“Cleaver’s Sausage House”

Case Analysis

Principles and Dynamics of Management (S22)

Jessica Christine R. Rodriguez

March 2019
Abstract:

Allison Elam, a veteran of big companies such as Heinz and Coca-Cola, is the newly-

appointed Vice President of Operations for Cleaver’s Sausage House, a company engaged in

manufacturing fine sausages in Minnesota. She has been recruited ten months ago by Jayden

Anderson, the CEO, as the latter wanted an outsider to revolutionize the operations of his company.

The late brother of Anderson, Stefan, purchased a software system called Material Requirements

Planning (MRP) prior to his passing. Having successfully worked with MRP systems in the past,

Elam was eager to adapt the system to improve the operations of Cleaver. Although the system

would require a radical overhaul of every aspect of Cleaver’s operations, she assured Anderson

that it would increase the cash flow by $600,000 and save up $200,000 annually by reducing

wasted material. During the executive committee meeting, however, several executives and senior

staff have opposed the idea, asserting that using the system would result in a “costly disaster.”

Unfazed, Elam is determined to formulate a course of action to get the MRP system implemented.

Case Questions:

1. What do you think are the reasons for people’s resistance to the MRP implementation?

Explain.

Many people are reluctant to change unless they perceive a strong need for it e.g., a problem

or a crisis. Making people understand completely why there is a need for change is the first

step in implementation. In the case of Elam, she has obviously failed to get the cooperation

and support from her colleagues as there were certain blind spots that she has failed to address

prior the meeting, hence, the opposition. It was mentioned that she is fairly new to the

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 company thus she may not have yet established a bond with most of her colleagues and

consequently, trust has not yet been gained. Elam also chose to isolate herself while working

on the system, therefore, most of her colleagues lack the understanding and knowledge of

how the system works. There was also an apparent lack of communication between Elam

and her colleagues which resulted to the absence of collaboration. People tend to fear

uncertainties and radical changes unless proper communication and understanding are

cultivated between the proponent of change and the people who will be affected by it.

2. What is the value of the task force idea suggested by the CEO as a way to facilitate

implementation? Explain.

Since Elam wants to implement organizational change which would certainly affect several

functional departments, it is just suitable that a cross-departmental task force is formed as

this will promote collaboration and participation among employees. As mentioned in the

book, successful innovation requires expertise from several departments simultaneously.

Likewise, ideas for product and technology innovations typically originate at lower levels of

the organization and need to flow horizontally across departments. Elam should have adhered

to the CEO’s suggestion so she could have established a bond with her colleagues, gathered

their inputs and ideas, and ultimately gained their trust and support.

3. Which implementation tactics do you think Elam should follow? Why?

Elam must use these three implementation tactics:

 Communication, education

 Participation

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  Top management support

It would be best if she delays the implementation of the MRP system and instead focuses first on

educating her colleagues on the technical knowledge that is required in implementing the MRP. She

should also communicate with them to get their inputs and ideas, likewise, to make them understand

why such change is needed. Furthermore, encouraging participation among the users and potential

resisters, albeit time consuming, will make them feel more involved and committed to the change

she is proposing. Lastly, the visible support of top management will also help her overcome the

resistance as this will ascertain the legitimacy of the importance of her proposal.