Case Analysis: Robert Mondavi and The Wine Industry
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In addition, leaders are responsible for ensuring the following during the change process:
- Old ideals and processes must be tossed aside so that new ones may be learned - a difficult process in light of the power of habits. During this part of the process, leaders are required to provide just a little bit of coaching as they are unlearning, not learning and a lot of cheer leading (emotional support) to break the old habits.
- The steps to the new behaviors are learned by practicing them. Although there will be confusion, overload, and despair, there will also be hope, discovery, and excitement. This period requires a lot of coaching as employees are learning to navigate through the new processes.
- The new processes are now intellectually and emotionally accepted. What has been learned is now actually being practiced on the job. Leaders are required to reinforce the new behaviors.
This company was once a legend in its industry and in the world of business. Robert Mondavi began making wine in the Napa Valley in 1943. In 1966, he launched the Robert Mondavi Corporation with a goal of producing wines that would rival the best in Europe. His winery became a huge success. He gave legitimacy to American wines (and then to all “New World” wines) and he brought great wealth to his family.
In 2001, the 88-year-old finally stepped down as Chairman and handed the business over to his sons. A few years later, over Robert’s loud objections, Constellation Brands bought the business for US $1.36 billion.
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