Rondell Data Corporation

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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)

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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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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 1960s
• Long standing reputation as source of high
  quality/innovative designs

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Company Background

• Company sales brochureConvert 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
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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 departments 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 organizations
  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
  802product

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Background Factors/Current Issues

• New filtering technique added to existing design
  at last minute
• Product 802returned 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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