Question
Read the paper below and write its conclusion into one paragraph: Industry Introduction and Culture Due to recent acquisitions, World Strides has experienced overlapping roles
Read the paper below and write its conclusion into one paragraph:
Industry Introduction and Culture
Due to recent acquisitions, World Strides has experienced overlapping roles resulting in decreased efficiency and the inability to be flexible with pricing. We have experienced declines in sales and revenues specifically on the American High School Theater Festival Program (AHSTF)--a program offered to high school theater groups to perform during the Festival Fringe in Edinburgh, Scotland. This program has historically generates approximately $6 million in revenue each year and has tremendous potential for expansion and growth.
My Vision for Immediate Change
In 25 years, our process has not changed – past attendees and colleges nominate high school theater programs. Sales reps then contact these teachers to encourage them to submit an application. The Directors apply to attend the 2019 Festival, a committee reviews their application, and groups are notified of their selection in March. Once accepted, they must send in a deposit and begin making payments; however they will not know the price of their 2019 program until November of 2018. In 2017, the per-person price was $6800, therefore groups with 20-25 people need to rise over $140,000. As our cost continues to rise annually, the number of attendees has steadily declined. To make matters worse, a competitor has entered the market targeting our renewal customers offering programs for $4200 per person. Approximately 35% of our existing customers are renewals; therefore the impact to our revenue is devastating. The structure, pricing and processes used to market and deliver this program must be revised in order to maintain our competitive edge, find new customers and to continue to generate a profit.
Burning Platform
In 2 years, our price has increased by 10.5%, yet total travelers have decreased by 52% (1447 in 2016 to 688 in 2017) and revenues have decreased by 21% ($6.1m in 2016 to $4.8m in 2017). If the competitor takes 1/3 of our current customers, we will lose $1.6m in revenue plus any additional losses we will incur based on the current downward trend. Seven renewal groups are currently considering traveling with this company which strengthens my argument for the need for immediate change. The presentation of the numbers will create my burning platform and capture the attention of the CEO/Executive Team through honest discussions substantiated with feedback from our renewal customers (www.forbes.com).
Selecting My Guiding Coalition
The Guiding Coalition will include a diverse team of leaders from multiple departments who are credible and motivated to drive change (Kotter, 1996). This team will include individuals from Marketing, Sales, Operations (specifically individuals from some of the new companies we have acquired that specialize in international travel so we can leverage their current negotiated contracted rates), Pricing, Finance, and Education. I will include several members of the Executive Team to give our coalition the power we need to implement our changes quickly. These key members willhave an emotional and financial commitment to the success of this program (Kotter, 1996)
Developing a Clear Sense of Shared Vision
The ultimate goal of my Guiding Coalition is to create a clear sense of shared vision by revising the marketing, sales and delivery of the AHSTF Program to increase participation, recapture market share, and increase revenues (Kotter, 1996). I will perform a SWOT analysis which will generate many suggestions to be considered, however I propose the following changes: 1. Process- Expand our list of potential Theater Directors to give more schools the opportunity to apply. I recommend that we purchase a new list and invite these schools to apply instead of having the schools nominated. 2. Pricing – Leverage our existing contracts in other divisions to maximize efficiency and lower our operating costs. This will enable us to reduce prices to be more competitive, and we will also be able to announce our pricing earlier. 3. Sales Strategy – By eliminating the nomination process, the sales team will be able to begin their calls earlier. 4. Competitive Focus – I will identify features that are unique to our program. I propose that we include one free college credit to the participants which has previously been offered for an additional fee. I will also expand and highlight our college fair which occurs during this event. AHSTF participants have an opportunity to meet with College Theater Directors who are recruiting for potential theater students.
Communicating the Vision
Once the vision is created, it will be communicated frequently and used whenever decisions are made that involve the AHSTF Program (www.inc.com). The team needs to feel free to ask questions about the change initiative and these concerns must be addressed openly and honestly (Kotter, 1996). Frequent updates including training materials, templates and talk tracks, and any other helpful program information will be made readily available to everyone. During this phase, walking the talk is critical to obtain buy-in from the organization.
Removing Obstacles and Barriers
Several members of the sales team will be removed from the project because they have negative attitudes and do not put forth the proper effort. The Coalition will be periodically analyzed to help members understand the vision and to ensure they are empowered to drive forward the necessary changes. Any members who continue to resist will be removed from the project (Kotter, 1996). Additionally, the compensation plan will be changed. The current plan pays on the number of total travelers, however the goal of the reps is to convince teachers to submit an application. The existing plan pays on a metric that the rep has no control over which creates apathy. The new plan will pay on applications submitted instead of the total number of participants.
Creating Short Term Wins
While the ultimate goal is a long-term one, setting smaller targets that are easily achievable will help further motivate my team (Kotter, 1996). A gift card and public recognition for each rep for their first application will be an easy way to create positive momentum and to “celebrate the small stuff” (www.forbes.com). The restructuring of the comp plan will reward individual performance while the secondary team-based performance payout will encourage the team to work towards a common goal.
Consolidating and Building on the Gains
To achieve long-term change, I will analyze every win to identify what went well as well as what areas need improving. This will allow my team to build on the momentum we have created and to continue generatingfresh ideas (Kotter, 1996). My objective is to increase sales, however I want to create a desirable program that offers lucrative compensation and attracts the most motivated sales staff. I also want to expand our offerings to include performance opportunities to other festival locations.
Anchoring the Change
The progress made expanding this program will be communicated throughout the organization by sharing success stories, testimonials from customers, and ensuring that the entire company recognizes the key members of the Guiding Coalition who were instrumental in creating the successful changes. The company’s leaders must continue to support our efforts so the changes we have implemented become imbedded in our organization’s corporate culture (Kotter, 1996). This will be accomplished by making certain that the CEO includes the AHSTF Program update during the company-wide Communication Meetings. Other opportunities to recognize key committee members such as featured highlights in our corporate newsletter as well as nominating committee members for service awards through our HR Department will be utilized.
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