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STONE FINCH INC

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by

Mariana Quesada

on 4 December 2012

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Transcript of STONE FINCH INC

STONE
FINCH
INC. What's Happening? Unmotivated employees
Unsustainable bets on strategic subsidiaries
Morale is falling
Leadership is fading
Organizational weakness Stone Finch Inc. faces an internal crisis BEFORE THE ACQUISITION Markets
Involved WATER PRODUCTS AFTER THE ACQUISITION Markets
Involved WATER PRODUCTS SOLUTIONS
AND
SUBSIDIARIES Priorities
Scheme Other divisions... WEAKENING OF THE
OPTIMAL COHESION ENGAGING IN A NEW ORGANIZATIONAL STRUCTURE OR RESOURCE ALLOCATION PROCESS FAIRNESS
TRUSTWORTHINESS
TRANSPARENCY IN EVERY DECISION
MADE BY THE CEO CLEAR COMMUNICATION
ON THE NEW STRUCTURE AND COMPENSATION POLICIES MOTIVATION RETAIN SKILLED
EMPLOYEES REBALANCE
WHOLE GROWTH
PERFORMANCE THE NEGATIVE EFFECTS OF THE NEW ORGANIZATIONAL STRUCTURE • The best employees of Water Products have abandoned the company
• Intangible assets such as prestige and brand identity of the company are being threatened
• The market share of Water Products has decreased
• Uncertainty of the company’s compensation policies and organizational structure
• Tensions between both divisions SO WHERE
ARE
WE? STRENGTHS WEAKNESSES Capable, creative, energetic, risk-taker CEO
Subsidiaries brought innovative talent
Two divisions= different markets
Well-renowned brand Unmotivated employees aren't delivering
Tension between the two divisions
Training and Development is missing
Employees from the old division were left behind- miscommunication Where did
Stone Finch
go wrong? WHEN INNOVATION IS NOT DISCIPLINED The supporting structure for the innovative process was not solid
They left some segments of the company behind in the alignment
Even if they understood the emerging trends in the industry, they left the other division unattended
Core competencies were not developed among the employees
They did not have a disciplined implementation. FINAL VEREDICT 1. Establish clear and fair compensation policies 2. Create cohesion and reconciliation through arbitration3. Renew the leadership style: from bureaucratic to democratic4. Establish a more integrated organizational structure involving both structures5. Incorporation of a Training and Skill Development Program6 .Formulate properly defined channels of communication7. Motivation
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