Gap Analysis: Global Communications
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Gap Analysis: Global Communications
“Change is here to stay” (Egan, 2005, p. 16). Global Communications is faced with implementing change. Whether the change is the best decision or not, management has decided on a plan. Now Global Communications’ management is faced on how to effectively and successfully implement this change. Communication is the best answer. “By planning for and communicating the details and benefits of the change, you speed up the commitment. This means looking at each affected position (or person), and figuring out how specifically the change will benefit them, and also what their concerns and fears may be” (Egan, 2005, p. 16).
Situation Analysis
Issue and Opportunity Identification
Global Communications has fallen victim to the high competitive downfall of the telecommunications industry. The value of their stocks has fallen over 50 percent. In order to stay competitive in this industry, Global Communications has come up with a two part approach to enhance their business. First, they plan to offer new services and packages to their customers, especially their small business and consumer customers. Second, they have identified ways to cut costs in order to improve their profitability.
This plan in itself also offers its own problems to resolve. In order to cut costs, the stakeholders have decided to outsource some of their technical call centers to India and Ireland. By moving the call centers overseas, Global Communications will be able to offer their customers with more sophisticated technical support for cheaper. This move will provide Global Communications with a 40 percent reduction on costs.
The move to outsource some of the call centers presents the problem of what to do with employees who are currently in that department. Some of the employees affected by the move will be afforded the opportunity to remain with Global Communications; however, it will mean a 10 percent cut in salary. On the other hand, this will cause some of their employees to lose their jobs.
In addition, the union is opposing this move especially since recent contract negotiations resulted in a 20 percent reduction of education and health benefits. The union feels that this movement would violate their recent contract negotiations because they were not informed of this plan.
Stakeholder Perspectives/Ethical Dilemmas
There are many stakeholders involved with this decision. Most of the stakeholders appear to agree the outsourcing of the call centers will be a benefit to Global Communications. However, they all do not agree on how it should be implemented.
To begin, Katrina Heinz, Global Communications Chief Executive Officer, believes outsourcing some of the call centers to Ireland and India is the best plan of action to increase profitability and to become more competitive. Katrina purposely did not disclose details of this plan until the board approved it. However, she wants the best course of action in place to achieve this plan. Katrina believes the initial lay off of some of the current employees is a needed set back to achieve the greater goal.
Sy Rodriguez, Executive Vice President of Consumer Marketing and Sales, is mainly concerned with the affect of outsourcing the call centers overseas. Sy is concerned about the employees who will be directly affected by this move. He believes this will affect the morale of the employees and does not wish to darken Global Communications’ reputation for treating its employees well. Sy also believes Global Communications is obligated to keep its employees informed.
Nancy Everhardt, Executive Vice President of Small Business and Marketing Sales, believes outsourcing some of the call centers will benefit Global Communications by providing better customer service. Customers, especially in the small business, want customer service agents who are more technical and knowledgeable. Ireland and India can provide this expertise for cheap. Nancy also believes the strategy plan should be communicated to the employees. She also would like to see the company help offset the cut in salary with a 15 percent retention bonus and the opportunity to discuss raising salaries in three years if Global Communications proves to be profitable after this move.
Joel Thompson, Executive Vice President of Human Resources and Public Relations, agrees with Sy Rodriguez. Global Communications should indeed communicate with the employees and the union. Joel also believes management needs to clarify the best way to handle the employees who will be losing their jobs and the employees who will be afforded the opportunity to remain at