Riordan Manufacturing MBA 530 Analysis

Solution Preview

Step 1: What is the situation?
Riordan Manufacturing has recently made several strategic changes in the way it operates in order to address the decline in sales and profits over the last two years. They have adopted a customer-relationship management system and customers are now called on by a team versus individual sales people. Riordan has also implemented a Six Sigma approach to quality. These changes have resulted in a decline in employee satisfaction, morale, and an increase in employee turnover.

Step 2: What are the challenges?
Riordan's main challenges are a lack of cohesiveness within the major players of the organization. Each player seems to have their own best interests at heart instead of looking from the perspective of what would be best for the organization as a whole. Riordan's HR director lacks the ability to do her job and doesn't have the support of members of the organization. Riordan is challenged with an ineffective reward system and a gap in skill levels between the employees.

Step 3: What are the opportunities?
Riordan has the opportunity to utilize the information gained by the consultant to effectively address the employee issues to develop an effective reward system and improve both employee morale and employee retention. Some examples are: Implement programs to entice new talents, Retain valuable employees within the organization, Provide training and professional development programs, and to Implement incentive programs that would improve the skills of its workforce

Step 4: What is the end state vision or desired state of operation (stated as a vision statement)?
Riordan will work with the consultant to develop a reward system that improves the job satisfaction levels, employee retention and creates teams that will successfully service their customers and grow sales and profits.

Step 5: What are the end state SMART (Specific, Measurable, Agreed upon, Realistic, Time-bound) goals?
Increase job satisfaction ratings by 10% within the first 4 months
Develop a reward system within the first 2 months
Decrease employee turnover by 5% within 6 months
Increase sales by 4% within 6 months

Step 6: What is preventing Riordan from being at their end state vision or desired state of operation? In other words what is the gap between the current situation and the end state vision (or Gap Analysis)?
Riordan is currently unable to achieve their end state goals because the organizational leaders lack cohesiveness and the ability to define the goals they want to achieve, the methods by which they achieve them and who is responsible for the implementation. Team members need to look past their own selfish desires within the organization and work together to do what is best for the company.

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Assignment completed in April 2007. Reposted on Brainmass by Will Zrnchik, Brainmass OTA. Use of this material requires proper credit in citations.

Zrnchik, W. J. (2007). Riordan Gap Analysis. Retrieved on DATE from http://www.brainmass.com/homework-help/business/management/123222

Abstract
There has been a noticeable two-year decline in sales at Riordan Manufacturing. Management wants to move to a customer-relationship management system (CRM) and hopes its introduction will help save the company. Using my professional experience and the textbooks from the course, I will show where ...