By $2010,$ Jones and Shephard Accountants, Inc. $($J&S$)$ was ranked a midsized company in size by the American Association of Accountants. In order to compete with the larger firms, J&S formed an Information Services Division designed primarily for studies and analyses. By $2005,$ the Information Services Division $($ISD$)$ had fifteen employees.In $2016,$ the ISD purchased three minicomputers. With this increased capacity, J&S expanded its services to help satisfy the needs of outside customers. By September $2020,$ the internal and external workloads had increased to a point where the ISD now employed over fifty people.The director of the divisions was very disappointed in the way that activities were being handled. There was no single person assigned to push through a project, and outside customers did not know who to call to get answers regarding project status. The director found that most of his time was being spent on day$-$to$-$day activities such as conflict resolution instead of strategic planning and policy formulation.The biggest problems facing the director were the two continuous internal projects $($called Project X and Project Y$.$ for simplicity$)$ that required month$-$end data collection and reporting. The director felt that these two projects were important enough to require a full$-$time project manager on each effort.In October $2020,$ corporate management announced that the ISD director would be reassigned on February $1,2021,$ and that the announcement of his replacement would not be made until the middle of March. The same week that the announcement was made, two individuals were hired from outside the company to take charge of Project X and Project Y$.$ Exhibit I shows the organizational structure of the ISD.Within the next thirty days, rumors spread throughout the organization about who would become the new director. Most people felt that the position would be filled from within the division and that the most likely candidates would be the two new project managers. In addition, the associate director was due to retire in December, thus creating two openings.On January $3,2022,$ a confidential meeting was held between the ISD director and the systems manager.ISD director: Corporate has approved my request to promote you to division director. Unfortunately, your job will not be an easy one. Youre going to have to restructure the organization somehow so that our employees will not have as many conflicts as they are now faced with. My secretary is typing up a confidential memo for you explaining my observations on the problems within our division.Remember, your promotion should be held in the strictest confidence until the final announcement later this month. Im telling you this now so that you can begin planning the restructuring. My memo should help you. $($See Exhibit II for the memo.$)$