Cambridge Technology Partners (A) Harvard Case Solution & Analysis

Problem Statement

            The major problem that has been identified in the case “Cambridge Technology Partners (A)” is the fact that the company in spite being highly innovative in terms of developing the product strategy where it is supported by a strong and dedicated human resource strategy has been quite successful and supportive for the company.

            However, the main issue which is present in the current situation of the company is the fact, in spite of high growth rates; the overall quality of the services delivered to the customers has been decreasing. Moreover, another major issue identified in the case is of the relative tension which has raised between the sales and the operations departments of Cambridge Technology Partners.

Key facts identified in the case

            The company Cambridge Technology Partners basically looks to provide information technology consultancy and the software development for the large organizations which have complex and large information systems. The company looks to offer custom designed software application for the customers. The idea is to deliver the services in lesser time and in fewer amounts spent.

            The major approach of the company has been to follow three essential and major features which is to develop a standard software approach which shall not need to be reinvented, moreover a rigorous and a careful description of all the projects, meeting customer expectations and finally to work closely with the clients that shall help the company meet the expectations of the clients where it will help in designing, implementing an supporting the new application delivered to the customer.

Main Problems in the Case

The main problems present in the case are as follows:

      One of the founders of the company who is also a professor in spite being one of the top salesman, has had his difficulties with the consistent in the quality. The company was poor at project management.

      Management issues where the layoff was increasing within the company. Two managers left TA after conflicts rising with Dunlop.

      The immediate problem was of financial hemorrhaging. The burn rate was almost $750,000 and the revenues were almost half in numbers.

      When Jim Sims was hired he had to conduct nine exit interviews. The turnover rate was almost 44% and the morale amongst the employees was too low.

      The technology delivered and offered by CTP was easily imitative; competitors shall work upon it and can deliver the same.

      The management was too short term oriented. The main focus was on the coming opportunity rather than spending time upon research and development.

      The internal communication at CTP was a question mark too. The emails, paper, memoswere not being utilized properly and efficiently.

      Top management perceived a self-centeredness, sense of entitlement, aloofness which made the management task considerably difficult.

      Lack of compensation, increasing stress and poor career path was also a major force of demotivation.

Cambridge Technology Partners (A) Case Solution


Issue No. 1

            The most obvious problem which needs to be resolved is the conflict between the operations and the sales team. The reason is simple, since the bonuses awarded to the sales representatives are much higher as compared to the operations, it creates issues amongst the departments and the operations which work more than 80 hours per week feel deprived of monetary benefits.

            Alternative: Hiring in operations department, bonus dispersed on individual performance rather than company profits overall.

Issue No. 2

            Increasing turnover rate can be the second major issue at CTP. With the business easily replicated, it is a major issue once an employee leaves the firm; he shall start his own work or work for a rival firm which increases the competition.

            Alternative: On the job training and job rotation shall motivate the employees to work with the organization.

Issue No. 3

            The third major issue presented in the case is that in spite of high growth rates; the overall quality of the services delivered to the customers has been decreasing. The customers are not referring others to come over and the current customers are not returning to CTP.

            Alternative: The alternative to this problem as already identified in the case is that, the company should look to restrict itself from making excessive sales. As for now, the sales department which is being benefitted with bonuses and rewards is looking to hold on to each and every order. In the future it should limit its orders and work upon the quality............................

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