Case study Donnelley and Co'

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Case studyDonnelley and Co.

• Feedback from
• Eng. D. (MEEM) students
• Semester A 2000-2001

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Organisational Cultural Issuesin Technology
and Product Innovation Managementby T.P. Lo
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Questions On Donnelleys Organisation Culture

• What phases of management Donnelley has gone
  through in the print industry ?
• What was Donnelleys organisation and culture
  type ?
• What were the roles played by the individuals ?
• Has Donnelley strategically developed the
  organisation and culture to enable technology
  innovation ?

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Donnelleys Organisation (pre-1993)
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Decentralized
USA
National Patterns of Corporate Climate
Donnelley
Canada
Sweden
UK
Informal
Formal
Denmark
Netherlands
Spain
Germany
Japan
Centralized
Trompennars, F., Riding the Waves of Culture,
The Economist Books, London, 1993.
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Donnelley Organisation (1995)
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Information Services Group
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The Paradigm Shift in Donnelley

• Good profit from long run printing
• Cowan, Faber and Clarke were responsible for
  conceiving new paradigms
• Anticipation of rejection

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500 Sales in Donnelley

• 80 95 sales filling home plants
• Personal culture (most upper management
  originated in sales)
• The Peter Principle
• In any large organization, the most competent
  individuals at a given level will inevitably get
  promoted to jobs higher and different (often more
  complex but less technical) responsibilities,
  until ultimately they reach a level where they
  are both nonproductive to the organization and
  miserable in their job satisfaction
• Lawrence Peter in his book The Peter Principle,
  1969

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Management Functions in Donnelley

• Strategic Management Paradigm and Goal setting
• Planning What?, When?, How?
• Delegating Who? (Organization)
• Coordinating and Control
• Leadership (Motivation)

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Managerial behaviour in Donnelley in promoting
innovation/creativity

• Managerial behaviour of Faber and others
• Willing to absorb the risks taken by subordinates
• Comfortable with half developed ideas
• Willing to stretch organizational policy
• Prepared to make quick decisions
• Good listener
• Do not dwell on mistakes
• Focus and gear the pressure to goals
• Foster interpersonal contact
• Give continuous feedback
• Recognize the need for outside stimuli
• Recognize creativity - publicly
• Put up with some innocent foibles
• Maintain a balance between need for freedom and
  the necessity of structure

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Technimanagement

• Control
• Goal
• Measurement
• Correction

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What I would do if I were the CEO of Donnelley?

• Set business strategy to promote technology and
  product innovation whilst maintaining revenue
  from steady market share for the traditional
  printing
• Plan strategy to develop organisation culture and
  roles for innovation champions
• Develop programs/ methods/ plans of action
• The requirements for achieving set goals
• Who will do which part
• How the different parts tie together
• Innovation
• Product, Process, Service, Technology,
  Managerial, Marketing, Organisational
• Create Team culture with knowledge sharing and
  continuous improvement

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Barriers to Innovation Ideas to Improve
Innovation Management at Donnelley
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If I were the CEO of Donnelley, I would have
promoted innovation
WHY? Because Donnelley would die when paper
printing market shrunk WHY? Because competitors
would improve their productivity through
IT WHY? Because globalisation will expose
Donnelley to international competition
So, re-organise Donnelley So, keep abreast with
IT technology So, move labour intensive work to
low cost areas and create centre of excellence
for information services
WHY-SO REASONING Petty 1997
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Innovation

• Product
• Process
• Services
• Technology
• Managerial
• Marketing

Creating an organisation and culture to induce
innovation
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Encourage all to make good use of the right side
Sees things as a whole Holistic
Sees things in parts Sequential
Right
Left
Rhythm Music Imagination Images, Color Shape
recognition Day dreaming General creativity
Logic Reasoning Language Numeracy Analysis Lineari
ty Abstract
Majaro 88
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Idea Generation
From enthusiasts and discussion groups
Creative Briefing
From existing products
Idea Making
From other sources
From individuals
From unexploited patents
From brainstorming
First ideas list