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 Firstly, I want to focus on the fact that we are losing market shares because our product line is outdated.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

Implementing Management Change

               The three most important principles to implement when managing change are planning, measurement, and support structures. It is extremely important to plan during change because, as Lynda Rogerson (n.d.) states, “a clearly defined vision of the end result enables all the people to define the most efficient path for accomplishing the results”. You need to know what you are aiming for before you start shooting. Scenario planning would work well in this situation because it would identify early warning signals that the turn-around may be experiencing problems and would define what steps you wanted to take if any type of shifts (economically, politically, technologically) were to surface. Manager should be careful not to treat scenarios as forecasts however. 

Measurement is the second important principle that I feel is necessary during change because managers can set milestones, both short and long, which is essential in tracking progress. If you are reaching your goals when you planned, you know that you are on the right track. You must put into place a specific way to say whether you are failing or not. As a manager, you would want to make sure to put an exact timeframe into the goals, for example, sell 500,000 units to stores by November 15^th.  Knowing exactly what the goal is more clearly defines the objective for employees and consistently meeting goals is good for employee morale.

A support structure is the third important principle that I chose. People are very resistant to change because they are creatures of habit. Helping employees to work through the fears they may have during a change is one of the best ways to help them weather the storm. Managers can provide counseling, new skill training or a little bit of paid time off to allow employees stress level to decrease. Reiterating to employees that you are there to support them is very important during times of change. 

References

Rogerson, Lynda. (n.d.). Twelve Principles for Managing Change. Retrieved of January 24, 2011 from http://www.lynco.com/12prin.html

E-Business Security

All business owners should be aware of the risks associated with conducting business on the internet. Ventures like this can pose serious security risks if they are not gone about in the correct manner. A responsible business owner needs to take the necessary precautions when they decide that they want to conduct an e-business. Taking the time to protect your business from hackers will maximize the potential for success.

          “The term hacker was originally used to refer to a self-taught computer expert who is highly skilled with technology, programming, and hardware” (Jenkins, 2000). Hackers target small businesses because they lack the resources that large corporations possess to provide security. A malicious code can destroy all of a company’s code generators and programs. They have caused companies to lose millions of dollars as well as industry position. To avoid malicious codes debilitating your online company, anti-virus and anti-spyware programs should be used and updated regularly and have the most recent patches. A firewall is also a good tool to utilize when trying to protect your online business from these types of threats.

          Data breaches are a common problem seen by online companies that fail to secure their wireless internet networks properly. It can lead to your customer’s financial information falling into the hands of someone who intends to misuse the information. If you intend on using a wireless network for you business you have to ensure that proper security steps are taken. The default password should be changed to something lengthy and preferably containing both large and small letters as well as numbers and characters. You should also make sure that you encrypt your wireless router with Wi-Fi protected access or WPA.  If you aren’t using a wireless router, you should still secure communications that go on over a network. This should be done with the use of internet protocol security or IPSec.

          Another important internet security issue that stems from network use is an always-on connection. Most internet businesses rely on a high bandwidth connection like DSL or a cable modem. An always-on network connection leaves you vulnerable to attacks 24/7. Static IP addresses are also maintained when using an always-on connection. The presents a problem because “once a potential hacker has found the computer, he or she will be able to return to it as long as it is using the same IP address, placing it at greater risk of malicious intrusion” (Jenkins, 2000).

          E-businesses constantly exchange data. It is important to be aware of who you are exchanging data with. Connecting to systems that are owned as well as controlled by others can pose serious security issues. Because of this, it is important that the security mechanisms chosen are “standards based, flexible, and interoperable, to ensure that they work with others’ systems. They must support browsers, and work in multi-tier architectures with one or more middle tiers such as web servers and application servers” (White, 2002, p. 4).

          It is also important to encrypt the information that you keep on your personal computer. You must be prepared for the possibility that your computer could fall into the wrong hands. If it did, you would want to ensure that whoever has the computer won’t be able to view any of the sensitive information being kept on it. To protect your business from the possibility of a computer being stolen, use encryption programs that make information unreadable without an encryption key or password. “An additional strategy is to utilize Secure Sockets Layer (SSL) and/or S-HTTP, which work great to secure e-business transactions and other communications between browsers and Web sites” (B., 2010).

When it comes to email, security should be a number one priority. All emails should use file encryption so that communications remain between the customer and the business. Employees should also be made aware of spear phishing scams. They could receive emails that appear to come from a legitimate place like an IT department and be asked to relay sensitive passwords via email. Employees should always be made “aware of what a spear phishing attack is and to be on the lookout for anything in their in-box that looks suspicious (Teixeira, 2007).

I have no doubt that an acceptable level of security can be reached when conducting business over the internet; however, it is a business owner’s responsibility to take the proper steps to ensure the highest security level possible.  Security of an e-business is a multifaceted challenge requiring appropriate policies and practices. When you have successfully deployed an internet business, you will have developed a well established risk management procedure to deter disintermediation of data access.  Providing security for your internet business shouldn’t be hard. There are numerous program providers in the network security field to help you. Failing to take it into account at all would be a fatal error on a business owner’s part.

References

B., D. (2010, May 28). Exploring the Security Concerns for an Online e-Business. Retrieved from http://www.brighthub.com/computing/enterprise-security/articles/72582.aspx.

Teixeira, R. (2007, June 4). Top Five Small Business Internet Security Threats. Retrieved from http://smallbiztrends.com/2007/06/top-five-small-business-internet-security-threats.html.

White, O. (2002, January). Managing E-Business Security Challenges. Retrieved from http://www.cgisecurity.com/database/oracle/pdf/9iR2hisec.PDF.