In order to implement the change process within the company, it is extremely important to transform its main aspects. This is necessary because all the structures and processes of the company strive to maintain the status quo (Kotter, 2012). In this regard, it is critical for an organization to transform its business processes, structure, roles, workforce deployment, performance indicators and address potential barriers. Therefore, VanDyck Medical Equipment LLC should:
- As part of the company’s business processes, it is necessary to reduce the cost of its products. This can be achieved by streamlining supply chains, increasing employee productivity, reducing material and transportation costs, and innovating for long-term value;
- Within the organizational structure of the company, the focus should be on the decentralization of responsibilities through the redistribution of roles and assignments. It is necessary to give middle managers more decision-making power, as well as simplify reporting processes for more efficient processes;
- Work roles need to be more flexible, and employees need to perform a wider range of related tasks, which requires redistribution of responsibilities and assignments;
- In terms of workforce deployment, the company should look at reducing the staff of permanent employees and hiring a number of project teams, as well as outsourcing the most costly processes;
- Key Performance Indicators (KPIs) should include aspects focusing on work efficiency and cost reduction. In particular, it is necessary to include indicators such as the number of products produced and sold, products delivered on time, cost of goods sold, gross profit, as well as capacity utilization.
The possible obstacles within the planned changes may be the insufficient competence of management and employees. In addition, there is a threat that the company does not have enough necessary technologies to create more efficient production. In order to overcome barriers, external consultants such as employees and leadership development specialists, as well as consultants for the technical transformation of the company’s processes, should be considered.
As part of transforming the “software” of the organization, it is necessary to:
- For middle managers, assessment is important to focus on financial and employee performance. In particular, you should set goals for them to improve operating cash flow, accounts payable turnover, cash conversion cycle, as well as to increase employee productivity.
- Staff individual development plans should focus on improving professional skills and knowledge, as well as expanding decision-making power;
- Training program development should be conducted with the involvement of specialized consultants;
- Training program implementation should be conducted depending on the needs in the specific skills of employees.
The main obstacle in this regard, which should be expected, is the lack of engagement leadership and management. This can lead to inefficient development of employees and adherence to performance improvement plans. These aspects are the primary problem in the implementation of transformations for the company at the moment. It is necessary to involve such external consultants as trainers for developing leadership skills, as well as for expanding the decision-making power of employees.
IT solutions can significantly increase the efficiency of the company in terms of downsizing:
- Enterprise Resource Planning (ERP) allows providing more efficient business processes and eliminate potential errors;
- Customer Relations Management (CRM) will help management more closely track the effectiveness of customer interaction, as well as optimize the product line;
- Workflow management will optimize the activity of employees, as well as the process of distributing work tasks;
- Document management will provide the company with faster document flow and minimize the risk of errors.
IT solutions can also be applied in knowledge management:
- Capturing position know-how through better activities automation;
- Capturing position requirements through better categorization of activities;
- The company may use multimedia materials for trainings;
- Providing internal eLearning solutions.
The possible obstacle in this situation is the lack of skills and size of the IT department. In this regard, the company needs to consider either hiring additional employees or outsourcing this area, which can be easier and cheaper in modern conditions. In any case, it is necessary to hire external consultants to determine the necessary technical innovations, as well as the potential expansion of the IT department.
Reference
Kotter, J. P. (2012). Leading change. Harvard Business Press.