Interclean, Inc. Problem Solution

Problem Solution: InterClean, Inc.

Companies today face a global market that is rapidly changing to the ever-growing needs of its consumers. No longer can corporate leaders take a hands-off approach and expect survival of their organization. In order to meet demand management is searching for new means for gaining a competitive advantage. Some businesses develop new products while others completely change the entire business model. Regardless of the changes made, failing to apply a well thought out plan can have serious implications on the success of the organization. InterClean is such an industry that relied too heavily on corporate vision and not having a well defined plan for how to get there. Throughout this analysis, it will become evident that Mr. Spenser lacked the foresight needed to achieve InterClean’s vision. The analysis will also propose a defined plan that will assist in achieving the end-state goals.

Situation Analysis

Issue and Opportunity Identification

As companies begin to look beyond simple product sales, InterClean has a desire to become the industry leader in sanitation solutions. This type of market positioning means that InterClean is seeking to compete as a prospector firm. A prospector firm “…attempts to be the first to market with new products and services. (They) rely heavily on innovation, flexibility and speed. They exploit new market and product opportunities” (Dreher & Dougherty, 2001, p. 103). One aspect of prospector firms is building a workforce that is knowledgeable in not only specific products, but also external factors that may affect the type of product sold. CEO David Spencer wrote that InterClean’s employees be fully trained in “…legal, environmental, safety, ethical and regulatory issues in sanitation.” Using a skill inventory can identify specific skill sets that will assist management in determining which areas will need training. Jane Durham’s skill inventory analysis for Mr. Spencer depicts disparate skill areas between EnviroTech and InterClean. InterClean’s employees are middle aged, mostly high school educated with little college, well experienced to having no experience, and trained in specific products, product lines and product development. Conversely, EnviroTech’s employees are mostly over 40, college educated, fully experienced, and trained on specific issues related to sanitation such as customer service, communication, compliance, contract related, computer/software and leadership. The differences are apparent and management would like to integrate the two businesses with little turnover, whether voluntary or involuntary. Keeping talented employees is essential especially during a merger. “General managers must monitor and control employee turnover-but the key is to manage turnover, not simply reduce it to a very low level. To effectively manage the flow of employees into, through and out of an organization, the quality of newcomers must be compared to the quality of existing employees” (Dreher & Dougherty, 2001, p. 114). The water cooler conversation between InterClean employees spoke of one individual choosing to leave rather than wait for the unknown outcome. Another employee spoke of displaying his or her value with senior management by enrolling in the new training courses. This person believes that through hard work, he or she will be able to remain with InterClean once new people are hired.

Managing an organization, especially during a restructuring process is not easy. The entire water cooler conversation points out to this effect because of the statements Employee 1 mentions to the rest of the group. Employee 1 knows that “…all the staff will have higher sales quotas…and there will be a lot of new hires.” Then Employee 1 finishes with “That sure doesn’t sound like the company has any plans to retain us.” This is an example of senior executive’s inability to “manage the restructuring process.” According to Dreher and Dougherty (2001) “Maintaining employee morale when the actions taken by management seem to suggest that people are expendable requires extraordinary leadership skill” (p. 118). Once the integration of two organizations is complete, InterClean is seeking to develop effective training programs that coincide with the new strategy. Mr. Spencer makes a comment that the “…sales staff will undergo intensive trainingвЂ¦Ð²Ð‚Ñœ Whether intentional or not, Employee 1 believes enrolling in the training program is vital to his or her future emloyees.

Stakeholder Perspectives/Ethical Dilemmas

The InterClean scenario has several key stakeholders encompassing their own interest, rights and values. Values differ between each stakeholder and this can create ethical dilemmas between two or more groups. To begin, there needs to be a determination of the specific stakeholders and the interest, rights, and values he or she possesses. Identify conflicting perspectives that have arisen between the key stakeholders is important.

The first group of stakeholders is the executive management team. The industry is facing product stagnation unless a change in business strategy is executed. InterClean’s CEO, Mr. Spencer, believe the most effective manner in which to realign InterClean is through the development of total product solutions. Implementing the new strategy will require human resources to combine effective HRM practices. The specific issues include skills training, product knowledge development, compensation structure, and hiring and recruiting practices. Therefore, the expectations or values of management are control, loyalty, respectfulness, decisiveness and social responsibility.

The second group of stakeholders within this scenario is the employees of InterClean. Already distraught and apprehensive about the new changes, employees of InterClean have a strong will to be actively involved in the restructuring process. They believe they should have an opportunity to participate in the new training program prior to any elimination of jobs. Additionally, because of the several years of hard work and dedicated service, employees would prefer InterClean’s senior management display some loyalty towards them. Employees of InterClean value fairness, candor, honesty, integrity, cooperation, and devotion.

The final group affected is the employees of EnviroTech, which is clearly the most experienced and well-educated