Conference 7.286::digital

1199.0. "Is This Digital? It Sure Sounds Familiar" by ICS::WEBER () Tue Sep 25 1990 09:38

As part of my MBA program we had a case study on National Westminster Bank
USA. As I read the case study I found overwhelming similarities between
the problems experienced at NWB and Digital. I thought I'd offer the problems
experienced and the solutions as food for discussion and ideas to change.

Maybe we'll even get lucky and Ken or Jack will see this.

Problems
---------

Reputed to have become bureaucratic, depersonalized, lacking in direction

Badly needed a CLEAR mission and a strong corporate culture

Its market needed to be defined more clearly

From the customer's perspective, working with the "Bank" needed to become
  simpler and more straightforward

Most decisions were made by committees that met almost continuously

The bureaucratic system allowed for little risk-taking and encouraged
  political behavior

There were attitude problems

Little kingdoms flourished

Poor communication between groups

Clerical employees [include individual contributors here] got no consideration 
  at all

Arriving late for meetings had become the standard because they never started
  on time anyway

In some area form was more important than substance


Solution
--------

[1] describe the values and direction he (new president) felt should be 
    operative

    Prepared a detailed statement of mission and strategy he hoped would be
    understandable and relevant to every level of the organization

    Identified a 2-phase transition strategy, intended to first install a solid
    infrastructure, then build a consistently profitable and competitive "bank"

    Set goals on return on assets [ROA] (what banks use..DEC would be ROI) and
    return on equity

[2] Develop a high-quality management team 
   
    Felt senior management needed more qualified people..insisting on first
    class people

    Identified the 50-60 key jobs in the organization and determine if the
    incumbent either is or can operate at a superior performance level

    - Be rigorous in setting goals and measuring results, and rewarding those
      who can do the job 

    Once 50-60 key jobs are filled by people who meet high standards of 
    performance as professionals and/or managers, they will serve as role models

    People brought in from the outside or moved into positions had to buy into
    the new value system

    - The internal process of looking for people found outstanding people 
      who'd gone unrecognized before

    People had to be team players who wanted to work in an atmosphere of 
    openness and caring..they looked primarily at values over skill

[3] Develop a customer orientation

    Got a good grip on the "bank's" strengths and weaknesses

    Found product deficiencies that put the "bank" a competitive disadvantages

    Became serious about developing a customer-oriented atmosphere
   
    - 3 members of Office of Chairman called on customers

There's much more in the case. Anyone wanting a copy of the case should
contact me at my node.

IN CONCLUSION
-------------

I want to share 2 quotes from the case which summarize where I'd like to see
Digital as a company head.

"Success stories began to replace complaints and the bank began to openly
celebrate these successes. When a deal was completed, a senior person would make
a point of saying, "Good job!" Wallace noted that people in the bank responded
immediately to the much-needed praise." 

"Anecdotes about successes increasingly replaced jokes about failure. Stories of
teamwork replaced some of the legends about the idiosyncrasies of individuals." 
    

re: .0
  <<	Maybe we'll even get lucky and Ken or Jack will see this.

So send it to them!

  Common Name:   KEN OLSEN
  Search Surname:  OLSEN  Search Given Name:  KEN,  KENNETH,  KENNETH H
  DTN:  223-2301  Intrnl Mail Addr:  MLO12-1/A50  Location:  MLO
  Org Unit:  OFFICE OF THE PRESIDENT

  Common Name:   JACK SMITH
  Search Surname:  SMITH  Search Given Name:  JACK,  JOHN,  JOHN F
  DTN:  223-2231  Intrnl Mail Addr:  MLO10-2/A54  Location:  MLO
  Org Unit:  PRODUCT OPERATIONS