Sears Case Study

This memo is in regards to addressing several key issues that have currently came to light regarding, the lack of communicating vital information within the company, and the companies business practices of handling consumer credit card debt.

In order to appropriately address the situation at hand, we must first understand the events that got us to where we are. As people file for bankruptcy, it is understood that they will receive protection from creditors and will attempt to payoff credit card debt as soon possible if possible, without threats and hassle from creditors. The problem lies with the company aggressively pursuing monies from delinquent cardholders once they have filed for and been granted bankruptcy protection. Not only was the pursuit of the debts morally wrong, but also the matter of which the debts were pursued was illegal. The company did not include the court systems in the pursuit to recoup finance, which is required by law. Not only has this matter not been handled appropriately, but the questionable business practices are on the companies’ books as acceptable company practice, that has been practice for decades. Also, what needs to be addressed is the fact that outside counsel was hired to come in and review the companies practices of debit collection and at that time it was determined that the practices were questionable.

With the above mentioned in mind, the first and most important issue that needs to be addressed is the lack of communication to the executive management. Especially, with the grave and severe repercussions that could harm the company at stake. When the outside legal counsel conducted their review of the companys’ policies and determined that the company was participating in questionable practices, that matter should have been addressed at that time and not swept under the rug. The best way to handle a problem is to be proactive and not reactive. At this time, its better to do your on internal investigation of the matter and admit your wrong doing versus making it seem like your hiding something and have it found out by a 3rd party. Especially, when the 3rd party is a disabled employee of the company.

To continue on with the issue of the lack of communication, it is also important to know who all actually knew about the outside counsels’ findings. Calling the executive meeting at this time is the best thing you can do. At this point, the last thing you need is more surprises. In the meeting, if you can open the door for open discussion this could be your best friend. This would also be a good time to setup some type of communication model to give and receive information, and at this point written communication would probably be the best way to go. By establishing written communication as the communication method of choice, you will have a record of what is going on and who said what.

Another goal for this meeting, should be to identify exactly how long these business practices, regarding credit delinquency, have been going on and also find out who knew about the matter and if there is anything else out there that you need know. Its best to fix a problem at the root, and to get to roots it usually requires digging. If you can get a handle of how many people maybe involved and how much money maybe involved, you can determine if there is a quick in house fix for the problem versus considering legal outcomes.