Oticon A/S: Spaghetti Organization and Beyond
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Case Code: BSTR318 Case Length: 23 Pages Period: 1988-2008 Pub Date: 2009 Teaching Note: Not Available |
Price: Rs.400 Organization: Oticon A/S Industry: Hearing aid Countries: Denmark; Global Themes: Organizational Transformation, Organizational Structure, Business Process Reengineering |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Enter Lars Kolind
Despite the various efforts taken that the Oticon management team took to revive the company's condition, not much could be accomplished. As a final effort, on October 1, 1988, Lars Kolind was appointed the Chief Executive Officer of Oticon...
The Spaghetti Organization
Kolind's memo received mixed reactions from various quarters in the company. Along with skepticism among employees and strong opposition from the management, there was agreement among the young managers that the drastic changes were required to revive the company...
The Resultant Transformation
In October 1991, the same year as the spaghetti organization was established, Oticon launched Multifocus - the world's first fully automatic hearing aid. In his book, The Second Cycle: Winning the War against Bureaucracy, Kolind wrote that Multifocus was a BTE hearing aid which was initially designed in 1981 under the name E36...
Shift to Formality: Partial Abandonment of Spaghetti
Analysts observed that a mellowing down of the original spaghetti structure started around 1996. However, though this management style and structure ceased to exist in their original form, the company continued to avoid a rigid hierarchical organization structure...
Oticon in the New Millenium
Despite its partial turn-back from the non-conventional organization structure and management style initiated in 1991, Oticon continued to introduce pioneering solutions for the hearing aid industry...
The Road Ahead
In September 2008, Oticon appointed a new executive board. The board comprised Soren Nielsen (Nielsen) as President (Portfolio: R&D, Marketing, and HR) and Mikael Worning, as Executive Vice President (Portfolio: International organization and Sales)...
Exhibits
Exhibit I: Styles of Hearing Aid Solutions
Exhibit II: Market Shares in the Global Hearing Aid Industry
Exhibit III: Excerpts from the Oticon Human Values Statement
Exhibit IV: Financial and Technological Performance between 1988 and 1999
Exhibit V: Key Financial Figures Representing Oticon's Performance Trend Between 2003 and 2007
Exhibit VII: Oticon's Product Launch Time-line between 2001 and 2009
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