Defining
Problem Statement
Phone System Inc. must increase profitability, employee diversification, and job satisfaction by expanding operations to new markets where labor costs are potentially cheap and technologically oriented customers are readily available. Hence, the closure of one of the operating sites is necessary to pursue the company’s goals and objectives. The Board of Directors proposed changes to open a facility in India that will result in the closure of one of the branches in the United States, which is likely to cause conflict among stakeholders, employees, consumers, and executives. I will evaluate the root of the conflict impacts of various decisions on stakeholders, propose changes, and assess their efficacy in preventing conflicts in the future.
Stakeholder Analysis, SIPOC Process Map
Shutting down one operation affects company leaders and other stakeholders, including employees, investors, government agencies, vendors, customers, local communities, and competitors. A SIPOC map analysis weighs the benefits against the shortcomings of the process of identifying causes of conflict (Brown, 2019). To open up the new facility, Phone System Inc. requires financial capital that will result in the loss of one branch in the U.S. SIPOC analysis also measures the proposed change’s impact on suppliers and customers, whereby Phone System Inc. is the customer in this case and the supplier’s stakeholders, employees, executives, and customers. The quantitative variables likely to contribute to the conflict are profits and losses following the process, whereas the qualitative variables are reputation, ethics, and culture.
Measuring Performance
Identified Variables
Graphical representation of profits and losses from financial statements will provide quantitative data for feasibility analysis of the process. Qualitative data will be collected using surveys and questionnaires presented in charts, histograms, and tables that will provide customer and supplier views to indicate the effects of the process on reputation, ethics, and culture. Profits, financial losses, ethics, reputation, culture, and leadership effectiveness are the SIPHOC variables for the proposed process (Ali et al., 2021). The sizeable Indian market is expected to improve profitability, and from an ethical perspective, venturing into the Asian market will improve inclusivity and diversity. Phone System Inc.’s organizational values are diversity in the workforce, innovation in the process, and product profitability. Opening a branch in India will enhance corporate culture since it will likely increase profitability and diversity.
Ishikawa Diagram, Critical Variables
Possible failure of the idea would result in significant financial losses and one of the branches. Shutting down a branch in the U.S. will ruin the organization’s reputation for prioritizing profit over employees. Alternatively, closing the Mexico branch will affect the organization’s reputation for diversity. The culture variable needs further analysis since the different facilities vary in performance and employee satisfaction. The proposal to close one site is causing poor leadership. Critical variables determine the success of the organization and, therefore, crucial changes. Profitability ensures the long-term survival and growth of the business. Corporation ethics regulate acceptable conduct that is beyond government control. Business culture guides decisions and actions to determine consistency and direction. The reputation determines the external brand image to attract investors, partners, and customers.
Analysis
Root Causes of Conflict
Poor leadership and management are the significant causes of conflict for Phone System Inc. Opening a new branch at the expense of another will affect the organization’s reputation, culture, and worker relations. Closing an operating facility to venture into a new market is not the most viable tactic. Moreover, some of the functional facilities in the U.S. are challenged by poor employee satisfaction, profitability, and leadership. The organization already suffers from poor leadership and communication, affecting decision-making and implementation of change. Therefore, the dialogue between team members was ineffective, concluding that closing the Mexico branch was inaccurate.
The “Five Whys” to Stakeholders
I will engage all stakeholders with the “Five Whys,” including organization leaders, employees, investors, government agencies, and vendors, to understand how they feel about downsizing one facility to open another. In this case, the five whys are: Why did the corporation decide to open a facility in India? Why did the higher management decide to close one American branch? Why did the company choose this method to get financial capital? Why did they not get funding before initiating the project? Why did the management first resolve poor leadership and the challenges existing in the facility? The additional questions I may ask are: Why did the team conclude with the termination of the Mexico branch despite it being promising? Why did they not engage other stakeholders, such as employees and customers, in their decision?
Improve
Corrective Actions and Quantifiable Metrics
Poor leadership style, communication, and relations are the actual problems that Phone System Inc. should resolve first. Transformational leadership style, effective communication, and engagement are the proposed corrective actions for Phone System Inc. I would recommend that the president adopt a transformational leadership style to improve communication and relations among its staff. I would also propose that the company collect enough funding to initiate the project without closing a branch. The quantifiable metrics to assess the impact of imposed changes on profitability or losses. Surveys and questionnaires can be used to collect qualitative data from stakeholders, which is then statistically analyzed and presented in charts, tables, and histograms.
Areas of Resistance, Leadership Styles, and Team-building Processes
First, the proposed change in leadership approach is expected to be neglected by the board president to maintain his status quo. Secondly, if the president decides to close one of the branches, the customers of the closing subsidiary may rebel and give the company poor reviews. The third resistance is from the employees who aren’t ready to lose their jobs if the directors uphold their decisions. I recommend servant leadership for junior executives. The Tuckmans Team Development Model will provide a blueprint for collaboration and effective communication in the organization in five stages: Forming, Storming, Norming, Performing, and Adjourning. I recommend a participative leadership style and Tuckman’s Team Development Model.
Controls
Ethical Cultural and Legal Variables
First, when applying Tuckman’s team development model, intensive conflicts may arise during the Storming stage. The decision to derail investing in India may limit inclusion and diversity, which are critical cultural values for Phone System Inc. Alternatively, closing the Mexico branch, as suggested by team members, would affect the organizational culture of diversity and inclusion. A transformational leadership style without effective communication and collaboration will likely increase the likelihood of conflict and inhibit swift decision-making. If the management upholds the decision to close one branch, it may result in lawsuits from employees and the state. For instance, completing the Minneapolis facility before the due time of the retraining grant awarded would result in lawsuits.
Organizational Values and Gap-Analysis Strategy
Phone System Inc. can identify its organizational values by reviewing its strategic business plan, goals, Key Success Factors, and competitiveness. Specified values can be validated through consultation with key stakeholders. The organizational values ought to align with the personal values of the various stakeholders to reduce the potential for organizational dissonance (Ali et al., 2021). The values should meet the needs, create great fulfillment, and give stakeholders a sense of belonging (Kerzner, 2017). A gap analysis strategy will assess the compatibility between the embraced and enacted values. All-level employees from all sites will be requested in a survey to provide a numerical rating on the organization’s diversity and inclusivity. The investors and consumers will also rank the organization’s diversity and inclusivity level.
References
Ali, B. J., & Anwar, G. (2021). Administrative Crisis: The Role of Effective Leadership Styles in Crisis Management. Ali, BJ, & Anwar, G.(2021). Administrative Crisis: The Role of Effective Leadership Styles in Crisis Management. International Journal of Advanced Engineering, Management and Science, 7(6), 31-41. Web.
Brown, C. (2019). Why and how to employ the SIPOC model. Journal of business continuity & emergency planning, 12(3), 198-210. Web.
Kerzner, H. (2017). Project management metrics, KPIs, and dashboards: a guide to measuring and monitoring project performance. John Wiley & Sons.
Yu, C. M., Huang, T. H., Chen, K. S., & Huang, T. Y. (2022). Construct Six Sigma DMAIC Improvement Model for Manufacturing Process Quality of Multi-Characteristic Products. Mathematics, 10(5), 814. Web.