The Clean Brite Company. (CBC) Ltd is a supplier of cleaning products to a number of different industry and commercial sectors. CBC does not manufacture the cleaning products itself but purchases them from appropriate manufacturers, repackages them and sells them on. CBC provides different grade cleaning products to a number of very different sectors. For example, food processing industries, hotels, catering organisations, hospitals and public organisations such as leisure centres and schools.
The needs of each of the different sectors serviced by CBC are very different, and each sector is, therefore, treated entirely separately from the others. A catalogue detailing the cleaning products available is produced for each of the sectors – a restaurant would not be interested in purchasing the type of cleaning products used to clean equipment used by a plastics manufacturer, for example. A team of telesales staff is assigned to each of the sectors to advise potential customers and take orders.
However, supporting the sales and querying functions of each of the sectors is an organisation-wide stock control system which aims to ensure that orders for any cleaning products may be fulfilled as quickly as possible. CBC has been in operation since 1982. Over the years the company has grown, and it has a loyal customer base. In 2005, CBC bought out its main rival, Scrubaway Allbright Ltd (SAL), and began to merge operations. This merger involved streamlining operations and reducing the workforce where necessary.
Today, CBC is the leading supplier of cleaning products to UK industries and has an annual turnover of £30 million. During 2006, the Managing Director of CBC came under attack from the executive board because of the vast amount of money spent on unsuccessful I.T. projects during the last three years (approximately £12 million). As a result of the board’s concerns, an external management consultant undertook a review of the Company generally and the I.S. development functions specifically. He reported back the following: General company review
•The merger of SAL with CBC has led to two distinct organisational cultures that need to be integrated. •Similarly, the merger of the two companies, and resulting streamlining of operations, has led to employee dissatisfaction and insecurity that is clearly affecting individual performance.
•There is obvious discord between the executive board and the day-to-day management group, and this is beginning to impact upon planning and decision-making for the future. •The Information Systems (IS) Department is viewed by the rest of the organisation as distinct and aloof. Department Heads appear to have little faith in the service offered by the IS department.