Question

carefully review the case study and prepare 2000 word answer

objectives -

• To identify needed changes in structure that will be required to support changes in strategy.
• To illustrate how organization structure contributes to strategy.

A.P. Nichols, a distributor of parts in the maintenance, overhaul, and repair industry, is facing the need to realign its strategy to cope with a competitive environment. A key component of this realignment involves changes to the culture and compensation of its sales force while simultaneously building sufficient sales capacity to take advantage of opportunities in key markets. The case focuses on the newly hired vice president (VP) of sales, who is tasked with leading the change initiative. Immediate issues facing the VP include: 1) alignment of the client service representative (CSR) team to the strategy and new model; 2) infrastructure and the need to make a commitment to invest in bringing it up to a best-in-class level; and 3) building a critical mass in the CSR group.

Learning Objective:

The case can be used in undergraduate, graduate, or executive classes in strategy implementation and change management. The case illustrates many of the challenges associated with strategic change, and focuses specifically on the issues of culture, capacity, and competence. The case also challenges students to deal with potential trade-offs and conflicts, such as whether the VP should compromise on the new compensation scheme or risk losing a significant portion of his client base if CSRs defect from the firm.

Issues:

Sales Organization, Change Management, Income Determination, Compensation, Sales Management

Disciplines:

Organizational Behaviour/Leadership, General Management/Strategy

Industries:

Manufacturing

Setting:

United States, Large, 2011

Intended Audience:

Undergraduate/MBA

Answer 1

Introduction:

Most companies these days strive to achieve market targets as that is the only way to maintain profitability. In this case study, we will look at how AP Nichols, a distributor of parts in the maintenance, overhaul, and repair (MRO) industry that is facing the need to realign its strategy to cope to a consolidating competitive environment. A key component of their realignment involves changing the culture and compensation of their sales force while simultaneously building sufficient sales capacity to take advantage of opportunities in their key markets. The case focuses on the newly hired vice-president (VP) of sales, who is tasked with leading the change initiative. Immediate issue facing the VP include: alignment of the client service representative (CSR) team to the strategy and the new model, infrastructure and the need to make a commitment to invest in bringing this up to a best in class level; and building a critical mass in the CSR group. AP Nichols is a known Chicago based distributor of industrial supplies such as fasteners, bearings, abrasive and cleaning supplies, which were used by factories which were used by factories for maintenance, repairs and overhaul. The paper will furthermore talk about how each strategy was achieved. This will include key components in organizational development as certain keep processes will have to be used and implemented. We would explain how A.P Nichols implemented its process with hiring CSRs and showing how it transformed its self. We the summarize each aspect by discussing how they sustain through organizational development.

For the VP of sales to achieve its goals set. It had to do a lot ensure that the team was aligned to its strategy and goal. This is one of the most difficult task for any organization as you are dealing with competitors and other driving forces. A clearly defined and shared understanding of strategy is required before resources can be optimally aligned. Problems arise where strategy is insufficiently defined or remains trapped in some executive office in a shroud of mystery, inaccessible to those needed to deliver it. A. P Nichols strategy was slow in the beginning because it had to ensure its CSR were fully trained and were the right fit. After the crises, the had to build and ensure all the CSRs were aligned. Their structure to allow CSR to interact with clients was a big plus for them. That model helped increase their market share in a market that had new players and competitors. The VP of sales know what he needed as the first step is to ensure you have the right fit and put together a process.

As we have already seen today’s market, CSRs is quickly gaining corporate mindshare with increasing number of companies in almost every industry are adopting CSR principles and initiating CSR programs. The realization that companies can and should play an important role in their communities and across the nation and around the world while making a profit is quite a step up from the old belief that the sole purpose of companies is to increase value for shareholders. Even though that is the goal. In this A.P. Nicoles. As mentioned above, their first strategy was to find the right fit that is aligned with them polices. With this change they had to put together a change management plan. As mentioned by the VP of sales. Change management is one of the most important things in any process. As it needs to be gradual process. The changes in the organizations occur as a reaction to changes in the organizational environment. To have positive effects the changes must be anticipated, planned, managed, coordinated and controlled, attributes related to the organization ‘s management. They are certain drivers that Because changes can vary depending on the scope and complexity. so that some may be minor and unnoticeable; others have major effect on the organization. Often, small-scale changes, sometimes unnoticeable, or staple can produce a serious impact on the organization's activities more than large-scale changes. Klein understood this complexity. As we know in every change process measuring metrics is important. The metrics is what tells if they have achieved the goal set and if the CSRs are adapting to the change and process. Normally this process is done periodically or at the end of the change process in place to help achieve the goals set.

This Measurement normally should be considered during the planning of change and before any action is undertaken. Measurement also should provide guidance toward goal achievement and alert managers to the need for mid-course correction if the change effort strays from its intended path. Measurement serves multiple purposes and it served A.P Nichols well. The questions Klein ask himself is that:

Where are we? Understanding that they need to train the CSRs and let them adopt the company model. Access the current market as there are changes with other organizations and type of product “Self-knowledge is the first step towards change”.
Where do we want to go? Is A.P Nichols trying to gain a big market share and with how many employee. As stated in the case study, by late 2009 is was clear to Dufour that Nichols must get a larger group of CSR’s arms of its corporate goal of being one of the best distributors in the united states. Because the baselines requirement of change management is to plan and prepare. Certain things will have to be done as successful implementation of change requires acceptance that communication and engagement are the keys to effective change. So, certain question will need to be asked to ensure if they wanted to through this change. Such as

How ready are we to get started? They had to look at their current workforce and strategies on the ability to build. For example, not moving straight from aspiration to action on the employees. In my opinion, you can’t know what actions to take if you don’t have a clear view of the capabilities and mindsets you’ll need to develop to make the change stick.

What practical steps do we need to take? The fact that they must be clear and concise with each employee and how much they could work in within their boundaries. Even though in the case of A.P Nichols they had to give the CSR’s more room to work with their clients. What it did was improve both performance and health of the few CSRs that they had. Other question you will ask in planning this change will How do we manage the journey? Implementing a portfolio of performance initiatives can take different forms – everything from running pilots to “big bang” roll outs. But too often leaders underestimate the amount of energy that is needed to roll out large scale change. Furthermore,

How do we keep moving forward? Not creating a risk that the company won’t be able to sustain. A.P Nichols took its performance seriously by as said in in the case study, by 2011 they had decided that the significant change will be needed in certain key areas. Lastly, leading to the final question.

How do we avoid mistakes? To achieve the success of the roll out they had to ensure that too many mistakes were avoided. Change in business is unavoidable and often with it comes change management mistakes that can negatively affect some of the benefits the change was supposed to bring in to a business or organization. However, if they start to late they lose the risk of getting in to the market with all the competitors and loosing. The CSR’s would not be getting more clients even though they had some loyal customers coming back to buy. What the VP of sales put though motivated the CSRs and employees to perform desired new activities. Such as going the extra mile to the clients. They also had to have a winning mind. To achieve this process the first goal was to have new CSRs and align them with the strategy. Simply put the change will be no good without a winning strategy.

The biggest thing that was planned and is the most important in any change process is clear and precise communication. “Communication is recognized for its role in effective buyer-seller relationships and specifically for its role in conflict management.

Change management communications need to be targeted to each segment of the workforce, and delivered in a two-way fashion that allows people to make sense of the change subjectively.

Communication is paramount when trying to raise the level of understanding in your organization. With A.P Nichols. The key to communicating is to use multiple platforms or media to communicate the same message. Klein, probably had to communicate the same message three to six times, before the message is heard and understood to the CSRs. The constructivist approach states that communication is a social process of interaction and/or interpretation that gives a sense and meaning to social reality, organizational actions, events and organizational roles and processes. This concept of communication is consistent with the resource‐based theory of the company.

The constructivist approach states that communication is a social process of interaction and/or interpretation that gives a sense and meaning to social reality, organizational actions, events and organizational roles and processes. This concept of communication is consistent with the resource‐based theory of the company.

Sometimes people in the organization may need to hear a message over and over before they believe that this time, the call for change. As the years went by their mission was achieved. It takes time for people to hear, understand, and believe the message. And if they don‘t particularly like what they hear, then it takes even more time for them to come to terms with the concept of change. That’s why A.P Nichols ensured that his CSRs were in line with its methods. All change in organizations is challenging, but perhaps the most daunting is changing culture. When people in an organization realize, and recognize that their current organizational culture needs to transform to support the organization’s success and progress, change can occur.

In conclusion, A.P Nichols understood how to transform is company to one that could sustain its self in the market using of the organizational procedures. As stated above his first step was to understand what was at stake and then to use the process in place. Such as implementing a change management structure. Knowing that it will take time and years to build the team that he wanted as well as keep clients. This only way to maintain profitability throughout the financial crises. They also focused on one type of process, technology base doddering that could bring ease to their clients. An implementation process and strategy that he also got his CSRs to believe in. This made clients stick with them rather go to other competitors. This could never have been achieved if careful communication strategies were not put in place. The need for risk migration was necessary as they were not sure if it was needed to get more CSRs or maintain a quality number.