I have concluded my interviews with your team and have a list of recommendations based on priorities. The recommendations are unbiased and not intended to be personal attacks on the current management; they are based on the sound management principles and intended to maximize your company’s potential.
a.Realign the corporate structure. Begin by recruiting a new board of directors using outside directors, “executives of other firms but are not employees of the board’s corporation”1, in addition to a limited number of management directors from inside the company. This combination of three companies working as independent entities is not working, they must be integrated and a different management organizational structure must be implemented. This group will be able to accomplish the next recommendation.
b.Develop a mission statement and goals. The company must embark upon strategic management planning. This will include: •Clearer sense of strategic vision for the firm
•Sharper focus on what is strategically important
•Improved understanding of a rapidly changing environment1 The Wallace group lacks vision and goals for its divisions and this leads to a lack of direction for the management team. A mission statement “defines the fundamental, unique purpose that sets a company apart from other firms of its type and identifies the scope of the company’s operations in terms of products offered and markets served”1. This business must develop a corporate wide strategic management plan to set a direction for the company and its shareholders. A part of this management planning would consist of SWOT analysis, strategy formulation, implementation and evaluation. This process is often referred to as Plan – Do – Act – Check or PDAC and is a continuous process. Making a profit today is not enough; there has to be an evaluation of where the company is now, where will it be in 2, 5, & 10 years and how the company will attain those goals....