Business Strategy of Thomson Reuters - Case Study Example

Business Strategy Project Business Strategy Project Introduction Thomson Reuters is one of the world’s leading providersof intelligent information for business and professional entities and individuals. Formed through the merger of the Thomson Corporation and Reuters Group in 2008, the company has established itself as a leading source of intelligent information and a multimedia giant. The company uses industrial expertise and the latest in innovative technology to provide the accurate and sensitive information to established clients in the fields of finance, law, accounting, intellectual property, science and media markets. Through its impeccable delivery, the company has over the years received recognition by some of the world’s influential organizations and publications around the world; most notably the Ethisphere Institute and Human Rights Campaign in 2014 (Rothlein,2008). Despite the company’s achievements over the decades, the emergence of other players in the market has meant that competition within the market has indeed increased. Thomson Reuters, therefore, needs to adopt short-term, positive and well matriculated changes to ensure that it stays ahead of its competitors in the market while at the same time venturing into other markets and ensuring customer satisfaction. There are several interventions that the company can adopt to achieve these changes. This report aims to identify the operations within the company that can be corrected and improved to achieve this and the various intervention measures that can be applied for this purpose (Cameron, 2007). Finally, the report will settle on one intervention that will be adopted and will compare the expected and actual outcomes and factors hindering the achievement of expected outcomes. Areas That Can Be Improved or Corrected In order for companies to undergo positive change, emphasis is usually given to certain departments and operations that will increase turnover and efficiency while at the same time reducing wastages (Gromestrein, 2010). The three main aspects of any company that can be stimulated to increase efficiency and improve delivery are management, the workforce and operation systems. By choosing to invest in these two aspects, Thomson Reuters can adopt intervention measures that will positively impact on its operations and delivery and will enable the company keep abreast with market demands and ever changing scenarios. Human resource forms a vital part of every organization’s operations. They provide the labor and technical ability to run machines and oversee processes that later translate into the final output, whether in the form of goods or services. Therefore, Thomson Reuters should adopt intervention measures that will improve worker benefit to ensure that the employee turnover rate increases. Some of the holistic measures that can be adopted to increase staff morale include provision of incentives such as health insurance, internal promotion, paid vacations and capacity building exercises. Capacity building exercises may include activities such as training, team building and leadership development. These incentives are aimed at motivating workers to increase their output and the same time to attract and retain the more experienced and skilled workers as a means of ensuring competitors do not benefit from such assets. Operation systems comprise of the various channels and methods that assist organizations to process raw material and data into the finished output. For Thomson Reuters which deals largely with the dissemination of information, it is important that the company invest in proper communication systems that will ensure efficiency, accuracy and quick delivery of information. In addition, cost effective systems will ensure that the company saves on its operations and this will eventually increase profits (Rothlein, 2008). The systems adopted by any company bear heavily on the company’s image since they play a huge part in determining the final quality of output. In the case of Thomson Reuters, the process through which information is obtained determines the accuracy and reliability of the information. Where the information given to their clients is unreliable, the company’s reputation bears the cost of this. A company’s management ensures that systems and assets complement each other in the production or delivery process. For a company to succeed, the management structure should be able to properly manage the systems and assets at their disposal. Similarly, the management should be able to identify and contain any problems that arise during the operation process and make quality decisions on behalf of the organizations. Thomson Reuters would benefit greatly from proper management structures that can be able to coordinate the organization’s operations in all the countries where the company operates. Organizational Development Interventions There are several interventions that can be adopted by the company to ensure that the key identified areas in the organization and its operations are improved upon. In improving the welfare of the workforce, human resource management interventions can be adopted by the company. Performance management will enable the company to set goals and orient employees to the desired work outcomes. Performance appraisal process involves the collection of performance data with the eventual aim of improving employees’ outputs. Developing talent is another aspect of the human resource management intervention through which coaching, mentoring and leadership development are conducted. In managing the workforce wellness and diversity, organizations aim to improve relations between staff of diverse ethnicity, race and sexual orientation to promote cohesion and a healthy team spirit within workers. Techno structural interventions can also be applied by the company through organizational restructuring. An increase in global competition coupled with rapid environmental degradation and advancements in technology have necessitated restructuring in many organizations all over the world with an aim of improving the operational processes and conforming to international policies and requirements. Reengineering is a restructuring intervention that utilizes fundamental rethinking and reviewed restructuring to overhaul conventional business processes with the aim of attaining significant improvement in delivery and performance (Russell, 2006). Through this intervention, the company can successfully address any problems experienced during its operations by providing for the establishment of highly specialized work units that are more integrated and cross-functional. All these interventions can be used by the company to undergo planned change. However, change models are necessary as they provide frameworks through which successful organizational change. One such model is the Levin’s Change Model provided by Kurt Lewis (Gromestrein, 2010). Organization Development Theory Applied Kurt Levin’s change model would be most suitable to implement in the organization given its simplistic nature and the few steps involved in the implementation of change if this model is adopted. In addition, given the fewer steps involved, it makes it easier for management to monitor the change over time. At the freeze stage, which is sometimes known as the refreeze stage, the organization will probably be stable. The suggested changes will have already been established and implemented and have become the generally accepted new standards for the organization to operate in. Once the members of the organization have fully opened up to the idea of change, the change implementation can actually start. The process of change can often be a rather dynamic one, and in most instances chaos are to be expected. However, it is a small price to pay considering the long-term benefits the organization will likely enjoy in the future. In order for the organization to be fully efficient after the change has been implemented in the organization, the employees would be required to take up new tasks and responsibilities outside of their comfort zone. Change in an organization should be viewed as an investment, in terms of not only the time pit into it but also the resources incorporated (Burke, 2009). When the change is in place and the new organization and processes are rolled out, chaos is bound to ensue as a result of resistance to change by the employees. This however, is a price that the management must be willing to pay in order to eventually accomplish enhanced effectiveness within the structure. However, the main limitation of incorporating this model in the organization is the third stage, which suggests time to rest. Given the competitive nature of the business world, there is no time for an organization to relax if at all they still hope to maintain their market share and still stay as the market leaders. It would be more beneficial to leave the organization in a somewhat soft state rather than the rigid state in order to ensure that it can constantly be molded and shaped according to the current market situation. In addition, the refreeze period will also make employees a bit scared of the idea of change and will likely make them unable to perform to the best of their ability. Proposed Schedule or Timeline for Intervention In order for change to be effective in an organization, it is important that all the employees in the organization are totally on board with the idea and they all want it. Therefore, it would help to explain to the employees the urgency with which the change is required in the organization. This however does not imply giving false information. The suggested effective way to go about this it explains to the employees the benefits the organization will enjoy is successfully implemented within the given period. Have an open and convincing dialogue with the employees to give them a clear view of the situation in the market and in order to explain to the employees the organizations current standings with other competitors in the market (Havelock, 2008). Change in the organization is a continuous process and should not just be implemented all at once. It takes a while for employees to adapt to the idea of change in organization and be comfortable with the new organization, which is understandable. Over time, it is important to carry out surveys in order to determine how effective the implemented change is and if at all; there is any further need for change. In addition, with change, employees will be required to learn and start acting differently which may not be so easy. Therefore, the resistance stage should be given a longer time allowance in order to allow people the time adapt to the new change in the organization (Dessler, 2008). Conclusion In conclusion, if the steps mentioned above are followed as stipulated and done on a regular basis, then over time the employee turnover in the organization will likely decrease. Employees will likely be happy with their work in the organization and feel motivated to perform to the best of their capability. It is important to note that employees are one of the most important assets in any organization and keeping them happy is key in ensuring the organizations success. The high turnover rate costs the organization more than they likely realize due to the high hiring costs. Therefore, it is imperative to ensure that employees in the organization are contented with the working conditions and less likely to leave in search of employment elsewhere (Montana, 2008). Lastly, it is also crucial for the management to carry out survey from time to time among the employees in order to detect any problems the organization may have and deal with it before it gets out of hand. In addition, it is important to maintain a good rapport with the employees to ensure complete honesty in the survey and give valuable feedback on the required information. References Burke, W. W., Lake, D. G., & Paine, J. W. (2009). Organization change: A comprehensive reader. San Francisco: Jossey-Bass. Cameron, E., & Green, M. (2007). Making sense of change management: A complete guide to the models, tools and techniques of organizational change. London [u.a.: Kogan Page. Dessler, G., & Phillips, J. (2008). Managing now!. Boston: Houghton Mifflin Co. Grometstein, R. 2010. Prosecutorial Misconduct and Noble-Cause Corruption. Web. Retrieved from http://www.hts.gatech.edu/dwc/images/grometstein2.pdf. Havelock, R. G., & Zlotolow, S. (2008). The Change agents guide. Englewood Cliffs, N.J: Educational Technology Publications. Montana, P. J., & Charnov, B. H. (2008). Management. Hauppauge, NY: Barrons Educational Series. Rothlein, S. (2008). Noble Cause Corruption. Retrieved from http://www.patc.com/weeklyarticles/noble-cause-corruption.shtml. Russell, J., & Russell, L. (2006). Change basics. Alexandria, Va: ASTD Press. Read More