You have recently been hired as a new manager hired into a failing division in a company. The product line is outdated and losing market share, inter-departmental communication is adversarial, and competition for corporate funding is fierce. How are you, a new individual, going to turn things around? As your first job as the new manager at the outdated, adversarial company, write a plan for changing its organizational structure, incorporating the following elements:
1. Explain how you would address each of the three main problems in the organization: 1) outdated product lines, 2) adversarial communication, and 3) competition for internal resources. Thinking about organizational structures reviewed in the text, which one (or ones) do you think would be most suited to this organization and why.
2. What steps would you suggest to manage the transition from the old organizational structure to the new?
3. How would you assess the external environment and integrate this into the turn-around plan? Student must support their work with outside reliable sources.
We do not have access to your text, so are unable to review the organizational structures therein.
Sra
Turning a failing organization around is one of the most interesting activities in management. When organizations see themselves in that downward spiral, their managers may feel that they are unable to stop the pace of negative change. That worry and that downward momentum can be very powerful. At the same time, it sometimes takes only a key impetus to deflect that movement and turn things around.
You have recently been hired as a new manager hired into a failing division in a company. The product line is outdated and losing market share, inter-departmental communication is adversarial, and competition for corporate funding is fierce. How are you, a new individual, going to turn things around? As your first job as the new manager at the outdated, adversarial company, write a plan for changing its organizational structure, incorporating the following elements:
Explain how you would address each of the three main problems in the organization: 1) outdated product lines, 2) adversarial communication, and 3) competition for internal resources. Thinking about organizational structures reviewed in the text, which one (or ones) do you think would be most suited to this organization and why.
A failing business is often the result of inefficiencies and poor judgment. This is true of any size company and whether or not the company is privately or publically held (Charam & Useem, 2002). Therefore, my plan to restructure a failing company with a failing product line would focus mainly on eliminating inefficiencies and improving decision making.
In the beginning, I would have a meeting with my managers where we would take a step back, so to speak, and look at the big picture of the industry the company is in and why the product is failing. Often the reason why a product begins to fail is that the company fails to update its product to the consumers’ ever-changing needs (Charam & Useem, 2002). Therefore, we need to look at the product and determine if it is still what consumers want and if not, determine what needs to change. It may be that the product is not being advertised to the right target group or it may be that the product needs new innovative changes or perhaps a completely new product in a new industry is warranted.
Once a new and improved product is agreed on, I will implement steps to realign the rest of the company. It is important to take a look at employees and how they are currently operating. Much inefficiency can be introduced based on too many employees, unhappy employees, and improper delegation of tasks. All managers should lead by example and treat employees with respect so that employees are more likely to enjoy their job. In order to help employees with the transition, there should be at least one full work day dedicated to seminars and product showcasing for all employees so that the employees can see and understand the new product and the reason for the transition. If employees understand what the company is doing and the purpose behind it, they will be more likely to agree with and help facilitate the transition. In addition, during the seminars and the showcasing, it is important to highlight the purpose of each department so that employees can understand how each department is like a piece of a puzzle and each piece is needed for the final product. Perhaps in the evening, a mixer or cocktail hour can be planned to help employees from different departments mingle. Both the seminars and the mixer would help improve the adversarial attitude between departments by helping employees to understand the job of each department and helping the employees meet the faces in each department.
To help eliminate inefficiencies, any task that can be performed with a computer or through the internet should be done so, to eliminate the need for paper and other office supplies. If the product involves manufacturing, the manufacturing process should be critically evaluated for any inefficiencies and ways to improve the speed of manufacturing and the shipping process. If the company is spread out across various cities, then regular meetings between managers can be conducted through video conferencing to cut the travel costs associated with the meetings. It is also important to look at all the activities of the company and decide if it would be more cost effective to outsource some activities, such as advertising or payroll. Finally, any new projects or new equipment that may be pursued should be deferred first to the financing department to determine the net present value. Only projects/equipment with a positive net present value will be pursued.
To address the three main problems in the organization - outdated product lines, adversarial communication, and competition for internal resources - as a new manager, you can follow the steps below:
1. Outdated Product Lines:
- Conduct a thorough analysis of the market and competitors to identify customer needs, emerging trends, and areas of opportunity.
- Create a cross-functional team consisting of representatives from different departments (R&D, marketing, sales, etc.) to brainstorm and develop new product ideas that align with market needs.
- Allocate resources specifically for research and development to encourage innovation and enhance product development.
- Establish partnerships or collaborations with external experts, consultants, or technology providers to gain access to cutting-edge knowledge and expertise.
- Implement a stage-gate process for new product development, involving rigorous evaluation at each stage before proceeding to the next.
- Regularly review and update the product line based on customer feedback, market trends, and technology advancements.
2. Adversarial Communication:
- Foster a culture of open and transparent communication by encouraging feedback, active listening, and constructive conflict resolution.
- Arrange regular cross-functional meetings to facilitate collaboration, information sharing, and problem-solving between departments.
- Implement a communication platform (such as Slack, Microsoft Teams, or Google Workspace) to streamline communication channels and ensure all employees have access to the necessary information.
- Provide training and workshops on effective communication, interpersonal skills, and conflict management.
- Recognize and reward collaboration and teamwork to reinforce positive communication behaviors.
- Set clear expectations regarding communication protocols and standards for all employees.
3. Competition for Internal Resources:
- Review and analyze the current resource allocation process to identify any bottlenecks or biases.
- Develop a transparent and objective resource allocation system that considers strategic priorities, business objectives, and the potential impact of each project or department.
- Implement a cross-functional resource sharing program, encouraging inter-departmental collaboration and resource pooling.
- Regularly evaluate the performance and strategic contribution of each department or project, and adjust resource allocation accordingly.
- Establish a clear justification process for resource requests, requiring departments to provide a strong business case outlining the benefits and potential returns on investment.
- Promote a culture of accountability and responsibility to ensure efficient utilization of resources.
In terms of organizational structure, a matrix structure would be most suited to this organization. A matrix structure combines functional and divisional organizational structures, allowing for better coordination, communication, and collaboration across departments. This structure would facilitate the cross-functional teams and resource sharing programs needed to address the organization's issues while still maintaining functional expertise within individual departments.
To manage the transition from the old organizational structure to the new:
- Clearly communicate the reasons for the change and the expected benefits to all employees.
- Provide training and support to employees to help them adapt to the new structure and understand new roles and responsibilities.
- Establish a transition team or change management task force to oversee the implementation process and address any challenges or resistance that may arise.
- Gradually phase in the new structure, allowing sufficient time for employees to adjust and integrate the changes.
- Continuously monitor the transition process and gather feedback from employees to identify and address any issues or concerns.
To assess the external environment and integrate it into the turn-around plan:
- Conduct a comprehensive external analysis using tools like PESTEL analysis (examining political, economic, sociocultural, technological, environmental, and legal factors), Porter's Five Forces (assessing industry competitiveness), and SWOT analysis (identifying strengths, weaknesses, opportunities, and threats).
- Stay updated on industry trends, customer preferences, and technological advancements through industry reports, market research, and attendance at relevant conferences or trade shows.
- Establish partnerships or alliances with external organizations or experts to gain insights and access to resources that can help address external challenges.
- Routinely review and adjust the turn-around plan based on changes in the external environment to effectively navigate market dynamics.
Remember, it's important to support your work with outside reliable sources and tailor your approach to the specific organizational context and industry.