Rondell 03
Rondell 03
Rondell 03
November 3, 1999
Presentation Format
Introduction/Background
Impact of the Structure of Engineering Dept.
Impact of Organizational Culture on Strategy/Success
Problem Identification/Recommendations
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November 3, 1999
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
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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
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Organizational Chart, 1978
B ill H unt
P resid ent
P ersonnel 5
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
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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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“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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November 3, 1999
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”
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New communication strategy attempted on “802”product
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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