Interclean Benchmarking
Benchmarking: InterClean, Inc.
University of Phoenix
MBA/530
May 1, 2007
Benchmarking: InterClean, Inc.
InterClean, Inc. is a sanitation company who has identified their problem to fulfill the emerging needs in sanitation in order to remain profitable. InterClean's response to this situation is restructuring their organization, operational strategy, and job descriptions, which includes acquiring a domestic competitor EnviroTech, developing full-service solutions packages, providing training to current employees and new hires. Their projected outcome to these changes will meet their sales goals by increasing profitability by 40 %.
Based on recent benchmarking studies InterClean is heading in the right direction to achieve their goals. InterClean must align their organizational structure by reviewing their staffing to assess the skills of both their current staff as well as the staff of the merging EnviroTech. Humans Resources did identify that EnviroTech's and InterClean's sales skill sets are very divergent, therefore, to enable effective transitioning InterClean must determine the strength of their sales team, areas of needed development, and future staffing requirements.
As part of InterClean's restructuring they should examine the possibility of workforce reduction. According to the article found on RDS Suite database by authors Lam, Chi, and Lee (2007) companies facing similar situations made the decision to reduce their workforce, such as when AT& T merged with SBC. They achieved annual operating synergies of about $2 billion by cutting back on redundant departments and functions. Similarly, Verizon's acquisition of MCI predicated annual operating synergies of about $1 billion through workforce reduction. "Removing any duplication through the consolidation of functional areas, re-alignment of resources and optimization of technology can drive immediate improvements to operating margins" (Lam,...
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