Question

Read-All a technology wholesaler has had a phenomenal growth in the orders from retailers for low-cost compact e-readers. Unfortunately for these retailors Read-All’s software systems have not been able to fulfil orders promptly and also unfortunately Read-All has been slow in processing invoices thereby affecting their cash flow negatively. The systems development staff in Read-All have lost several key staff in the last year who have yet to be replaced and thus attempts to solve these problems have been unsuccessful. In desperation the CEO, without too much forethought, engaged a consultancy company to tackle the problems with delayed orders and the slow processing of invoices Unfortunately twelve months on the situation has not improved and the consultancy fees has added to the cash flow negativity and their contract has been terminated. The CEO put the failure down to several reasons: too many advanced features were being incorporated before basic features and have tested and proven to be fit for purpose. On reflection this is probably due to Read-All’s management not having a clear vision of the software systems capabilities. And the database was extremely complex and the experience in this area was lost with the departure of staff in the previous year. The software systems encompassed a host of differing applications some of which the consultancy company had no previous experience in. At great expense the CEO attracted back to the company those key staff who previous resigned and eventually the software systems were stabilised and the processing of orders and invoices were satisfactory. Required: a. Determine why the attempts to improve the software systems failed and the contribution of the consultancy company in this failure. b. Define the organisational issues that the CEO and management team must address in the future. c. The CEO is aware that with future software systems enhancements he may not have sufficient skilled employees, due to the high demands for such expertise, and thus he may need to consider a consultancy company again. Recommend steps that can be taken to ensure a good outcome from consultancy services.

Answer 1

READ-ALL TECHNOLOGY

REASONS FOR FAILURE

EMPLOYEE TERMINATION AND NO REPLACEMENT AVAILABLE	The software company’s experienced staff had left the company which leads to this massive failure. The vacant positions were not filled and exisiting staff do not have knowledge of the working of the software.
2.HIRING PROCESS OF      CONSULTANCY	The company had not hired skilled consultancy which has the required knowledge of company’s software which further adds to negative cash flows of the company
3.POOR MANAGEMENT DECISIONS	The decision power of the management lacks expertise as decisions such as consultancy hiring should be taken with due care and by looking all alternatives

ISSUES TO BE ADDRESSED

EMPLOYEE APPRAISAL AND INCENTIVE POLICY	THE EMPLOYEE RECOGNITION POLICY SHOULD BE LOOKED INTO AS A MATTER OF CONCERN AND EMPLOYEE SHOULD BE PROVIDED WITH INCENTIVES SO THAT THE EMPLOYEE TURNOVER RATION IS REDUCED AND THEY CAN BE RETAINED IN THE ORGANISATION. THEIR MOTIVATION LEVEL SHOULD BE HIGH ABD THEY SHOULD BE SATISFIED.
HIRING PROCESS	HIRING PROCESS SHOULD BE SYSTEMATISED AND EFFICIENT PERSONS SHOULD HIRE KEEPING IN MIND THE NEED OF THE ORGANISATION
PROPER TRAINING	PROPER TAINING SHOULD BE GIVEN TO EMPLOYEES TO HANDLE SOFTWARE
DEVELOPMENT OF SOFTWARE	DEVELOPMENT OF SOFTWARE SHOULD BE DIVIDED INTO DIFFERENT PARTS LIKE FROM BASIC TO ADVANCE AND SHOULD BE REGULARY TESTED. MAKER AND CHECKER SHOULD BE DIFFERENT

CONSULTANCY SERVICES

1. AT FIRST COMPANY SHOULD UNDERSTAND WHY THERE IS A DEMAND TO HIRE THE CONSULTANCY FIRM.
2. EXAMINE WHAT KIND OF SPECIALISATION IS NEEDED IN THE CONSULTANCY FIRM
3. INVITE APPLICATIONS FROM CONSULTANCY FIRM FOR THIS CONTRACT
4. UNDERSTAND THEIR OFFERINGS AND WAY OF HANDLING THE WORK
5. DO PROPER BACKGROUND CHECK FOR THE CONSULTANCY FIRM
6. CONSIDER THEIR FEES IS AS PER THE MARKET STANDARDS.