Problem Solution: Interclean, Inc
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Problem Solution: InterClean, Inc.
InterClean is a company that finds itself in a common situation in the business world, surviving a merger. To further complicate that issue, InterClean is also in the process of changing its vision and direction from a product-based to a solution-based sales approach. The industry in which InterClean competes is changing. Environmental restrictions and legal issues are also topics that InterClean has to deal with. The following paper discusses possible solutions benchmarked by some internationally successful companies.
Situation Analysis
Issue and Opportunity Identification
InterClean is a viable factor of business within the institutional and industrial cleaning and sanitation industry. Currently the marketplace is in a change of sorts. The industry is moving from a purely product orientated bases to one that is more represented by services offered along with the products. InterClean has decided that in order to maintain a viable business, they must change their current thought process and realign their business strategy to that of the demands of the market. In doing so, InterClean acquired the company EnviroTech. The expertise of this venture allows InterClean to gain benefits from a corporation whom has experience in the services offered side of this newly emerging market. InterClean faces many new challenges with the acquisition of EnviroTech. Some of those challenges include merging two workforces into one. Many factors need to be considered during a merger of this type including the culture of the two organizations, the cost of turnover, the importance of job satisfaction and the need to manage effectively through the restructuring process.
The first area for opportunity is organizing for success. InterClean is transforming the company to provide clients with new all-inclusive service packages that meet the new environmental laws. The challenge InterClean faces is convincing the employees that they are imperative to the companys success. By doing this management will give the employees something to believe in and will also give them a feeling of control on where the company is going. InterClean must also organize and inspire their newly acquired EnviroTech employees as well.
Another area for possible success is competitive advantage through the effective management of people. InterClean is has hired Tom Jennings to help with the transformation. Toms goal is to develop skills through training of employees to provide clients with “solution-based” sales representatives. Solution based selling will require sales representative to have in-depth understanding of the “emerging issues in sanitation, environmental regulation of cleaning and cleaning systems, and OSHA standards” (Dreher, 2001, ch 1). This education is going to require two different training programs. The first is a program that teaches managers how to motivate and lead during this transformation. The second program is for employees to teach them the new regulations.
InterClean also needs a reward program that fits the needs of its employees. InterClean is competing in a growing market and is hoping to become an industry leader. To do this they must find a way to compete with other companies and one way to do this is through the pay system. If InterClean is going to compete they are going to need to at least meet the industry pay level or exceed it to keep their current employees and attract future ones. Another option available to InterClean is Performance-Contingency Pay. The idea here is that a bonus is available if they meet certain guidelines. This bonus provides employees with an incentive to excel at selling and becoming more knowledgeable on the products and services.
Another area of opportunity is staffing structure. David Spencer just inherited InterClean and wants to make them an industry leader through new products and services. To do this a corporate restructuring is required. David and Tom need to look at their current employees and do a sponsored versus contest mobility check. Sponsored-mobility “stresses the early identification of talent” (Dreher, 2001, ch 3). This is important during the initial transformation, to find talent to lead the educational processes in each of the sales departments. Contest mobility on the other hand, focuses on “identifying individuals with proven achievement records” (Dreher, 2001, ch 3). This will help InterClean to determine what sales representatives need to be kept and which ones need more training. The final attribute they need to look at is Organizational Fit. The idea is to seek the “right types” of employees who fit into the companys vision.
Stakeholder Perspectives/Ethical Dilemmas
InterClean a number of ethical dilemmas facing them as they transform their company and vision. The InterClean employees are in a very stressful situation. The company is in a state of flux and has only a small window of time to get ready for the change. The employees need to believe that the direction of the company has their best interests in mind. If the company does not communicate openly with the loyal employees they may lose more employees due to the stressful situation of an ambiguous job situation.
The uneasiness of the situation also affects the EnviroTech employees. Their company has just been acquired by a bigger, ambitious company with visions of the future. They need to be reassured that new company has a place for them. However, giving high ranking positions at InterClean to the EnviroTech employees could create a situation of animosity between the two companies. The executives of InterClean need to set a clean focus and ensure that employees from both companies feel they are a part of the new InterClean. They need to know that advancement is a possibility. At the same time, they need to use their expertise to help the new company.
The burden of integration will fall on the shoulders of the middle management. It will be their faces the employees see. They have the responsibility of getting everyone up to speed on the new direction. The middle management, especially in the legal and sales departments, need to get the proper people in the proper places. They need to ensure that each employee gets needed training to be effective at his or her new task. It would be unfair to expect them to excel at a job for which they are not prepared.
While very important, the employees are not the only focus in the merger. The customers are the true focus of any service-based company. The customers are being promised a problem-based, total solution by InterClean. They have the right to expect that InterClean will