Management Planning At Tyco
Essay Preview: Management Planning At Tyco
Report this essay
Management Planning
Tyco International Ltd. is a very well known, worldwide company that provides vital products and services to customers in over 200 countries around the world. These services range anywhere from electronics, security, and fire prevention; to healthcare products like disposable medical supplies, and monitoring equipment (Tyco International, Ltd., 2007). Tyco International Ltd. is a model of sophisticated and innovative manufacturing and service and certainly one of todays industry leaders. Tyco employs 250,000 people worldwide (Tyco International, Ltd., 2007).
It is vital for senior management to create new strategic plans in order to address legal, ethical, or corporate responsibility issues when the credibility of the senior management is at stake and this leads to a break down in authority of command. In Tyco, for example, the company first needed to disassociate itself from its CEO because he had been found guilty of misappropriating millions of dollars from Tyco (BBC News, 2002). This required a restructuring of the business. To improve corporate responsibility and accountability the company is now organized into the following divisions, fire and security, electronics and healthcare, engineering products and services. In addition, during the current year, Tyco sold its Plastic & Adhesives unit. The strategic plan here is to break down the remaining divisions into three different entities.
Why did Tyco have to undertake strategic planning after the debacle of its former CEO? There was a dearth of credibility with employees, staff, government, customers and investors. What were the actions taken? At the top, the post of the Senior Vice-President of Corporate Governance was created. A person with a reputation for integrity, Eric Pillimore, was recruited for this position (Tyco International, Ltd., 2007). For the middle level employees a Guide to Ethical Conduct was drafted and given. Every possible situation relating to fraud, compliance with laws, conflict of interest and harassment have been treated at length. The integration of the plans is that if Eric Pillimore is honest and upright, the other employees should also follow his leadership.
The next step in Tycos management planning was the prevention of disaster plan. Tyco has now clearly delineated the delegation of authority policies so that if any funds are spent, the authority to spend these funds is well identified. In addition, at every level strategic planning can be carried out in accordance with the Board Governance Principles (Tyco International, Ltd., 2007). In other words the company at all levels has introduced a degree of accountability and corporate citizenship.
The incidence of these strategic management planning steps is towards confidence building. Confidence building is directed towards employees, vendors and customers. The company is doing damage repair and rebuilding its image. The strategy towards its customers is that the company will deliver what it promises. The message to the investors is that they can rely on Tyco commitment. The company will not commit frauds. The company is attempting to build