Question
Universals Stationery and Office Products (USOP) is an established stationery and office supplies manufacturing company that is facing distribution challenges from the new superstores and
Universals Stationery and Office Products (USOP) is an established stationery and office supplies manufacturing company that is facing distribution challenges from the new superstores and discount merchandisers that were spreading rapidly. These growing superstores were changing the traditional distribution channels that used to be dominated by wholesalers and small retail stores. They were forcing the traditional manufacturers to improve their customer service. New companies in office supplies business were willing to cut prices and make use of new technology-enabled processes that the superstores favoured, such as electronic ordering and billing. Due to such growing trends, traditionally operated companies like USOP were losing their market share and their profits were on a decline. Realizing the need of the hour, Gautam Prasad, the CEO of USOP created a new position of director of information systems Gautam Prasad Dheeraj Pandey was appointed to the position. During the discussion of Dheeraj's job objectives and responsibilities, Gautam clearly informed his expectation on speeding up the order processing and Improving customer service. Knowing that the company's current order processing system was obsolete, Dheeraj decided to embrace technology and prepared a plan to automate the system.
He took Gautam's approval for this purpose and purchased new computer workstations and a software package to support it. The software was meant to allow the customers to order electronically. This, Dheeraj believed, would improve order processing, billing and inventory control. However, the equipment and software kept waiting to be used, even months after their arrival. This was because of the non-consensus of the managers from sales, production, accounting, shipping, and customer service, regarding the requirements of the new system, that was subject to a go-ahead from all the managers. Since these managers happen to be Gautam's peers, he had no direct authority over them. So, even though he encouraged them to cooperate, their meetings would invariably end up in heated arguments and accusations regarding who was However, the equipment and software kept waiting to be used, even months after their arrival. This was because of the non-consensus of the managers from sales, production, accounting, shipping, and customer service regarding the requirements of the new system, that was subject to a go-ahead from all the managers. Since these managers happen to be Gautam's peers, he had no direct authority over them. So, even though he encouraged them to cooperate, their meetings would invariably end up in heated arguments and accusations regarding who was responsible for the company's problems. Some even questioned the need for such an expensive new system. Meanwhile, Gautam was growing impatient due to the lack of progress. He told Dheeraj about his intention to see positive results after having spent a fortune on purchasing the new technology and expected the latter to figure out a way to resolve the issue, irrespective of the present hurdles. Thus, Dheeraj decided that t was time to take a different approach. He investigated the probable issues that caused delays in processing and filling of orders. He asked his staff to map the workflow from the time orders were received to the time the filled orders were shipped. As expected, a lot of unrequired activities were responsible for the bottlenecks that had been created. Removal of these would help speed up the process. This problem did not pertain to any one function but extended across functional boundaries and so changes needed to be made in all departments.
These preliminary results were shown to Gautam, who seemed to be on board with the need for drastic improvements, and so, authorized Dheeraj to start reengineering the process. Despite Gautam's support, Dheeraj knew that in order for these changes to be successful, widespread commitment would be required. To ensure this Dheeraj met with the managers of all the departments and sought their assistance in forming cross-functional task forces. Although he knew that one task force would be sufficient for the change process, he decided to involve as many people as possible, so that they would understand and support the process. A consultant was hired to advise and assist the task force int their work. Each task force was responsible for examining a different aspect of the problem-starting from analyzing the process, then meeting key customers to understand their requirement and expectations and finally visiting other companies to study how they processed orders more efficiently. The seriousness of the problems faced by USOP was realized only when all the departments started working together to understand widespread commitment would be required. To ensure this Dheeraj met with the managers of all the departments and sought their assistance in forming cross-functional task forces. Although he knew that one task force would be sufficient for the change process, he decided to involve as many people as possible, so that they would understand and support the process. A consultant was hired to advise and assist the task force in their work. Each task force was responsible for examining a different aspect of the problem-starting from analyzing the process, then meeting key customers to understand their requirement and expectations and finally visiting other companies to study how they processed orders more efficiently The seriousness of the problems faced by USOP was realized only when all the departments started working together to understand the system. This exercise helped them keep their biases aside, to come together and work towards finding ways to improve efficiency and serve the customers better. Each task force came up with their own set of recommendations to the steering committee that was made up of Dheeraj and the various department managers, Gautam would also attend all these meetings in order to stress their importance. Whenever the managers were at loggerheads and opposed a change, everyone turned to Gautam to take the final call, who would invariably support the unanimous suggestions made by the task forces.
As a result of these efforts, the company was able to get rid of the bottlenecks that hampered and slowed down the order processing previously. Now, the average number of days required to complete an order was reduced to almost half. Orders were now processed electronically, as a result of which, errors in the billing process were eliminated as well. USOP employees discovered how their efforts could actually bring about positive changes for the company-in fact, many of them volunteered to serve as teams that would continue to look for ways to improve quality and customer service.
Q. Why did Dheeraj fail in his first attempt to implement change? Evaluate the change leadership provided by the CEO
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