The Morgan Company How did management fail in its strategic planning? What princ
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Question
The Morgan Company
How did management fail in its strategic planning?
What principles and ideas discussed in this chapter might have helped this organization succeed in meeting the new strategy?
Chapter 5: Competitive Advantage and Strategic Management for Performance Excellence 245 CASES Morgan Company discovered that customers were not happy with the s at The Morgan Company had devel. quality of the products they had been receiving. In 198S, CM W made a commitment to quality by hir iring mission statement-one that a quality assurance manager, Pau new and n for the company with ambitious Deming philosophy, the company als. Manage ment continually emphasized osophy, the company developed a varicty sta new and asked employees what they certified in 1998. CMW made some do to achieve the new goals. Although improvements in the quality of its products, particularly of quality approaches and eventually became ISO 9000 new strategy loyees didn't want to embrace the new stra- reducing scrap and reject rates. Paul worked closely most were excited to participate in and direction, wit don to a significant change in the culture of the invested in computer-based statistical process contreol h the factory workers directly responsible for the e and ensuring management commitmentt lstrategy. The employees began to products, asking them what they needed to get the job ions for improving the organization and the necessary changes. Many of their ideas uggesti vide the necessary resources. For example, CMw tion. And that was when the wheels fell off. technology, which enabled workers to monitor their oganiza ees were told to step back; management didn't processes and adjust them as needed. The success o make any radical changes. They were told t to they this project led the company to empower employees to control many other aspects of the system. could only change one or two items and hen only to a very small degree. No money could be loyees' ideas really didn't matter. People Business remained steady, but after hearing pre- founder of the company realized that a lot more and the actions of senior management implied sentations from some Baldrige recipients, the came disilusioned and disgruntled. At least two could be done. In 200s, he hired a senior executi ple left every month for other positions duri for performance excellence, who saw an opportunity to change the company's culture and introduce many Baldrige principles he had learned in his previous job a manufacturing firm that had applied the Bal drige criteria for many years. One of the first things he did was to review the current mission statement, which had remained relatively untouched since ing 18 months of the 24-month "transformation" t since they had no voice rocess. The best people lef and no ability to change a broken organization. Discussion Questions . How did management fail in its strategic 1985:Explanation / Answer
To achieve competitive advantage, a company needs to look at the external and internal environment and build up on the strategic plan.
In this example the company Morgan attends at the strategic advantage by building upon its internal environment.
The main steps involved in any organisational transformation IC leadership, communication and engagement of key stakeholders, knowledge management and Enterprise organisational alignment.
Morgan failed in establishing a clear leadership and also communicating properly with the key stakeholders its employees. There was also lack of proper management because the employees were initially asked to give their suggestions but when did actually get the organisation did not support their feedback but rather discouraged the employees for any further constructive feedback. This lead to resentment among state employees as they found their organisation non receptive to their suggestions and they felt left out in the entire transformation. Morgan should initially have laid a clear purpose for the need of transformation and subsequently engaged with its employees in a much more constructive manage stating its limitations categorically, as to what can be implemented and why , and what cannot be implemented stating the reason for the same.
Even during the implementation phase of the plan, Morgan did not review the process and did not do anything to avoid the imminent failure of strategic transformation.