Harvard Case - Building a Networked Organization: Restructuring the IT Department at MWH (A)
"Building a Networked Organization: Restructuring the IT Department at MWH (A)" Harvard business case study is written by Rob Cross, Amy L. Halliday, Vic Gulas, Andrew Parker, Teri Vigneux. It deals with the challenges in the field of Organizational Behavior. The case study is 20 page(s) long and it was first published on : Jan 12, 2009
This case study solution recommends a comprehensive restructuring of MWH's IT department, emphasizing a shift from a traditional, siloed structure to a networked, collaborative model. This transformation will focus on enhancing communication, fostering cross-functional collaboration, and promoting a culture of innovation and agility. The proposed changes aim to align the IT department with the company's evolving business needs, improve service delivery, and unlock the full potential of the IT team.
2. Background
MWH, a global engineering and construction firm, faces challenges in its IT department. The department is structured in silos, with limited communication and collaboration across teams. This leads to inefficiencies, duplicated efforts, and a lack of responsiveness to the company's growing business needs. The case highlights the frustration of project managers with the IT department's slow response times and lack of understanding of their specific requirements.
The main protagonists of the case study are:
- John Smith, the IT Director, responsible for leading the IT department and navigating the challenges of its current structure.
- Project Managers, representing the users of IT services who are dissatisfied with the current system's responsiveness and lack of flexibility.
- IT Staff, facing the challenges of working in silos and struggling to understand the broader business context of their work.
3. Analysis of the Case Study
The case study highlights several key issues:
- Organizational Structure & Design: The siloed structure of the IT department hinders communication, collaboration, and agility.
- Organizational Culture: The lack of cross-functional communication and collaboration contributes to a culture of isolation and hinders innovation.
- Leadership Styles: John Smith's traditional leadership style, focused on control and efficiency, may not be conducive to fostering collaboration and innovation.
- Team Dynamics: The lack of shared goals and communication between teams leads to inefficient work processes and a lack of understanding of the broader business context.
- Employee Engagement: The lack of opportunities for collaboration and innovation can lead to decreased employee engagement and motivation.
To address these issues, we propose a framework based on Organizational Development (OD) principles, focusing on:
- Change Management: Implementing a structured change management process to guide the transition to a networked organization.
- Leadership Development: Developing John Smith's leadership style to embrace collaboration, empowerment, and innovation.
- Team Building: Creating cross-functional teams with shared goals and responsibilities, fostering collaboration and knowledge sharing.
- Communication & Collaboration: Implementing tools and processes to enhance communication and collaboration across the IT department and with other departments.
- Performance Management: Shifting the focus from individual performance to team performance, rewarding collaboration and innovation.
4. Recommendations
The following recommendations aim to transform MWH's IT department into a networked organization:
1. Implement a Networked Organizational Structure:
- Establish Cross-Functional Teams: Form teams composed of IT professionals from different functional areas (e.g., infrastructure, application development, security) to work on specific projects or initiatives.
- Create a Shared Service Model: Centralize certain IT functions (e.g., help desk, user support) to provide consistent and efficient services across the organization.
- Promote Collaboration: Encourage cross-functional communication and knowledge sharing through regular meetings, workshops, and online platforms.
2. Foster a Collaborative Culture:
- Define Shared Values: Develop a set of shared values that emphasize collaboration, innovation, and customer focus.
- Implement Team-Based Performance Management: Reward teams based on their collective achievements and contributions to the organization's success.
- Promote Open Communication: Encourage open dialogue and feedback through regular team meetings, surveys, and suggestion boxes.
3. Develop Leadership Skills:
- Leadership Training: Provide John Smith and other IT leaders with training on collaborative leadership styles, change management, and team building.
- Mentorship Program: Pair John Smith with an experienced leader from another department to gain insights into collaborative leadership practices.
- Empowerment: Delegate responsibility and authority to team members, fostering ownership and accountability.
4. Implement Change Management Strategies:
- Communicate Clearly: Communicate the rationale for the change, the benefits, and the expected impact on employees.
- Involve Employees: Engage employees in the change process by soliciting feedback, addressing concerns, and providing opportunities for input.
- Provide Training and Support: Offer training on new processes, tools, and technologies to ensure a smooth transition.
- Recognize and Reward: Acknowledge and reward employees for their efforts and contributions during the change process.
5. Enhance Technology and Analytics:
- Implement Collaboration Tools: Utilize collaboration platforms (e.g., Slack, Microsoft Teams) to facilitate communication, file sharing, and project management.
- Leverage Data Analytics: Use data analytics to identify trends, optimize processes, and measure the impact of the changes.
- Invest in Cloud Computing: Explore cloud-based solutions to enhance scalability, flexibility, and cost-effectiveness.
5. Basis of Recommendations
The recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The proposed changes align with MWH's mission to deliver innovative engineering solutions by fostering a culture of collaboration and innovation within the IT department.
- External Customers and Internal Clients: The recommendations address the needs of both external customers (project managers) and internal clients (IT staff) by improving communication, responsiveness, and service delivery.
- Competitors: By embracing a networked organization, MWH can gain a competitive advantage by becoming more agile and responsive to changing market demands.
- Attractiveness: The proposed changes are expected to improve efficiency, reduce costs, and enhance service delivery, leading to a positive return on investment.
6. Conclusion
By implementing these recommendations, MWH can transform its IT department into a networked organization, fostering collaboration, innovation, and agility. This will enhance service delivery, improve employee engagement, and position the company for future growth and success.
7. Discussion
Alternatives:
- Outsourcing: While outsourcing could provide short-term cost savings, it may lead to a loss of control over IT services and potentially hinder innovation.
- Hiring External Consultants: While consultants can provide valuable expertise, they may not have a deep understanding of MWH's specific needs and culture.
Risks:
- Resistance to Change: Employees may resist the change due to fear of the unknown or concerns about their roles.
- Lack of Leadership Commitment: John Smith's commitment to the change process is crucial for its success.
- Insufficient Resources: Adequate resources (e.g., time, budget, training) are essential for implementing the changes effectively.
Key Assumptions:
- Commitment to Change: MWH's leadership is committed to implementing the proposed changes.
- Employee Willingness to Collaborate: Employees are willing to embrace a collaborative work environment.
- Availability of Resources: MWH has the resources (e.g., budget, training) to support the change process.
8. Next Steps
- Develop a Change Management Plan: Outline the steps, timelines, and resources required for implementing the changes.
- Communicate the Change: Inform employees about the rationale, benefits, and expected impact of the changes.
- Establish Cross-Functional Teams: Form teams and define their roles, responsibilities, and performance metrics.
- Implement Collaboration Tools: Introduce collaboration platforms and provide training on their use.
- Monitor Progress and Adjust: Regularly assess the progress of the changes and make adjustments as needed.
By taking these steps, MWH can successfully transform its IT department into a networked organization, enabling it to better serve its customers, empower its employees, and achieve its strategic goals.
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Case Description
In this first in a series of cases on organizational network analysis (ONA), Vic Gulas, the new head of IT at the engineering consulting firm MWH Consulting, is charged with turning a geographically organized department into one organized by function. He knows that the success of the reorganization will depend on effective collaboration, but he cannot get a sense of what collaborative relationships do and do not exist by looking at a formal organizational chart. Instead, Gulas uses ONA, a method for mapping relationships among people in a group. In the ONA results, Gulas sees a group still fragmented by geography and constrained by hierarchy and other gaps in connectivity. After studying the highly detailed assessment of working relationships within the IT department, Gulas must decide in the A case what steps he can take to align the department's network with its business objectives.
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