Purple Team: Jeff Cheng, Dan Gallagher, Jeffrey Hollands, Liz Meng , Megan Sichler
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Purple Team: Jeff Cheng, Dan Gallagher, Jeffrey Hollands, Liz Meng, Megan Sichler Examining a Company’s Growth Through Contemporary Corporate Comparison DEC
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DEC. Examining a Company’s Growth Through Contemporary Corporate Comparison . Purple Team: Jeff Cheng, Dan Gallagher, Jeffrey Hollands, Liz Meng , Megan Sichler. Introduction. - PowerPoint PPT Presentation
Transcript of Purple Team: Jeff Cheng, Dan Gallagher, Jeffrey Hollands, Liz Meng , Megan Sichler
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Purple Team:Jeff Cheng, Dan Gallagher,Jeffrey Hollands, Liz Meng,Megan SichlerExamining a Companys Growth Through Contemporary Corporate Comparison DEC2IntroductionExamining the life of Digital Equipment Corporation to better understand how to communicate within modern organizations.WorkingGrowingManaging3DCEIntroductionThe Growth TimelineStartupGrowthPeakDeathStupid CreativeWorkdayGoogleBlockbuster199819574The Growth TimelineStartupGrowthPeakDeathStupid CreativeWorkdayGoogleBlockbuster199819575DEC as a Startup
Ken OlsenHarlan Anderson
MIT Lincoln LabsMaynard Mill
19576DEC as a StartupEngineerEngineerEngineerEngineerSalesSalesSalesManagerManagerOlsenArgumentationBuy-inFunctional FamiliarityDo the right thingDECUS7DEC as a StartupWorking
Growing
ManagingDECStupid CreativeDirect
Do the right thing
Employee
Manager
OlsenDirect
Think stupid
DesignerDesignerDesigner
8The Growth TimelineStartupGrowthPeakDeathStupid CreativeWorkdayGoogleBlockbuster199819579Growth of DECSales
Service
Finance
Mnfctr.
Product Line Product Line Product Line
FreedomOwnershipDuplicationLine Manager
Engineers
Line Manager
Engineers
Line Manager
Engineers10Centralized Sales, Service, Finance, and ManufacturingSeparate product lines, each with engineers and a manager, produced one productStill a very open company, high functional familiarityProduct lines had freedom and took ownership of their productsIndependence led to duplication and inefficiencyProduct lines did not learn from each otherEach organization intersection is a major point of comm.10Sales
Service
Finance
Mnfctr.
Eng
Growth of DEC
Product Line Product Line Product Line11
Line Manager
Line Manager
Line ManagerGrowth of DECProduct Line 1 ManagerSalesServiceManu-facturingFinanceProduct Line 2 Manager12Negotiation between product lines and central organizations became keyProduct line managers had to make sure their product was getting manufacturing, sales, etc. resourcesCompetition for resources led to tension between product linesHigh pressure to succeed to get more resources12Growth of DECNegotiate and problem solve
Tell the truth
Beginning of protect your teamDo the right thingDCE13Problems were always expected, and line managers worked with central orgs to solve themNegotiation and problem solving necessary to build good productsConflict was seen as best wayOpen organization meant truth was necessary in negotiationStart to see negative effects of competition between product linesLine managers fight to protect their own teams, no longer working just for the good of the whole company
13Growth of DEC14(Video Clip)http://dl.dropbox.com/u/7546109/DEC%20Negotiation.wmvProblems were always expected, and line managers worked with central orgs to solve themNegotiation and problem solving necessary to build good productsConflict was seen as best wayOpen organization meant truth was necessary in negotiationStart to see negative effects of competition between product linesLine managers fight to protect their own teams, no longer working just for the good of the whole company
14Growth of DECWorking
Growing
ManagingDECWorkdayPart of a family
Fracture into many units
Negotiation, conflict, build pathPart of something big
Expand scalable, cohesive units
Feedback from customers, follow roadmap1515The Growth TimelineStartupGrowthPeakDeathStupid CreativeWorkdayGoogleBlockbuster1998195716Peak of DECDCSales=$14BEmployees=121,000EVAX
1717Peak of DECEDCManagement IssuesDECworldExternal relationshipEngineersSalesCustomerEngineersSalesCustomervs.1818Managing
WorkingDECGoogleHands-offTension +competitionSystematicRules + freedomPeak of DECDo the right thing,even at the expense of othersCompetition + Cooperation1919The Growth TimelineStartupGrowthPeakDeathStupid CreativeWorkdayGoogleBlockbuster1998195720 Ken Olsen becomes paranoid Power struggles limit collaborationLayoffs undermine familial culture New CEO, new structure Changes in computer industry DEC Dies 21External hires into management positionsDont know DEC cultureKen Olsen doesnt like that the new managers dont follow his management styleManagers aim to move up in the company, makes Olsen uneasyOlsen still favors innovation over power, managers are oppositeWoods Meeting 1989Try to regroup and refocus companyNot too successful found out that everyone knew the company had a problem but didnt know how to fix itComputer industry became more focused on individual consumers, not engg companiesPeople didnt need powerful computers, but they needed them to be easy to useThe internetKen Olsen resigned in 1992 following 2 years that were not profitableNew CEO = Robert PalmerPalmer was sold off parts of the companyPalmer laid people offChanged culture at DECPeople didnt want to stay around Palmers culture
21Sales
Service
Finance
Mnfctr.
Eng
DEC Dies
Product Line Product Line Product Line Product Line Product Line Product Line22Do The Right Thing?DEC Dies DLie to get your wayEMake sure your job is safeCLimit risk taking23Managing
WorkingDECBlockbusterDEC Dies Arguing
Disconnect between segments
Layoffs
No new innovationNew owners
New markets
Relocating
Branches Closing24Learning from DEC
DECApple25Do The Right ThingStartupGrowingPeakDeathProductMarketTeamSelf26Did this mean rightness for self, supervisor, colleagues, department, company, customer, or shareholders? Edgar ScheinThe Growth TimelineStartupGrowthPeakDeathStupid CreativeWorkdayGoogleBlockbuster1998195727Thanks for listening!
Any questions?
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