Harrison-Keyes Inc.

Running head: PROBLEM SOLUTION: HARRISON-KEYES INC.

Problem Solution: Harrison-Keyes Inc.

Renee Catch

Strategic Management

18 September 2006

Problem Solution: Harrison-Keyes Inc.

In a perfect world, the project manager would simply implement the project plan and the project would be completed (Gray-Larson, 2005). This perfect world was the interpretation of leaders at Harrison-Keyes when they envisioned their venture into the latest publishing craze, e-books. This paper includes a discussion of the latest set of issues facing Harrison-Keyes during their implementation of e-books. The issues will be evaluated and opportunities identified to provide multiple solutions. The problem statement will be stated, giving several solutions to the problem. The goals that Harrison-Keys envision will be with the statement of end-state goals. All possible alternatives will be described, analyzed and narrowed to eliminate alternatives that are too risky. The optimal solution will be chosen and implementation plan explained. Finally, examples of evaluating the results will be covered for Harrison-Keyes management team to analyze.

Harrison-Keyes made a splash instead of a wave into the e-books business. While Meg McGill has been replaced for the less-than exciting performance of the e-books strategy, new CEO William Guardo has made it known he is not on-board with e-books and needs to be convinced to keep Harrison-Keyes in the market as well. The sales for the first six months were forecasted to be $16 million but Harrison-Keyes realized on $3 million, causing the board of directors as well as the new CEO to head towards a quick exit strategy on e-books. Mr. Guardo has given his team 30 days to convince him to stay with e-books otherwise he is pulling the plug. The realities of the profits not realized and the gross investment made, the following are the prevalent issues that Harrison-Keyes should address.

Describe the Situation

Issue and Opportunity Identification

The division leaders at Harrison-Keyes failed to follow-up with the deadline problems plaguing Asia Digital; due to a natural disaster, Asia Digital is now out of business and Harrison-Keyes is out of a formatting source with no contingency plan. From the initial research done by Harrison-Keyes before selecting a formatting outsource, Harrison-Keyes can quickly identify an alternative company to outsource their formatting needs. This will enable the company to bring all their formats back into alignment with deadlines already missed and allow Harrison-Keyes to pursue the next step in their strategy of publishing new titles in both hard copy and e-book formats.

Another issue at Harrison-Keyes was the unsuccessful marketing strategy used to launch their e-book business. The strategy used was the same strategy as when the company launches a hard-copy book; however leaders at Harrison-Keyes were aware of the drastic change in direction the e-books strategy was from the conventional hard-copy books and should have realized the marketing strategy would need to be re-directed as well. All is not lost, and Harrison-Keyes has the opportunity to correct their oversight by benchmarking other companies that do business on the internet and identify best practices in the industry to follow and adapt those best practices to the e-books business.

A third issue at Harrison-Keyes is the turnover now facing the company. Already key staff members have resigned and accepted jobs with the company's competitors, leaving Harrison-Keyes in the position of needed veteran staff members to assist in re-invigorating the e-books initiative. A company that has a history of success such as Harrison-Keyes will normally have a staff that is equally as dedicated. The leaders have the opportunity to communicate with their staff on the intended strategy for the next six months to increase the sales trend back to the predicted results and maintain that level of communication. Many employees will give their companies several opportunities to correct strategies before they leave as long as they feel they are a valued part of the team.

Finally, the division leaders at Harrison-Keyes have failed to execute the e-books strategy by not taking the necessary steps to correct the lagging indicators they already identified. Through conversations with new CEO William Guardo, the staff has attempted to place the responsibility for the lack of action on former CEO Meg McGill. The opportunity in this issue is basic, identify a solid strategic plan for correcting those lagging indicators and implement the plan. Failure to act has been the largest contributor to the status of Harrison-Keyes' financial situation to date.

Stakeholder Perspectives/Ethical Dilemmas

Newly-hired CEO William Guardo is at odds with e-books project manager Jan Peters. During their meetings and conversations, Mr. Guardo has made his opinion known that he does not believe in the e-books initiative and has given Ms. Peters 30 days to provide him with a plan of correction for e-books with financial data to support the continued venture. While Ms. Peters is the project manager she is responsible for many of the follow-up decisions not being made, it is not fair that Mr. Guardo attempt to hold her solely accountable. All division leaders failed to act in each area of expertise, and should be held equally accountable.

The lower and mid-level employees at Harrison-Keyes are not satisfied with the current position of the company and some have lost their faith in the division leaders. The company has lost several seasoned associates in key positions to work for Harrison-Keyes' competitors and there is an indication that other staff members may follow.

The board of directors was not happy with the performance of former CEO Meg McGill and quickly replaced her with William Guardo. Mr. Guardo was brought in to revitalize the company back to the industry dominance the company once enjoyed. Mr. Guardo may be new to Harrison-Keyes, but not new to the industry has the challenge of re-energizing the company and may have to accomplish his task with a strategy he is not in favor of.

Frame the "Right" Problem

In order to remain in the publishing business, Harrison-Keyes needs to identify a solid strategic plan for identifying lagging indicators in their marketing and technical aspects of the e-books strategy. The communication and lack of organization, follow-up and