Employee morale as the decision criterion using communication and change management as the root cause. Identify one pros and cons relevant in the case. Avon is the world's leading direct seller of beauty and related products, operating in over 100 countries. Launched in 1886 when David H. McConnell founded the California Perfume Company, the organization was renamed Avon Products in 1939. Over the years, the company expanded its horizons And was listed on the New York Stock Exchange in 1964. Avon has 5.4 million Sales Representatives worldwide and 40,000 employees, 75% of whom are women. Avon Canada, founded in 1914, moved to Montral's West Ireland in 1961. It has a head office staff of 900, commonly known as associates, including the District Managers. The 72,000 sales representatives across Canada are self-employed. Seventy-five percent of its employees and 99.8% of its Representatives are women. Representative turnover is known to be high at 80%; the company therefore has to recruit about 57,000 new representatives each year. Avon Products Inc. is the number one direct seller in the world, posting sales of $ 9.9 billion in the US. In Canada, sales reached CAD$ 300 million, 44% of which are derived from beauty products and 56% from non- beauty products. Since 2000, Avon Products has adopted a more global approach to its operational structure, clustering markets in five main geographic regions. Avon Canada has therefore been working with its North American partners, United States, Puerto Rico and the Dominican Republic, to optimize work processes and business opportunities. One of the roadblocks to this optimization has been the fact that Canada sells 18 campaigns in the year compared to 26 for its partners. In 2006, the direction to takewas clear: migrate from the current 18 annual sales campaign to 26 as per The US model. This was identified as a key driver of growth for the company and creator of significant efficiencies achieved through harmonization of the structures, products, processes and size of product line. As for the Sales Representatives, albeit more work, a 26-campaign approach would result in more sales opportunities and better, less complex work schedules. It was the opportunity to redesign all business processes and to create a more simplified, more harmonized and more intense experience for the Sales Representatives, especially with the top players in terms of sales revenue. [CASE STUDY] CONTEXT Such a decision required major changes for employees in every department throughout the company, as well as major investments to support systems and operations. For example, the marketing department plans, designs and produces the sales brochure; each campaign became quite a challenge for all employees involved in this business process. Additionally, one questions whether the distribution channel and independent contractors would be able to deliver products as usual within the compressed time frame. Furthermore, the finance department had to look into the risk factors facing a possible drop in sales volume. Finally, the information technology group had to evaluate the need to redesign technology or to adjust its platforms to support such a change. Today, all key concerns have been addressed and the project plan is on target to launch the final phases in April 2008. The company has always abided by the same five values since its inception: trust, respect, belief, humility and integrity. Avon has carved a niche with products exclusively for women and has extended this focus through generous donations in support of the crusade against breast cancer. The Human Resources Department had its role to play throughout the overall process. Its action plan was targeted primarily towards communications, mobilization, retention, recruiting and change management. The Canadian Avon HR structure is composed of one Vice President, two generalists, one recruiter and two non management employees. They chose to assume a leadership role where close partnership with all departments were required to form strategic teams able to direct the magnitude or realities of changes to come. The main HR targets for an organizational development intervention were the District Managers, who represent the critical link to help the Sales Representatives get over the emotional impact of the proposed changes. This includes identifying the obstacles the Representatives would face and communicating the rationale behind the changes in order to ensure the continuity of sales activity. This was viewed as quite a challenge since the Sales Representatives are not Avon employees; they have no company benefits and there is no employee- employer relationship. Therefore, Avon is depending on strong leadership capabilities of their District Managers to maintain the integrity of the sales process and to continue to recruit and motivate their Sales Representatives, who were viewed as the key stakeholders in undertaking the change and ensuring a success for Avon. As Avon employees, the District Managers receive a compensation package that includes a base pay plus commission on sales. As part of the original HR action plan, the compensation and rewards programs had to be reviewed and adapted, while engagement and training had to be reinforced. From idea to reality: 2008 represents the crucial year to complete the migration from 18 to 26 sales campaigns, and have it become an operational reality . However, Avon still faces a number of strategic challenges. Among these, its operating structure needs to be well- established to face growing competitive global markets and overall organizational effectiveness remains to be achieved. Furthermore it is determined the key success factor that a strong leadership culture of trendsetters must remain in place and present at all times. ...... it is determined a key success factor that a strong leadership culture of trendsetters must remain in place and present at all times. Assuming that the key concerns related to the original 2006 migration project are properly identified and the critical organizational development steps undertaken have been successful, it is now time to plan the activities necessary to support the aftermath" to ensure ongoing engagement, stability and success for the whole change initiative, while continuing to respect the original Avon values