The Keyboard Company The Keyboard Company is a medium-sized manufactur ing firm supplying computer keyboards to many national computer manufacturers. The company has experienced rapid growth since its beginning by president John Zoltan and is now moving into advanced electronics from the - electromechanical assembly of the past. John Zoltan had recently attended a university executive seminar, and was so impressed that he brought in the professor as a consult- ant. At one of their meetings, it was decided that to achieve the \"organizational excellence\" that Zoltan do sired for his Company, he should start an internal OD con- sulting group. The president ran an ad in The Wall Street Journal, and he and the conSultant selected four young M.B.A.s. These four, and one young internal prospect from human resources, were formed into what was called the OD group. (See Exhibit 6.1.] THE OD GROUP The OD group was housed in an old conference room and began with a high level of enthusiasm and energy. The members of the group ranged in age from 23 to 34. The members were Pete Loornis, 25, M.B.A., a. behavioral spe- cialist, who had done training in industry; Kay Hughes, 27, MBA, who had been a sales representative prior to grad- uate school; Bill Heller, 26, M.B.A., specializing in group dynamics with no industry experience; Don Morgan, 34, MBA, with OD experience m the military; and George Kessler, 23, with 3 years of experience in the human re- sources deparbnent The group spent their first month getting to know the various members of the organization. They held Weekly conferences with Iohn Zoltan, who was very interested and active in the planning stages of the OD program. [Exhibit 6. 1 At that point the group (the \"hot-shots\" as they Were knoWn in the plant) started a companywide training pro- gram focusing on managerial style. The program involved 3-day training sessions at an off-site location, a resort motel with good meals and so on. This Was called the \"country club\" by disapproving employees. ' The group itself was a highly cohesive work team. Be! cause of their open office, they spent long hours tossing ideas around and providing support and enthusiasm for ead'h other's ideas. They were all involved in the design of the program (as was Zoltan} and Worked hard to make it a success. Often the group would sit around until nine or ten o'clock or even midnight, critiquing the sessions and plan ning new approaches for change. Within the group there was a diversity of dress, but with individuality and openness being a norm. Pete, George, and Bill usually dressed informally in Levi's and sport shirts, While Don and Kay dressed in more of an ex ecutive style wearing sport jackets and the like. This differ- ence in dress also redacted a division of thought within the group. Pete, George, and Bill wanted to be more oonironta~ tionai and aggressive in approach. They wanted innovative changes and wanted to overhaul the production opera- tions. The others felt that they needed to be accepted first and favored more gradual changes. They felt that the group needed to start \"where the system was\" if they were to be effective. About this time, Zoltan left for a visit to Asia to in~ spect new marketing opportunities. THE ACTIVITI] ES As the training continued through all levels of the organi zation, they were also collecting organization survey data to be used in. planning the next phase of the OD program. Partial organization otthe keyboard company President John Zoltan Vice Pres. Finance (Controller) Vice Pres. Human Resources Paul Blake _____...._._..._._..___ Here the controversy began to emerge. Some wanted to hold feedback sessions and to confront the members with the data, then begin a jobdesign program leading to total quality management. The second group, including Don and Kay, suggested a slower and more gradual approach. They thought that given their low level of acceptance in the organization they should start with something less threat- ening, such as data gathering and feedback. A second rift occurred When they began to see less of Zoltan as the training progressed. However, Kay could call the president's office and get an appointment anytime. which she often did. Don Morgan also held a weekly brief- ing session with Zoltan when he was in towu. The other members, particularly Pete, made a lot of jokes about this tachbut there was often an edge of seriorqp ness under the humor. For example, Pete and Bill had been trying for 2 W eeks to see Zoltari to explain their ideas, buihe was unavailable. Yet his secretary called for Key Hughes to join him for coffee. Whenthe group discussed this, Don and Kay simply stated that they were trying to maintain and de- velop the group's relationslup with the client. Peter replied, \"I thought the Whole organization was our Client." Unfortunately, the evaluation of the training program was mixed. Some managers and departments were full of praise for the program, whereas others were highly nega- tive, calling it "a waste of time and money.\" In a meeting with John Zoltan, the controller expressed the idea that, inview of the disappointing results, it would be a good idea to move the OD group to the human re sources section forbudgeting purposes. The group was cur rently charging over $700,000 per year to overhead, and this was highly unpopular among the line managers because overhead costs were allocated. Zoltan said he would give the matter some thought and discuss this possibility with the executive committee. THE MEETlNG Shortly after this (approximately 1 year after the group had been formed), the members of the group were invited to the executive committee meeting, where the performance of the OD program was discussed and evaluated. John 2011311 and others expressed high praise for the work of the group. However, the executive committee had suggestions for int- proving the group inthe future. Because Zoltansuggested a need for more coordination and integration of training activities and for improved budgetary control, the committee recommended that the group be place :1 within the human resources department for budgeting purposes, reporting to Paul Blake. The commit- tee assured the group that this would not affect the way the group operated. Second, the committee suggested that one person be designated the central contact person. Don Morn ganwas the one person that they all feltwouldbeacceptable I to a Hiajority of the company managers and they recom . mended him, but they left the decision up to the group. As the group walked back to the office, several angry : suggestions were made along the line that Zoltan \"could take this job and shove in\" Both Kay and Pete said they - were consider-mg resigning from the company