ALTERNATIVE: “One Smooth Stone”



Alternative: “One Smooth Stone”

One Smooth Stone is an entrepreneurial start-up that hosts and manages customized meetings and events for its corporate clients. The video shows how the company’s decentralized, nimble, team-oriented structure helps it to succeed.

(Bonus Case 6-2, “One Smooth Stone” on page 6.50 of this manual relates to this video.)

ALTERNATIVE VIDEO TITLE

ONE SMOOTH STONE

learning objectives

• TO UNDERSTAND THE IMPORTANCE OF DEVELOPING AN ORGANIZATION DESIGN THAT MAXIMIZES CUSTOMER RESPONSIVENESS.

• To see how a relatively small firm can creatively structure its organizational resources to achieve maximum efficiency, so that it can effectively compete in today’s global economy.

• To become aware of the significance of self-managed teams in many of today’s most successful business organizations.

key people and companies

MARK LEDOGAR, VP, PROJECT MANAGER, ONE SMOOTH STONE

Gary Vik, Principal, One Smooth Stone

Steve Koppel, Matt Croft, Sandy Southworth, Grace Martinez, Elizabeth Stary, Stephanie Nowak, employees

overview

THIS VIDEO FEATURES ONE SMOOTH STONE, AN ENTREPRENEURIAL START-UP LOCATED IN SUBURBAN CHICAGO, MANAGED BY ITS FOUNDERS. ONE SMOOTH STONE (OSS) PLANS AND HOSTS CUSTOMIZED MEETINGS AND EVENTS FOR ITS CORPORATE CUSTOMERS, WHICH INCLUDE INDUSTRY GIANTS SUCH AS NORDSTROM, MOTOROLA, AND SUN MICROSYSTEMS. EACH YEAR, COMPANIES SPEND LARGE SUMS OF MONEY TO HOST SALES MEETINGS, CLIENT MEETINGS, PRODUCT PRESENTATIONS AND OTHER EVENTS FOR THE PURPOSE OF DELIVERING A MESSAGE TO ITS AUDIENCE THAT EDUCATES, ENTERTAINS, AND IS EXCITING. OSS’S GOAL IS DELIVER THESE TYPES OF HIGH-IMPACT, MEMORABLE COMMUNICATIONS SOLUTIONS TO ITS CLIENTS.

To continually develop communication events for its diverse client base that are unique and meaningful, an environment that fosters flexibility, creativity, and client responsiveness must be cultivated and maintained. For this reason, OSS’s leadership decided to bypass the traditional, bureaucratic structure that is consistent with the principles of Fayol and Weber, and instead create a structure that was looser and more fluid.

OSS’s organizational structure is flat and very decentralized. This works well since they only hire employees who are highly skilled and can think for themselves. The small amount of departmentalization that exists frequently changes, based upon the number and type of clients the company has at any given time. Cross-functional, self-managed teams are used, in which groups of employees from different areas work together on a semi-permanent basis. Team members are empowered to make their own decisions, and teams often include virtual members, i.e., off-site freelance professionals. At OSS, solving client issues is the first and foremost priority, and the organization’s culture reinforces this and other core values. The company realizes that it has been successful primarily because of its values.

preparing students before the video

ASK STUDENTS ABOUT THE TYPE OF ORGANIZATIONS FOR WHICH THEY HAVE WORKED. LET THOSE WHO HAVE WORKED FOR TALL, BUREAUCRATIC ORGANIZATIONS DISCUSS THEIR EXPERIENCES FIRST. THEN LET THOSE WHO HAVE WORKED FOR SMALLER, FLATTER ORGANIZATIONS COMPARE AND CONTRAST THEIR EXPERIENCES WITH THE FIRST GROUP. ALSO, ASK STUDENTS TO ATTEMPT TO DESCRIBE THE CULTURE THAT EXISTED WITHIN THEIR ORGANIZATIONS.

major issues in the case

THE CASE ILLUSTRATES HOW DECISIONS CONCERNING ORGANIZATIONAL DESIGN, ORGANIZATIONAL STRUCTURE, AND ORGANIZATIONAL CULTURE CAN CONTRIBUTE SIGNIFICANTLY TO THAT ORGANIZATION’S ABILITY TO MEET ITS GOALS AND ACHIEVE SUCCESS. IT ALSO ILLUSTRATES THE EFFECTIVE USE OF SELF-MANAGED TEAMS AND OUTSOURCING BY AN ORGANIZATION.

• Project team organizational structure

• Decentralization versus centralization

• Outsourcing

• Span of control

• Adapting to change

• Continuous improvement

Additional Discussion questions

1. WHAT ELEMENTS OF OSS’S ORGANIZATIONAL DESIGN AND STRUCTURE FACILITATE ITS ABILITY TO READILY ADAPT TO CHANGE?

2. In what way(s) has OSS’s corporate culture contributed to the company’s success?

3. What steps does OSS take to help ensure the success of its self-managed teams? Why do some organizations find it difficult to successfully implement a self-managed team structure like OSS’s?

Suggested Answers for Discussion Questions

1. WHAT ELEMENTS OF OSS’S ORGANIZATIONAL DESIGN AND STRUCTURE FACILITATE ITS ABILITY TO READILY ADAPT TO CHANGE?

OSS’s flat and very decentralized organizational structure allows decisions to be made quickly. Highly skilled employees have been empowered to do whatever it takes to meet a client’s need. The level of departmentalization is minimal and frequently changes, based upon the number and type of clients the company has at any given time. The company is able to provide its clients with a wide variety of specialized skills by outsourcing its special needs.

2. In what way(s) has OSS’s corporate culture contributed to the company’s success?

OSS’s shared value system is described by Mr. Ledogar as “smart, kind, and fast.” Other values include mutual trust, hard work, ethicality, freedom to get the job done the right way, and fun. These values are an integral part of the product the company delivers to each customer, thereby contributing to the firm’s competitive advantage.

3. What steps does OSS take to help ensure the success of its self-managed teams? Why do some organizations find it difficult to successfully implement a self-managed team structure like OSS’s?

OSS takes steps to ensure that each project team matches the client’s needs. Team members must have extensive knowledge of OSS’s services and culture, and must also possess interpersonal skills that match the client’s. Often employees in traditionally bureaucratic organizations are resistant to the changes required to move toward a team structure. Managers are sometimes reluctant to give up their authority over workers, and workers are sometimes reluctant to assume the responsibility of managing themselves.

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