Case Study for Organization Behaviour Essay Example

Case Study for Organization Behaviour Essay Title of module: Organisational Behaviour Name of the assignment: Final Exam Organizational Behavior Final Exam 1. Summary of the problem as per the case study CEO is resigning due to a brain tumor and the firm needs an interim CEO to run the firm until they find a suitable replacement. As I am the CEO I, What will I do immediately? How I will communicate with my current department and the rest of the company? What will be my key focus? Why? How will I accomplish your goal? 2. Introduction In light of the key aspects (leadership, management, structure and culture) and using the assessment tools I have to make a plan for what I should do as a CEO. 3. Problem analysis: To be in such position with no prior warning means that we need immediate work to understand the current situation, run the current business successfully and then to build the new strategy. a) Immediate Action: I have to create a crisis management team of vice presidents and directors to know exactly what was in the former CEO hands and to manage the current business. ) Next : I have to make an assessment for the current situation and review the strategy to improve it or to change it. And since the structure follows the strategy I have to build my own strategy and implement it effectively. 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Plan of building and assessment of the new strategy: The plan will be to build and implement a High Level Balanced Score card on nine major steps: a) Assessment: Develop plan, strategic elements and change management. b) Strategy: customer value strategic themes and results. ) Objectives: Strategy Action Components. d) Strategy map: Cause Effect Links. e) Performance measures: Performance Measures Targets. f) Initiatives: Strategic Projects. g) Automation: Performance reporting and Knowledge sharing. h) Cascade: Alignment through Unit Individual Scorecards. i) Evaluation: Strategy Results Revised Strategies Company profile and overview: KEO was founded in 1964, KEO delivers world-class professional  design and management services. KEO offers award winning architectural design, progressive infrastructure engineering and highly ranked project and construction management known for quality and professionalism. KEO is proud of its 44 years of continuous success in providing professional consulting services in planning, design, engineering, and project and construction management. Over the past decade, KEO has expanded from a mid-sized practice to one of the fastest growing leaders in the Arabian Gulf and North African construction markets. KEO is a privately owned, multi-disciplinary firm and is currently ranked by Engineering News-Record (ENR) as a Top 200 International Design Firm (KEO-#77), and a Top 20 International PM/CM firm (KEO-#10). Most recently KEO Achieved the Top 100 Architectural Practices in World Architecture Survey 2008 conducted and published by UK based, Building Design Magazine, KEO Ranked in the following categories: * # 3 in the Middle East Region. * # 5 in the list of Number of Creative Staff. * # 6 in the Landscape Market Sector. * # 39 in the Worlds 100 Largest Architectural Practices KEO has over 1,700 employees with strategically located offices in Abu Dhabi, Al Gharbia, Al Ain, Ajman, Sharjah, Bahrain, Dubai, Kuwait, Oman, Qatar, Lebanon, and the Washington DC. KEO is opening new offices in Saudi Arabia, Libya, Tunisia, Bulgaria, Iran, Egypt, Bangladesh and Uzbekistan Purpose: To provide reliable and innovative total project solutions or selective professional services to our client’s from our multi-disciplinary capabilities to uniquely fit a project requirement and meeting their project and business objective achieving the highest quality level. Super ordinate goals (vision): KEO strives to be recognized globally and regionally as one of the finest project consultancy firms contributing to client success wherever we work by adopting the following: * Improve the rank to be in top 20 International Design Firms. * To be in the top 5 International PM/CM firms. * To be # 1 in Middle East. * To be # 1 in the list of Number of Creative Staff. * To be # 3rd in the Landscape Market Sector. * To be in top 10 World’s 100 Largest Architectural Practices. Strategy: * Reliable delivery of project as professional collaboration in the international market to lead to very successful project results. Pulling together the best expertise into a project team, whether in design or management. * Joint Venture relationships and, Alliance relationships through our network of associates for project delivery. * Facing creatively the project challenges. * Honesty in our services and professional integrity. * Multi-national staff delivers projects of all sizes for clients worldwide. * Combining the right mix of people, technology and expertise. * To enable clients to achieve the optimal return on investment by reducing and controlling costs, and delivering projects on time with the highest quality. Flexibility of work teams that can integrate into a larger team in partnering and sub-consulting roles. * Concentrating on following the highest quality standards in design, documentation and project management. KEO structure: KEO is matrix organization with organic organization chart model. Deputy President Director IT services Worldwide HR Administration Director Finance MIS Director Asst Director IT Services Deputy Director HRD Admin Financial Controller President Senior Vice President VP Marketing corporate Director PR corporate Branding Washington DC office CEO Lebanon office PM/CM Services Kuwait, Kuwait Based Clients, Worldwide. Infrastructure Engineering Services Master Planning, Sustainability Urban Design, Development Management services Abu Dhabi, Worldwide Architectural, Building Eng, Landscape Interior Design services PM/CM Services Qatar, Abu Dhabi Dubai, Oman, Bahrain, Egypt, Worldwide Managing Director KEO-Infrastructure Vice President KEO-PM CM Corporate Vice President KEO-PM CM International Vice President KEO-Design Managing Director KEO-Strategy, Planning Urban Development Current Structure Style: Since the company is private and a family owned business, the top management always concentrates on the perspective of collegiality and team-orientation giving all the employees the sense of one family. Staff: KEO employed a Multi-national staff in different specializations, combining them into a mix of high skilled people and expertise. KEO maintained high quality criteria for selecting the employees. After reviewing the 7S to understand the organization I will try to begin the plan for building and implementing the High Level Score Card. a) Assessment: 1. At the beginning I will try to identify the strengths, weaknesses, and areas of opportunity for the organization. This provides a road map for both short-term and long-term action (SWOT analysis). I| INTERNAL| | Strength| Weakness| | * Diversity. * Excellent reputation. * High skilled employees. * Spreading and strategic locations. * Multinational team. * Staff ability to change. * Private company. | * Bad communication. * Lack of motivation. * No clear career advancement path. * Cultural differences. * Private company. | EXTERNAL| Opportunities * Extended customer’s plans. Promising markets in Saudi Arabia Libya. * vacant by an ineffective competitor| S-O strategies * More training on quality. * Marketing efforts relying on the reputation and diversity. | W-O strategies * Improve the communication process by training and more efficient system. | | Threats * Highly completive market. * Current recession. * Price wars with competitors * New competitors. * Changing technologies. | S-T strategies * Reducing expenses. * Relying on customer confidence and our track record to keep our position in market. Trying to keep customer’s level of confidence by high quality and accurate time schedules. * Training on new technologies. | W-T strategies * Motivation and reward system to keep the skilled staff. * Open employment for senior management positions internally and give the employees the opportunity to apply for it. * Create techniques to use the cultural differences to the benefit of the company. | S-O strategies take advantage of opportunities that are a good fit to the organizations strengths. W-O strategies overcome weaknesses to make use opportunities. S-T strategies identify ways that the organization can use its strengths to reduce its external threats. W-T strategies Build a defensive plan to prevent the organization’s weaknesses from making it highly susceptible to external threats 2. Review the current strategy by using balanced score card for assessment of the current strategy and what it has achieved last year. Perspective| metrics| 2007| 2008| financial| Revenue Operating profit Operating margin Operating cash flow | 1,179. 8m67. 7m5. 7%93. 9m| 1,313. 6 m86. 7m6. 6%80. 9m| customer| Customer satisfaction (1-5) scale. No. of customers. New customers. | 4426| 45614| Internal business process| No. of conflict accidents Implementing the QMSSuccessful tenders. Successful project (on time, on budget, customer satisfied)| 168852%62%20%90%| 148765%64%28%93%| Learning and growth| Employee satisfactionNo. of employeesNo of trained employees. Productivity Index| 65%168810166| 75%14879276| b) Mapping Strategy: Remapping the strategy based on the SWOT analysis and the evaluation above, the understanding established for the organization (purpose, superordinate goals, strategy, style, Structure and the staff). c) Objectives: (see balanced scorecard). ) Strategy map: Cause Effect Links. (See Balanced Score Card) e) Performance measures: Performance Measures Targets. (See Balanced Score Card) f) Initiatives: Strategic Projects. (See Balanced Score Card) ( new Organization Structure) Strategy Map (Simplified)| StrategicObjectives| Performance measures| Initiatives| Decrease costs Increase revenue financial| * Increase revenue * De crease costs| * Revenue * Operating cost| * Develop resources management program. | Improve Brand Image Increase numbers of customers. Increase costumer’s satisfaction. ustomer| * Increase costumer’s satisfaction. * Increase numbers of customers. * Improve Brand Image | * Customer satisfaction (1-5) scale. * No. of customers. * New projects in new markets. | * Increase quality. and show commitment to customer’s goals(create customer locality program) * Expand into Europe and new promising markets. | Increase the Implementing of the QMS Internal Decrease conflict Increase no. of successful tenders Increase the % of successfully submitted projects. process| * Decrease conflict * Increase the Implementing of the QMS * Increase no. f successful tenders * Increase the % of successfully submitted projects. | * No. of conflict accidents * %of Implementing the QMS * No. Successful tenders. * Successful project (on time, on budget, customer satisfied)| * Modify the organizational structure. * Apply the effective and universal techniques of project management. * New marketing campaign. * Develop the communication system. | Learning Optimize workforce Increase workforce skills Increase employees satisfaction and growth| * Increase employee satisfaction. * Optimize workforce * Increase work force skills. * %Employee satisfied * Productivity Index * No of trained employees. | * Rewarding system * Career advancement system * Open application for senior position from inside the organization. * PMP certification program for project managers. | High Level Balanced Score Card: President Financial metrics | | | | Revenue | ? 373. 6m | ? 320. 8m | +16% | Operating profit | ? 30. 2m | ? 27. 0m | +12% | Operating margin | 8. 1% | 8. 4% | -0. 3pp | Share of post-tax JV losses | – | – | – | Work in hand | 39% | 40% | -1. 0pp | Modified structure: CEO Deputy President Senior Vice President Finance MIS Director HR Administration Director Director IT services Worldwide Washing ton DC office Europe office Lebanon, Cairo Libya offices Director PR corporate Branding VP Marketing corporate Financial Controller Deputy Director HRD Admin Asst Director IT Services Vice President KEO-Contract QS Services Vice President KEO-Design Managing Director KEO-Strategy, Planning Urban Development Vice President KEO-PM CM Vice President KEO-PM CM Corporate Managing Director KEO-Infrastructure Branch manager Bahrain Branch manager Oman Branch manager Qatar Branch manager Kuwait Branch manager AD Branch manager KSA Branch manager Dubai New Structure Financial metrics | | | | Revenue | ? 373. 6m | ? 320. 8m | +16% | Operating profit | ? 30. 2m | ? 27. 0m | +12% | Operating margin | 8. 1% | 8. 4% | -0. 3pp | Share of post-tax JV losses | – | – | – | Work in hand | 39% | 40% | -1. 0pp | Changes to structure: Since the structure follows the strategy, we need to modify the structure to serve the strategic goals as following: * Merge KEO-PM CM International KEO-PM CM corporate under one division because there was overlapping and conflict between them also it will help to optimize the workforce. Add Cairo and the Libya offices under the Senior Vice President because the two still growing and have few projects. And they need somebody focus on marketing to lead them until they acquire more projects then it will be placed in the structure the same as other branches. * Build a new division for Contracts and Quality Management Services to focus on quality system in KEO and give services and solutions to the market clients. * Make branch managers to create autonomy for branches, decrease centralization and reduce pressure on headquarters after the growth of branches and increasing of clients. ) Automation: applying performance measurement software to get the right performance information to the right people at the right time. h) Cascade: help the organization to alignment around strategy. By translates high-level strategy into lower-level objectives, measures. i) Evaluation: evaluate the strategy by the effectiveness of achieving the strategic objectives and comparing to target values of the strategic objectives. 5. Bibliography Reading materials used and referred to as resources: * Organizational Behavior(by Stephen P. Robbins) * Do You Have a Well-Designed Organization? by Harvard business review) by Michael Goold and Andrew Campbell. * LEADING O RGANIZATIONAL DESIGN (Darden Business Publishing). * A LEADER’S GUIDE TO UNDERSTANDING COMPLEX ORGANIZATIONS: AN EXPANDED â€Å"7-S† PERSPECTIVE ( Darden Business Publishing). * The Balanced Score Card (NetMBA) http://www. netmba. com/accounting/mgmt/balanced-scorecard/ * Balanced Scorecard Examples Success Stories http://www. balancedscorecard. org/BSCResources/ExamplesSuccessStories/tabid/57/Default. aspx * Balanced Scorecard Institute http://www. balancedscorecard. org/ * Case Studies(Advanced Performance Institute) http://www. ap-institute. com/resources_casestudies. asp