Synergetic Solutions Report

Synergetic Solutions Report

Synergetic Solutions, Inc. (Synergetic) is a $6 million system integration business (University of Phoenix, 2011). Synergetic assembles and resells most leading computer brands, with 300 employees in five locations across the east coast (University of Phoenix, 2011). Two years ago under the direction of its Chief Executive Officer, Harold Redd, Synergetic, began branching out into network technologies (University of Pheonix, 2011). Moving into network technologies has proven a good plan for Synergetic. Recently Synergetic received an order worth $1.2 million to design a network and a $5 million order is expected soon (University of Phoenix, 2011). This success has led to a change in Synergetic's focus. Mr. Redd raised the networking solutions revenue to 80% of total sales, targeted at $12 million in the next nine months, set quarterly growth and revenue targets, and measures of employee involvement (University of Phoenix, 2011). The employee measures will include productivity and absenteeism based on industry benchmarks (University of Phoenix, 2011). Mr. Redd's charge is clear and significant changes will have to made in order to move Synergetic from a computer trading organization into a contender in the competitive network design field. The rest of this work will set out how these changes can be introduced, championed, trained, and made a part of Synergetic's corporate culture.

Three Internal and External Forces of Change

Change is inevitable in a world that is constantly changing and businesses must react to external forces that create the need for strategic change initiatives. There are three major trends that shape change; heightened competition brought on by globalism, information technology, and managerial innovation (Yin Teng & Siew Ming, 2008). Synergetic has begun changing the focus of its business in reaction to a stagnant marketplace in computer trading into the much more lucrative and fast-paced marketplace of network design. The initial response to the change has been good, but Synergetic will need to continue to make internal changes in order to move forward. Right now most of Synergetic's employees have only basic computer assembly and troubleshooting skills (University of Phoenix, 2011). So Synergetic must develop new skill sets or attract employees who possess those skills sets. Synergetic must also move from its old top-down procedures and learn to utilize cross-functional teams. In order to bring about the necessary internal changes to respond to external changes Synergetic will need strong leadership and good communication. Synergetic knows that changes must be made in order to move forward and hit revenue projections and other benchmarks.

Two Change Models and Communication

In 1947 Kurt Lewin research the change process in organizations and came to a few conclusions as well as developing a change process theory that is still respected today (Robbins & Judge, 2011). Lewin found that organizations are resistant to changed due the habits, behavior, habits, and group norms that the people who comprise organizations possess (Yin Teng & Siew Ming, 2008). Lewin's three-step model (unfreeze, change, refreeze) to help organizations learn that in order to make lasting changes they must unfreeze by disrupting the status quo, make the changes, and then refreeze at the new status quo.

Another change model was presented some years later by John Kotter. Kotter built on Lewin's three-step model, making it more detailed and easier to understand. Kotter's model has eight steps. They are: establish a sense of urgency, form a coalition for change, create a new vision and strategy for achieving it, communicate the vision, remove barriers to change, plan short-term wins, consolidate improvements, and reinforce the change (Robbins & Judge, 2011).

Synergetic's management must communicate not just the need for change, as it is probably evident to everyone, but the urgency for change in order to Synergetic to continue doing business. Synergetic is going to decentralize and form cross-functional teams, provide training, hire new people, and redevelop its compensation packages and incentives. This change must be championed from above in order to win employees over. Training and company meetings must begin immediately in order to communicate the vision and create excitement for the new challenges.

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