Friday, December 11, 2009

Stage I Article-4: X the client

If you have been following my articles for a while now then you would have encountered X many times by now and would be wondering ‘Who the heck is this X?’
X – An Introduction:
Imagine cold winters without a room heater to keep you warm or hot summers without air-conditions to keep you cool and to keep your cool. Hard to imagine isn’t it? Simple necessities of life like heat and light that many take for granted in today’s world. But have you ever wondered who creates that comfortable, welcoming environment in your homes or offices or shopping malls and all other places that are an integral part of human habitation? The answer is linked to Mechanical & Electrical (M&E) industry always. Although this could mean an electrician operating out of his van or an AC technician working out of his one man office or it could even mean a multinational company with multi-billion £ turnover and thousands of employees offering you its world class state-of-the-art services.
X is part of UK’s mechanical & electrical industry. The company offers many services within the mechanical & electrical industry sector including designing, building and project managing HVAC & Mechanical services, AC & Mechanical CAD services, AC & Mechanical installations, AC sub contracting, HVAC servicing & maintenance, Electrical installations, Electrical testing & inspection, fire alarm testing, Portable appliance testing and other specialist services of electrical, air-conditioning, heating, ventilation and allied areas.
Mechanical & Electrical companies typically compete in broad markets with differing customer size and needs that may be geographically dispersed and that may seek differing service benefits. Market intelligence publisher Mintel puts the number of firms operating within M&E sector in the year 2008 at over 27,000 of varying sizes operating within UK.
As limited resources restricts organisations from serving the wide variety in customer demand effectively it is imperative for them to target specific segment/s of customer base that provides greatest opportunity for success. Current economic climate and the future forecasts make this ever more relevant for X’s survival.
Strategic questions such as: Which criteria should be used to define the market segment? Which segments provide X with greatest opportunity? What combination of benefits & costs provide the target segment the greatest value add relative to X’s competitors?  In addition to operational decision pertaining to pricing, promotion, service delivery design and distribution can be addressed by understanding the market structure that X currently operates in and ultimately chooses to compete in.  In the Business Process Change Initiatives (BPCI) that I am working on (follow stage III articles) I am trying to align X’s internal process with its market demand. I am mainly concentrating on Purchase, Procurement and Supply-chain elements of operations in Stage III articles.
X’s History
The history of X goes back to 19th century. The company started as electrical contractors, installing telephones, electric bells and generators. During the past century the company has also sold and serviced automobile (electric & petrol), radios, TV’s, record players, refrigerators, Kitchen and many other appliances.
X today is a holding company based out of Leicester, UK. It has three major functioning companies with in -  A, B and C.
The Organisation structure of X before the change initiative is illustrated below:
The top level flow of control within X is illustrated below:
 
The Organisation structure illustrated above has undergone a Brobdingnagian metamorphosis as a result of Change management that was undertaken. Refer to Stage III Article 1 of a quick view of new structure. The objective of Stage I is to gradually walk you through key elements of transformation leading to a change in X’s organisation structure, culture and ultimately its standing in market.

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