Considering all of these problems that might arise from the stakeholders’ perspectives, UWB needs to focus on a problem statement that would address all of their issues, while still focusing on the opportunities that are in store for the company.
Problem Statement
UWB will become successful in attaining its vision of increasing profits, increasing market share, satisfying its customers and being at the forefront of the competition if they are able to improve their leadership skills and align their long-term goals with their short-term mission, while still satisfying the needs of all stakeholders. By focusing on this problem statement, UWB will be able to achieve their end state goals.
End-State Vision
The ideal end-state for UWB looks very bright in proposing the dual launch of both commercial and consumer products and being very successful with the products. The end state will be one in which the company increases market share while maintaining a strong relationship with existing customers, both consumers and small business. UWB will also have developed a standard process for researching and selecting new products. This process will be consistent and will be effective in selecting award-winning products. They will be able to use a consistent methodology for launching all their new products. Concrete goals will be to expand market share, increase profitability and increase customer base.
The goals that define this end state are:
- To collect accurate statistical data for the new product lines in order to convince the board members of the strength of their research (by early June, 2006).
- To communicate with the accounting, finance and IT departments in order to convince the board members of the company’s ability to afford and launch two products in one year (by early June, 2006).
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To create procedures for future product research and implement new product line and marketing strategy (by 4th quarter, 2006)
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To build alliances and partnerships with other companies that will offer the rewards (by August 1st, 2006)
- To have every department and department leader on the same page when it comes to production and implementation of the new products: create alignments among executives/management (immediately)
- To increase profitability by 40 percent over the next two years
- Increase customer base by 15 percent over the next two years
Alternative Solutions
Statistics is an integral tool for every company and the use of statistical and research concepts are important. One alternatives is for UWB to hire an in-house statistician to help analyze the results retrieved from research conducted by secondary companies. According to Lewis, “virtually every study reports type I error rates (a) and the statistical significance of tests (p values), but few report the statistical power that the study was designed to provide” (2006). The power of statistics used and the eventual impact are the most important aspects to every organization. Therefore, it is important that every company has an in-house statistician that can help analyze the statistical results and interpret its impact. ANOVA is another statistical tool that can be used at UWB to help solve some of their problems. It can be utilized to compare samples from multiple populations simultaneously. This will help UWB compare the needs and wants of multiple customers. The F-ratio can be used to compare variances. All these statistical concepts can be used in UWB if there is a statistician to help interpret these results. Many authors have thoroughly discussed the concepts of statistical power, advocating its use in managerial decision-making (Steidl and Thomas, 2001).
Another alternative is for UWB to conduct benchmarking to see what companies have been through these problems and what steps they took to overcome them. Benchmarking is very beneficial because it helps to identify the current position of one’s business and determine priorities for improving performance. According to the eGeneration business services, benchmarking also allow comparisons with previous benchmarking profiles and against recognized best practices. It also helps to encourage regular monitoring of progress and continuous improvement (2005).
Another alternative is for UWB to choose one of the two products, conduct accurate research and present it to the board. Accuracy and validity of research is important to any organization that wants to be successful in the implementation of its strategies. ““Workers must be equipped not simply with technical know-how, but also with the ability to create, analyze, and transform information and to interact effectively with others. That is, separate the facts from opinions, and then organize these facts in an appropriate manner and analyze the information” (Lind et al, 2004).This is very important as there are plenty of information out there and one has to be able to differentiate the valid from the invalid ones.
UWB can also conduct some form of communication class/lesson for the company leaders to help them understand how to best work well with each other. A leadership class for the senior employees will be beneficial and might be successful in helping to resolve issues like the one between Mary and Jim. This class might aid them in become more goal-oriented rather than being in a power struggle. Columbus Children’s Hospital (CCH) in Ohio once faced a similar problem. The leadership at CCH was taking steps toward become more patient and outcome-focused. Their goal was to move beyond a clinical focus on individual patients to an institutional or system-level focus on the organization as a whole. Unfortunately, this required a culture shift for most physicians. CCH was successful in changing the organizational culture within its senior employees by facilitating a ‘physician leadership development program.’ “A locally developed physician leadership program can be extremely effective at both improving physicians' leadership skills and increasing understanding of the strategic goals and direction of the organization” (McAlearney, 2005). By taking similar steps to that of CCH, UWB can be successful in changing the work relationships between its senior employees. By conducting this program, the employees will be able to see the need for certain decisions and understand the strategic goals and direction of the company.
Another alternative is to create a team that can collect and analyze data that will enable the company to find new business prospects and product ideas. This team will able to put much focus on completing this task: finding new product ideas and business prospects for UWB. Robert Nix, in the Journal of Financial Service Professionals, details various steps needed to find new business prospects. Creating a team in charge of this will enable UWB to successfully and quickly accomplish their missions and identify the best products for their customers. “The first step is finding a prospect. For many this is the hardest part of the process. However, it is actually easier than one might think. Our existing clients are the obvious place to start” (Nix, 2003). Keeping in touch with the existing clients will enable UWB to be in touch with how their customers’ needs and tastes are changing. Data collection is another way of acquiring new product ideas. This team can be active in conducting continuous surveys to identify the needs of their customers. They can also be responsible for selecting vendors (if needed) that will conduct this research and they will analyze the results.
Finally, an alternative is to re-evaluate and merge the positions of Mary and Jim, and assign Jim the head of new product development. UWB’s major goal is to achieve competitive advantage through the development of new products. Jim is already the VP of marketing development and is in sync with the business segment. He connects well with relationship managers and knows what the customers want due to his marketing responsibilities. It only makes sense that he is also in charge of developing new products since he is in most contact with the customers. All these alternatives will need to be evaluated to determine the ones that will best benefit UWB.
Analysis of Alternative Solutions
As stated above, the best alternative is for UWB to hire an in-house statistician. Aside from this, another alternative I consider one of the best is for UWB to conduct benchmarking to see what companies have been through similar problems and what steps these companies have taken to overcome their problems. This will be one of the best alternatives for UWB as they will be able to find other companies that have been through similar problems. One of such is deciding whether to continue in the tradition of presenting only one product to the board per year. They might be able to find companies who have been successful in presenting two or even three products per year. UWB can learn from this method, how those companies have been able to financially meet these requirements. One final alternative that I consider one of the best is for UWB to develop internal research department within New Product division. Having a dedicated research department or team that can collect and analyze data in preparation for new product development will reduce the company’s dependency on hearsay and people who do not really understand the company’s goals. In implementing this alternative, the company will also have to establish requirements and research methodology to be used for all new products. This will solve UWB’s long term goals. Although these alternatives all propose positive outcomes for the company, there are also risks associated with all goals. Although these alternatives will be beneficial for UWB’s success, it is important that the management team prepare for risks that might arise and find ways to mitigate them.
Risk Assessment and Mitigation Techniques
The best alternatives chosen have the lowest risk potentials. The remaining alternatives have been evaluated to identify negative consequences and potential risks. The alternative of choosing one of the two potential products might lead to low morale in one of UWB’s departments. Jim’s team might feel rejected after having done all that research to no use. Mary on the other hand might start becoming fearful for her job if Jim’s idea is chosen. This might cause a great deal of issues, including some future dissension at UWB. The alternative of providing interpersonal communication or leadership classes might not yield any results as the team might be unwilling to participate or practically apply the lessons. It might also be a waste of time, money and resources. Re-evaluating Mary’s position and then assigning Jim the VP of product development might not solve any short-term goals. It might also lead to decrease in morale in the department due to the replacement of a senior employee like Mary. Based on assessing all these risks and evaluating them against the presented alternatives, UWB will need to reach a solution or a combination of solutions that would be most beneficial for the state of the company.
Optimal Solution
The type of solution suggested for the UWB scenario is one that will have to be implemented in fast-paced manner. The entire solution will revolve around the leadership team and them making quick and concrete decisions. Good leadership identifies opportunities when there is need to solve a problem. My solution revolves around UWB hiring an internal statistician that can assist them in analyzing the current data provided by Best Market and make changes or conduct additional research where needed. Jim should be assigned the responsibility of new product development as well as his current role of marketing development since he is well equipped with the needs and wants of UWB’s customers. The internal statistician will be responsible for collecting and analyzing data and will work hand-in-hand with Jim to make product suggestions to the board. This way, UWB will have someone working toward the progress of the company and will be a permanent part of the team. An advantage to this is that UWB will not have to pay for outside research firms who might not even collect accurate data sometimes. Creating a separate team that can collect and analyze data that will enable the company to find new business prospects and product ideas will be very beneficial for UWB and will solve their long-term goals. This solution will help the company establish future procedures for product research and implementation. An advantage is that this team can also help UWB build alliances and partnerships with other companies that will offer rewards in conjunction with their products. The creation of this team should be headed by Jim and should include people from Jim’s department. I believe the company will also be more successful if they look into creating sub-committees within the company that will discuss new product ideas and approve it prior to presenting it to the board. Finally, UWB should conduct some benchmarking to see how companies similar to theirs have been victorious in the past with the overall launching of new products and the success of the products. Considering the proposed solution, it is important that UWB take appropriate steps to implement the solution.
Implementation Plan
The solution stated above is one that can be implemented and executed in a way that will bring value to the organization. This solution/plan has the ability to achieve success for UWB. One of the resources that will be needed in order for UWB to successfully implement their plan is a communication tool. This should be in the form of an intranet system. “Creating an effective work system entails linking executive strategy to operation objectives. Intranets can be that linking tool” (Denton & Richardson, 2006). Intranet can serve as a powerful collaborative tool that will make it easy for teams to see the results of their work and compare that to where they want to go. So once UWB hires its statistician, he or she can work hand-in-hand with Brian and Jim, as well as other employees involved in product development to make the product ready for the board members’ approval. The intranet will make it easier for them to communicate effectively and see the status of their project on a day-to-day basis. Rapid feedback, which the Intranet can deliver, encourages a flexible control that is the ideal for self-directed work. “When used properly, it can be used to give your organization a clearer picture of your group's true priorities rather than some idealized managerial priorities” (Denton & Richardson, 2006). This tool will also enable to team that will be in charge of product development to track their performance and goals over time. With this system in place, UWB will able to meet their goals.
In implanting this goal, Brian should set a timeline both for himself and his team. This timeline should prioritize the company’s short-term goals. The goal of collecting accurate statistical data for the new product lines in order to convince the board members of the strength of their research should be completed by early June, 2006. Also, Brian should make sure that he assigns someone who will communicate with the accounting, finance and IT departments in order to see if the company has enough resources to launch two products at once. The goal of launching a team that will create procedures for future product research and implement new product line and marketing strategy is a long term goal but should be completed as soon as this year’s product has been launched. Then, Brian should make sure this team is able to build alliances and partnerships with other companies that will offer rewards that will accompany their company products. It is important that Brian is clear on all key business results that will drive the overall outcome. “An alignment across these initiatives is necessary for setting the momentum for the other groups to align themselves” (Craig, 2005).
After executing this plan, it will then be necessary for UWB to evaluate the results of their strategy.
Evaluation of Results
Results of the strategic plan will be measured using a weighted system. A scale of one to five will be used to identify the results. The goals of UWB are to acquire the approval of the board members for their potential product, launch at least one product in the next three months, increase profitability by 40 percent over the next two years, increase customer base by 15 percent over the next two years, and launch a team that will be responsible for product research and development by the end of the current year.
Conclusion
Understanding the opportunities that lie in store for the company is the first step toward success. For UWB, the opportunities are numerous and have all been identified. Focusing on opportunities instead of issues is a positive way for UWB to accomplish its goals. Framing the right problem, benchmarking other companies to see how they have solved similar problems in the past, and developing possible alternatives will lead to the ultimate solution. Through the process of benchmarking, we have seen that UWB will be able to solve its current issues by hiring an in-house statistician that will help conduct accurate research to pick the best product for the company. We have also seen the benefits of conducting leadership classes and creating a product research/development team. Understanding the risks involved with each alternative and finding ways to mitigate these risks will help UWB reach their ultimate goal.
References
Craig, N. (Dec. 2005) Having Difficulty Implementing Multiple Initiatives? Try Planning in
Reverse. Financial Executive, V 21 (10) pgs. 48-49. Retrieved April 21, 2007, from the EBSCOhost database.
Denton, K. & Richardson, P. (2006). Intranets for Implementing Strategic Initiatives
Competitiveness Review, V16 (1) pgs. 3-11. Retrieved April 21, 2007, from the EBSCOhost database.
eGeneration. (2005). Building Sustainable Business Retrieved April 21, 2007, from
Lewis, K.P. (July, 2006). Statistical Power, Sample Sizes, and the Software to Calculate Them
Easily. Bioscience. Washington. Vol.56 (7) pg. 607. Retrieved April 21, 2007, from the ProQuest database.
Lind, D.A., Marchal, W.G. and Wathen, S.A. (2004). Statistical Techniques in Business and
Economics. The McGraw-Hill Companies, New York.
McAlearney et al (Spring, 2005). Developing Effective Physician Leaders: Changing Cultures
and transforming Organizations. Hospital Topics. Sarasota: V83 (2) pg. 11. Retrieved April 21, 2007, from the ProQuest database.
Table 1
Issue and Opportunity Identification
Table 2
Stakeholder Perspectives
Table 3
Analysis of Alternative Solutions
Table 4
Risk Assessment and Mitigation Techniques
Table 5
Optimal Solution Implementation Plan
Table 6
Evaluation of Results
