The At-risk Youths in the United States

In the United states of America there are some factors that prone to affecting the youths, and this is because of there state in human development, which is provided by nature.The youths normally engage in varied activities at their youth stage in trying to understand the ideologies behind the various concepts of life in them satisfying their curiosity. Some of this actives are likely either to benefit them or certain to make their lives horrible. At the youth stage, the youths can be perceived to be persons whose rationality have not full developed in them identifying what is good of them because of less live experiences and most serious factor is their inability to resist to the peer influences which might be either positive or   negative.The youths in their adventure to satisfy curiosity they normally find themselves in the traps of teen pregnancies, substance abuse, delinquency and criminal activities. It can happen that it was not their wish to have   found themselves in thi s situation but its due to the anxiety in them in trying to venture and discover the real life which they have been hearing the elderly talking about.The traps in which they find themselves in , which can also be perceived as social evils can be solved if these youths find a good guide on what is expected of them, and more especially to make them occupied in constructive activities which are certain to mould their livelihood at the current state and in the future.Lack of proper guidance and influencing facilities is what sways them into such traps of life given that their rationality have not full developed, thus a need for them to be provided with the necessary information in them making informed choices.This paper is addressing   the four main traps in which the United States of America youth fall into, and they include substance abuse, teen pregnancies, delinquency, and   criminal activities. The paper treats these traps as being caused by certain acquired traits, and where t he traits acquired depends the kind of environment in which the youths resides, the ability of their parents to guide them, the kind of peers they spend time with, access to various social facilities and also at some level economic status of the families where this youths belong.Delinquency is a terminology which is used to explain the behavior of the children and the adolescents that is likely to be judged in the criminal law among the adults. The age for the crime to be grouped under delinquency normally vary from one state to other and   the age limit vary from 14 years to 21 years in some states, although the some states the the age group 16-20 years is considered as adults in some states.The age group of 16-21 is perceives to be the age group which the worst delinquency crimes, where theft is the most committed crime. Rape is common in the late adolescent age. The reasons that lead to the youths   into such crimes can be explained by the varied psychological, social and eco nomic factors. A number of researchers have been carried on about the factor where most of them have associated it to issues like the disorganized family situations and also the economic status of the neighbourhood.(http://encyclopedia2.thefreedictionary.com/Juvenile+Deliquency   )   The crimes associated with delinquency in the United states are common the inner cities. the decision to treat delinquency crimes separately compared to the adult crimes was implemented in 1899, where is advocated for informal procedures and correction other than handling it like a punishment for the crime committed, and mostly involves handling delinquency crimes in juvenile correction institutions in moulding them to change their behavior to make them potential future responsible citizens of the United states. In this juvenile correction institutions there are established rehabilitation programs that both provided vocational training and also psychiatric treatments.Substance abuse is also another trap in which a large number of the youth fall into, where it is estimated that almost 8.6 million youths ages between 12 to 17   abuse substances, which is one third of the United States age group, as per to the date realised by the Substance Abuse and Mental Health Administration in 2007.More than 650,000 youths normally engage in alcohol use, and a number of at least 9 million also engage in delinquent behavior within this age group (http://alcoholism.about.com/od/teens/a/blsam050404.htm ). The data from the Alcohol use and   delinquency Behaviors among the youths shows that there is a very high correlation between the delinquency participation   and also the participation in substance abuse, as the very youths who engage in substance abuse normally find themselves in delinquent activities and most likely because of the drive that they get from the alcohol influence.The substance abuse is a serious problem that has to be addressed as noted by the Substance Abuse   and men tal health administration Administrator, Charles Curie, in him commenting that heavy alcohol use among the youths is not just illegal but also a cause to fighting, stealing, selling drugs and the carrying of the handgun, where in this case heavy alcohol means taking more than five drinks in a single sitting for more than five time in the past thirty days (http://alcoholism.about.com/od/news/a/nasd2005.htm ).The teen pregnancies has also been an issue among the United States youths that draws attention for its address. The has has been a decline in the teenage pregnancies, abortion and also child birth among the youths since 1991, and this is attributed to the reason that youth have been in the recent past frequent users of contraceptives, and also many have opted to abstain from sex during their middle and early adolescence. This change have been experiences across all the races of the United States.The Teenage have been declining across the years in every state including the Distri cts of Colombia and also the Virgin lands. Despite the good news of declining youth teen pregnancies, the United states still remain to lead in the youth pregnancy cases among the industrialised nations, which implies that it has not got into full control of the situation compared to the industrialized nations.The ages of 18 and 19 years are the ones which are prone to teenage pregnancies other than any other age groups in the United states, which accounts for 66 percent   of the United states teen births, where most teenage mothers normally ail from socially and economically disadvantaged family background, thus being caught within the consequences of this traps (http://www.advocatesforyouth.org/teenpregnancy.htm ).Therefore the youth pregnancy is an issue to be addressed within the national scope at it also has adverse effects in making the youths quite irresponsible citizens given that their abilities are never discovered and exploited due to diverted attentions which destruct them from achieving   future set goals, thus an important issue to address.

Gainesboro Machine Tools Corporation Essay

Kendle International Inc. We looked at the competitive landscape and, based on what was happening, knew we were either going to sell Kendle, grow or disappear. It was May 1997, and Candace Kendle, the chairman and chief executive officer of Kendle International Inc. (Kendle), and her husband Christopher C. Bergen, the president and chief operating officer, were reviewing the strategic options for their Cincinnati, Ohio based company. Kendle, a business they had founded over 15 years previously, conducted clinical trials for pharmaceutical and biotechnology companies to test the safety and efficacy of their new drugs. The company had grown successfully to $13 million of sales and had attracted significant business from major pharmaceutical and biotechnology companies. Kendle was competing, however, with several larger contract research organizations (CRO), many of which had an international presence that allowed them to do clinical studies outside the United States and gave them an advantage when competing for major projects. To compete more effectively, Candace and Chris had embarked on a plan to grow through acquisition, particularly internationally, and to finance this growth through a public offering of equity. Toward this end, by the spring of 1997 Kendle had lined up two potential European acquisitions—U-Gene, a CRO in the Netherlands with 1996 sales of $12.5 million, and gmi, a Germanbased CRO with $7 million in sales. To finance these acquisitions, Kendle had worked out possible debt financing with Nationsbank and was working with two investment banks on an Initial Public Offering (IPO) that would repay the bank debt if successful and provide the equity base for future acquisitions. It was now time to decide whether to go ahead with the full program of two acquisitions, a large debt financing and an equity issue. Kendle History Candace and Chris met in 1979 while working at The Children’s Hospital of Philadelphia. Candace had received her doctorate in pharmacy from the University of Cincinnati, then taught in North Carolina and Pennsylvania. Her scientific specialty was virology. At the Children’s Hospital, Candace was serving as the director of pharmacy, working as an investigator on a study of an antiviral drug for the pharmaceutical company Burroughs Wellcome. Chris, a Wharton MBA, was a senior administrator at the hospital. Research Associate Indra A. Reinbergs prepared this case under the supervision of Professors Dwight B. Crane and Paul W. Marshall as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright  © 2000 by the President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School. 1 Looking for something new, Candace and Chris began to discuss the idea of going into business together. One day in early 1981 Candace received an unexpected visit from a new physician, replacing the usual medical monitor for her project with Burroughs Wellcome. This physician was a pioneer in the  contract clinical research business. As he described how his business worked, Candace became more and more intrigued. When he left that day, she immediately called Chris and said, â€Å"I’ve got a business idea!† The concept was to set up a small research consulting firm that would take on outsourced research and development (R&D) work on a contract basis from large pharmaceutical and biotechnology companies. Based on the positive response she received from potential clients, Candace left her job at the hospital in June 1981 and Chris left his job in December 1981. Kendle International Inc. was incorporated in Cincinnati, Ohio in 1981, with Candace taking 55% of the shares, and Chris 45%. Candace had strong ties to the Cincinnati area. Her grandfather, a coal miner, had moved there from Appalachia, and the clan had grown to about 140 members, including Candace’s two sons from a previous marriage. By January 1982, Candace and Chris were working from Candace’s parents’ home. Kendle started as a small company with a few contracts, and business grew slowly through referrals from professional colleagues. Kendle suffered the usual bumps of a start-up business, particularly in the late 1980s when it suffered a loss for two years and ran up $1 million in bank debt on a $250,000 line of credit. Afraid that its bank would call the loan, the company went through a bankruptcy scare. Fortunately, Kendle succeeded in attracting business from a new client, the pharmaceutical company G.D. Searle & Co. (Searle). By the early 1990s, the company was turned around and it generated annual sales of about $2.5 million. Candace and Chris were married in 1991. The Pharmaceutical Lifecycle The clinical research process was influenced by government regulations that required drugs to pass through a series of steps before they could be marketed for public use. In the United States, the Food and Drug Administration (FDA) regulated pharmaceuticals. To receive FDA approval, a drug had to meet safety and efficacy standards for a specific indication (medical diagnosis). A drug for hypertension, for example, would have to lower blood pressure by a certain statistically significant amount without  producing unacceptable side effects. The entire FDA approval process could take from 8 to 15 years and involve several thousand patients.1 After a pharmaceutical company discovered a new drug and completed pre-clinical testing on animals in the laboratory, an Investigational New Drug application was filed with the FDA. The drug then passed through three phases of clinical testing on humans. Before beginning each subsequent phase, the drug company had to submit additional regulatory information to the FDA. Phase I Phase I studies were primarily concerned with assessing the drug’s safety. This initial phase of testing in humans was done in a small number of healthy volunteers (20 to 100), such as students, who were usually paid for participation. Phase II Once Phase I testing had proven the drug’s safety, Phase II tested its efficacy in a small number of patients (100 to 300) with the medical diagnosis. It was specifically designed to determine the likely effective dose in patients. Phase III In a Phase III study, the drug was tested on a larger patient population (1,000 to 3,000) at multiple clinical sites. The purpose was to provide a more thorough understanding of the drug’s effectiveness, benefits, and the range of possible adverse reactions. Most Phase II and Phase III studies were blinded studies in which some patients received the experimental drug, while control groups received a placebo or an already approved drug. Once a Phase III study was successfully completed, a pharmaceutical company requested FDA approval for marketing the drug by filing a New Drug Application, which averaged about 100,000 pages. †¢ 200-033 Phase IV Post-marketing testing (of at least 300 patients per trial) was sometimes conducted for high-risk drugs to catch serious side effects (liver toxicity) and monitor them for long-term effectiveness and cost-effectiveness. The pharmaceutical companies traditionally designed and conducted their own clinical trials. They selected the research sites and recruited investigators to conduct the trials of the new drug. Investigators were often medical school professors at teaching hospitals, but they could also be professional investigators who conducted clinical trials at dedicated centers or occasionally regular physicians who ran trials, particularly Phase IV trials, out of their private practices. These investigators then recruited patients, sometimes with the help of the pharmaceutical company, to participate in the study. After patients were recruited, there was a considerable amount of data collection by the investigators, monitoring of the process and data retrieval by the pharmaceutical company, and analysis of the data to determine whether the statistical criteria for safety and efficacy were met. Finally, there was the complicated process of compiling the data and preparing the long report for the FDA. The Contract Research Business In the 1970s, large pharmaceutical concerns in the United States began to look for ways to outsource their clinical testing work as their R&D budgets grew. At the beginning, contract research was a small cottage industry and the work was awarded on a piecemeal basis. As Chris recalled, â€Å"For years, there had been companies conducting animal testing and Phase I, but there was no one managing the entire research and development process. The acronym ‘CRO’ (contract research organization) did not exist, pharmaceutical companies gave out only small contracts, and did not have much confidence in for-profit research managers.† The growth of the CRO industry was stimulated by pricing pressures on drug companies that led them to try to transfer the fixed costs of clinical research into a variable cost through outsourcing. As Chris described, The general problem that drug companies face is balancing a variable workload with a fixed workforce. The problem is that you don’t know when the guy in the white lab coat will come running down the hall, beaker in hand, shouting, ‘Eureka, I’ve got it, it’s going to cure disease X’. When he does that, you know your workload is going to spike. Your workload is impacted by the rate of discovery, the number of projects killed in vitro and, subsequent to that, how many studies get cancelled due to safety or efficacy problems in human testing. Pure CROs like Kendle derived their income solely from the outsourced portion of the R&D budget of pharmaceutical clients. In theory, any part of the clinical testing process could be outsourced. While most pre-clinical discovery was conducted in-house by drug companies, the trend in the 1990s was for CROs to receive contracts to manage the entire clinical research piece, especially 3 Phases II and III. The whole process was an incredible race against time, as every day for which FDA approval was delayed could cost the pharmaceutical client over $1 million in lost revenues. Pharmaceutical contracts ranged in duration from a few months to several years. For multi-year contracts involving clinical trials, a portion of the contract fee was paid at the time the trial was initiated, with the balance of the contract fee payable in installments over the trial duration, as performance-based milestones (investigator recruitment, patient enrollment, delivery of databases) were completed. Contracts were bid by CROs on a fixed-price basis, and the research was a labor-intensive business. The contract bids depended on careful estimation of the hourly labor rates and the number of hours each activity would take. The estimation process involved statistical algorithms, which took into account the length of the study, frequency and length of site visits, the number of sites involved, the number of patients involved, and the number of pages per report form. A premium would be added for more complicated therapeutic testing. As the chief financial officer Tim Mooney described the business, The way that Kendle makes money is like any professional service firm—We focus on maximizing labor utilization, especially at the operational level. We assume a 65% to 70% utilization rate, so profit margins are higher if we have a higher utilization rate of personnel. We have the same assumed profit margin on all levels of people, but we can charge higher rates for contracts where we have specific therapeutic expertise that is in demand. Margins can also be higher on some large projects when we can share overhead costs across more sites. The business of contract research entailed several types of business risk. With contracts running at an average of $1 million for companies of Kendle’s size, client dependence was a major risk. Project cancellation by the client and â€Å"change orders† to reduce project costs were also increasingly frequent in the CRO industry, as healthcare cost pressures intensified. On the other hand, product liability for medical risks was borne by the pharmaceutical company. Competition in the 1990s By the mid-1990s, contract research had evolved into a full-service industry, recognized by both the pharmaceutical/biotech industries and the financial community. In 1995, worldwide spending on R&D by pharmaceutical and biotechnology companies was estimated at $35 billion, with $22 billion spent on the type of drug development work that CROs could do. Of the $22 billion, only $4.6 billion was outsourced to CROs in 1995. While R&D spending by pharmaceutical companies was growing at 10% a year, CROs were growing at twice that rate.2 Specialized CROs could manage increasingly complex drug trials—in the previous decade, the number of procedures per trial and average number of patients per trial had doubled—far more efficiently than their pharmaceutical clients.3 Kendle participated in this growth in clinical research. Its net revenues grew 425% from $2.5 million in 1992 to $13 million in 1996. From a loss of $495,000 in 1992, its net income rose to $1.1 million by 1996. By 1996, Kendle had conducted clinical trials for 12 of the world’s 20 largest pharmaceutical companies. Kendle’s three largest clients were G.D. Searle, Procter & Gamble, and Amgen, which generated 48%, 19%, and 13% of Kendle’s 1996 revenues, respectively. (See Exhibits 1 and 2 for Kendle’s income statements and balance sheets.) 2 J.C. Bradford & Co., analyst report, January 15, 1998, pp. 5-6. 3 The Economist, â€Å"Survey of the Pharmaceutical Industry,† February 21, 1998, p. 4.200-033 The contract research industry was very fragmented, with hundreds of CROs worldwide. In the 1990s, in response to the increased outsourcing of pharmaceutical R&D, and a demand for global trials, consolidation among the CROs began. A few key players emerged and went public, creating a new industry for Wall Street to watch. Many CRO start-ups were founded by former drug company executives who decided to form their own operations. After a period of internal growth, some of the start-ups began growing through a financial â€Å"roll-up† strategy. An industry publication listed 18 top players in North America, with total contract research revenues of $1.7 billion. The top five public companies, ranked by 1996 revenues, were Quintiles Transnational Corp. ($537.6 million), Covance Inc. ($494.8 million), Pharmaceutical Product Development Inc ($152.3 million), ClinTrials Research Inc. ($93.5 million), and Parexel International Corp. ($88 million).4 (See Exhibit 3 for recent sales and p rofit data on CROs.) With its talent pool of scientists at the Research Triangle and U.S. headquarters of the pharmaceutical giants Glaxo and Burroughs Wellcome (later merged as Glaxo Wellcome), the state of North Carolina quickly became the center of the burgeoning CRO industry. Two of the â€Å"big five† companies, Quintiles and Pharmaceutical Product Development, were started there by academic colleagues of Candace’s. Quintiles Transnational was considered to be the †gold standard of the industry.† Quintiles was founded in 1982 by Dennis Gillings, a British biostatistician who had worked at Hoechst and was a professor at the University of North Carolina, where Candace completed her postdoctoral work. After raising $39 million in a 1994 IPO, Quintiles went on an acquisition spree, adding other professional service businesses. For example, the firm provided sales and marketing services to support the launch of new drug products. By the end of 1996, Quintiles was the worldâ€⠄¢s largest CRO, with 7,000 employees in 56 offices in 20 countries. A typical clinical study managed by Quintiles was conducted at 160 sites in 12 countries, involving 10,000 patients. Quintiles was more diversified than many of its CRO competitors, with about 65% of revenues derived from the  core CRO business and 35% from other services.5 Pharmaceutical Product Development (PPD) was founded in 1989 by Fred Eshelman, a colleague of Candace’s from the postdoctoral program in pharmacy. Like the founder of Quintiles, Eshelman had worked in drug research for several pharmaceutical firms, including Glaxo and Beecham. PPD’s revenues jumped 500% between 1990 and 1994, based on such work as multi-year contracts for AIDS research for the National Institutes of Health. PPD conducted a successful IPO in March 1996, with its stock jumping from $18 per share to $25.50 per share on the first day of trading. PPD bought a U.K. Phase I facility in November 1995, and in September 19 96 merged with another leading CRO. Their combined net revenues exceeded $200 million. Kendle at the Crossroads To Candace and Chris, it was clear that certain competitive capabilities were necessary for companies of Kendle’s size to compete successfully with the major CROs: therapeutic expertise (in specific medical areas) broad range of services (pharmaceutical companies wanted to work with fewer CROs, with each offering a wide range of services across multiple phases of the R&D process); integrated clinical data management (the ability to efficiently collect, edit and analyze data from thousands of patients with various clinical conditions from many geographically dispersed sites); 4 â€Å"Annual Report: Leading CROs,† R&D Directions, September 1997, pp. 28+. 5 William Blair & Co. LLC analyst report, Quintiles Transnational Corp., June 20, 1997, p. 3. international, multi-jurisdictional presence (to speed up drug approval, tests were being launched in several countries at once); With the exception of international presence, Candace and Chris felt comfortable with their ability to meet these criteria. Kendle’s staff had scientific expertise in multiple therapeutic areas, including cardiovascular, central nervous system, gastrointestinal, immunology, oncology, respiratory, skeletal disease and inflammation. The company also had broad capabilities, including management of studies in Phases II through Phase IV. It did not consider the absence of Phase I capabilities to be an issue, since this activity was quite separate. (See Exhibit 4 for a comparison of CRO geographical locations.) To build an integrated clinical data management capability, Chris had directed the development of TrialWare ®, a proprietary software system that allowed global data collection and processing and the integration of clinical data with clients’ in-house data management systems. TrialWare ® consisted of several modules including a database management system that greatly reduced study start-up costs and time by standardizing database design and utilizing scanned image technology to facilitate the design of data entry screens, the point-and-click application of edits from a pre-programmed library, and workflow management (parallel processing). Other modules included a system that coded medical history, medication and adverse event data and a touch-tone telephone system that was used for patient  randomization, just-in-time drug supply and collection of real-time enrollment data. Against the backdrop of a changing industry, Candace and Chris felt the need to develop additional business skills and focus Kendle’s strategy. To clarify their management roles, Candace and Chris switched their existing responsibilities. Chris pointed out, â€Å"Candace became CEO as we realized that her focus was long-range and I took over as Chief Operating Officer to focus on the short-range. In addition, the marketing strength of our competitors was propelling them further and further ahead of Kendle. Candace brought her science background and entrepreneurial skills, while I brought my management. The problem was that we were relatively weak in sales and marketing.† To broaden their skills, Candace went off in 1991 to the Owner/President Management Program (OPM), an executive education program run by Harvard Business School for three weeks a year over three years. Chris followed her to OPM in 1994. After completing the OPM program, Candace assessed the situation, We have to be big enough relative to our competitors to take on large, international projects. When Searle was looking for CROs for international work, all we could do was possibly subcontract it out to small shops. In contrast, Quintiles had six overseas offices of its own. Furthermore, when Searle calls and says, ‘I just got off the phone, Quintiles will cut their price by a million dollars,’ if you’re too small, you’re not going to be able to respond to that. Candace and Chris realized that Kendle could not grow fast enough internally to keep up with its peers and did not have the cash for acquisitions. They entertained the thought of selling Kendle, and were approached several times about a sale. But by nature, they were a competitive, athletic couple. Chris got up to play squash every morning at 7 AM, and Candace was an avid rower, recently winning a gold medal in a Cincinnati regatta. Perhaps not surprisingly, Candace and Chris decided to grow the firm and take it public rather than sell. As Candace described their motivation, â€Å"We were not driven to be a public company as such, but primarily to be bigger, and for this, we  needed public financing to succeed in the new competitive landscape. The whole target was not to let the big guys get too far out ahead of us.† Preparations for Growth By 1994, Kendle had grown to $4.4 million in revenues. Candace, the driving force throughout the IPO process, sought advice from an old college friend, a well-known Cincinnati businessman. He advised her, â€Å"before you go public, practice being a public company.† Candace therefore formulated a plan for Kendle to go public in 1999. Kendle began hiring key managers to build up functional units. Between 1994 and February 1997, new directors of clinical data management, information technology, biostatistics, finance, mergers and acquisitions, regulatory affairs, and human resources were hired. As Chris described, â€Å"the plan was to put this infrastructure in place to look and act like a public company— communications, IT, finance. The idea was hire at the top and they’ll fill in their organization.† Many of these new managers had previously worked together at other companies. To prepare for Wall Street scrutiny, Kendle began issuing internal quarterly fi nancial statements and sharing them with employees in an open-book management style. Candace and Chris tried to make the growing number of employees feel like â€Å"part of the family† in other ways, too. The Kendle â€Å"photo gallery† displayed professional portraits of employees with their favorite hobbies. In 1995 Chris led the development of a corporate mission statement and a document on strategic plans that was shared with all employees. Kendle was organized in a matrix fashion (see Exhibit 5 for organizational chart). Each department was treated as a strategic business unit (SBU) with a director who established standards and carried profit responsibility. At the same time, each research contract was managed by a project manager who assembled a team from across the various SBUs. Clinical trials involved five functional SBUs at Kendle: 1. Regulatory Affairs recruited investigators, helped them with FDA registration forms, and obtained approval from ethics boards. Regulatory Affairs maintained a database of 5,000 investigators. 2. Clinical Monitoring sent clinical research associates (CRA) out to the testing sites (every 4 to 6 weeks) to enforce Good Clinical Practice regulations. The CRAs were typically young, single health care professionals who spent a significant amount of their time on the road. The CRA would collect data from investigators, resolve queries generated by Clinical Data Management, and promote patient enrollment. 3. Clinical Data Management produced a â€Å"locked† database that could be submitted to the FDA. Data from case report forms were input into a computer system and â€Å"cleaned† through a manual review of the forms and an automated check of the databases. The challenge was to lock a database quickly while maintaining data quality. 4. Biostatistics would â€Å"unblind† the locked database and analyze it to determine if the data confirmed that the test results met the criteria for safety and efficacy. Biostatistics also defined the scope of new studies. 5. Medical Writing generated â€Å"the truckload of paper submitted to the FDA† for a New Drug Application, including a statistical analysis, a clinical assessment, preclinical and clinical data, a description of the manufacturing process, and the supporting patient documentation. 1996: The Celebrexâ„ ¢ Study, Filing Preparations, and European acquisitions 1996 was a busy year for Candace, Chris, and Kendle’s new management team. They simultaneously began conducting a major drug study, working with underwriters on IPO preparations, and looking for overseas acquisition targets. In 1996 Kendle managed 62 clinical studies at 4,100 sites involving approximately 20,000 patients. Celebrexâ„ ¢ Study In January 1996, Kendle began working on a major drug called Celebrexâ„ ¢ (celecoxib). Its client Searle was engaged in a neck-and-neck race with Merck, the largest U.S. drug company, to be the first to market a COX-2 inhibitor. A COX-2 inhibitor was a new type of anti-inflammatory drug that promised low incidence of bleeding ulcers in long-term, high-dosage users such as arthritis patients. The Searle-Merck race was closely followed in the business press. Searle awarded the international portion of the Celebrexâ„ ¢ contract to another CRO, since Kendle only had facilities for testing in the United States. However, Kendle did win the contract to conduct all the U.S. Phase II and III trials. The Celebrexâ„ ¢ contract was a â€Å"huge feather in our cap,† recalled the chief financial officer. â€Å"In order to beat Merck, we worked very hard and kept compressing the timelines.† To head the Celebrexâ„ ¢ project, Kendle hired Bill Sietsema, PhD, as assistant director of clinical research. A therapeutic expert in skeletal diseases and inflammation, Sietsema had worked at Proctor & Gamble for 12 years. While Sietsema served as overall program director, Chris acted as the operational project manager, meeting with his Searle counterpart in Chicago on a monthly basis. In early 1997, Kendle also set up a new regional office in Chicago, close to Searle headquarters. For Kendle, the Celebrexâ„ ¢ project was a chance to â€Å"show what we could do and to develop a reputation as a leader in the field of skeletal disease and inflammation.† Kendle actively helped investigators recruit arthritis patients, running television advertisements, directing interested volunteers to a call center. Three hundred  investigators enrolled over 10,000 patients, producing over one million pages of case report forms. Most importantly, through close integration of information systems with Searle, Kendle was able to beat an industry standard. Instead of taking the typical six months to one year, the time span between the last patient in Phase II and the first in Phase III, which began in June 1996, was only 22 days. Preparation for SEC Filing By the time the Celebrexâ„ ¢ program rolled around, Candace and Chris felt that they might have to go public earlier than intended because of the competitive landscape. The new chief financial officer, Tim Mooney, took a leading role in the preparations. Prior to joining Kendle in May 1996, Mooney had worked as CFO at The Future Now, Inc., a computer reseller and Hook-SupeRx, a retail drugstore chain. At Kendle, Mooney replaced the controller with an audit manager from Coopers & Lybrand to beef up his staff. Mooney also led the building of many of the other financially related departments at Kendle. To act as the lead underwriters on the IPO, in August 1996 Mooney chose two regional investment banks, Chicago-based William Blair & Company, L.L.C., which had handled the 1995 IPO of Kendle’s competitor Parexel, and Wessels, Arnold & Henderson from Minneapolis. William Blair began putting Kendle through the paces of preparing to file a preliminary prospectus with the U.S. Securities and Exchange Commission (SEC). The process of going public generally took from 60 to 180 days. One of the key steps in the process was the conversion of Kendle from a subchapter corporation to a C corporation at the time of the IPO. (Subchapter S corporations were entities with 35 or fewer shareholders that were treated like partnerships for tax purposes. Corporate income tax was passed through tax-free to the owners who then paid personal income taxes due.) U-Gene In October 1996 Mooney hired Tony Forcellini, a former colleague, as director of mergers and acquisitions (M&A). Tony had worked at Arthur Andersen in the tax department, and then as a treasurer at Hook-SupeRx with Mooney. The search for European acquisition targets was mainly conducted by Candace and Tony Forcellini, with back-up support by Tim Mooney and Chris. All the while, Chris and Bill Sietsema were working away on the Celebrexâ„ ¢ program. Forcellini’s first decision was easy—whether to pursue an offering memorandum that landed on his desk shortly after he arrived. The company for sale was U-Gene Research B.V. (U-Gene), a CRO based in Utrecht, the Netherlands. U-Gene was represented by Technomark Consulting Services Ltd. (Technomark), a London-based consulting firm uniquely specializing in the healthcare industry. Technomark had an extensive database on European CROs and was primarily in the business of matching its pharmaceutical company clients’ tria ls with appropriate European CROs, but it also had a small investment banking division. U-Gene, a full-service CRO, was an attractive target for Kendle. The venture capitalist owners were actively looking for buyers. With a 38-bed Phase I facility in Utrecht and regional offices in the United Kingdom and Italy, U-Gene could increase both Kendle’s service offering and geographic presence. Since its founding in 1986, U-Gene had served more than 100 clients, including 19 of the world’s largest pharmaceutical companies. In 1996, U-Gene participated in 115 studies at approximately 500 sites involving approximately 4,700 patients and recorded net revenues of $12.5 million, a 37% increase over the prior year, and operating profit of $1.3 million, a 47% increase over the prior year. Because of its U.K. and Italian offices, U-Gene viewed itself as on the way to becoming a pan-European CRO.  (See Exhibit 6 for U-Gene financial statements.) With momentum building, in November 1996, Forcellini seized upon U-Gene as Kendle’s possible entry into Europe and subm itted a bid, offering cash and private stock. Unfortunately, Kendle lost out on this bid to a competitor, Collaborative Clinical Research, Inc, as U-Gene’s owners either wanted a full cash deal or stock from a public company. Collaborative was a competitor slightly larger than Kendle ($25.7 million in revenues) that had gone public in June 1996 and had established a software partnership with IBM. Although it had access to investigators outside the United States, Collaborative also viewed U-Gene as the establishment of a European presence. On February 12, 1997 Collaborative announced that it had signed a letter of intent to acquire U-Gene in exchange for 1.75 million newly issued shares. While this put Kendle out of the picture, the prospects of a deal were not completely killed. On the same day, February 12, 1997, Collaborative also announced that its first-quarter 1997 earnings would be significantly below expectations. On the next day, on analyst speculation that a major client contract had been lost, their stock fell by 27.3%, closing at $9.00.6 This put Collaborative’s UGene deal in jeopardy. Underwriter Concerns About two weeks after Collaborative’s announcement, on February 25, 1997, another CRO, ClinTrials, also suffered a drop in stock price. ClinTrials’ stock lost more than half its market value,  dropping 59%, to $9.50 per share. The fall began when an analyst from Wessels Arnold downgraded the ClinTrials stock to â€Å"hold† from â€Å"buy,† citing a number of key management departures, and continued after ClinTrials announced that its first-quarter earnings would be half its year-earlier profit. The reason for the unexpected earnings decline was the cancellation of five projects totaling $37 million, with the possibility of even lower earnings due to an unresolved project dispute with a client.7 ClinTrials’ negative performance began to affect other CRO stocks, including that of Quintiles.8 With client concentration an issue in ClinTrials’ stock performance, William Blair developed doubts about the timing of Kendle’s IPO. Although Kendle was close to filing its preliminary prospectus, on the day after ClinTrial’s stock dropped, William Blair analysts had a meeting with Kendle’s management and told them that they had decided to withdraw as lead underwriters in the IPO. Candace was resolved to keep going. She said, â€Å"There’s no way out of the concentration issue. We can’t buy our way out of it, because we can’t do M&A deals until we have a public currency, and every day Searle is bringing us more work, we won’t tell them no.† She then asked Mooney to find new investment bankers, and he thought, â€Å"what am I going to do now?† Hoping for a lead, Mooney called up a former security analyst from Wessels Arnold who had gone to work at Lehman Bros. Although Kendle was smaller than Lehman’s usual clients, Lehman agreed to underwrite Kendle’s IPO, with the reassurance that â€Å"we think we can sell through the client concentration issue.† After an agreement with New York-based Lehman was reached, Mooney searched for a regional firm because, as he decided, â€Å"I didn’t want two New York-size egos. J.C. Bradford, based in Nashville, Tennessee, had a good reputation in the industry , and struck us as a nice regional bank. They were more retail-oriented than institutional-oriented, so they wouldn’t directly be competing with Lehman in types of clientele.† Bradford had managed the IPO of the first large CRO to go public (ClinTrials, in 1993) and Lehman had led the IPO of PPD in January 1996. Gmi and U-Gene revisited At the same time, Forcellini was moving ahead on the acquisition search. In January 1997 he tasked Technomark with using its CRO database to generate a list of possible European acquisition targets that met the following criteria: â€Å"ideally a CRO with United Kingdom headquarters; $5 million to $7 million in revenues; no Searle business; certain types of therapeutic expertise; strong in phases II through IV; and certain country locations.† The initial list had 50 European CROs, which Kendle narrowed down to 14 prospects. Technomark then contacted these 14 prospects to sound out their willingness to sell, bringing the number down to five candidates: three CROs in Germany, two in the United Kingdom, and one in the Netherlands (not U-Gene). To assess the prospects, Kendle used information from Technomark on comparable M&A deals. Candace and Tony Forcellini then traveled around Europe for a week visiting the five companies. They decided to further pursue two companies: a small, 15-person monitoring organization in the United Kingdom and one in Germany. The U.K. prospect was quickly discarded because of an aggressive asking price and accounting problems. Kendle then moved on to the German target, a company named gmi. Its full name was GMI Gesellschaft fur Angewandte Mathematik und Informatik mbH. Founded in 1983, gmi provided a full range of Phase II to IV services. gmi had conducted trials in Austria, the United Kingdom, Switzerland and France, among other countries, and had experience in health economic studies and 7 â€Å"ClinTrials Predicts Sharply Lower Profit: Shares Plunge 59%†, The Wall Street Journal, February 26, 1997, p. B3. 8 David Ranii, â€Å"Investors avoiding Quintiles,† The News & Observer, Raleigh, NC, February 27, 1997, p. C8. professional training programs. In 1996, gmi participated in 119 studies at multiple sites and recorded net revenues of $7 million, a 32% increase over the prior year, and operating profit of $1.4 million, a 16% increase over the prior year. At March 31, 1997, gmi’s backlog was approximately $9.6 million. gmi considered itself to be especially good at Phase III trials. (See Exhibit 7 for gmi financial statements.) While Candace and Forcellini were narrowing down European targets, Mooney was hunting for cash. In February 1997 Kendle met at a special lunch with its existing bankers, Star Bank (later renamed Firstar), in Cincinnati. Mooney recalled the conversation vividly: â€Å"After Candace and Chris described their plans, Star Bank’s CEO made a proposal, ‘If you keep Kendle a private company and avoid the hassles of being public, we’ll lend you the money you need for acquisitions.’† With the financing in hand, Candace and Forcellini visited gmi in Munich. While gmi’s owners were willing to talk, they did not have much interest in selling. As Mooney described it, â€Å"gmi was a classic case of having grown to a certain size, had a comfortable level of income, but weren’t interested in putting in the professional systems to grow beyond that level.† After several conversations in March, it was not clear that Kendle and gmi’s owners w ould be able to reach a mutually agreeable price. At this point in early April 1997, the possibility of U-Gene as an acquisition candidate heated up. After the U-Gene deal with Collaborative Research began to collapse, Kendle had initiated a carefully structured inquiry about U-Gene’s interest in renewed discussions. This inquiry led to further discussions and a request in April for Kendle to meet in Frankfurt to try to reach an agreement. With the gmi deal in doubt, Kendle agreed to try to reach closure with U-Gene. After some discussion, both sides agreed on a price of 30 million Dutch guilders, or about US$15.6 million, $14 million of which would be paid in cash, and the remaining $1.6 million would be in the form of a promissory note payable to the selling shareholders.  U-Gene wanted to complete the transaction within the next several weeks, so it would have to be financed at least initially by borrowings. Even if Kendle went ahead with an IPO, the equity financing would not be completed until the end of the summer. Discussions with gmi continued through this period since Kendle was confident about its ability to obtain financing from Star Bank. Ultimately, Kendle’s team was able to agree upon a price with gmi. The owners were willing to accept a price of 19.5 million Deutsche marks, or about US$12.3 million, with at least $9.5 million in cash. They would accept shares for the remaining $2.8 million, if Kendle successfully completed an IPO. The owners were willing to hold off the deal until the IPO issue was resolved. Closing the Deals and IPO Decision To complete both the U-Gene and gmi deals, Kendle would need to borrow about $25 million to $28 million, so financing became critical. Mooney went back to Star Bank to take the bankers up on their promise. He described their reaction: â€Å"Star Bank said they couldn’t lend $28 million to a company that only has $1 million in equity. Nobody did that. They might be willing to finance one acquisition, with the help of other banks, but there was no way that they would provide $28 million.† Mooney was quite angry, but had no choice but to look for other sources of financing. He first tried to get bridge financing from Lehman and Bradford, but they refused, saying that they had â€Å"gotten killed on such deals in the 1980s.† There was also a possibility of financing from First Chicago Bank, but this did not materialize. Finally, in late April 1997, Mooney contacted NationsBank, N.A., which was headquartered in Charlotte, North Carolina and provided banking services to the CRO industry. Nationsbank expressed interest, but only in a large deal. Even $28 million was a small amount to Nationsbank. In 11  a few short weeks, Nationsbank ended up structuring a $30 million credit for Kendle, consisting of a $20 million, three-year revolving credit line and $10 million in five-year, subordinated notes. The interest rate on the credit line was tied to a money market base rate plus 0.50% (currently totaling 6.2%), and the subordinated debt carried a 12% rate. †So NationsBank stepped up in a pretty big way. They could have ended up with Kendle as a private company, with $30 million in debt.† Because of the risk, Nationsbank would also take warrants giving the bank the right to purchase 4% of Kendle’s equity, or up to 10% if the IPO was delayed and Kendle had to borrow the full amount to do both acquisitions. Lehman Brothers was confident about an IPO. The underwriters felt Kendle could raise $39 million to $40 million at a price between $12 and $14 per share, and that Candace and Chris could sell some of their shares as well. Premier Research Worldwide Ltd., a CRO with $15.2 million in 1996 revenues, had raised $46.75 million from its recent IPO in February 1997. Kendle felt they had a much better track record than Premier. Kendle now faced some difficult decisions. It could do the full program, including both acquisitions, taking the $30 million Nationsbank deal, and planning for an IPO in late summer. The successful acquisitions of gmi and U-Gene would establish Kendle as the sixth largest CRO in Europe, based on total revenues, and one of only four large CROs able to offer clients the full range of Phase I through Phase IV clinical trials in Europe. The pricing on the two acquisitions of 8 to 10 times EBITDA seemed in line with recent CRO deals (see Exhibit 8). And, once the IPO was completed, Kendle would have both a cash cushion and stock as a currency to help finance future growth and acquisitions. Assuming an IPO of 3 million new shares at a price of $13.00, Kendle would have a cash position of about $14 million and no debt in the capital structure. (See Exhibits 9 and 10 for pro forma  income statements and balance sheets showing the impact of the acquisitions and the IPO.) A related issue was how many of their shares Candace and Chris should sell if an IPO were done. Their current thinking was to sell 600,000 shares. Thus, a total of 3.6 million shares would be for sale at the time of the IPO, including a primary offering of 3 million shares and a secondary offering of 600,000 shares. This sale would reduce holdings controlled by Candace and Chris from 3.65 million shares (83.1% of the shares currently outstanding) to 3.05 million shares (43.4% of the new total outstanding). Doing the full IPO and acquisition program, however, was unprecedented among Kendle’s peers. â€Å"Nobody does this combination all at once—an IPO, senior- and sub-debt financing, and M&A deals,† as Mooney described the situation. Furthermore, the stock prices of public CROs had been falling since last February (see Exhibits 11 and 12 for stock market valuation and price information). If Kendle bought into the full program and the market crashed or the IPO was unsuccessful, the company would have almost $30 million of debt on its books with a very modest equity base. Perhaps it would be better to do just the U-Gene acquisition and use Star Bank to finance it. After completing this acquisition, it could then pursue the IPO. This approach was safer, but of course Kendle might miss the IPO window and miss the opportunity to acquire the second company. Indeed, instead of discouraging Kendle from doing an IPO, the fall in CRO stock prices might be taken as a signal th at Kendle should forge ahead before the window closed completely.

Analysing An Essay On Criticism Poem English Literature Essay

Analysing An Essay On Criticism Poem English Literature Essay In the world of seventeenth century poetry, no poet exists in isolation. Not simply by being part of a club, such as Pope’s membership of the Scriblerus Club, but as being members of a particular class, a particular religion or a particular political outlook. Born into a Catholic family at a time when being Catholic meant being denied educational and political opportunities, may not have significantly influenced Pope worldview, but neither can such a fact be completely ignored. In this essay I shall argue that An Essay on Criticism is not a straight-forward treatise of writing poetry or indeed criticism, but rather a strong political and religious polemic. In a time of societal and political flux the intelligentsias of an age are often heavily influenced by the events which surround them. With the beginnings, albeit faltering beginnings of the industrial age, with many swapping traditional rural lifestyles to more urban settings, not least due to the ‘enclosure’ laws (a prohibition for rural dwellers from use of common acreage fodder (1), and the ever growing demand for workers in cities, coupled with new religious philosophies emerging from Europe from Luther and Calvin, in turn affecting political philosophies, the poets of the day could not remain immune to this change of landscape. That self same ‘landscape’ lay at the heart of early seventeenth century poets concerns expressed in poetry referred to a ‘pastorals’. But the approach to these poems, which attempted to define the new landscape and man’s role in it, could not have been more different. Two distinct factions emerged, one led by Ambrose Philip, the other by Alexander Pope. The former an adherent of the view of man as an individual, the latter, of the view that man’s role is primarily as a societal being, rather than an individual being. And what lay at the center of these views was no less than the future of mankind, at least as far as th ese two protagonists were concerned. Pope had already distinguished himself with the publication of Pastorals in 1709 before writing An Essay on Criticism at the relatively young age of twenty three. In this poem, which follows the Epic form, albeit in apparently less somber fashion than the Golden Age of Homer, Virgil and Ovid which influenced it, Pope offers his opinion on what exactly is or is not the essence and significance of poetry. Or at least, it may seem so at first glance. His opening four lines from part one:                      Tis hard to say, if greater want of skill                      Appear in writing or in judging ill;                      But, of the two, less dang’rous is th’ offence                      To tire our patience, than mislead our sense. (3) offers in many ways a synopsis of his entire treatise. That is, it’s one thing to read or write bad or annoying poetry, it’s a n entirely different affair to ‘mislead our sense’. Immediately what’s at stake is presented. An Essay on Criticism is not simply a dig at bad poets or bad poetry, but a real concern of what thinking, or what ‘sense’ may result from such work if left unchallenged. His lines 7 & 8, reiterate what is at stake:

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For for social work - Research Paper Example More men than women were assessed in the 40 and below age group. However, women outnumbered the men in number of assessments for those aged 41 and above. Figure 3 reflects the employment status of those assessed and shows that a great number of those assessed were unemployed, and followed by those who were retired. It would seem that the number of assessments was significantly high in people who were not involved in some sort of employment activity. Incidentally, Figure 4 shows that the number of applications for detention under Section 2 and Section 3 of the Act was relatively the same over the years. Furthermore, those applying under Section 4 were comparatively fewer and decreased significantly in 2004. Table 1 shows the living group of men and women assessed and indicates that for both men and women, number of assessment was highest in the group who lived alone and lowest for those who lived with other service users. It is also well worth noting that there were more men who lived with parents or other family members than those with a partner or children. This is the opposite of what we is seen with women wherein a greater proportion lived with a partner or children than with parents or other family members. On the other hand, figures in Table 2 show that a great majority, 39.2%, of those assessed lived in council or housing association property. This figure is twice as large as those who lived in owner-occupied property, 20.4%. In light of the principal psychiatric diagnosis at point of assessment, Table 3 shows that the two most prevailing principal psychiatric diagnosis were schizophrenia and affective psychosis. It is also well worth noting that a significantly large proportion of the cases were not recorded, 14.1%, or not known, 7.5%. This is so because it is quite common that a diagnosis will not have been made at the point of assessment in crisis. Table 4 lists the source of referral for assessment for individuals

See requirement Essay Example | Topics and Well Written Essays - 1250 words

See requirement - Essay Example e 1970s and 1980s, whose advocates support widespread reductions in government spending, free trade and economic liberalization in order to improve the role of the single sector in the economy. It originates from the principles of neoclassical economics. The policies of neoliberalism help to establish a lenient atmosphere for economic development. The anti-politics machine by James Ferguson presents a Foucauldian critique of the development apparatus that the development dialogue produces an illusion of a country that is less developed, how the disjunction of fantasy causes the development plan to fail at its stated objectives, and why the development apparatus has the consistent effect of strengthening and expanding bureaucratic state power. It is adapted from Ferguson’s 1985 dissertation. It examines the reasons for the collapse of Thaba-Tseka range management/livestock development project to establish commercial cattle industry in Lesotho. According to Robertson (1984), development equipment is a practical tool that solves universal problems. It originates from the action of nation-states attempt to establish ideal worlds and development agencies are left with the mandates to implement these unrealistic projects. Scholar’s role in this apparatus is to ensure that the ideal worlds pursued by states are steady with the knowledge of the work of real societies so that development planning can locate itself goals capable of being achieved. Talking too much of the failure of Thaba-Tseka project would be a mistake since most of the rural development projects in Lesotho had faced the same problems. While declaring result of his experience with the project and admitting that the project had its share of frustrations, one of the original planners of the Thaba-Tseka project argues that he would never again be involved in any field management project. Talking to the author, he indicates that of all the development projects launched in Lesotho, only Thaba-Tseka had

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Kangaroo Care and Reduced Risk for Preterm Neonates - Essay Example Kangaroo Care and Reduced Risk for Preterm Neonates The articles were similar in that both used samples of pretern infants and neither one directly targeted neonatal mortality of preterm infants. But, indirectly, they did. The first study was interested in how Kangaroo Care furthered breastfeeding after discharge from the hospital. This is because breastfeeding significantly reduces risk of illness and infant mortality. It follows logically then, that if Kangaroo Care can encourage longer breastfeeding, then it is a tool in reducing risk for illness and mortality in the preterm baby. The Norwegian study was interested in boosting the efficacy of Kangaroo care, by using another promising treatment, music therapy. The research assumptions are different in that the first one considered breastfeeding as a key to the reduced risk of preterm infants illness and mortality, while the Norwegian study hypothesized that the supplementation of Kangaroo Care would probably be important, and they collected physiological data which confirmed this. The findings for the first study were most significant for the very preterm infants, the most vulnerable of the babies. Those mothers who were still breastfeeeding 5 or 6 months after discharge from the hospital were those who had spent the most time doing Kangaroo Care with their baby, in the hospital. Kangaroo Care cayses breastfeeding to happen for a longer time over-all. Breastfeeding lowers the risk of infant mortality and contributes to good health, so these are pretty exciting findings, especially because the findings were strongest for the infants at most risk. That Kangaroo Care encourages continued breastfeeding is a finding confirmed by Gouchon et al. (Gouchon, Gregori, Picotto, Patrucco, Nangeroini, & Di Giulio, 2010) in their study with cesarean neonates. Gregson and Blackson (Gregson & Blackson, 2011) also conducted a research study which confirmed this finding on Kangaroo Care and improved breastfeeding rates and duration. The findings for the Norwegian study included decreased pulse rate, slowed respiration, increased transcutaneous oxygen saturation, and more stable blood pressure for those neonates who received the dual

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Meeting - Essay Example way that would keep them from overtly expressing their biasness on matters and affecting the inter-personal relationships of the organizational staff. This can be achieved through the formulation of certain team building exercises that would encourage the workers from different departments to unite to achieve pre-defined tasks. The benefit of such exercises is that representatives from different functional departments get a chance to frequently socialize with one another. In order to build a team to work for the organization with utmost sincerity, it is imperative that individual staff members respect one another and one another’s rights. Else, it would just be a crowd whereby everybody would be working for personal interests. A team works solely for achieving the organizational objectives. â€Å"A major advantage a team has over an individual is its diversity of resources, knowledge, and ideas.† (Townsley, 2008). Managers are required to design adequate and effective t eam building exercises to ensure the development of a holistic force to work in the best interest of the organization. There are many factors that play their role in the development of an atmosphere of mutual consensus and respect among the organizational staff some of which are discussed in this paper. The most fundamental reason why organizations fail to develop teams is lack of the definition of organizational goals and the designation of strategies to achieve them. Most organizations work in a haphazard manner and place very less emphasis on getting the stakeholders familiarized with the basic goals and the resulting objectives of the organization. Before the start of any project, it is imperative that meetings are conducted to serve as a platform where all stakeholders can be made aware of the fundamental goals and objectives expected from the project at hand. The organizational culture is indeed, the most influential factor in the building up of a team to serve the organization. An

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Staffing policies - Essay Example Contents Abstract †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..2 Executive Summary†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..4 Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦4 Objectives †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦4 Staffing Policies in the Royal Dutch Shell plc†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦5 International Expansion and the Staffing Approaches†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.5 E.P.R.G. Concept†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦6 Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦....8 Appendix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...9 Reference List†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..10 Executive Summary The staffing policies, applied by the most MNEs, generally depend on the key business strategies followed by the companies. Considering the research by Howard Perlmutter, the choice among ethnocentric, polycentric, and geocentric staffing strategies can be stipulated by the company’s marketing orientation. Therefore, the key aim of the report is to review pieces of research that reference Perlmutter’s concept and analyze the scientific value, as well as the correctness of the concept itself. Introduction The staffing policies and principles applied by the international corporations are generally featured with the E.P.R.G. approach, which is developed and theorized by Howard V. Perlmutter. In fact, most multinational companies have to be multicultural and rely on the experience, knowledge, and culture of their foreign employees in order to operate successfully overseas. Therefore, in accordance with the research by Perlmutter, the choice among ethnocentric, polycentric, or geocentric approaches in staffing practices depends on the aims and plans of the company. Objectives 1. Review academic articles and research referencing H. Perlmutter’s E.P.R.G. concept. 2. Define the weaknesses and strengths of the concept and whether the other researchers agree or disagree with it. Staffing Policies in the Royal Dutch Shell plc Royal Dutch Shell plc is known for its ethnocentric approach for staffing. In accordance with the rules of the corporate policy, most financial officers working for Shell are the Dutch citizens. The key reasons of this strictness are associated with the high qualification of these experts and considerable lack of highly experienced and qualified managers in the countries where the company operates. The other reasons are: Inability (and, sometimes, unwillingness) to follow the corporate culture rules; Tight control, which causes amplified stress on the managers. Most executives can not bear such a high pressure; Ethnocentric approach is a part of the company’s corporate culture. The changes in this approach will require deep changes in the entire HRM policy while the company is facing issues that are more challenging now. However, it should be emphasized that technical personnel (engineers, technicians, exploration personnel) can be from other countries. The company had to consider the fact that German, Russian, Brazilian, and Arabic drilling and exploration engineers are of the same qualification level as the Dutch experts. International Expansion and the Staffing Approaches In fact, polycentrism and geocentrism in recruiting policies take place when the company is extending its operations to the overseas markets. In accordance wi

Marketing Plan for Company G Research Paper Example | Topics and Well Written Essays - 2500 words

Marketing Plan for Company G - Research Paper Example This discussion stresses that consumers with comparatively higher income level are likely to purchase electronic appliances as they want to make their life more convenient, and they are ready to part with their money for that. Individual with higher income level are inclined towards trying new commodities and thus would be a prime source of company’s initial revenue from the newly launched product line. In addition to the income level, geography is another important factor. The company should focus its marketing activities in mostly the urban areas as compared to the rural. There are several other different bases for identification of the target market. It must be kept into consideration that one segmentation variable must be superior to another in the hierarchy of variables. Other variables for identification of target market would be age, gender, occupation, education, social class, buyer behavior and lifestyle. This paper declares that the product of the company can be divided into three categories namely convenience goods, shopping goods and specialty goods. Following is the classification of the products offered by the company. The marketing objective if the company G would be to create awareness in the market about the newly launch product line. The company would have to organize various promotion and advertising activities in order to provide adequate exposure to the new product. Price Marketing objective related to the price would be to promote the product based on the criteria that the prices have been set for customers belonging to different income level. The strategy will assist the company in increasing its customer base as it would increase the target market when people from different income classes are indulged in the buying of the company’s products. Place Since the company has established a sound consumer base of franchises in its target market, the

Love at first sight Essay Example for Free

Love at first sight Essay Adolf Hitler was a very famous person that was in the Holocaust. He was a very cruel person who thought that everyone who wasn’t a pure blooded German was lower than him and filthy. He put a lot of people through misery and pain. He didn’t even know if the people he was killing could be nice and pleasant. All he cared about was that they weren’t pure blooded Germans. Adolf Hitler was born on the 20th of April, 1889, in a town named Braunau an inn, Austria. He was baptised catholic and his dream was to become a priest and to peruse art school. He came from a divorced family, his father died in 1903. Hitler’s mother died when he was 18 years old, 1907. Hitler’s grandfather is believed to be Jewish and while in Vienna he had two close Jewish fiends. Hitler also served in World War 1. When Hitler was a child he was brutally abused by his father and lost 3 of his siblings when he was a young boy, 2 from diphtheria and one during child birth. This must have been very traumatic and hard for a young boy to grasp. His mother and father were divorced and his father has 2 marriages after his mother. Hitler had only been 14 when his father died of pleural haemorrhage. He soon after his father’s death left school due to him suffering from lung infections. Hitler had a hard and traumatic childhood and when he turned 18 his mother died from terminal breast cancer while being treated by a Jewish doctor. It is believed that Hitler’s grandfather was Jewish and after his mothers death he became certain for what he wanted to become and moved to Vienna to become an artist, after years before being rejected. Hitler met two Jewish men and became close friends with them. This is why many of Hitler’s generation and the generations there after don’t understand why he turned against the Jewish, could it be psychological issues within his mind and thoughts after having such a rough childhood? What could have been the main reason for Hitler to turn against Jews in particular? â€Å"Hitler began growing hatred for, not the Jewish in particular but rather against the cruel world that he lived in†. There are many that believe this statement is not true because they believe Hitler grew angry after his mother’s death, because it was a Jewish doctor, Dr. Edward Bloch who put her with excruciatingly painful as well as expensive treatments and surgery, and yet she still died. As well as his â€Å"hidden shame† for his grandfather being Jewish. Others believe that he was angry at his father for the abuse, pain and suffering he put him trough and wanted to get back at the world in his own twisted way. What could have been the reason for someone to act so mentally ill, that they’d want to exterminate an entire race? I believe that Hitler was not only physically unfit but mentally too that he may have lost his mind. There are theories that Hitler turned against the Jewish population because it’s believed they killed Jesus Christ and he was a Christian. When Hitler was 18 he moved to Vienna to peruse his passion for becoming an artist, he lived a very poor life living off of hid fathers small inheritance and an orphan’s pension. He became penniless and soon was homeless; he slept in a different place every night. It is during this time that people believe he became prejudiced about Jewish people, developing his knack for politics, and forming his debating skills. Adolf Hitler, two of his closest friends at this time were Jewish. He also admired Jewish art dealers and Jewish operatic performers and producers. However, Vienna was a centre of anti-Semitism, and the portrayal of Jews as scapegoats (the people who bear the blame) with stereotyped attributes (something that someone said that was not true about them but people believed) fascinated Hitler. What could mentally have been wrong with Hitler’s mind that he’d turn so violently against his own family and friends? In May of 1913 Hitler left Vienna and went to Munich, which is the capital of Bavaria, to avoid military services. In January the police came to him with a notice from the Austrian government. It threatened a year in prison and a fine if he was found guilty of leaving his native land with the intent of avoiding conscription (enrolling for the military). Hitler was arrested right then and taken to the Austrian Consulate. When he reported to Salzburg for duty, he was found â€Å"unfit too weak and unable to bear arms. Hitler served in World War I. He was enlisted in the Bavarian army. After less than two months of training Hitler’s regiment saw its first combat near Ypres, against the British and Belgians. Hitler almost died that day and many others. He was awarded two Iron Crosses for bravery. In October of 1916 he was wounded by an enemy shell and moved to a Berlin area hospital. After recovering, and serving four years in the service, he was temporarily blinded by a mustard gas attack in Belgium in October 1918. Communist revolts shook Germany while Hitler was recovering. Some Jews were leaders of these revolutions and this was part of Hitler’s hatred for Jewish people. Could Hitler’s recovery stage have been the time that he started to plot plans to exterminate the Jews, it may be possible that when he was injured and had to recover that he may have become mentally ill. It is also possible that he blames the Jews for becoming injured in the first place and this may have been the last straw for him. It is impossible to know what was running through Hitler’s mind but its more then certain that for one human to hate and despise a race so much to want to demolish them is not human nature, it is not normal for a human to have any thoughts, plots or motivation towards exterminating one person let alone almost a billion people. There are many theories that Hitler was an ill man and wanted more then to exterminate a race but exterminate a nation for his own personal gain, even though this is possible to know there are still theories and accusations and this makes knowing the truth difficult. Hitler’s dictatorship began in 1933, when he joined and created the Nazi party. His leadership, many believe, made him more power hungry then ever, and made him more mentally ill then before. Hitler died in 1945, after committing suicide. There are theories that he couldn’t handle his life anymore and wanted an easy way out, others believe it was his childhood that made him mentally ill and traumatised, and others think it was the guilt of killing millions of people for no reason. What could drive a human to taking their own life? Now you see that Hitler’s life was very sad, like many others at that time. The way he was treated when he was young, his family life, might have affected the way he turned out to be an adult. Which is why many believe he was a strong and ruthless dictator due to his childhood, but this is still not a good enough reason, in my eyes, for someone to commit mass murder and attempt exterminating a race. Hitler was humanly unstable and was not fit to dictate or run a country which led to his genocide of the Jews and suicide. Bibliography www. google. com =to find out the following websites and information. www. historypics. com = was used to find childhood pictures of Hitler and adult pictures. www. historyresearch. co. za = this was used to find information about Hitler’s childhood and life experiences. www. wikipedia. com = Also used to find out more information about his childhood and to see if the information found on the other websites was similar. www. brainyquotes. co. za = Used to find a quote to support the theories and feelings about Hitler. www. ispsuk. org = was used to find out how people can be mentally ill and where it could have began. www. webmd. com = Also used to find out about mentally illness and what it means to become mentally ill.

Citic Tower Essay Example for Free

Citic Tower Essay Stakes in firms such as Cathay Pacific, Dragonair and a string of trading and property companies * Citic Tower (Original) Property development team had gained extensive expertise and knowledge in the property business * Development began in 1995 and completed in less than two years * Despite post-Asian financial crisis, Citic Tower maintained a relatively high occupancy rate Concerns * The discounted cash flow analysis shows a negative net present value Commercial real estate market is extremely cyclical * No guarantee that Citic Tower II would be able to survive the economic downturn (perform as well as Citic Tower I has performed) Situation Larry Yung is interested in this property but hesitant due to uncertainty of future economic conditions * Member of the property development team suggested that CPL acquire rights to the land, and thus the development by offering to purchase an exclusive option from the seller * In the past land owners would not even have considered negotiating an option to purchase development sites but property developers are much more cautious after the Asian financial crisis Calculated by finding the standard deviation of return on assets proportional to time * Net option value=51 million Decision * CPL should (NOT? ) purchase the option *it seems like the price of the option is 77 million (5% equity stake) and if the option value is only 51 million then it seems like a bad idea for them to purchase the option†¦so I’m confused a little about this part still†¦maybe you guys could talk to him about this or figure it out

Succession Planning for SMEs in IT Industry

Succession Planning for SMEs in IT Industry Purpose This thesis is based on an investigation into succession planning in small to medium-size organisations within the Information Technology (IT) industry. The main area of research is centred on whether these organisations develop employees sufficiently to move into pivotal roles or whether they must continue to rely on external recruitment for senior positions. An additional question raised by the report is whether operating within the IT industry brings its own peculiarities. Methodology A survey, by means of postal questionnaire, was chosen as the means of collection of primary data. This questionnaire was distributed to human resource managers and officers operating within the IT industry. In addition to this data collection, use was made also of secondary archive survey data. Findings The findings of this report quite clearly show that, despite statements to the contrary, true succession planning exists in very few organisations. Succession planning theory and best practice are ignored to the extent that real top level commitment is hard to find and very little HR participation exists other than at operational level. Findings show that little has changed over the years in that whatever succession planning exists in organisations, it remain in the authority of senior management, operated by and for them. There is little evidence to show that this has been widened to include more junior levels within organisations. Notwithstanding the fact that succession planning exists within the senior ranks, there is little evidence to show that it actually works. External recruitment continues to be the norm and retention rates of senior personnel do not show any real benefit. The specific problems of lack of opportunity and resource, faced by small to medium-sized organisations, are exacerbated within the IT industry, which brings its own issues of employee high expectation and impatience. Introduction Succession Planning What is it? Definition: Succession planning is making sure that the organisation develops and keeps the right people for key jobs. .. More successfully, it defines the competencies needed for the future and develops them in everyone who has the capability. This provides a pool of talent from which successors to important jobs can be drawn. The Industrial Society (April 1997)[1] Staff turnover dictates that all organisations have a need to fill employee vacancies; key roles not excluded. Forward-looking organisations look beyond a basic recruitment process and understand the value of a system that identifies high potential in current employees, as well as recognising leadership gaps in the organisation. Having acknowledged these requirements, good organisations put in place a development structure that seeks to answer these needs. This complete process is known as Succession Planning. Of course, where such a process is part and parcel of everyday life in an organisation, most likely it is not restricted to the hierarchy of the company. An expected consequence of this situation is a culture of ongoing development of employees from top to bottom, leading to a continuous process of succession planning throughout the organisation. Succession Planning Why is it important? The brief that good leadership has a direct affect on organisational performance lies at the heart of the move towards succession planning. We live today in a fast-moving, high pressured, competitive society, where the slightest advantage may give a company a valuable aggressive edge. If a company is to grow and expand into new areas and markets, it is important that the organisation is built on a strong foundation. The best and strongest foundation for an organisation is a pool of capable, talented individuals, who have grown with the organisation; absorbing its knowledge and its culture, ready to move up through the company into pivotal leadership roles. Organisations that do not provide this home grown talent, and possibly lose valuable knowledge and expertise along the way, may have to seek replacements from outside; with this course of action runs the risk of recruiting the wrong person. This latter occurrence could be a disaster, particularly when a wrong choice is made at a senior level. This situation could lead to serious disruption in an organisation and, depending on the importance of the employee concerned, the result could be terminal decline. Research Aim Succession planning is seen as a crucial process by most major employing organisations (Hirsch 2000, p.ix)[2] The aim of this research is to establish whether, despite the perceived benefits of succession planning, most small to medium-sized organisations fail to nurture sufficient home-grown talent and have to look outside their own organisations to fill key senior positions. An alternative, but equally worrying situation is the appointment of individuals on the basis of class, length of service, family history, etc., without the developmental support. This situation certainly exists within the authors organisation at the present time. There is little, if any, work being done among the senior management team to develop the leadership skills of the successors to the principal roles; although it does appear that in the case of the primary position, the choice has been made! More importantly, this situation continues down throughout the organisation and, in many departments, it is difficult to see which individuals would have the qualities necessary to be able to stem into senior roles if the need arose. This state of affairs creates serious concerns for the direction and future of the organisation. All this exists in an organisation, which claims that a culture of development exists and, if questioned superficially, would be of the opinion that succession planning occurred. Strategy The research method chosen was data collection by means of postal questionnaires to be sent out to the HR Officers / Managers in small to medium-sized high tech companies / organisations in the UK and India private sector. Where necessary, the postal questionnaires are to be followed up with telephone reminders and completed via telephone calls or emails. Outline Structure Literature Review History of Succession Planning Historically, succession planning systems were the sole province of the upper echelons of male, class-dominated society. Whether or not this served society well is an arguable point; the fact that it existed in a class-ridden paternalistic age is not up for debate. The traditional model of succession planning, as identified in The Industrial Society (1997), is for the Board of identify, secretly, a list of two or three potential successors for the senior roles. According to Holbech, no more than two or three per cent of the workforce were deemed to have management or executive potential (Holbech, 2003)[3]. There are considerable, well-documented, drawbacks associated with this process for example, management may continue to choose clones of themselves, perpetuating a culture with a reluctance to change. Without fresh blood, bringing new ideas, organisations may begin to stagnate. The disadvantages brought about by this traditional model may be distilled down to two arguments; the organisation risks losing exceptional talent (with the associated consequences) and employees miss out on development and fail to fulfil their potential. Chris Watkin of Hay Group maintains that the roots of talent management can be found in the outsourcing of the pervious decade. (Carrington 2004)[4] The reduction of graduate recruitment schemes in the early 1990s meant organisations often did not have the right employees in place to move into the senior positions. This situation was fine for a while but, long-term, it proved to be very expensive and not to successful. (2004, p.26) Watkin also says that the recruitment slow-down that had occurred over the past couple of years has highlighted further the need for organisations to make more of their current employee talent. (ibid p.26) Certainly, within the authors industry (IT), the lack of available talent during this period has been a serious (and costly) concern. Definitely, it is cheaper to develop current employees than to buy-in expensive candidates with great potential but little knowledge of the Companys products and specific technologies. The CIPD (2004, p.1)[5] support this view by suggesting that maybe it was better to develop loyal employees who understood the organisation and its culture. According to Rothwell (2001, p.5)[6], one of the first writers to appreciate the need to plan was Henri Fayol (1916), whose fourteen points of management indicate that management has a responsibility to ensure the stability of tenure of personnel. Fayol also said that if the need were ignored, key positions would end up being filled by ill prepared people. The world is now a much different place than in Fayols time but the basic tenets of his thinking remain. According to the Corporate Leadership Council (CLC)[7], from 2000 to 2002, many organisations struggled in the difficult economic climate. Despite this, a number of companies continued to excel, sometimes surpassing their earnings expectations. The CLC believe that the reason for this was the quality of their senior executives; they were successful in creating a steady supply of talent at a time when others were failing to keep up. The CLC go on to say that this differentiation may hold the key to organisational success. (2004)[8] The situation prevailing within corporate management today, not surprisingly, puts Board management succession in the limelight. According to Carey and Ogden in Berger Berger, directors, as guardians of the interests of shareholders, naturally are concerned with the ongoing health and success of the corporate enterprise. Capable leadership is vital to this objective, which means that succession must be considered first and foremost and fundamentally a responsibility of the board. (2004 p.243) Despite this, the CLC found that only 20% of responding HR executives were satisfied with their top-management succession processes. Ram Charan thinks that this is simply inexcusable and goes on to say that a board that has been in place for six or seven years but does not have a pool of qualified candidates and a robust succession process is a failure. (2005, p.74)[9] Build Talent throughout the Organisation If an organisation is to be in a position to provide a continuous pool of talented employees from which the leaders of tomorrow must be chosen, it is important that the succession management process is not restricted to the senior level. There is a need to identify and coach potential throughout the organisation. Sisson and Storey thinks that training and development were the building blocks of a learning organisation and, according to many, the real key to developing competitive advantage. (2000, p.147)[10] According to Carey and Ogden, the familiar view of succession is around changing leadership at the top, one CEO[11] moves out of the corner office and other moves in. In reality, this is only a fraction of the whole organisational development picture. The most vital features of the leadership-development process take place beneath the top level, often not visible to people outside the organisation. (ibid, p.247) Obviously, a long-term goal of an organisation may be to extend the succession planning/ management process down through the organisational layers. Hirsch talk about devolved succession planning where local or functional managers are pro-active with regard to the development of successors for roles within their control. This may be extended in a more deliberate way with a result that although the corporate centre considers only the top levels, the bulk of the organisation follows suit. (2000, p.12)[12] A former Vice-President at General Electric commented, The act of creating a mentality of development within a company makes for more effective operations, even before the change takes place. People function better in a developmental mode. (ibid, p.248) Conger and Fulmer were of the opinion that succession planning and leadership development ought to be two sides of the same coin. They went on to ask that, if this were the case, why do many companies handle them as if they were completely separate issue? (2003, p.76)[13] Identifying possible successors, without the structured leadership development in place may lead to failure for the selected candidate and disaster for the organisation. More and more organisations, including very successful High Street retailers such as Tesco and Asda in UK and Pantaloon, K Raheja Group in India have a policy of promoting from within. According to Zneimer in Human Resources Magazine, Asda grooms its brightest talent for the time when they will step into the shoes of those currently sitting on the board or in the management tier just below. They are encouraged to enter a development programme that taps into the skills of external coaches and internal mentors. This ethos is encapsulated in Asdas Accelerated International Management (AIM) initiative, whereby those deemed to be ready are given top jobs abroad. (2004, p.34)[14] Surely, it cannot be an accident that successful companies have home-grown CEOs:- Tesco Sir Terry Leahy 25 years GlaxoSmithKline J P Carnier 14 years AstraZeneca Sir Tom McKillop 34 years BP Lord Browne 38 years Pantaloon India Kishore Biyani 22 years Source: Management Today, December 2003 (updated) in Zneimer (2004, p.37)[15] As Zneimer points out, the succession policies of Asda and Tesco contrast greatly with that of Marks Spencer, which has gone awry in recent years. Instead of continuing to grow their own, they have been spending a fortune on a revolving door CEO succession policy, which has resulted in a couple of very high profile failures. (2004, p.34)[16] This difference in fortunes highlights very well the benefits of a good succession management process. Ram Charan points out in the Harvard Business Review that, in Europe, 70% of outside CEOs, who departed in 2003 were forced to resign by their boards, as compared to 55% of insiders. In the US, these figures were 55% and 34%, respectively. (2005, p.74)[17] Management Commitments All of the theory and best practice covered in this report will come to nought if management commitment is not secured and followed through. Rothwell makes the point that a programme will be effective only when it has the support of its stakeholders; they must perform as well and own the process. (2001, p.116)[18] Lucy McGee quoted in People Management, the European head of HR at Matsushita observed, Without support from the CEO, you might as well not bother. (2004, p.49)[19] The DDI Study, Succession Management Practices, found that effective succession management systems are more likely to be found in organisations which, among other things, involve the CEO; have the support of senior management and involve line management in identifying candidates. The McKinsey study of the war for talent in corporate America, cited by Hirsch in Succession Planning Demystified, contends that with talent comes business success: You can win the war for talent but first you must elevate talent management to a burning corporate priority. According to a survey conducted by Consultancy Fairplace, as cited in Human Resources Magazine, talent management is not getting the funding it needs. In Human Resources Magazines opinion, this suggests a lack of commitment to talent management. (2004)[20] It is recognised that not all organisations, particularly those in the sector forming the target of this report, are able to fund succession management programmes along the lines of those underway at companies such as Asda and Tesco. Succession management, however, really need not cost a great deal of money. In fact, lack of support for this issue is not generally based on lack of budget but more a function of time. Without priority given to this issue, management keeps its focus on customer demands and is too busy reacting to business crises to give the necessary attention to the succession management process. A great deal of management fails to realise that by always focusing on the urgent (not on the important) instead of delegating, they are missing out on an important development process. Of course, there are numerous ways that a succession planning process may be set up and it is not necessary to include such expensive techniques as external executive coaching. Indeed, small to medium-sized companies may still manage to instil a culture of development without recourse to such methods. Combating The Lack of Support: Obtaining management commitment to a succession management programme will not come easily or quickly. HR professionals must be prepared to give time and effort to the task if they are to be successful. In order to succeed, it is important to demonstrate a need and develop a business case for succession management. Rothwell believes that a succession management programme will be successful only when it has the support of its stakeholders; indeed, in order for it to work they must own the process. (2001, p.116)[21] According to the Corporate Leadership Council, there are increased internal and external business trends, which are forcing companies to focus attention on succession management. Fig. 1 outlines current business trends that may be used to make a case for a succession management process. Where top management support is difficult to obtain, Rothwell suggests that the best strategy is to win over idea champions to support the cause. Ideally, such champions come from well-respected top managers who, possibly, have experienced work-related problems as a result of the lack of a successor to a critical role. (ibid, p.69) The Role of Human Resources If HR really is to contribute at a strategic level and take its place at the top table, it must rise to the challenge. Lance Richards, writing in Personnel Today, suggests this is the challenge of delivering the right people in the right place at the right time and at the right cost and goes on to say that HRs ability to do this could be the key to future organisational success. (2004, p.15)[22] Certainly, much has been written on the contribution that HR is able to make to business. Lucy McGee believes that HR must educate its organisations leaders to understand that business plans for growth and change simply dont stand up without a serious commitment of their time and energy to developing people. (2004, p.48)[23] The overwhelming considered opinion about the role of HR seems to be as a champion of the process, guiding rather than taking ownership. This view is in accord with the CIPD, which feels that, although succession planning needs to be owned by managers, led by the CEO, HR has a critical role in supporting and facilitating the process. (2004, p.5)[24] Conger and Fulmer are of the opinion that, although in most companies, HR is the primary owner of the succession planning and leadership development process, this is a mistake. They believe that, in order to be successful, these processes need multiple owners. It is only by active commitment from the top and not just gratuitous support which managers will sense this is a fundamental activity, which must be taken seriously. (2003, p.83)[25] Conger and fulmar also says that it is not realistic or desirable for the CEO and their executive teams to have sole responsibility. HR needs to be involved in order to bring with it the necessary time and expertise. (ibid, p.83) Certainly, Hirsch found that, although the general role of HR could be described as facilitator, the term really did not do justice to the range of activities carried out. Hirsch also says that a project conducted by the Careers Research Forum qualified facilitator in this context as shown in figure 2. HR as Facilitator Process designer: Advising on how information should be collected and collated. Framing agendas and questions. Process Manager / Facilitator: Direct personal involvement in making sure meetings happen and, on occasion, acting as referee in ensuring the discussion is wide-ranging and objective. Good and conscience: Looking further to the future; asking seriously difficult; questions; highlighting problems that executives may prefer not to see. Direct personal intervention as broker: Knowing people well enough to be able to suggest successors, candidates for vacancies; development opportunities for individuals and influencing executives to take these suggestions on board. Counsellor: Trusted to help executives talk through their issues and to help individuals work out their career directions. Information support: Maintaining quality information, which delivers a direct service when internal candidate search is required or more general questions are asked. Despite this general agreement concerning the important role of HR within the succession management process, the CMI survey found that it is rare for HR directors to have board-level influence. At the end of 2004, only 11 companies in the FTSE 100 had HR directors on their Boards. (CMI, 2005) A large number of organisations are looking now to management tools, some web-based, to assist in their succession management programmes and there is a plethora of talent management software systems on the market. Lance Richards argues, however, that we should pay no heed to the software salesman who offers elaborate, expensive packages they are nice but not required. HR should start the succession planning process, if only in a simple paper and pencil format sometimes, the first step is both the simplest and the hardest to make. Richards advice is not to dumb-down succession planning but to show that it can be done simply and without spending the GDP of Denmark in the process. (2004, p.15)[26] Succession Management Process So, where does all this opinion and theory brings us? Almost without exception, good practice points towards a formal succession planning process, at the heart of which lies leadership / employee development. According to Hirsch, succession planning sits inside a much wider set of resourcing and development processes, called succession management. Succession management encompasses links to business strategy, resourcing supply and demand, skills analysis, hiring processes and management development (including graduate and high-flyer programmes). (2000 p.ix)[27] Michael Liebeman in Rothwell supports this view; he feels that succession planning should not stand alone but should be paired with succession management, which assumes a more dynamic business environment. (2001, p.31)[28] For this view of succession management to be truly successful, it is vital that it be engrained in the culture of the organisation and functioning at all levels. Conger and Fulmer see this as a file-rule process, with the four subordinate rules resting on the fundamental rule of development. They believed that succession planning and leadership development are natural allies that share a fundament goal of getting the right skills in the right place. (2003, p79)[29] Implementing the Process Having secured management commitment, arguably the most difficult task of all, the next step is to implement the process. Identification When looking at a succession planning / management system for the first time, it is vital to establish the positions that the organisation wishes to include in the process. The selection of individuals may be linked to particular key posts or identified as having high potential. Conger and Fulmer suggested that by merging succession planning and leadership development into a single system, companies are able to take a long-term view of the process of preparing middle managers, even those below the director level, to become general managers. They suggested that these systems should focus on linchpin positions-roles that are essential to the long-term health of the organisation. (ibid, p79) Whatever the criteria, it is important that the process is tied in to business strategy and the risk posed by the loss of an incumbent is considered when reaching a decision. Composition of Team It is imperative that the composition of the succession planning / management team is such that sufficient weight is attached to the process to ensure its success. In addition to regular team members, most likely the CEO / MD, senior executives / managers and, preferably, HR, it may be a good idea from time to time to second interested parties. Not only will this provide valuable input into selection of candidates but also secure the assist in spreading commitment to the process throughout the organisation. Top level / company commitment and HR involvement are explored in more details in other areas of this report. Measure for Success Once the succession planning / management strategy is in place, it is important that the organisation puts measures in place in order to ensure that the system is operating efficiently and also to highlight any opportunities for improvement. Conger and Fulmer found that succession management systems were effective only when they reacted to changing requirements. They went on to say that none of the best-practice companies in their study expected that their succession management system would be able operate without modification for more than a year. (2003, p.84)[30] An additional important reason for monitoring the system is to demonstrate any success and, thereby, provide information to sustain management commitment. Retention Once an organisation has found its high performers and leaders of the future, it is important to retain these employees and to ensure not only that their aspirations are fulfilled but also that their talents are used to the best advantage of the organisation. Remember that just as organisations are interested in high performers, high performers are keen to be associated with organisations with a strong reputation. In the field of IT in particular, this reputation extends to cutting-edge technology and product development. Organisations need to hold the interest of these individuals if they are not to be lost to more attractive competitors. In addition to the attraction of personal development, one issue of major importance is the subject of recognition / reward and organisations need to give significant consideration to rewarding high performers. It may be necessary to look at alternative / additional methods of compensation, for example, stock options; performance-related bonus schemes; financial support for professional development. What is important is that high performers feel recognised and rewarded in relation to their perceived worth and at levels that are viewed as competitive in the marketplace. According to Susanna Mitterer of TMI, writing in People Management, Pay attention to how your incentive and bonus schemes are designed, making sure all means of reward are fair, consistent and transparent. (2004)[31] Time has moved on but the expectancy theory of Victor Vroom and notions of fairness expounded by Jacques and Adams still ring true today. Turnover Although it may be argued that some turnover is acceptable, even desirable, quite clearly excessive turnover is to be avoided. The cost to the organisation may be seen on many fronts and, in many cases, may not be recognised or considered. In addition to the oft-championed areas of recruitment, training, temporary / contractors costs, there are issues such as lost productivity, customer dissatisfaction and management time, as well as the very important area of loss of skills and knowledge, both explicit and tacit. This final issue, which is of particular significance in this report, is of vital importance to technology organisations, operating as they do in such a knowledge-rich environment. There are many reasons for voluntary turnover in an organisation and according to the CIPD survey, lack of development or career opportunities accounted for 37% of voluntary terminations in the UK. Additionally, 41% highlighted increased learning and development opportunities as a step taken specifically to address staff retention. Make it transparent It is important that the whole process is as transparent as possible. Conger and Fulmer were of the opinion that, although this was a sensitive issue to manage, it was the right view to take. They believed that, if employees knew what was expected of them to reach a particular level, they would be able to take the necessary action. Not making the process transparent and the criteria for inclusion absolutely clear, leads to misunderstandings, feelings of inequality and discontent. Lucy McGee, writing in People Management, believes that there is a genuine urgency at the moment for succession planning and that every manager must become a talent agent spotting, nurturing and lobbying for people with leadership potential and offers her 12-point guide. (2004, pp.48-49)[32] The Small / Medium-Size Business Viewpoint Although, as mentioned previously in this report, the smaller organisations often cannot afford to implement such practices as, for example, executive coaching, the basic principles of succession management remain open to all. Having said this, there are certain restrictions facing the smaller organisations. In addition to the likely limitations on cost, there are the obvious limited developmental opportunities, which could lead to possible difficulties in retention of able and ambitious employees. A consequence of this is the reduced pool of talent from which potential leaders may be drawn. The smaller organisation may also find its senior staff stretched in many different directions, which could lead to difficulty in obtaining commitment to the issue of succession management. Obtaining this commitment, and finding ways to mitigate the particular problems highlighted above, is a role to be embraced by HR. According to the Corporate Leadership Council, there are a number of imperatives and practices that the smaller organisation may consider to improve the situation, as shown in Figure 3. Although, quite clearly, these actions are to be advised in all situations, with regard to small organisations they become all the more relevant. The IT Viewpoint The IT industry in general is a very young, fast-moving and dynamic industry. A low average age, coupled with technical expertise, brings with it developmental and career aspirations that need to be satisfied and will wait for no man. It is important that Companies recognise this and form policies accordingly, in order that they are able to sustain the requirements for technical and career advancement. For this reason, a culture of ongoing development, whilst important and extremely desirable in all industries, takes on a more critical role in high technology organisations. It may be that the particular problems facing the smaller company are exacerbated when the company affected sits within the IT sector. Additionally, it could be argued that turnover rate within the IT industry takes on a slightly different hue. Turnover