Managing Reorganization

As the newly hired manager of a division that is failing at my company, there are several factors I will focus in on to begin the transition to the turn around. Firstly, I want to focus on the fact that we are losing market shares because our product line is outdated. Next, I want to work to fix the problem we are having with adversarial interdepartmental communication. I would also like to address the ongoing issue that we have been having with receiving corporate funding. It is going to be very important to take each of the issues that we are having and incorporate them into an organizational structure change. After defining how we want to fix the issues we have addressed, I would like to give a more detailed account as to the steps that I believe are best to take in implementing this change. Lastly, I would like to highlight the effect that the external environment will have on the turn-around of the division.

               Richard Brock (n.d.) said “You sell a company twice. First of all, you see them the product, then you sell them the service.” The product line of a company is a huge part of the key to its success. To have a product line that is outdate is simply unacceptable. We need to develop a structure change in our division that will transition us from a functional structure to a project structure. Our new project structure should have an extensive focus on our product line. We need to make sure that we have the most up to date information and that our product reflects the type of workers that we are. Bill Gates (n.d.) once said “its quality! It's creating brand recognition and going after market share!” We need to be innovative and be the industry leader. In becoming the industry leaders, we will no longer be losing market shares and our company will benefit immensely. An organizational change in technology would also help to update our product line by allowing employees to collaborate and communicate much easier. This will lead to employees being able to learn how to be more efficient and effective from each other, as well as allow employees to access complete information faster and make quicker, better informed decisions about their work. 

               Adversarial interdepartmental communication can have extremely detrimental effects on division productivity. Bill Gates (n.d.) once stated that “like a human being, a company has to have an internal communication mechanism, a "nervous system", to coordinate its actions.” If we lack the ability to properly communicate with our co-workers, in theory, our nervous system is unable to function correctly, leading to a company spiraling to its grave. Management can work towards overcoming some of the communication barriers at hand by implementing several valuable techniques. We need to use feedback that our employees have to help pin-point the cause of the problem. We collaborating interdepartmentally, we need to ensure the use of simplified, direct, to the point language. We may need to have some activities that help employees to utilize the positive effects of active listening. Emphasis on constraining emotions and watching for non-verbal cues is also been proven effective in the workplace. It should be communicated to the workforce that we want everyone to communicate fully, openly, and honestly. As a result, fewer rumors will surface and it will cause higher morale in the office. We could also make more online databases available as well as create communities of practice for the divisions to greater expand the opportunities that they have to communicate effectively.

               It has also been made apparent that the competition for corporate resources has become a large issue. But I believe that we need to look at this in a different way. Fairfax Cone (n.d.) stated that “the inventory goes down the elevator every night.” That being said, we have to realize that our people are our most valuable internal resource. As long as we have them, we can do anything. It is important that we utilize each individual employee’s strength and weaknesses and make sure we are placing them in a position where they can be as efficient as possible. We need to make sure that they have the resources to do that as well. We will save a lot of money right of the bat if we utilize, to the best of our ability, what we have right in front of us. By taking these appropriate steps to change the structure, technology, and people, I believe that the solution to our financial problems will slowly solve themselves. In the beginning, we will save ourselves the money, and once we have developed a new product line that upper management can get excited about, the funding should follow.

               We are going to need to monitor the transition very closely for any kind of resistance. The steps that I would suggest to manage the transition would involve reducing the resistance to change as much as possible. Just as Robbins (2009) emphasizes, I would focus on my employees. I’d be sure to educate and communicate the department of the changes we are making and why, encourage participation, and provide a support system for them. Because building trust is a vital element to create a thriving workplace, I would avoid any strategies involving manipulation, co-optation, and coercion because of the damaging effect that it would have with employee relations. I would assess the external environment and integrate it into the turn-around plan by conducting research on changes in consumer demands, laws, technology, and economics and decided on adjustments accordingly.

               Many factors have to be taken into account to successfully turn around a failing business unit. An outdated product line, adversarial communication, and competition are the three main problems that have hindering our department. To fix these problems, I plan to implement a change in structure, technology and people. In managing the transition, I would suggest closely monitoring any resistance to change, and responding immediately to it. The external environment should also be reviewed and incorporated into the overall plan according to any changes.

References

Brook, Richard (2010, Dec). Richard Brock Quotes. Retrieved on January 18, 2011 from http://einstein/quotes/richard_brock/

Cone, Fairfax (n.d.). QFinance. Retrieved on January 18, 2011 from http://www.qfinance.com/finance-and-business-quotes/employees

Gates, Bill. (n.d.). Bill Gates Quotations. Retrieved on January 18, 2011 from http://www.afterquotes.com/great/people/bill-gates/index.htm

Robbins, Stephen P. (2009). Chapter 12: Managing Change and Innovation [Electronic Version]. Management (p.256-278). Pearson Prentice Hall. Retrieved from https://mycampus.aiu-online.com/controls/eBookFileServer.ashx?id=51_119_102_52_71_80_65_104_72_84_52_121_56_57_89_108_77_104_43_114_71_103_69_116_78_120_106_51_54_55_98_112_115_83_83_66_76_68_106_68_113_121_57_82_100_118_66_117_53_65_74_52_80_103_74_105_100_65_67_111_118_99_116_89_116_70_81_113_100_89_51_102_112_86_47_111_116_69_81_108_115_120_43_73_75_119_61_61&File=Robbins_Ch12 256-278&friendlyName=Chapter 12: Managing Change and Innovation