“Well, I absolutely do not” Lindstrummer began. “Everybody just admitted that ‘Asset Management’ was out-performing both Project and Strategic Management, and Raspberry wants to sacrifice that in an attempt to fix what…” Lindstrummer paused, and looking at Jane and Randy, continued “…no offence, Jane and Randy, these others got wrong? I’m not buying it.”
A heavy silence filled the room. Daystrom sighed.
“We seem to have arrived at an inflection point, with two strongly divergent strategies. I’m not really seeing an in-between technical approach here.”
The room again fell silent. Perhaps the others were picking up on some indicators from Daystrom that it was time to stop talking, but I possessed no such insight.
“You’ll have to forgive me” I started, “but I’m given towards a bias for action.”
At the words “bias for action,” Daystrom’s attention was suddenly focused on me.
“If you’re looking for a single-axis litmus test for which approach is most likely to succeed, I would point to the book In Search of Excellence, particularly its highlight of the characteristic of ‘staying close to the customer.’”
“Yes, I remember that part of the book.” Daystrom acknowledged. Jane shot me a knowing glance, realizing in an instant why I had commented on Peters’ and Waterman’s classic being on her bookcase.
“I really liked that book, and actually bought copies for all of my senior management” he continued.
“Again, all due respect Lee, but that book was published in 1982.” Lindstrummer objected.
“True, but I maintain that many of its precepts are certainly valid today, and in our circumstances in particular.”
“Well, okay, I get that” Lindstrummer continued. “But, if that’s the binary we’re using for tech approach evaluation, and Jane and Randy represent the ‘close to the customer’ camp, that would put me in the ‘close to the shareholders’ corner.”
“That follows” Daystrom observed.
“Lee, customers can’t fire you. Shareholders can.”
“Mmmmmm…..” I weighed in. “Customers can’t fire a CEO as directly or dramatically as the Chairman of the Board can, but customers do, in fact, ultimately decide the fate of any commercial organization.” Jane, sensing the decision-tide was turning in favor of her beleaguered PMO, entered the discussion with more confidence than I had previously seen in her.
“I’d like to add that much of this discussion has been predicated on this notion that if Randy and I get our preferences chosen, that it would somehow be ultimately harmful to the Asset Management position, kind of a win/lose proposition, as much as I hate that cliché. But if we can convert two of our fab units over to using the new tech while keeping our existing customers happy, it will give Randy an advantage in attracting new ones. We would then be in a position, finally, to compete with Monolithic in per-unit costs once those fab units are back up and running. This could easily turn into a win-win-win situation.”
“She’s right, Lee” Randy added. “One more thing that should be pointed out: we could see more of these kinds of technical advances in the future, even though the one we’re discussing was rather unexpected. But this could also easily be a once-in-a-blue-moon advance, and, if we don’t take advantage of it, we would be committing a management blunder. As it is right now, Monolithic is positioned to win this industry’s market share long-term. This could be the very game-changing opportunity we’ve been looking for.”
Daystrom suddenly appeared both resolved and relieved.
“Alright, everybody, let’s do this. Joel, have the Ops Managers for Fabs One and Two prepare to convert to the machines they need to work with the new tech. Fabs Three and Four can go to double-shifts for both the employees’ coverage and to try and maintain the current project and product load. Jane, have your schedulers reset the Project work at Fabs One and Two over to Three and Four. Randy, prepare a new campaign, targeting the customers we’ve been losing to Monolithic based on our inability to compete with them on unit costs. Joel, let me know how much of this we can fund ourselves, and whether or not I need to release more commercial paper, or go to the bankers. Suzanne, I want you to work with Quinn to coordinate the issues and performance from Project, Strategic, and Asset Management, and have Raspberry show you how to maintain the Corner Cube model. And I …”
Daystrom paused, as if being suddenly reminded of an unpleasant task.
“…and I will prepare some slides for the next shareholder meeting. Any questions?”
“Yeah, lots!” Lindstrummer began.
“Not about the decision, Joel. I’ve made up my mind. I expect you, and everyone else in this room, to do your best to make this transition work. Am I clear?”
“Yes, sir” was the unanimous response, albeit with more enthusiasm from some than others.
As the conference room cleared out, Lindstrummer walked up to me.
“If this goes sideways, Raspberry, I’m blaming you.”
“Fair enough. But, if it succeeds, I’m going to make sure people know that it was due to Jane’s ability to generate the information stream that clarified the decision to the point that Daystrom was confident making it.”
Lindstrummer’s eyes narrowed, and then he turned and strode from the room.
“I’ll bet he’s a blast at birthday parties” Randy quipped.
“It’s all good. He’s simply reflecting his education. Virtually all business schools teach that ‘maximize shareholder wealth’ stuff, and tend to reflexively reject any other approach.”
“To quote Star Trek’s Montgomery Scott, ‘the haggis is in the fire for sure.’” Oscar chimed in, which created a much-needed laugh from the people remaining in the room.
“Sounds like everybody’s work is cut out for them.”
“Indeed” Jane replied. “We can take things from here, but I’d really appreciate it if you can come back in a few months’ time.”
“Sure. Just have Oscar call me when you’re ready.”
Next week: The conclusion of The Path To The Corner Cube - A Project Management Fable