Xel Communications

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An introduction to the case – The context of Organization

XEL Communications, Inc.—located in the outskirts of Denver, Colorado designed and manufactured various telecommunications products for a number of companies—primarily large U.S. telephone operating companies. Originally, it was a division within GTE headed by Bill Sanko, it was about to be closed when Sanko and a few others bought the loss making division from GTE and made it into a profit making organization. Its revenues increased from $16.8 million in 1992 to $23.6 million in 1993 and $52.3 million in 1994—over a threefold increase in three years. By the year 1996, XEL communications, Inc. employed approximately 300 people. The case examines several key aspects of XEL's operation: determining the appropriate product/market mix, financing growth, developing a quality-oriented culture, self-managing worker teams, and maintaining innovation. XEL is now faced with three options owing to its rapid growth. They could continue to remain privately held, they could go public or they could take a strategic partner. XEL decided to go for the third option after listening to the advice of a consultant. They finally decide on Gilbert Associates as their partner.

Organizational Effectiveness

Organizational effectiveness has been defined as the ability of an organization to fulfill its mission through sound management, strong governance and a persistent rededication to achieving results. Effective nonprofits are mission-driven, adaptable, customer-focused, entrepreneurial, outcomes-oriented and sustainable. It also relates to the capacity of an organization to sustain the people, strategies, learning, infrastructure and resources it needs to continue to achieve its mission. It is a long-term outcome. In the case of XEL communications, Inc., its mission and vision statement has been passed on to the employees in a cascade manner and every single employee was made aware of these statements and they regularly...
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