Sharpe BMW Managing Organisational Change Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Sharpe BMW Managing Organisational Change Case Solution

Sharpe BMW’s Present Situation

Sharpe BMW, a well-known dealership company of BMW, in Grand Rapids, Michigan has come across some potential challenges following the hiring of the new service manager Tom Dunn. The revenues of the service department and the customer satisfaction index (CSI) of dealerships continued to fall after the previous service manager left the job. Additionally, Sharpe BMW’s CSI score appears to be 88% while BMW compensates dealers with financial rewards and newly released vehicles who score 91% in CSI surveys.

To cope with the rising issue a new plan was proposed to George Sharpe by the director of the service dealership. The plan involves a change in the compensation of the service technicians. It was approved and forwarded to Dunn for implementation. While looking at the plan, Dunn realized that to implement the plan some major changes need to be made in the service department and was concerned about the initiatives that are necessary for the successful implementation of the plan.

The Plan

While Sharpe BMW scored below 91% which is 88% in the CSI survey consisting of 8 questions. The management has come up with a plan to deal with the concerned issues of declining CSI and the inefficiency of the service department. The new plan suggested by the management was to give a monthly bonus of about 2-3% per hour pay to the technicians when the CSI rating is above 91%.

That will eventually act as a motivation for the technicians to perform efficiently. Better service will make the customers happy and grow repeat purchases, resulting in higher CSI ratings and more financial rewards for dealerships. The technicians were interviewed for their opinion on the plan of bonus. The plan appears that the owners are willing to reward the technicians. The bonus was only given on the best performance.

The Changes Needed

Leadership

Leadership is one of the key areas where Sharpe BMW needs to focus. The organization needs strong leadership to guide the service department toward success. The new service manager, Tom Dunn, needs to create a vision for the service department, set goals and objectives, and provide direction to the technicians to achieve these goals. He should also ensure that the employees are motivated and engaged in their work, which will lead to better performance and productivity.

Operational Processes

Operational processes are another area that requires improvement. Sharpe BMW needs to streamline its operational processes and create a more efficient workflow to increase productivity. This can be achieved by identifying bottlenecks in the current processes and finding ways to eliminate them. The organization can also invest in technology and software solutions to automate certain processes and make them more efficient.

Customer Service

Customer service is an essential aspect of the service department, and Sharpe BMW needs to prioritize it to improve the CSI score and overall customer satisfaction. The organization should focus on creating a customer-centric culture where employees are trained to listen to customers, understand their needs, and provide them with excellent service. Sharpe BMW can also implement a customer feedback method to gather opinions from customers and use it to enhance service quality.

Incentives for Technicians

The plan proposed by the director of the service dealership to change the compensation of service technicians is a step in the right direction. However, Sharpe BMW needs to implement a fair and effective incentive plan to motivate technicians to improve their productivity and efficiency. The bonus offered to technicians based on their individual CSI scores should be supplemented with other incentives such as training opportunities, career advancement, and recognition programs.

Training and Development

Training and development opportunities should be provided to technicians to boost their expertise and knowledge, which will lead to better performance. Sharpe BMW can create a training program that covers areas such as technical skills, customer service, and soft skills. The organization should also provide opportunities for technicians to join conferences, workshops, and other industry events to stay informed about the latest trends and best practices..............

Sharpe BMW Managing Organisational Change Case Solution

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Sharpe BMW Managing Organisational Change Harvard Case Solution & Analysis