March 13, 2012
GM504-01N: Organizational Excellence & Change
Christian Gold is met with some opposition as she works to define Western Union’s global placement. The new president of Western Union points out that Western Union International, a single entity responsible for all of Western Union’s international organizational operations, was not sufficient enough to meet the global clientele. Fully versed in geography and varying cultures, Gold understands that each region must be treated uniquely based on its regional needs and culture (Gosling & Mintzberg, 2003?). By 2003, Gold proposes that Western Union International be divided into three divisions: the Americas; Europe, Middle East, Africa, and South Asia; and Asia-Pacific. Each region will be led by a division head. Gold’s theory is that each leader head can better manage the cultural needs of the individual regions, helping Western Union better target its consumers in different cultural markets. The fear of lost revenue and product control is causing pause in the parent company, First Data Corporation. Gold also faces opposition of her peers who agree with her strategic plan to grown Western Union International but differ on other aspects such as profit and loss responsibility and decentralization. Major Issues
Expanding globally requires putting trust in the hands of people who may not be familiar with the standards of operations. Western Union is U.S. centric and despite being in 195 different countries, they have not relinquished any control over marketing or their product lines. Giving up control of long U. S. managed projects is not well received amongst the current four senior vice presidents (Konrad & Mitchell, 2005, p. 6). There is a combination of interactive management and inactive management making decisions for Western Union . Western Union has steadily grown; gaining eighteen percent of increased revenues in 2002 (Konrad & Mitchell, 2005, p. 4). This growth took place under the current Western Union and Western Union International. It is because of this steady growth, due to nothing more than regular marketing, First Data Corporation is satisfied with the current make-up of the organization. Inactive management only responds to change when it is absolutely necessary to avoid an impending crisis (Ackoff, 1999, p. 50). Where First Data is inactive, Christina Gold is interactive. Gold is looking at future development of the Western Union and not just at where it has been or where it is now (Ackoff, 1999, p. 55). Alternate Course of Action
Compromise and start small; one region at a time. Change can be big and quickly become over powering. Jana Johnson, vice president of executive development for First Data, admits that the size of both Western Union and First Data is knowingly large, and knowing which direction to grow is a challenge (Konrad & Mitchell, 2005, p. 12). The implementations of all three international divisions do not have to take place at the same time. Rapid growth can cause issues to spring up all at once, overbearing the new system. Such difficulties could include product introduction timing and new foreign policy implantation. Addressing these issues with three different divisions simultaneously can be too much for the organization to bear at once and still remain operating effectively; without causing profit loses (the sole concern of Christina Gold). To test the international division, Western Union can begin with opening the largest of the three divisions. In the beginning the division leader will take charge of marketing for the region and slowly begin to obtain the profit and loss responsibility. The remaining two divisions will remain under the umbrella of Western Union International until the test trial of the largest division is complete. A new division can roll out based on a developed...