In order to understand the new strategy well it is important to consider the things that had gone wrong. New technology was introduced in DrugDiv which included computers and a database to record the sales targets for each sales representative. Previously they were using paper as a means of internal communication or any other job related task. Although technology is essential for taking one step ahead and also to be competent in the industry but then internal marketing and effective implementation with the help of efficient communication is essential. This small SBU of a relatively large multinational gave a new laptop to each of its sales representatives so that they could easily communicate via email with the head office. A database was developed that recorded a target list for each of the representatives which gave them a set goal to achieve and this aided the management in carrying out the performance appraisals as well.
The new technology and this system were introduced in the company but without having any technician or expert in computerization since the administration committed a blunder of not being able to anticipate the problems that might occur in the system. An expert was necessary to be on board to solve problems and this is where the entire strategy fell apart. The administration and management were being over optimistic and they thought the employees could easily communicate their problems but in fact the communication channel was ineffective since employees were unable to inform the administration about the problems. The administration believed they involved the employees in decision making which was again just an assumption because the representatives had not even been involved in the decision to computerize and have a database system. The employees were never asked since they were simply told to do what the management thought was good for the company. This strategy backfired! The management believed their communication channel was informal and easily accessible to all employees and in fact 20% representatives felt their influence on any decision was quite small and 54% voted moderate influence over decisions. The database system had problems since the targets for one representative were appearing under another one’s name and data was being lost since the system crashed periodically.
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