Southern_Foods

BUS 540 Management Consulting Southern Food Services Word Count: 1142 (not including appendices, title page or bibliography) ------------------------------------------------- Question One Preliminary Analysis Significant issues and/or symptoms identified by the CEO of Southern Food Service (“SFS”) have been classified into key operational processes. There are two main categories of processes, “hard” processes (operational) and “soft” processes (human resource). Appendix A outlines where each issue has been classified. The reason for this methodology is to give structure to the project overall, while identifying the most effective starting point. Appendix C outline the process that the consulting team will follow. ------------------------------------------------- Question Two Where to Place Initial Focus An urgent consideration for SFS is to generate cash flow and net profit. There appears to be a direct causal relationship between the Human Resource Processes and Operational Processes (Appendix B) indicating that improvement in the Human Resource Processes should lead to improved operational efficiencies. Priority is given to the elimination of management infighting. Focusing on Human Resource processes enables the company to problem-solve WITH managers, rather than BECAUSE of them. It facilitates stewardship for the workforce when their management team is working positively together. Managers who share a common vision, mission, and value set, can better focus on operational efficiencies that produce positive financial results. This should alleviate Board concern that the company is not performing as it must to satisfy shareholder expectations. ------------------------------------------------- Question 3 Consultant’s Proposal to Southern Food Services Southern Food Services: An Executive’s Bottom Line Client Requirements Southern Food Services (``SFS``) is a medium-sized publicly-traded company specializing in ready made and chilled foods. SFS is headquartered in the UK and sells products into UK and Irish grocery outlets under both private label and company-branded divisions. The company has been suffering from declining share value, reduced profits, and various internal and external stakeholder concerns. SFS has approached Business Acceleration Inc. to assist in the development of strategies aimed at resolving key barriers to growing their bottom line and improve share performance. Project Scope Studies indicate that improvements at the top of the organizational structure have positive affects throughout the organization. The primary focus of this project is to assist the senior management team to work diligently towards a shared common goal and with an unwavering commitment to process improvement initiatives. Working with each Director individually, and as a group, facilitates identification and definition of strategies for profitable growth. Project Objectives The consulting project endeavours to: Assist in the development of a strong and clear corporate vision, mission, purpose, and value set; Develop effective problem-solving abilities to recognize, analyze, categorize, and prioritize opportunities that lead to greater profitability; Design communication systems to ease of information sharing and increase accountability to bottom-line results. Anticipated Outcomes As a result of this consulting project, SFS will be in a better position to: Position itself as an industry leader, calling upon the internal expertise at all levels of the operation for both system improvement and new product development; Justify its performance to the Board of Directors, shareholders, and other stakeholders; Build strong brand awareness through pride in performance, attention to system improvements, and excellence in pre-and post customer care; Budget for capital investments, such as IT infrastructure, that will enable SFS to capture production improvements and quality monitoring mechanisms. Specifically, SFS will be able to: Concentrate efforts on strengthening the bottom line in all divisions; Capitalize on internal talent for product development and innovations; Strengthen negotiating power between suppliers and SFS for materials and other supplies; Coach and mentor sales force to increase sales in profitable areas. It is expected that through the sharing of ideas and experiences, the management team will construct a strong formulation of strategies for immediate improvements to the bottom line. This project limits its scope to team development within the senior and executive management levels. The project is not intended to assess front line managers or supervisors, nor will it consist of an internal or external review and analysis of the operation as a whole. Methodology and Approach Our approach is that of executive coach, team facilitator, and organizational behaviour mentor. Personality assessments, team assessments, and a variety of other organizational effectiveness tools will be used with both individuals and the collective management team. Emphasis is on creating symbiosis between departments and synergies between talents. Ethical Standards of Conduct for the roles of Coach, Consultant, and Advisor will be strictly adhered to at all times. Confidentiality and Privacy standards are essential to build trust, gain rapport, and support authentic sharing of ideas. Qualifications and Experience The coaching team at Business Acceleration Inc. is experienced working with industry leaders in the food, health care, and manufacturing industry. Our Project Leads are: Theresa Dowsett, President, is a Certified Executive Coach, Certified Human Resource Professional, and Licensed Paralegal. She is presently pursuing her MBA in Management Consulting from Royal Roads University in Victoria, BC and the prestigious CMC designation simultaneously. Bob Brown, MBA, VP Client Relations, has worked for some of Canada’s top industry leaders in finance and telecommunications. He recently achieved his Executive Coaching Certificate from Royal Roads University, Victoria, BC. Schedule and Fees Key Event | Time Requirements | Fees and / or Disbursements | Project Start Date | Within 15 days of agreement | | Individual Personality Assessment | Weeks 1 - 3; 1 hour individual debrief | $75 per manager | Visioning and Strategy-Building Retreat | Week 4: 2 days group retreat | $10,000 plus accommodations | Individual Coaching Program | 1 hour per week over a 6-month period | $4,800 per manager | Team Coaching | 6 hours bi-weekly for first 6-month period; 6 hours per months over next 6-month period | 21,500 ($1,200 per session) | Training Sessions: front line managers, supervisors, staff | As required and negotiated as needed by client | $1,500 per day | Meetings, Presentations, or ad hoc sessions | As required and approved by client | $800 per half-day | Fees quoted above do not include accommodation for management retreat event.Above quoted fees and prices are exclusive of applicable tax (GST/PST/HST), disbursements or travel at $0.55/km.Invoicing will be monthly, with a net 30-day payment term. | This proposal is open for acceptance until midnight April 30, 2010. Should further clarification or dialog be required, our team at Business Acceleration Inc. are happy to discuss anything contained in this proposal or as required. Appendix A Classification of Issues Operational Processes of a Business: Operations Management Wasted stock due to late deliveries creating short shelf-life problems; Factories operating at less-than full capacity; machines are often idle in “branded” sector; Raw material costs are rising faster than price. Information Technology IT systems are antiquated and do not perform as quickly as required; Information does not move quickly through the system and create delays between customer order and production; High levels of debt prohibit investment into new technology systems. Technical Research and product development are not keeping pace with food trends. Risk Management Share price has halved in past year after a series of profit warnings; Sales are rising in one area, but profits are not; Sales have declined in branded sector, yet product a shrinking profit; Profits have fallen, despite increased sales in some areas; Cash flow is suffering; Conflict between Board Chair and CEO could erode company effectiveness; The company brand is suffering due to poor client perception of senior team and late deliveries. Sales in “branded” sector are falling by 15%, yet produce small profit; Sales in “own brand” sector are growing, but are not profitable; Human Resource Processes of a Business: Human Resources Sales staff in “own brand” and “branded” sector are not performing equally, with one sector outselling the other; Labour is often idle in the “branded” sector; Performance of Management Team is less than desired. Organizational Development Organizational structure is complex and decision-making suffers; Management team is divided and fail to present a united front with powerful customers; Staff morale may be suffering because of poor company performance, lack of leadership, and infighting between managers; Chairman of the Board is new and may require education and coaching to help him work effectively with the CEO. Interim Management Management team is dysfunctional and fail to agree on many issues; Arguments and disagreements get in the way of effectiveness and progress; It may be necessary to move managers around, or remove certain managers from the company so that a united and cohesive team may be developed. Outsourcing Presently, from information gathered, no services are outsourced; Outsourcing may present a manner in which the company can focus attention and funding on its core functions. Appendix B Cause and Effect Analysis Human Resource Processes Appendix C Project Process and Flow Bibliography Lencioni. Patrick. The Five Dysfunctions of a Team; A Leadership Fable. Jossey-Bass; 2002. Mimick, Richard and Thompson, Michael. Business Diagnostics: Evaluate and Grow Your Business. University and College 2nd Edition. Trafford Publishing. 2006. Wickham, Philip and Louise. Management Consulting: Delivering an Effective Proposal. FT Prentice Hall. 2008. White, Geoff. 1988. "Managing Conflict: Interpersonal Dialogue and Third Party Roles/ Organizational Transitions: Managing Complex Change/ Team Building: Issues and Alternatives/ Organizational Development: A Normative View/ The Technology Connection: Strategy and Change i.." Journal of Occupational Psychology 61, no. 2: 189-193. Academic Search Premier, EBSCOhost (accessed March 31, 2010). Zhong-Ming, Wang. 2003. "Managerial competency modelling and the development of organizational psychology: A Chinese approach." International Journal of Psychology 38, no. 5: 323-334. Academic Search Premier, EBSCOhost (accessed March 31, 2010). -------------------------------------------- [ 1 ]. Philip and Louise Wickham. Management Consulting: Delivering an Effective Project, 3rd edition. Prentice Hall: Financial Times, 2008. p. 32 [ 2 ]. Lencioni. Patrick. The Five Dysfunctions of a Team; A Leadership Fable. Jossey-Bass; 2002. [ 3 ]. Zhong-Ming, Wang. 2003. "Managerial competency modelling and the development of organizational psychology: A Chinese approach." International Journal of Psychology 38, no. 5: 323-334. Academic Search Premier, EBSCOhost (accessed March 31, 2010). [ 4 ]. White, Geoff. 1988. "Managing Conflict: Interpersonal Dialogue and Third Party Roles/ Organizational Transitions: Managing Complex Change/ Team Building: Issues and Alternatives/ Organizational Development: A Normative View/ The Technology Connection: Strategy and Change i.." Journal of Occupational Psychology 61, no. 2: 189-193. Academic Search Premier, EBSCOhost (accessed March 31, 2010).