Textbook Problem

Sara MacIntosh recently joined MicroPhone, a large telecommunications company, to take Over the implementation of a massive customer service training project. program was created by Kristin Cole, head of HR and Sara's new boss. According to rhe grapevine, Kristin is hoping this project alone will give her the "star quality" that she needs to earn a coveted promotion. Industry competition is heating up, and MicroPhone's strategy calls for being the best at customer service, which means having the most highly trained people in the industry, especially those who work directly with customers. Kristin's new training program includes an average of one full week Of intense customer service training for each Of 3,000 people and has a price tag of about $40 million.

Kristin put together a team of overworked staffers to develop the training program, but she needed someone well qualified and dedicated to manage and implement the project. Sara, with eight years of experience, a long list of accomplishments, and advanced degrees in finance and organizational behavior, seemed perfect for the job. During a thorough review of the proposal, Sara discovered some assumptions built into the formulas that raised red flags. She approached Dan Sotal, the team's coordinator, about her concerns, but the more Dan tried to explain how rhe financial projections were derived, the more Sara realized that Kristin' proposal was seriously flawed. No matter how she tried to work them our, rhe most that could be squeezed out of the $40 million budget was 20 hours of training per person, not the 40 hours everyone expected for such a high price tag.

Sara knew that although the proposal had been largely developed before she came On board, it would bear her signature. As she carefully described rhe problems with the proposal ro Kristin and outlined rhe potentially devastating consequences, Kristin impatiently tapped her pencil. Finally, she stood up, leaned forward, and interrupted Sara, quietly saying, 'Sara, make the numbers work so that ir adds up ro 40 hours and stays within the $40 million budget."

Sara glanced up and replied, "l don't think ir can be done unless we either change the number Of employees who are to be trained or the cost figure...”

Kristin's smile froze On her face as she again interrupted. "I don't think you understand what I'm saying. We have too much at stake here. Make the previous numbers work. " Stunned, Sara belatedly began to realize that Kristin was ordering her ro fudge the numbers. She felt an anxiety attack coming on as she wondered what she should do.

2. Stick to your principles and refuse to fudge the numbers. Kristin that you will work overtime to help develop an alternative proposal that stays within the budget by providing more training to employees who work directly with customers and fewer training hours for those who don't have direct Customer contact.