The Dim Lighting Co. is challenged with several problems.
Primarily, low cash flow and decreasing profit margins are an important concern. Also, the management team doesn’t necessarily get along. Many think Robert Spinks, director of R&D, is autocratic, strong willed and impatient.The General Manager, Jim West, is quite concerned about his tenure at the company due to his company’s performance during the previous year. He is worried about what will happen to his job security if the coming year is unsuccessful as well. Also, Spinks seems to be quick to resign when dissatisfied with the degree of innovation present within his location.
Now, with Spinks’s new project as a possible solution, there is much resistance to going forward with development due to monetary worries. Also, the new project is not a guaranteed success, and it is difficult to determine if the payoffs are worth the risk in investment.The causes for the problems are multiple and varied. First, the organizational culture seems to be split.
Some management primarily focuses on the “bottom line”, while others focus on innovation competitiveness. This creates great conflict when new ideas and change and proposed. The culture (with the exception of the R&D department) is: when the going gets rough, put on the brakes and try to establish equilibrium. However, Dim cannot afford to simply maintain the status quo.If Spinks has developed the idea of mirco-miniturization, it is likely that someone else in the field will soon create a similar product.
If they fails to investigate this new technology, they may fall victim to the product that they once had a chance to develop. If this happens, all will be lost for The Dim Lighting Company.They has several possible plans of action. The first is to simply disregard the protests of accounting and production and proceed with Spink’s proposal.
The second is to ignore the claims of Spinks and to maintain and improve current production with the hope of making solid financial gains for the upcoming fiscal year. The third, and most appropriate, option, is to take the organizational culture into account and try to address the needs of the company from both the financial and innovative perspective (for they are indeed complementary rather than opposing).I would suggest that West attempt to get some more support from corporate for the project. If corporate wants to maintain its place in the market, it needs to move and adapt with the developing technologies in its domain. Therefore, a shift in organizational culture is important for not only the company but also corporate headquarters.
Planned and intentional change is necessary for it to succeed. Every attempt must be made to get everyone in management looking in the same direction and sharing a common vision. West should focus on supporting cultural transformations in his company leading to a culture that values innovative change. While this adjustment may initially result in some financial setbacks, these are diminutive compared to the long-range return of this change and the long-range cost of not changing.
