Mount Cedar Technologies, Inc.: A case study in designing a high performance organization

Abstract

Mount Cedar Technologies, Inc. was founded in Los Angeles, California in 1995. It began as an importer and distributor of computer accessories, but by 2000 had evolved into an IT infrastructure integrator specializing in hardware and software products, storage and security solutions, and technical services to Enterprise, Small and Medium Businesses, and to Government, Educational, and Medical institutions. Its employees grew rapidly from 6 in 1995 to more than 170 employees in 2006. The company lacked an organizational structure to improve its operations' effectiveness. Additionally, there were complaints from employees who did not feel equitably treated, resulting in the loss of talented employees. Department managers acknowledged that they were very busy reacting to problems and customer issues, allowing them little time to coordinate and listen to their employees. Decision making was highly decentralized. This resulted in the loss of possible gains to be obtained from cooperation among other managers. The silo effect that resulted from this structure meant that departments were making decisions based on what was best for them. While John Curtis (CEO) had been instrumental in growing the organization, his present leadership style had become increasingly problematic to many including upper management. He liked to surprise people by showing up un-invited to meetings and all employees and managers were expected to provide off the cuff answers to questions he would throw at them during these visits. Managers were asked to focus mostly on financial measures. The culture was described by many people as a task oriented one that did not encourage risk taking or empowerment. Additionally, the organization was lagging in the areas of training and the advancement of women and minorities. Finally, upper management wanted to grow its business by adding new product offerings.