Managing Transformation at National Computer Operations
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Read "Managing Transformation at National Computer Operations" (page 63 - 65) and answer the following questions:
1. Prepare an implementation plan for change that would enable Gar Finnvold to create a fully competitive computer service within two years.
2. How could Finnvold conduct an organizational diagnosis that would lead off his implementation? Be specific about how he could ensure an open, candid dialogue from employees at all levels of the unit.
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Solution Summary
National Computer Operations has been the exclusive provider of computer support services to the global enterprises of the National Banking Group; however, within the next two years, all banks would be free to purchase their services from any vendor of their choice, thus breaking the monopoly NCO has held for years. Within the next two years, NCO must develop a comprehensive plan to entice their current customers to contract with them when the market opens to the other vendors.
First, Finnvold must take stock of what needs to be changed. After reviewing the company's position, he found opportunities for change and NCO's needs of improvement in:
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National Computer Operations has been the exclusive provider of computer support services to the global enterprises of the National Banking Group; however, within the next two years, all banks would be free to purchase their services from any vendor of their choice, thus breaking the monopoly NCO has held for years. Within the next two years, NCO must develop a comprehensive plan to entice their current customers to contract with them when the market opens to the other vendors.
First, Finnvold must take stock of what needs to be changed. After reviewing the company's position, he found opportunities for change and NCO's needs of improvement in:
? High costs (cost effectiveness and budgeting)
? Low responsiveness
? Customer perception/Customer needs
? Organizational culture
Second, now that he has defined where to start changing the organization; Finnvold must develop a plan to reverse these issues to provide a value to the customer while still maintaining a solvent bottom line.
High Costs
Finnvold has already cut costs by downsizing his staff from 1,500 to 1,000; however, this is not the only place where he needs to cut costs. A tight grip on expenditures and budgets need to be implemented. Each department will be required to have a budget and over-spending will come to a halt. The old school of thought that money was no object is now a thing of the past; they must be wiser on how they spend their money. Budgets will have to be approved ...
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