Problem Solution: Interclean, Inc.

Running head: PROBLEM SOLUTION: INTERCLEAN, INC.

Problem Solution: InterClean, Inc.

University of Phoenix

Human Capital Development

MBA 530

Dr. Alvin H. Steward III

January 15, 2008

Problem Solution: InterClean, Inc.

Abstract

Most of the time when a company evaluate their growth, overall expenses, profit and loss, they end up want to find a way to either improve their way of doing business, or make major changes in order to be able to remain in business. InterClean has recently found itself in this situation as well. As a company, they have chosen to merge with another company, in order to increase profitability and growth. Success is no longer about selling products that clean dirt and germs, but the future is, which companies can solve problems and create solutions to industrial sanitation and cleaning issues.

Introduction

To survive in this highly competitive business market, companies have to be alert, constantly on watch and come up with new ideas. One of the ideas is to merge with other strong companies to meet the changing needs of technological advancements, economic concerns, and new environmental requirements and InterClean is no exception. The situation that is evolving now is the change in customer preference. Customers no longer want products that just clean and kill germs. They want solutions and services that will modernize their cleaning efforts. The profitability of any company depends on fulfilling the rising demands of customers. All above in consideration, InterClean, a leader in industrial cleaning and sanitation industry is moving to expand into a full-service product and service structure by merging with EnviroTech with the vision of creating a new market in providing a complete solution to the customer. This change and acquisition has created some communication, training and recruiting issues. With the merger, InterClean employees are to gain the needed knowledge and skills-set to retain their positions within the company but no training strategy was provided. The CEO indicated to the executive team that lay-offs may occur due to the merger although a 40% increase in profits will follow (Anonymous, 2008). Due to the lack of communication and transparency between the executive and HR teams, the employees have heard the lay-off rumors causing fear and disloyalty among the employees and their motivation deteriorating. Number of things that could have been done to minimize the impact of the new strategy plan such as maintaining better communication, managing risk, planning for contingencies and being more skilled at conflict negotiation. “Communication is also a key ingredient in employee satisfaction and loyalty” (McShane & Von Glinow, 2005, p.10). Therefore, the more information a company can supply to the employees, the stronger the bond. By developing practices that support effective change management, skill orientation and firm strategies, InterClean will be able to increase its profitability, gain loyalty from its employees and foster employee development.

This paper will cover overview, situation analysis, stakeholder perspectives, end-state vision, alternative solutions and analysis of the alternative solutions, risk assessment, optimal solution, implementation plan and evaluation of results for InterClean to continue with its growth and succeed in an $8 billion industry

Overview

InterClean, Inc. is a major player in the $8 billion dollar institutional and industrial cleaning and sanitation industry (Anonymous, 2008). The industry has seen recent changes in the requirement of consumers to meet their needs based on regulatory criteria. InterClean’s success is no longer about which products best cut through the grime or kill the most germs. As the industry improves, clients are more interested in not just products, but solutions and services that will streamline their cleaning efforts in the wake of more stringent requirements for environmental safety. Cleaning companies can offer greater value to these clients by providing turn-key solutions that include product training for employees, regular monitoring and info-sharing of new relevant regulations and in some cases, full cleaning service contracts. Retail customers have shown interest in similar operational solutions. Future profitability depends on addressing these changing needs. David Spencer, CEO of InterClean has announced a new company strategy to develop full service solutions packages for their customers. This new strategy will require the reorganization and retraining to the sales staff. One of the main goals that InterClean is interested in achieving is providing all-inclusive services where they provide a full spectrum of cleaning services and solutions domestically and worldwide. In order to achieve this goal, InterClean will be required to align their organizational structure around this vision, concentrating particularly in sales and marketing. InterClean will have to implement solutions based selling that will require InterCleans sales force to be more knowledgeable about emerging issues in sanitation, environmental regulation of cleaning and cleaning systems. A key success factor for InterClean is to devise a sure way of enhancing products and services and develop a strategic plan which will be more in tuned with their customer response and the leadership team’s willingness to change.

Situation Analysis

InterClean is currently organizing change within their internal structure to facilitate a merger with a complementary company. The human resources and executive teams want an effective method to manage the merger. The companies are compatible in the service and sales level, and different in strengths, educational level, computer and technical skills. The internal and external opportunities and challenges are affecting communication, motivation and retention within InterClean.

Issue and Opportunity Identification

InterClean is owned and operated by the current CEO and President David Spencer. David is determined to expand his company into the new market despite risks due to customer preference. The new solutions-based selling model will require sales representatives to be more understanding of the product, customers,