Problem Solution: Global Communications Global Communication (GO) is facing a significant challenge in maintaining its competitive while honoring the rights of all stakeholders. Handled improperly, a push to increase the bottom line can result in a worse financial situation simply due to organization behavior, To accomplish its goals, GO must not only keep the end state in mind, but also address the method by which goals are achieved. Communication between stakeholders is essential to provide a foundation of needs and resources GO has to work with.The effect of emotion on work product sakes it essential that options to outsource and other changes are fully explored for all costs. A consistent delivery to stakeholders, such as union representatives is necessary for a cohesive plan to form. Absence of these characteristics is a plan that will not succeed.
Describe the Situation Issue and Opportunity Identification Senior leadership has developed a two-pronged approach to address declining profits and rising operating costs by outsourcing technical positions While developing new product offerings and an aggressive marketing strategy.The initial reaction from both union and press is less than favorable and may end p being costly, in terms of legal action and public approval. Before GO moves forward with implementation, several issues needs to be addressed. First is whether outsourcing is the most effective approach O are their hidden costs that have not been evaluated, such as quality differences and protections afforded by the union contract.Second is to communicate that there is a need for technical expertise in the sales and product development areas, with GO being willing to subsidize the transition between pay scales and thus demonstrate a corporate commitment to workforce retention. Third, outside to senior leadership, it does not appear that stakeholders are involved in development of corporate policy, limiting the creativity that additional perspective can bring in developing a holistic solution.Fourth, GO does not have a systematic way of disseminating information to stakeholders Z] the patchwork nature of communication to now have left some stakeholders with an incorrect perspective of the situation and prevents their positive contribution to a goal-oriented strategy. Fifth, this “patchwork” approach extends to corporate decision-making, as initial handling f the new strategy seems disjointed; development of a ethics code that all employees and vendors are to practice daily should bring cohesiveness to the process and strengthen a comprehensive corporate vision.
Stakeholder Perspectives/Ethical Dilemmas This solution addresses many Of the ethical dilemmas identified in Table 2. Shareholders receive the benefit off reduced operating overhead while employees maintain employment. Union commitment is rewarded by the time management is willing to invest in finding an amenable solution.
Consumers can expect a consistent quality product. The only stakeholder ignored is the vendor, who is not a permanent stakeholder in the GO future. Frame the “Right” Problem GO will regain leadership of the telecoms industry by developing its customer base and using employee strength as a competitive advantage.Describe the “End-State” Vision A bright future for GO involves developing and practicing policy and skills that provide a competitive advantage. Success can be measured in our flexibility with staffing assignments to meet market demands, development of new product lines to capture a greater market share while meeting or exceeding rent quality standards, and implementation/practice of internal policies that continually strengthen organizational commitment at all stakeholder levels.Identity the Alternatives and Benchmarking Validation To stimulate new development and streamline decision-making, Kraft reduced its executive management team by and openly acknowledged its flaws and declared a path for the future with an internal memo, This was in response to lackluster performance and a tendency to bureaucracy (Thompson, 2006).
Although G’s declining performance is in a completely different industry, he same principle applies to both companies Z] a clear statement of what will happen followed by actions that back it up are necessary to make significant cultural changes.For GO to argue that decrease of operating costs is prompting the outsourcing. Then teams across the company must be subject to budget reductions. This strategy can be coupled with workflow analysis (see below). A second area for GO to examine in defining its corporate strategy is Where the company’s core competencies lie 0 is GO noted for their technical team or aggressive marketing strategies. At first glance, a call center does not have much n common with the telecoms industry.But at McKesson, the loss of several FEET positions stimulated employees to develop a cohesive plan to train coworkers and streamline workflow to allow for the consolidation of three groups (Levin, 2006).
This was accomplished by fully informing affected staff of upcoming changes and taking their input into consideration to develop/implement a solution. GO has a similar opportunity in front of them I] by including union and staff on the constraints of the current situation as well as available resources, employees themselves may be able to identity additional areas of savings while irking to retain the employee pool in a redistributed basis.As with McKesson, GO may tint that many strategies that emerge are ones that have been percolating in employees’ minds for some time. Regularly soliciting input from those on the floor can maintain vigilance for both employee and management to consider the impact of their daily duties on the overall company goals. Repeated incidents of constructive communication will strengthen relationships, as will continuing education opportunities. The DEAD regularly increases requirements for the testing for human blood products.Over time this has created a hardship for smaller blood centers that simply do not collect at a capacity that justifies expensive, specialized testing 0 one of those organizations was Upset Sound Blood Center (ESP.
). Instead of eliminating blood collection in the western Washington region, and risking the health of the community through its blood supply or outsourcing the testing portion, ESP. went in the opposite direction to expand services.The nonprofit organization now tests three times its own collection volume by becoming the institution that Other blood centers outsource to. This has allowed it to remain a leader in the industry by maintaining a close eye on quality, fulfilling its mandate to ensure a safe and timely local blood supply, keeping patient costs down, and providing job stability and opportunities for growth. What this benchmark demonstrates is the successful coupling of expenses with revenue.
Instead of arbitrarily eliminating a costly arm of the company, GO may be in the situation to provide technical services for other companies, An examination of the workflow within the technical team should generate changes that results in increased productivity. For example, in addition o alliances to sell internet access, it may be that GO Gang take over some/all of the technical support for that other company or even provide a greater level of tech support for small and mid-sized business clients. Dublin City Council chose not to outsource. Ewing completely open with the union and challenging employees to perform at a level meeting or exceeding outsourcing alternatives, both parties reaped the benefit of improved stakeholder relations (People Management, 2006), This scenario is remarkably akin to what is happening at GO D the possibility of destroying a relationship with a major stakeholder that will still have true interaction. To simply copy Dublin City Council’s challenge to the GO union members is a NC;-lose situation for the company.
Fifth union is successful, GO- union relations will experience a huge boost in trust, plus the financial savings Of having lower-cost operation. If the union fails, there is a certain increase in trust simply because there was the opportunity to retain jobs [I GO still benefits from lower operating costs. Evaluate the Alternatives The goals ranked highest were to develop a comprehensive vision strategy for the company that includes all stakeholders and develop clear communication teen stakeholders.While these do not immediately produce returns in terms of reduced expenses, increased productivity and growth opportunities, they form a foundation for lesser-ranked goals.
The process of involving stakeholders to develop corporate strategy will provide the initial focus in getting communication to flow between the various groups involved. Once this foundation is laid, it can he expanded to encompass the entire accompany why repeating the same techniques tort future issues. Over time, this initial process will be a time and money saving investment of effort.Narrowed List of Alternatives The best alternative is a multifaceted one which addresses the immediate need for reduction in operating costs coupled with increased marketing with long term goals of strengthening policy and skills that will allow GO to succeed. By opening discussions with representative of major stakeholders to clearly delineate the specific near and long-term goals of GO, the company will consolidate its corporate strategy while opening the lines of communication and creating interdependence between disparate groups.
Further coupling this with workflow analysis and a challenge to employees to generate savings equal to that which loud be achieved by outsourcing strengthens this relationship by encouraging creativity and demonstrating organizational commitment to employees. Additionally, opening new positions to qualified personnel first with a retention bonus Will show that management is taking the first Step to move towards a successful resolution of the challenge. A second alternative would be to go forward with outsourcing options while simultaneously pursing the development and analysis tracks listed above.This option has the added benefit of producing immediate results in reducing operating costs, with less effective team-building exults. Identify and Asses Risks Because the best alternative has many components, there are multiple areas can fail. First is that GO simply Cannot meet the reduction that it is striving for. While the solution has built in mitigation against this (streamlined workflow analysis, and opportunities offered in sales) the delay can create a situation where finding a vendor has become more expensive.As an additional mitigation step, GO can set deadlines for identifying and implementing the new cost cutting strategy.
Dublin City Council experienced negotiations of 6 months (People Management, 20061 Outsourcing has its risks as well, with costs beyond the negotiated contract price creeping in C transition, administration, and quality of service (Kelley & Jude, 2005). Mitigation tactics include negotiating a limit on cost overruns and risk sharing (Hunter, 2006). Make the Decision Senior management has already set the overall goal Of reducing operating costs in technical by 40% and increasing product offerings.
Ultimately this increases profit margins by expanding the difference between revenue and expenditures for a positive cash flow. In order to know what to eliminate for the targeted deduction, decision. Makers must have a working knowledge of what is involved in workflow and opportunities to consolidate common tasks.
Instead of taking the time to educate senior management at the daily operation level, it is much more efficient to empower workers to make the decision themselves. For employees to reach the targeted 40% decrease in operating costs requires identification to redundancies and opportunities for consolidation.This requires team members performing different tensions to work cohesively to understand how their duties fit with the overall team work-product. In order for this teamwork to function smoothly, individuals must have essential communication skills.
Much of the education process and team-building can be consolidated into the same sessions. As individuals educate coworkers of the various aspects of their job, this is an opportunity to observe and develop relationships that facilitate the later decision-making sessions.Additionally, streamlining workflow needs to take into account future needs of the company’s development, or face the risk of eliminating necessary functions. This requires an initial step of unifying the company’s vision. While the development of a shared vision can be performed at the senior or upper management levels, the importance is to include viewpoints of different stakeholders. Also, as more opening are filled in the sales end, there will be feedback of what resources are needed for their future success.The order in Which these facets Of the solution should be implemented is: define vision, workflow analysis/team building, streamline workflow, evaluate whether targets reached. An expanded understanding Of the work in Other company areas creates a situation where employees and teams can adjust their own actions to fit the needs of others or identify when processes need to be changed Z] increased flexibility to a rapidly changing market, Knowing what areas are most/least efficient can also provide future targets for development.
Working in a team environment with limited redundancies requires coordination and communication to be successful.Develop and Implement the Solution Communication has consistently been cited as necessity in implementing change, coupled with a “soft” influence from team leaders (Douglas, Martin, & Crapper, 2006). For this reason, team building exercises should be started immediately and be a continuous process as new members arrive through attrition.
Beyond communication, successful change and continued flexibility is successfully managed through using common process models across the organization that can be specialized for local needs (Wallace, 2006)_ Throughout the process GO will be analyzing and consolidating processes at a company-wide level.Additionally creating employee ownership of new policies and changes are an effective way to elicit quality performance (Bridge, 2006). At every step of the way at GO employees are taking on leadership responsibility. Additionally, empowering employees for ownership, autonomy and creativity are additional ways to encourage success (Exalted et al, 2006).
Evaluate the Results To determine flexibility of staffing, the metric chosen is competence in an addition job area. Competence is a relatively high criterion for flexibility, but the goal is to he able to embroiled additional workers at short notice.For every one worker who is competent, they should be able to supervise an additional employee who has yet to reach such a high level of performance, which is why the target of 25% is chosen. Additionally, since tasks in a secondary area are to performed as often, limiting the pool of cross-trained employees is one way to ensure employees maintain current skills.
The limitation to using this metric is that this prepares the company for increased workload in different areas at different times (such as covering for vacationing or sick employees), but not for instances when the entire organization faces an increased workload.Increased product lines were set at a target of two for success. However, due to the continuous nature of the solution process, the successful delivery of two new product lines is really a measure that the process is functional. Measuring organizational commitment is essential for the future of C.V. especially in the face of this belt-tightening. GO is asking employees to perform at a higher level with less financial resources.
To move from disgruntled employees to a satisfaction rating is a big change. Moving beyond that number will limit the attrition and potentially discourage creativity.