INTRODUCTIONIn this report we will offer our expertise in the field of performance management systems. We are going to provide a concise analytical report concerning the resent misfortunes Rainbarrel Products are facing.
Rainbarrel Products was a successful, yet unrestrained company, whose leader, Keith Randall was known for being an innovative and inspirational leader. He was not, however, known for his leadership in spending restraint and fiscal control. Rainbarrel's budget was out of control and needed some serious trimming. After a couple bad quarters, it became obvious that Rainbarrel needed more than just marketing genius; it needed a budget to guide it through difficult times.
Hiram Phillips was hired to the role of CFO and expected to bring the necessary budget restraint to get Rainbarrel back on track and under control. In Hiram's words, Rainbarrel was "fat and happy", and needed to get lean. Hiram initiated a series of company-wide changes meant to bring this about.
Hiram felt he'd single-handedly turned the company's performance around. Despite Hiram only being at Rainbarrel for one year, the company's numbers had improved significantly, highlighting the positive results of the performance management system he'd put in place. In fact Hiram hit practically every target that he had set out to accomplish.
There was very good news about cost reductions and operating efficiencies, all due to the changes Hiram designed and implemented this year. Everything looked positive, until some questionable information began to filter in about the consumer complaints and employee dissatisfaction.
Rainbarrel Products knew what it needed from its workforce and created a performance management system to get it. Now, it's living with the consequences-most of them unintended. In this report it will show that sometimes numbers can be misleading when it is measuring performance of a company. Underlying problems can surface without thorough and...