Decisions_in_Paradise_Iii

Decisions in Paradise Part III Cathy D MGT 350 May 30, 2010 Decisions in Paradise Part III Milliman, Inc. is an actuarial consulting firm in the process of expanding the business to the island of Kava. Milliman has met with various government agencies and businesses on the island to determine what type of financial planning is needed. With the threat of various disasters on Kava, Milliman plans to work with the community to be prepared financially and give them the ability to recoup business in a timelier manner with the financial resources Milliman will help put in place. Factors affecting the decision implementation When starting a new project the biggest factor that could affect implementing any decision is communication. As leaders for the Kava project, Alex and I need to make sure that we clearly and thoroughly explain what the goal is, and listen to the members of our team to obtain quality solutions. According to Lewis (2006) “Effective communication is without doubt a key component of successful change..”. For the Kava office to be successful, our team must be able to communicate the goals and expectations to the team. We must also be willing to hear feedback and value the input received from the team members (Lewis, 2006). The first three goals we established were to hire a local employee, create a marketing brochure, and obtain proper business licenses and tax requirements to operate legally Milliman in Kava. Although we have used the resources at corporate to help with all three, there are still small issues that Alex and I must be able to deal with, and also need to create options in the event the original plan does not work. Developing back up plans will help make the transition easier and will allow our team deal with any last minute situations that may arise. One of the first items to take care of was to introduce our new employee, Sam, to the rest of the consultants at Milliman. Our team believed it was as valuable for Sam to meet the resources that we have available, as it was for the other consultants to meet Sam. The original plan was for Sam to attend the annual consultant meeting. However at the last minute there was a storm in Kava and we could not leave the island. We contacted our information technology department and arranged to set up a video teleconference with the consultants attending the meeting. Although there were a few delays in sound, the meeting went well, and Sam could put some faces to names, and chat with the various consultants who have been assigned to our project. The next step we had to accomplish was registering our business in Kava. Sam was hired as a remote employee for our Seattle office until the business had set up physical presence in Kava so he could begin working as soon as possible. We obtained office space and signed a lease, and began on the government tax filing requirements. Alex and I were fortunate to have the expertise of the legal department to establish the business in Kava. Our team did have a few legal “hoops” to jump through, and we did need to find a local tax attorney to help us finalize the paperwork. The final process we have been working on is the marketing brochure that will be distributed to potential clients. The focus group that was pulled together gave some feedback that our marketing group was able to use in creating an easy to read brochure that was full of useful information. Our team wanted to print the brochure with a local printer to save on shipping. We were fortunate to have a referral from the vendor used by the Seattle office for a printer in Kava. We have also been asked by the local printer to meet with them to discuss investment opportunities because they read through our brochure while printing it. Resources and actions for decision implementation Our team in Kava has been fortunate to have the resources of the Milliman corporate office. The experience and knowledge the various departments bring to our team helps us to implement the processes needed to establish the new location. Several steps need to occur, and in a particular order, for this office to start up. Alex and I must also meet to determine what the sunk costs have been so far in the process, and determine what other expenses we may have. We must also determine an amount of man hours we will need from the various consultants in other offices before we begin working with clients. With Sam’s help, we have determined it is important for the consultants in other offices to have a better understanding of the lifestyle, economy, and demographics of the Kava community. We have assembled a presentation explaining this information. Some concern we have is the amount of expense being accumulated. Alex and I have met with Chris to go over this information, and to determine how we should proceed. Although moving our company to Kava is supported by Chris, it is still important to have the continued backing of upper management. When expanding any business there will be more expense than revenue, however this is usually expected for a specific time period before the investors want to see some type of positive return on the initial investment. An option that Alex, Sam, and I have been given is to be connected with a senior manager mentor. This person would give us insight and information on how to secure clients and how to motivate the consultants to be timely on producing information we need. A mentor would help our team establish goals, both individually and for the organization, provide feedback on our performance, and help our team track productivity, quality, costs, and help make sure that regulations are being followed (de Janasz, Sullivan, & Whiting, 2003). Ethical Implications from stakeholder’s perspectives The process for bringing Milliman to Kava has been a challenging learning experience. Alex, Sam, and I need to be aware, with our choices and actions in the decisions being made, that we do not allow our personal feelings to interfere with the decisions being made. We represent Milliman and their values and must adhere to them. The choices made reflect Milliman as a whole, and all the people that are invested in our company. The stakeholders in the move to Kava are the partners in the firm, the employees of Milliman, the future clients we obtain in Kava, and the community of Kava. If we have good communication with our stakeholders we will build up a trust, improve the knowledge of the stakeholders, and better understand what information the stakeholders want (Plaza-Ubeda, Burgos-Jimenez, & Carmona-Moreno, 2010). We also need to adapt to what our stakeholders’ goals and priorities are, which will also help us evaluate and develop our business strategies (Plaza-Ubeda, Burgos-Jimenez, & Carmona-Moreno, 2010). When the press release was sent out regarding Milliman’s move to Kava, the response received from the various stakeholders was positive and supportive. One task that the legal department took on, when we were inquiring to do business in Kava, was to check against current clients and stakeholders for any conflict of interest that could arise or become an issue. This step was initiated by Chris before either Alex or I had been assigned to the project. Conclusion Opening an office in Kava has been a valuable learning experience for me. Being able to have the opportunity to be involved from the beginning of the process has given me knowledge that I will be able to use on all future projects. By having the resources at Milliman to expand our business to Kava, our team could achieve the goals that were set, and successfully begin a practice in Kava. Having the opportunity to have a mentor work with our team will be beneficial not only on this project but also with other projects that we will work on. Our team has worked together using the critical thinking and decision implantation skills we have acquired, and made use of all possible resources to establish a viable and credible practice in Kava. References de Janasz, S. C., Sullivan, S. E., & Whiting, Vicki. (2003, November). Mentor networks and career success: Lessons for turbulent times. Academy of Management Executive, 17(4), 78-91. Lewis, L. K. (2006, January). Employee perspectives on implementation communication as predictors of perception of success and resistance. Western Journal of Communication, 70(1), 23. Plaza-Ubeda, J., Burgos-Jimenez, J., & Carmona-Moreno, E. (2010, May). Measuring Stakeholder Integration: Knowledge, Interaction and Adaptational Behavior Dimensions. Journal of Business Ethics, 93(3), 419-442.