The aim of this report is to deal with the issues
The aim of this report is to deal with the issues, find the causes and propose an appropriate solution for the private organization. The private sector organization operates in the maritime safety industry and is a well-established company that provides global services to numerous organizations. The issues that the company is facing is that although they have been performing well in the industry, they want to change the way they deliver some services to certain clients as the rate of change outside their industry is increasing rapidly and that they are being outpaced by their competitors. There is also the issue of not having a set date to finish those changes. Similarly, the fact that the same employees who were responsible for setting the traditional services in which the company operate are responsible to bring out the change. Three points of inflection have been derived consisting of financial and regulatory concerns and reputational risk. A decision criterion has been considered and is discussed in the report. Several alternatives consisting of employees training, new recruitment and implementing a change management approach have also been suggested.
The Private sector organization operating in the Maritime Safety Industry is currently facing several issues. The main issues that the private sector organization was facing was that there was no sweltering platform or yearning to change as the company was still operating successfully in its traditional way. Also, the same people who were providing the traditional services were also trying to effect the transformation. The company was running successfully whilst still delivering its ongoing suite of services to its clients, therefore, no actual date of completion was being set by the company to successfully complete the transformation. The company was also being outperformed by competitors and were lacking in innovation.
The main cause behind this unsuccessful transformation is that the organization does not have an independent perception and oversight on how it can alter that transformation through the three infection points mentioned above. As mentioned in the case, one of the key cause was not having a proper project management and change approach to the transformation. The organization is currently trying to undergo through a process transformation. They are a successful and well running business whilst still making use of their traditional methods. To stay abreast of the competition, they are undergoing through this transformation. However, there is no identified paths and end due to a lack of project management.
The root cause of those issues that have been arising is mostly due to a lack in project management approach. Project management is a tool that includes change management which in turn ensures an actual change in the mindset of the employees. An effective change management system will enable the different teams in the company to migrate slowly and steadily into the new system where sequentially the existing process and systems would have been put aside in a planned manner. If a project team had been brought in by the management to supervise the new activities, resource management and team issues would have been sorted out impeccably.
2. Alternative 1:
The first alternative proposed is that the company can give training to the existing employees to enable them to work on the change that the company wants to occur. As we are in a technology-driven economy, it is vital for companies to accept the inescapability of change and communicate this to their employees. Companies perform well when their employees acknowledge that the change occurring is constant and manageable. The company can also establish an environment of trust by having open-door policies, two-way feedback but however, the most vital entity remains the willingness to listen to all the feedback given by the employees even when those are critical (Richards 2018). Employees do not oppose to change. If their feedback is well appreciated, they accept the reason for a change. Following advices of employees can be beneficial to the company as employees know best what the customers tastes and preferences are (Richards 2018). Providing training to employees can also enable the organization to adopt the change that they want. The company should foremost assess its employees’ knowledge and skill level to determine their willingness for change. Appropriate training could then be given to those employees so that they can be better equipped to meet the demands of the new change that the company wants (Richards 2018).
The second alternative propose is that the company recruit new employees. Employees are the greatest assets that a company can have as they contribute to the success of a company. For the organization to successfully adopt the change that they want, they should put forward their best employees to help them in this change. Recruiting new employees can be an alternative for the company as the existing ones that they have are still set on using the traditional approaches whilst its competitors are outperforming them by innovating. Recruiting new employees can be advantageous for the company as better candidates can be acquired and these employees can bring in new ideas and talent to the organization (Newton 2018). Recruiting externally will enable the company to find more experienced and qualified employees which can lead to developing a diverse team of employees (Newton 2018). The company could then reduce training costs associated with the former employees as these new skilled employees may not need training and this can also lead to the company gaining a competitive advantage (Newton 2018). Recruiting externally can also help in creating a forward- thinking approach that would stimulate the advancement and growth of the company.
The third alternative that can be proposed to the company is that it can adopt the change management approach. The first step is to identify the root causes that is not allowing the company to obtain the required change that it desires. In this case, it is clearly seen that the cause is that the company does not have a specific project manager appointed to oversee these new changes. Adopting the change management approach will enable the company to adapt to the changes progressively and gradually set aside the previous system that was being used. The change management approach would also have warranted that the issues that customers and the internal stakeholders of the company were facing to be addressed before moving on to the new transformation. However, regardless of any strategy that is being used to enable this change, the important factor that always remains constant is good communication (Mayhew 2018). Keeping employees well informed about a change is a must since employees are very often resistant to change therefore good communication is a way that can help employees to adapt gradually to the new changes that the company wants to make (Mayhew 2018)
3. Decision Criteria:
The decision criteria in a business setting are said to be those variables that are important for the organization to make the decision. The decision criteria help in evaluating the alternatives from which the company will choose. It should be measurable and should be within the scope. Decision- making plays a significant role in an organization. Therefore, making effective and efficient decision will enable the company to operate successfully while ineffective one will decline the profits that are being made. Upon examining the above case and based on the objectives that the company wants to achieve, the decision criteria will be as follows:
To be able to achieve its objective that is changing the way services are being delivered to clients, costs must be incurred. Prior to making any decision, the incurred costs have to be analyzed as this plays an important part in the decision-making process mainly revenue and profit targets. Taking into consideration the costs that must be incurred is a key component of business operation as this can help the company is achieving the targets that were set and further the goals (Markgraf 2018).
Another aspect that can be incorporated in the decision-making process is ethics. Incorporating ethics can be perceived as an important facet relating to the success of the organization in the long run. Running the business ethically enables the company to gain a competitive edge over its competitors by achieving a positive and strong reputation along with attaining a loyal customer base. The company also must take into contemplation the impact that this will have on their stakeholders. The organization could provide training in ethics to its existing employees educating them about how they should act in a fair, authentic and proficient way to contribute to the company’s success.
? Corporate Image:
Corporate image also defined as the reputation of the business is perceived as the status that the company has towards its stakeholder’s. It portrays how competitors in turn perceive the company and the services that it offers. It is also imperative that a company maintains a virtuous and continuous image as failing to do so could result in the company having a bad image among different stakeholders. Having a good corporate image is a genuine asset which can be in turn interpreted onto dollar values and high stock valuation. Companies very often try to attempt shaping the image by making use of numerous actions such as: brand selection and promotion, cultivating courteous manners, amongst others, the company should however make sure that the image match the reality as if it not the case, the consequences will be the opposite of what the company thought that it will achieve (“Corporate Image – Encyclopedia – Business Terms” 2018).
? Risk Analysis:
Risk analysis is a process that enables companies to identify and manage potential problems that could undermine projects or key initiatives of the company. Companies makes use of risk analysis when its management undertake a change or decision that happens to have uncertainty or maximum use of utility. Companies should therefore be able to identify those risks, the probability that those risks could occur in the future and the repercussions that these risks can have on the company.
4. Recommended Solutions:
Considering the alternatives proposed, it can be held that the third alternative projected can be deemed to be appropriate one. The company is already well-established and has a very strong reputation and brand in the market and among clients. Using the change management approach and employing a project manager will probably enable the company to expunge the tricky situation that arose before that is the three-different point of inflection mentioned at the start. Implementing the change management approach will help the company to gradually adapt to the new changes and reduce the issues of resource mismanagement and employee issues. Training could also be given to the employees so that they can have the expertise and use their newly acquired skills to use the new system that will be implemented and deliver services to the clients thus progressively putting aside the traditional way that the company had been using. By doing so, the company will be able to increase productivity and reduce costs that were incurred. This will in turn be beneficial for the company and its stakeholders. A good leader is knowledgeable on how to turn a challenge into an opportunity, it is therefore important that the management of the company outlines clearly the positive outcomes of this change so as to ease the transition for the employees
5. Implementation and Implications:
Winding- up, to implement the decision of the company adopting the change management approach, the management of the company should consider all factors associated to derive a solution which will be beneficial for the company and its stakeholders. Adopting the change management approach would increase the success of the organization and the project as structured tools and methods will be applied which will lead to the change to be efficient and effective. As per the decision criteria, if this solution is properly implemented, there is a high chance that the company will benefit and that it will continue to safeguard its position in the market.