Proble Solutions Interclean

Abstract

InterClean developed a strategic direction roadmap which entails InterClean’s domestic and worldwide expansion of its full-service solutions packages. To achieve domestic market dominance InterClean has acquired EnviroTech, one of its major competitors. Acquisition of EnviroTech shall result in potential opportunities, but it will also bring staffing, leadership, and culture clash implications.

To achieve a sustainable competitive advantage InterClean required a new effective HRM plan to underline the overall business strategy. An end-state vision was crystallized, and a HRM plan was developed to achieve the vision. To align the HRM plan with the business direction, an optimal step-by-step solution framework was developed. The nine-step solution integrated effective change management strategies as well as suitable HRM strategies. The framework of the solution focused on the critical phases of planning, development and execution. The important HR practices such as forecasting labor needs, executing and interpreting skill inventories, management of voluntary turnover, executing training and development, and individual/team based pay structure were taken into consideration during the design of the framework. Measurable HR related end-state goals translated the vision into a concrete action plan. The measurement system in place serves as a mechanism to indentify gaps between the “actual” and “desired” states. Conducting employee and management surveys became the main tool to measure efficiency of the HRM plan.

In the process of developing an optimal solution, a set of alternatives was considered. As part of the risk assessment analysis for the plan, the major foreseeable risks, such as potential legal claims from discharged employees and internal dissent within a particular department, were analyzed and mitigated.

Introduction

In the light of external environmental forces, InterClean developed a new strategic direction to achieve a sustainable competitive advantage. To align HR strategy with the overall business direction, an optimal solution framework will be developed in the course of this paper. Sets of alternative solutions and major risks will be analyzed and mitigated. A problem and vision statement will help to identify the gaps between the “actual” and “desired” states. Measurable HR related end-state goals will translate a vision into an action plan to facilitate alignment between HR and business strategy. The following paper will also discuss steps that can be taken to proactively manage change before it significantly impacts a project.

Situation Analysis

The forces of the external environment highlighted the need for change at InterClean. The opportunity involves InterClean’s expansion through full-service solutions package offerings. The new business strategy requires the sales force to be knowledgeable about emerging issues in sanitation, environmental regulation of cleaning systems, and OSHA standards. One of the biggest challenges is to ensure proper staffing to carry out this new strategy. The company has an opportunity to enhance the talent pool by strategically switching from an internal to an external orientation, bringing salespeople from outside of the organization.

To achieve market dominance in the sanitation industry, InterClean acquired EnviroTech, one of its major domestic competitors. Aside from expansion, InterClean also saw the acquisition as an opportunity to obtain the service expertise of EnviroTech. Armed with that expertise, InterClean anticipates increasing profitability by 40% within the next year, which in turn will create a shift in workforce demand to meet this financial objective. The main challenge posed by the acquisition involves a merger of EnviroTech sales reps into the InterClean structure. Taking into an account that the level of qualifications and experience of the EnviroTech staff is superior to the qualifications and experience of InterClean’s own staff, layoffs appear inevitable. The merger of two companies and their cultures, as well as overcoming the “changing” stage of Lewin’s planned three-stage model, are therefore the central issues in the case study.

Problem Statement

InterClean aspires to build sustainable competitive advantage domestically and worldwide by managing organizational change and aligning human resource strategy with business strategy.

Vision and End-State Goals

InterClean does not have a written vision statement in place. However, there is a common goal stressed by management that could be best stated as follows: “Becoming the leader in providing and development of full spectrum of cleaning services and solutions both domestically and worldwide.” Further, we will discuss the HR related goals that InterClean needs to accomplish to fully align human resources and business direction:

1. Become the training and education resource of choice for all employees by offering access to any and all existing education and training resources onsite within two months.

2. Eliminate poor performers by hiring from pools of excellent candidates, developing succession planning, and increasing training and cross-training opportunities.

3. Maintain and update skill inventories every quarter.

4. Conduct monthly employee and management surveys (also exit and post exit surveys).

5. Empower and recognize each employee's contribution by engaging them in the strategy implementation.

6. Turn an average performer into a self-motivated, accomplished employee by finding a better fit for that performer within the organization, and conducting monthly performance reviews.

7. Roll out 360-degree feedback within three months to facilitate effectiveness of performance reviews.

Alternative Solutions

Three alternative solutions loomed large in the design of the optimal solution framework. The following alternative solutions were considered in developing HR strategy:

1. Avoid layoffs and retain full InterClean and EnviroTech staff (95 people total). The obvious pitfall inherent to this alternative solution is the need for more extensive training, which in turn requires more finances that would cut into the revenue enhancement goals in the anticipated phase.

2. Hire for potential vs. achievement. InterClean will have to hire additional staff to support