Johnson Johnson
Accounts Payable Shared Services Case Study In the world of automation, every firm is striving to use this technology to make their business more efficient. However, the transition to the new system does not come without risks. This can range from a small loss of productivity, or turn into out right failure.The latter is what Johnson and Johnson experienced in the case of their shared service effort. Upon the evaluation of the facts, the following recommendations have been reasoned to help Johnson and Johnson correct the implementation of the shared services, or other similar projects. It has been determined that phasing out the old systems and not informing the employees about losing their jobs would be the two successful alternatives. These alternatives are reasoned in the following paragraphs through, the use of The Value Facet Analysis. The culture making Johnson and Johnson successful is through its practice of a strong decentralized management. With the shared services, the processes are going to be done at a centralized location, rather than at there own facilities. Therefore, if the shared services were implemented successful the firm would be operating aga
In addition, it can be just as easily been stated that most employees would want to keep their current job if no other opportunities arise. Suppliers Values The number one objective for the suppliers is to be paid after they deliver the goods. To ensure that this does not happen, the alternatives of phasing out the old system and not telling the employees about potential job loss should be implemented. Either way, the customers may not get their products and Johnson and Johnson will either not get paid or loose customers to other competitors. The implementation was a flop and has the potential to cause grave problems in the future. If the alternatives of phasing out the old system as not informing the employees purchasing and accounts receivable will be unaffected and the Value Over Time would increase. This will force the employees to look for new jobs, thus resulting in a decrease in performance effort. The process that Johnson and Johnson used to implement the shared resources drastically put the payment of the vendors to a halt, which could be extremely detrimental to the organization. The alternative of the phase in implementation would solve this problem. If they find out that Johnson and Johnson cannot accommodate its customers, they may step in and steal Johnson and Johnson's customers. Conclusion The previous paragraphs displayed the net effect that the Value Over Time for the long term would increase if Johnson and Johnson chooses the alternatives of phasing out the old process and not telling the employees that there jobs may no longer exist if the new system is successful. Suppliers could reject supplies to the company or could revoke their credit, demanding cash on delivery, which would drastically hinder the financial stability of Johnson and Johnson. If the alternative approach was taken, the firm could phase out the old operation while implementing the new plan. Therefore, the existing culture would want these shared services to fail.
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