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Kodak Case Study; Organizational Architecture

Decent Essays

To: Kelly Johnston, CEO Kodak
From: Head of Marketing Operations, Kodak
In Reference To: A Kodak moment; drawing your attention to major architectural flaws within our company, specifically the MAPP plan, as well as solutions for more sustainable options for future structures.

It has come to my attention that there are some major flaws lying inside our organizational architecture. These flaws lay in the foundation of Kodak`s organization structure and so we cannot move forward until these basic errors are corrected. We are seeking companywide success and must act as a company to achieve this.

Throughout its history we`ve experienced dramatic economic upturns and downturns. We are currently trying to pull ourselves out of …show more content…

Something needed to change, and the leaders of the time decided to change its organizational architecture in hopes of maximizing productivity and innovation while minimizing loss of profit. At the time, leaders felt that by following other companies lead, decentralizing the company would stimulate innovation. This is an example of benchmarking, where we shadowed other companies business strategies. This decentralization would emulate the new “lab to market” market structure. In sum we went through two major architecture changes; decentralization and the Management Annual Performance Plan (MAPP) and neither was particularly successful.

Analyzing What Went Wrong
Several major mistakes were made when our management decided to change its organizational architecture with these two plans.

I will begin by analyzing the decision to decentralize our management. This can be summed up as Kodak simply changing the assignment of decision rights within the company.
I believe this plan was not successful because it was incomplete, which is rather obvious. Our leaders had the right idea in decentralizing the company; however they did not follow through with this decision. What I mean is, is that when Kodak leaders split up the company into seventeen units, there needed to be seventeen changings of incentive and reward structures, possibly more. Experience tells us location isn`t everything, common sense tells us money isn`t

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