Us_World_Bakn_Problem_Solution

Running head: PROBLEM SOLUTION: USA WORLD BANK Problem Solution: USA World Bank Kortnie Allen University of Phoenix October 1, 2007 Problem Solution: USA World Bank USA World Bank is a major financial institution with small business and large consumer customers in locations across the United States and internationally. USA World Bank has faced tremendous success domestically and needs to position itself in a way that makes it possible for them to keep pace, by new product development, with its successes internationally. Each year the company presents one new product to the Board of Directors for development consideration. Mary Monroe, Vice President of New Product Development, has a proven record of researching and selecting the most appropriate product for USA Bank development in the past. New product development is a term used to describe the complete process of bringing a new product or service to market. There are two parallel paths involved in the new product development process: one involves the idea generation, product design, and detail engineering; the other involves market research and marketing analysis. This is typically seen as the first stage in generating and commercializing new products within the overall strategic process of product life cycle management used to maintain or grow their market share (wikipedia, para.1). At USA World Bank the added pressure for a successful new product comes from the industry-wide competition and the lack of interest in the new products of the recent past. This year, the presence of an inquisitive new board member and two suggestions for company development has brought USA World bank to its current situation. Situation Analysis Issue and Opportunity Identification The Financial services industry was struggling to succeed and USA World Bank was no different. USA World Bank planned to offer an exciting new product to boost customer interest in the upcoming years. Error sources, internal validity, descriptive statistics, population and qualitative data all played a role in the issues surrounding the company. Error sources led to an issue during the April 12 Executive Board meeting; when a board member revealed inconsistencies in the wording of the questionnaire; two issues were addressed within one question and should have been addressed separately to relieve the potential of misleading statistical results. Internal validity was present when Bea Hansen, newest member of the board of directors, pointed out in the executive board meeting that the huge sample size used in the proposition for next years new product along with the possible inaccurate gender percentages and outdated timeframe data may be causing the results obtained to be skewed and therefore, inaccurate for determining the overall acceptance of the new product. Jim Wilson and Mary Monroe used descriptive statistics to compile and present their data to Brian Allen. This “method of organizing, summarizing, and presenting data in an informative way” (Lind, Marchal, Wathen pg. 8) allowed the two to present the findings in an easily accessible and understandable format. In order for USA World Bank to determine which product to propose for the following year, the company had to perform studies gathering qualitative, or non numeric, data to assess which rewards appealed to customers in order to retain the customers and stay industry competitive. Stakeholder Perspectives/Ethical Dilemmas “Ethics in general is concerned with human behavior that is acceptable or "right" and that is not acceptable or "wrong" based on conventional morality. General ethical norms encompass truthfulness, honesty, integrity, respect for others, fairness, and justice, relating to all aspects of life, including business and finance. The behavioral assumption of the modern financial-economic theory runs counter to the ideas of trustworthiness, loyalty, fidelity, stewardship, and concern for others that underlie the traditional principal-agent relationship.” (answers.com, para.1). Among the ethical dilemmas present at USA World Bank; fairness and trustworthiness are the most clearly apparent. Mary Monroe as the person whom decides which product will be presented for the following year’s development has a responsibility to her coworkers to consider their ideas in a fair manner and the employees have to trust that this will be done. Though Jim Wilson welcomed the meeting with Brian Allen, Brian would not have time to meet with each employee individually that had an idea. So, trusting the judgment of Mary Wilson is key to the success of the company. If this cannot be done, not only does the company suffer, but the employees will lose their sense of cohesiveness. Using a collage of ideas and reasonably choosing the best option for the company at the time will give USA World bank the upper hand on its competition for future product introductions. Problem Statement USA World Bank will successfully launch two new products next year as opposed to its usual one, by developing the consumer reward card and the small business reward card. End-State Vision After successfully launching two new products, USA World Bank and its executive board have decided not to limit its future options to the implementation of just one product per year. The company has developed a team to research and consider its options rather than placing the entire task into the hands of Mary Monroe. A plan has been developed which requires statistical research backed by in-house talent to investigate customer preferences, regional needs and company profitability for each product. USA World Bank is continually updating its processes to monitor environmental changes that could negatively or positively affect its business. The teams will work collaboratively to service the consumer side of the business as well as the small business side. Mary Monroe and Jim Wilson have been given instructions to prepare the teams to start working on the plans starting at the beginning of the year. Alternative Solutions When operating in business, new and existing companies use successful practices of organizations to pattern operating processes. Based on USA World Bank’s company profile and extensive research of companies with related issues; this firm can benefit greatly from benchmarking. Generic benchmarking is defined as looking beyond your own industry for the best practice (University of Phoenix, 2006). Benchmarking occurs when a company identifies available solutions by pinpointing companies that have faced and solved similar issues. In order to achieve USA World Banks goal of developing two new products, it can start by using the success of Microsoft Corporation. Microsoft Corporation is a company that develops, manufacturers, licenses, and supports software products for computing devices. Since its 1975 inception Microsoft has continued to develop innovative products and services and has remained a leader in its industry. In recent years Microsoft has taken steps to ensure the company’s leaders and organizational structure are in line with its goals for future growth and innovation. Like USA World Bank, Microsoft has placed industry-experienced leaders with passion for excellence in key roles for continued company success. Microsoft plans to take advantage of high-growth opportunities in the coming years by delivering new products and services (Microsoft Corp. 2007). During the journey from 11 employees to 76,000 in 102 countries over 30 years, Microsoft has learned that “investing in our employees and our communities” is the cornerstone of their success. The company has attributed its success to the “ability to attract and retain the most talented employees from around the world” (Microsoft Corp. 2007), this team oriented focus will promote the cohesiveness lacking in the USA World Bank organization. Microsoft has devised and announced changes that will enable the company to maintain and recruit employees and continue its reputation as one of the world’s best places to work. USA World Bank could use best practices of Microsoft Corporation to improve employee. Recognizing and embracing skills of employees will put USA World Bank back at the forefront of its field. Another company whose practices can be adopted by USA World Bank is JP Morgan Chase. JP Morgan Chase & Co. is a leading global financial services company, primarily operating in the United States, but with presence in over 50 countries. JP Morgan Chase operates through six segments: card services, retail financial services, investment bank, treasury and securities services, asset & wealth management, and commercial banks. CEO, William B. Harrison, stepped down at the end of 2005 after 38 years of service. At his departure, William Harrison emphasized attributes leading to his personal and professional successes. The importance of ethical values within companies starting from the top and cascading down creates great companies. In the financial services industry, size matters, the benefits of size are realized in a culture that values partnership, teamwork and execution. Having confidence in the abilities of employees is key and apparent in his statement “surrounding yourself with people who are smarter and better than you are, is critical because your talent pool will be a key determinate of success” (JP Morgan Chase & Co., 2006). Ethical values held by management will be obvious to employees and ultimately the likes of consumer and small business customers. USA World Bank, President of New Product Development, Brian Allen, had the passion and commitment for his organization to realize the need and the opportunity for a change. Like JP Morgan Chase & Co., USA World Bank wants to eventually offer an array of products and services to its customers so customers can take advantage of an assortment of rewards for conducting business through the company. Confidence in its employees, its industry position, and the determination to provide the best products and financial services has kept Microsoft Corporation and JP Morgan Chase on top of their missions. Risk Assessment and Mitigation Techniques A major part of decision making is examining each step of the decision making model as it relates to the situation at hand. When making a decision alternative solutions have to be identified, along with the risks associated, the probability of the risk taking place and the consequence of that risk. The solutions available for USA World Bank are; develop the new product the focuses on the consumer portion of the business, develop the new product that focuses on the small business portion of the company or develop both products. If USA World Bank exercises the option of developing the new product presented by Mary Monroe the company runs the risk of losing a large majority of the small business customers. In addition, the professional relationship between leaders in the new product development division will suffer. While the consumer reward card is a proposed benefit to consumers, but the inaccurate data used to gather the supporting information may prove the entire product unsuccessful, like the ones of the recent past. Developing the product proposed by Jim Wilson, will be a major benefit for the small business part of the organization and the rewards will retain and attract customers. This solution provides no incentive for the consumers, who can turn to another bank for the same services provided by USA World Bank. To develop the product suggested by Jim Wilson against the recommendation of Mary Wilson would definitely cause problems in the new product development department. Optimal Solution For USA World bank the ideal solution is for the company to step outside its usual behavior and implement both new products. While it may be a little difficult, this approach can appeal to the consumer as well as the small business bankers. Initiating programs keep current customers and attract new customers, which is exactly what USA World Bank needs after its undesirable results from the products of the recent past. All future board presentations will be fully investigated and presented to the board by the employee conducting the research. This way the information does not have to be explained to Brian Allen then conveyed to the board. This method will improve accuracy in information and if any questions arise the party is present to answer. This solution seems ideal, but changing the culture of the organization to one in which the employees understand their ideas will be seriously considered may take some time. It is a change in the right direction for USA World Bank. These adjustments will have positive effects on the emotional behaviors of the employees and the company as a whole. In order for this solution to be effective all parties have to work together to ensure there are no problems in the way of the companies success. Appealing to all aspects of the business and its employees will put USA World Bank on its road to success. Implementation Plan Many details are included in the solution plan, but it will not be difficult to implement them. The first step will be encouraging a team building philosophy throughout the organization. This will give the employees comfort in expressing ideas to each other. The next step will be choosing the team of individuals who will staff the new product development team. The team will establish guidelines for new product proposal submission as well as an incentive program that rewards successful programs at different levels of accomplishment. Acquiring Bea Hansen on the executive board was a blessing in disguise for USA World Bank, this addition to the board helped the company realize its statistical inconsistencies causing skewed data as the basis for its product decision. USA World Bank will use this acquisition wisely and position itself to use its professional resources to its advantage. Jim Wilson and Mary Monroe will be responsible for appointing new product development teams. Existing employees will be scouted for those with the best interpersonal relationships so that other employees will be comfortable coming to them with new product development propositions; these employees will be added to the team. The teams will be formed by the last quarter of the present year and the teams will be rolled out by the start of next year. Evaluation of Results USA World Bank is on the right road to implementing a successful new product. Relationships will have to be repaired to make this transition a successful one. After the teambuilding exercises, the team as a whole has a positive outlook regarding the future needs of USA World Bank. The consumer as well as small business products are developed and rolled out in the new year. Communication can be improved through training and weekly newsletters. Team building activities will be available weekly and required at least once monthly. Conclusion USA World Bank has to reestablish its reputation in the financial services industry. In order to restore its position a new process must be implemented for selecting which new products to develop. The needs of all interested parties; the employees, the executive board and the customers (consumer and small business) will have to be considered and a more agreeable method will have to be used. Continuing to introduce exciting new products will retain current customers as well as attract new customers and uphold the reputation USA World Bank has worked so long to maintain. The financial services industry is constantly and USA World Bank should be too. Integration of benchmarking tools will enable USA World Bank to continue its role as a leader in the international banking industry. Using best practices of other companies will assist in implementing the solution to assist in meeting its goals. The decision making model allowed each step to be analyzed and clarified, and will carry USA World Bank to success. References Answers.com. (2007). Retrieved May 26, 2007 from http://www.answers.com/topic/ethics-in-finance Cooper, D. R., Schindler, P.S. (2003). Business Research Methods. New York: The McGraw- Hill Companies Gray, C.F. & Larson, E.W. (2006). Project Management: The Managerial Process. New York: The McGraw-Hill Companies JP Morgan Chase & Co. (2006). Datamonitor. Retreived May 31, 2007 from Business Source Complete database Lind, D.A., Marchal, W.G. and Wathen, S.A. (2004). Statistical Techniques in Business and Economics. New York: The McGraw-Hill Companies Microsoft Corp. (2007). Datamonitor. Retrieved May 31, 2007 from Business Source Complete database. New Product Development. 2007. Wikipedia. Retrieved September 28, 2007 from www.wikipedia.com USA World Bank Scenario. Week One rEsource. University of Phoenix. Apollo Group, Inc. (2007). . Retrieved September 5, 2007 from https://ecampus.phoenix.edu/ Table 1 Issue and Opportunity Identification Concept Application of Concept in Scenario Reference to Concept in Reading Error Sources: The Instrument. During the April 12 Executive Board meeting; a board member noticed the wording in the questionnaire addressed two issues that should be addressed separately for more accurate results. “A defective instrument can cause distortion in two major ways. First, it can be too confusing and ambiguous. Leading questions, ambiguous meanings mechanical defects, and multiple questions suggest the range of problems.” (Cooper & Schindler, pg. 15). Internal Validity Bea Hansen, newest member of the board of directors pointed out in the executive board meeting that the huge sample size used in the proposition for next years new product along with the possible inaccurate gender percentages and outdated timeframe data may be causing the results obtained to be skewed and therefore inaccurate for determining the overall acceptance of the new product. “The ability of a research instrument to measure what it is purported to measure. The extent to which differences found with a measuring tool reflect true differences among respondents being tested.” (Cooper & Schindler, pg. 16). Descriptive Statistics Jim Wilson and Mary Monroe used descriptive statistics to compile and present their data to Brian Allen. This allowed the two to present the findings in an easily accessible and understandable format. “Methods of organizing, summarizing, and presenting data in an informative way.” (Lind, Marchal, Wathen pg. 8). Population Jim Wilson’s population was the small business segment of the business. The population for the Instant Rewards card was 140,000 existing members. “The entire set of individuals or objects of interest or the measurements obtained from all individuals or objects of interest.” (Lind, Marchal, Wathen pg. 7). Qualitative data In order for USA World Bank to determine which product to propose for the following year. They had to perform studies gathering qualitative data to assess which rewards appealed to customers in order to retain the customers and stay industry competitive. “When characteristics being studied are nonnumeric, it is called qualitative. When the data are qualitative, we are usually interested in how many or what proportion falls into each category.” (Lind, Marchal, Wathen pg. 10). Table 2 Stakeholder Perspectives Stakeholder Perspectives Stakeholder Groups The Interests, Rights, and Values of Each Group Mary Monroe Interested in her personal growth and self satisfaction. Didn’t fairly consider new products proposed by other employees Jim Wilson Interested in the growth of the small business portion of the business. Wants the projects geared toward the small business portion of the organization to be considered fairly. Table 3 Analysis of Alternative Solutions [Click twice on table to change, see instructions on next page. The alternatives and their ratings as well as the goals and their weightings shown below are for illustrative purposes, you should enter your own. Delete this paragraph when done.] Table 4 Risk Assessment and Mitigation Techniques Risk Assessment and Mitigation Techniques Alternative Solution Risks and Probability Consequence and Severity Mitigation Techniques Develop consumer focused product • May lose the backing of Jim Wilson • Product may not get the vote of the executive board because of the inaccuracy of the data • Will cause conflict and • Board may not trust the future decisions of Mary Monroe • • • Develop the small business focused product • • • • • • • • • Develop both products • • • • • • • • • Table 5 Optimal Solution Implementation Plan Deliverable Timeline Who is Responsible Table 6 Evaluation of Results End-State Goals Metrics Target