Free Essay About Critical Analysis Of A Management Challenge

Organizational managers are faced with daily challenges and are expected to make decisions that will impact the corporate performance. In many profit making organization, gross and net profit is the ultimate measure of success or failure. However, other parameters determine the operational efficiency in an organization that ought to be considered alongside the profits. I was working as an intern in Darby Consulting, small management consultant firm with operations in six states in the U.S. The organization was doing well in term of the profits that has increased exponentially over the past few years. The management was all content, and the entire firm was always in celebration mode particularly in the year end as they celebrate the bonuses and good reviews. However, there was a downside to the issue, the company policy on debt correction was not clear, and often the finance department struggled with meeting the operational expenses. This paper will detail how the management was able to reverse and rectify the situation.
The company management structure was such that at the top, there were partners who acted as the engagement leaders. They were responsible for business development and signing off the assignments while consulting at the top levels. Each team consisted of a manager, a senior associate, an associate and an intern. The manager was responsible for the team composition, jobs allocation, budgeting, and ensuring that the team objectives are met. The senior was in charge of day to day running of the teams and the lead contact between the client’s management and the firm's team. It was an excellent strategy as it allowed the teams' composition to include all levels of experiences and allow close interaction between the top management and the rest of the employees.
The team members knew their roles, and they were hardworking and always strived to meet the clients' expectations. Upon the completion of the task, the control measures dictated that at the sign off and final briefing meeting, the managers were to invoice the client for payment processing. Owing to the fact that the company was not very big, the management had opted to outsource some of the operational work such as the payroll and accounting to a different firm. It turned out the contracted firm was not diligent in following up for the outstanding payments. The clients used to take longer than agreed in making the payments. This made the company fall short on the monthly cash requirements and was forced to make short-term financing. Sometimes, they would apply for a short term loan towards the month end to pay the operational costs.
The company incurred huge finance costs and as well delays in paying the suppliers thus ruining the relationships. In response to the issue, a strategic committee was formed at the highest level. The manager in our team was asked to prepare a report on the possible course of actions that will ensure that the clients pay on time and as well methods of implementation. Just like in the field, we brainstormed and each one of us was given an opportunity to present their suggestions. I suggested that the managers be made in charge of ensuring that the clients under their portfolio pay on time. As an enforcement mechanism, I suggested that the collection of the owed amount should be included in the managers’ appraisal program to motivate them to follow up. I was overwhelmed when my manager informed me that my suggestion was accepted though with some minor adjustments. The strategy worked well and the company’s cash flow issues were resolved.
In conclusion, the organizational performance is based on various parameters. It is important to monitor all the areas of operations to ensure no disruptions in the business operations. In outsourcing, the management should ensure that the consultant has the capacity to meet all the expectations. It was a great experience to be able to contribute in coming up with a solution to a real problem.