Interclean Benchmark Essay

466 WordsMar 22, 20102 Pages
InterClean Benchmarking American Express For years, American Express (AMEX) had taken a rather traditional approach to its organizational structure. It only seemed logical that individual organizations would be aligned internally with the products that the company sold. While this strategy worked well for a time, Harvey Golub, the CEO of AMEX, realized that, "Competition is increasing...as more companies try to emulate the way we do business in hopes of achieving similar results. The favorable market conditions that have benefited the company over the past several years are unlikely to continue” (Going horizontal, 1996). Frustration was rising amongst the employees because of the fragmented approach and separate policies with regard to each individual product line. Employee satisfaction was beginning to deteriorate as measured by the increasing turnover rate. Harvey realized the need for a change in the organizational structure of AMEX. InterClean is at a similar crossroads in its existence and can borrow some best practices from the organizational structure that AMEX put in place. By adopting more than just a product selling approach and combining efforts of multiple departments into one, InterClean can maximize its productivity while simultaneously expanding the knowledge on the sales force. The solution at AMEX was to adopt a “hybrid approach consisting of both vertical, functional departments and horizontal processes” (Going horizontal, 1996). Within four months, associates found themselves wearing two hats aimed at departmental and process ownership that was linked directly to the strategic vision of the company. For example, a marketing executive might also own the client acquisition process. Although similar, they are two different functions and it forced managers to think outside of the realm of just the marketing function and led them to consider how the

More about Interclean Benchmark Essay

Open Document