¶ … OD Intervention Project
The entry process utilized will adopt a problem-oriented diagnosis approach. This is done by gathering all the relevant information about the problems that the company is having from as many and diverse sources as possible and then assessing the nature of the dilemma from this input and developing a new strategy to overcome it once this information is processed and the problem understood to its fullest. Problem-oriented diagnosis is a suitable approach considering the fact that the company is in need of direction and faces several hurdles in terms of reducing debt, meeting obligations with shareholders and stakeholders, and getting its products to market in a more efficient basis.
I will determine the organization's readiness for change based on its willingness to turn the page regarding management and writing off debt incursions. If the Board and stakeholders are truly ready for a change, it will show it by bringing in competent leadership that has a track record of providing sustainable profitability. If the Board is not willing to accept this demand, it will signal that it is not ready for a change. Current leadership has shown that it is unable and unprepared to meet or even to understand the challenges the company faces in its various and diverse markets.
The organizational issue that is the target for the change is the ineffectiveness of management to guide the company to the next level of profitability. The CEO of the company overpaid for several brands of product during its acquisition period and has left the company with serious unsustainable debts. Moreover, its products are not selling as well as anticipated and its storage costs are too high. The CEO does not have a proven track record of running viable companies and only became involved in this as something of a passion project given his love of the sector. Yet shareholders and stakeholders see the need for experience as the company is running into the ground under the weight of its debt...
It needs a strong hand and firm guidance from someone with leadership abilities, visions, know-how and the necessary experience in turning a company around.
The appropriate organizational level to initiate the target for change is at the very top starting with the CEO and including the CFO and the managers of sales and marketing. In short, a new team is needed and it is felt that the new CEO should bring with him his own people who have experience and are ready to face the challenges that the company needs to overcome.
The organization will be given feedback within 6 months of the change implementation. The new team will require time to meet with all the players within the company and to assess the data regarding the company's predicaments and financial status. Then the company will need to meet with lenders and secure notes and take care of the toxic debt that is still out there causing the share price to be obliterated. Once confidence has been restored through the change in management, a new era can be set upon but 6 months will be needed initially in order for the proper assessments to be made and a new course charted based on fundamental objectives and appropriate drivers and pillars.
Feedback will be included in reports generated over the course of the 6 months providing stakeholders and the Board with information as to the strategies that new management is implementing to address the problems faced by the company. Immediate issues will be related to addressing debt obligations and divesting the company of non-performing portfolios.
The overall goal and aim of the new management team will be dictated and described in detail so that the Board can measure achievements against these goals to see how much progress is made in the intervals. The feedback will consist of a description of whether or not goals are reached, why they are or are not reached, what the future looks like under the new team, how well the company is proceeding, what the setbacks…
