Thus, there is lack of internal communication within the departments and overall organization must be improved.
The top management must work out precise goals within the systematic shift of the company approach, roles and functions for each department, and regular cross-section discussions or meeting to update each department on the actions of the others, find out points of improvement and at the next round table to present the results how these issues were dealt with.
Stakeholder Perspectives/Ethical Dilemmas
When setting out goals and vision, the company management must single out existing ethical conflicts and possible conflict areas which can occur within the company transformation process. The reason for this is to in advance settle possible points of misunderstanding.
The Interests, Rights, and Values of Each Group
Employees of middle management level
Their interests include profitable operations of the company as their payments are correlated with high profits. They have the rights to express their points of concern to the top management by which they can influence the business practices within the company, while they have no rights to personally change any business operations, which sometimes leads to misunderstanding and personnel turnover. This group representatives feel that the top management sets out only the goals which are not achievable and only in the pure interest of top management. Also, these employees do not see the optimal ways to reach these goals. The problem can be solved by more in depth communication between the mangers of all levels and discussion of the current and strategic goals and points of improvement.
A managers of the company
The managers are interested in delivering as many profits as possible to the shareholders of the company and believe the whole business model must be changed. This group has the biggest rights to influence the business operations and success of this process will depend purely on the managers' ability to deliver it.
There are ethical problems with delivering this growth strategy, as some top mangers perceive that it is the best way to fire those managers who do not understand the need and why the business model must be changed, while this can cause ethical problems for all the other staff and lead to generally confusion of the staff and their feeling of security at their jobs. The staff will feel it is unfair after their long-term service within the company to change them when the company decides to shift. Employee turnover is too costly for the company and the management must ensure not to fire people fighting the new business approach, but to get them on board, promote team integrity, and reach mutual understanding of the strategy, vision and steps, together with reasons for this.
Based on analysis of gaps between current state and vision, and accounting for possible ethic conflicts, the end-state goals for the company are as follows.
End State Goals
In the nearest future, carry out discussion tables between top and medium level management to improve communication and understanding, continue this practice regularly. Clearly state the vision, strategy, medium term and short-term qualitative, quantitative, measurable and achievable goals for each department of the company.
Organize workshops and seminars for employees explaining the need and importance of "customer intimacy" approach and correct ways to reach them. Regularly monitor employee satisfaction of their inter-company communication, and transformation progress success.
As the priority: reduce employee turnover by studying precisely major reasons for turnover and eliminating them.
The company faces several challenging problems, including different views of top management on the approaches to shift company business model, dissatisfaction of the employees at lower level with the communication within the company, and other problems. There are several solutions to these problems which are doable if management is committed to achieving these goals. The main lesson is that the management must clearly understand the gap between the vision and the existing state of the company operations, and clearly state the steps to reach the goal to successfully carry out company transformation.
1) Available at http://www.lynco.com/12prin.html. Available at http://www.lynco.com/12prin.html