Ortf Countertop Appliances Case

Overhead Reduction Task Force

Given ORTF:

Dixon (General Manager)

Williams (Controller), ORTF Head

Burns (Sales Manager)

Erickson (Product Dev Manager)

Chase (Marketing Manager)

Wilson (Personnel Manager)

Dougherty (Production Manager)

What should Williams expect at the first meeting of the task force?

Hostility

Disbelief

Each manager defending his/her own interests

Request to put GM's office on the table as well

There will be strong pushback on this plan

How should he prepare for that meeting, and how, specifically, should the first meeting be conducted?

He needs to communicate the crisis

He needs to have a vision that he can elaborate

This is essentially stating the purpose for the meeting

He needs support from up top -- Dixon at least, and preferably the CEO. This formal authority is critical to creating buy-in from the team

He needs a plan -- as in how these cost reductions fit with the strategic direction the company is taking

He needs to put this into perspective -- ideally having numbers that prove their overhead costs are bloated

He needs a pitch -- to convince everybody that as painful as these cuts are going to be, it is in their best interest to take control over the cuts that will occur in their department, and that there is a need for everybody to work together because the different parts of the company all need to work together on this.

What, if any, discussion format or procedures should be implemented?

Each manager needs to be able to participate. They will all have concerns and interests, and will need to have an opportunity to vent those.

However, discussion has to remain civil

The focus will be, almost immediately, towards the positive -- how can we do this?