The telecommunications industry is experiencing economic pressure from Wall Street and stockholders; causing telecommunications companies, such as Global Communications, to re-evaluate their business. Global Communications has begun a process to recover from the downward trend by developing new services for small business and consumer customers. The plan also includes cost cutting methods to improve profitability.
The plan developed by Katrina Heinz, CEO, and approved by the board, calls for closing some technical support call centers and moving the jobs to India and Ireland as well as implementing pay cuts for those who are relocated to consumer call centers. The union and the employees were not part of the planning process. We will examine the impact of not communicating with these two very important players. We will also devise three end-state visions and review the gap between where Global Communications is now and where it wants to be.
Issue and Opportunity Identification
“Decision making is the process of identifying problems and opportunities and resolving them. This definition of decision making involves both identifying a problem – in other words, seeing that something is not under control and needs to be changed – and resolving the problem by implementing a process or procedure to make things run smoothly.” (Gomez-Mejia and Balkin, 2002).
Katrina, the CEO, identified two problems that needed to be addressed, how to increase profitability and cut costs. She realized the company needed to become a global player in order to achieve these. What she neglected to do was include two major stakeholders, the union and the employees. She did take into consideration the impact they would have on the plan and its success or failure. The union now has the opportunity to bring in other resources, such as the government, to delay any progress made toward closing plants, cutting jobs and wages.