Instructions

Determinate Systems

River Martinez has a promising future in consulting. After graduating from business school with an excellent track record, River got a job with Ao Nuevo Consulting, headquartered in San Juan, Puerto Rico. This consulting firm specializes in organizational culture transformation. It has several well-known companies as clients, including two that are in the Fortune 500. River has been on the job for a couple of years and has mostly worked on consulting teams shadowing or supporting more senior staff. This month marks a significant change for River, as River will finally get to spearhead work with a new client. Before meeting with the new client, River attended a debrief on the client's background, goals, and objectives. Milly, the strategic debriefer at Ao Nuevo assigned for this client, provided River with a fact sheet and promotional materials for the client company: Determinate Systems (see Exhibit A). After a brief presentation on Determinate Systems, River had a better idea of what the company was all aboutat least, what the company "looks like" from the outside.

Arrival

Fast-forward two weeks laterRiver was circling the Houston skyline and looking out the window at all of the buildings. From River's window, the Determinate Systems headquarters (HQ) complex could be seen as the plane was beginning its descent into Houston. River thought it was quite interesting how the "campus" was laid out. Honestly, it looked very old-fashioned. River was used to high-tech, modern facilities, especially in industries such as the educational services industry, which has experienced rapid technological growth. These buildings looked like they had not changed in decades. River could spot "The Benny," which was the main building for Determinate Systems, affectionately named after Ben M. Douglas, Determinate's founder. River noticed the abundance of palm trees along the path from "The Benny" to what looked like a large warehouse. Before River could continue scanning the landscape, the Determinate HQ faded from view as the plane began to deploy its landing gear.

The next day, River waited in the hotel lobby for the transport to arrive. River eyed the agenda for the visit (Exhibit B). "OK. The first meeting is with Charlie Laureate and the Top Management Team (TMT)." River's eyebrows raised after reading the note at the bottom of the page. "Wow... they really take consistency and punctuality seriously!" River's thoughts were abruptly interrupted by a loud honk of a car horn. After looking up, it was clear the ride was here. River stepped into the car and was introduced to a Determinate Systems ambassador and public relations officer. They made sure River was comfortable on what the driver noted was an exactly 26-minute drive to the HQ complex. River joked with the driver about whether they wanted to place bets at that time on how long it would take to get there. The driver glared at River, and River felt embarrassed. "Umm, it was just a joke...," River thought. As the driver pulled into the complex (sure enough, precisely twenty-six minutes after departing the hotel), River was amazed at the sense of history felt from the landscape, buildings, and layout. The palm trees looked rigid, stately, and impressive, like they were flanking a Southern U.S. capitol building. There was a statue of "Benny" surrounded by smiling students and teachers. There were cactus gardens all around the base of the palm trees on the path from "The Benny" to the vast warehouse. After stepping into the Lobby of The Benny, River felt like its doors were a portal to the past. There was retro furniture everywhere, portraits of past CEOs, and plaques outlining the beliefs and values of Determinate Systems. After checking in at the front desk, River was led to the Newton Caf. Struggling to make conversation, River asked, "Oh! Is the caf named after Isaac Newton?" After giving a quizzical look, the assistant said, "Well, no... it's named after Benny's favorite apple from the United Kingdom, 'Newton's Apple.'"

Charlie Laureate and the Top Management Team

Roughly half an hour later, River is sitting in a chair in a waiting room outside of a boardroom on the top floor of the five-story "Benny." About thirty minutes before the meeting is to start (everything is very punctual here!), a person approaches, introducing themselves as Dr. Charlie Laureate. "It is so great to meet you, Dr. Laureate!" River exclaims. Dr. Laureate responds, "The pleasure is all mine; nice to meet you!" Dr. Laureate asks River back to the executive office for the CEO. Dr. Laureate, making small talk, notes that this office was once the same office that "The Benny" worked in... during the "glory days." River noticed Dr. Laureate close the door. Dr. Laureate began to delicately shift the conversation toward business. "I must say, River, we are very fortunate to work with Ao Nuevo Consulting. I was appointed as CEO because things at Determinate are, well, stagnating. I, and several of the members of the company at all levels, feel the same way, and we need to do something about it. The trouble is, there are some powerful figures in the company who do not see things eye to eye with us. These folks have been around since the glory days, and a number of them were on The Benny's original team! I have been here for a little over a year now, and I just can't seem to gain any traction." Before River has a chance to respond, Dr. Laureate exclaims, "Oh, would you look at the time! We must start heading to the meeting! Shall we?"

An hour into Dr. Laureate's presentation and right before the open discussion, River has a pretty clear idea of the essence of Determinate Systems. River recalls the presentation slide that very succinctly described Determinate:

MISSION: To make sure students and trainees are making the most out of learning. BELIEFS: Learning can be achieved by anyone with the right tools and support. VALUES: Tradition, Punctuality, Reliability, Discipline, Precision.

As the open discussion started, River asked some questions about the Determinate campus. The Chief Operations Officer (COO) was very excited to describe the symbolism of the layout. Margo Duxsmythe (the COO) explained how the straight, linear path from the Benny to the Educational Production Facility (EPF) is meant to symbolize the linear path toward education and knowledge. River assumes this is where they will be this afternoon! The palm trees and cactus flowers are intended to represent persistence, hardiness, strength, and resilience. At 11:00 a.m. River begins the breakout meetings with the TMT. River is shocked at what appears to be a polar divide between two camps. Roughly one-half of the eight executives echo Dr. Laureate's concerns with the stagnation in the company and the lack of growth and innovation. The other half appears to be rigidly staunched in tradition. River is especially interested in what the latter executives have to say. At the end of the breakout sessions, River noted that it would be hard to forget the conversation with Elliott Blake, the Chief Financial Officer (CFO) of the company. Elliott noted that after many decades in business, things haven't been better. Everyone knows the Determinate assessment name, to the point where many in the education community would consider it a "household name." These comments were puzzling to River, because the other executives painted a less rosy picture. They noted mounting competition and threat toward a company that still seems like it is operating in the pre-Internet world.

The Determinites in the... Mound?

The lunch at 1:00 p.m. at the Newton Caf was good. "But seriously," River thought, "how can these Determinites eat an apple pie with EVERY meal? What does this mean?" However, River could not keep thinking about the divide she witnessed during the breakout sessions with the executives. River wondered if the same division would be perceived amongst the employees as well. At 1:45 p.m. an assistant approached River in the Newton Caf, and they began the five-minute walk down the straight and narrow path toward the EPF. The assistant comments that the EPF is where the "magic" happens. The tour was quite informative for River. River discovered that all forms of the Determinate assessment are administered in paper-and-pencil format, processed, and scored in this facility using the same system developed in the 1970s by The Benny. This was an interesting counterpart to the number of vendors out there today that administer their tests entirely online or in computerized formats. Furthermore, River found out that Determinate employs a network of educational support staff who are trained in how to administer the test. Determinate deploys these staff around the region to distribute and collect the assessments. They are hired using a stringent selection system that only employs people who would make "the best" Determinite. They, and any other employee hired, must go through a rigorous two-month onboarding program where they learn the ins and outs of "the Determinate way." During the tour, River overheard an employee say something about when someone was coming to "the mound." River asked the tour guide what this meant, much to the embarrassment of the tour guide. The tour guide explained that many of the employees think of themselves as "termites" and that the EPF is their "termite mound." River was surprised to hear this and did not know if the term is used endearingly or disparagingly. Finally, nearing the end of the tour, River was excited to see what cutting-edge products were being developed as a part of the technological solutions division. Truthfully, River felt underwhelmed. Although Determinate is definitely well-known for its assessment, River was surprised to find out that this division primarily produces overhead projector slides. These slides are manufactured in the same warehouse where the assessments are processed and scored. Perhaps not surprisingly, River learns that they are produced cheaply, much in the same way that they were made in the 1990s (when Determinate entered this space). River finds out that there is still a market for these transparency slides, even though it seems like many advancements in technology have relegated overhead projectors to the background.

During the latter part of the visit, River met with one representative from each division: Royal, a supervisor from the Assessment and Scoring Division; Dakota, an "educator" from the educational staffing support team; and Dallas, a technical services team lead from the technological solutions team. Each meeting was illuminating for River. First, the meeting with Royal seemed to echo what many of the executives and managers had been saying. Royal said it all in one sentence: "We like how things are here, and we don't want them to ever change." Indeed, it is hard to argue with how successful the assessment business has been for Determinate... but there surely have been some missed opportunities? River thought. Next, the meeting with the Educator was interesting. Although Dakota seemed to really "believe" in the staffing services Determinate provides, Dakota noted that many of the educators differ in how they do their jobs. Some go "by the book" and "down to the letter," as they say. But then others secretly do their jobs the way they want to, violating policies and practices. Finally, River met with Dallas in a secluded part of the EPF that was not a part of the tour. River is surprised when it is revealed that these are the Technological Solutions division offices. River finds out that in this 1,000-person company, there is only a team of six people who manage this entire division. Dallas seems to be numb, sad, and jaded with the work. But before River could prod any further, River was taken to the Educational Staffing Support division for the 4:00 p.m. newcomer orientation.

The Charge

The newcomer orientation was like nothing River had experienced before. River was surprised to see the employees all dressed in white suits. River wanted very badly to speak up when the facilitator referred to the new employees as "larvae." However, after the orientation, the facilitator said that it is a part of the company and a very affectionate term. "The larvae are one step closer to becoming Determinites once orientation is complete!" the facilitator mentioned. After a half an hour discussing the mission, beliefs, and values of Determinate (without taking questions), the final part of the orientation was "The Charge" ceremony, marking the transformation of the "larvae" to full-fledged "Determinites." Shockingly, the facilitator yelled, "CHARGE!" All at once, twenty new Determinites immediately sprang into action. They formed a single-file line, marching in lockstep down the corridors of the EPF. Once they reached the doors to the building, they proudly marched down the narrow path to "The Benny." Once there, all of the management staff cheered the new Determinites on, including the CEO and other executive officers. The ceremony ended in a speech by Dr. Laureate, in which they were all there under a common purpose: to help others make the most out of learning.

Before River left, the question had to be asked... "Why, termites? Why, the mound?" Dr. Laureate laughed and noted how the terms were a reference to the Stanford University study by Lewis Terman. Terman tracked "genius" students (referred to as Terman's Termites) over the century, documenting their personalities, successes, and experiences. Terman's research found that success for these students was attributable to more than just intelligence: motivation, engagement, education, and persistence accounted for their success in many ways. "The Determinites exist to inspire students to be at their best, like the 'Termites.'" River had a lot to think about during that drive back to the hotel. River thought about the experiences with Ao Nuevo, and how much hinges upon leading a successful transformation of Determinate Systems. River had to really think critically about the day's events and what Ao Nuevo could do to help. A lot is riding on thisnot just River's reputation, not just Ao Nuevo's reputation, but most importantly, the future of the Determinites.

Questions

1.Place yourself in River's shoes. What is a good plan for facilitating organizational change at Determinate Systems? What could be changed, and how? What steps could be taken to collect additional information, if any? Is there anything that doesn't need to be changed?

2.Thinking about Determinate Systems, how could it be described to apply the organizational culture frameworks discussed in the textbook? For instance, how would Determinate be classified using the Competing Values Framework? The Organizational Culture Inventory? Where would Determinate Systems fall along the dimensions of the Organizational Culture Profile?

3. From the case above, is there a dominant culture? Was there any evidence of subcultures? How strong vs. weak would one consider the culture at Determinate Systems to be?

4. Detect any organizational climates that stemmed from the culture at Determinate Systems? What were they (for instance, how would one characterize Determinate's policies, practices, and procedures related to innovation, tradition, and diversity)? Notice any climate differences between various groups, teams, or divisions at Determinate Systems? What were these differences?

5.Can River (or anyone else for that matter) truly understand what a culture is like without being a part of it, personally? Why or why not?