Kerrie Peterson Case Study

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Case summary
Following the infiltration of recession, the Access profits have been falling. The company chief executive officer convenes a meeting where it is decided that all managers should cut operations costs in their respective departments. Kerrie Peterson, a general manager for the corporate lending business, is confident that his unit can realize 15% cost reduction goal. She, however, finds it a hard bone to crack getting her senior management team to find the feasibility of the goal. Kerrie as noted previously by CEO, is bright in identifying opportunities in the market and strategizing to take advantage of such opportunities. She, however, lacks experience. Effecting changes to realize the goal although proves to be an uphill task
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There is bitterness among the members as exposed through the exchanges during the meeting. The change will also not be supported by the account managers as they think that the changes are to benefit the senior management at their own expense. Kerrie’s inexperience in leadership is also brought up as the redesign team findings highlight poor communication. All in all, means of achieving the 15% cost reduction goal are proposed to be reducing travel expenses and other discretionary expenses and redesigning how employees carry out their operations (to limit the low value adding activities). It is expected, that there is likely resistance from the workforce as the rumors have already started going around.

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Redesigned functions include analysis of customer accounts and recommending improvements, project leadership, well-prepared and updated visits to the customers. Sam points out that such change has the possibility of leading to high turnover in the workforce. A problem associated with these changes as noted by Sam is that the workforce is bound to resist them. From their interviews, the redesign team found that employees did not think that the change was for their good. Some comments implied that the employees were not fully informed and involved in the whole process; others indicated that such a move increased uncertainty while others suggested the move was to benefit the senior management.
To address this problem, Kerrie noted that she would need the assistance of senior management to help employees accept the change. As a means to reduce turnover, Kerrie directed

that all new job openings so that most of the reduction in personnel will result in normal attrition and internal

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