Revolution at Oticon AS: The Spaghetti Organization (Condensed) Harvard Case Solution & Analysis

In the mid-1985s, Oticon A / S, a Danish manufacturer of premium hearing aids, begins to experience significant losses. Lars Kolind, the newly appointed CEO, a vision of the company's headquarters, which would entail a fundamental restructuring and transformation of the organization. Management and staff revolt and refuse to move from the planned headquarters. If proceed with the proposed radical changes, or the recent turn was sufficient to restore Oticon his number one position in the market? In 1990 Kolind decides to abandon his plan to move the headquarters of Oticon, but insists on the pursuit of his vision of what he now calls the spaghetti organization - so named because of the relative lack of structure. Shortly after implementation, the company suffers further financial losses. New managing director brought in Kolind, begins to address the financial dynamics of Oticon A / S, and within six months, the profitability is restored. By 1993, the company enjoys the highest profit since it was founded in 1904. Kolind has achieved a competitive edge he was looking for? How can it be sustained in the coming years? In 1994, EFMD Award. "Hide
by R. Morgan Gould, Michael Stanford, Kate Blackmon Source: IMD 30 pages. Publication Date: January 1, 1994. Prod. #: IMD083-PDF-ENG

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