1. About Company Parent Company – Konigsbrau A. G., a Munic based brewer of premium beer Sales of 10.3 bn Euros - Reputation of a well managed & most profitable brewer in the world Brand – High recognition & prestige Konigsbrau – TAK A. E., Ukranian subsidiary founded 12 yrs back Premium Beer manufacturing Managed by Vladimir Antonov (Ukranian partner) for most part Antonov, currently chairman (After stake buyout) From three years, Wolf Keller, MD Before turnaround - Loss of €2.9M on sales of €116M Distribution Network: Manufacturer – Distributor – Consumer Liquor business revolves around personal relationships Commercial strategy of strengthening distribution & heavy customer support & service

2. Wolfgang Keller Young (34 Yrs) Harvard Graduate High growth career, many turnaround successes & reputation of a succesfull hand on manager - Charismatic leader 2 turnarounds in 1stjob - Business based on interpersonal relationships Joined as MD @ Konigsbrau TAK – turnaround in 3 yrs Leadership Style Leads by example Hands-on Believes in personal relations with both employees and customers Lacks delegation skills Other Traits Recognizes and admits his own mistakes. Makes effort to improve Honest @ work, Analytical, Considerate Goes beyond the call of duty Intuitive decision making Bright future prospects (Vorstand) Care less for Organizational processes and believe in ad-hoc approach for a quick result

3. Dmitri Brodsky Highly experienced, intellectual, analytical & matured individual Joined as Commercial Director @ Konigsbrau TAK Leadership Style Delegation and empowering subordinates Hands-off, very formal Does not believe in personal relations with both employees and customers Rule book man, does not lead by example, does not go beyond the call of duty Other Traits Takes time to admits his own mistakes. Makes effort to improve Excellent analytical skills Good organization skills Conflict in management style with his boss, Keller

4. Keller’s Initial Views on Brodsky Too slow in action Cannot handle tight deadlines (Change of brand & formula) Formal, impersonal and distant management style Hands-off style of operation Konigsbrau Annual Distributor Meeting Collection of debts Resolution of Law suit Lack of pro-activeness - Lack of judgment and ability (In-flight seating arrangement) Inter-personal relationships with subordinate (Zelenko issue)

5. Brodsky’s Views on Keller Too intrusive in other departments activities Do not appreciate his boss involvement with his junior or distribution network

6. Problems First appraisal Explosive meeting “Low leadership & no personality ..” changed “Sufficient” to “good” Brodsky’s memorandum to be attached to the appraisal

7. Problems … Second appraisal Keller sent a letter instead of the actual form Delay due to 2 reasons; time for review & impressed by work done during budget Explosive reaction over evaluation “sufficient” ‘not a leader’ vs ‘not a charismatic leader’

8. Decision points Antonov gunning for Brodsky’s head Qualified replacement difficult to find Options Fire Brodsky or don’t give a pay hike. HO backlash Another chance & Performance improvement plan Reorganize around Brodsy (e.g. split marketing & sales) Fire or not to fire Not to fire: clear improvement plan required + amount of increment due to inflation

9. Development during the period Keller was sent on a 2 month assignment to Brazil and was not supposed to contact office. Had leaves before and after the trip as well Company functioned well in his absence Brodsky had performed well & improved relations with peers Prep work for new product launch was well managed Zelenko problem still remained Antonov still displeased with Brodsky Two members of the vorstand, Dr. Haussler & his assistant, Mr. Von Hess, were expected the next day for budget approval

10. The Boss meeting Antonov appeared detached, Keller & Brodsky managed the meeting Agenda: Loss of volume at the odessa brewery Measures to counter shortfall in profits Complaints, little explanation of drop in sales & deviation from 5 yr plan Von Hess revealed about Antonov’s call in Keller’s absence

11. Keller’s Eye Opener May discussion with Hess People looking for opportunity to nail Keller Difference in situations & ‘back in safe waters …’ analogy Keller’s attitude of bypassing processes Working ‘within the system’ to grow at Konigsbrau Learn to work in teams, collaborate & delegate Actions; ‘In-box’ to remind to go slow & to do PR activities

12. Brodsky issue 16 % pay hike (sufficient to offset previous yr) More trust in capabilities after Brazil trip Brodsky having difficulty maintaining respect & confidence of staff & sales force Stress affecting health (three-day distributors’ seminar)

13. Keller’s efforts Retain Brodsky & make best use of his potential Decided to address all surrounding issues in an official appraisal

14. Shock !! Keller found out that Brodsky was looking for a new job