IS570 Mid Term Exam
Due Class 5
The Armando Food Company recently merged with Keystone Food Company Armando Food Company is a large direct store delivery organization specializing in Snacks. Its annual sales are 6 billion dollars. The Keystone Food Company major focus is on warehouse delivery. Its annual sales are 17 billion. Keystone purchased Armando as they see significant growth in the Snack Business. The purchase cost was 13 billion dollars with anticipate synergies savings of one billion dollars annually. . The Armando Food Company is based out of New York and Keystone Food Company resides in Chicago.
Your CIO just held a System Wide Management meeting explaining the new organization structure and system strategy. Within three years, the Armando Food Company will consolidate all systems within Keystone Food Company. The Armando CIO will report to the Keystone CIO.
The System Organizations will be merged. Prior to the merger, key system leaders reported into the appropriate IS leader. For example, if the system leader who was responsible for Order Management, he/she reported into the Director of Business Systems. In the New Organization, he/she will report into the Keystone leader for Order Management.
In addition, all Armando system jobs will go through a system harmonization process. Each job will be evaluated based on its job description and will be assigned a new salary grade based on Keystone Food Company Structure.
Keystone Food Company ratio of management positions to non-management is far smaller than the current ratio in Armando Company. Many at Armando feel that their jobs are in jeopardy and are fearful of job downgrade due to the job harmonization and management to non-management ratio.
The Armando Organization relies heavily on consultants where as the Keystone Organization is a strong believer in “doing it yourself. This is a difference in how the work will be done. In addition, the Keystone Systems Methodology will be adopted. It was announced the IS supporting functions such as System Strategy, Project Management Office and Finance will be done out of Chicago.
The Keystone culture is very structure and rigid where as the Armondo Organization is more do what it takes.
You are the Systems Manager responsible for the Order Management Systems. You have twelve direct reports. A third of your staff has been with the organization for over ten years. The second third have three to ten years of experience and the last third has less than three. Keystone hires only individuals with college degrees. However, the Armondo organization would hire people with either college degree or based on experience. You have three employees who do not have college degree.
At the meeting the Armando CIO explained that you will be reporting to John Schmidt of Keystone and that 100 percent of your bonus will be based on the performance of your team after the merger. Your team will not only be merging systems but they will have to maintain the current systems for some time. Keep in mind that you are a twenty year veteran with two children in college so quitting is not an option. Your bonus is used to pay for College tuition and it is 25% of your annual salary of $125.000.
For questions 1-5, below please use the case study above.
Mid Term Paper
- Define your personal readiness (checklist)
- Review your answers
- Make a general statement about how you are feeling about the transition.
- Determine the actions you can take to help yourself increase commitment and enthusiasm for managing through transition.
- Develop a personal action plan.
- Explain the three steps in which the employees will transition through as they go through the change and how you will help them through the change equation process.
- Indicate as the Manager how you will
- Increase your personal effectiveness
- Lead your team through transition
- Align with business goals
- Complete all checklists
- Explain the CMP (Change Management Process) and specifically what tasks are included in the process.
- List the steps in each of the phases
- Explain in detail and what is involved in each step .
5. Apply the seven principles to this case study and write a brief paragraph as to how they relate.
6. Explain the differences between Project Management and Change Management and explain how Change Management can be intertwined within the Project Management process.
7, A family member RICK just lost his job. Refer to the lecture on Who Moved My Cheese and explain how RICK (Hem) should deal with the change using the key principles.
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