There was not much open ness in the organisation, and even senior members of the company, just to save their own skin, started hiding the crucial information and problems from him. So if we say that this is the time when things started going wrong for the company, it wont be an exaggeration.
After that, company really had a tough time, in appointing new CEO; they had to choose from Peter Salesbury and Keith Oates.
Eventually Peter Salesbury was appointed new CEO against the public wishes, resulting in 25% profit drop in stores. He
- Overestimated sales, and later to get rid of it, sold the products at discounted rates upsetting the loyal customers.
- He tried to categories the organisation into different sectors like UK Retail business, overseas business and Financial services. Not only that, he even introduced property division and food ranges for the company.
By this time, the management understood that they have to do something more then what they have been doing so far if they really want to be there in the business.
They introduced new CEO, Mr. Luc Vandelede, first time in the history of M&S, somebody from outside the family was chosen for this post. He also, like his ancestors, took some important steps for the company like,
- employing 4000 more staff,
- introducing football clubs to give new collection of the clothing design,
- stopped famous but now confusing brand, ST Micheal.
- grouped the stores on the bases of demographic characteristics and life style pattern.
- involved Asian suppliers in the business.
All his efforts didn’t show any sign of improvement though, but he seems to have the potential to do something big for the company. One of the very good steps, as per the Author, taken by him is to open three prototype stores where all new initiatives and concept would be tested and brought George to design clothes for M&S.
2.1 Authors views
The company is facing lot of small-small problems, rather than one big problem. One of the main areas of concern of the M&S is its falling public image. It is getting bad publicity and people are not very enthusiastic in shopping with M&S any more. Because of it, the profits of the company are also decreasing, which is another matter of concern. And now, lots of competitors have also come into the market. They sell the same products at cheaper prices, which is badly affecting the sales of M&S. Staff is demotivated. Customer services are not up to the standard. The company doesn’t have any area of focus. Future long terms goals are almost equal to none. Shareholders are utterly dissatisfied with the performance of the company. The company is trying very hard to gain its previous reputation and profits. They have compromised even to the extend that they appointed the new CEO, first time in the history of M&S, Mr. Luc Vandelede from outside the company. But every CEO brings its own policies and discards the policies of the previous CEOs resulting in getting no big break through.
3. Literature review
SSM is a problem solving methodology developed from system theory, for use in ill-structured or “messy” problem context where there is no clear view as to what constitute the problem, or what action should be taken to overcome difficulties.
According to Check land
SSM is an organized way of tackling messy situations in the real world based on system thinking, which enables it to be highly defined and described, but it is flexible in use and broad in scope. (Peter Checkland & Jim Scholes, 1990)
SSM was developed by Peter Checkland (1981) as a strategy for analyzing complex problem situations and identified acceptable improvements that could be made to those situations. The aim of the analysis is to gain improvements that could be made to those situations. The aim of the analysis is to gain improvement to the system; this is achieved through a multistage process of information gathering, description, analysis and debate (D. Jennings & S. Wattam, 1998)
According to Patching (1990)
SSM is a set of high-level guidelines for applying system ideas to soft or unstructured situation, providing a general learning framework for problem identification, normally prior to the application of problem solving techniques.
“We have also come to realize that no problem ever exists in complete isolation. Every problem interacts with other problems and is therefore, part of a set interrelated problems, a system of problems… Furthermore, solutions to most problems produce other problems…English does no contain a suitable word for ‘systems of problems’ Therefore. I have had to coin one. I choose to call such a system a ‘mess’.”
(Ackoff, 1974)
3.1 APPLICATION OF SSM
- Makes unstructured situations easy:
SSM helps in understanding situations that are inevitably complex and cluttered by people and their individual perspectives, political influences etc, and many other factors that are relevant but difficult to view in any structured or methodical manner. (D. Patching, 1990)
SSM is a learning system that leads to a purposeful action in a continuous cycle. For example, upon completion of the implementation of recommendation generated from an SSM intervention, which is in turn, might make further recommendation to improve the problem context. This differs from hard system approaches, which adopt means-ends directives, seeking to achieve pre set goals. (Flood & Jackson, 1991)
Culture feasibility is a key feature of SSM, recognizing that there are organizational and/or social constraints in the real world, which changes proposed as a result of intervention, must meet. SSM is particularly well equipped to recognize and handle the culture issues in a problem context and in the implementation of recommendation. In attempting to understand the “weltanschauung” or “worldview” of the actors in the problem context, SSM works with and within the social and culture constraints of the problem context. (Flood & Jackson, 1990)
3.2 Stages in SSM
The action research projects, the basics for the SSM used the principles of hard system analysis to investigate soft situation and from these experiences the SSM model was formulated, showing diagrammatically the seven stages of the methodology. (D. Patching, 1990)
Real World
Systems thinking about real world
(Checkland. 1975)
“The diagram is essentially illustrated a set of guidelines, and each stage is described using a high level of generic terms (e.g. Problem situation unstructured, Real world systems world comparison and so on). A line is drawn on the diagram between such ‘real-world activities’ and those carried out in the ‘systems world’, where the analyst withdraws from the examination of the real situation, and objectively considers relevant system models.”
(David Patching, 1991)
The first task therefore is to assemble a representation or picture of this situation, which is rich in both quantitative and factual, and qualitative, and subjective information. The analyst will try to portray the situation without imposing an appropriate analytical framework upon it.
(John Naughton, 1995)
A well-drawn picture is worth thousand words. And it should be self-explanatory as it is designed to aid communication as well as help the analyst visualize the problem situation. It is a method of pictorially representing three important considerations in information systems design:
- Elements of structure in problem area
- Elements of process
- Elements of relationships
3.2.1 Stages 1 & 2 (The Problem Situation: Unstructured & Expressed)
According to Checkland (1981) the main purpose of the stage 1 & 2 is to display the situation so that a range of possible and, hopefully, relevant choices can be revealed, and that is the only function of these stages.
In stage 1 the data is unstructured and a clear picture of what is going on and what are the factors that influence the situation is developed.
In stage 2 the situation is expressed pictorially, using rich picture. (D. Patching, 1990)
Once an acceptable rich picture has been constructed, the investigator temporarily leaves the real world, and the system thinking phase is entered. However the picture will be instrumental in highlighting issues that are relevant to the subsequent system models.
3.2.2 Stage 3 (Root Definition of Relevant Systems)
A root definition is an idealized view of what a relevant system should be. The aim is to draw out the essence of
- What is to be done?
- Why is to be done?
- Who is to benefit or suffer from it?
- What environmental constraints limit the actions and activities?
The development of root definitions of achieved by formulating the statement around six elements recalled using the CATWOE mnemonic. (Flood & Jackson, 1991)
C – Customers: the victims/beneficiaries of the purposeful activity.
A – Actors: those who do the activities.
T – Transformation process: the purposeful activity, which transforms input into an output.
W – Weltanschauung: the view of the world that makes the definition meaningful.
O – Owners: who can stop the activity.
E – Environmental constraints: those constraints in its environment that this system takes as given exposure technically
3.2.3 Stage 4 (Making & Testing Conceptual Models)
Stage 4 is concerned with the logical expansion of the root definition into the activities that the system must do in order to be the system so defined. (Brain Wilson, 1990)
The model is a representation of what is necessarily implied by the relevant system; it is not a representation of what does or ought to exist in the real world. It outlines the activities, which would have to be carried out, and the order in which they would be carried out, if that system were to function. (D. Jennings & S. Wattam, 1998)
3.2.4 Stage 5 (Comparing conceptual models with reality)
The aim behind the comparison stage is essentially to generate debate about possible changes that could be made to bring about improvements in the problem situation. (Flood & Jackson, 1991)
Checkland (1981) describes four ways of doing the comparison .they are as follows:
Informal discussion;
Formal questioning;
Scenario writing based on ‘operating’ the models;
Trying to model the real world in the same structure as the conceptual models.
3.2.5 Stage 6(Defining feasible/desirable changes)
Comparison stage reveal areas where improvement may be possible and in stage 6 these are examined to determine whether the changes are culturally feasible in light of the views, background and experience of the people within the organization, and desirable in system terms to support the preferred transformation. (D. Patching, 1990)
3.2.6 Stage 7(Implement the desirable change/Recommendations)
At this stage, the structural and procedural changes are considered, together with changes in attitudes, and more pragmatic matters such as obtaining finance, effects on staff levels, training and so on.
3.3 Summary of SSM
SSM is a representative work from soft system thinking. It was developed to promote investigations of the purposeful human activity. The need to develop such an approach arose because hard system analysis was found to be inappropriate and ineffective for many messy situations encountered in the management and organizational studies. An essential output of SSM is that, by working on a variety of perspective, a set of relevant systems is identified. These are explored rigorously with system ideas and used to cast insight on main organizational issues. Ideas for change can then be offered in a well-informed manner. An important achievement of the use of SSM is to create general learning and mutual understanding.
4.0 Analysis of the situation using SSM
Now the soft system methodology will be applied on Mark and spencer
4.1 Stage 1: Problem situation unstructured
As said above, company is having lot of small-small problem rather then one single problem. So now we unleash the case and try to take out the important issues with the company at present. The public image of M&S is falling day by day. It’s a real matter of concern because if the company has bad name once, its very difficult to revive it otherwise. Bad name is of course affecting the profits of the company. Its getting decreased with every new financial year. Lots of competitors are there in the market. And these include some big group or companies like Gap, Oasis, Next, ASDA, Sansbury, & Tesco. Staff is also not very motivated for the obvious reasons, if the sword is hanging on the neck, that if the profits or sales keeps on decreasing like this, they will loose their jobs. This thing is putting an adverse affect on the moral of employees.
4.2 Stage 2
Please refer to the sheet attached
4.3 Stage 3
Root causes / Key factors
There are two main causes of concern or root causes for the company at present. These are
- Reputation: Primary task
- Money/Profits:
Now lets do the CATWOE of both of these key issues
Reputation:
C – Customers — shareholders, management, CEO, the entire staff and customers at large.
A—Actors – CEO, management and rest of the staff
T—Transformation – increased sales, improved profits
W – WELTANSHAUUNG OR WORLD VIEW – it’s not easy to do that again.
O – OWENERS – Shareholders, management, CEO and rest of the staff
E – ENVIRONMENT – customers at large.
Increase in profits:
C – Customers—management, shareholders and rest of the staff
A—Actors – management, CEO in particular
T—Transformation – improved stores, good sales services, motivated staff
W – WELTANSHAUUNG OR WORLD VIEW – it is very unlikely for the company to make again those kinds of returns.
O – OWENERS – shareholders, CEO and rest of the staff.
E – ENVIRONMENT – shareholders interest, customers
4.3.1 Overall root definition:
The reputation of the company is spoiling day by day. And it can be considered as the primary root cause for the company. It takes long time to build the reputation, but very less time to spoil it. If the company is having positive image or the good reputation in the market, profits can be maximized at any time, which is another root cause for the company.
4.4 Stage 4 Building a conceptual model
The sequence of activities which must go on in the system as embodied in the problem situation, are as follows
- Balance between the local and overseas suppliers:
- Is it necessary to keep only domestic supplier to control the price or even overseas supplier can be used for some of the products
- Are the customers happy?
- Do they get what they ask for very easily?
- What the company has done lately for customer delight?
- Simple operating procedures
- Can the company handle lot many customers at the same time?
- Does the company has to much of the paper work at the time of refund or replacement of the products
- Does the company has the proper customer feedback form
- Doest the company keep know, what exactly customer want or what problem they are facing
- Is the staff motivated?
- Is there adequate no of staff in each and every store?
- Is the staff really happy to help the customers?
- Proper stock maintenance in stores
- Are all the products which customers ask for or which company provides available in the store?
- Does the company even make some arrangements to monitor and check its activities?
4.5 Stage 5(Comparing conceptual models with reality
If they have to quality product and if no, then that is the solution
4.6 Stage 6(Defining feasible/desirable changes)
To bring about the change in the present situation requires us to analyze the implication of such a change as well as enquiry, whether the change is feasible in terms of recourses, desirable by the people involved in the situation, appropriate given the constraints of the environment in which the system is operating and most importantly acceptable to the parties involved.
The study is known as the stakeholder analysis, which categorizes the adoption of any change to improve upon the situation towards solving the same. Looking to the problem situation under study the following parties are considered to be the stakeholders. Their respective interests and problems are also listed below:
This stage also involves the consideration as to whether the changes advised are systematically desirable and culturally feasible.
While examining the feasible criteria the following consideration have to be kept in mind:
What competitive advantages do we have?
After making all these changes, will company again get back its old days of glory.
Is it too risky to perform all these changes?
What all recourses company needs to implement these changes?
Will it be too expensive to do it?
4.7 Stage 7 Implements the desirable changes/Recommendation
Analysing the situation the following recommendation can be suggested:
- FUTURE LONG TERM GOALS: M&S is having one problem. They want immediate results. Shareholders are so much dissatisfied with the performance of the company, that they almost lost the trust on the company. That is the reason; every CEO is in look for some short cuts rather than laying down long term profitable plan. Author is having a strong view that no company can exists in a long run, without anticipating the future trend. So it is recommended to the company to set some long-term goals for itself.
- IMPROVE SERVICES: Sales services are the area, which no company can afford to ignore. By providing the best sales serves, includes both sales and after sales services, the company can raise its reputation in the eyes of customers. Which is the demand of the hour.
- ADEQUATE NO OF STAFF: It was a mistake on the part of former CEO, Richard Gerry, to reduce the no of staff. There should be adequate no of staff present in the stores all the time.
- MAINTAINS STOCK PROPERLY: Stores should be stocked well all the time. Both excess and shortage of stock is not good for the company.
- SEGREGATION OF PRODUCTS: All the products should be well segregated in the stores. The company needs to work out which product will be placed where?
- ADAPT LATEST TREND AND TECHNOLOGIES: Its very important to know what the trend is like and to provide that types of products to the customers.
- MORAL BOASTING: There is a need to motivate staff. If the staff is treated well, only then they will be happy to help the customers. Company needs to treat them well, both financially as well as socially.
- STRICT CONTROL ON QUALITY: M&S was very famous once, because of its good quality products. That was the hallmark of its success. Under no circumstances, company can afford to provide the low quality of products.
- CUSTOMER’S FEEDBACK: Customer’s feedback is very important and they should do that periodically. Its very important for the management to understand that only the happy customer comes back to the same place. So they should do every effort to know what are the problems of customers and try to remove them at the earliest.
- DOMESTIC/OVERSEAS SUPPLIER: If the company thinks that some products are not of that importance and they can afford to get them imported, only then they should go for outside the country. Otherwise they should stick to domestic supplier, who provides good quality of products.
5. Conclusion:
M&S is the company, which is still having lot of potential in it. All what are needed are little retrospection, planning and confidence. With all these things, they have to strike back the market. They got to believe in themselves. And as said above, they have to concentrate more on long term strategies rather than making short term plan and working on them, just to please share holders. They are trying very hard though, by exploring new fields, its good for them. They have to keep on going like this and not stop their expansion program at all. Management has to show some confidence on the CEO and must give him adequate time to perform.
6. Bibliography:
- Peter Checkland, “System Thinking, System Practice”, John Wiley & Sons Ltd., 1981
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Brian Wilson, “Systems: Concepts, Methodologies and Applications”, 2nd Edition, 1990, John Wiley & Sons Ltd.
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Robert L. Flood & Edward R. Carson, “Dealing with complexity, An Introduction to the theory and application of system science”, 2nd Edition, 1993, Plenum Press.
- David Patching, “Practical Soft Systems Analysis”, 1990, FT Prentice Hall.
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David Jennings & Stuart Wattam, “Decision Making an Integrated Approach”, 2nd Edition 1998, FT Pitman Publishing.
- Robert L. Flood & Michael C. Jackson, “Critical System Thinking”, 1991, John Wiley & Sons Ltd.
- Peter Checkland & Jim Scholes, “Soft Systems Methodology in Action”, 1999, John Wiley & Sons Ltd.
- Robert L. Flood & Michael C. Jackson, “Creative Problem Solving, Total Systems Intervention” 1991, John Wiley & Sons Ltd.
- John Naughton, Soft Systems Analysis, An Introductory Guide (1995), The Open University Press, Walton Hall, Milton Keynes.
- Frank A. Stowell, Information systems provision, The contribution of Soft Systems Methodology, (1995), Mc. Graw Hill International (UK) Ltd.
Websites:
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