November 3, 1999

Rondell Data Corporation

“Organization is the architecture on which enterprises are built, but organizations must be willing to change frequently in order to grow and remain viable” (Cook, Hunsaker, & Coffey)

November 3, 1999

Presentation FormatIntroduction/Background

Impact of the Structure of Engineering Dept.

Impact of Organizational Culture on Strategy/Success

Problem Identification/Recommendations

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Company Background Established in 1920-Bob Rondell Started out as Rondell Equipment Co. Mfg.of electrical testing devices Radio Broadcasting Equipment-1947 Data Transmission Equipment-Early 1960’s Long standing reputation as source of high

quality/innovative designs 3

Company Background Company sales brochure:”Convert Problems to

Solutions” Two major lines-1978

Broadcast Equipment (35% of company sales) Data Transmission

Size: 1947-100 employees 1978-800 employees 4

Organizational Chart, 1978

L en S ym m esC on tro lle r

D ave S ch w abF ac to ry S u p .

P erson n e l

R a lp h S im onE xecu tive V P

D oc R eevesD ir. o f R esearch

F ran k F orb u sE n g in eerin g S ervices

F ran k F orb u sD ir. E n g in eerin g

R on P orte rV P S a les

B ill H u n tP res id en t

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Organizational Culture Age/Experience valued Creativity/Genius revered Seniority important (good ‘ole boys network) Preserving “family spirit” of the old organization ”Personal management/Informal approach”/Personal

contact communication style

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Culture at Rondell Length of employment highly valued Informal relationships key to functioning Each department has its own function or niche Each department’s turf should not be invaded Each department responsible for its own members Little regard for the overall impact on the organization Tradition built on cooperation 7

Observable Behavior Conflict and little cooperation Blame placed on other departments Little formal organization

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Different Values Production Department values timely schedules Engineering Department values designs, planning, and

innovation Sales Department values timely service to the

customer

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Required Changes of Strategic Design Blocked by Culture

Strategies focused by culture Subcultures functioning as countercultures Hiring of second generation employees into key

positions

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November 3, 1999

“The real test of the effectiveness of a corporate culture comes when the organization’s environment changes …Sometimes a strong culture can be like a millstone around the neck of a firm that is trying to respond to environmental chnages” (Reimann & Wiener)

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Background Factors/Current Issues Gradual increase in disputes between research,

engineering, sales &production people over last 2 years(assumed this has occurred since retirement of previous Dir.of Engineering,a 30 yr employee)

Disputes centered on the problem of new product introduction

Director of Engineering position “revolving door” New communication strategy attempted on “802”product12

Background Factors/Current Issues New filtering technique added to existing design at last

minute Product “802”returned from production 4 times due to

design flaws Production assigned to other jobs Delay in product delivery to customer-“here we go

again”(VP-Sales)

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Recommendation Retain the services of a qualified consulting team to

help the management team. An Organizational Design process be initiated to

determine the best organizational structure for the company.

Our assumption is the new design will be product line focused.

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Recommendation A cross-functional approach be taken to accomplish

key company task such as new product development. Decisions be pushed down into cross-functional teams

who have the responsibility for delivering a timely, quality and manufacturable product.

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Recommendation Engineering Services should add a project

management function to aid the team in coordination, planning and monitoring project progress.

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Recommendation Teambuilding should be a priority at Roundel. The

constant finger pointing needs to be stopped by organizational wide efforts at breaking down functional barriers and creating an environment of team participation and decision making.

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