Read the case and answer the questions that follow: Case:

Read the case and answer the questions that follow:Case: Valley Wide Utilities CompanyValley Wide Utilities Company, a privately owned utility company, is faced with financial inefficiencies resulting from an expansion of its facilities. President Robert Delgado has requested a review of the firm’s operating standards. He has asked John Givens and Hilda Hirsh to provide a broad outline of MBO performance standards that would identify key standards with which to control performance. Three years ago, Valley Wide Utilities, under the direction of a management consulting firm, implemented a system of MBO for the purpose of evaluating department managers, sales engineers, and consumer service employees.The advantage of such a system of controls is that top management can very rapidly scan a printout and detect any trouble spots in the department. Givens and Hirsh attempted to set the standards as if the personnel were working at a normal pace. After review, Givens and Hirsh raised the performance level on serveral items, reasoning that a standard is probably too low if it can be achieved without a challenge. Delgado had specifically asked for goals that were not easily attainable. There was a certain amount of negative reaction, but in the end, the departments agreed.The SituationDuring the past year, however, a significant amount of dissatisfaction has emerged. In the first year, participation was encouraged and rewards were obtained. The employees set their goals high and productivity increased.Now, however, problems are being reported in the evaluation of performance, and many managers are claiming that the standards set by Hirsh were too tight or unfair. The president said, “Yes, we have had a few operating problems, but no system is perfect.” Hirsh noted that the consumer department had exceeded its monthly labor cost standards, so she called Bill Walton and “red-lined” his performance report. Walton hit the roof. He called Givens and said, “The system is grossly unfair and inaccurate as a measure of performance. The real objective is to control total costs. My department has done this, even though we were over in labor costs. There was a heavy snowstorm last month with lots of frozen lines, and we had to get people out there on overtime. The real need is to maximize customer service and keep costs to a minimum, which we have done.”Two other department managers complained that the system was unfair, and several engineers are threatening to resign. In their complaints to Givens, they pointed out Hirsh was apparently only looking for failures to report, under the cover of the MBO system. Robert Delgado thought: “We may need to take another look at our system; maybe MBO doesn’t work in a utility.”1. Do a little Google search for a web site by Jim Collins. He is the author of Good to Great. Read/listen to what he says about BHAG. Does Western Utility have a BHAG? Would it help? 2. What intergroup interventions might be appropriate for this company? Who is best suited to facilitate these possible interventions?(At least 250 words)