Case 9.1: Implementing a Change

Purpose:
The purpose of this case it to learn how to communicate change effectively in an organization.

Situation:

1. You are advising the CEO and founder of a 150-person telemarketing firm. The major divisions of the company are: Marketing, Telemarketing, Distribution, Information Systems and Computing and Administration.
   
   The company has been quite successful in marketing nuts, bolts and other hardware to manufacturers across the nation. The company continues to grow since its founding 12 years ago. The CEO credits the company's "customer focus" as the major reason for sustained growth.
   
   
2. The CEO believes that the company's next growth spurt will be the result of improved computer technology. Accordingly, the firm is set to test market the "scanner technology" which is a device that acts much like the scanner at grocery stores in which items pass over computerized bar codes.
   
   
3. The firm would like to use this technology with major accounts that purchase many of the firm's products. Because orders would no longer be taken over the phone and recorded by hand, it would increase accuracy and save both the firm and the customer a significant amount of time in processing orders.
   
   
4. The technology involves giving the client the scanner to pass over bar-coded bins in their warehouse and transmitting the data directly to your company's computers
   
   
5. The CEO is personally committed to a long-term employment policy. He is well regarded by employees and is known to be a "gifted communicator" who is always coming up with new ideas. Once he is sure that the idea will work, he moves forward quickly with aggressive and detailed timetables.
   
   
6. The last time the firm instituted a major change, there was an increase in personnel through a redistribution of employees. Yet, despite the CEO's best efforts to communicate effectively, many employees were quite anxious and rumors ran rampant through the organization.
   
   
7. In general, the change will have the most impact on the telemarketing department which is 50% of the work force. Instead of selling and taking orders, these employees will be more involved in servicing customers with things such as dealing with complaints.
   
   
8. At this point, the vice presidents are aware of the change and are quite excited about it. Employees in the computer department have already begun to develop the appropriate software. Other employees have only heard about the program through the grapevine. The CEO wants to avoid the mistakes of his last effort.
   
   
9. At this stage the firm is testing out the concept with only five clients. The company plans to proceed as follows:
   1. Test in five large markets.
   2. Revise based on feedback.
   3. Market in other large markets.
      
      
10. As the consultant, your objective is to advise the CEO on how to proceed at this point.

Objectives:

1. Using this information, decide how and when you would go about informing employees of the changes. Also, specify what information they should receive.
2. Determine what channels of communication you would use.
3. Determine how you would present your plan to the CEO.
4. Most importantly, provide the rationale for all of your choices.