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Rr Communications Case Study
1. Executive Summary
The Case study presents a review of the decision made by an experienced Vice President (Vince Patton) to relieve several DIO’s from their duties and obligations. The actions of these employees are a reaction to the rearrangement of the company’s business structure. The principle management wants to create a centralized information management system that will bring about benefits to the company. The introduction of this change faces resistance because of the fear of losing their responsibilities. Rearranging the business structure to fit a centralized system and the resistance experienced because of these changes is just but the first step in the project. The real concern is how the VP will establish a single customer service center that shares common data within the business.
2. Strategic context
2.1. Key Issues
The business does not meet the Sarbanes-Oxley standards of the law because it cannot account for all operations since the divisions do not work as an integral unit
The business is facing stiff competition from rival companies whose business structure makes sure they function as an integral unit with similar targets and goals.
The main administration of the organization has relinquished most of its control; therefore, the performance of the company relies on the trust the management has on its employees to perform the company's vision and mission (Simon, 1996).
The decentralized units place their interests first before those of the company that impacts areas like productivity and customer service adversely. These employees develop a lack of trust and tolerance of shared ideas that affect the organization’s creativity and innovation levels.
The decentralized system creates distinct workplace environments and workforce culture that impedes the organization’s ability to accomplish the strategic goals and targets. Each division has their culture rather than a joint culture for the entire organization. Therefore, the employees work under different environments making it hard to conform to a centralized management (Simon, 1996).
Communication between departments is low since different divisions have a sense of individuality they barely communicate with other departments. The poor communication level affects the quality of production.
2.2. Business needs
Businesses thrive on communication and integrity of the different units; therefore, they are vulnerable to numerous adverse issues if divisions do not share information and processes. Poor customer relations affect the brand name of a company. RR communications have developed a bad reputation of double billing the clients. A bad reputation is detrimental to a business as it loses clients to its competitors. It is difficult for an organization to recover after it loses its competitive position in the market. Lack of communication between the divisions of an organization diminishes creativity and innovation in the company (Goldhaber, 1993). The departments cannot identify issues affecting their performance and create strategies to improve the performance of the company. Moreover, the management of RR communications misses out on favorable business opportunities that can increase the revenue and profit returns (Goldhaber, 1993).
3. Key Outcomes and Success Criteria
The study evaluates a broad range of issues to set in place proficient change management strategies that can ease the change process. The case Use the several measures to screen a comprehensive list of options and narrow the options down to a rational number of viable options. Screening criteria used is through a thorough environmental analysis that considers the potential achievability and the strategic fit of the operation
3.1 Strategic Fit
Evaluation will check whether implementation of a single customer service center that shares common data within the business fits the company’s internal and external situation. Considering the reaction of the DIO’s the management will carry out an expansive survey about the employees concerns and also factors that might deter successful implementation (Goggin, 1979). The organization will also consider the competitive outlook of executing a single customer service center that shares common data within the business. It will assess whether a single customer service center that shares common data within the business creates a competitive advantage for the organization (Goggin, 1979). The analysis will perform a performance test to evaluate the potential gains in profitability and gains in the company’s competitive strength and long-term market position.
3.2 Potential Achievability
RR communications will accrue several advantages from implementing a single customer service center that shares common data within the business. Firstly, every department will have a stake in the customer service center, and prospect ventures will demand documentation and preparation that will improve the IT and business relations (Batt, 1999).
Secondly, a single customer service center will merge the data from the customers of all divisions addressing the problem of inaccurate billing by eliminating duplication and minimizing redundancy. The decentralized system of RR communications creates poor communication and collaboration between the four divisions of the company that makes it difficult to follow up the billing process of the customers (Batt, 1999). As a result, the customer gets billed twice. RR communications stand to gain a higher retention rate of the clients by addressing the problem of inaccurate billing.
Another advantage of implementing a single customer service center is that it will be easier to gather data about the four divisions and amass them in standard formats for management analysis. It will improve operational effectiveness and increase flexibility within RR communications.
A single service center will also create growth opportunities to RR communications by marketing its other services to customers without offering price offs or applying marketing strategies.
A single service center will create aligned targets and create traceability and tractability of commands in the organization that will increase the consistency in administration and costs of operations. It will also increase the value of information sources (Batt, 1999).
A single service center will create room for better customer relations and high-quality services. The decentralized system brings about disunity and discord among the different divisions. The employees in these divisions lay too much focus on other departments and survival they forget the clients. A central system makes sure the different departments focus on the clients (Batt, 1999).
4. Implementation of Strategy
RR communications require a systematic strategy that can accommodate every aspect of the project. The first step of the process should be addressing the current issue affecting the firm that is the resistance expressed by the DIO representatives. The management should perform extensive assessments through interviews, one-on-one talks, questionnaires to evaluate the IT environment across all major IT components. The assessment allows a business to develop a strategy that can house most of the interests of the employees and identify areas of concern it should address. The next step should be the communication of the intended change to the employees and other stakeholders in the company (Fisher, 1998). The management will create the need for change amongst the employees to ease the change process. After preparation, the management should equip RR companies with the necessary software and hardware as well as other pieces of equipment needed in the change process (Fisher, 1998). At the same time, the management should organize for training sessions to provide employees with relevant knowledge on how to handle the equipment. The next step involves delegating roles and responsibilities to the workers of RR communications. After the management delegates the roles and responsibilities, they will adopt strategies that reinforce the change process such as creating a supportive committee. Finally, the management set up a governance mechanism to monitor the change process (Fisher, 1998).
5. Management the Investment
RR communications management should have a rough idea of how the company will govern after implementation of the changes.
5.1. Governance and Oversight
RR communications seek to create a single customer service center that shares common data within the business. The company has to reorganize the business structure and set up measures that ensure ease and conformity to the change process to achieve this feat. RR communications should set up several governance mechanisms make sure that common customer data and a shared customer service center (Batt, 1999). RR communications should begin by defining the qualities of governance that facilitate the development of an efficient single customer care service center. These qualities include transparency of operations at all levels, joint responsibility and team building and alignment of the goals and targets of the company (Batt, 1999).
5.2. Key Performance Indicators
Placing milestones on qualitative value is a difficult task; nonetheless, the management can relate improved performance to the success of the project. The management can also measure the success rate by assessing the reduction of overhead costs incurred. The management can also use the anticipated benefits to measure the success rate of the company.
RR communications management should ponder whether it is possible to achieve an enterprise vision with a decentralized IT function. Amidst all the disadvantages of having decentralized IT governance system and the potential benefits of a centralized system lies the option of improving the decentralized system for better performance (Bardhan, 2002). It is possible to run a business and achieve the enterprise vision with a decentralized system; nonetheless the organization has to create strong goals that motivate and encourage the employees to perform towards the companies visions (Bardhan, 2002). The management of RR communications should also apply elaborate strategies and ideologies that can compel the workers to work towards the company’s vision. RR communication also has to build effective and strong communication between the divisions. Finally, the management of RR communications has to develop a robust organizational culture that promotes integrity and performance (Bardhan, 2002).
7. Strategic view
The RR business structure constituting of four divisions was a strategy of maximizing on the four different business domains. The strategy was effective; however, lost course along the way. The introduction of a centralized system will help the organization improve its services and reduce the operational costs by a significant amount. The IT structure of an organization is a crucial aspect of the success of a business. Integration of the different divisions systems increases the proficiency of IT governance in the organization (Zeithmaml et al., 1990).
The cost of monitoring and maintaining the system is easier and cost effective with a centralized system. A decentralized system requires numerous auditors to analyze the system’s performance. The cost of evaluating the system reduces once the company centralizes the system. Adoption of a centralized system reduces the chances of redundancy and duplication of data that affects data mining procedures (Zeithmaml et al., 1990). Improved data mining procedures create room for identification of business opportunities. It also eases the identification of issues during audit and remediation. Creation of a new system will cost less that removal of redundancy and duplication of data created by the decentralized system.
Coupling the division’s information systems improves the communication of the organization. Communication is a fundamental aspect of success for any business; moreover, they are crucial elements in the development of integrated business operations and units. The integration of the organizations processes brings forth increased productivity, innovation, and better returns. Establishment of a centralized system ensures more refined business practices through improved regulatory conformity, increased cost savings and quick delivery of new services (Reddick, 2009). Implementation of a centralized system is not an easy task; nonetheless it is necessary for the growth of the company.
Bardhan, P. (2002). Decentralization of governance and development. Journal of Economic perspectives, 185-205.
Batt, R. (1999). Work organization, technology, and performance in customer service and sales. Industrial & Labor Relations Review, 52(4), 539-564.
Fisher, J. G. (1998). Contingency theory, management control systems and firm outcomes: past results and future directions. Behavioral Research in Accounting, 10, 47.
Sherry Roberts is the author of this paper. A senior editor at Melda Research in research paper writing services if you need a similar paper you can place your order for a custom research paper from research paper services.
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