FastCat Compensation Plan: Phase 1
Fayez AlbuhakkamNafee SukkarHaytham Almoreahel
FastCat Inc. is a medical software company that uses the information technology software to ensure high-quality healthcare provision, especially in small and medium-sized facilities. Evidently, the small and medium-sized health centers face stiff competition from bigger players in the market, which makes them experience low revenue returns as well as unstainable operations. As a result, the health centers end up offering low-quality services and products in their attempt to reduce operational costs. In this regard, the healthcare system is greatly affected, which leads to unsustainable development. In the attempt to offer a solution to this parameter, FastCat seeks to improve services of small and medium-sized firms in the globe by leveraging information technology metrics (Cronin, Cohen, Berge, Johnsen, & Moline, 2016). Therefore, this paper analyzes the objectives of FastCat’s new compensation strategy and evaluates its influence on the society and the economy at large. Using the six sigma metrics, the responsibilities and competencies of the new compensation strategy will be analyzed. Using the analysis results, recommendations will be offered on how the compensation strategy can be improved to maximize its influence in enhancing stability in healthcare provision.
One of the main findings of the six sigma analysis on the compensation objectives is to develop and sustain the competitive advantage of small and medium-sized firms. Notably, one of the main factors that lead to unhealthy competition is the advantage of economies of scale enjoyed by large firms in the market. As a result, these firms can install high-quality equipment, apply low pricing strategy, and offer high sales discounts. In this regard, the firms gain a competitive advantage, which enables them to sustain high sales volume and increased profit margins.
Apart from developing and sustaining the competitiveness of medium and small-sized health centers, FastCat aims at promoting open and indestructible compensation sales through information technology systems such as the automation software. In this regard, the company will create a virtual market in which all sellers have equal chances of succeeding. As a result, the competition will be healthy, which will increase medium and small-size health center’s chances of survival (Cronin, Cohen, Berge, Johnsen, & Moline, 2016). Notably, the virtual market created will retain and expand the firm’s consumer base across the globe. In this regard, an institution using Fast Cat’s services will not only be able to retain its consumers but also enjoy growth in its market share and increase in sales volume.
In addition, FastCat plans to improve consumer satisfaction by offering fast, reliable, and convenient service and product delivery. Evidently, by establishing a responsive and efficient online platform, the firm will be able to maximize consumer utility due to its convenience. Some of the major reasons that lead to low-quality service delivery in the local health centers include high traffic, inefficient operational strategy, and scarcity of personnel (Lucas, & Kudela, 2017). The main cause of the high turnover rate is low wages and lack of sustainable retirement benefits in the industry. Therefore, people opt for early retirement with the aim of investing in other platforms, such as entrepreneurship or the stock market, which will enable them lead a comfortable lifestyle. In addition, scarcity of manpower in the industry has made the institution overwork available personnel, which, in turn, inspires high turnover rate. In this regard, FastCat is determined to reduce the influence of these constraints in the industry through information technology software and creation of patient-based platforms.
Admittedly, by increasing the volume of sales in the small and medium-sized health centers, FastCat will enable them to acquire high revenue returns. As a result, the wage rates will be raised, which will attract talented individuals to join the industry (Vadakke-Chanat, & Shanmugam, 2017). As a result, the firm will have solved the human capital scarcity in the industry; hence, the health care system will start regaining stability. As the industries attract more talents, the level of innovation and creativity will raise, leading to high transformation and development of a sustainable system of operations. In this regard, FastCat will acquire a large market share for its products and services due to its high influence in promoting growth and sustainability. In this regard, the company’s revenue will grow at a considerably high rate as the firm assumes global market dominance.
Although FastCat does not enjoy high market positioning, its strategic approach to addressing issues that face small-scale health centers will enable it to accumulate high market share. Notably, most of its competitors such as Salesforce are more determined to build large application software, which is expensive for medium and small-sized health centers. Therefore, FastCat will experience a low competitive advantage in its chosen market segment. In addition, FastCat’s market segment accounts for over 65% of the global market share (Vadakke-Chanat, & Shanmugam, 2017). Therefore, the firm has a high possibility of acquiring high market share and accumulating high revenue returns. In this regard, FastCat will be at per with large competitors in the market in the long-term.
II. Recommended Objectives
Objective A: High Quality of Service. The first objective that any organization should set to gain success is a high quality of products and services that it offers. In order to achieve this goal, FastCat should retain qualified workers who know how to accomplish any task within their professional sphere of interests. FastCat should encourage employee’s desire to learn and become more efficient. Such efficiency can be gain through implementing a change management plan, because it forces employees to meet with short-term goals that lead to the improvement of the offered services.
Objective B: Building a Strong Team. The second important objective is building a strong team of professionals. It means that employees should be friendly and help each other rather than compete. They should remember that they have a common goal. In fact, building a healthy workplace environment is the first step to gain effectiveness. Furthermore, the company should keep recruiting the most talented professionals. Furthermore, employees should observe fairness in terms of payment system and their professional growth.
Objective C: Innovation. The third objective is a tendency of implantation of a range of innovational technologies or effective business strategies. Such objective should promote an intention to self-development and constant learning among the workers.
Objective D: Expanding the market. Finally, it is a search for new customers. In fact, the process of finding new customers is an integral part of any company’s growth. However, it is impossible without achieving all the previous objectives. The proposed change management plan will allow the firm to take leading positions in the market.
In order to achieve all these goals, the firm should initiate a change management plan.
To acquire high market share, the firm should devise measures of enhancing efficient allocation of resources. Therefore, devising responsive and efficient operational strategies is a crucial factor in any organization. Notably, FastCat’s compensation metrics involves market diversification and dominance. In this regard, the firm should initiate a change management plan that will enhance its transition to a reliable, efficient, and responsive multinational company. Admittedly, the large players in the market, such as Oracle, SAP, and IBM use a sustainable international strategy, which enables them to register high-profit margins despite their low volume of sales (Logerwell, Rand, Danielson, ; Sousa, 2017). Although FastCat’s market segment will offer high demand for its products, sustaining and consistently maximizing the satisfaction of these market segments will require intense planning and consistent evaluation. Considering all the parameters involved, FastCat should devise a change management plan, increase investment on intellectual property, use the automation metric to track, monitor and regulate market changes, and recruit and retain highly talented individuals in its structure.
FastCat’s Change Management Plan
Due to an increase in responsibility and complexity of the market that comes with the diversification strategy, FastCat will need to adjust its operational strategy to enable it operate more sustainably. In addition, the change management plan will lead to efficient allocation of resources. Moreover, Kotter’s eight steps of change will enable FastCat to efficiently transform its operations without incurring any losses in the process (Logerwell, Rand, Danielson, & Sousa, 2017). Markedly, the Kotter’s model of change also ensures that the firm’s operations remain sustainable even after the change; hence, it is a short- and long-term sustainability tool. The eight steps include;
Need for strategic change at FastCat. FastCat is an upcoming competitor, which lacks extensive experience in the market. Moreover, the firm has a small market share when compared to its competitors, such as IBM and SAP. In addition, the firm has been operating in small scale for more than ten years. In 2016, the firm realized the unexploited market segment in the global change. Identifying these market segments increased the company’s interest in diversifying its operations to the global level. However, the firm needs to realize the need for change in its operations since the global market is complex, volatile, and sensitive to operate in. In this regard, the firm will be required to set and maintain high-quality standards to enable it to not only acquire high market share but also sustain it in the long-term. Therefore, realizing the need and relevance of change will enable the firm to make insightful decisions in its operations.
Driving forces for change in FastCat. In a change management plan, the driving forces for change can be described as the reasons an enterprise requires a change in its operational strategy and assume a more responsive system that aligns with the given environment and consumer wants. One of the forces that pressure FastCat to change includes increasing the market share, developing high and sustainable sales volume, and promoting health stability to enhance the firm’s sustainability in the long term (Logerwell, Rand, Danielson, & Sousa, 2017). Moreover, identification of a profitable and unexploited market segment made the firm rethink its operational strategy in terms of consistent and sustainable economic growth. Therefore, the firm took this as a chance for it to develop a competitive advantage and enhance revenue returns on sales. Notably, targeting the medium and small-sized health centers is a bold and profit-oriented move that will enable the firm to acquire popularity and inspire high market positioning in the market.
Strategic intervention techniques. The main objective of the intervention techniques in a change management plan is to improve the operational efficiency of the organization. In a majority of cases, the strategic intervention techniques focus on improving various processes by generating ideas that inspire positive feedback in the firm’s revenue returns on investment. In this regard, the strategic intervention makes the firm responsive to the environmental constraints and arising uncertainties during operations. As a result, the firm is able to allocate its resources efficiently, which leads to accumulation of high-profit margins. In simpler terms, the intervention techniques make the developed strategies function responsively and provide desired results despite the difficulties experienced during the execution process. Some of the intervention techniques that should be employed by FastCat include increased investment in intellectual property, the need to assemble and retain highly skilled personnel, invoke rapid change in the organization, and consistently study market changes to enhance responsive adjustments.
Create vision for change. After realizing the need for change and drafting the intervention techniques, the firm should develop a responsive vision for change. Notably, the main aim of the vision is to enable stakeholders to work in unison towards attaining the firm’s objectives (Logerwell, Rand, Danielson, & Sousa, 2017). Therefore, the firm should form a committee that assembles participants from all stakeholders. In this regard, the concerns and interests of shareholders, workforce, and consumers will be addressed. For instance, the vision should provide a picture of profitable future operations to shareholders, raise wages and salaries for the workforce, and maximize utility for the consumers. As a result, all stakeholders will develop a sense of purpose, which will motivate them to put extra effort to realize the firm’s objectives.
Involve the workforce in developing transformational strategy. Notably, employees are an essential factor in enhancing organizational change. Therefore, the change plan must be aligned with their interests to enhance a swift and fast transmission. One of the most efficient ways of sustaining employee motivation is involving them in devising change strategies. Notably, it is in the nature of human beings to resist change in any given situation. The main contributor to this resistance is the establishment of “comfort zones” in the existing systems. Employees usually develop comfort zones in their working environments; thus, it becomes difficult to force to accept change. On the same note, organizational culture is one of the factors that lead to the development of resistance in the system.
Involving stakeholders in the development of the change management plan is the most responsive procedure for reducing change resistance during the transformational process. Admittedly, involving the stakeholders in plan development enables them to own the strategies being used and unanimously accept them. Moreover, devising the change management plan enables stakeholders to understand and accept their role in enhancing the desired transformation. In this regard, FastCat will experience sustainable transformation.
Create short-term goals. The main aim of creating short-term goals is to enhance easy monitoring of a firm’s progress over time. Notably, achieving the short-term goals within the given timeline ensures a firm of sustainable operation and realization of long-term goals as embodied by the vision and mission statements (Kane, 2015). In addition, the short-term goals are also meant to sustain stakeholders’ motivations because attaining each goal means that they are a step closer to their desired vision. In this regard, the short-term goals are influential in enhancing a swift and efficient transformation process.
The Company’s Internal Structure
This change management plan also highlights the importance of a competitive salary and fair compensation system. For FastCat it is highly recommended to implement a job-based internal structure that might be combined with knowledge-based structure. A person-based structure would be a bad call for this organization.
It seems that FastCat has four types of jobs within its internal structure: managerial (Vice Presidents, Division General Managers, Project Leaders, Managers, Supervisors), technical (Chief Engineer, Senior Engineers, Engineers, Senior Technicians, Technicians), manufacturing (Assembler I, Inspector I, Packer, Materials Handle Inspector II, Assembler II, Drill Press Operator, Machinist I), support (Office Manager, Admin Assistant, Principal Secretary, Word Processor II, Clerk, Messenger).
Each position will be paid regarding to a range of job duties. FastCat should also reward employees who stay with the company for a long time.
Compensable Factor 1: Responsibilities & Difficulty
Each position has its particularities and difficulties. Salary should be paid according to the level of difficulty of the duties that a certain position presumes:
Division General Managers,
Word Processor II,
Materials Handle Inspector II,
Drill Press Operator,
Machinist I 10
On the other hand, a Job-based internal structure might be a little bit unfair: some workers might perform at a higher level while his/her less-qualified colleagues get the same salary. Therefore, I propose to combine job-based internal structure with the knowledge-based compensation plan. In this case, the company will pay more attention to those who set goals and are open to learn new skills.
Compensation factor 2: Education
A High School certificate 1
Technical Degree 2
Bachelor’s Degree 3
Bachelor’s Degree + previous job experience
Bachelor’s Degree + previous job experience + diverse qualification trainings. 5
Master’s Degree 6
Master’s Degree + previous job experience 7
Master’s Degree + previous job experience + project experience 8
Master’s Degree + previous job experience + project experience + diverse training. 9
PHD in a employee’s field + team lead projects 10
Compensation factor 3: Performance
Basic understanding of deadlines and workplace productivity 1
Ability to complete work without constant supervision 2
Completes tasks ahead of the deadline 3
Coordinates other members if they have urgent working problems 4
Can multitask and handle multiple projects at once without any decrease in productivity 5
Job Structure Points Evaluation
Although devising the change management plan is an influential step, initiating and carrying out the implementation process is more sensitive. In this regard, the firm should begin by raising funds required for the transformation. Notably, FastCat should convince its stakeholders to invest in its new project using a responsive vision. After convincing them to invest in the project, the firm should begin by focusing on changing the corporate culture. Evidently, the corporate culture is the main and influential hindrance towards attaining the desired change. Thus, the firm should use various measures such as communicating the vision to the stakeholders. Although the stakeholders were involved in drafting the change plan, communicating the vision to each group of stakeholders will inspire more faith and will to carry out the change.
After stakeholders are inspired to initiate the transformational process, the firm should begin to build on the change. For instance, after meeting any short-term goals, the firm should communicate the news to stakeholders in an appealing and inspiring way. The communication sessions will enable the managerial team to motivate stakeholders by appreciating their efforts in enhancing change (Kane, 2015). As a result, the workforce and shareholders’ motivation will be sustained. In addition, building on the change will further reduce the influence of the transformation constraints and uncertainties that occur during the change process. In addition, FastCat should develop a strong marketing brand, which will inspire increase in sales in the short- and long-term basis. Notably, the strong brand will enable the firm to realize positive results within a short period; thus, the shareholders will be motivated to invest more in the project.
The firm should install automation software metrics that will enable it to track, monitor, and regulate changes in the market. Notably, the automation software will enable the firm to consistently monitor workforce output during the transformational period. Moreover, the software will evaluate consumer needs based on provided feedback. Using this information, the firm will be able to make insightful decisions that will enhance efficient allocation of resources and maximization of production output. In addition, the automation software contains some metrics that make future projections based on the firm’s track record. In this regard, the firm will be able to make necessary adjustments in time, which will enable it to evade uncertainties in the market.
Although the vision statement and short-term goals will enable the firm to sustain stakeholders’ motivation, the firm should also invest in another process of minimizing change resistance. In this regard, FastCat should use the human resource department to resolve any conflicts and develop a conducive working environment. In addition, the HR department should consistently recruit and train the workforce to enable the firm to assume consistent innovativeness in its operations (Lucas, ; Kudela, 2017). The department should also develop an efficient, reliable, and responsive customer service platform, which will allow consumers to make inquiries, raise concerns and offer suggestions. Evidently, by creating a close connection with consumers, the firm will earn their loyalty and trust. In the long-term, the organization will acquire high market positioning due to the provision of high-quality services and maximization of consumer utility. Moreover, the high responsive and reliability factors will enable the firm to acquire a competitive advantage and sustain high sales volume. As a result, the firm’s operations will be sustainable due to the high-profit margins accumulated.
Summary and Rationale
Admittedly, FastCat is a visionary organization, which plans to accumulate profit by enhancing stability in the healthcare industry. After the firm identified a profitable and unexploited market segment in 2015, its dream of becoming a large multinational industry was realized. However, its compensation strategy faces some limitations, such as resistance to change, lack of sufficient funds to initiate the change, low competitive advantage, and lack of extensive market experience. Using the change management plan to initiate and manage change is one of the most responsive strategies since it ensures efficient allocation of resources and reduces the level of uncertainties in the process. Moreover, factoring tools, such as effective marketing mix and automation software will enable FastCat to realize its dreams within a short period of time. Evidently, these strategies not only enable the firm to acquire a high market share in the global market but also enhance long-term sustainability. Therefore, in the future, FastCat will perform better because its products will experience higher market demand. Therefore, after the firm has been fully transformed it has a high possibility of being the most influential organization in the healthcare industry.
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