1

IMPLEMENTING COMMUNICATION IMPROVEMENTS AT LEXISNEXIS TO

INCREASE MORALE DUE TO OFFSHORING

By

Doon Kemmer

BSMO 167

A paper submitted in partial fulfillment of the requirements for the degree of

Bachelor of Science in Management

INDIANA WESLEYAN UNIVERSITY

November 2011

I have read and understand the plagiarism policy as outlined in the syllabus and the sections in

the Student Catalog relating to the IWU Honesty/Cheating Policy. By affixing this statement to

the title page of my paper, I certify that I have not cheated or plagiarized in the process of

completing this assignment. If it is found that cheating and/or plagiarism did take place in the

writing of this paper, I understand the possible consequences of the act/s, which could include

expulsion from Indiana Wesleyan University.

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Table of Contents

Introduction ..................................................................................................................................... 3

Purpose of the Study ....................................................................................................................... 4

Significance of the Study ................................................................................................................ 5

Writer Significance ..................................................................................................................... 5

Department Significance............................................................................................................. 6

Company and Shareholder Significance ..................................................................................... 6

Broader Implications....................................................................................................................... 6

Organization Overview ................................................................................................................... 7

Identification and Discussion of Issues........................................................................................... 7

Information and Literature Review................................................................................................. 9

Analysis of Issues.......................................................................................................................... 16

Conclusion .................................................................................................................................... 18

References ..................................................................................................................................... 20

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Introduction

During the past several years the economy of the United States of America has fluctuated

substantially. Due to this fluctuation and financial uncertainty, LexisNexis looked to save

money anywhere it could. The company looked into outsourcing in the past, but it was never cost

effective. Offshoring became an option and that is the route LexisNexis is choosing to go. This

case study looks into the decision to offshore customer service and its effect on communication

within the organization. It will look into ways of opening communication and resolving conflict

in an efficient and effective manner as well.

LexisNexis started as Mead Data Central in 1970 as they spun off from Mead with plans

for the LEXIS database (LexisNexis, 2011). LexisNexis is now a subsidiary of Reed Elsevier,

Inc. which is located in London, England. LexisNexis serves customers in more than 100

countries with over 15,000 employees at their global locations (LexisNexis, 2011). They provide

solutions for a large customer base of professionals, but their biggest market is the legal market.

They are going to offshore part of customer service to Manila, Philippines. Manila is the capital

city of the Philippines and has a population of approximately 1.6 million people (CIA, 2011).

Manila is now the world’s leader in telephonic support over India (B. Flynn, personal

communication, October 12, 2011).

The research for this case was gathered from a great variety of sources. A great deal of

the material was taken from books and periodicals about communication and conflict

management, as well as managerial styles and learning styles. Personal interviews were

conducted with employees of LexisNexis who make up three levels of management and staff.

These individuals also have great insight to both upward and downward communication within

the organization.

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The analysis of this case has garnered some interesting revelations. The effect of the

offshoring to the employee was great, but the effect on upper and middle management was also

tremendous. The addition of a new policy for communication will lessen the burden on both the

employees and managers. This then generates a more positive morale throughout the

organization.

Purpose of the Study

The following case study takes a look at the communication and conflict resolution

policies within the technical customer service department of LexisNexis and how they have been

affected by offshoring.

The main issue that the technical customer service department of LexisNexis is dealing

with at the moment is the lack of effective communication and quality conflict management

skills. There are a number of reasons behind these issues. The main reason is the fact that

LexisNexis has decided to offshore some of its customer service to the city of Manila in the

Philippines. LexisNexis can offshore because they are a subsidiary of Reed Elsevier Inc. Reed

Elsevier Inc. has locations across the globe and needs to utilize all of its locations in order to

save money and be more efficient. Offshoring part of the customer service department will save

the company money but it will cost some U.S. based employees their jobs.

The impending offshoring project has exposed issues in communication and conflict

management. The employees feel as if they are not being told all that they need to know and

management is under the impression that they are telling them everything they know. Both

parties have lost their skills for directional communication and conflict management. New

conflicts arise almost daily when the offshoring project is discussed.

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This issue was chosen because it is the hottest topic in the workplace as it affects a large

amount of employees and customers. The research for the study was gathered from numerous

sources dealing with offshoring, directional communication, management styles, learning styles,

personality traits, conflict management and personal conversations with management personnel

and employees. The sources were chosen to assist in the guidance to find an effective solution

for all involved to become better at communication and conflict management. The desired effect

of this solution is increased employee morale and engagement. The items not covered in this

study are the costs lost and gained by offshoring part of a department.

Significance of the Study

Writer Significance: This particular topic was chosen because of a number of reasons.

In today’s economy the dollar is in the forefront of everything a company does. Saving money is

very important these days not only for people in general but for companies as well. This writer

is very interested in the effects of communication and conflict management at the workplace.

The secondary reason this topic was chosen was due to the fact it is a current issue and new

developments occur daily. It is the view of the writer that the issues caused by the offshoring

project can be solved in a simple yet refined manner that will benefit all involved.

Another reason this topic was chosen is the fact that it directly affects the writer. As a

current employee of LexisNexis for the past four years there have been many changes. None are

as significant as this move to offshore positions. There is a very real likelihood of the writer

losing his position and job. The writer is a Sr. Tech Support Representative in the customer

service department. He supports various applications for LexisNexis including the flagship

www.lexis.com and the main practice management software, TimeMatters ® over the phone.

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Department Significance: The technical customer service department of LexisNexis

will benefit from this case study in a few ways. First, they will be able to communicate openly

with others including management about all work related topics. Second, the employees will

gain knowledge into conflict management skills to empower them to solve their own issues

before management must get involved. Third, the employees will hopefully find the atmosphere

at the office a bit less tense and gain increased morale. Managers will find the similar

advantages from this case study as well. They will gain in knowledge and skill but also be able to

spend their time on other tasks due to the employees’ newfound knowledge and skill.

Company and Shareholder Significance : LexisNexis and its shareholders will also

benefit from this case study. A byproduct of increased morale is a larger percentage of employee

buy-in and employee engagement. This increased engagement should help to bolster the

customer service department as a leader in the industry thereby increasing profits.

Broader Implications

The solutions developed in this case study have the potential to utilized in the other

aspects of the customer service department of LexisNexis; the operations and legal, news and

finance departments to be more specific. The processes can then be administered in other

departments within LexisNexis as well as throughout the parent company of Reed Elsevier Inc.

within the United States. Barring any regulations or laws, these policies can also be

implemented in the Reed Elsevier and LexisNexis locations across the globe. Effective

communication and conflict management can be used by everyone.

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Organization Overview

LexisNexis is a leading provider of content-enabled workflow solutions designed

specifically for the legal, risk management, government, law enforcement etc. markets

(LexisNexis, 2011). They began life as Mead Data Central in Dayton, OH in 1970. They

developed LEXIS a full text of Ohio and New York codes and cases, the U.S. code and some

federal case law as well (LexisNexis, 2011). As a member of Reed Elsevier, LexisNexis assists

customers in over 100 countries with more than 15,000 employees worldwide (LexisNexis,

2011). They have now placed that full text code on the internet and added codes and cases from

all over the world. They have also developed case management software to assist attorneys,

doctor, accountants and more in managing the front office and back office portions of their

respective businesses.

LexisNexis is forced to change their offerings yearly, monthly and even daily due to the

competition in the markets in which they occupy. In order to be successful they must take a look

not only at what kind of products they offer the customer, they must look at the how they support

that customer as well. Offshoring is a great way to continue to utilize existing resources and save

costs. The con of offshoring is that it may cause an increase in job losses for individuals in the

United States.

Identification and Discussion of Issues

LexisNexis is constantly trying to improve their share of the legal research market with

products and service. In order to offer more and more products and services, funding is needed.

One way to save money is to offshore one of the aspects of business that doesn’t generate a

profit. The wages in Manila are a fraction of the wages in the United States.

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Due to this offshoring project, employees and managers alike are having trouble coming

to grips with the consequences and advantages. The use of the facility in Manila requires the

hiring and training of new employees. These new employees will be replacing employees in the

United States. The creation of turnover has caused the employees and managers to be on edge

wondering if they will be the ones laid off. With that, conflicts are arising daily and they are not

being resolved quickly and efficiently.

Questions to Be Answered

How can learning styles and personality types assist in conflict management? This

question was chosen because learning styles and personalities are at the heart of most conflicts.

Understanding the people you work with will give the managers and employees’ opportunities to

solve conflicts themselves and even avoid them in the beginning. In order to learn about one’s

co-workers, they must utilize some tools. One of the best tools to use is the Myers-Briggs

assessment. This assessment helps with the understanding of a person’s personality type. In

order to determine a person’s learning style we will utilize the Kolb learning styles by

comparison. In order to gather this type of information from the employees, training classes

need to be administered. LexisNexis has each employee complete a Myers-Briggs assessment

annually and the employees keep their results as well as the class administrator.

What are the roles of communication? This question was chosen because by defining

the roles of certain types of communication within the organization can help to communicate

more effectively and efficiently. In this case we will look at the roles of upward and downward

communication specifically. We will also touch on other roles as well, such as the role of a

manager and the roles of a Human Resources manager.

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Information and Literature Review

According to Abbot (2010), better communication comes with identifying and

understanding workplace communication flows. Abbot (2010) discusses the four flows of

communication and defines them as: downward, upward, laterally and through the grapevine.

These four types are there regardless of the type of communication being used. Whether you are

using verbal, written or non-verbal communication these flows can be present. The author also

discusses a major characteristic of downward communication. He defines enabling as a

communication that enables the receiver to perform a task or service.

Adler and Elmhorst (2009) take a realistic look at communication in the workplace. The

authors emphasize working in teams to develop communications in the workplace. They also

assist the reader in learning and cultivating the necessary skills to create and plan effective

communications both verbally and non-verbally. Some of these skills include: tone of voice,

critical thinking and planning to name a few.

In the blog by Adnan the author gives a brief and informative look at communication and

its types. The author defines communication as “the exchange of ideas, opinions and

information through written or spoken words, symbols or actions.” Adnan describes three types

of communication in simple and easy to understand terms: Upward communication is the flow

of information from employees to management, Downward communication is the flow of

information in the opposite direction manager to employee, and Horizontal/Literal

communication is the communication between co-workers.

Ethics in business are equally important when dealing with communication and

offshoring. Qualifying the need for ethical behavior and applying those behaviors into everyday

business is paramount for success in Business Ethics: Sunday Ethic – Monday World by Batson

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and Neff (2007). Having a personal statement of ethics can help lead managers and employees

alike in the right direction. There are four rules of ethical communication: never intentionally

deceive, do not purposely harm, practice the “Golden Rule” in communication and consider the

organizational culture of the organization.

Bivens (2005) discusses the findings of studies done by McKinsey Global Institute

(MGI), Global Insight (GI), and the Institute for International Economics (IIE) that look at the

cost benefit of offshoring. The report from MGI found that there are very large cost benefits to

offshoring. What Bivens says it does not do is translate into net economy-wide gains. The author

states that the U.S. economy does not operate like a large corporation. Bivens surmised that the

GI study’s estimates were too high for the savings of offshoring and that all of the savings would

be passed to the consumer through lower prices. Bivens states the study conducted by Catherine

Mann at IIE provides a transparent economic case for the effect of offshoring Information

Technology jobs.

The Center for American Progress (2004) held an event on May 20, 2004 that was aimed

at looking at how the United States should deal with offshoring. This event covered four topics.

The first topic was that job creation in the United States is too slow. The panel surmised that the

tax cuts provide by President Bush at that time were the direct cause. The second topic was the

pain and suffering of those who lost their jobs is real. In this topic the panel found that the health

insurance premiums have skyrocketed due to the loss of jobs. The third topic was Congress

should consider specific policy proposals to address the problems created by job loss and

offshoring. The panel wanted Congress to extend the Trade Adjustment Act (TAA) to service

workers and they wanted Congress to increase support for lifelong learning. The final topic was

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to compete globally the United States needs to greatly improve its education and healthcare

systems.

Chapman (2010) defines the four different learning styles that were developed by David

Kolb. Chapman (2010) gives a brief description of Diverging, Assimilating, Converging and

Accommodating along with an example of each style in real world terms. In the article the

author also looks at some correlations to other behavior concepts. He mentions the Myers-Briggs

Type Indicator and how it is similar in how its north-south and east-west continuums are very

closely related. The author also states that knowing the learning styles of others can help in

finding the most efficient way to communicate with them.

The Philippine islands were a Spanish colony during the16th century and they gained

their independence on July 4, 1946 (CIA, 2011). The Philippine Government faces threats from

several groups on the US Government’s Foreign Terrorist Organization list (CIA, 2011). The

Philippines are located in southeastern Asia and total approximately 300,000 sq km The Filipino

people speak Filipino and English and both are the official language of the country according to

the CIA (2011). The median age of the country is 22.9 years old with 4.3% of the population 65

years of age or older (CIA, 2011).

Easy Communication (2006) further explores downward communication in an

organization. The authors define downward communication as “information flowing from the

top of the organizational management hierarchy and telling people in the organization what is

important (mission) and what is valued (policies) (Easy Communication, 2006).” Downward

communication is needed to get things done, prepare for changes, to deject lack of understanding

and doubt (Easy Communication, 2006).

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Fisher, Ury and Patton (1991) give a step-by-step strategy for coming to jointly

satisfactory agreements in conflicts. This strategy can be used in all types of conflicts no matter

who it involves (Fisher, Ury, & Patton, 1991). The authors use a term called Negotiation Jujitsu

to describe when the other party “won’t play.” This section of the book gives ideas to get the

other party to begin negotiating and make amicable gains for both sides. This utilizes a third

party to help with the negotiation as a mediator.

Goodwin and Griffith (2007) give insight into how to determine the triggers of conflict,

create role play environments and apply those and other skills to the real world. The interest-

based approach to conflict negotiation will apply to this case due to the fact that, according to

Goodwin and Griffith (2007), it focuses on parties’ underlying needs, concerns and desires and

finding solutions that will address them.

Hill (2011) describes offshoring as foreign direct investment undertaken to serve the

home market. This is what LexisNexis is trying to accomplish by moving some operations to

Manila. Hill states that call center employees in India make $200 to $300 a month which is

about one tenth of a comparable United States wage. Hill states that outsourcing and offshoring

are make or buy decisions. In the case of LexisNexis, it is a make decision. The facility was

already there and all LexisNexis must do is hire and train the new employees to become fully

operational.

The corporate website for LexisNexis (2011) gives a general overview of what

LexisNexis is and what products they provide and to which business type they are for.

LexisNexis started as Mead Data Central in 1970 as they spun off from Mead with plans for the

LEXIS database (LexisNexis, 2011). LexisNexis is now a subsidiary of Reed Elsevier, Inc.

which is located in London, England. LexisNexis serves customers in more than 100 countries

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with over 15,000 employees at their global locations (LexisNexis, 2011). LexisNexis is a

leading global provider of content enabled workflow solutions designed specifically for a

number of business types, including: legal, risk management, government and corporate markets

(LexisNexis, 2011).

Martin (2007) explores the trend of utilizing technology for communication and the

steady decline of face-to-face communication. According to Martin (2007) the top personal

method of communication by managers is email. The author states that using email rather than a

personal discussion can delay decision-making. “We need to take vacations from our

Blackberrys, computers and voicemail and get out and talk to everyone in the organization.

Nothing can replace open and honest face-to-face communication (Martin, 2007).”

People Communicating (2010) discusses giving orders and what tends to happen and how

to make it work correctly. An example of a poor communication giving orders would be: the

manager has let the power go to his head and uses the wrong words and not state things in a clear

and understandable way (People Communicating, 2010). Good communication is marked with

respect and clear concise instruction (People Communicating, 2010). The article also discusses

using downward communication for both positive and negative feedback. Some points the article

suggests on giving positive feedback are: be forthright, give recognition immediately, recognize

specifics, adjust recognition to the deed and take note of accomplishments by employees and

include them on performance evaluations.

Roberts (1993) utilizes the brutal Hun, Attila as his protagonist to demonstrate leadership

qualities and skills. He chose Attila because he showed single-minded determination and

concern for his followers. Roberts (1993) brings forth a concept called Tribal Togetherness.

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This concept requires all parties to be on the same path in order to succeed. This is the essence

of the trigger to this case as few of the parties involved are on the same path.

Seedam (2008) states that downward communication is most commonly done when a

manager gives an employee instructions to get a task accomplished. The author then gives

examples of effective downward communication types such as: organizational manual or

handbook, oral communication, written direct communication and briefings. Motivation is a key

factor in communication as well. Downward communication can be used for motivation and

feedback, both positive and negative. It is also an easy way to communicate the organization’s

values and beliefs (Seedam, 2008).

Spector (2010) provides a framework for implementing an effective organizational

change based on three perspectives of change. The author states strategic perspective focuses on

aligning behaviors with renewed strategy and the requirements of outstanding performance is the

first perspective (Spector, 2010). The second is, the purposeful perspective focuses on explicit

interventions into the organization that are designed to respond to a dynamic competitive

environment (Spector, 2010). The third perspective is behavioral perspective focuses on the

process of motivating employees at all levels of the organization to alter their patterns of

behavior (Spector, 2010).

The Times 100 (2011) stated that up until the late 1980s, many large firms in America

and Western Europe were characterized by the top-down model of communication. Modern

communication however, focuses on multi-flow communications and empowerment. The Times

100 (2011) also states that formal communications are those that involve the officially

recognized communication channels within an organization. They go on to say that informal

communications are those that involve other forms of communication between members of the

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organization (The Times 100, 2011). Multi-channel communication involves a range of

communication flows for information including technology as well (The Times 100, 2011).

Ury (1991) uses a follow up to Getting to Yes to assist managers and employees alike in

negotiating with an individual or group that don’t want to negotiate. The author uses a five-step

strategy to not get a win over your opponent but win over your opponent (Ury, 1991). The five

steps are: don’t get react go to the balcony and collect your thoughts, disarm them step to their

side, change the game don’t reject…reframe, make it easy to say yes build them a golden bridge

and make it hard to say no bring them to their senses not their knees.

Werner and DeSimone (2009) explore the roles of Human Resources Development in

today’s business world. Organizational development is a process used to enhance both the

effectiveness of an organization and the well-being of its members through planned interventions

(Werner & DeSimone, 2009, p. 463). Edgar Schein’s Change model focuses on the dynamics of

individual change and how a change agent can assist with managing change (Werner &

DeSimone, 2009, p. 464). The first stage is the unfreezing stage, where the individual or group

is motivated to accept the change. The second stage is the actual change is accepted and

implemented. The final stage is that of refreezing. This is where the individual or group has

accepted the change, the change has been implemented and the change is now habit (Werner &

DeSimone, 2009, p. 465). The offshoring to Manila is an organization transformation change.

This theory views organizations as multifaceted, human systems, each with a distinctive

character, its own culture, and value system, along with information and work procedures that

must be frequently examined, scrutinized, and improved upon (Werner & DeSimone, 2009, p.

467).

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Analysis of Issues

There is an old statement that states something similar to: communication is the key to a

successful relationship. This statement may have been meant for personal relationships, but it

applies in the business world just the same. In the third quarter of 2011, LexisNexis decided to

offshore part of the technical customer service department to a facility in Manila, Philippines.

This project has begun and staff is currently being trained at the Manila facility. The impact of

this project is starting to be felt at the Dayton and Springfield, OH locations. The major impact

of this project is communication or lack thereof.

“Top level management is in charge of the project and information is hard to come by for

the lower level managers and the affected employees (R. Shank, personal communication,

October 10, 2011).” This statement by Mr. Shank is the root of the current problem at

LexisNexis. The mid-level managers, like Mr. Shank, try to gain as much information as

possible and they also try to reciprocate that information to lower management and employees as

soon as they get it. “Rising frustration within the employee with the infrequent passing along of

information has made the working environment undesirable (J. Wing, personal communication,

October 10, 2011).”

“The perception of the workforce is that the upper management isn’t telling them the

entire truth and they are holding back information (S. Gohmann, personal communication,

October 10, 2011).” For this writer, the information may be there, but it has not been presented

in an efficient manner. Downward communication can come in many forms and be effective as

well (People Communicating, 2010). The communication can be an email, voicemail, podcast,

memo, letter and a face-to-face meeting. Management has had three meetings with each of the

technical customer support teams discussing the Manila Operations Center (MOC) since July,

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2011. There have also been approximately ten emails and memos sent to the staff. While

information is being delivered as it comes in, there is a problem with the frequency of

communication and the understanding of the information provided. A solution for the frequency

of the communication is a weekly update email. This email could be sent to the staff every

Wednesday. The message would contain any new information, a date for an upcoming meeting

of discussion or that there is nothing new to report. This email should be sent by a different

manager every week to show that all of management is together in this project. Another reason

for a different manager to send the email is to change the routine. “I like a lot of people see the

same email come through and I’ll dismiss it and not read it (J. Wing, personal communication,

October 10, 2011).” If the email or memo is sent from someone new, the risk of it not being read

goes down.

One thing that LexisNexis already does is perform an annual personality assessment.

This is a tool used more and more to gain insight into team dynamics and conflict management.

LexisNexis uses the Myers-Briggs Type Indicator, or MBTI, to define and group individuals to

explore the team and department dynamic. “When you have an idea of why a person behaves

and reacts the way they do, some good things can happen. First a person can tailor their

communications to their audience so they will have a better understanding of the material.

Second, conflicts will start to decline because of the knowledge of the other person’s tendencies

(V. Boccia, personal communication, October 15, 2011).” Another tool LexisNexis can use is

the Kolb Experiential Learning Theory, or ELT. This theory closely resembles the MBTI in that

there are four points on two axes. The Active/Reflective (north-south) dialectic of the Kolb

theory closely resembles the Extraversion/Introversion dialectic of the MBTI (Chapman, 2010).

The Concrete Experience/Abstract Conceptualization (east-west) dialectic closely resembles the

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Feeling/Thinking dialectic of the MBTI (Chapman, 2010). Since these are administered to each

team within the department the results need to be shared with the department. The next step is to

administer these assessments to upper management and share the results with the company. That

way everyone will be able to see what each other’s traits are and conduct themselves

accordingly. This can lead to a better understanding of people and can assist in presenting the

information needed not just for the offshoring project but everything the company does.

Conclusion

It was decided in the third quarter of 2011 that LexisNexis would offshore part of its

technical customer support team to Manila, Philippines. LexisNexis is a subsidiary of Reed

Elsevier, Inc. from London, England and has locations in over 100 countries with over 15,000

employees (LexisNexis, 2011). LexisNexis is a leading global provider of content enabled

workflow solutions designed specifically for a number of business types, including: legal, risk

management, government and corporate markets (LexisNexis, 2011).

Currently the Philippine Government faces threats from several groups on the US

Government’s Foreign Terrorist Organization list (CIA, 2011). But that plays only a small factor

in the decision by management to utilize the location. “The outsourcing and offshoring trend in

the Philippines is continually growing as they are the number one destination for call centers

over India (B. Flynn, personal communication, October 12, 2011).” Since the decision was

made in July of 2011, there have been three face-to-face meetings with staff to discuss the

decision and its implications to the staff. There have been ten emails and memos to the staff

attempting to keep the staff up to date with new developments.

The information has been presented in a lecture type of setting with a small question and

answer session at the tail end of the meeting. There are two problems with management’s current

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communication style. The first problem is the frequency in which updates are given. The second

problem is in the presentation and subsequent understanding of the information.

To solve issue one, a procedure change is needed. Management needs to send out emails

every week as a status update. These emails need to be sent by a different manager to avoid

stagnation and staff not reading the messages. The emails should contain any new information, a

date for an upcoming meeting of discussion or that there is nothing new to report. “This would

make me feel like management actually had our well-being in their minds and that they are

keeping us in the loop (A. McDonough, personal communication, November 2, 2011).”

In order to solve the second issue three procedures need to be added to a current

LexisNexis practice. Currently customer support performs an annual personality assessment.

They use the Myers-Briggs Type Indicator (MBTI) tool and share the results with the individual

teams with the department. These results need to be shared with the department as well as the

teams since there is a great deal of interaction with different teams and co-workers. This allows

people to understand each other a little better and can generate less conflict and more effective

communication. The second addition to this practice is that the MBTI needs to be given to

management as well. This will give them a better understanding of themselves. The third

addition is to share the results of the managers with the employees and the results of the

employees with the managers. This gives everyone the opportunity to learn about each other and

develop meetings with a particular audience in mind.

“Communication is the key to a successful relationship.”

-Anonymous

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