2. (TCOs A and E) Writing an Employee Memo

Your Role
You are the assistant to Ron Kayle, the president of Crane Development. Crane Development is a large construction company with corporate headquarters located in Memphis, Tennessee. Kayle and the management team have decided to move the corporate headquarters to Des Moines, Iowa. As Kayle’s assistant, you are in charge of the massive relocation project, and it is time to announce the proposed move to the employees of Crane Development.

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Background
Crane Development was founded over a century ago in Memphis and located its corporate headquarters in an 8-story building in the downtown area. As Crane Development grew, conditions at headquarters began to get cramped. In the 1970s, space was so limited that Crane had to rent offices elsewhere in Memphis and in eastern Arkansas and relocate some headquarters staff. The company has a firmly set identity as a Memphis corporation because of its longevity in that city.

Two years ago, when Ron Kayle became president, Crane Development was losing business, and the company had experienced limited growth over the past decade. Kayle believed Crane’s lack of growth was due to the separation of the headquarters staff. Because they were in multiple locations, effective communication was difficult. After obtaining management support for headquarters relocation, Kayle bought a large farm outside Des Moines for $20 million. A prestigious Des Moines architectural firm was hired to draw up the preliminary plans for a headquarters facility on the property. Construction is scheduled to begin next year, the first phase of the move to Des Moines will take place the following year, and the move will be completed in the third year. The move will cost Crane Development an estimated $90 million.

Current Situation
After careful study, a corporate decision has been made to offer relocation to all of Crane’s 400 headquarters employees. Kayle believes that by giving everyone the opportunity to move, Crane Development can minimize the employee morale problems that are often associated with a relocation project of this magnitude.

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Because all employees at Crane Headquarters will be asked to relocate, however, all employees will have to make a decision about whether they want to move or not. Most of Crane headquarters staff members are native Tennessee residents, who may be reluctant to move to Iowa because spouses have jobs in Memphis with other companies and children are involved in school activities. Employees who choose to relocate will have to sell their existing homes and purchase new homes in Des Moines. Crane Development, of course, will coordinate a massive relocation effort to help employees deal with these types of decisions. In any case, employees must be told about the move immediately, before rumors begin.

Relevant Facts about the Move
Here is a list of facts about the relocation effort that may be useful to Crane Development employees as they consider the move. You may also use your knowledge of business to develop your message.

Crane Development will provide

Relocation expenses – limit $3,000 per family
Assistance in finding comparable housing
Assistance in selling Memphis homes
Job listings and employment agency contacts for spouses
Assurance of comparable or better job for Crane Development employees
Job location assistance to employees who choose to remain in Memphis

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Des Moines may be an excellent place to live for some employees because of the following factors:

Strong real estate market
Cooler summer weather
Good schools
Lower cost of living
Low crime rate

The move may be less desirable for some employees for the following reasons:

Colder winters
Too far from family and friends
Move will cost too much money
Need to adjust to a different cultural environment

YOUR ASSIGNMENT
Employee Memo: Write a memo to the 400 employees at Crane Development headquarters in which you announce and provide details of the relocation to Des Moines. Give the employees the information they need to make a wise decision about whether or not to relocate to the new Crane Development headquarters in Des Moines. Remember that this is the first time they will be hearing about the relocation, and keep in mind the difficulties that this will cause for many employees

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