1. AGC’S CHANGE MANAGEMENT IMPLEMENTATION
KENNETH C HOLMES STRATEGIC HUMAN CAPITAL MANAGEMENT PROFESSOR: JAMES LANE MARCH 9,2015 PHASE 3: INDIVIDUAL PROJECT

2. CHANGE MANAGEMENT PLAN Kotter's 8 step change model
Create a sense of urgency
Form a powerful coalition
Create a vision for change
Communicate the vision
Create a sense of urgency: When the entire company feels the need for change, and wants it, it helps the initiation process. At this stage, you are sparking the initial motivation to get things moving by creating the sense of urgency around the need for change. This process involves open, honest, and convincing dialogue about what is happening within the firm, in the marketplace and your competition. When enough people start talking about the change you propose, the urgency builds and feeds on itself (N.A., 2015).
How to accomplish this:
Start by identifying potential threats, and develop scenarios showing what the future reality could look like.
Initiate honest discussions, and provide dynamic and convincing reasons to get people talking and thinking.
Ask for support from customers, outside stakeholders and industry people to strengthen your argument.
Note: For Kotter’s model to be successful, 75% of the company’s management needs to buy into the change. If you push too hard before you have the 75% commitment, have not spent time and energy building urgency, and are not properly prepared, you are in for a rough ride.
Form a powerful coalition: It takes strong leadership and clearly visible support from key people within the organization to form the necessary coalition, and you need to convince people that change is necessary. It is important to understand you must lead change, not just manage it (N.A., 2015).
Strong leadership can be found throughout an organization, and does not necessarily follow traditional company hierarchy.
Leading change requires a powerful coalition, or team of influential people whose power comes from a variety of sources including: job title, status, expertise, and political importance.
Once the change coalition is formed, they must work as a team to continue building the urgency and momentum around the need for change.
Identify the true leaders in your organization, and your key stakeholders.
Ask for emotional commitment from these key people.
Work on team building within your change coalition.
Check your team for weaknesses, and ensure that you have a good mix of people from different departments and different levels within your company.
Create a vision for change: Take the many great ideas from your team members and link them together to create an overall vision that people can grasp easily and remember. A clear vision will help everyone understand why you are asking them to do something, and when people see what you are trying to achieve, the directives they are given will make sense (N.A., 2015).
Determine the values that are central to the change.
Develop a short summary (one or two sentences) that capture what you see as the future of your organization.
Create a strategy to execute the vision.
Ensure that your coalition can describe the vision in five minutes or less.
Practice your “vision speech” often, know it and feel it.
Communicate the vision: Because your message will have strong competition from other day-to-day communications, it is important you communicate it frequently and powerfully, and embed it in everything you do. Instead of calling special meetings to communicate your vision, talk about your vision every chance you get, and use your vision to make decisions and solve problems. When you keep your vision fresh on everyone’s mind, they will remember it and respond to it. It is also essential you “walk the talk” and demonstrate the kind of behavior you want from others. What you do is far more believable and effective than what you say (N.A., 2015).
Talk often about your change vision.
Address people’s concerns and anxieties openly and honestly.
Apply the vision to all aspects of operation, from training to performance reviews, and tie everything back to the vision.
Lead by example. Do as you want them to do.

3. CHANGE MANAGEMENT PLAN Kotter's 8 step change model
Remove obstacles
Create short-term wins
Build on the change
Anchor the changes in corporate culture
Remove obstacles: To achieve this step, you have promoted your vision and have built the buy-in from all levels of your organization, and hopefully your staff is busy achieving the benefits you have promoted. You must still ask, is anyone resisting the change? And are there processes or structures getting in the way? At this point, you should put in place the structure for change, and continually check for barriers to it. Removing obstacles will empower the people you need to execute your vision, and will help move the change forward (N.A., 2015).
How to accomplish this:
Identify, or hire change leaders whose main roles are to deliver the change.
Look at your organizational structure, job descriptions, and performance and compensation systems to ensure they are in line with your vision.
Recognize and reward for making change happen.
Identify people who are resisting the change, and help them see what is needed.
Take action to quickly remove barriers (human or otherwise).
Create short-term wins: At this point you want short-term wins to push back the critics and negative thinkers who may hurt your progress. Create short-term targets that are easily achievable, with little room for failure. The short-term wins will motivate your entire staff to achieve long-term targets (N.A., 2015).
Look for sure-fire projects that you can implement without help from any strong critics of the change.
Do not choose early targets that are expensive. You want to be able to justify the investment in each project.
Thoroughly analyze the potential pros and cons of your targets, because early failure of goals can damage the entire change initiative.
Reward the people who help you meet the targets.
Build on the change: Be careful not to declare victory too early, real change runs deep, and quick wins are only the beginning of what needs to be done to achieve long-term change. It is important to have many wins under your belt to determine if the new system is working, and each success provides opportunity to build on what went right, and to identify what you can improve (N.A., 2015).
After each win, analyze what went right, and what needs improving.
Set goals to continue building on the momentum you have achieved.
Learn about Kaizen, the idea of continuous improvement.
Keep ideas fresh by bringing in new change agents and leaders for your change coalition.
Anchor the changes into the corporate culture: To make continuous efforts to ensure the change is seen in every aspect of your organization, it should be given a permanent place in your organizations culture, and should be shown and seen in the day-to-day work. It is essential for current and new company leaders to support the change, or you may end up back where you started (N.A., 2015).
Talk abut the progress every chance you get. Tell success stories about the change process, and repeat other stories you hear.
Include the promote the change ideals and values when hiring and training new staff.
Publicly recognize key members of your original change coalition, and make sure the entire staff, new and old, remember their contribution.
Create plans to replace key leaders of change as they move on, to ensure their legacy is not lost of forgotten.

4. CURRENT STATE OF AGC Employees have no input
No cultural awareness or respect
No continued education for employee growth
No managerial cultural education
Lack of knowhow about foreign transaction
No cross-cultural management team
HR operates as an administrative function
Under AGC’s current Process Culture, employees adhere to the processes and procedures of the organization. Feedback and performance reviews do not matter much, and the employees abide by the rules and regulations, and work according to the ideologies of the workplace. This style is common in government organizations (N.A., 2013). The current Autocratic management style, management takes full responsibility for all decision making without regard for employee ideas or suggestions. It is a system where employees follow the rules and policies formulated by management, and are not encourage to understanding or accept the company’s mission, and makes no connection between employee coaching, growth, satisfaction and productivity. While this style is effective when a quick decision needs to be made, This style of management is isolating, uninspiring and non-motivational for employees at every level, creates a negative environment, and is actually detrimental to AGC’s mission. The two style work well together, but have the same effects (N.A., 2013).
One of the reasons for employee dissatisfaction is the lack of, or absence of cultural awareness and respect. It is important to understand that failure to identify cultural issues and take action can lead to culture shock, which includes: feelings of isolation, being worried and anxious, reduced job performance and high nervous energy and helplessness. Firms that do not address and respect cultural differences will have difficulty communicating, managing conflict and misunderstandings, creating leverage and cultural compatibility, developing relationships, building credibility and trust with clients. In a nut shell, discouraging culture creates a situation with no shared values, lack of trust, a blame culture, puts the focus on problems instead of opportunities, no celebration of diversity, non-tolerance for failure, and loss of confidence in leadership and the management system (Bibikova, 2015).
On the issue of continued education and growth, AGC currently has no programs in place to: update employee skills to keep pace with technology, improve professional competency, encourage growth, and retain and secure the highly-skilled employees needed for AGC’s growth.
On the issue of cross-cultural training, AGC currently has no programs in place for their managers and sales representatives to actively participate in to: understand and apply international cultural differences, understand and apply common practices for conducting foreign transaction, and to develop the knowledge and skills to be the cultural liaisons they need to be (N.A., 2015).
When conducting foreign transactions there are many common practices that must be understood. For example: eye contact in the USA is an easy way to connect with people, and indicate straightforwardness and honesty; in Arab culture it is considered respectful, and too little as disrespectful; English culture views it as respectful, but too much makes one feel uncomfortable; and in South Asia it is generally considered aggressive and rude. In the Arab world it is disrespectful to show the soles of your shoes. In India it must be understood you never serve beef at a gathering, because cattle are highly regarded and considered sacred. In Arab, Asia and Latin American countries building a relationship is a prerequisite for business transactions. It often requires lengthy meals with long discussions about non-professional topics to establish their trust and build the relationship (Bibikova, 2015).
The lack of or absence of a cross cultural management team has created a situation where AGC’s mission and goals have become lost in transition. Their management team comes from the Mid-West United states, and those individual have no cultural understanding of the three global regions: Asia (subsidiary A), Africa (subsidiary B), and South America (subsidiary C). The lack of cultural awareness has create a rift in manager-employee relations, their highly skilled personnel are leaving AGC because they do not feel respected or appreciated.
With HR currently operating strictly as an administrative function, they are utilizing outdated measures, and not establishing relationships with their local communities including: local business leaders, local colleges and technical schools, and in addition, they have no connection with current global employment issues. On top of that, they are not utilizing workforce analysis or strategic workforce planning to lead AGC, and anticipate and adapt to change.
The side effect of not ensuring continued employee education, employee discouragement, and void in cultural awareness is that employees are leaving to work for AGC’s competition in large numbers. This becomes a real problem when trying to retain and hire the best talent, and retain AGC’s current position as the global leader in circuit boards for HD television screens, and other high technologies. Because the talent required to continue and maintain our current position are leaving, the situation is potentially costing AGC their position and the skilled personnel to maintain that position.

5. POTENTIAL BENEFITS Code of Conduct and Ethics protection
Focus on Research and Development
Establish reward programs
Transition to Academy Culture
Transition to Democratic Management style
Initiation of continuous education program
Adoption of cultural awareness programs
Establishing AGC’s code of conduct and code of ethics will protect AGC in the event of unethical or illegal practices, and because it is required by U.S. law for all corporations and privately owned companies, it will place them in conformity with the law. It is fact that if an AGC employee is involved in illegal or unethical behavior, and there is not code of conduct in place, AGC can be held liable, which would include fines and penalties. I will also add, if an employee is terminated for so-called violation of company policy, and there is no written policy in place, the company may have to pay unemployment. In essence, if it is not documented, it did not happen (Sarbanes-Oxley Act, 2010).
Focusing on research and development will ensure AGC continually improves quality, costs, efficiency, and technology to keep pace with their global competition, will encourage and promote employee idea development, and help AGC retain current employees as well as recruit new talent.
Establishing a reward programs based on the say-on-pay program will link every employee’s annual bonus to AGC’s performance on measures including: product energy efficiency, completion of renewable energy and clean energy projects, the company’s reputation for environmental leadership, and reducing the company’s carbon footprint (Luber, 2010). The benefits would include financial rewards for AGC employees, and reduced costs and improved company image with the public, environmental groups and the government.
Establishing a reward program based on sales, and technological input will provide sales people a bonus based on their sales efforts and technology input resulting in product advancement, because they are also part of the team.
AGC’s transition to the Academy Culture will ensure roles and responsibilities are delegated based on an employee’s background, education and work experience; education will be taken seriously, and ensured by management to continually upgrade the skills and knowledge of all employees to improve professional competency; and ensure employees are encourages to stay and grow as human capital assets. This culture is commonly used in fields with highly-skilled employees including educational institutions, universities and hospitals (N.A., 2013).
AGC’s transition to the Democratic style of management will provide AGC employees with feedback and open discussion about organization plans and ensure ideas are welcomed and encouraged, the style will create positive communication between management and employee, and make the employee part of the decision process and part of the solution (N.A., 2013). The Democratic style will be beneficial for all parties, the company mission and bottom line, because it creates a corporate culture where managers and employees feel empowered, and that they are part of AGC’s big picture.
Under the Academy Culture, AGC would initiate a continuous education program to ensure all employees continually upgrade their skills and knowledge, improve professional competency, and keep pace with technological advances. The program would include refresher and continued education courses, as well as industry certification training, testing and issuance. Continued education will stimulate employee growth and help maintain the skilled employees AGC needs to maintain their mission. Of course, if AGC is paying for the education, training and certification, the employee will be required to stay in AGC’s employ for a minimum period of time.
The adoption of cultural awareness programs will aid management in adapting to and coordinating AGC’s multi-cultural staff, as well as effectively communicating AGC’s goals and mission to all employees.

6. POTENTIAL BENEFITS Adoption of Managerial Cultural Education Program
Establishment of cross-cultural management team
Established lines of communication
Established AGC hotline
Transform HR to a performance function
Make AGC a positive environment
Establish accountability system
The adoption of the managerial cultural education program will benefit managers going overseas, which would encompass: international cultural difference training, international business practice training, training on acceptable behavior and body language for different cultures, and foreign language training and education.
Establishing a cross-cultural management team consisting of management personnel from each subsidiary would provide input and guidance to corporate headquarters, help AGC by providing cultural awareness training and managerial cultural education training, help corporate understand how their policies and mission will translate to those divisions, and communicate AGC’s goals and mission effectively to employees in those divisions to ensure achievement of AGC objectives.
The purpose and mission of cross-cultural management:
The mission of cross cultural management (CCM) is to align the variety of cultures in the company’s workforce to the local culture. Managers should achieve effective results by recognizing and adapting to the different work styles and cultures, and achieve harmonious coordination while seeking to build strong relationships through personal rapport and reputation, and maintaining high motivation levels (Member., 2013).
For example, a workplace with multiple nationalities required the blending of different cultural values, practices, preferences, and approaches to assigned tasks. This situations requires management (human resource specialist) to coordinate the individuals into a multi-ethnic team to achieve the desired goals. Failure to do this, or coordinating improperly can result in a cultural void, resulting in employees performing individually or the development of smaller groups (Member., 2013).
For example, high attention on cross-cultural management is necessary when dealing with Eastern and Western cultures, which presents consistent differences in many aspects. Western attitudes want to preserve their pride and the egalitarian system most of the western companies opt for when structuring the staff line, and the Eastern culture want to save the face or the preference of hierarchic system in eastern companies (Member., 2013).
Building AGC’s cross-cultural team:
Expats (ex-patriots) (Jonsen, 2008 and Lane, 2015):
The use of expats (ex-patriots) is one method. Expats are western “experts”, who are sent overseas to represent the organization, and manage their interests, for a specified period of time.
Common industry examples: banks, oil companies and technology based firms.
Expats are effective if they can adapt to the new culture, are able to accepts the diversity, are satisfied with the host country, and can accept the quality of life in that country. Basically they must be a good fit and be competent.
The major problem with using expats is they often cannot adjust to change or the new culture, are unable to accept the diversity, are dissatisfied with the host country and cannot accept the quality of life.
It is common for a detailed financial explanation of every aspect of the move to be provided for the organization and the individual involved.
The return on investment (ROI) is usually expected to be 10 fold (10 times the cost of the move).
There are many issues associated with the use of expats including compensation, family issues with the move, financial costs of the move, and high level of turnover.
The ROI will account for all costs associated with the assignment, evaluation of the purpose and value of the assignment, what other organizational gains preceded the assignment, the logistics of the move (exchange rate effect on the ROI, and the evaluation of the productivity and end results.
Bi-cultural-intermediaries (BCI’s) (Jonsen, 2008):
BCI’s are people who have lived in different countries, and have first-hand experience with at least two cultures.
Western companies often fill executive roles with Chinese from Taiwan, Hong Kong, Singapore, or Chinese nationals who have studied and worked abroad.
The issues with using BCI’s include: they can be expensive and are not always loyal to their employer.
IATA cross-cultural leadership program (the I-Lead Program) (Jonsen, 2008):
Identify two cultures that need to collaborate.
Identify leadership and leadership talents from each culture, to develop intelligent cross-cultural integration and collaboration.
Identify appropriate pairs of co-leaders who are willing to be team players, have high growth potential, an open mind, and empathic nature.
Identify real projects to enhance the learning experience.
Identify a realistic time frame, usually three to six months for startup activities, content delivery and evaluation.
Share practices both good and bad, and adopt an enquiring instead of a judgmental mindset.
Adapt for the next cross-cultural challenge, because markets and cultures can differ, so replication is not recommended.
Two considerations for expats, Bi-cultural-intermediaries and IATA Leaders (Jonsen, 2008):
Most expats work for international companies with their roots in Western European/American culture, which are more individualistic, with lower power distances. Translation, younger leaders can state their ideas and opinions without any issues arising.
For example, junior employees for the USA or the UK can put out their ideas and suggestions, and volunteer for leading tasks.
In sharp contrast, China, India and most Asian cultures are highly collectivistic, with high “power distances”. Translation, junior Chinese, East Indian and Asian junior employees are extremely cautious and make sure senior team members speak first.
If using younger expats, age will be a factor in how well their ideas and opinions will be received.
Global recruitment criteria (Lane, 2015):
Strong people orientation
Strong communication skills, ability to speak a common language.
Technical knowledge and strength.
Ability to work independently, and strong individual work ethic.
Team orientation.
Practices participative or transformational leadership style, both style work with a team and lead by example.
Establishing lines and order of communication will ensure managers and employees can communicate their needs and questions. Managers should report to their plant manager and headquarters, and employees should report to their immediate supervisor. I also recommend the establishment of an idea/suggestion box for employees to submit their suggestions, that managers will read through on a routine basis.
Establishing an AGC hotline will provide all employees an outlet to ask questions pertaining to policy, and report suspicious and illegal behavior, empowering employees and reducing potential AGC losses.
Transforming HR to a performance function will require the application and use of workforce analysis which includes: measuring, analyzing, and drawing conclusions from workforce data to provide the insight, and foresight to quantify the value, Return on Investment (ROI), quality of movement, and quality of attrition of their human capital resources.
Transforming HR will also require the application and use of strategic workforce planning which will focus HR’s efforts on what is needed to lead the business, and ensure they are prepared to anticipate and adapt to change. With only 14% of HR organizations indicating effective capability, AGC needs to be onboard with workforce analysis (Schwartz, 2015, and Samdahl, 2013).
Reestablishing and transforming HR’s relationship with global issues, local business leaders, local colleges and universities will help AGC obtain employees with the education, skills, and competence to perform today’s highly-skilled positions.
Actively recruiting using social media including LinkedIn, Facebook, Twitter, and corporate branding will make AGC’s presence known, and attract the best, most educated, highly-skilled employees.
Creating a positive environment where passion for the position, compassion for the employee, embracing new technology, and appreciation and respect for innovation and ideas are engrained will provide the incentives for growth and innovation, and attract and retain the ideal employee.
The accountability system identifies how success in the implementation of the strategy or objective will be measured and tracked. Specific targets should be identified to define the level of performance or rate of improvement needed. These measures should help drive desired behavior and provide direction to others on what they need to accomplish. The measures enable the organization to test its progress in achieving goals.

7. WHY DIAGNOSE AGC? Low employee morale Void in cultural understanding
Void in employee education
Void in managerial cultural training
Void in foreign transaction knowledge
AGC mission lost in transit
Serious employee losses
The current state of employee morale is at an all time low. Because AGC uses a Process Culture and the Autocratic management style, employees must follow processes and procedures created by management, feedback and performance do no matter, employee ideas and coaching have no relevance, and employees do not even know the company mission, employees feel un-empowered, unmotivated, and unappreciated.
The absence of cultural understanding has had a dramatic effect on employee morale and appreciation. AGC current system provides no cultural training for their staff, and with three subsidiaries in Africa, Asia and South America, the need for understanding cultural differences is essential for maintaining and nurturing their employer-employee relationships.
The absence of continued employee education has created a huge gap between the current state of technological knowledge globally and the current state of technological knowledge in AGC. As a result, AGC is in serious danger of losing their top position as the global manufacturing leader of circuit boards for HD TV screens. Successful companies in the tech industry offer continuous education to keep pace with technological changes, firms that do not offer continued education will find themselves lagging behind, and losing their competitive edge.
AGC’s current plan is to send managers overseas to run their operations. This process requires them to understand the culture they are walking into, to understand how people in that region think and operate, so they will perform properly. Without this knowledge, managers will feel like a fish out of water, and will not perform well.
The absence of foreign transaction knowledge has created a roadblock to AGC’s growth. Understanding the process involved in developing overseas business relationships is essential for conducting overseas transactions.
It is obvious AGC started out with a mission, or they would have never grown to their current level. The current problem is AGC’s mission has become lost in their transition into a global leader. It may seem odd, but all too often in the process of dealing with day-to-day issues and solution, the mission takes a back seat and gets lost or forgotten.
As a result of all of the issues at AGC, their employees are leaving to work for their competition, bringing with them their knowhow and ideas. This means serious technological and intellectual losses for AGC.

8. Diagnosis issues Why diagnosis is critical
If diagnosis were not conducted
If diagnosis poorly researched and evaluated
Diagnosis is considered one of the most critical components of Shawn’s plan for many reasons including (Kent, 2001):
Many firms have difficulty changing from their current status quo and instituting better business practices that will lead their firm in a better strategic direction. Diagnosis of their problems will provide insight and motivation to make that change. This chain needs to be broken for change to be successful.
All to often the real problem is the lack of, or absence of management skills at the top level. This lack of skills can lead to inadequate problem diagnosis, the application of inappropriate corrections, and not addressing the real problems.
Diagnosis of company problems should be a management skill, but all to often management is actually tied to the problems, and therefore, are too close to the problems to be objective in finding solutions.
Management may lack the skills to properly diagnose their company problems, and in the process assume more than necessary. Asking the right questions is always appropriate: If the problem is product quality, poor team work, or any other issue, address the reasons for the that issue. The answer may be much simpler than was thought to be.
Management may seek a fast solution by turning to: The use of “quick fixes”, fad solutions, marketing propaganda, zealous sales people offering peace of mind, trade journals, textbook, newspapers and gurus, which is not the answer and never will be. Truth be told, save your money and properly diagnose the company’s problems. Management must understand the importance of adequate diagnosis to finding the root problems, or the problem will persist or become worse.
Management may resort to drastic measures like downsizing to attempt to solve the problem. Fact is 85% of the top 1000 companies in North America have downsized, and one-half to one-third have still not achieved satisfactory results, because the root problem was never addressed.
Management may assume quality control is the issue. Fact is 90% of manufacturing and service companies have some kind of quality improvement program , and still 2 out of every 3 fail to meet expectations, again because the root problem was never addressed.
The greatest barrier to corporate change is that companies have great difficulty seeing themselves as they actually are. They need to see the truly important aspects of the company, its inner life, the real drivers, predictors, causes of success and failure, these often remain hidden and unacknowledged.
For short-term and long-term viability and success, values including: assertiveness, leadership, executive will, entrepreneurship, morale, and the inner life of the company are important. All to often they are not thought of as significant. In truth, measuring them requires a much greater degree of skill and experience.
Who performs the diagnosis is a major consideration. There are questions that must be asked before hiring an outside consultant to perform any diagnosis. Is that person qualified and objective? Determining the root cause of business problems requires highly skilled activities and experience, and should command an appropriate fee. If the fee seems too low, you have to ask yourself “is this the right person for the job”?
The fact is, if you do not seek for the root of the problem, you are likely to resort to measures that are unnecessary, extreme, and far more costly than you could ever imagine. Seek the root cause or suffer the consequences.
If a diagnosis is not conducted the repercussions could include (Kent, 2001):
Management is likely to make assumptions and resort to extreme measures that can prove unnecessary such as downsizing, resorting to fast solutions that do not address the actual problem, assuming they know the solution when they do not, making changes to areas that do not need fixing, not being objective enough to evaluate the situation properly, and wasting money and time. In the end, making the situation worse.
If a diagnosis is poorly researched and evaluated the result could be (Kent, 2001):
Management is likely to make changes based on inaccurate information, and by not researching deep enough, make adjustments to areas that were never the real problem, or result to extreme measures that are unnecessary, over the top, and actually make matters worse. Those measures include: downsizing, resorting to quick fixes, assuming the problem is one thing when it is something else, not being objective enough to see the error in the diagnosis, wasting time and money, etc.

9. THE PRIMO-F MODEL A brief history Formula Current performance (FiMO)
Future potential performance (RECoIL)
Scoring system
Limitations and disadvantages
Research and analysis conducted by
A brief history: The PRIMO-F Model was originally developed by RapidBl & Morrison as part of the SWOT analysis for organizational evaluation, to provide a consistent framework for evaluating internal issues and benchmarking. The issue with most analysis methods is that the user applies it to their area of expertise, for example: a finance specialist will apply to finance, a marketing specialist will apply it to marketing, and so on. The benefit to using PRIMO-F is that it addresses all key areas of a business including: finance, marketing and operations, resources, experience, controls and systems, and innovation and leadership. Application of the PRIMO-F model allows for evaluation of all aspects of a business, determines where the issues are, their root cause, and provides a simplified way to show strengths and weaknesses in relevant areas, allowing management to make the necessary adjustments to solve the issues (N.A., PRIMO-F Model: Summary and Forum-12 manage, 2015).
The PRIMO-F model asserts that an organization with successful current performance and promising future performance will grow and perform. If their present performance is poor, it does not mean that the situation cannot change, and if current performance is satisfactory, their future success is not guaranteed.
The PRIMO-F model provides and includes a thorough analysis of the People, Resources, Innovation, Marketing, Operations and Finance area to identify the strengths and weaknesses within those areas. It is important to understand that strengths needs to be maintained in the future while weaknesses require the development of improvement actions or plans. At this stage it is highly recommended that a Prioritization plan, set objectives, and their associated Relative Measurement Systems be established.
PRIMO-F can be used in combination with PEST Analysis when conducting a SWOT Analysis. The PEST framework will help investigate the external factors pertaining to the external environment (threats and opportunities), while PRIMO-F can be used to analyze the internal factors (strengths and weaknesses) of an organization. The PRIMO-F model is considered an advanced technique to narrow the focus of a strategic analysis to internal factors.
Formula: Organizational Growth Effectiveness = Current Performance x Future Potential Performance
Current performance includes results in the fields of Finance, Marketing and Operations (FiMO).
Future potential performance includes results in the areas of Resources, Experience, Control, Innovation and ideas, and Leadership (RECoIL).
Scoring system (N.A., PRIMO-F-The Business Growth Model, 2011):
Areas are scored based on the numbers 1-10, 1=low and 10=high (development priority) (negatives) and 1=oops- and 10=world class (positives).
People Resources Innovation/Ideas Marketing Operations Finance
Limitations and disadvantages (N.A., PRIMO-F Model: Summary and Forum-12 manage, 2015):
PRIMO-F has no prioritization, each parameter is considered as a qualitative standard.
As a tool is has a broad application range, so if the user excels in Finance or Marketing they will likely be more concerned about their field of expertise than the others.
Separating current from future performance can sometimes be difficult.
The research and analysis is commonly conducted by a highly-skilled facilitator working for a professional firm, who will work with the management team to score the business and identify areas requiring action, but it can be conducted internally if management has specialized training and expertise in specific areas. It is not recommended this analysis be done internally because the individuals may be too close to the problems to be objective (N.A., PRIMO-F-The Business Growth Model, 2011).

10. CATEGORIES AND DATA Resources Experience Control Innovation and ideas
Leadership
Categories of performance and data collected (N.A., PRIMO-F Model: Summary and Forum-12 manage, 2015):
Resources:
Liquidity and availability of financial resources including financing.
Technological competencies and expertise level.
State and obsolescence degree of tangible assets.
Product range and life cycle.
Experience:
Business maturity.
Management experience in: borrowing, product development, competing in different markets, use of external resources and change agents, delocalization or outsourcing, and managing growth.
Control:
Information Management and Controlling Systems
Degree of professionalism and responsibilities of management.
Planning and monitoring adequacy.
Delegation levels.
Performance assessment methods.
Innovation and ideas:
Ideas generation within the staff: number and quality of ideas.
The number and source of idea innovation being considered.
Assessment of new ideas and the processes involved.
Amount of developed or tested new ideas compared to disregarded ideas.
The creativity level of the ideas and innovations generated.
Level of market planning of their ideas.
Leadership:
Participation of senior managers.
Leaders personal objectives and ambition.
Leaders vision, education level, and involvement in continuous training.
Attitude toward staff and leadership development.
Management style: Results oriented management, results-based management, management by objectives, Goleman’s leadership style, Charismatic Leadership, Situational Leadership.
Attitude to change.
Strategic understanding of Business Environment.

11. The potential root caused of agc’s problems
Absence of employee input or suggestions
Absence of cultural awareness education
Absence of employee continued education
Absence of managerial cross-cultural education
Absence of cross-cultural management team
HR performing as an administrative function
The potential loss of AGC’s top position
The absence of employee input and suggestions is the result of AGC’s application of the Process Culture and the Autocratic Style of management. The combination of culture and management style have created a corporate environment where employees must adhere to the processes, procedures, rules and regulations that have been established by management, and decision making does not encourage: employee ideas, suggestions, employee understanding or acceptance of the company mission, employee coaching, growth, satisfaction or productivity. In fact, the combination creates an isolating, uninspiring, non-motivational, and negative environment for everyone, demands not commands, and is extremely detrimental to AGC’s mission. It is highly unlikely AGC intended for this to happen, the likely scenario is AGC fell into a comfort zone that does not work in the global environment. This combination is commonly used in government organizations, but it does not work well in the modern corporate world.
The absence of cultural awareness and respect is the result of the assumption that one set of work culture standards works for all. This approach has created a disconnect between management and employees within each subsidiary, and has created an environment that has no shared values, no trust, focus on problems instead of opportunities and solutions, no celebration of diversity, not tolerance for failure, and a loss of confidence in leadership. Cultural awareness training bridges the gap between corporate office culture and cultural differences around the world. All too often, management will not see or understand the need for the drivers that encourage employee happiness and productivity.
The absence of employee continued education is the result of the assumption that it is not necessary. The truth is employee education is essential for keeping pace with technology, continually improving professional competency, encouraging growth, and retaining and securing the best talent available. AGC needs to understand that firm’s seeking to retain and acquire highly-skilled and educated talent have established education programs which include enhancement training and certification programs. Firms that do not encourage continuous education, will find it hard to retain and recruit highly-skilled employees. Many companies also do not fully understand the causes of success and failure, this disconnect is extremely detrimental to company productivity, technological advancement, and company success.
The absence of managerial cross-cultural education training and foreign transaction training is the result of the assumption it is not important. A comprehensive understanding of common business practices must be followed to conduct business in foreign regions. Since AGC has divisions in Africa, Asia and South America, it is essential that AGC management and their sales representatives be culturally intelligent, competent, and able to understand and apply international cultural differences to represent AGC in a marketing capacity, and perform as AGC’s cultural liaisons. The absence of this training and understanding will make it very difficult to conduct business beyond the United States.
The disconnect in conducting foreign transactions includes the many common practices that must be understood. For example: eye contact in the USA is an easy way to connect with people, and indicate straightforwardness and honesty; in Arab culture it is considered respectful, and too little as disrespectful; English culture views it as respectful, but too much makes one feel uncomfortable; and in South Asia it is generally considered aggressive and rude. In the Arab world it is disrespectful to show the soles of your shoes. In India it must be understood you never serve beef at a gathering, because cattle are highly regarded and considered sacred. In Arab, Asia and Latin American countries building a relationship is a prerequisite for business transactions. It often requires lengthy meals with long discussions about non-professional topics to establish their trust and build the relationship.
The absence of a cross cultural management team is a result of the assumption that one approach to management works for all cultures, when the truth is different cultures require different approaches. The situation is simple, AGC’s mission and policies have become lost in translation because of the absence of management personnel able to assist in the formation of, and translate them from each region of operation: Africa, Asia, and South America. As a result, the current management is unable to align the variety of cultures to the local culture, and their highly-skilled personnel are leaving because they feel disrespected and unappreciated. If AGC used a cross-cultural management team, the situation would be different.
AGC’s HR performing as an administrative function is the result of following old practices, and not fully understanding the importance of the HR function. Even though HR is a cost to a company, their actions and performance have a direct impact of the firm’s productivity and bottom line. In the case of AGC, HR has secured the skilled and qualified employees necessary for AGC to perform in their industry, but their corporate climate has made it difficult for AGC to retain the employees HR worked so hard to attain. HR needs to be reskilled and transformed into a performance function, reconnect with current global employment issues, local business leaders, the education system, and apply workforce analysis and strategic workforce planning to focus on what is needed to lead the business, and anticipate and adapt to change.
The potential loss of AGC’s position as global leader in their industry is the result of the loss of AGC’s mission and goals during the transition to global leader. All to often, management gets so involved in the day-to-day operations of their business, they can forget what they are in business to accomplish. I also believe AGC started out with a mission, but their expansion from a small company to a global leader caught them off guard, and became both a blessing and a curse. It is a blessing because their explosive growth proved they have the product line to make it to the top, which they did, the curse is not understanding and knowing how to handle the growth. The reality is AGC must get a handle on their global policies and guidelines, before their top talent leave to work for the competition, and bring their talent and knowhow with them. On that premise, it is obvious AGC employees have the intelligence and talent to work in the technology field, AGC simply needs to acknowledge and embrace their talent to maintain their team.
In no way am I placing blame on AGC, but the fact is the greatest barrier to corporate change is that companies have great difficulty seeing themselves as they actually are. AGC needs to see the truly important aspects of the company, its inner life, their real drivers, predictors, causes of success and failure, these often remain hidden and unacknowledged. For short-term and long-term viability and success, values including: assertiveness, leadership, executive will, entrepreneurship, morale, and the inner life of the company are important. All to often they are thought of as insignificant, yet they are very significant.

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