Alternative Solutions
Benchmarking is a method recurrently used by many companies that provides quality information of ways leading companies have reached the top of their industries. The problem statement for InterClean that I have determined is that in order to become the leader in the cleaning and the sanitation industry, they must expand upon a collection of up-to-the-minute solutions and services in the wake of more stringent requirements for environmental safety. From benchmarking research, I have come across companies that endured similar situation and have progressed from their well strategized decisions InterClean should follow if it wants this vision realized. Companies Like Compaq, GE and Deloitte have been through similar situations have been researched and the benchmarking information. These companies have helped come up with alternative solutions for InterClean.
InterClean should follow Compaq guidance by forming working teams so employees can learn from each other. In its quest to increase profit Compaq asserted a new strategy by reducing manufacturing costs while providing a product of quality. They encouraged team efforts by forming a three person assembly cell which is composed of three parts: Subassembly, Assembly and testing person. “The goal was to systematically increase the number of PCs produced per square foot of factory floor and the number of machines produced per worker”(Dreher & Dougherty, 2001, p. 10). As a result, Compaq thereby realized astounding growth. Simply by looking at these numbers we see that Intersect should go about this program. InterClean, like Compaq, encounters a great deal of competition in the market and constantly faces external pressures from new laws and regulations. By assembling a sales team, knowledge sharing will be more efficient where team members learn from each other. Collectively, the team can develop an ultimate solution for all the issues. Under conditions where InterClean is working under a tight budget this approach of training will be most useful.
Deloitte, like InterClean, faces pressures from SEC due to the constant change in the regulation governing their businesses therefore constant training to help adjust and cope with these changes is only necessary. New regulation and guidance requires that the firm provide Deloitte’s employees with appropriate training, guidance, regular monitoring and info-sharing of new relevant regulations. Deloitte responded to these issues by providing a variety level of training to its professionals. The training they offer includes class rooms, web-based and on the job training. Also, in order to reduce cost Deloitte sends managers and seniors every year to mandatory technical update training. Although the technical update is sent to all employees of any position via e-mail aligned with contacts in case any professional needs assistance.
Emphasizing training on the managers and the leaders of the groups is a good investment in human capital. Conveying education to the team members through the on-job training will have a large impact due to the reflection of performance through real experience and complications. This similar ideology was expressed by Janet Durham, President of Human Resources, when she said “We’ll probably need to focus more of the budget on training managers to implement these changes.”(University of Phoenix, 2008)
Under the same umbrella of good investments, GE also invests well on their employer-of-choice brand thus InterClean should pursue. GE has a reputation of having the best talent management strategy.. “Their employer-of-choice brand is second to none and they are among the leaders in recruiting from the military” (Sullivan, 2005).InterClean should invest heavily on the employer-of-choice brand in order to gain an image of being a good place to work for. Electronic recruiting and campus recruitment was successful for GE. InterClean’s should come up with a slogan which defines them and increase customer base as GE’s whose current slogan is “Big enough for your dreams,” InterClean’s slogan must be unique and inviting.
Analysis of Alternative Solutions
The first goal in Table 3 that I will evaluate is: To develop a full-range service packages tailored to individual accounts. I rate it a five on a one to five scale, which is high. The relative importance of develop a full-range service packages tailored to individual accounts is important , if InterClean becomes the first in the market to develop the new product, the company gain will be huge and inter clean will be the leader in the cleaning and sanitations market . The second goal that I listed is: Retain the highly qualified employees, I rate it a four which is relatively lower. The relative importance of decreasing turnover is to maintain employees who are permanent and secure. Decreasing turnover means that individuals become more important and valuable to the company and in return they receive their loyalty. However, I did not rate it any higher because permanent employees are important to posses and not to mention the cost of turnover. In the external labor market people are always willing to work and get the job done. The third goal is: Expending the company domestically and worldwide, I rated it a five, this goal is important and equally as difficult. By increasing the diversity of the customers means obtaining products to satisfy all and keep them coming. Once InterClean can achieve this goal then that is a measurement of how well InterClean is doing. That is, having such a broad customer base as well as products and services to satisfy them. The fourth goal is: Transforming InterClean's workforce by any means necessary to achieve the CEO's ambitious long range goals. , I rated it a five which is high because InterClean cannot achieve its long-term goals without aligning the staff and develop staffing system in align with the company strategy is very important to achieve the company. “There are two frameworks for Integrating Staffing Practice with Strategy, both approaches require you to explicitly characterize your company’s business strategy and way of doing business and then make judgments about whether existing staffing practices appear to be aligned with your strategic orientation.”(Dreher & Dougherty 2001).The last goal is to be the first to introduce the all inclusive package to the clean and sanitation market, I ranked this goals four because InterClean ability to create a breakthrough technology, is more practical that InterClean have more ideas it is likely that they can realize this goal faster and more efficiently.
Risk Assessment and Mitigation Techniques
In this section I will analyze the remaining alternative solutions and evaluate the risk and consequences of pursuing them. Finally, I will interpret if the evaluation of risks leads me to narrow down my choices. The first alternative solution is to implement a recruiting and selection process which ensures that the new hires will require a minimal orientation. For this alternative solution it will risk compensation package may not attract the targeted employees in which I ranked high because if this does occur, the company will not be able to attract the targeted employees. The consequences will be very severe to InterClean, the consequences will be severe to InterClean because the lack of the skills set required achieving the organization goals. The mitigation technique suggested for this solution is for InterClean to amend its compensation package in order of being able to attract the potential hires. Another Risk will be Increase the cost to InterClean due to the expensive recruiting process and the Probability is low. The consequences will be severe to InterClean and its investors because they will not be able to achieve the targeted profit. The mitigation technique suggested for this solution is for InterClean to is to avoid spending in a. After evaluating, the risk and consequences, I find it risky to carry on and very low in probability. Therefore, implement a recruiting and selection process which ensures that the new hires will require a minimal orientation is not necessary at the time been.
The second alternative solution is providing on the job training by developing working teams. The risks are that on the job training may not help the company growth without the technical training to the team’s leader. I rated the probability low since this is a generalization and it truly depends on individual personality, which can change according to environmental and pressures. The consequences are severe because InterClean’s employees will not have up to date knowledge about the new regulation. This in turn will be severe to InterClean. The mitigation technique assumed for this solution is to provide an intensive technical training to the team’s leader. After studying this break down of the solution it still sounds like a good solution. The risks assumed are based on personal opinions that can change and are not facts to base decisions on.
The third solution to examine is: Develop a reward program very competitive in the market to motivate InterClean best sales employees. The risk of this solution is that it will increase the compensation cost in InterClean. I rated the probability is high; the consequences that InterClean will not be able to achieve the targeted profit margin. The mitigations technique recommended is decrease the base payment and increase bonus based on the sales representative targeted sales. After examining the risk and consequences of this solution I still think that this solution is significant enough to go about because it will change the tone of the environment that will help achieve other goals along the way.
Optimal Solution
The optimal solution is to provide an intensive training to the existing employees about the new regulations. This solution will decrease turnover along with its cost. It will also be a well investment in human capital. Offering training will minimize orientation as well as help their employees through many transitions it faces due to the changes of the new acquisition of EnviroTechs and strategy changes due to new regulations in its industry. InterClean wants to put into practice a new sales strategy and in order to adhere to this method; they need to offer training programs. Investing in human capital will be money well investment and a wise decision regarding its current circumstances of working under a tight budget. In the training process InterClean must manage training and development systems following the five dimensions; that are “skill orientation, training-method orientation, career patching, succession planning, and skill inventories which are used in the decision-making process for investments in training and developing employees.” (Dreher & Dougherty, 2001).
By training current employees about new regulations instead of just hiring new employees will help InterClean deal with its current circumstance of working under a tight. In turn, this will decrease turnover which can also be very costly and help increase employee morale. Training, especially managers, will help as Janet Durham mentioned “We’ll need to focus more of the budget on training managers to help implement these changes” (University of Phoenix, 2008). Hiring a new set of employees will be difficult in the sense that new employees will take time to get used to the company’s culture. On the job training can be cheaper by providing training to the team leaders and asking them to delegate and take responsibility to train their team members. This method will utilize time and money efficiently since current employees have previous knowledge and experience, training will not be based on learning what the product is, as would occur if training new employees, however training will be based on “legal, environmental , safety, ethical and regulatory issues that affect sanitation and cleaning in varied industries and settings.” (University of Phoenix, 2008)
In order for InterClean to be the lead in the sanitation market, its employees must feel secure about their position in InterClean. In turn, they are less likely to stray to competitors. When employees feel their hard work is valued, it will help them fully commit to the business and have an emotional connection. One of the employees of InterClean said “ If I get this training and bust myself big time, maybe I’ll be able to hang in for a few months.”(University of Phoenix, 2008) Building a brand image of loyal employees will help its reputation.
Under new conditions where InterClean has acquired one of their major competitors, EnviroTech offering training will help ease this transition. InterClean expects to increase profit by 40 % from EnviroTechs service expertise. In order to get their employees on board with Inter Clans culture, training is a good step in the right and ensure a seamless transition and getting aligned with new strategies.
By means of training current employees regarding new regulations it will help achieve its end state goals. Training will help develop a full-range service packages tailored to individual accounts since employees will have the appropriate skills to carry this through. Squiring EnviroTech was the first step to accomplish the end state goal of expanding the company both domestically and worldwide. However, by offering training not only are we getting everyone on board of the new strategy and direction but also helping employees coping with adjustments and transitions. As mentioned earlier, in order to fulfill the CEO’s vision employees have to feel secure and connected on a personal level, then by providing training they will academically and psychologically prepared to help InterClean be first to introduce an all inclusive service to the market.
Implementation Plan
The solution that InterClean should carry about is to provide an intensive training to the existing employees about the new regulations. However, reaching this solution is conducted in a matter of steps. These steps are carefully thought out to evaluate the chronology, time frame and who will be most fit to carry it on. The first step is to develop a clear visions and strategy for InterClean for the next 5 years. The CEO has to impose a vision of what and how it visions InterClean to be in the next five years. That is, he should align his priorities of what should be primarily achieved and the method to implement that. This deliverable can be accomplished in no more than a matter of a month under the authority of David Spencer, President and CEO. The next step to take is to perform an audit for InterClean human resources policies procedures and documentation in order to determine if there is anything in need of updating. This step will take a time frame of two months under the responsibility of Janet Durham, Vice President of Human Resources and representative from all the InterClean staff level. Determine the current strengths of InterClean sales team, areas of needed development it will take a period of one month under the supervision of Janet Durham, Vice President of Human Resources and Tom Jennings, Vice President of Marketing. Another stage to overcome is to develop a search engine web to provide the sales representative with all the new technical and regulations updates. A web based tool due to its speed and facility will be of guidance to sales employee. This will be accomplished by IT Consultant firm in three months. Next stage to reach which under the same umbrella as the later one is to provide a hot line to answer the employee questions about the technical updates other than the guidance provided web based tool, here they will be offering on the spot advice from a personal representative about any urgent questions. Sam Waters, Chief of Compliance & Tom Jennings, Vice President of Marketing will be responsible to carry it through and it is anticipated to take about three months in four months. The last step to implement is to provide staff education and training to the employees in turn it will help employees be more knowledgeable about any new regulations and laws that are important to stay on top of things. This task will be executed by Carol Stanley, Internal Consultant and unlike the rest I believe that in order for it be effective it must be performed on a frequent basis.
Evaluation of Results
In order to measure progress, qualitatively and quantitatively, there must be a point of reference to compare initial and final states. That point of reference that will measure Intersect Investments progress is its end-state goals such as InterClean becomes the leader in the cleaning and sanitation industry. The success will be addressed to if revenue growth and increase in the customer base, specifically if Sales increase by 10% within the first six month.
If InterClean has reached this target of 10% then we can validate its progress. Another end-state goal is if there is a decrease in the sales department turnover. This can be measured by the Percentage of turnover. The target percent that the company should aim for is a decrease in the sales employee by 10%. Developing full-range service packages tailored to individual accounts is a further goal I believe can be made good use of to measure the company’s success. This can be depicted by the customer’s satisfaction and if customers are stable with the company. The target to aim for is an increase in the customer by 10% and increase in the revenue from the existing customers by 10% within the next year. A further point to measure Intersects success is that the sales force grows to be knowledgeable about emerging issues in sanitation, environmental regulation of cleaning and cleaning systems, and OSHA standards. This is deliberately done by raising revenue growth and increasing the customer base. The objective here is increase in the customer by 10% and increase in the revenue from the existing customers by 10% within the next year. An extra goal to achieve is to escalate the profit margin for InterClean. Training programs and Increase the sales personal knowledge about the new and the existing products can measure if the employee has become obsessed with satisfying customers and know the product well. Its accomplishment can be measured there is a mounting rise in the net profits. The mark to reach is for the profit margin to increase by 5%.
Conclusion
“Companies restructure and become more and more efficient; there is a clear tendency for each employee to carry far more responsibility for the sales, assets, and ultimately, the value of the company than before the restructuring. Thus, every decision to hire, promote, or lay off has more impact on business results now than in the past” (Dreher & Dougherty, 2001, pg. 118). Internal and external factors forced InterClean to modify and revisit its goals and human capital strategies. In this highly unpredictable market environment organizations need strong human resources department with a clear vision about the organization strategy. Human resources in any organization is important to achieve the organization’s goals .As a result, inevitable conflicts arose amidst the changes in the workplace in which I suggested alternative solutions and methods to manage them.
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Table 1
Issue and Opportunity Identification
Table 2
Stakeholder Perspectives
Table 3
Analysis of Alternative Solutions
[Click twice on table to change, see instructions on next page. The alternatives and their ratings as well as the goals and their weightings shown below are for illustrative purposes, you should enter your own. Delete this paragraph when done.]
Table 4
Risk Assessment and Mitigation Techniques
Table 5
Optimal Solution Implementation Plan
Table 6
Evaluation of Results
