Paper – BoldFlash
BoldFlash Inc. was founded in 1982 in Waltham Massachusetts and was involved in manufacturing of computer storage media like floppy disks as well as various other product mixes. Presently the company is facing turbulent times because of the inability to keep up with highly dynamic market and customer demands. There have been various reasons for breakdown in communication and teamwork. Bad management and autocratic style of leadership led to a decline of the company in regards to product innovation. At present, there is an urgent need for introducing a new innovative product in the market to make a comeback and an organizational change for a longer term.
Conflicting performance metrics and Goal Incongruence
Different performance metrics let to competitive efforts among different departments. Departments were concerned about their own goals at the expense of other teams. The system can achieve its goals more effectively and perform better when organizational goals are well aligned with the goals of different subunits. This organisation was ultimately working toward the same goal, but all the departments had different ideas and purposes. Manufacturing plants operated as individual profit centres and were evaluated on gross margin while Sales department was evaluated on revenue. Consequently, Sales, in order to meet their revenue goals, sold the products at any price they could without looking at the impact on margins. Additionally, Product development frequently made requests to run trials of new products which lowered the efficiency and margins of the plants and jeopardized delivery dates. Performance metric for Product Development team was academic criteria i.e. no. of new patents approved, presentations made at industry conferences, academic papers published in journals which led to the research which didn’t align to the market needs and they missed a big opportunity of excelling in storage devices used for tablets. The difference in...
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