Problem Solution: InterClean, Inc.    

  Running head:  PROBLEM SOLUTION: INTERCLEAN, INC.

Problem Solution: InterClean, Inc.

University of Phoenix


Problem Solution: InterClean, Inc.

In response to the evolving sanitation industry, InterClean has made some large organizational changes to maintain a competitive advantage. These changes include a change in sales strategy and the acquisition of another company. These changes require complete restructuring in many areas of InterClean including human resource process such as training, development and employee replacement. In order to manage this massive transition successfully, InterClean must develop a process that allows for the realization of opportunities and acknowledges all stakeholder groups.

This paper begins with an analysis of the current state of InterClean and the identification of issues/opportunities and stakeholder groups. From this data, a problem statement and end-state vision is defined for InterClean, and a summary of benchmarking research results in the formation of alternative solutions. These alternative solutions are then rated in relative to the fulfillment of the end-state goals, and any risks and mitigation techniques are noted. Analysis of this information leads to the creation of an optimal solution and a comprehensive description of what the solution looks like and how it will help InterClean achieve their end-state vision. An implementation plan is then created with timelines and delegation of responsibility. The paper is concluded with measurable and specific ways to evaluate the results of the implementation.  

This problem solution proposal is highly researched and examined to provide InterClean with the best possible solution for achieving their desired outcome.

Situation Analysis

Issue and Opportunity Identification

InterClean is currently a major player within the sanitation industry. In order to maintain this position as an industry leader, InterClean must evolve as the industry does. In light of stricter environmental requirements, clients are looking for full service and solution-based companies that can provide them with more that just sanitation products. This emerging trend has provoked David Spencer, President and CEO of InterClean, to make some radical organizational changes including redesigning their sales strategy to a solutions-based model and the acquisition of EnviroTech, one of their major domestic competitors. The future success of InterClean’s changes depends largely on the ability of the HR department forecast the necessary staffing and training requirements that will be needed to support these changes. This includes a skills assessment of current InterClean employees and training them on solutions-based selling and environmental regulations. The careful recruitment and selection of new hires and the possible separation from current employees are also challenges for the HR staff. These tasks must be completed while simultaneously maintaining employee morale and job satisfaction during the change process. The HR department needs to complete these transitions within 180 days due to the scheduled announcement of InterClean’s new service strategy to the public (InterClean Scenario, 2008).

Stakeholder Perspectives/Ethical Dilemmas

        Various stakeholder groups are involved in this scenario and all their interests and concerns must be taken into consideration when determining a solution. The senior management team of InterClean is concerned with future profitability and dominance in the sanitation industry. In order for their goals to be realized, this merger and alteration in strategy are necessary changes that InterClean must undergo. Although layoffs and terminations will most likely occur, overall they view these changes as beneficial to employees and the entire organization.

        The InterClean employees are another stakeholder group that must be recognized. As key players in determining the success of the organizational changes and future goals, employee morale and job satisfaction must be upheld. The initial lack of communication about the strategy and acquisition as well as the audit process has caused employee morale to sink and concerns and gossip to spike. They find it unethical to be held solely responsible for sales numbers for the past year when they are a result of a combination of all departments in the organization. The result has become an “us against them” mentality which could cause resistance to change.

        The employees of EnviroTech are also a stakeholder group due to InterClean’s acquisition of the company. They view this merger as their big break and anticipate not only playing key roles in the new organization but are expecting to hold leadership positions. If existing InterClean employees are replaced with EnviroTech employees, many people may view this as unethical on behalf of management.

        InterClean’s human resource department is another stakeholder group and its focus is to fulfill its duties to the company. This requires the creation, development, and implementation of all recruitment, staffing, and training processes. The objective is to create a sales force that possesses the necessary skills and competencies necessary to support the solutions-based selling model. This could result in the replacement or reassignment of current InterClean employees which is in direct conflict with their interests.

        The opposing interests and needs of each of the stakeholder group has the potential to cause conflict during the change process and it will be necessary on behalf of the executives of InterClean to be sensitive to the values and perspectives of all the stakeholders in the decision-making process.

Problem Statement

InterClean will increase profitability and maintain their position as leader in the sanitation industry by successfully executing the change in strategy and transforming their staff into one that supports this change.

End-State Vision

InterClean will have successfully managed their organizational changes and developed a sales force that possesses optimal levels of skill and competency.

Alternative Solutions

“Generic benchmarking can generate significant payoffs to an organization looking for the solution to a problem,” (Maul, 2007, p. 3). An analysis of best practices used by companies that have experienced similar situations is a useful tool to help InterClean determine a solution. Benchmarking research on concepts such as the alignment of organizational structure and strategy, human capital development, and training and development alternatives is summarized in the following sections.

Aligning Organizational Structure with Strategy

The needs of the industrial cleaning and sanitation industry are gravitating toward a more solutions/service focus. In order to fulfill these needs, and to sustain their competitive advantage, InterClean is undergoing large organizational restructuring including a merger with EnviroTech and a change to a more solution-focused business strategy. The success of these changes relies heavily on designing the organizational structure and the human resource (HR) system to align with the new strategic focus and getting the employees to buy into these changes. "If done systematically, organization design can be a powerful competitive advantage, with organizations creating designs that effectively deploy and align their talent to deliver industry-leading results,” (Williams & Rains, 2007, p. 163). The Pepsi Cola Company of North America successfully restructured their human resources processes in order to align it with business strategy when they went through organizational changes in 1990. In an effort to improve firm performance, they restructured their organization to become more customer oriented, to empower employees, build a sense of ownership, and to flatten out the hierarchy (Walker, 1994). Their basic goal was to find “the right person with the right capability doing the right work in the right environment,” (Walker, 1994, p. 64). In order to achieve the results of successfully driving the changes and sustaining them, Pepsi used Message MappingTM.

“Message Mapping is a system of change leadership tools that organize a company's current state, future state, and change activities in a way that motivates individuals to change,” (Jensen & Kerr, 1995, p. 407). By using Message Mapping, Pepsi was able to manage the flow of information and communicate changes and new behaviors to employees and customers. This communication closed the separation between management and employee and both parties were able to accept the changes and move toward a common goal. Message Mapping consists of three simple and specific phases. Phase one requires mapping change. During this phase interests of all stakeholder groups is assessed and a compelling argument is made as to why change is the only option. This argument is then translated into communications, training, and management initiatives (Jensen & Kerr, 1995). Pepsi successfully completed this phase by comprising a set of meetings which included every employee and began each meeting with the story of “the burning platform” which was used metaphorically to build a case for change. They then altered their mission statement to more specifically align with the new changes and defined what core work and processes were necessary to efficiently and quickly make these changes (Jensen & Kerr, 1995).

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Phase two involves mapping success. “This phase focuses on defining the company’s success through measures and consequences of outcomes,” (Jensen & Kerr, 1995, p. 408). During this phase complex strategic plans are translated into a definition of success that is easy to understand and communicate. This definition of success is then linked to all change initiatives in the employee’s environment. “Linking all of in the initiatives in the employee’s environment had the greatest impact on behavioral change and drives results,” (Jensen & Kerr, 1995, p. 413). Pepsi integrated their compensation, training, and measuring to align with this definition of success ...

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