Rando Systems Expands Internationally Rando Systems, Inc., based in an Atlanta suburb, is a developer and marketer of speech recogni-tion software. Initially, the company focused on domestic clients; six years after its founding, the company began actively marketing products for international consumersin particular consumers in Western Europe, Australia, New Zealand, Africa, and Asia. At the start of the global expansion, all international operations were managed by a small team based in the Atlanta office that worked closely with a network of trusted distributors and resellers. Soon afterwards, the company decided to open commercial offices in France, Germany, and the United Kingdom, staffed with all local employees. These new employees were to take over the sales and marketing activities for Europe and Africa. The company also hired a sales manager based in San Francisco for the developing markets in Asia. Research and Development, and training/technical support services are still based in the United States at the Atlanta office. Until the opening of the European and California offices, most organizational commu-nications involved face-to-face discussions, meetings, telephone conversations, and informal sessions such as lunches, after-work drinks, and weekend parties. These types of interactions resulted in a very tightly knit group and a constant flow of information about the market and the peculiarities of the technology. When the UK, French, German, and San Francisco offices were set up and new personnel hired, communication methods became less informal. The com-pany began to use electronic mail extensively. Some people in the Atlanta office said that e-mail was used exclusively. Occasionally, but rarely, overseas managers would come to Atlanta for very brief visits to headquarters. No lengthy training period was set up by the home office to get international personnel acquainted with the teams in the United States. Many communication inefficiencies occurred in the beginning of the expansion for a few obvious reasons: (1) new personnel had to learn a fairly sophisticated product and the peculiar market of speech recognition, (2) new personnel were unfamiliar with the organization, and (3) time differences. The first two problems would be overcome as time went by, and the time zone factors were adjusted to by adapting to different business hours. However, communication breakdowns persisted. European offices were not on the same e-mail system as the rest of the organization, causing messages to get lostespecially compa-nywide broadcasts. As the European personnel got more involved in the markets, they felt that they had less time available for communication with the San Francisco and Atlanta office said that e-mail was used exclusively. Occasionally, but rarely, overseas managers would come to Atlanta for very brief visits to headquarters. No lengthy training period was set up by the home office to get international personnel acquainted with the teams in the United States. Many communication inefficiencies occurred in the beginning of the expansion for a few obvious reasons: (1) new personnel had to learn a fairly sophisticated product and the peculiar market of speech recognition, (2) new personnel were unfamiliar with the organization, and (3) time differences. The first two problems would be overcome as time went by, and the time zone factors were adjusted to by adapting to different business hours. However, communication breakdowns persisted. European offices were not on the same e-mail system as the rest of the organization, causing messages to get lostespecially compa-nywide broadcasts. As the European personnel got more involved in the markets, they felt that they had less time available for communication with the San Francisco and Atlanta offices. As a consequence, there was very little information exchange between parallel departments in the United States and Europe. Sales and marketing missed many opportunities for joint sales and marketing efforts, especially with clients that had a global presence. That cost the com-pany several accounts. Also, international service departments, such as training and techni-cal support, found the European personnel unresponsive to solicitations about training needs and scheduling service events for clients. The European office only seemed to be responsive if were not on the same e-mail system as the rest of the organization, causing messages to get lostespecially compa-nywide broadcasts. As the European personnel got more involved in the markets, they felt that they had less time available for communication with the San Francisco and Atlanta offices. As a consequence, there was very little information exchange between parallel departments in the United States and Europe. Sales and marketing missed many opportunities for joint sales and marketing efforts, especially with clients that had a global presence. That cost the com-pany several accounts. Also, international service departments, such as training and techni-cal support, found the European personnel unresponsive to solicitations about training needs and scheduling service events for clients. The European office only seemed to be responsive if the need was expressed as urgent. Those in the Atlanta office found the Europeans aloof and inaccessible. It was almost as if the European office envisioned itself as an autonomous entity. The European managers considered their Atlanta counterparts to be dictatorial and oppressive. To improve communication, Rando Systems built a secure web site for employees-only use and a parallel one for partners (distributors and resellers). Unfortunately, the site wasn't well maintained and the information was not updated regularly, so people stopped using it. Expanding internationally continues to hurt the consistency of Rando's product and ser-vices. The problems related to communicating with the European offices have not been resolved and have made it difficult for Rando to maintain what had been an excellent reputation.

What are the roots of Rando's communication problems?

What could Rando Systems have done before the international expansion to reduce the communication problem?

Given the present situation, what can Rando do to improve communication between the Atlanta and European offices?

Answer rating: 100% (QA)

The roots of Randos communication problems can be attributed to several factors 1 Lack of familiarity The new personnel hired for the international offices were unfamiliar with the organization and th... View the full answer