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Imagine that you are Lars Kolind. The changes you have made have been far more successful than you could have imagined. The company is profitable, producing innovative products and the workforce is pleased with the new arrangements.


Questions
1. Imagine that you are Lars Kolind. The changes you have made have been far more successful than you could have imagined. The company is profitable, producing innovative products and the workforce is pleased with the new arrangements.
a. What are the advantages and disadvantages of allowing the company to regain a more formalised structure?
b. What are the advantages and disadvantages of once again ‘disorganising’ the company?
c. Which course of action do you intend to take and why?
2. Imagine that you were formerly a senior manager with Oticon and are now one of its most successful project leaders. Lars Kolind has shared his concerns with you and asked you to produce a report on the _options for future organisation of the company from your perspective. in particular, he wishes you to address the following questions:
a. What are the advantages and disadvantages of allowing the company to regain a more formalised structure?
b. What are the advantages and disadvantages of once again ‘disorganising’ the company?
c. Which course of action would you recommend and why?
3. Imagine that you are an outside consultant brought in to advise Lars Kolind. He wishes you to address
the following questions:
a. What are the advantages and disadvantages of allowing the company to regain a more formalised structure?
b. What are the advantages and disadvantages of once again ‘disorganising’ the company?
c. Which course of action would you recommend and why?
Background
Oticon, a Danish company founded in 1904, was the first hearing instrument company in the world. In the 19 703, it was the world’s number one manufacturer of ‘behind~the-ear’ hearing aids. However, as the market for ‘in-the-ear’ products grew in the 19705 and 19805, its fortunes plummeted and it lost money and market share. However, its fortunes began to change with
the appointment of Lars Kolind as president of the company in 1988. In order to revitalise the company, Kolind resolved to ‘think the unflnnk’ able’: Maybe we could design a new way of running a business that could be significantly more creative, G faster, and more cost-effective than the big players, 5 and maybe that could compensate for our lack of t
technological excellence, our lack of capital, and C our general lack of resources. t The vision was to create a lorowledge‘based organ- I isation- Kolind realised that the industry was totally itechnologyefocused, but he thought this was short sighted. He believed Oticon was not in the hearing- aid business per 52; they were in the business of
‘maldng people smile‘r – restoring the enjoyment of life that hearing impairment can destroy. To this end, the company adopted a new mission statement: I To help people with hearing difficulties to live life as they wish, with the hearing they have.
Kolind had the vision for Oticon’s role in meeting customers’ needs, but he still had to find a way of implementing it- He believed the key lay in the mix of expertise necessary to provide each customer with an effective hearing aid: micro-mechanics, microchip design, audiology, psychology, marketing, manufacturing, logistics, and all-round service capability. If O.ticon were to move away from merely making hearing aids and instead provide a total package of support
for people with hearing difficulties, it would have to develop a whole new concept in hearing-aid service.
In short, they would have to move from being a technology-bas ed manufacturing company to a knowledge-based service business. They had to build a learning organisation Where experts put aside their expertise and work as a team to ‘make people smile’.

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