Problem Solution: Global Communication

Running head: PROBLEM SOLUTION: Global Communications

Problem Solution: Global Communications

Yan Huang

Brandon Nguyen

George F. Jiang

Dhananjayan R.

Melinda Rieboldt

Shahab Alizadeh

University of Phoenix

Problem Solution: Global Communications

As a large unionized telecommunication company with strong union influence and rich corporate culture, Global Communication (GC) relies heavily on proper alignment of key stakeholders for its organizational effectiveness. In the past decades, GC has been successfully working with its union in achieving its "mega giant" status in the industry; it has also benefited significantly from its legendary "people edge". As GC seeks to face new challenges, union relations and employee morale continue to play pivotal roles.

GC, like any other organization with a rich history, is bound to face challenges and resistance when implementing dramatic changes such as outsourcing and other aggressive cost cutting measures. How to effectively manage such changes has deep impacts on union relations and GC's "people edge". Change management thus becomes a crucial issue that the GC leadership must handle with great care.

To accurately identify the problems in the GC scenario, it is essential to thoroughly evaluate different stakeholders' values and rights, as well as the profound impacts of culture changes on various aspects of organization behavior.

Describe the Situation

Issue and Opportunity Identification

Global Communications (GC) is an aging, unionized telecommunication mega-giant with decades of history. It is suffering issues originating from out-dated technology, technically-incompetent employees, high operation costs, as well as deteriorating union relations and employee morale. Its rich "employee-friendly" culture brings special challenges for implementing aggressive cost-cutting measures.

Meanwhile, with recently recruited CEO and VP of Small Business and Marketing Sales on board with several established veteran vice presidents, the newly structured GC senior leadership team is going through a challenging phase itself, as it strives to reconcile different styles and cultural backgrounds within the group.

Externally, fierce competition has led to an overall depression of the entire telecommunication industry and strong doubts on Wall Street regarding the industry's future. GC stock has lost 50% in just three years. Meanwhile, emerging computer and internet technologies have enabled cable companies to enter the competition with a great competitive edge. It has not only eroded GC's market share, but also created tremendous pressure for technology upgrades and service improvements, adding challenges to GC's already troubled financial situation.

To survive, sustain, and rebound the GC senior leadership team has initiated aggressive measures to realize growth and profitability; yet the successful implementation of such measures is put in serious doubt by the challenges described above.

Stakeholder Perspectives/Ethical Dilemmas

There are three key stakeholders in the GC scenario - the leadership, the employees and the union. Together, they form a "power triangle" that dictates the GC's fate and its future direction. As shown in Table 2, multiple conflicts exist between elements of the triangle (leadership vs. employees, leadership vs. union, and employees vs. union). Ethical dilemmas originating from these conflicts need to be carefully evaluated.

In summary, the leadership is performance oriented. It has the obligation to make GC a strong organization in the telecommunication industry. The union focuses on member interests and its own organizational strength. To protect member benefits, it has to constantly negotiate with the GC management, maintaining a balanced relationship. Meanwhile, it must strive to keep itself strong and united as an organization, sometimes at the sacrifice of interests of small employee groups over the common interests of the union. The employees, on the other hand, are more benefits focused. They may share the mission of the company or the union, but they are more concerned with individual well-being and career development.

Frame the "Right" Problem

Global communications can achieve future sustainability, growth and profitability by engaging in strategic partnership, operational streamlining and stakeholder alignment under common visions.

Describe the "End-State" Vision

Global Communications will establish its global leader position in the telecommunication industry with expanded services and domestic/international market, increased profitability and enhanced competitive edges. It will enhance its overall organizational effectiveness by establishing and maintaining its "people edge" in addition to a well-aligned stakeholder relationship.

Identify the Alternatives and Benchmarking Validation

As identified in Table 3, GC can become a global telecommunication company by partnering with other companies and achieve growth by investing in new technology. GC can offer new products in VOIP, High-speed Internet, IP TV and Wireless or it may remain a domestic company that lags behind the industry leaders.

As identified in Table 4, there are four alternatives of reducing operation and other costs proposed by the team to contribute to Global Communications' profit gains. In the telecommunications industry, labor cost, operation cost, supplies cost,