Gap Analysis: Global Communications

Gap Analysis: Global Communications

With the onslaught of competition in the telecommunication industry, Global Communications has come under tremendous economic pressure. Over a three-year period, stockholders have seen a steep decline in their investments and are now questioning the ability of the company's ability to rebound. "Local, long-distance and international markets are all competing for the same business but the industry suffered a huge blow at the hands of the cable companies, who stepped in to provide complete solutions encompassing computers, televisions and telephone service" (University of Phoenix, 2006).

A public announcement of Global Communications' plan to outsource thousands of its technical support jobs overseas and expected layoffs created tension between Global and the Union representing many of those affected.

This analysis looks at Global Communications' current situation, issues and opportunities and the stakeholders perspective. This analysis concludes with the considerations of the desired end-state vision, the current situation, and the course concepts.

Situation Analysis

Issue and Opportunity Identification

Global Communication has come to realize what all in the telecommunications industry have been facing: tremendous economic pressure, caused by too much competition, is wreaking havoc on their ability to remain solvent. As it struggles to remain competitive a new strategy has been devised to reverse the more than 50 percent decline in stock value over the past three years, thereby settling the concerns of stockholders, who are bemoaning diminishing returns and speculating about the industry's ability to rebound. The plan includes the introduction of new services, primarily to its small business and consumer customers, and creating an alliance with a satellite provider and a partnership with a wireless provider.

Additionally, cost-cutting measures have been identified in the hopes of improving profitability. Global Communications will market itself more aggressively on an international level with an end goal of becoming a truly global resource within three years. To realize such an ambitious plan, a senior leadership team has concluded that layoffs and salary cuts are necessary in addition to outsourcing many jobs by establishing call centers in India and Ireland. The overseas call centers will reduce unit costs for handling calls by nearly 40% and offer customers increased technical sophistication.

The senior leadership team, led by a newly hire CEO, planned to initiate the new strategy without first consulting with the Technologies Workers Union, the group most severely affected by the changes.

Stakeholder Perspectives/Ethical Dilemmas

Four groups are identified as major stakeholders: stockholders, the senior leadership team, customers and the Technologies Workers Union. Stockholders have a right to demand optimal returns on their investment; this is the driving force behind the strategy developed by the senior leadership team. The team, led by a newly employed CEO, who may be influenced by ambition and a need to prove her worth to the company, demonstrates poor judgment by not including the union in the planning phase of the strategy. "Good judgment contributes to an ability to determine possible courses of action and decide what action to take. Before choosing the course of action, consider the consequences and think methodically" (Department of the Army FM 6-22 2006 p. 6-2).

Conflict between the Senior Leadership Team and the employees of Global Communications was all but guaranteed once the new strategy was initiated. The interests of each group are incompatible and due to a lack of sensitivity on the part of the senior leadership team, to the turbulence that the new plan would cause, the result will be poor performance and low morale. "High morale results in a cohesive team that enthusiastically strives to achieve common goals" (Hesselbein & Shinseki, 2004, p.59).

Within the senior leadership team conflict is evident. The strategic planning seems to have been dominated by the two newest members of Global Communications, who have less than a year's tenure, whereas the Executive Vice President of Consumer Marketing and Sales and the Executive Vice President of Human Resources and Public Relations have a total of 45 years within the organization. These two members of the "team" have considerable experience and knowledge and had a moral obligation to express their concerns about the effects of the new strategy more forcefully during the planning however, only voiced their opinions after the plan was submitted and approval by the Board of Directors.

End-State Vision

Global Communications is determined to pump up the volume of competition in the industry with the institution of new its strategy. Growth will be realized through the introduction of new services. Additionally, increases in both revenue and profits through more aggressive globalization will be realized. Global Communications will introduce cost-cutting measures that will include the shifting of call centers to India and Ireland. These centers will offer customers more technical sophistication at a less expensive price. Global Communications will reverse and repair the atmosphere of mistrust between the Union and Senior Leadership created by the implementation of the new strategy. An offer of a 15 percent retention bonus and the possibility of further salary increases over the next three years are expected to provide a cushion to those affected employees.

Gap Analysis

Global Communications decision to implement the new strategy will cause more problems at its inception than the solution the Senior Leadership Team seeks. By creating the strategy without including the Technologies Workers Union, or for that matter, notifying the Union Vice President of the situation, the Senior Leadership Team fostered the air of mistrust. Fresh off of contract negotiations that resulted in the reductions of benefits, the Union cites contract manipulation, and has spoken out against the strategy stating that Global Communications failed to include it during the formulation of the new strategy. The Union's threat of legal actions may create a snowball effect for future problems. This lack of communication between stakeholders is harmful to the success of the organization. "Effective communication is vital to all organizations because it coordinates employees, fulfills employee needs, supports knowledge management, and improves decision making," (McShane & Von Glinow, 2004, p. 324).

The lack of