Question: write an action plan for following case study : The Seattle office is one of the main offices of the company, which was opened in
write an action plan for following case study :
The Seattle office is one of the main offices of the company, which was opened in and lead by the managing partner S Margolies with the other two partners. Our office is facing the main issue of no new customers or projects for the office to work on which leads to a reduction in revenue and profits, while there is no cash flow in to maintain the daily operation of the office. The Seattle office had not focused on developing business strategy to attract new customers, instead, we had heavily depended on some big and loyalty customers. This is proved by the fact that the partners who manage the Seattle office had been focusing on only three big current projects. However, two of them would be finished at the end of and the employees from the office would lack billable work.
Discussionanalysis about the situation of Seattle office:
The Seattle office has always been structured as a profit center and organized as a decentralized partnership before. We would mainly be responsible for generating revenues in order to meet the financial incentives, which depend on the annual revenue contribution. Therefore, our partners at this office usually decide the clients they would work with and then estimate the bills based on current projects. One of the benefits the partners acknowledge of this decentralized structure is that they can interact directly with customers and generate specific solutions for each customer, hence, we understand our clients clearly and can keep the close relationship with them in a long term. So far, the partners maintain work with royalty customers who could help the office to earn the best profits, and they have not faced any problems because the current customers always have more demand than our supply. This is one of the reasons which led the Seattle office to not want to expand their customer relationship to new market.
The situation is different in and the office is facing challenges of no billable work. The Executive Committee discovered the issue and came up with a plan to temporarily put the crisis on hold. They utilized resources by allocating several consultants to other offices and creating new marking plans to delegate tasks for the rest of the employees in a short time. However, to tackle this issue in the long term, the decentralized system can be kept as it is but should need some changes:
Diversification of clients offerings: instead of focusing on current base, the office should diversify their client portfolios instead of basing on old client base. The Seattle office has authority to choose clients for themselves as this is decentralized system, so utilize that benefits would distinguish itself from other offices.
Strategic planning: as decentralized system, the office has advantages to develop their strategy themselves such as having specific plan to target to new customers. This could involve market research, identifying potential clients, developing new proposals for clients needs.
Project management and resources allocation: the office should have some strategies to optimize current resources, ensure that staff have enough billable work and follow up the progress of each project.
The Executive Committee acknowledges the necessity of those improvements and they proposed to the partners about the client prospecting system. However, the partners had previously rejected the centralized client prospecting method, as they insisted that the decentralized partnership could achieve high utilization levels and is a right system to maintain the performance of all offices with the financial incentive scheme.
So we know that there is no formal control system in place at the Seattle office from the past until Lets have a quick discussion about the centralized client prospecting business system in the following parts.Strategic planning: as decentralized system, the office has advantages to develop their strategy themselves such as having specific plan to target to new customers. This could involve market research, identifying potential clients, developing new proposals for clients needs.
Project management and resources allocation: the office should have some strategies to optimize current resources, ensure that staff have enough billable work and follow up the progress of each project.
The Executive Committee acknowledges the necessity of those improvements and they proposed to the partners about the client prospecting system. However, the partners had previously rejected the centralized client prospecting method, as they insisted that the decentralized partnership could achieve high utilization levels and is a right system to maintain the performance of all offices with the financial incentive scheme.
So we know that there is no formal control system in place at the Seattle office from the past until Lets h
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