Interclean
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Situation Analysis and Problem Statement
InterClean, a cleaning product solution company, is one of the leaders in the sanitation industry. David Spencer, InterCleanЎЇs CEO, believes that for the company to stay as a major player, it needs to meet the new regulations and change their selling point from cleaning products to customized solutions. In order to find the best solution for InterClean to succeed in aligning organizational structure around the new model, current issues and opportunities needs to be described, any problems needs to be framed, and goals need to be defined.
Situation Background
The sanitation industry is changing. The clients no longer just want products but also customized solutions and services that will help meeting environmental safety requirements. Currently, InterCleanЎЇ sales force is trained to demonstrate and sell the products. David Spencer wants to change the current model to solution/service model. Under this new model the sales force will develop customized service packages for each client and have close relationships with clientЎЇs managers and executives. The successful acquiring of EnvironTech, a competitor and have customer service expertise, will give InterClean better position in the future.
Issue Identification
First issue is that the current sales force does not have knowledge regarding customized client service solutions. Looking at Carol StanleyЎЇs, an internal consultant, note on current sale team members demographic data (Attachment A), most of the sales force do not have skills in customer service, communications, and compliance and regulatory, which are the key items in the new customized solution model. Training in sanitary regulations, products information, and building customer relationship is needed to the sales force to align with business direction. Second issue is changing the current organization structure to meet the new business vision. Because many employees are adapt to the current business vision, changing business vision will lead to many problems such as low morality in workplace, job security issues, and changing benefits. To make the successful transition, InterClean needs to ÐŽomotivate change, create a vision, develop political support, manage the transition, and sustain momentumÐŽ± ( Dreher and Dougherty, 2001, p16). Third issue is acquirement of another company that is already aligned with InterCleanЎЇs vision. InterClean will benefit from the expertise but also needs to be careful not to scare the current employees. Any voluntary leave of current employees, such as Mary in sales, will affect the company because ÐŽoturnover is costly because replacement must be recruited, selected, and trainedÐŽ± (p115). Fourth issue is mistrust within the executive levels. Mistrusting within the top management will lead to un-smooth transition in the working levels. The executives must be aligned with the vision before any others in the company. Last issue is the time limit of six month for the transition to take in place. Six month is very short time to make the change. InterClean needs to make sure that there arenЎЇt any problems when making the transition.
Opportunity Identification
There are several opportunities when InterClean makes the change and acquire EnviroTech. First, InterClean will be a leader in the service solution in sanitary business domestic and worldwide. By being one of the first companies to meet the clientЎЇs needs and by acquiring EnviroTech, InterClean will gain larger market share then any other companies. With successful media blitz, InterClean gain new business from all around the world. Second, the employees at InterClean will have vast knowledge from environmental safety regulations to communication and relationship with the clients. Lastly, the company will have organizational structure aligned with the new vision.
Stakeholder Perspective
Most of the executives at InterClean believes that by changing the companyЎЇs vision and organizational structure toward that vision, will able to gain opportunity to expand the company. Some of the InterClean employees view the change as good thing and that it maybe a step toward increasing their values. However, they feel that their job is threatened because of rumor that new employees will be hired but no news regarding re-training. Sally Lindly, CEO of EnviroTech, believes that EnviroTechЎЇs employees will take leading role in sales and marketing. EnviroTech employees