Problem Solution: InterClean, Inc.
University of Phoenix
MMPBL 530 – Human Capital Development
June 28, 2010
Problem Solution: InterClean, Inc.
Getting rid of grime and slime is not the main emphasis in the evolving cleaning and sanitation industry. InterClean, Inc., has recognized this fact and is adjusting to market demand of – not just products – but solutions and services that streamline cleaning efforts to adhere to strict government-mandated environmental safety guidelines (UOP, 2010). As a leader in industrial cleaning and sanitation for more than 15 years, CEO and President David Spencer, has proposed change to the organizational strategy of the company to stay ahead of the competition and has devised a plan to transition from a product/sales model to a solution/service model to enable InterClean to not only be an industry leader but to be No. 1 overall with domestic market dominance (UOP, 2010). He believes to achieve this goal the company will have to reorganize its sales force into multi-functional teams trained in product knowledge to offer a service package for customers that best suits their diverse needs. The acquisition of EnviroTech, Inc. – a market competitor and company with service expertise ??“ supports the new focus to implement the solution/service model but has additionally resulted in challenges within the company that need to be overcome if the merger is to be successful. Human resources (HR) attempted an alignment on the fundamental belief that employees are major assets but getting the employees to see themselves that way with the proposed changes isn??™t easy as employees have been overheard talking in terms of ???pre-bunker mentality: Us against them??? (UOP, 2010).
This paper will look into the issues and opportunities, stakeholder perspectives/ethical dilemmas, and establish a problem statement for InterClean. An end state vision, along with alternative solutions, an analysis of alternative solutions, risk assessment and mitigation techniques will be provided. The optimal solution, implementation plan, and evaluation of results along with corresponding tables will culminate with a conclusion for InterClean??™s scenario as it moves forward with a new business model.
Issue and Opportunity Identification
InterClean is transitioning from its product/sales model to a solution/service model and has recently acquired EnviroTech, which has 50 employees and a reputation of expertise that is being interpreted as threatening to the 45 employees of InterClean. Furthermore, adding to the distress is the roll-out of the new business model being pushed to be completed within 90-180 days. The short deadline to design, market, and implement the new strategy is also making employees feel unsettled about their future and direction of the company. The employees are resisting the change and lack confidence in the company??™s ability to implement such a major shift in how it does business. Overall, the company has poor employee morale, which potentially could increase employee turnover (UOP, 2010).
Internally, CEO David Spencer has also identified four major issues needing to be addressed for the merger to become a prospector firm: ???Prospectors attempt to be the first to market with new products and services. These firms rely on innovation, flexibility, and speed. They exploit new market and product opportunities,??? (Dreher & Dougherty, 2001, p. 103). Those issues Spencer noted following an executive meeting are:
1) Employee morale is currently low and management is concerned about employees will perceive the staffing audit and follow-up.
(2).The executives are determined to proceed in transforming InterCleans workforce in whatever way necessary to achieve the CEOs ambitious long range goals.
(3) There is some unstated mistrust of Janet Durham, who is seen by other executives as a defender of the status quo and loyal to long-time employees.
(4) To meet staffing plan expectations, we must:
??? Inventory the skills of the current sales force, and identify skills and competency levels needed for the new sales direction. Determine which gaps need to be filled with new hires.
??? Establish optimal size and composition of the sales force.
??? Project estimated training and development costs.
??? Develop a staffing audit process, and identify phases of execution (UOP, 2010).
To address these issues, the HR department has been charged with assessing the workforce of InterClean and EnviroTech to develop a training strategy that will discern employee placement into teams that will be capable of applying principles from an education/training that facilitates the understanding of legal, environmental, safety, ethical and regulatory issues that affect sanitation and cleaning in varied industries and settings. They??™ll also need to develop customized packages of cleaning solutions and systems (UOP, 2010).
HR??™s assessment poses the most significant opportunity for InterClean as it can reinforce the new business model and strategies used by communicating the vision readily to improve employee perspective, InterClean??™s brand image, and help foster a stronger relationship with its clientele. Another opportunity HR systems can facilitate with proper training of the workforce is how the solutions of services will appeal to new customers, which in turn will increase the customer base. By providing diverse products and professional service solutions, InterClean??™s clients will not be persuaded by competitors. Clients will find all their cleaning, safety, and sanitation products and solutions at InterClean, enabling the company to increase its profitability. With increased revenues comes the financial ability to offer a more competitive compensation and benefits package to retain existing employees and attract potential workers that possess the knowledge and skills needed (UOP, 2010).
The place InterClean??™s HR department can begin is by analyzing the employee inventories of InterClean and EnviroTech. By evaluating the longevity, skills, talents, experience, and knowledge of the workforce, HR can capitalize on the various genders, race, religions, and different skill sets, experience, and knowledge used in sales techniques and technology. InterClean will then be able to use the new techniques and technologies to improve its operations, enhance efficiency, and generate higher revenues.
InterClean has acknowledged the issues it is facing and now must capture the opportunities to launch it towards success. From the leadership team to the frontline employees, the people at InterClean must be onboard with the strategy that reorganizes the sales force to offer packages that goes beyond products and presents solutions to keep businesses germ-free and in compliance with federal regulations.
Stakeholder Perspectives/Ethical Dilemmas
There are essentially three stakeholder groups invested in InterClean – the management team, employees, and customers. Each of these groups possesses responsibilities that must be upheld. The leadership team is responsible for ensuring the company??™s success by careful implementation of strategic plans, ensuring efficiency in operations, reduced operating and unnecessary expenses, and improving profitability. Management owns the right to make decisions the team believes to be most beneficial to the organization. In InterClean??™s situation, the CEO makes the final determination on what is best for the company. CEO David Spencer believes the sales model conversion will benefit the company the most by increasing the customer base, improving employee retention, and ultimately increasing the company??™s sales.
Employees have the right to work in an environment that is safe and rid of any type of discrimination or harassment of any kind. Employees seek job satisfaction, wages that are commensurate to their responsibilities and experience, tools and training that will allow them to perform their jobs efficiently. InterClean needs the support of its employees in developing, preparing, and executing the company??™s strategic plans, supporting daily operations, and providing exceptional service to clients.
Lastly, customers have the right to honest and fair dealings with InterClean. These customers choose to work with InterClean, trusting the company to provide them with safe and effective cleaning products and professional services. Consequently, customers also have the right to get professional services and advice from InterClean in compliance with all safety and environmental regulations and requirements.
More specifically within the make-up of InterClean is the ultimate responsibility of CEO David Spencer, who inherited the business from his father at the age of 47. Of course, he is personally and financially committed to perpetuate the company??™s presence in the cleaning and sanitation industry with growth from innovation and cutting edge technology that allows the company to offer top quality products and services. However, his desires to change the company??™s sales and corporate strategy within 80-190 days may be unrealistic, especially considering he did not perform a thorough analysis of the new sales strategy, the timing of the sales strategy, and acquisition of EnviroTech. He did not even consult with members of his leadership team prior to making the decision that radically changes how the company operates (UOP, 2010). While that may be professionally acceptable, it isn??™t necessarily morally or ethically correct.
Another ethical concern is Vice President of Human Resources Janet Durham??™s opinion that is not being perceived as fully supportive of the organizational changes, which may hinder the InterClean??™s transition and ultimate progress. Durham, originally hired as a sales representative 15 years ago, has taken on progressive responsibilities and positions within the organization. Her opposition, albeit not vocal or outwardly apparent, may be influenced by her strong ties to several sales representatives. This creates an ethical dilemma as Durham??™s decisions may be impacted by what she believes to be right for the sales department and not for the organization. Durham??™s decisions and recommendations for compensation, terminations, and promotions may be impacted by her friendship and loyalty to her friends in the sales department. Furthermore, the policies and procedures she designs for the organization may not be consistently developed and enforced within the organization (UOP, 2010).
Durham is not the only member of management with an ethical dilemma. Chief of Compliance Sam Waters sees an opportunity to increase his staff and his departmental budget. With regulatory compliance being a major factor in the company??™s successful implementation of the new strategy and maintaining operations, Waters uses these reasons to request additional personnel in his department and as a result, higher compensation and benefits budget for his staff. Couple that with Waters??™ request to directly report Spencer and speculation and mistrust is surely to arise as his colleagues question his motives, including whether he is more concerned for his own personal career advancement rather than the company??™s success.
Tom Jennings, InterClean??™s Vice President of Marketing, may have some ethical dilemmas as well. His main objective is to create an effective marketing strategy for the organization, which would lead to global expansion and recognition. Jennings is not in favor of any organizational restructuring and views it as an obstacle; however, Jennings is willing to compromise and work with the organization during the restructuring process so that he can resume his work on InterClean??™s global expansion. This creates an ethical dilemma since Jennings may be agreeing with management on restructuring for the sake of continuing his own projects and may not be fully considering the negative and positive effects of the reorganization. Although Jennings may be opposed to reorganization, he would agree to it so that he can work on his personal agenda.
Eric Borden, Ving Hsu, and Terry Garcia, all senior sales representatives of the newly acquired EnviroTech Corporation, may also experience some ethical dilemmas. Based on Garcia??™s correspondence with Borden and Hsu, the three former EnviroTech senior sales specialists may be expecting some type of immediate career advancement within InterClean. If Spencer and his current leadership team do not grant Borden, Garcia, and Hsu any promotion, or increased responsibility, the three may not cooperate or fully contribute to InterClean??™s initiatives, hampering the company??™s efforts to grow (UOP, 2010).
EnviroTech??™s CEO Sally Lindley??™s political and business aspirations may influence her decisions relating to EnviroTech and InterClean. Lindley has some powerful allies in both national and state levels. Lindley may oppose any recommendations from Spencer and his leadership team if these recommendations do not provide political, monetary, or some other type of gain for Lindley. Furthermore, Lindley??™s political ties may create a situation wherein Lindley would be forced to make decisions against her will to maintain positive relationship with her political acquaintances (UOP, 2010).
Despite the ethical dilemmas of stakeholders, InterClean is an established organization that has been in operation for more than 15 years (UOP, 2010). To adjust with the imposed governmental safety and environmental regulations, the company has an opportunity to expand its services beyond selling products and offer turn-key solutions to customers??™ industrial cleaning needs. The company??™s financial viability will be sustained by becoming a leader in the institutional and industrial cleaning and sanitation industry by implementing an all inclusive solutions/service model successfully.
InterClean is a household name as being the leader in the $8 billion institutional and industrial cleaning and sanitation industry. It is also well-known as a successful prospector firm for being the first to implement an all-inclusive solutions/service model. The employee morale is high with an extremely knowledgeable sales force that is an expert in compliance issues, solutions, and services. The sales force also engages clients with the utmost of professionalism in customer service that has an effective audit process to gauge sales progress and customer satisfaction.
InterClean CEO David Spencer??™s vision of changing from a product/sales model to an all inclusive solutions/service model has some issues to be resolved to continue its plight to expand its products and services, which would satisfy the needs of its existing customers and attract new clientele. The new business model and expanded line would help accomplish the following:
??? Leverage the company to a prospector firm to lead the industrial cleaning and sanitation industry.
??? Increase the company??™s customer base by retaining its workforce and attracting new clientele.
??? Increase sales and profitability by 40 percent.
??? Expand services globally.
InterClean should be able to provide training on the different markets the company serves to minimize conflict, lack of unity, and lack of trust within the workforce and apparent at the management level. Management should address such differences in a professional manner and make a final decision about major changes before the decision is communicated to all employees. The company should aim for building a more unified leadership team and workforce. According to McShane and Von Glinow, the following are some of the goals or practices that must be instilled in the members of InterClean??™s senior staff:
??? Provide a work environment conducive for growth and achievement of organizational objectives.
??? Define the objectives of the company and that of the sales force.
??? Develop a strategy to achieve goals.
??? Motivate employees to achieve their full potential.
??? Define the roles and responsibilities of every employee (McShane & Von Glinow, 2004).
The successful acquisition of EnviroTech, with the operational strategies of InterClean, is the final element to meet the End-Sate Vision. InterClean will immediately benefit from the products offered by the acquired competitor company. These products, and their associated customers, will add to InterClean??™s bottom line. The greatest benefit for InterClean, however, is the human capital being acquired with EnviroTech. This group brings a vast amount of knowledge InterClean currently does not have. InterClean must identify the best talent within EnviroTech to ensure they are kept and developed within InterClean??™s organizational structure (UOP, 2010).
Analysis of Alternative Solutions
Training received a relative rating of 3.36 as an alternate solution because it fails in supporting the third End-State Goal, which is the successful merger of InterClean and EnviroTech. Once the merger occurs training becomes critical for the entire organization, but it must be noted that ongoing training is the lifeblood of any organization, so it remains important indefinitely, not only because two organizations are merging.
Communication received a weighting of 4.43 because it most readily supports all three goals. Communicating the need to transition to the new corporate sales strategy must be conveyed to achieve ???buy-in.??? People have to know the ???whys??? behind what they are doing. Communication is also key in improving morale and retaining employees. Once again, employees want to feel part of what is going on within the company, and if they do not know what is going on, they will ???make it up.??? Lastly, during any significant change, the employees want to be ???in the loop.??? The merging of companies is about as significant a change as there can be. Understanding how everything fits together is crucial for the well-being of the employees of both companies.
Finally, policy/procedure implementation received a weighting of 2.57 because, once again, it does not fully support all three goals. Procedure and policies will become more important for the combined organization once the merger occurs, but does little for InterClean in its current state. Any policies and procedures written during this time will be in support of, and not implementation of, the current goals.
Offering employees bonuses for learning and implementing the new system was another alternative. Giving employees incentive pay which happens ???If employees are expected to behave in extraordinary ways and add value to the firm, sharing that gain with employees meets most definitions of workplace justice and fairness,??? (Dreher & Dougherty, 2001, p. 6) was not a good option. This alternative could cause employees to rush, only thinking about the money and not the betterment of the company.
Risk Assessment and Mitigation Techniques
Employee involvement is not the most effective solution to take when dealing with deadlines. It happens when, ???employees feel that they are part of the organization when they make decisions that guide the organization??™s future,??? (McShane & Von Glinow, 2004, p. 128). This strategy runs a high risk of not developing an optimal size and composition of sales force and not meeting the 90 to 180 day deadline. If an optimal size is not developed, InterClean may still have to downsize, and if the deadline is not met, the company may not be the front runner in the institutional and industrial cleaning and sanitation industry with the new solutions/service model. These consequences will not be severe but InterClean can offer retirement packages and continue to try to implement the new strategy. The later risk assessment narrows choices because InterClean is on a six month deadline and extending the time to implement the all inclusive solutions/service model is not an option.
Offering bonuses for learning and implementing the new system is always an effective idea but the sales force may still not be fully trained on compliance issues. This could cause them to be fined and this could be very severe. If this happens it would be best to hire outside consultants. Offering bonuses will not help to develop a staffing audit process and identify phases of execution. The consequence for this is severe because progress will not be able to be measured. The mitigation technique is to develop a strategy to gauge this process.
InterClean CEO David Spencer wants to implement an all inclusive solution/service model. The optimal solution for InterClean is to hire executive coaches/outside consultants. Executive coaches are experts in leadership, organizational development and teambuilding. They coach their clients on how to take responsibility for their own development, how to interact successfully with colleagues of all levels and implement training strategies (???Research: Executive Coaching Can Significantly Improve Finances,??? 2006). Spencer only saw the upside to the merger. He never thought it would affect the employee morale. All the goals in the alternative solution evaluation matrix can be accomplish if coaches/consultants are hired.
The biggest problem that InterClean has is training the employees on the sales team. Having consultants will help the state of InterClean. This is how the senior team at Georgia-Pacific (GP) handled its situation when it acquired Fort James Corporation. This acquisition brought GP tremendous growth but forced the company to consolidate and improve business practices, processes and applications (DACG, 2002). GP like InterClean had to implement a new system while overcoming training challenges. GPs senior team hired DA Consulting Group Inc. DACG had worked with GP on three previous occasions and succeeded each time. DACG completed the entire upgrade in nine weeks which was the time allowed. InterClean can do what GP did and hire consultants to handle its training and system integration.
InterClean is planning to implement new strategies within 80 to190 days. CEO David Spencer has chosen to achieve this, in part, by hiring outside consultant Carol Stanley. She will be charged with conducting a skills inventory in preparation for InterCleans launch of solutions-based selling. Marketing Vice President Tom Jennings recommended Stanley for the assignment, and she will report to Vice President of Human Resources Janet Durham. Once this happens, and the inventory complete, employee moral should go up immediately as the workforce learns their jobs will not be in jeopardy. That will enable focus towards the 90 to 180 day goal to implement the new strategy and train the sales force on compliance issues (UOP, 2010).
Spencer, assisted by the consultants and HR department, will be responsible for implementing the new strategy. Chief of Compliance Sam Waters will be responsible for training the sales force on compliance issues. In this same 90 to 180 days, Stanely and Durham will be responsible for establishing the optimal size and composition of the sales force that will be placed in multi-function teams. Organizational commitment and instrumental cohesiveness is what InterClean will gain through the process. The employees of InterClean will develop a high resilience to change and be more open to what it will bring. Having a high resilience to change will result in employee buy-in to the new model and they will adapt towards the change (Kinicki & Kreitner, 2004). Lastly, Stanley will have just under a year to develop a staffing audit process and identify phases of execution that may need to be tweaked to ensure company success.
Evaluation of Results
The proposal??™s success for each end-state goal will be measured by actual quantitative results. Establishing a successful solution/service model can be measured by rankings in the sanitation industry. InterClean??™s target is to rank first – No. 1 – at the end of the year. The only challenge is to continue being a successful prospector firm. InterClean employees, having high morale will be measured by employee retention, losing no more than two workers annually as an attainable goal. Competitors paying more for their expertise and retirement are the only major challenges. InterClean??™s sales team being efficient with compliance issue will be measured by the number of fines the company receive. The goal is to have no fines at the end of each year. The only challenge is becoming comfortable and not keeping up with new compliance regulations. This information allows InterClean leaders to know if the merger and implementation of an all inclusive solutions/service model is successful.
InterClean CEO David Spencer has made the decision to implement organizational changes to leverage the company as a prospector firm and lead the $8 billion industrial cleaning and sanitation industry. InterClean was already a successful company yet Spencer aspires to take the company to a new level by offering turn-key solutions and services that go above and beyond mere sales of products. Though the company is experiencing excessive employee turnover, and dissention amongst some of the management team, it has a great opportunity to remain viable by balancing the pressures that have resulted in merging with EnviroTech, and acquiring its expertise, knowledge, and process of operation. InterClean must capitalize on the opportunities to develop End-State Goals to guide its organization towards becoming a prospector firm. Once defined, these goals may be used to develop strategies and the outcome measurements needed to assess success. If conducted properly, InterClean will have positioned itself to achieve its short and long-term goals.
DACG. (2002). Case Study: Georgia-Pacific. Retrieved May 1, 2008, from www.dacg. com/we
Dreher, G., & Dougherty, T. W. (2001). Human Resource Strategy: A behavioral perspective for the general manager. [University of Phoenix Custom Edition e-Text]. , New York: McGraw-Hill. Retrieved June 28, 2010, from University of Phoenix, rEsource, ecampus.phoenix.edu.
Kinicki, A., & Kreitner, R. (2004). Organizational behavior. [University of Phoenix Custom Edition e-Text]. , New York: McGraw-Hill. Retrieved June 28, 2010, from University of Phoenix, rEsource, ecampus.phoenix.edu.
McShane, S. L., & Von Glinow, M. A. (2005). Organizational behavior. [University of Phoenix Custom Edition e-Text]. , New York: McGraw-Hill. Retrieved June 28, 2010, from University of Phoenix, rEsource, ecampus.phoenix.edu.
Research: Executive Coaching Can Significantly Improve Finances. (2006, March 17). Corporate Training & Development Advisor, Retrieved April 9, 2008, from Academic Search Premier database.
University of Phoenix. (2010). Scenario: InterClean, Inc. Retrieved June 28, 2010, from University of Phoenix, rEsource. MBA/530 ??“ Human Capital Development website.
Issue and Opportunity Identification
|Issue |Opportunity |Reference to Specific |Concept |
| | |Course Concept | |
| | |(Include citation) | |
|The employees of InterClean are disturbed by the|If open and honest |Authors McShane & Von Glinow |Organizational |
|ineffective communication amongst senior level |communication were present at |suggests, ???organizational |Communication |
|management and non-management employees with |all times amongst InterClean |communication refers to the | |
|regard to the projected changes. For example, |management and employees, CEO, |process by which information | |
|employee 1 as it relates to the scenario, |David Spencer will be able to |is transmitted and understood | |
|???overheard Jim in Marketing Support say that if |launch the new vision with |between two or more people??? | |
|InterClean wants to sell sanitation services to |???cooperation and teamwork??? that|(McShane & Von Glinow, 2005, | |
|hotels and convention centers, all the staff |exudes effective communication |p.2) | |
|will higher sales quotas each month and rumor |(UOP, 2010). | | |
|has it there will be a lot of new hires??? (UOP, | | | |
|2010). | | | |
|InterClean, Incorporated realizes the importance|By assessing each employees |?????¦Training encompasses the |Training and Development |
|of training and development as they progress |skill set and ability, |knowledge, skill and ability | |
|toward becoming ???major player on the sanitation |InterClean will be able to |categories that 1) have been | |
|scene, future profitability hinges on fulfilling|identify the needed |identified as being critical | |
|this emerging need??? (UOP, 2010). |improvements to make certain |to successful job performance,| |
| |the organization is compliant |and 2) are possessed at | |
| |as it relates to |below-acceptable level of | |
| |solutions-based selling market |skill can be demonstrated??? | |
| | |(Dreher & Dougherty, 2001, ch.| |
| | |6, p. 2). | |
|The emotions amongst the employees are high due |HR department will need to |???Emotional intelligence is the|Emotional Intelligence |
|to the recent announcement made regarding an |alter InterClean??™s business |ability to perceive and | |
|organizational change. The HR staff are charged |practices that encompass the |express emotions, assimilate | |
|with the responsibility of ???screening new sales |new and existing employees??™ |emotion in thought, understand| |
|hires for the appropriate background and skill |skill sets. By doing so, the HR|and reason with emotion, and | |
|sets that will ease the transition and the |department will have created a |regulate emotion in oneself | |
|existing sales staff will feel less threatened |winning environment that aligns|and others??? (McShane & Von | |
|by the needed internal change??? (UOP, 2010). |with the new vision. |Glinow, 2005, p.6). | |
|The water cooler conversation on amongst |To create a smooth transition |???A set of behaviors with which|Job Withdrawal |
|InterClean employees uncovered his or her |surrounding the needed changes,|employees try to avoid the | |
|thoughts and opinions of the organization |InterClean management team will|work situation physically, | |
|change. For example, the employees overheard |need to be forthright in the |mentally, or emotionally??? | |
|rumors from of, ???higher sales quotas, |upcoming changes to encourage |(Noe, et al., 2003, chap. 2, | |
|ineffective new client tracking, and voluntary |employee participation that |p. 7) | |
|resignation??? (UOP, 2010). |will eliminate job withdrawal | | |
| | | | |
|Stakeholder Perspectives |
| | |
|Stakeholder Groups |The Interests, Rights, and |
| |Values of Each Group |
|CEO and President David Spencer |At age 47, David inherited InterClean from his father, who was responsible|
| |for the company??™s early corporate accomplishments. A successful |
| |businessman himself, David is driven to make InterClean an industry |
| |leader. He is ambitious, competitive and willing to take risks in order to|
| |grow the business and expand into new markets. |
|Vice President of Human Resources Janet Durham |Janet began as a sales representative with InterClean 15 years ago, when |
| |she was 40 years old. Though she??™s worked her way up to her current |
| |position, she still has strong ties to many sales force members. She is |
| |pragmatic and very interested in using technology to automate the HR |
| |function. |
|Vice President of Marketing Tom Jennings |David Spencer recruited Jennings to lead this new department just a year |
| |ago, when Jennings was 62. Tom??™s expertise lies in strategic systems |
| |planning and he??™d like to move InterClean rapidly into strategic dominance|
| |in its industry. Tom views the current corporate restructuring as a |
| |obstacle to his goal, but a necessary evil that requires his short-term |
| |attention. It??™s his desire to move quickly, so that he can continue his |
| |plans for global expansion. |
|Chief of Compliance Sam Waters |Sam has been with InterClean for two years, and holds a law degree. |
|CEO of EnviroTech Sally Lindley |Forty-nine-year-old Sally is interested in developing some joint ventures |
| |with other firms in the cleaning industry in order to optimally leverage |
| |her future power. Politically active, she is well-connected to key state |
| |and national elected officials in Florida. |
|Eric Borden, Ving Hsu, and Terry Garcia, Senior Sales |Veteran employees with a combined 30 years at EnviroTech, Borden, Hsu and |
|Specialists at EnviroTech |Garcia anticipate playing key roles in EnviroTech after it??™s acquired by |
| |InterClean. In fact, they expect to be named the sales and marketing |
| |leadership team for the new company. |
Analysis of Alternative Solutions
NOTE: My computer does not recognize this format so I was unable to change the table.
Risk Assessment and Mitigation Techniques
|Risk Assessment and Mitigation Techniques |
|Alternative Solution |Risks and Probability |Consequence and Severity |Mitigation Techniques |
|Training and Development |Provide training for all employees |Training can be costly. Severity:|Creating mentoring so more |
| |??“ Probability: High |High |experienced employees train less |
| |Cross training ??“ Probability: High |Not enough expertise and |experienced employees |
| |Mass resignations by employees |diversity in skills and |Inventory and match employees |
| |unhappy about the new model and |experience to pull off. Severity:|appropriately. |
| |merger ??“Probability: Low |High |Ensure employee buy-in to the new |
| | |Cause InterClean to build a |model; offer bonuses and incentives. |
| | |workforce from ground up. | |
| | |Severity: High | |
|Enhance Recruiting and |Increased workforce with few |InterClean will have acquired 50 |InterClean will need to know how to |
|Selection |resources to accommodate them ??“ |EnviroTech workers after the |merge its existing talent with the |
| |Probability: Medium. |acquisition and with the |new talent. |
| | |assistance of HR a recruiting | |
| | |plan is needed to identify talent| |
| | |and skill set. Severity: High | |
|Employee Motivation |Because of employee grievances |Lack of communication will cause |Building employee morale and |
| |around the water cooler, rumors |voluntary resignation. Severity: |motivation so the employees feel |
| |abound that the merger will cause |High. |appreciated and as assets of the |
| |job loss. Probability: High. | |company to reach its goals. |
| | | | |
Optimal Solution Implementation Plan
|Deliverable |Timeline |Who is Responsible |
|Establish Communication Mechanism/Plan |ASAP |HR Department/Janet Durham |
|Maximize InterClean??™s existing resources |30 to 60 days |HR Dept/Management |
|Implement training and development |30 to 60 days |HR Dept/Management |
|Hire consultants to plan for attrition/employee |Within 60 days |CEO David Spencer |
|turnover | | |
|Plan staffing requirements to form multi-functional|30-60 days |HR Department/Janet Durham |
|teams | | |
|Establish marketing and publicity of new model |30 to 60 days |Marketing VP Tom Jennings |
|Global Expansion |Within one year |Marketing VP Tom Jennings |
Evaluation of Results
|End-State Goals |Metrics |Target |
|Reorganization of sales force following the |Develop a formal staffing system to identify |ASAP – ongoing |
|acquisition of EnviroTech |skills sets; performance evaluations and | |
| |surveys | |
|Employee Retention |Employee surveys; and termination ??“ voluntary |Within 30 days and then quarterly |
| |and non-voluntary ??“ tracking systems | |
|Increased Customer base |Market research, customer satisfaction surveys|Monthly and quarterly |
|Increase revenues by 40 percent |Quantify sales in a formula that calculates |Daily, weekly and within 80 days and 190 days|
| |revenues from audit reports | |
|Improve communication |Daily, weekly and monthly communication via |Within 30 days |
| |email, e-newsletters and meetings | |