procedure for full participation by the entire group

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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 • tell the summary of case 
 • problems in the case
 • organizational barriers
 • soultions to improve the communication and to remove the barriers
 • conclusion (how would you want the case to close)

nouo)
CASE FOR ANALYSIS
no h
Ned Wicker*
|ed Wicker is the manager of the Systems Proposal Department (SPD) in
Nthe Graubart Electronics Company. The department was organized a year
earlier to improve efforts by the company to gain new electronics systems busi-
ness. Its functions were:
1. to carefully review and evaluate all incoming bid specifications for new elec-
tronic systems required by aerospace and other users of such equipment;
2. then decide which of these (if any) would be potentially profitable, and
within both the technical and fabrication capabilities of Graubart Electron-
ics; and, finally,
mil
oleM no
v 3. prepare the necessary business proposals to win contracts from potential
customers.
Iaio piil
A graduate electronic engineer, Ned had been a senior proposal analyst with
Inr A another company when he was hired by Wanda Alinsky, the president of
Graubart, to set up the new department. This job coincided with his completion
of an MBA degree and it was his first managerial position. He personally re-
cruited and hired a diverse group of seven highly qualified engineers as sys-
tems proposal analysts, most of whom had prior experience with customer
requirements in the industry. Although the additional overhead cost would be
aỘ Substantial, the president, Wicker's boss, knew that mounting a bold strategy to
DMhot w acquire new business was necessary and she was enthusiastic about the new
group, especially Ned's aggressive approach in getting things organized and
ba oit i
underway.
Since the work of generating and submitting technical proposals to potential
customers can be both costly and time-consuming, Wicker knew the key to his
department's success would be the careful preliminary screening and selection
of bid possibilities on which proposals were to be prepared by the group. It was
largely for this reason that he built an elite group of professionals to work with
him, and he developed a procedure for full participation by the entire group in
the RFP (Request for Proposal) selection process.
The procedure called for all RFPS to be distributed and given preliminary
evaluation by individual analysts, who then made informal written "bid/no bid"
*This case was written by John W. Lewis I.
"In high technology industries such as electronic systems, skillful bidding is critical. If a com-
pany bids too high, it rarely gets the business; if it bids too low ("buying" the contract), it may
get bled by the job. Also, the kinds of work a company bids on and gets determines the shape
of the company's future.
bWhen an organization has a need for a device, a system, or a service from outside, it makes
this need known to potential suppliers, along with specifications, through a "Request for Pro-
posal," an invitation to bid for the contract work.
58
Transcribed Image Text:nouo) CASE FOR ANALYSIS no h Ned Wicker* |ed Wicker is the manager of the Systems Proposal Department (SPD) in Nthe Graubart Electronics Company. The department was organized a year earlier to improve efforts by the company to gain new electronics systems busi- ness. Its functions were: 1. to carefully review and evaluate all incoming bid specifications for new elec- tronic systems required by aerospace and other users of such equipment; 2. then decide which of these (if any) would be potentially profitable, and within both the technical and fabrication capabilities of Graubart Electron- ics; and, finally, mil oleM no v 3. prepare the necessary business proposals to win contracts from potential customers. Iaio piil A graduate electronic engineer, Ned had been a senior proposal analyst with Inr A another company when he was hired by Wanda Alinsky, the president of Graubart, to set up the new department. This job coincided with his completion of an MBA degree and it was his first managerial position. He personally re- cruited and hired a diverse group of seven highly qualified engineers as sys- tems proposal analysts, most of whom had prior experience with customer requirements in the industry. Although the additional overhead cost would be aỘ Substantial, the president, Wicker's boss, knew that mounting a bold strategy to DMhot w acquire new business was necessary and she was enthusiastic about the new group, especially Ned's aggressive approach in getting things organized and ba oit i underway. Since the work of generating and submitting technical proposals to potential customers can be both costly and time-consuming, Wicker knew the key to his department's success would be the careful preliminary screening and selection of bid possibilities on which proposals were to be prepared by the group. It was largely for this reason that he built an elite group of professionals to work with him, and he developed a procedure for full participation by the entire group in the RFP (Request for Proposal) selection process. The procedure called for all RFPS to be distributed and given preliminary evaluation by individual analysts, who then made informal written "bid/no bid" *This case was written by John W. Lewis I. "In high technology industries such as electronic systems, skillful bidding is critical. If a com- pany bids too high, it rarely gets the business; if it bids too low ("buying" the contract), it may get bled by the job. Also, the kinds of work a company bids on and gets determines the shape of the company's future. bWhen an organization has a need for a device, a system, or a service from outside, it makes this need known to potential suppliers, along with specifications, through a "Request for Pro- posal," an invitation to bid for the contract work. 58
recommendations to Wicker on Friday each week. Each Monday morning a
review meeting involving the entire group was held, at which time each analyst
presented the highlights of those proposals he or she had reviewed the pre-
ceding week and then led the group in discussing them. After all RFPS had been
reviewed in this way, which frequently involved vigorous debate within the
group, final selections for making proposals were reached by group consensus.
The RFP review and selection procedure seemed to work effectively for the
first three or four months, and three proposals submitted by the department
resulted in major new contracts for the company. Discussions in the Monday
morning review meetings about various RFPS were lively and involved t
group. Frequently the sessions ran over into the early afternoon. The variety of
individual backgrounds Ned had consciously selected provided the group with
a broad technical perspective for approaching its task. On only two occasions,
based on information he had gained from top management staff meetings, did
Ned find it necessary to overrule the group's decision. This was not done high-
handedly, however, and although a few of the analysts expressed some mild
resentment, Ned was able to lead the members to see the wisdom in his final
decision.
At the Monday meeting following the announcement of the second contract
won by the SPD group, the president paid a surprise visit just before lunch with
a bottle of champagne for Ned and the group to show her appreciation of their
efforts to date. Wicker made no secret of his pride in their having received this
recognition.
While Ned was very pleased with the quality of decisions the group made
during the first several weeks, two things began to bother him. Although the
number of proposals being reviewed remained about the same, each succes-
sive week the Monday morning meetings seemed to last longer and in his view
would soon consume the entire day, a luxury he felt the department could not
afford. He also had a nagging feeling that, as the department's manager, he
needed to be better prepared at the Monday meeting to discuss the merits of the
RFPS in order to assist the group in reaching the soundest decisions possible.
Since he received the written recommendations from each analyst on Fridays.
he decided to familiarize himself with them over the weekend and to arrive at his
own tentative conclusions and priorities for making bid/no bid decisions for each
RFP. His purpose was to have answers ready which might speed up group
decisions on Mondays, but to do so in a manner which would not allow his
opinions to directly influence members of the group.
Except for the fact he had less time for golf and weekend household chores,
this additional effort on Ned's part appeared to bear results. And although the
group's batting average with successful proposals declined in the second quar-
ter, Wicker felt better prepared on Monday morning, and, as he had hoped, the
meetings began to shorten with discussions of individual proposals crisp and
more to the point. This had the dual advantage of enabling the group to handle
more proposals in each meeting and also freed up valuable time for the analysts
to perform the ongoing work of the department. One unintended consequence
of his preparation, and this troubled him slightly, was that Ned became more
central to meeting discussions than he had been before.
Ned gradually became aware of a more disquieting symptom which began to
develop on Mondays. Week by week, discussions in the group became more
whole
60
PART 1/ UNDERSTANDING AND IMPROVING ORGANIZATIONAL COMMUNICATION
nc formal, recently becoming, at times, a dialogue between Ned and the analyst
mwho had done the preliminary evaluation. For reasons Wicker didn't understand,
several analysts began taking a less active part in discussions. The final blow
came this morning, when the meeting lasted barely forty-five minutes, with Ned
doing most of the talking. Since he considered this review meeting to be the
heart of the RFP selection process, Ned became alarmed. While he still had
complete confidence in the men and women he had selected, he felt more and
more that in the review meetings they were holding back their ideas and tech-
nical judgement, both of which he knew were crucial to arriving at the soundest
bid/no bid decisions.
Waiting for Wicker on his desk after today's meeting was a hastily written note
in a familiar hand:
"Grapevine has it we lost out on the Windsor contract. (Signed) Wanda"
As Ned mulled over this dismal news and the situation in SPD on his way to
lunch, the group analyst who had received the second highest performance
rating stopped him to say he was leaving to take a position elsewhere.
esc
Inarghsge
Case Questions
cou cou
1. What organizational barriers to communication flow have reduced the ana-
lysts' participation in the Monday morning meetings? Consider both barriers
to hierarchical and lateral flow and barriers related to communication load.
2. Describe Ned Wicker's group as a subculture within Graubart Electronics.
How does the subculture of the group constrain communication?
3. What implicit assumptions are being made by Ned and by the analysts that
may be impeding communication?
3. If you were in Ned Wicker's position, what would you do?
Transcribed Image Text:recommendations to Wicker on Friday each week. Each Monday morning a review meeting involving the entire group was held, at which time each analyst presented the highlights of those proposals he or she had reviewed the pre- ceding week and then led the group in discussing them. After all RFPS had been reviewed in this way, which frequently involved vigorous debate within the group, final selections for making proposals were reached by group consensus. The RFP review and selection procedure seemed to work effectively for the first three or four months, and three proposals submitted by the department resulted in major new contracts for the company. Discussions in the Monday morning review meetings about various RFPS were lively and involved t group. Frequently the sessions ran over into the early afternoon. The variety of individual backgrounds Ned had consciously selected provided the group with a broad technical perspective for approaching its task. On only two occasions, based on information he had gained from top management staff meetings, did Ned find it necessary to overrule the group's decision. This was not done high- handedly, however, and although a few of the analysts expressed some mild resentment, Ned was able to lead the members to see the wisdom in his final decision. At the Monday meeting following the announcement of the second contract won by the SPD group, the president paid a surprise visit just before lunch with a bottle of champagne for Ned and the group to show her appreciation of their efforts to date. Wicker made no secret of his pride in their having received this recognition. While Ned was very pleased with the quality of decisions the group made during the first several weeks, two things began to bother him. Although the number of proposals being reviewed remained about the same, each succes- sive week the Monday morning meetings seemed to last longer and in his view would soon consume the entire day, a luxury he felt the department could not afford. He also had a nagging feeling that, as the department's manager, he needed to be better prepared at the Monday meeting to discuss the merits of the RFPS in order to assist the group in reaching the soundest decisions possible. Since he received the written recommendations from each analyst on Fridays. he decided to familiarize himself with them over the weekend and to arrive at his own tentative conclusions and priorities for making bid/no bid decisions for each RFP. His purpose was to have answers ready which might speed up group decisions on Mondays, but to do so in a manner which would not allow his opinions to directly influence members of the group. Except for the fact he had less time for golf and weekend household chores, this additional effort on Ned's part appeared to bear results. And although the group's batting average with successful proposals declined in the second quar- ter, Wicker felt better prepared on Monday morning, and, as he had hoped, the meetings began to shorten with discussions of individual proposals crisp and more to the point. This had the dual advantage of enabling the group to handle more proposals in each meeting and also freed up valuable time for the analysts to perform the ongoing work of the department. One unintended consequence of his preparation, and this troubled him slightly, was that Ned became more central to meeting discussions than he had been before. Ned gradually became aware of a more disquieting symptom which began to develop on Mondays. Week by week, discussions in the group became more whole 60 PART 1/ UNDERSTANDING AND IMPROVING ORGANIZATIONAL COMMUNICATION nc formal, recently becoming, at times, a dialogue between Ned and the analyst mwho had done the preliminary evaluation. For reasons Wicker didn't understand, several analysts began taking a less active part in discussions. The final blow came this morning, when the meeting lasted barely forty-five minutes, with Ned doing most of the talking. Since he considered this review meeting to be the heart of the RFP selection process, Ned became alarmed. While he still had complete confidence in the men and women he had selected, he felt more and more that in the review meetings they were holding back their ideas and tech- nical judgement, both of which he knew were crucial to arriving at the soundest bid/no bid decisions. Waiting for Wicker on his desk after today's meeting was a hastily written note in a familiar hand: "Grapevine has it we lost out on the Windsor contract. (Signed) Wanda" As Ned mulled over this dismal news and the situation in SPD on his way to lunch, the group analyst who had received the second highest performance rating stopped him to say he was leaving to take a position elsewhere. esc Inarghsge Case Questions cou cou 1. What organizational barriers to communication flow have reduced the ana- lysts' participation in the Monday morning meetings? Consider both barriers to hierarchical and lateral flow and barriers related to communication load. 2. Describe Ned Wicker's group as a subculture within Graubart Electronics. How does the subculture of the group constrain communication? 3. What implicit assumptions are being made by Ned and by the analysts that may be impeding communication? 3. If you were in Ned Wicker's position, what would you do?
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