edf40wrjww2CF_PaperMaster:Desc
Ms. Denise Danford
Strategic Review Committee Head
November 29, 2005
Re: Implementing changes to increase success
Dear Ms. Danford,
Upon reviewing your case, it is evident that, while a very successful company, many changes must occur in order to continue MACHO's success into the future. There are three main issues that are the basis for all underlying problems. There is a lack of communication at MACHO both vertically and horizontally. Additionally, it appears that there is a focus on cost reduction which is hampering innovation and, at times, the quality of products produced. Finally, there have been increased demands made by senior management to step up production levels and to manufacture multiple products simultaneously; however, these requests have not been accompanied with increases in available resources.
As a result of these issues, MACHO must change their culture, focus on being innovative while remaining efficient and must update the skills that their workforces possess. It is also important that employees' performance is more appropriately measured, thus I have outlined a solution to better measure performance so that progress toward greater success can be made visible and demonstrated on an ongoing basis. Please refer to Appendix I for an overview of the solutions and the underlying issues.
Culture Change
The culture that is currently embedded in MACHO is one which inhibits communication, both vertically between head office, managers and subordinates and horizontally amongst peers. The lack of communication brings rise to a scarcity of resources which should not exist. According to one manager, there is ...