Abstract
This paper is about the issues that Global Communications (GC) is facing as they try to increase profits by outsourcing and partnering with another company. The topics that will be discussed range from the issues GC is facing to the dissatisfaction of the Union.
Global Communications Problem Solution
Global Communications (GC), a telecommunications company is facing numerous dilemmas due to a decline in the telecommunications industry. As a result, stock prices have plummeted in the last three years. In order to rebound and achieve new growth in a competitive industry, Global Communications will be offering new services to small businesses and end user customers. Additionally, Global Communications has also implemented cost reduction methods with the expectation to improve profits.
The main issue that faces Global Communications is to increase profitability. However, the roadmap Global Communications intends to follow may have the opposite effect. Global Communications made decisions using a top down method and therefore, did not have buy-in from the majority of the stakeholders. Due to a lack of appropriate communication, they are now faced with a damaged relationship with the union and their union representative, as well as an outsourcing plan that in our perspective was not well thought out.
An analysis will be conducted of the situations that face Global Communications as a result of their cost-cutting methods. Alternative solutions will be presented as well as risk assessment and mitigation techniques. Furthermore, we will present the stakeholder perspectives, ethical dilemmas, the problem statement, end state vision, and finally the optimal solution and implementation plan.
Situation Analysis
The telecommunications industry is currently experiencing difficulties in trying to compete with the cable companies. The stiff competition has proven to be detrimental to the stock prices of Global Communications; the stock price has gone from $28 to $11 per share in a short span of time. Furthermore, their profit margins are steadily decreasing while the cost of doing business is continuously increasing. The company is not only facing pressure from the uncertainty of the telecommunications market, but has to also deal with demands of the stockholders. The executives of Global Communications have created a strategic plan as an attempt to overcome their current situation. This plan includes cost cutting measures that will allow the company to offer more competitive services and increase their profit margins.
Stakeholder Perspective/Ethical dilemmas
We have identified five distinctive Stakeholders in Global Communications; which are corporate leadership, employees, union, outsourced employees and customers. The stakeholder concerns have been separated in three areas; interests, rights and values.
The leaders of the corporation interests lie with GC’s market competitiveness, while the rights lie with the need for maintaining corporate revenue and insuring investor’s returns, and their values are to provide the best in customer service. The employees interest lie with not losing their livelihood, while their rights is in job security and maintaining their company benefits, and their values is to maintain their loyalty to the company – their trust to the business community and their integrity to their customers.
The union interests lie with their desire to maintain their prestige, strength and control with the employees and the company, while their rights is to be able to speak on behalf of the employees and maintain their values of protecting the employees. The outsourced employees interests lie in creating new jobs the will stimulate the economy, while their rights is to improve their way of life, and their values is to maintain the stimulation of the economy. The customers interests lie with the quality of the products and services that they receive, while their rights is to get what they pay for and not to be taken advantage of by the company; their values is to obtain customer satisfaction and maintain their loyalty and integrity to the company.
Problem statement
Global Communications is facing several challenges that are questioning the actions of their stakeholders. Understanding the interest, rights and values of each of these stakeholders will create a plan of success that does not go against the core values of the company. With the market changing with the introduction of new products and services, the competition will become dominate, and at times questioning the need to get away from the core values. Through integrity, trust and loyalty; Global Communications will gain the support of their investors, employees, union and customers for a lifetime. This will in turn help ensure the survival of the company. Demonstrating this integrity will become critical in the fight for the loyalty of the customers.
End state vision
Global Communications first goal is to increase profit and stock prices. Without an increase in profit, the company will not be able to accomplish other goals it has set forth in its strategic plan. Establishing new services and gaining a competitive edge in the market is another goal that will set GC apart from its competitors. Maintaining employee morale and a clear line of communication with the union is just as important as increasing profits and establishing new services. GC has the reputation of putting its employees first, and tarnishing that reputation may add more stress on the current situation. The company needs to also focus on upholding customer satisfaction with their current clientele and providing them with new services to ensure the success of GC as well as their clients.
Alternative Solutions
Two alternative solutions to the current business development plan that GC developed are; one plan is for reorganization and job placement and the other is a profit sharing program. The first part of the reorganization and job placement plan is to meet with the union to negotiate the plan with them to keep 25% of the workforce, the high performers will stay. The other 75% will meet with company executives and an outside firm to discuss a plan to either help find the laid off employees jobs or to see if they want to apply for the new sales positions. The presentation will consist of a job placement firm discussing the options available to them and a presentation by the human resource director discussing the new positions that will be offered at GC.
The employees who want to apply for the new positions at GC will be given the first opportunity before the positions are posted for the public to apply. Once they apply and are offered the jobs they will then receive the necessary training for the new positions. Employees who would rather not return will be assisted by a job placement firm into positions outside of GC.
Analysis of alternative solutions
Decreasing the amount of job loss for its current employees may open a new line of communication with the union. Creating a new avenue for renegotiation will lessen the chances of the union taking any legal action against Global Communications. Time is of the essence; therefore, GC cannot afford to delay the implementation of their plan by going to court. Litigation processes can take up months and even years before a decision can be reached. This will not only take up more time then GC can afford to give, but will also be very costly. Promoting its top employees to the new sales positions will not only aid in appeasing the Union but will also prove to be cost efficient. The current employees understand the nature of the telecommunications business and the processes of how GC operates; therefore, they will not need extensive training when promoted to these sales positions. With their vast knowledge of GC and their proven track record of exceeding performance, the top employees of GC will be ideal candidates for the new sales positions.
Risk Assessment and Mitigation Techniques
Some risks exist that are associated with the two alternative solutions mentioned above. Decreasing the amount of positions that will be outsourced may not prove to be the best cost effective approach. Part of the strategic plan is to implement cost effective measures in order for the company to realize the highest possible profit margins. Outsourcing the entire department to India and Ireland will save the company more money than keeping some of the jobs in house. The probability of this risk occurring is low. Although it appears the company will save more money by outsourcing the entire department, they may spend that money in litigation processes since the union has decided to take legal action. Avoiding legal action may save more money and time than outsourcing the whole technical support department. The mitigation technique that can be used to reduce this risk from occurring is to reduce fear. This can be done by communicating to employees they are a valued member of company and part of GC future. This can be augmented by creating a committee that is attended by employees from all levels.
Risks exist in relation to offering the higher paying new sales positions to the current employees and providing training for the new positions. The company may spend more money promoting existing employees without sales background instead of hiring outside candidates with sales experience. The probability of spending more money on training new employees is low. The current employees understand the nature of the business and understand the expectations of the department. The mitigation technique that can be used to minimize this risk is to establish measures to determine if existing employees can be trained as salespeople. If they are unable to perform to the satisfaction of management, then assistance should be given in career placement in other organizations.
Optimal Solution
Global Communication's best solution is to adopt some of the strategies and best practices used by the cable companies. By offering some of the same services as cable companies GC can remain competitive in its respective market. Additionally, re-negotiating with the union to minimize the number of outsourced employees, as well as retaining some of the existing employees for newly created sales positions would help appease the union. This will also maintain and improve customer familiarity. To accomplish this goal, GC needs to ensure that they maintain a clear line of communication within all departments and outside entities that affect them. By maintaining cohesion within all departments, GC will have a better chance of getting buy-in from all internal and external customers, and as a result, succeeding in the declining telecommunications market.
Implementation plan
The first step in implementing the reorganization and job placement program is to meet with the executives that run the organization and the union. Once company executives and the union have agreed upon the rules and guidelines of the program, the next step is to meet with the human resource director as well as upper management. When the details of the program are settled, the plan will then be rolled out to the employees for further negotiation and approval. However, before the actual plan is enacted, the employees will be asked for their feedback concerning the new job program and what that plan means to them. In the end, when the concerned parties agree upon the measures of the new job program, the plan will then be officially presented to the employees.
The deliverables for the reorganization and job placement plan will consist of a comprehensive job description as well as the requirements for the new positions. The new jobs will be offered to current employees first coupled with the necessary training they would need for the new job. Additionally, these jobs will be offered to the more senior positions.
Next, once the format for which the job will be offered is nearing finality, a select group of current employees will be asked for their feedback about the program. This will begin the line of communication with the employees so to begin the new communication system.
After the reorganization and job placement program has been reviewed and the feedback addressed, the program will then be advertised through internal company communication lines via intranet, bulletin boards, seminars, memorandums, and interviews. Upper management will be responsible for making the program acceptable to employees as well as ensuring that all concerned parties are communicated with on a regular base.
Evaluation of results
With the end-state goals being; profit, employee satisfaction, customer satisfaction and positive public perception each will be measures through financial reports, surveys, and feedback forms. Each quarter the companies financial will be audited to determine validity of data as well as accuracy. This information will in turn keep a close record of how the company is doing on a regular base. Feedback and survey forms will be used to gain valuable information from three major stake holders; employees, customers and the public. The forms will be sent out weekly at first to employees and monthly to customers and quarterly to the public. The information obtained will be used to benchmark how GC is doing this year to the same month last year. The goal is to improve in all categories. The forms will be made up of questions regarding response times, hold times, accuracy of information, knowledge level of GC representative, professionalism and other questions regarding overall satisfaction.
The value of the information obtained through feedback is difficult to measure. The real value lies in how what was learned from the information obtained was used. This feedback will keep the lines of communication open between GC and three major stakeholders. “Feedback is an effective way of communicating with employees, colleagues or members of your team. Feedback can be both positive and constructive (rather than negative)” (Evans, n.d. , para 1).
Conclusion
By examining Global Communications we have determined they are facing challenges to remain competitive and achieve necessary growth in an industry with plummeting stock prices. There are numerous stakeholders which prove to have intersecting and conflicting interests. The identified problem or opportunity confronting GC is how to remain profitable in a highly competitive industry. Global Communications end state vision is to increase profits by gaining a competitive edge in the market while maintaining employee morale, and open communications with the union.
Alternative solutions were presented to GC to reach the desired goal. By understanding and analyzing risks associated with the alternative solutions, it was decided that the optimal solution for GC would be to re-negotiate with the union and re-train some of the existing workforce. The implementation plan has been set with deliverables and distinct metrics to measure success.

Table 1
Issue and Opportunity Identification
Issue Opportunity Reference to Specific
Course Concept
(Include citation) Concept
Three years ago, Global Communications stock traded at $28 per share; today, the stock is valued at $11, more than 50 percent depreciation. The amount of competition Global Communications faces has increased tremendously. The company can offer new, attractive services and find ways to cut costs and increase profitability. One way of cutting labor cost is by outsourcing or off-shoring. “Outsourcing is subcontracting a process, such as product design or manufacturing, to a third-party company.[1] The decision to outsource is often made in the interest of lowering firm costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of labor, capital, technology and resources.” (Wikipedia, 2007) Outsourcing
Maintaining cohesion among top management. Maria is not happy with Joel because she was not given prior notice of the new plan until the Board had already approved it. Maria has to answer to the Union, and they are not impressed with her efforts presently. Improve the communication process, knowledge management, employee needs and coordination within the company. “Strategic employee communication is the way to the heart of your company. Experience and research shows that organizations that communicate clearly and effectively with employees are better positioned to ride the waves of change and build a growing bottom line. They also get more from employees thanks to a concerted two-way communication process.” (Eloquor Consulting, 2008) Employee Communication and Development
Maintaining a working relationship with the union and making sure that Maria gets back into good graces with her boss. Maria seems to have a generally favorable attitude toward the company and she could be important. The union feels like there is no room for negotiation and has decided to take action both through the government and all other available resources. Management should start using integrative negotiation with the union and come to some conclusive decision which will be beneficial to both parties. “Integrative negotiations are those typically referred to as "win/win" negotiations: all sides are looking for a solution that maximizes joint gain and allows everyone to walk away feeling like they won something. They involve looking at the issues being negotiated from multiple angles, considering multiple issues at once (thus allowing for trade-offs), and honestly trying to ‘expand the pie’ rather than divide it.” (La Piana Associated, Inc 2008) Integrative Negotiation
Maintaining employee morale and preventing “brain drain” to competitors, this often occurs following layoffs. Assist the employees that get laid off. “Morale affects how motivated your employees are to work for you, suggests how much they will do while on shift, and will influence how long they will stay on staff. Management should communicate to the employees the objectives for the company and promptly share news that affects the organization. Let staff know clearly what your expectations are, and explain the reasoning behind certain rules or rule changes. Ask workers directly what motivates them, and get their feedback on how to handle staff issues.” (Go2 Tourism, 2008) Employee Morale
Effectively competing more locally and globally
Converting the proposed changes into profit. Customers are demanding more technical sophistication from the sales people. Identify markets not currently served globally (or not served well) by their major competitors and fill that niche. “Globalization is the increased mobility of goods, services, labor, technology and capital throughout the world.” (Economic Concepts, 2007) Globalization

Table 2
Stakeholder Perspectives

Stakeholder Perspectives

Stakeholder Groups The Interests, Rights, and
Values of Each Group
Management Interests: Ensuring Global Communications is profitable.
Rights: They have the right to improve processes or create new processes to ensure profitability as long as it is approved by the Board of Directors.
Values: Treating employees fairly and ethically.
Share Holders Interests: Shareholders want a significant Return on their investment (ROI).
Rights: They have the right to be informed of any changes in operational process the company is undertaking before the process is approved and ready to be launched.
Values: Profit and a company that values ethics and fairness.
Employees Interests: Employees have a need for job security Rights: to have fair wage and benefits.
Values: Employees should be able to trust their employers to protect their rights and needs (Boeree 2006).
The Union Interests: The union has an obligation to the employees, to protect their benefits, their rights and to ensure that they have a job. Rights: It is important that the union be informed every step of the way, what is going on with the agency and what is expected of the employees as the change is implemented. Values: Fairness when dealing with employees.
The Clients of Global Communications Interests: The clients need to know that they have entrusted their telecommunication and technology needs to a competitive company that will provide them with the most current technology.
Rights: They have the right to accurate and timely services that will ensure their success and keep them abreast the competition in their respective markets.
Values: They value timeliness and satisfaction with services being rendered.

Table 3
Alternative Solution Evaluation Matrix

Table 4
Risk Assessment and Mitigation Techniques
Alternative Solution Risks and Probability Benchmark Mitigation Techniques
Re-organization and job placement Will not reach target cost-cutting measures
Probability Low If the plan to train existing employees for sales positions does not work, the resources as well as time are lost
Probability: Low “In 1992, Franco Bernabè began the tumultuous transformation of a debt-ridden, government-owned, and politically corrupt entity into a highly profitable, publicly traded, clean corporation. He led Eni, Italy's large energy-focused industrial group. In five short years, it went from $554 million in losses to $3 billion in profits; increased productivity by 112%; and netted over $5 billion in its first public offerings.
Of the many things he did to improve the company’s situation promoting people from within was one key. After dozens of Eni's top executives were charged with corruption, Bernabè asked all the senior managers to resign. He filled all these positions from within.”(Williams, n.d. , para 2)

• Reduce fear/communication plan
• Establish measure to determine if existing employees can be used in sales.

Profit sharing Not meeting projected profits
Probability: Medium

“United Telecommunications Inc. yesterday announced a 55.1 percent decline in second-quarter earnings and said it would lay off as many as 1,300 employees to contain rising costs at its long-distance telephone service subsidiary, the U S Sprint Communications Company.” (Bradsher, 1990, para 1) • Success Measures
• Compensation Benchmarks

Table 5
Deliverable Timeline Who is Responsible
Upper management/union approval 1 week Upper management
HR approval 1 week HR Director
Employee approval/Union 1 week HR Director
Final approval 1 week Board members
Advertisement/internally 1 month HR
Fill positions-interview 1 month HR
Regular feedback Mothly, quaterly , annually HR

Table 6
End-State Goals Metrics Target
Higher Profit Quarterly reports, financial reports 10% first years 5% each year after
Employees satisfaction Survey/Feedback forms grades Create base then 75% first year
Customer satisfaction Survey/Feedback forms grades Create base then 75% first year
Public perception Survey/Feedback forms grades Create base then 75% first year

References
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Economic Concept (2007). Retrieved on June 16, 2008, from http://www.canadianeconomy.gc.ca/English/economy/globalization.html
Eloquor Consulting (2008), Strategic Employee Communication. Retrieved on June 16, 2008, from http://www.eloquor.com/index.php?section=consulting
Evans, C. (n.d.). How To Give Effective Feedback. Retrieved June 30, 2008, from http://www.evancarmichael.com/Business-Coach/330/How-To-Give-Effective-Feedback.html
HR-Guide (1998). HR Guide to the Internet:Compensation: Incentive Plans: Profit Sharing . Retrieved June 27, 2008, from http://www.hr-guide.com/data/G444.htm
Positive Employee Morale Benefits Your Business (2008). Retrieved on June 16, 2008, from http://www.go2hr.ca/ForbrEmployers/Retention/EmployeeMorale/tabid/115/Default.aspx Strategic Restructuring: Partnership Options for Nonprofits (2008). The Negotiations Process.
Retrieved on June 16, 2008, from http://www.lapiana.org/resources/tips/negotiations/11_1998.html Wikipedia (2007). The Free Encyclopedia. Retrieved on June 16, 2008, from http://en.wikipedia.org/wiki/Outsourcing Williams, P. (n.d.). So that you CAN promote from within!. Retrieved June 30, 2008, from http://www.ravenwerks.com/leadership/growing.htm