Your Assignment
· You are an outside consulting organization who has been retained by the CEO to fix the problems and make sure the mandate is driven throughout the organization. identify what strategic initiatives and changes you will recommend and the tactics to implement those strategies and changes based on this case study
New Product Development Process Improvement Case Study
Background:
Horizon Giftables, Inc. is a 35-year-old consumer products company that manufactures and distributes home accessory products and décor items through independent sales representatives and individual franchise’s. Horizon Giftables Inc., (HGI) has experienced a slow but steady ten-year decline in sales revenues, market share, and profits at the same time new competitors have entered their market space and experienced growth. For the first 25-years, HGI experienced consistent double-digit growth in both sales and profits. So the slow but steady decline has been masked to some extent by HGI’s past success. The U.S. market is mature but the international market is filled with opportunities if you have the right product mix portfolio which needs to include local market driven products and price points that fit the spending capabilities of the specific demographic. While the North American markets have declined, growth in HGI’s European markets has been strong and promising and the Asian and Latino markets represent future growth opportunities.
Organizational Structure:
HGI’s organizational structure consists of the CEO, CFO, Vice President of North American Sales and Marketing, Vice President of International Sales and Marketing, Vice President of R&D and Product Development, Vice President of Human Resources, Vice President of Strategy and New Business Opportunities, and Vice President of Operations. Although this senior management team functions in the capacity of the Executive Committee responsible for the development and implementation of the strategic direction of the company that will lead to sustainable growth in sales and profits, they are not a cohesive and collaborate team.
The New Product Development Process:
HGI’s strategic growth depends on replacing 40% of its product portfolio each year to keep the various product lines fresh and exciting for the field sales force. If you do not motivate your independent sales forces with exciting products that are priced appropriately, then your sales force will not be motivated to sell the full line of product offerings. They will focus on what they can sell and ignore the more difficult to move items, even though there might be new items offered in the product line that have a higher margin.
The new product development process is a liner process that is functionally controlled as it moves through the various phases of the product development pipeline.
Issues
Burning Platform Mandate from the CEO
Bottom Line Goals
Relationship Problems
As a consultant, I would like to take this project up guided by the framework called Blake Mouton Managerial or Leadership Grid.
If you see the top right extreme corner of the above grid, both the Concern for People aspect and Concern for Result aspect are high.
This is by far the best type of leader/manager, who can make sure to understand the needs of his team members and at the same time ensure that the team understands and are always aware of the targets and goals of the organisation and that they are stake holders to the result.
The trust and respect in this environment binds the team as an indigenous unit yielding very high quality of teamwork resulting in highest levels of efficiency and productivity.
Believe it or not, culture is top down in an organisation; Issues, like the Silo mentality, politics, poor interpersonal and interdepartmental communication, resistance to change, detrimental rigidity of processes, top management turnover, other derogatory symptoms, etc. mostly, if not all, trickled down from the top into the entrails of the organisation.
So, my task as an external agency trying to make amends is almost like fighting against the very family that is sheltering you and thinks highly of you.
The type of leadership will help me understand the issues and resolve them one by one.
First and foremost, I would need changes in the process, in terms of rigidity and ownership by stake holders.
Smoothening Communication between personnel involved in the process and between people to whom these personnel report hierarchically will be the next most important strategy.
Silo mentality cannot continue in places where communication between people are great.
Then, if you are talking to me directly and I am doing the same every now and then, no one can play dysfunctional politics behind us, against us, eliminating the derogatory issue from the system all together.
While I will have people write in what changes they think should be made to the system they work within to make them more comfortable and increase their efficiency, I will also make sure that the long term employees are not white elephants sitting there just to take their salary home, but rather are willing to use their experience of the organisation to guide the newer colleagues to make useful contribution to make the process work better.
Everyone needs to understand their KRA and need to compare and evaluate, take a self-assessment, of what they are doing as opposed to what they are supposed to do.
Not going into the ABCD of product development process within this company, it can be simply said people need to take ownership of their work and see that whatever they have done does not get wasted in the next steps.
This, of course, will be easier said than done, but only by way of continuously communicating between the person you took the work from and the person you are going to hand over to.
Bias has no place in decision making; It has be done based on facts, which the data gathered from the market, with honesty and integrity, can help you assimilate from.
The tactic to implement the change is to make each stake holder a leader by his/her own rights and bounds and KRA. That is going to be the key to the success of changing the whole system into a harmonious orchestra, which will be dynamic, not too rigid, but focused on getting the job done, on time and delivering the expected quality.
I am hopeful that the above will help you jot down point-wise, issue-wise, solutions and then put all together in your own language and style.
The prime solution is to select the kind of leadership that will work here. You cannot be a “work or perish” here, because the organisation is already too rigid and quaint, so the system may just break down.
Leniency, of course, is not an option, because, we have already witnessed what that can do to destroy a company.
So, the right leadership mix of empathy and firmness is going to do the job.
All the elements up there are asking for a change, but the toughest is to change how the top management, which includes the CEO, who has retained you to do all this, approaches and sustains under your pressures.
Your Assignment · You are an outside consulting organization who has been retained by the CEO to...
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