In the mid-1985s, Oticon A / S, a Danish manufacturer of high quality hearing aids, starts to come to substantial losses. Lars Kolind, newly appointed CEO, presents a vision of company headquarters, which would involve a fundamental restructuring and transformation of the Organization. Management and staff revolt and refuse a planned move of the company headquarters. The CEO should go with the proposed radical change, or has a current turnaround been sufficient to Oticon’s No. 1 ma back … Read more »

In the mid-1985s, Oticon A / S, a Danish manufacturer of high quality hearing aids, starts to come to substantial losses. Lars Kolind, newly appointed CEO, presents a vision of company headquarters, which would involve a fundamental restructuring and transformation of the Organization. Management and staff revolt and refuse a planned move of the company headquarters. The CEO should go with the proposed radical change, or has a current turnaround been sufficient to restore Oticon its No. 1 market position? In 1990 Kolind decides to abandon his plan to move headquarters Oticon, but insists on pursuing his vision for what he now calls the spaghetti organization – named so named because of their relative lack of structure. Shortly after implementation, the company is suffering further financial losses. Brought in a new managing director of Kolind, the financial dynamics of Oticon A / S begins to approach, and is restored within six months of profitability. Until 1993, the company was founded enjoys its biggest gain since it in 1904. Kolind has the competitive advantage he sought achieved? How can it be continued in the years to come? A 1994 EFMD award winner.
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from
R. Morgan Gould,
Michael Stanford,
Kate Blackmon
Source: IMD
30 pages.
Release Date: 1 January 1994. Prod #: IMD083-PDF-ENG
Revolution at Oticon A / S: Spaghetti Organization (Condensed) HBR case solution