Clark University Management Consulting Project Exhibit K
Scope Letter Agreement
The following describes the scope of the management consulting project for Rainey Industries to be performed during the Spring 2005 semester by the Clark University management consulting team.
Snapshot of Rainey Industries
Rainey Industries was established in 1960 and since then has grown to rank between 20th and 30th in the propane distribution industry. The reason for their success is not only their astute management but also their philosophy that they primarily sell “comfort.” Since its incorporation, Rainey Industries has been a closely held company with the corporate strategy being expansion through acquisitions. The company has twelve distribution centers, each with individual storage tanks and distribution trucks, making them able to respond more quickly to customers. The recent years have seen Rainey Industries move towards both a centralized management function and accounting system. Besides their core product of propane distribution, the company has shown a significant level of interest in the real estate business. After reaching the status as one of the most respected players in the industry, Rainey Industries has recently been examining their organizational structure and the Clark consulting team has been hired to help them in this evaluation.
Upon completion of the initial meeting with Mr. Vincent Price (CEO), Mr. Richard Harris (MIS), Mr. Albert Fisher (HR) and Mr. Jason Davidson (Credit Manager) along with Professor John Rainey (SBDC) on February 11, 2005, it has been determined that the management consulting team will conduct an extensive organizational review in order to acquire relatable information for Rainey Industries
Consulting Group Deliverables
- Review and revise all employee job descriptions
§ Conduct interviews with employees both at the branch level and at the headquarters level
§ Compare and contrast the job descriptions on paper and practice
§ Create new employee job descriptions
§ Return job description to employee for agreement/disagreement or to make changes
§ Send job description to upper management for approval
§ In certain cases, we may ask specific positions (managers) to write their own job description
- Review and revise existing organizational chart and its effectiveness for the company
§ Analyze the existing organizational chart and comment on its effectiveness
§ Study the evolution of different organizational charts since the company’s incorporation
§ Evaluate cost/benefit analysis of changing organizational chart throughout the years.
§ Use information gathered from the first part of this project (“job descriptions”) to refine the existing organizational chart
§ Conduct a confidential survey regarding employee perspective on organizational structure, effectiveness of management, compensation, etc.
3. Research possible employee incentive packages
§ Research on how to motivate employees
§ Analyze and evaluate the earlier employee survey done by the company
§ Conduct a new confidential employee survey
§ Suggest an employee incentive package
4. Revise employee handbook (IF TIME ALLOWS)
§ Make changes to it as suggested in list from Mr. Willey
Rainey Industries Requirements
In order to conduct this project smoothly, the Clark management consulting team will require the following from the company:
- Regular meetings with the management executives from Rainey Industries to discuss and review our work during the course of our research
- Access to all employees and facilities
3. Access to phones, fax and meeting rooms
4. Access to any other information duly required in completing this project
Due to changes in external conditions or priorities, the scope may need to be altered during the course of this project. Any changes will be reviewed and authorized by Professor John Rainey and Mr. Price (CEO) and then agreed upon by all involved. If an agreement cannot be reached, Professor Rainey will make the final determination on the change. Upon completion of this research, the team will deliver a formal report encompassing these three major areas with necessary recommendations to further its organizational analysis on or before Thursday, April 28, 2005.
Signed,
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Mr. Vincent Price
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Mr. John Rainey
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Mr. Ahmad Al-Manayes
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Mr. Mayank Goradia
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Ms. Allison Fredette
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Mr. Chuan-Yu Kuo
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Ms. Maya Ovadia