Ophthalmic Consultants of Boston and Dr. Bradford J. Shingleton (2004) Harvard Case Solution & Analysis

Ophthalmic Consultants of Boston and Dr. Bradford J. Shingleton (2004) Case Study Solution

Reduction in direct personnel cost:

The strategy is to be focused within the organization which is primarily due not because of the need but out of sheer requirement which might undertake reduction in cost. Reduction in cost is basically for enhancement of productivity and the percentage of profit growth.

Pros:

• Cost reduction baseline is known to increase the margins of profit which the sought-after benefit. The organization can perform cost reduction process as per their need to increase the profit margin.
• Increase in the productivity through reduction in cost by alarming employees about its entrance in the phase of micro-management.
• Improvement in the process standards since the effects of improvising processes is on the current process nature improving the standards of product formation.

Cons:

• Although, the process of cost reduction is a positive one in the development and growth of the organization as a long-term strategy, but false cutting of the cost may create a panic alarm throughout the organization.
• Changing in the processes followed can sometimes be harmful rather improving rate of profit growth depending on the involvement of external and internal stakeholders.
• Focusing on the reduction of cost might lead to compromise on the quality of product affecting the mission and vision of the organization and threatening the value of the brand.

Development of a new organizational structure:

Change in the structure of the organization is to control the changes in organization operations and operate it from a status quo to the desired state in the future. It aims to bring strategic changes in the organization for a client organization to ensure that the corporation operates normally throughout the change.

Pros:

• Organizations that considers external consultant for implementation in changing the structure of the organization has the benefit of external influence.
• Change in the structure of organization forces the management of organization to monitor the change execution to ensure that the processes required are in place and estimate that there are no barriers inhibiting successful implementation of the change. The most effective change in the structure of organization forces will collect the intelligence of organization in order to better understand the way the organization operates.
• Changes in the structure of organization control the change speed and the manner it changes to be executed. It assist the organization in adopting changes successfully. It also ensures that the adaptation of the change in the structure of organization is going on its right pace and the adaptation of process should be proceeded.(Black lock, 2015)

Cons:

• Change in the structure of organization is not executed directly in a normal manner through leader serving as the top main members of the organizational management. It can be somehow difficult for bringing change in the structure of the organizational force in order to get organization wide buy-in.
• While the team responsible for changing the structure of the organization assists the organization to adjust with the implemented changes, changes in the organizational structure rarely has the capability of empowerment and to provide ownership of the changes to the employees in the organization.
• Changes in the structure of organization, is to re-organize the whole structure of the organization on how it operates. However, it provides with certainty to run the organization in a smooth manner but it should not be implemented during urgency.

Recommendation:

As per the issues faced by Ophthalmic Consultants of Boston, rather they have been growing their rate of profit but due to the increase in the cost of production and advance use of medical science and technology. Similarly, with increased traffic of patient’s visit, the scheduling system of the organization had been disturbed affecting the performance of the organization. Therefore, considering three of the alternatives including Incorporation of managerial and HR expertise, reduction in direct personnel cost and development of a new organizational structure.

On the basis of the analysis and with respect to the issues experienced by the organization, it to suggest that the management of organization should go with alternative one as it will suit them the best. Lack of HR involvement in the management of the process had been a reason in disruption of the scheduling system of the organization. Thus, this issue can significantly be reduced through some investment in their HR department which will positively affect the growth of the organization significantly through improving their rate of profit growth and proper management system with high quality service provision to the patients on annual basis.

Conclusion:

Due to increased volume of patients’ visits required use of increased capacity that reduced the ability of the team the absorption of the flow of changes.The management of the organization considered three of the alternatives including Incorporation of managerial and HR expertise, reduction in direct personnel cost and development of a new organizational structure. As per lack of HR involvement in the management of the process had been a reason in disruption of the scheduling system of the organization.The management of the organization should go with alternative one as it will suit them the best.

Exhibit A – SWOT Analysis:

Exhibit B – PEST Analysis

 Exhibit C – Alternatives

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