InterClean Inc.

The assignment has three purposes: (A) identify at least five key theoretical concepts from this week's readings, (B) relate each key concept to its application in an organizational setting, and (C) communicate well-researched information clearly, concisely, and in an organized manner.

Read the InterClean, Inc. scenario to identify examples of five or more key course concepts. Remember that the mind map is a source of these concepts. Then, read the assigned text materials to develop knowledge about the concepts. You may also wish to research these concepts through database searches in the University Library. This additional research will help expand your understanding of the text materials.

By completing the worksheet following the title page, you can begin to develop your research and written communication skills. The example below is from the MBA/500 course using the USAuto scenario. This example can be useful to understanding the assignment's requirements. Please note that in describing the application of the concept, the worksheet should not contain simple one-word or even one-sentence answers; it should adequately demonstrate, in short paragraphs, careful study of the situations presented in the scenario, the simulation, and the reading materials.

***Please see the worksheet. I have already listed the concepts and highlighted them on page two. Please complete page two and page three of the worksheet.***

SCENARIO: InterClean, Inc.
Company Overview

In the $8 billion dollar institutional and industrial cleaning and sanitation industry, success is no longer about which products best cut through the grime or kill the most germs. As the industry evolves, clients are more and more interested in not just products, but solutions and services that will streamline their cleaning efforts in the wake of more stringent requirements for environmental safety.

Health care clients, for example, are continually faced with new regulations governing the maintenance of their sterile environment. Cleaning companies can offer greater value to these clients by providing turn-key solutions that include product training for employees, regular monitoring and info-sharing of new relevant regulations and, in some cases, full cleaning service contracts. Retail customers have shown interest in similar operational solutions.

For InterClean, Inc., a major player on the sanitation scene, future profitability hinges on fulfilling this emerging need. Currently, the sales force excels at demonstrating and selling product, but under the newly proposed solutions/service model, reps will be grouped into multi-functional teams prepared to support InterClean's high-quality products with high-quality service. They'll be instructed in development of full-range service packages tailored to individual accounts. They'll be trained to engage directly with facilities managers, health care professionals, and operational executives in their customers' organizations. And this will all happen in 90 to 180 days, when a marketing blitz announces the launch of InterClean's new service focus.

THE PLAYERS

David Spencer, President and CEO: At age 47, David inherited InterClean from his father, who was responsible for the company's early corporate accomplishments. A successful businessman himself, David is driven to make InterClean an industry leader. He is ambitious, competitive and willing to take risks in order to grow the business and expand into new markets.

Janet Durham, Vice President of Human Resources: Janet began as a sales representative with InterClean 15 years ago, when she was 40 years old. Though she's worked her way up to her current position, she still has strong ties to many sales force members. She is pragmatic and very interested in using technology to automate the HR function.

Tom Jennings, Vice President of Marketing: David Spencer recruited Jennings to lead this new department just a year ago, when Jennings was 62. Tom's expertise lies in strategic systems planning and he'd like to move InterClean rapidly into strategic dominance in its industry. Tom views the current corporate restructuring as a obstacle to his goal, but a necessary evil that requires his short-term attention. It's his desire to move quickly, so that he can continue his plans for global expansion.

Sam Waters, Chief of Compliance: Sam has been with InterClean for two years, and holds a law degree.

Carol Stanley, Internal Consultant: David has asked Carol to conduct a skills inventory in preparation for InterClean's launch of solutions-based selling. Tom Jennings recommended Carol for the assignment, and Carol will report to Janet Durham.

Sally Lindley, CEO of EnviroTech, Inc.: Forty-nine-year-old Sally is interested in developing some joint ventures with other firms in the cleaning industry in order to optimally leverage her future power. Politically active, she is well-connected to key state and national elected officials in Florida.

Eric Borden, Ving Hsu, and Terry Garcia, Senior Sales Specialists at EnviroTech, Inc.: Veteran employees with a combined 30 years at EnviroTech, Borden, Hsu and Garcia anticipate playing key roles in EnviroTech after it's acquired by InterClean. In fact, they expect to be named the sales and marketing leadership team for the new company.

January 31, 2005
URGENT!
MEMO TO: All InterClean Employees
FROM: David Spencer
RE: Strategic Direction

As you are aware (because we've been discussing it forever!) our industry has been evolving in response to changes governing environmental safety. While this has created more work for our clients, it has simultaneously created new opportunities for us. For quite a while, I've felt strongly that the key to expanding our company -- both domestically and worldwide -- lay with the development of full-service solutions packages. If we are among the first to introduce all-inclusive service, the potential for growth and strategic advantage is huge. That said, I'm pleased to announce that in the next three to six months, InterClean will begin a media blitz to publicly announce this new strategy.

Clearly, this is a golden opportunity for anybody at InterClean who wants to help create and fill new and exciting positions of responsibility, and I'm asking for everybody's support as we move in this exciting direction. Our goal is to provide a full spectrum of cleaning services and solutions that will become our major avenue for sales. As we align our organizational structure around this vision, we will be reviewing our current staffing -- particularly in sales and marketing -- to determine if we have the skills in place that will enable us an effective transition. We'll need to determine the current strengths of our sales team, areas of needed development, and future staffing requirements.

Obviously, though we have a talented sales team, its operation will have to adapt to fit our new direction. Solutions-based selling will require our sales force to be more knowledgeable about emerging issues in sanitation, environmental regulation of cleaning and cleaning systems, and OSHA standards. Instead of merely knowing how a product works, they will need to understand the legal, environmental, safety, ethical and regulatory issues that affect sanitation and cleaning in varied industries and settings. They'll need to develop customized packages of cleaning solutions and systems -- not just a patchwork of tools and services -- which include products and processes that meet our clients' needs. Finally, since our clients themselves may need staff education and training, our sales force must become conversant in the language of each client's industry as it relates to cleaning and sanitation.

I know this represents a significant challenge for our sales force as we learn to effectively grow and serve new markets. But I must reiterate what an excellent opportunity this is for all of us to gain valuable skills that will serve us individually and collectively over the next several years. To meet this challenge, our sales staff will undergo intensive training in the next few months. It may be grueling at times, but I am confident that the increased technical skill and expertise will pay off for everyone.

Our HR department will lead the staffing review effort. It's possible that discoveries made in the review process could necessitate internal organizational changes to help ensure a more seamless transition. It is important that our departmental teams are structured in a manner consistent with our new direction.

Later this week, I will call a meeting of the Executive Team to review each department's plans for this change. These will be exciting times, and, with your cooperation and teamwork, we all can benefit tremendously from the opportunities ahead.

FEBRUARY 1, 2005
MEMO TO: HR Staff
FROM: Janet Durham
RE: New Strategic Direction and Implications for HR

I trust you've all read David's memo regarding InterClean's move to solutions-based selling, and I'm sure the subtle references to HR's role in this process didn't get by you. It'll be up to us to screen new sales hires for the appropriate background and skill sets that will ease this transition. The existing sales staff will no doubt be watching us very closely; I'm sure more than a few of them feel threatened by this change, and it will be a challenge for all of us to play this diplomatically. Until we know what staffing changes are necessary, I'd ask that you not discuss any of our plans. Deal with panic as it occurs, but be discreet as you do -- don't add fuel to the fire.

I'd like you all to start thinking about training strategy as well. If our training and development budget is tight -- and I expect it will be based on previous experience -- then our new hires must need minimal orientation. We'll probably need to focus more of the budget on training managers to implement these changes. And of course, we should take a look at our HR policies and see if any of them could be updated to more strongly align with this new direction.

I'm depending on all of you to maintain your usual efficiency and discretion as we make this change.

Thanks.

FEBRUARY 3, 2005
E-MAIL
FROM: Tom Jennings, VP of Marketing
TO: David Spencer, CEO

Dave,

I overheard two sales reps talking about the changes and I didn't like what I heard. Sounded like pre-bunker mentality: Us against them. I don't have to tell you this isn't good. Everybody knows there will be some terminations, but we need to find a way to control this kind of talk.

Tom

FEBRUARY 7, 2005
DAVID SPENCER'S NOTES FROM EXECUTIVE MEETING

(1) Employee morale is currently low and management is concerned about employees will perceive the staffing audit and follow-up.
(2).The executives are determined to proceed in transforming InterClean's workforce in whatever way necessary to achieve the CEO's ambitious long range goals.
(3) There is some unstated mistrust of Janet Durham, who is seen by other executives as a defender of the status quo and loyal to long-time employees.
(4) To meet staffing plan expectations, we must:
1. Inventory the skills of the current sales force, and identify skills and competency levels needed for the new sales direction. Determine which gaps need to be filled with new hires.
2. Establish optimal size and composition of the sales force.
3. Project estimated training and development costs.
4. Develop a staffing audit process, and identify phases of execution.

From: Carol Stanley, Consultant
TO: Janet Durham, VP for HR
Janet,

I really think our audit process will improve if we can tell each department (particularly sales) that no one will be harmed or let go by this transition. I'd recommend recruiting key sales team leaders to help us get that message out so that we can maintain better morale.

Carol

FROM: Janet Durham, VP of HR
TO: Executive Team
There are lots of rumors floating around that huge cuts -- particularly in sales -- are coming down the pike. We need to calm things down until Carol and I can finish our staffing plans. I know that impending change makes these kinds of waves; please know that HR is doing what it can to be reassuring but it isn't easy.

FEBRUARY 21, 2005

MEMO TO: Dave Spencer
FROM: Sam Waters
Dave,

I know that you've got a lot on your plate preparing for this upcoming media announcement, but have you given any thought to compliance-related services specifically? I think they're going to be critical to the success of our clients' programs. If you agree, it probably makes sense to modify our organizational structure so that the Compliance Department reports directly to you. And if we're going to serve the compliance needs of our clients, it would also make sense to beef up my staff to help me out with that.

I'd be happy to discuss this at your convenience, but I'd prefer to do it sooner rather than later. I'd like our sales teams to be able to take advantage of what we provide as soon as possible.

FEBRUARY 22, 2005

MEMO TO: All InterClean employees
FROM: David Spencer
SUBJECT: Acquisition
I am delighted to announce that InterClean, Inc. has officially acquired EnviroTech, one of our major domestic competitors in the corporate market. With this acquisition, InterClean has taken a giant step in achieving domestic market dominance in the sanitation industry. More than that, the service expertise that comes with EnviroTech dovetails perfectly with our new strategic direction. With that expertise and InterClean's resources, we fully expect to reach our sales goals for the next year, which should increase profitability by 40 percent. This is exciting news, indeed.

Over the next four months, we will be working to merge about 60 EnviroTech sales staff and operations specialists into the InterClean structure. This will roughly coincide with the launching of our major media blitz to announce our new service focus.

I hope you'll join me in welcoming the EnviroTech staff into the InterClean family. I expect all management personnel to begin integration efforts immediately.

MARCH 8, 2005

MEMORANDUM***
TO: Tom Jennings, Janet Durham
FROM: Sam Waters
SUBJECT: Compliance Issues
My staff and I have been working on identifying a broad set of compliance issues, knowledge of which will be essential in a solutions-based selling market. For 10 of the major markets InterClean serves or would like to serve, we looked at the environmental regulations and local sanitation standards and found numerous technical specifics that will be critical for our sales folks to know.

My staff is preparing a manual that will be helpful, and should be ready in another week. We are committed to making our company's expansion successful and we anticipate that compliance will be a major issue to address with each customer group. I'd like the go-ahead to start work on a training plan to educate sales staff on compliance matters.

MARCH 10, 2005

TO: Eric Borden and Ving Hsu
FROM: Terry Garcia
SUBJECT: Acquisition Implications
I just had a conversation with Sally about our new sales strategy, and she confirmed that after a short transition at InterClean, we should be prepared to take lead roles in sales and marketing.
It's my understanding that InterClean will be looking to us for guidance in the customer- and service-based system we pioneered here at EnviroTech.

I think this is our big break; now that there will be additional funding and support of our work, we really have a chance to advance in this company. There are so many things I want to talk to you guys about (including the territory division we've discussed); can you do lunch on Thursday?

APRIL 11, 2005

E-MAIL
TO: JANET DURHAM
FROM: CAROL STANLEY
Skills Analysis Results
Janet,

Based on my personnel interviews with the InterClean sales team members, I've compiled some demographic data for you concerning proficiency levels in the skill areas we discussed (see Attachment A). And, per your request, I've created a similar analysis of EnviroTech's sales force (see Attachment B). I think you'll agree it's pretty obvious that EnviroTech's and InterClean's sales skill sets are pretty divergent. I hope this provides you with the information you need. Let me know if there's anything else you'd like me to pull out or compare.

Carol

APRIL 18, 2005

Water Cooler Conversation
InterClean Employee 1
It looks like we'll have to look for a new set of customers. I overheard Jim in Marketing Support say that if InterClean wants to sell sanitation services to hotels and convention centers, all the staff will have higher sales quotas each month and rumor has it there will be a lot of new hires. That sure doesn't sound like the company has any plans to retrain us.

InterClean Employee 2
Have you seen the report summarizing our sales team efforts over the past year. I'm not sure why this is being circulated to the Executive Team except to remind them what a lousy year we had. I know I had a lot of leads fall through because of that new client tracking system the IT department wanted us to use. It was useless -- just caused me a lot of grief. I would hate to think we're going to be judged on it when everybody is talking about how there are going to be terminations.

InterClean Employee 3
I heard that Mary resigned yesterday. She and I worked on the same marketing team since 1999 and she's going back to school for her graduate degree. I don't think she wants to be in sales anymore. Maybe she's getting out at a good time.

InterClean Employee 1
Well good for her. I've decided Ito volunteer for the training that Janet mentioned might be coming. Although, I'm concerned about not being able to keep up my level of sales production while I'm learning about new services. I don't know how they're going to determine who stays and who goes, but I think getting on board this train is probably a step toward showing my value. They're going to bring in lots of new people and if I get this training and bust myself big time, maybe I'll be able to hang in for a few months. Here we go again, huh?

*** Please provide me with an email adress so that I can email you t