information to the Nickelodeon executives on a regular
basis. McCarty has proven herself in attitude and more importantly in terms of results which is why she
will be able to perform the necessary negotiations to the US-Hispanic market as well as the expansion in
Paraguay.
Expectation
McCartys main objective in the short term will be to keep the momentum going and minimize disruption
to work flow. Swan will rely on McCarty for daily/weekly accountability in the Miami office and
McCarty will address issues as they arise. Swan will act as a mentor remotely, but it will be McCartys
responsibility to ensure work flow and effective team collaboration. McCarty should be able to transition
into taking over most of Swans day to day responsibilities within 4 to 6 weeks. This timeline can be
reduced or extended based on her progress. McCarty will need to transition some of her previous work to
other team members. The most important challenge for McCarty will be the initial implementation of
Swans vision in Paraguay, the Telemundo negations, and to continue to focus on the teams vision for
the network. McCarty will develop from an interim leader to a permanent leader at Nickelodeon Latin
America should the need arise. The grooming of McCarty through a well-crafted transition plan should
be successful for Nickelodeon, each of the primary teams and for McCarty personally.