Question
A reluctance to share customer research between departments made it apparent that Advance Technologies had a problem. When the CEO asked the different divisions, each
A reluctance to share customer research between departments made it apparent that Advance Technologies had a problem. When the CEO asked the different divisions, each responsible for a set of product lines, to keep customer research on a central server, employees in several different divisions complained, offering several arguments why other groups should not have direct access to the information they had gathered, and many tried to "opt out" of the centralized server system. Advance is structured by product/business divisions so that there is transparency regarding the costs and profits of each product. Other than quarterly review meetings, where the heads of the units meet with the CEO and the rest of the top management team to go over financial statements, there isn't much interaction between the units. There is also a fair degree of competitiveness between the units, with yearly budgets often being determined by which businesses were the most profitable. Having recently read an article about the impact that Organizational Culture can have on innovation and performance, and the importance of innovation in the industry, the CEO decided that the culture needed to be changed. With profits stagnating, the CEO sent out a company-wide email announcing that Advance would be adopting a collaborative, "fun" culture to ensure future competitiveness and profitability. HR was told to create posters of happy workers captioned with the phrase "Advance Together". Soon, there was a framed poster displayed prominently in meeting rooms throughout the business. Social events were scheduled so that members of different departments would interact. Advance even installed microkitchens and converted a conference room into a games room to make a more relaxed and interactive environment. By the time the next quarterly review meeting took place, the CEO was excited to hear about the impact of the new culture on collaboration and innovation. They were shocked to learn that little had changed. There was little evidence of increased collaboration or information sharing. The CEO asked if people were attending the social events or using the games room. They were told that attendance for social gatherings was negligible and the games room sat empty most of the time. Through gritted teeth, the CEO said "well, it looks like l've got some tough budget decisions to make after these meetings." With this information in mind, please respond to the following: 1. Analyse the case and determine why these departments are not working together. 2. What recommendations would you give the CEO?
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