Managing Organization Change ip1

INFORMATIONAL MEMO 2

DATE: December 6, 2009

TO: <Your Name>

Principal, Working Better Group.

FROM Kenneth Martin

President, BARTH Inc.

RE: Times for phone contact

<Your Name>:

I do apologize for not being available to take your calls. We are in the midst of preparing

our 2010 budget and goals to present to the Board. This will be over on the 10th, and we

can speak any time on the morning of the 11th, over the weekend, or on Monday the 14th.

Let me know when you wish to call, and I will have my assistant block out 30 minutes

(and give her the authority to interrupt whatever I am doing so we can connect).

There is some urgency to my request. While we are very successful, the process we used

to create our goals and related financial forecasts for next year and the following 3 years

has brought to light some major issues and concerns. The quality of our earnings is at

jeopardy. Our move to integrate our country markets into a worldwide operation is going

more slowly than I would like. Our regions are competing for resources and complaining

about the high overhead costs “imposed” by headquarters. Many of these issues indicate

we do not have a clear operating strategy, nor do we understand how to measure our

performance consistently across all regions and functions.

To complicate matters further, I have been approached by several firms interested in

forming alliances (some want us to buy them; others want to merge with us). Our Board

wants to finish the 2010 plan and critique the 3-year, long-term plan before proceeding

with any investigation of these possibilities. NO ONE IN THE COMPANY OTHER

THAN THE EXECUTIVE COMMITTEE AND THE BOARD KNOWS OF THESE

PRELIMINARY OFFERS. We know most large-scale acquisitions and mergers do not

achieve their goals and want to make our own operation as strong as possible before we

evaluate making such a major change.

It is not likely that any of these potential alliances will move quickly, especially as I do

not believe we have anywhere close to full internal alignment. Before this recent business

planning cycle, I would have said our prospects were terrific. Now I think they are still

good but am worried we will not do nearly as well as we should.

I came to you because Don Jones mentioned how well you created a common vision,

mission, and objectives for his unit. While I believe we have that, I no longer believe all

our regions (nor our corporate functional departments) have the same clarity or

commitment to it.

Our Chairman, Dr. Jean Paul Dupres, might also call you. He has convinced me there is

urgency in getting our executive team working in a more coordinated and focused fashion.