Global Comm Problem Solution

Problem Solution: Global Communications

Global Communications has embarked on an attempt to improve market share and combat the strong showing from competition. Their stock has depreciated more than 50 percent over the past 3 years and stockholders are upset about it. At this point, the Sr. Leadership team has determined what they feel is the correct course of action. However, there are many issues facing their proposed solution. There are also multiple stakeholders with interests that need to be addressed.

Adhering to a process known as the 9-step model for problem-based learning, issues and opportunities will be identified, end state goals will be defined, solution alternatives will be evaluated and, ultimately, an implementation strategy will be architected. The last step will be to evaluate success or failure based on some predefined metrics.

Situation Background (Step 1)

The situation facing Global Communications is not a unique problem. The telecommunications market has become segmented and fragmented due to the advent of new competition on all three fronts: local, long-distance and international markets. In an attempt to grow globally, Global Communications has hired Katrina Heinz as CEO. She has a background with European global long-distance and is looking to increase both profits and revenues through aggressive globalization. Sy Rodriguez is the Executive Vice President of Consumer Marketing and Sales. He has built strong relationships with key stakeholders and gets results. The other area that Global Communications wants to achieve growth is in the small business arena, led by Nancy Everhardt. Also involved in the potential solution are members of the Technologies Workers Union. They will be instrumental if a positive outcome is going to be achieved. Lastly, Joel Thompson, the Executive Vice President of Human Resources and Public Relations, is a major contributor to any negotiations that may take place with the union. All these players will need to work together effectively in order to reach the end state goals identified later in this paper.

Issue Identification

The issues facing Global Communications are as follows:

1. Employees have interest in job security and have rights for a fair salary and fringe benefits (McShane and Von Glinow, 2004). Employees place trust in the company the work for to protect their interests and rights. Poor communications about possible outsourcing and layoffs at Global Communications is starting to erode any employee trust in management.

2. Stockholders are losing faith and trust in Global Communications. With Global's stock value depreciating more than 50 % over the past three years, it is apparent that confidence is waning.

3. There is too much competition facing Global. Local, long-distance and international markets are all competing for the same business.

4. A downsizing solution will have major implications. The market will not be impressed with layoffs and pay cuts of 10%. This will negatively impact Global Communications standing in the market.

5. The union feels betrayed after recently accepting a 20% reduction in education and health benefits at the last contract negotiations. They feel slighted that the newly proposed strategy for Global Communications was not discussed during the contract negotiation process.

Opportunity Identification

Although there are issues at hand, there are also the following opportunities.

1. "Increasing employee satisfaction and loyalty results in higher customer perceptions of value, which improves the company's profitability." (McShane and Von Glinow, 2004) Satisfied employees will produce a better product and market perception will improve.

2. Global Communication should increase organizational commitment through employee involvement. Involving the union in any solution discussions is integral to this opportunity.

3. A new set of values that reflects today's realties is an opportunity identified by Joel Thompson.

4. The expansion of the consumer call centers will result in the need for more employees at those locations.

5. In order to be successful, Global Communications will need committed employees. There may be an incentive for employees to remain with Global based on a 15% retention bonus. If the employees realize that Global is willing to make that financial commitment up front, then the employees will be a key factor in Global's success.

Stakeholder Perspectives/Ethical Dilemmas

There are three stakeholders in this situation. The first is the stockholders. They want Global Communications to become more profitable so the value of its stock increases. Increased profitability comes at the potential expense of jobs via layoffs. That is a dilemma that will need to be addressed. The second stakeholder group is the union. Job security, benefits and a voice in decisions is of interest to this team. Job satisfaction versus affective commitment is the dilemma the union is faced with. The final group of stakeholders in this situation is the Sr. Leadership team. They need to develop solutions that achieve the growth strategy through small business and consumer customers. At odds with this endeavor is the choice between expanding consumer call centers and downsizing the existing domestic call centers. All stakeholders have valid interests and they will have to work together as a team to reach a solution, or solutions, that are amicable to all.

Problem Definition (Step 2)

The problem/opportunity statement the stakeholders should consider needs to be clear, concise, provide for multiple solutions and be motivational. Global Communications will become an industry leader by leveraging its existing workforce and customer base to grow globally. This is their vision statement for reaching their goals.

End-State Goals (Step 3)

How will Global Communications know that they have achieved what they set out to do? What are the end state goals? The end state goal consists of different areas of focus. In order to be a valid end state goal, I believe it has to me something that is measurable. Therefore, one goal may be to improve the value of GC stock to $20 in two years. This is specific, measurable, achievable, results-oriented and timed (SMART). We use this technique at my workplace for creating goals for ourselves on an annual basis. Another goal may be to realize growth of 50% in their small business and consumer customers in 12 months.