Change and Transformation at Pitney Bowes - Research Paper Example

? Outline 2. Performance management 3. Introduction and scope of the plan 4. Background 5. Purpose and Aims 6. Organizational Structure 7. Development position 8. Engagement and development of employees 9. Research and development 10. Strategic planning 11. Transforming community 12. Performance management Abstract In order to realize the mission, vision and objectives of the organization, Pitney Bowes needs a proper sense of strategic alignments. The modern globalised business environment presents businesses with myriad challenges that create the need for improved service delivery and product development. As a leader in the provision of software and hardware capabilities relating to information, the organization faces the need to institute new and improved ways of operations in order to realize its objectives. The organizational development plan, therefore, seeks to shed light on some of the most critical areas of action in addition to offering the new strategies that should be adopted by the organization in order to realize these transformations. Introduction and scope of the plan The major purpose of this organizational development plan is to bring about change and transformation at Pitney Bowes and improve the performance of the organization in the various sectors, as spelled in this plan. Specifically, the plan seeks to enable the organization to realize its objectives as spelled out in the strategic plan, achieve its vision and to transform the overall performance of the organization towards the better. In the context of managing mails, the company seeks to revolutionize the industry, as it has always done. More importantly, the plan seeks to ensure that the organization lives up to its mission statement of delivering shareholder and customer value through the provision of quality services in the market. Essentially, this is a document geared towards steering the development of the organization taking consideration of the fact that the present business environment has become almost uncertain and, hence, organizations must always strive to achieve and deliver the best in the market (Pederson, 2010). The plan will further monitor the realization of these goals through a systematic process that links up to the very expectations of the clients and other stakeholders of the organization. The plan is anchored on the Pitney Bowes organizational culture which stresses on the empowerment of staff and building the confidence of the organization’s customers scattered across the world (Lusterman, 2001). It s important to realize that any tangible organizational success can only be realized if the strategies and objectives of the organization are spelled out well and understood by all stakeholders. Everybody should be in the capacity to clearly understand their duties and roles towards the overall development of the organization. Background Pitney Bowes has always pursued a range of activities geared towards the development of the organization since its formation (2006). Much of these changes have always revolved around the establishment of a proper organizational structure that can ensure easy management and decision making. In addition, globalization and the new options brought about by technology have compelled the organization to radically transform its operations in order to comply with these demands of time. This is realized in the areas of research, development and technology where huge investments have been made in the recent past in order to improve operations and facilitate global operations. Indeed, the organization development plan presents a good basis for the organization to effectively coordinate its operations and manage its increasing affairs across the world. The concept of organizational development is no longer a conventional affair in the business world. It requires proper strategies and sufficient resource allocations in order to succeed. Pitney Bowes has always been a leading provider of services and products in communication across the world. With a present net worth of $5.3 billion and over 29,000 employees scattered across the world, the company serves both large corporations and small businesses in the critical area of communication through the provision of software and hardware facilities that facilitate these operations. It certainly enables these organizations to build proper and efficient customer relationships and ensure profitable growth. Pitney Bowes is presently introducing a range of new services which are targeted to provide even greater efficiency to the clients. They include marketing service, eco-friendly mail and location intelligence which are becoming much popular in the business world courtesy of the agents of globalization. Purpose and Aims In addition to the strategic objectives, mission and aims as spelled out in the organization’s documents; this plan is intended to ensure that the organization achieves the aims and goals of the clients and shareholders. This can be achieved through proper dealing with the complaints and enquiries directed towards the company and addressing these needs effectively. In addition, considering the importance of views and outside opinions to the development of the organization, such views and comments are highly invited and encouraged in order to make the organization as open as possible in its operations (Heckscher, 2004). Modern technology presents organizations with a dynamic environment where operations have to constantly change. In this regard, Pitney Bowes should always ensure that it effectively operates within the framework dictated by technology in order to remain relevant in its operations. Business intelligence solutions and enterprise systems should reflect the goals and aims of the organization. As a driver for success and efficiency in the organization, excellence in operations should always be pursued at all costs. Services and products of the organization should meet the highest standards of care and quality in order to sell better in the market. In order to facilitate these operations, the organization should employ and train its employs in order to benefit from the services of a high quality workforce. Training and development of the staff should therefore form part of the main affairs of the organization development (Dauphinais & Price, 2005). In addition, the staff should be well versed on the expectations of the organization. They should clearly understand what the organization needs in terms of service provision. All these activities are intended to be part of the organizational development activities and should guide the overall progress of the organization. Organizational Structure The structure of any organization is normally a great determinant of the overall performance. A very long and bureaucratic structure will often hamper the decision making process and, therefore, delay the realization of the objectives. At Pitney Bowes, despite the global nature of operations, organization structure has always been an important consideration at all levels of the organization. The organization and management structure is instituted on the premise and ability to deliver the best and meet the challenges of the present world. Pitney Bowes has engaged in over 80 acquisitions since 2000 and the organization has, therefore, grown greatly in size and operations. Despite these integrations, the management has aligned its operations to reflect a similarity across the world for the benefit of management. In this regard, the organization strongly encourages team meetings as a ways of responding quickly to the issues affecting the organization. The meetings offer a good platform through which managers can interact well with the employees of the organization. In addition, they normally offer a pleasant environment where every employee has the opportunity to give and share out their views and ideas on the various aspects of the organization. The roles of the Directors have realized many changes in the recent past as a way of improving their performance and enhancing governance within the organization. Many of these roles should be influenced with a keen view of enhancing the process of strategic planning for the organization. For instance, the department of Human Resource within the organization should include a major component of organizational development. Such a measure will ensure that the division keenly focuses it objectives on the development of the organization through efficient and effective hiring programs. The structure of the organization should focus much on the collaborative operations within the organization through roles and responsibilities that cut across all departments. Without doubt, an efficient and short organizational structure will surely reduce the red tape and many formalities often realized in decision making in the organization. Development position The initial step in the organizational development plan is to review the present organizational structure. Pitney Bowes has made significant development progress which is highlighted by the progress and achievements of the organization in the recent past. In order to facilitate such progress and enable the organization to achieve higher targets, the development plan seeks for the establishment of a long term strategy that would guide the future development of the organization through these trying economic times. It is also imperative to institute a strong strategic management team that shares common goals and values for the organization. In addition, it is important to use the best practices in information to ensure timely flow and an effective delivery process. Information management should be a major priority of the strategic management at all times since it determines the functionalism of all operations in the organization. Within these objectives as captured by the organization, several achievements have actually been realized in the organization as a sign of positive trend in the development agenda. Much has been achieved in terms of developing a forward and lucid vision and mission for the organization in order to facilitate the process. A new organizational structure for the organization is also imperative as the review and implementation process gets on course. In the finance sector, cost management and efficiency maximization has always been the top priorities (Critelli, 2000). Consequently, the development and implementation of a new finance strategy for the organization is an important milestone in cost management and ensuring that the organization manages its operations in the most affordable way possible. Engagement and development of employees Highly motivated and engaged employees are crucial for the success of any organization. They normally demonstrate the highest standards of performance and radiate a sense of optimism in order to achieve their objectives and realize the goals of the organization. At Pitney Bowes, employees are engaged through challenging and motivating work assignments and development opportunities. Much emphasis is placed upon the personal development and professional growth of the staff in order to cultivate a continuous team of leaders who can manage the affairs of the organization into the unforeseeable future. In order to improve the program, dialogue and feedback should be encouraged within the organization so as to enable the employees to realize the great importance of the training and development programs of the organization. In terms of development, the organization focuses on hiring the best and most talented employees and nurturing them through provision of opportunities for advancement. This is done as an association between the employees and their managers with a strong link and support of the Human Resources Department of the organization. The values of the company are core and central to the development programs geared towards employees. From the start of their career, employees of the organization are always encouraged to own their career progress and development in order to take advantage of the many opportunities offered by the organization for their advancement. Every employee within the organization works with their manager in order to set specific performance goals which should be achieved within a given time frame. This enables the employees to track their performance and facilitate their development process within the organization. Research and development The modern business world is governed by research and development. It is through research that new modes of operations and new strategies are identified which help to improve the operations of the organization. At Pitney and Bowes, research and development is always a major priority with a lot of investment and focus given towards the cause. The company spends an annual figure of roughly $150 million in research and development which normally leads to hundreds of inventions by the company every year. These inventions are realized in entirely all sectors of the organization including payment processing, data mining, internet technologies and mail production. The research and development activities are normally driven by the employees and are geared toward improving the overall quality of products and services offered to the customers. In order to effectively capture the needs of the customers and address the growing needs of the market, the research and development programs are normally customer-centric. Customers are strongly engaged in the process of developing new products in order to take care of the various tastes and preferences are seen in consumer behavior. In the product development process, customer value is the greatest priority and the whole process follows four stages namely: customer value, technological feasibility, financial imperatives and corporate image of the organization. These four items usually guide the development process in order to ensure that the right products are presented to the right customers. In a way, the benefit of research and development to the organization cannot really be overemphasized. The company holds many patents to its name and this demonstrates the aggressive nature of the employees in bringing change into the organization. The strategic management of the organization should therefore encourage such endeavors in order to enable the organization benefit from new ideas from its employees. Strategic planning Pitney Bowes greatly regards the concept of strategic management as the focus f all operations in the organization. This offers a clear vision and direction of all strategic activities in the organization which subsequently leads to the success of the organization. A robust program geared towards strategic planning is therefore part of the organization’s objectives on the development front (Roberts, 2008). Strategic panning offers a good ground for organizational planning, quality control and the overall growth of the organization which helps in the development of the organization. In a way, coordination of all activities in the organization is a product of a proper strategic planning process at play. All senior employees are therefore part of this important objective and are encouraged to focus much attention there. The main agenda in this regard is the development of strategic awareness, managerial skills and leadership capability within the organization in order to facilitate the management process. Sessions have to be instituted where managers can come together and link up their skills in the management of the organization. This is done in the spirit of teamwork which has always been part of the organization. Group sessions should involve all the senior people in the organization who are charged with the duty of overseeing operations. Transforming community In consideration of the fact that organizations do not operate as isolated precincts, Pitney Bowes should focus on the provision of good community services which can greatly help to boost the image of the organization. All major global organizations must always support the activities in the communities where they operate in order to empower the people and realize long-terms objectives. In addition, such community programs are usually grounds for advertising and selling the organization to the outside world. Such causes like education, infrastructure and health can fall within the community programs of the organization with a view of helping the vulnerable and disadvantaged people in the society. In such a case, the customers will clearly feel the true impact of the organization on the community and thereby seek for greater association and involvement. Performance management With all the strategies and programs in place, nothing substantial can actually be achieved if the organization does not have a proper performance management program in place. Performance management sets the clear ground for achieving the goals and objectives of the organization. The performance of employees has to be weight against certain parameters in order to evaluate and effectively reward good achievers. In such a case, it gives the organization the opportunity to gauge its progress and review its goals and objectives in case the need arises. More importantly, performance management helps to inculcate a culture geared towards performance in the organization (Cahn, 2002). The performance does not only weight against the goals of the organization but also against the customer needs and satisfaction as might be realized from their feedbacks and responses on the products and services of the organization. In this case, the organization can effectively manage its operations within its goals and objectives. It is seen that the organization development plan places all sectors of the organization as partakers in the overall progress of the organization. In order to realize any tangible success, all parties must define their roles and actively work towards their realization. The goals and objectives of the organization should guide the flow of activities. The role of good leadership and organizational structure cannot really be overemphasized in this regard. While several challenges might be realized in the attempt to ensure the growth of the organization, many of these limitations can actually be eliminated in order to facilitate the growth of the organization. The transformation of the organization largely depends upon the implementation of these strategies in the most appropriate way to ensure success. References Cahn, W. (2002). The story of Pitney-Bowes (1st ed.). New York: Harper. Critelli, M. J. (2000). Pitney Bowes Inc.: from mail to messaging: the leading provider of informed mail and messaging management. New York: Newcomen Society of the United States. Dauphinais, G. W., & Price, C. (2005). Straight from the CEO: the world's top business leaders reveal ideas that every manager can use. New York, NY: Simon & Schuster. Heckscher, C. C. (2004). White-collar blues: management loyalties in an age of corporate restructuring. New York, NY: BasicBooks. Lusterman, S. (2001). Case studies in the public affairs function: Pitney Bowes Inc. New York, N.Y.: Conference Board. Pederson, J. P. (2010). International directory of company histories. Vol. 111. Detroit, Mich.: St. James Press. Postage meter systems: a cozy cartel? Pitney Bowes, Ascom Hasler, Friden & Postalia compared. (2006). Rye, NY: What to Buy. Roberts, S. T. (2008). The history of Pitney Bowes Limited. Harlow, Essex: Pitney Bowes Ltd. Appendix Pitney Bowes Inc. Consolidated Statements of Income (Unaudited)   (Dollars in thousands, except per share data)           Three months ended June 30,       Six months ended June 30,           2012       2011(2)       2012       2011(2) Revenue:                                   Equipment sales         $ 224,235         $ 242,921         $ 444,414         $ 484,552   Supplies           70,522           78,587           146,887           161,457   Software           104,551           105,516           208,901           205,081   Rentals           145,497           156,162           285,886           312,854   Financing           122,948           136,369           249,696           276,958   Support services           171,254           176,807           344,772           355,421   Business services           406,811           418,112           820,918           841,220                                       Total revenue           1,245,818           1,314,474           2,501,474           2,637,543                                       Costs and expenses:                                   Cost of equipment sales           106,718           104,385           203,634           219,138   Cost of supplies           20,863           25,562           44,734           51,754   Cost of software           24,404           24,898           45,497           50,110   Cost of rentals           31,850           36,109           62,075           72,016   Financing interest expense           20,642           22,192           41,781           45,485   Cost of support services           112,122           115,417           227,209           230,693   Cost of business services           313,553           325,250           632,529           658,817   Selling, general and administrative           391,606           432,715           802,791           859,326   Research and development           33,776           37,441           67,849           72,199   Restructuring charges and asset impairments           1,074           4,994           1,074           31,018   Other interest expense           30,353           28,550           59,720           57,074   Interest income           (2,003 )         (2,215 )         (3,736 )         (3,437 ) Other income, net           4,372           -           1,138           -                                       Total costs and expenses           1,089,330           1,155,298           2,186,295           2,344,193                                       Income from continuing operations before income taxes           156,488           159,176           315,179           293,350                                       Provision for income taxes           52,271           53,012           67,030           94,406                                       Income from continuing operations           104,217           106,164           248,149           198,944                                       (Loss) income from discontinued operations, net of income tax           -           (635 )         19,332           (2,517 )                                     Net income before attribution of noncontrolling interests           104,217           105,529           267,481           196,427                                       Less: Preferred stock dividends of subsidiaries attributable                           to noncontrolling interests           4,594           4,594           9,188           9,188                                       Net income - Pitney Bowes Inc.         $ 99,623         $ 100,935         $ 258,293         $ 187,239                                                                           Amounts attributable to common stockholders:                                   Income from continuing operations         $ 99,623         $ 101,570         $ 238,961         $ 189,756   Loss (income) from discontinued operations           -           (635 )         19,332           (2,517 )                                     Net income - Pitney Bowes Inc.         $ 99,623         $ 100,935         $ 258,293         $ 187,239                                       Basic earnings per share attributable to common stockholders (1):                           Continuing operations           0.50           0.50           1.19           0.93   Discontinued operations           -           (0.00 )         0.10           (0.01 )                                     Net income - Pitney Bowes Inc.         $ 0.50         $ 0.50         $ 1.29         $ 0.92                                       Diluted earnings per share attributable to common stockholders (1):                           Continuing operations           0.50           0.50           1.19           0.93   Discontinued operations           -           (0.00 )         0.10           (0.01 )                                     Net income - Pitney Bowes Inc.         $ 0.50         $ 0.49         $ 1.29         $ 0.92     (1)   The sum of the earnings per share amounts may not equal the totals above due to rounding.       (2)   Certain prior year amounts have been reclassified to conform to the current year presentation.     Pitney Bowes Inc. Consolidated Balance Sheets (Unaudited in thousands, except per share data)   Assets         06/30/12     3/31/12 Current assets:                 Cash and cash equivalents         $ 499,772       $ 915,553   Short-term investments           38,549         35,863                     Accounts receivable, gross           691,332         725,446   Allowance for doubtful accounts receivable           (30,233 )       (31,117 ) Accounts receivable, net           661,099         694,329                     Finance receivables           1,221,086         1,263,826   Allowance for credit losses           (31,781 )       (39,124 ) Finance receivables, net           1,189,305         1,224,702                     Inventories           187,562         179,321   Current income taxes           20,107         116,247   Other current assets and prepayments           124,922         128,244   Total current assets           2,721,316         3,294,259                     Property, plant and equipment, net           391,651         403,657   Rental property and equipment, net           251,495         261,388                     Finance receivables           1,072,641         1,097,093   Allowance for credit losses           (19,960 )       (15,278 ) Finance receivables, net           1,052,681         1,081,815                     Investment in leveraged leases           32,725         32,977   Goodwill           2,133,559         2,162,689   Intangible assets, net           188,657         201,891   Non-current income taxes           44,299         85,410   Other assets           528,614         538,172   Total assets         $ 7,344,997       $ 8,062,258                     Liabilities, noncontrolling interests and stockholders' equity           Current liabilities:                 Accounts payable and accrued liabilities         $ 1,701,135       $ 1,675,152   Current income taxes           230,242         295,283   Notes payable and current portion of long-term obligations           375,000         577,830   Advance billings           466,926         494,068   Total current liabilities           2,773,303         3,042,333                     Deferred taxes on income           30,472         107,175   Tax uncertainties and other income tax liabilities           223,603         198,853   Long-term debt           3,306,473         3,682,798   Other non-current liabilities           633,510         643,686   Total liabilities           6,967,361         7,674,845                     Noncontrolling interests (Preferred stockholders' equity in subsidiaries)           296,370         296,370                     Stockholders' equity:                 Cumulative preferred stock, $50 par value, 4% convertible           4         4   Cumulative preference stock, no par value, $2.12 convertible           653         653   Common stock, $1 par value           323,338         323,338   Additional paid-in-capital           227,136         225,869   Retained Earnings           4,708,485         4,683,949   Accumulated other comprehensive loss           (657,658 )       (617,106 ) Treasury Stock, at cost           (4,520,692 )       (4,525,664 ) Total Pitney Bowes Inc. stockholders' equity           81,266         91,043   Total liabilities, noncontrolling interests and stockholders' equity         $ 7,344,997       $ 8,062,258      Comments As can be realized from the statements, the revenue of the organization has been increasing progressively over each quarter. This arises out of the organization’s strategic objectives geared towards improving performance and enhancing growth.   Read More