On December 30, 2013, an account manager in the sales department of UIT India (UIT) filed a complaint with the company’s Ethics & Compliance Cell (ECC). UIT was the Indian branch of a leading U.S. multinational corporation. In his complaint to the ECC, the account manager alleged that he had suffered discrimination by his superior. He was called to a meeting with the ECC where he learned that his superior had received complaints from other employees and was already under investigation. That information made him feel hopeful that his complaint would be resolved quickly and favourably. However, his hopes were shattered when he was placed on a performance improvement plan the next day by the company’s human resource department. According to the plan, he would be terminated if he failed to deliver the set targets within two months. The account manager was furious and felt he was being treated unfairly. However, he was required to accept or refuse the improvement plan within 48 hours. His decision would not only determine his survival at UIT, but also impact his career prospects in the industry.
On December 30, 2013, an account manager in the sales department of UIT India (UIT) filed a complaint with the company's Ethics & Compliance Cell (ECC). UIT was the Indian branch of a leading U.S. multinational corporation. In his complaint to the ECC, the account manager alleged that he had suffered discrimination by his superior. He was called to a meeting with the ECC where he learned that his superior had received complaints from other employees and was already under investigation. That information made him feel hopeful that his complaint would be resolved quickly and favourably. However, his hopes were shattered when he was placed on a performance improvement plan the next day by the company's human resource department. According to the plan, he would be terminated if he failed to deliver the set targets within two months. The account manager was furious and felt he was being treated unfairly. However, he was required to accept or refuse the improvement plan within 48 hours. His decision would not only determine his survival at UIT, but also impact his career prospects in the industry.
On November 25, 2012, the head of Revenue Recognition at ESol Limited (ESol) India was preparing for a meeting with the company’s sales team at the head office in Bangalore. ESol Limited was a large, U.S.-based multinational information technology corporation, which had moved into India in 2000. Since then, its management had insisted on the need for close monitoring of accounting procedures in strict adherence to Generally Accepted Accounting Principles. Although the sales team had negotiated the Request for Proposal with MoveForward, a large research firm in India handling and processing high volumes of sensitive data, in good faith, the revenue recognition team felt that clauses dealing with penalties, liquidated damages and termination put their company at risk and wished to defer all of the revenue proposed for the contract until these issues were resolved. The friction between the two teams put the entire deal in jeopardy.
On November 25, 2012, the head of Revenue Recognition at ESol Limited (ESol) India was preparing for a meeting with the company's sales team at the head office in Bangalore. ESol Limited was a large, U.S.-based multinational information technology corporation, which had moved into India in 2000. Since then, its management had insisted on the need for close monitoring of accounting procedures in strict adherence to Generally Accepted Accounting Principles. Although the sales team had negotiated the Request for Proposal with MoveForward, a large research firm in India handling and processing high volumes of sensitive data, in good faith, the revenue recognition team felt that clauses dealing with penalties, liquidated damages and termination put their company at risk and wished to defer all of the revenue proposed for the contract until these issues were resolved. The friction between the two teams put the entire deal in jeopardy.
The case presents the sequence of events that occurred when a global leader in automated information management technology had to compete fiercely to retain one of its key customers. It presents the environment for B2B sales and the challenges facing the company in a fiercely competitive scenario. The case describes in detail the politics and personalities involved and the importance of relationships and optimism in making sales. It is intended to stimulate readers to explore situation restoration strategies for an existing technology provider that faces the emergence of a capable competitor. Discussion of such strategies involves ethical considerations and highlights the thin divide between ethics and diplomacy in selling efforts.
The case presents the sequence of events that occurred when a global leader in automated information management technology had to compete fiercely to retain one of its key customers. It presents the environment for B2B sales and the challenges facing the company in a fiercely competitive scenario. The case describes in detail the politics and personalities involved and the importance of relationships and optimism in making sales. It is intended to stimulate readers to explore situation restoration strategies for an existing technology provider that faces the emergence of a capable competitor. Discussion of such strategies involves ethical considerations and highlights the thin divide between ethics and diplomacy in selling efforts.