Decisions in Paradise: Strategic Planning for Kava Operations

Introduction: Organizational Challenges on Kava

Given the chaotic nature of the Kava operation organizationally, the apparent lack of direction, and the unfocused efforts of Alex to create any strategy in Kava, Nik needs to tread lightly on any change that is suggested. What needs to happen first is that any vision of what Kava can become must be wholeheartedly embraced by Alex, Nik, and Chris at a minimum, in order to have any chance of succeeding. Alstyne, Brynjolfsson, and Madnick (1997) comment that "The very act of decentralizing decision-making — asking workers for their values and then taking them seriously — can have a positive effect on the change process by giving employees a sense of ownership and responsibility." From their earlier work, they also demonstrate the impact of ownership theory on change management: "Theories of ownership, for example, suggest that decentralizing management can boost quality levels in systems users control themselves" (Alstyne, Brynjolfsson, & Madnick, 1995).

Building a Shared Vision Through Decentralized Decision-Making

These concepts of taking control of change are further supported by the general attributes and decision-making techniques discussed by Paul and Elder (2001). Specifically, the decision-making styles of reflective, integrative, and logic-reasoning are critical in this situation. To preserve the apparent freedoms of starting up operations on Kava, Nik, Alex, Chris, and any other critical members of the team who join later must band together and create substantial value over time. Not just their careers, but their lives on Kava will be directly influenced by their ability to first define a common vision and then work to create multiple strategies for its fulfillment.

Mr. Morales assumes that the team on Kava will bootstrap the operation into existence, all the while holding firm to the values of organizational processes, human resources, and ethics. Combining these three company values with reflective, integrative, and logic-reasoning decision styles must produce a shared vision that galvanizes the team if they are to succeed. There must be a strong collective passion for this vision if it is to continue growing and, in essence, redefine the company within the context of this island nation.

Identifying Unmet Needs on the Island

From a critical thinking perspective, Alex, Nik, and Chris must assess the many unmet needs present on the island, ranking them from a business opportunity perspective. The good news is that Kava has a diversified economy that includes petroleum, natural gas, agriculture, and tourism, and as a result enjoys relative stability of income and wages. However, it remains susceptible to natural disaster threats and has a relatively young, potentially under-educated population. With over 50% of the population below 15 years of age, there are likely many large families on the island, with parents having well over four children per household. Given this socioeconomic and demographic profile, several major unmet needs begin to surface through an integrative approach to decision-making. These unmet needs include, but are not limited to, the following:

Healthcare: There is a clear need for inexpensive healthcare, especially in the areas of pediatrics and child care. There must also be a significant unmet need for prenatal care, given the large percentage of the population under 15 years of age.

Education: There is a significant unmet need for education, including the use of distance learning and the introduction of higher education on the island, such as a college or university. Hand in hand with this is the need for Internet access and wireless access through government buildings.

Banking and technology: There are massive unmet needs regarding the value of technology in everything from learning to banking, including the establishment of a micro-payment bank to give local residents access to low-cost or no-cost micro-loans so they can start their own businesses.

In just these three dominant areas — healthcare, education, and banking — there are more than enough opportunities for the company to grow. What Nik needs to do is create a vision based on the core strengths of the company to ensure a high level of alignment between those strengths and the specific unmet needs in the chosen area. Any initiative in these areas, priced fairly for the island's residents, delivers significant social value and economic benefit to the nation. This approach also reflects Mr. Morales's belief that in the long run, economics drives everything, and that by executing these core processes well, his company is simultaneously doing good. The social conscience of Mr. Morales is evident, and the ability to apply the company's respected process-centric approach to problem-solving to the needs of Kava — while at the same time earning a profit — is a win-win for both the company and the nation. A concentration on healthcare, and in particular the development of a pediatrics clinic potentially underwritten by the local government, would also be significant in its contribution and revenue potential.

References

Alstyne, M. V., Brynjolfsson, E., & Madnick, S. (1997). The matrix of change: A tool for business process reengineering. MIT Sloan School Working Paper. Retrieved February 5, 2007, from http://ccs.mit.edu/papers/CCSWP189/ccswp189.html

Alstyne, M. V., Brynjolfsson, E., & Madnick, S. (1995). Why not one big database? Principles for data ownership. Decision Support Systems, 15(4), 267–284.

Hammer, M. (2003). The agenda: What every business must do to dominate the decade (Chapter 4: Put Processes First). Retrieved February 5, 2007, from

Paul, R., & Elder, L. (2001). Critical thinking: Tools for taking charge of your learning and your life. Prentice Hall.