Free Situation Report Sample

The company is struggling to keep pace with its cost-cutting program. Employees complain about the long-decision making process and the lack of ability to take decisions.

Background

Our industry has been becoming increasingly competitive. Management’s restructuring program “Horizon 2017” focused on SG&A expenses reduction at a sustained pace to increase operating margins, however the company is not on schedule. Moreover, a few projects and tender offers were missed because structural divisions of the firm were too slow to react and smaller competitors outpaced us and were more customer-focused. A mid-level manager has mentioned the company is “too slow to change course in a competitive setting where speed is a key success factor”.

Analysis

While expanding, the firm has lost its reactiveness in the marketplace that was once the hallmark of its success. Fast-paced recruitment to accommodate growth has narrowed the span of control too much – making it easier for smaller peers to take market share. The company should focus on keeping a relatively flat span of control that empowers low-level managers flexibility to pursue tender offer opportunities and contract as they see fit – opportunities they can monitor more efficiently by being close to the client. In consulting, maintaining this ability to be quick and efficient is a key ingredient for success. A flatter cost structure will enable this, as well as improve operating margins by reducing personnel costs.

Recommendation

I recommend flattening the span of control and simplifying the decision making process by empowering lower-level managers. In essence, floor managers should be able to take decisions as operators within a short-time frame. This is to be done by removing a management layer, thus decreasing salaries’ expenses.

Works cited

0302A Span of Control. Perf. Galton College. 0302A Span of Control. Galton College, 2 Nov. 2013. Web. 31 Mar. 2015. <https://www.youtube.com/watch?v=FjcFjo2n5Jk>.