Finally, the last issue HK faces is the negative publicity published in Crain’s Business Magazine. While articles such as the one published in Crain’s may contain some truth, the article does not accurately tell the whole story. Consumers will believe what they want and still purchase the works in digital format if it is more convenient for them regardless of such an article or how some authors feel about the initiative.
The challenge is that HK does not want to come across as a publishing giant without sympathy or the will to address concerns of authors loyal to HK for years. Secondly, they must be careful as a potential leak is identified which can hinder implementation and promote internal chaos.
The opportunity lies with Marsha Goldfarb and her marketing team to place a positive spin on the article. Although the initiative may have been announced to the market prematurely, now that it is announced, Goldfarb needs to market all the positives regarding the initiative. The rollout of a marketing campaign is appropriate provided that false expectations are not set and that HK remains fully committed to the e-Publishing initiative.
Stakeholder Perspectives/Ethical Dilemmas
All stakeholders present different perspectives within organizations. Stakeholders involved in HK’s situation are the Board of Directors, all employees, shareholders, authors, and consumers. The Board of Directors is responsible for ensuring profitability and guiding the organization to success. The board hired a new CEO based on the idea of the strategic direction of the organization. At the same time, the board is not completely convinced of the new strategic direction and expects its new CEO to provide that confidence.
The next stakeholders are the employees. Employees expect to work in an environment with clear communication and which is committed to success and profitability. The employees have the right to offer input and be involved in certain decision for which they are directly involved. The leaders especially have an obligation to remain loyal to their beliefs and support their employees while still promoting the goals of the organization. In the case of McGill, she needs to revisit if she accepted the job knowing that she was capable of implementing the plan the board expected.
A third set of stakeholders is the shareholders. The shareholders have the right to appoint a board whose focus is on ensuring the competitiveness and success of the organization. The shareholders may not be tolerant of any project that does not guarantee success or that may generate a temporary loss in revenue while trying to build the necessary structure to achieve success.
The fourth set of stakeholders is the authors. The authors made HK a success. They have the right to expect that the company upholds the written contracts with the authors and that any modification or additional publishing styles be communicated in a timely manner allowing the authors to voice their concerns and work with the organization to address those concerns. The authors are concerned about loss of profit without fully listening to what can be done to prohibit loss of profits. They are failing to see the big picture in that the new strategy is inevitable and that HK will only be helping them keep up with the times and reach additional markets. The only issue the authors need to be mindful of is what is directly written in their contracts regarding digital publishing methods.
Finally, consumers are stakeholders as well. Consumers expect organizations to keep up with the times and offer the latest technology. Consumers are not bound by any contracts. They may take their business elsewhere at any given time. Consumers most likely will choose an organization with a quality product but also who is convenient for the consumer’s needs. They are the only ones without ethical dilemmas in that if they want a product not offered by their current vendor, the consumers can choose to go elsewhere.
Frame the “Right” Problem
HK knows it needs to do something to remain competitive. Currently, the focus is on implementing a new e-Publishing strategy. However, HK has yet to develop a clearly defined project plan to implement the new strategy. Additionally, they have failed to take into account current author’s resistance to the strategy or understand how the author’s resistance could delay the implementation process. Furthermore, HK is not in a position to implement a new strategy as they have not done the full market research identifying what the consumers want. Either way, HK needs to develop the e-Publishing strategy and implement it as quickly as possible. Therefore, HK’s problem statement is: HK will initiate new strategies aimed at increasing revenue and competitiveness while meeting the needs of its authors through sound strategic implementation plans and project management.
Describe the “End-State” Vision
According to McGill’s strategic plan briefing (2009), part of the end state vision is to reach $32M in sales within six months of the implementation of the e-Publishing strategy (University of Phoenix, 2009). To reach the targeted sales figure, HK needs to successfully implement the e-Publishing strategy through realignment of current staff and through working side by side with the authors to offer a solution to security issues. HK will not lose focus on what has made them successful thus far and will offer dual publishing methods to meet the needs of old and new authors alike. Additionally, the dual strategy will meet the needs of consumers as the consumers will continue to have a choice of traditional or digital products.
Identify the Alternatives and Benchmarking Validation
Several alternatives for HK to consider in the quest to remain competitive and generate revenue are available. First, McGill can hire a project management leader to lead and provide guidance to the team for the e-Publishing initiative. The project manager can be a dedicated resource from within HK or an outside source hired on a consultant basis. McGill may not want to admit she should not be the project lead, but she should be mindful of a concept from Rosenbluth International regarding finding the right people in the first place. According to Chairman and CEO, Hal F. Rosenbluth, and Consultant, Diane McFerrin Peters, of Rosenbluth International, the third-largest travel management company in the world (Curry, 2007):
“Most of us choose our spouse with care and rear our children with nurturing and compassionate attention. Yet, we tend to select the people who will join our company on the basis of an interview or two, and once they have joined, they often find that they must fend for themselves. This contrast illustrates the disparity between the environments of family and work. But, given the amount of time we must spend at work, wouldn't we all be happier if we took as much care at the office as at home to create a supportive environment? Wouldn't we also be far more successful?”
Second, McGill can still lead the project but the entire team can regroup and refocus, creating a project plan with clearly defined roles and responsibilities. For example, HK can review Dunkin’ Donuts Richmond project. The project focused on expansion through centralized information dissemination and by defining the elements of the Richmond project through the development of a project network. Dunkin Donuts created a plan to develop the best strategy for moving forward (Schmidt & Oldfield, 1999). As with HK, the focus of the project was to increase profitability and may not have been achieved without the clearly developed project plan and centralized location for informatics.
Third, if issues with Asia Digital cannot be worked out, a new company should be found or HK should invest in bringing the function in house, ultimately regaining control. Since bringing the function in-house may not be a viable quick solution, they may want to review the strategy used by Wal-Mart. Wal-Mart also faced fierce competition and looked for a way to bring convenience to its customers. The convenience Wal-Mart initiated was an internet store to reach markets not currently attainable. Wal-Mart worked with Adera + Nucleus (A+N) to enable the launch of the website. Wal-Mart implemented the project by empowering A+N to develop a program enabling even the inexperienced internet user to shop at the site and purchase products. Wal-Mart chose A+N based on its five years of experience focused on ebusiness strategy (Business Editors, 2000). Additionally, A+N operates with an emphasis on digital branding. Wal-Mart defined the elements of the ecommerce project and chose to work with A+N based on their project management skills as well as emphasis on meeting the needs of the customers. Wal-Mart then placed the burden of project management and issue resolution on A+N to ensure the delivery of an ecommerce program. The strategy employed at Wal-Mart is beneficial to HK in that both Wal-Mart and HK are looking for ways to increase revenue and remain competitive while meeting the needs of the customers. Both are interested in e-strategies and have looked to outside sources to help develop the technology. The difference is that Wal-Mart chose a company who was able deliver but HK chose a company that barely responded to issues. Additionally, HK was also relying on internal IT staff that lacked the necessary qualifications to successfully develop and install software programs promoting revenue streams to be managed internally. HK failed to evaluate the need for slack evidenced by the after-the-fact question regarding what would happen if the ability to install the software necessary for in-house internet sales was delayed one month. Wal-Mart did not necessarily fail to identify slack, but rather employed its vendor to be responsible for all aspects of delivering on-time, including issue resolution.
Finally, HK can partner with a large retailer so they can continue to distribute print books traditionally while still developing the e-Publishing initiative. They may want to look back at Dunkin’ Donuts. As part of the Richmond project, Dunkin’ Donuts kept its Dunkin’ Donuts brand by not changing the products they were selling. However, Dunkin’ Donuts wanted to “maximize profitability through joint site developments with Baskin-Robbins” (Schmidt & Oldfield, 1999).
Evaluate the Alternatives
The alternatives proposed are in line with the goals. E-Publishing just happened to be the hot topic and initial (and only) focus. HK needs to think outside of the box and find ways to generate revenue. Those ways may not be strictly e-Publishing although e-Publishing is a major part of their future. The most weight was given to hiring a project manager from internal sources to lead the initiative. The project manager should come from within as the hire would promote faith in current staff. The person should be on board with the initiative and should be someone who has been with the company for several years as that person has loyalties to the company and understands the history and culture. Having McGill as the CEO is fine, however, McGill should not be leading the project. McGill should be a resource to the project team and the liaison with the Board of Directors.
HK would also benefit from hiring a CIO whose skills are up-to-date with current technology. Evans should not be fired and his history with the company can be used elsewhere within the company. Evans, however, is not the right choice to lead the CIO department. HK is in a time of change and technology will only get more advanced. Since Evans lacked the necessary skills from the beginning and has not done anything to educate himself further, they should remove him as CIO. On the other hand, senior leaders often look good when they have competent staff working for them. HK might want to consider leaving Evans as CIO but forcing him to find and hire the person with necessary skills to move the company in the right direction. Evans’ length of time with HK is a factor that needs to be considered in the decision regarding the CIO position.
HK should consider an alternative vendor to Asia Digital for the purpose of digital formatting. While HK should make it clear to Ross that his lack of tolerance for overseas companies lends no weight to the decision to hire an alternative vendor, the company does need to listen to Ross’s concerns. If Asia Digital continues to miss deadlines, the entire initiative will be impacted. The other option is for HK to replace Ross as the relationship holder with Asia Digital. If things do not turn around, no other option exists but to switch vendors.
Finally, the quickest solution for HK to be up and running with the e-Publishing strategy is to partner or acquire a company who already has the technology. If they partner rather than acquire another company, HK should only sign a contract that permits them enough time to develop its own technologies and eventually be a sole entity again. The option of partnering is probably not the best solution for HK given its well established history and internal culture. However, a partnership would be a quick solution if they cannot get their act together quickly.
Narrowed List of Alternatives
To narrow the list of alternatives, HK needs to estimate the project time and cost. Thus far, they have failed to design a strategy aiding in the successful implementation of the e-Publishing strategy. First, HK should look at each alternative and determine which options are best to control costs and ensure timely completion. By hiring a project manager from within, the person can start immediately. No time delay is present and no additional cost is needed by way of an additional salary. In addition, by choosing to stay with Asia Digital and replacing Ross as the relationship owner, additional costs will not be incurred as a contract has already been signed with Asia Digital. McGill should have another meeting with senior leaders to use a consensus method for determining time, resources and costs since HK has not undertaken such a project. Another reason to support replacing Evans as CIO relates to his lack of resource scheduling when beginning the software development needed to sell the e-books directly from the company’s website. Had Evans possessed the proper background, resources would have been allocated, the software would have been properly tested and issues would have been addressed before the issues impacted the overall project by one month or more.
Identify and Assess Risks
All solutions are open to possible risks. If McGill hires a project manager from within, she runs the risk of further resistance from internal staff. If McGill hires a project manager on a consultant basis, she runs the risk of the wrong project manager being hired and her refusing to relinquish control thus impacting the successful launch of the initiative. Secondly, if the entire group refocuses with clearly defined roles and responsibilities, the risk that the new roles and responsibilities are not aligned with the e-Publishing initiative remains possible. Third, if Asia Digital issues cannot be worked out and a new vendor is sought, additional costs will be incurred and there still is no guarantee that the new vendor will be any different from the current vendor. Fourth, if McGill does not begin to communicate with the authors and address their concerns, the authors will continue to feed negative comments to the press and potentially harm the company’s reputation. HK should be seeking new talent. However, they should also keep its relationship intact with the authors who have made them successful thus far. Finally, if HK partners with a large retailer so they can continue to distribute print books traditionally and electronically, the risk is that HK gives up sole control of its decisions and may be restrained from certain paths.
Make the Decision
After evaluating alternative solutions to the issues HK faces, the optimal solution is to develop the strategic implementation plan by hiring a dedicated project manager from within. The project manager will develop a plan that operates a dual strategy. The dual strategy involves continuing to offer the traditional methods of publishing to salvage the relationship with current authors. The second tier of the dual strategy is the e-Publishing method which allows HK to attract new talent and reach markets previously unattainable. The dual strategy enables HK to jump into the technological environment to generate additional revenue and remain competitive while not compromising what has made them successful for many years.
Develop and Implement the Solution
The Board of Directors placed Meg McGill in charge of shifting focus to an e-Publishing strategy. McGill is unable to accomplish the task without making internal changes. First, she will appoint a project manager from within the organization. This will occur within the first week of the announced project plan. Second, market research will be conducted to identify exactly what consumers are looking for and expect. The market research will be conducted by Marsha Goldfarb and will be completed within two weeks of the announcement of the project manager. While the project manager is developing the strategic implementation plan, Goldfarb is to be gathering consumer data so within two weeks; the plan can be put into motion. Third, a detailed budget will be developed. The project manager will work with McGill to develop the budget. Budget development will also occur based in part on a consensus method within two weeks of the project manager announcement. Fourth, communication with current authors will take place. As CEO, McGill will be responsible for speaking with current authors and gathering information regarding their concerns. McGill will compile the feedback and present the data to the senior team requesting possible ways to address the authors concerns. Fifth, Ross will be replaced as the relationship owner with Asia Digital and drop dead dates will be established. For every missed deadline, 10% of Asia Digital’s fee will be deducted from its invoice. Sixth, McGill will hire a consultant to work with Evans as CIO to develop the necessary software to enable HK to sell the e-books directly from their website. Once the initiative is launched, McGill will readdress how to handle Evans. Finally, all parties are advised that weekly meetings will occur at which time progress reports are expected. Issues are to be dealt with immediately. The entire project should be developed and ready for launch within 6 months.
While the timeline is extremely aggressive, HK does not have the luxury of delaying the implementation any further. Competitors are already working in the digital forum and every day HK delays the launch of the new initiative, revenue is lost.
Evaluate the Results
HK will evaluate the results through weekly progress reports identifying that the go-live launch is on target for six months from the time the project manager was appointed. HK will then monitor traffic to the website and track the downloaded e-books. HK will then take the volume of downloads multiplied by the amount of the sale, deduct the costs associated with the management of e-publishing and track profits generated. McGill will provide a comprehensive report to the Board of Directors as well as the staff identifying an increase in sales and revenue generated within one year of the project go-live. Additionally, HK will develop a feedback process so employees involved with the initiative can provide feedback from current customers regarding what works and what needs improvement. McGill will remain responsible for working with current and new authors to ensure the publishing methods are also meeting author needs. She will discuss with the Board of Directors how well the successful implementation met end-state goals. If any doubt exists, McGill will identify a task force to correct issues and ensure the project fulfills the needs of Harrison-Keyes to sustain long-term growth and profitability.
Conclusion
HK underwent an important lesson in the importance of strategic implementation planning. They identified the need to develop a clearly defined strategic plan under the direction of a project manager. HK also determined the need to appropriately estimate times, cost and resources, as well as schedule resource processes. They also identified having a plan is not enough unless the plan is successfully implemented. The plan must be followed through and evaluated.
References
Adverblog. (2006, February). MMS Marketing Worked for Samsung. Retrieved November 1, 2009 from http://www.adverblog.com/archives/002335.htm
Business Editors (2000, 27 November). Adera + Nucleus Leads Icon Convergence with ASDA @t Home. Business Wire, 1. Retrieved October 30, 2009, from Business Dateline database.
Curry, M. (2004, August). Hiring and Retaining Good Employees. Retrieved October 30, 2009 from http://www.projectperfect.com.au/info_hiring_good_employees.php
Gray, C. and Larson, E. (2005). Project Management: The Managerial Process. New York: McGraw-Hill Companies.
Schmidt, R. and Oldfield, B. (1999). Dunkin' Donuts - the birth of a new distribution and franchising concept :[1]. The Journal of Consumer Marketing, 16(4), 376-385. Retrieved November 1, 2009, from ABI/INFORM Global database.
University of Phoenix. (2007). Week 1 Scenario One: Harrison-Keyes Publishing. Retrieved October 29, 2009 from University of Phoenix Week 1 rEsource MBA590 – Strategic Implementation and Alignment Course Web site.
Table 1
Issues and Opportunities Identification
Table 2
Stakeholder Perspectives and Ethical Dilemmas
Table 4
Risk Assessment and Mitigation
Table 5
Pros and Cons of Alternative Solutions
Table 6
Optimal Solution Implementation Plan
Table 7
Evaluation of Results
