Problem Solution - Harrison Keyes

Problem Solution - Harrison Keyes

Problem Solution Introduction: Harrison-Keyes Inc.

Harrison-Keyes is facing problems that are not uncommon in industries undergoing rapid change. Their problems/issues can be summarized as per the following bullets:

* They must learn to incorporate improving technology, which is revolutionizing the publishing industry. The power and convenience of new software is leveling the playing field for niche publishers while enabling forward-thinking large publishers to crowd out their competitors by being "first-to-market" with e-publishing offerings.

* They must somehow maintain a strong core of existing authors with which they have publishing and distribution agreements in order to offer the consumer a reputable product as they move forward into this new market.

* At the same time, they must take precautions to protect the intellectual property rights associated with their product offerings and for their authors, which are put at increased risk by the nature of digital media.

* They must solve the problems associated with the foreign vendor who is currently contracted to produce/format their e-books.

* They must work on aligning all stakeholders to the new strategic plan. This should have been done prior to implementation.

In order to proceed smartly into this brave new world, Harrison-Keys should engage in strategic planning to ensure that all resources are aligned and put to bear on the challenges ahead. Strategic planning can help ensure that all the critical players in the organization understand and have embraced the overall goals. It can also help the organization identify potential pitfalls that lie ahead and ensure that mitigation measures are available.

The most basic problem that I can see for Harrison-Keyes is to decide how to address the current issues with outsourcing the e-publishing aspect of their business overseas. How this is addressed will go a long way towards addressing the other issues outlined above. The basic precept of outsourcing itself should be revisited to ensure that all aspects of the business model are considered.

Issue and Opportunity Identification

In the scenario document, the issues and opportunities were identified by the following events:

* New technology/E-publishing - the CEO, Meg McGill e-mails to the staff the e-publishing strategy she has sold to the Board of Directors. She discusses the stagnation in the traditional publishing business. The senior vice president for marketing, Marsha Goldfarb validates this strategy with market research indicating that worldwide sales of e-books are growing rapidly.

* Author retention - one of the best-selling authors in the Harrison-Keyes stable sends an e-mail to the VP of Marketing with his concerns about e-publishing his latest two books. Soon after, an industry magazine publishes a story about this dispute. These events have or will put other authors on the alert, which could be a major problem for the organization.

* Intellectual Property Rights - Executive VP, mark Simmons, writes an e-mail that acknowledges that the laws are still being written with regard to digital media and that there is much controversy.

* Foreign vendor problems - e-mail from Peter Ross, Production Manager, and reveals that he is having problems with the company from India that was contracted to format the e-books. The problems appear to be snowballing.

* Stakeholder alignment - the first indication of misalignment came with the e-mail form Mr. Harper, the author. This was an indication that getting the authors on board with the strategic plan before implementation was less than an afterthought. The next indication came when Mack Evans, the CIO, accuses Robert Smith, the CFO, of not being on board with the strategy.

Stakeholder Perspectives/Ethical Dilemmas

Probably the biggest ethical challenge for Harrison-Keyes is how to execute the e-publishing strategy while maintaining the mutually beneficial relationship it has established over time with its authors. The authors see the move to e-publishing as a threat to their livelihood and their long-time partner is now embracing it. The company made a misstep by moving forward with e-formatting of several books without first including communicating with the authors as part of the implementation plan. Now the company must repair trust with the authors in order to move forward. Moving the e-formatting in-house could help the company repair the concerns of the authors. By implication, this moves the protection of intellectual property closer to home.

Harrison-Keyes also has a duty to its shareholders to maintain the value of their stock holdings. The interests of the stockholders essentially pit the implementation of e-publishing against the interests of the authors. Without moving into e-publishing, the company will not be able to maintain the long-term value of their stockholder's investment. To resolve this conflict, the best Harrison-Keyes can do is fashion a compromise. Moving the e-formatting and all matters of e-commerce in-house can help accomplish this compromise.

Because moving into e-publishing represents a paradigm change for the organization, this will not occur without workforce disruption, up-front investment and potential short-term shocks to financial performance. During this critical period, the company must take care to focus on open and honest communications with the Board. The Board must trust the "plan" and cannot due so if they feel the company is hiding bad news at any time. The dilemma for Harrison-Keyes is the fear that bad news will weaken the Board's support for the strategic plan. Maintenance of trust must be given the priority over the fear of bad news.

Customers also constantly present an ethical dilemma. At the point of purchase, it appears that customers "want it all," i.e. convenience, price and quality. The company must take care that neither gets overly sacrificed for the other. Treating its authors right will no doubt have an effect on price, however, forgetting that its authors are at the root of its product, can have a long-term effect on the quality of its offerings. Eventually, customers will reject the low standards of its publishing. Rebuilding trust with consumers is an uphill battle to avoid at all costs. It is better to ensure its authors are satisfied partners. Bringing the e-commerce elements in-house can help accomplish this goal.

Framing the Problem

To summarize and shape the strategic planning