Gtsi Corporation Case Study

It is very clear that the structure of the firm has lead to many issues within the organization ‘and was the cause of a lot of bickering and internal fighting’. The right structure should provide employees with information; enable coordination and give incentives- removing or increasing flexibility at work. However, in GTSI, the structure limited communication between departments which resulted in a lack of shared information and knowledge throughout the firm which resulted in inefficient processes.

Most managers believed that change was needed within the firm. However, there were many competing views between operations managers and top management as to what should change and the implementation procedures that should occur. Some operational managers believed that there should be a complete change in business model from a reseller business model to a product solutions and service organization business model. However, top management implemented the ‘007’strategy which after its failure, Friedlander described as a goal rather than a strategic plan. Top management also decided upon the launch of a new ERP system even after it was not being successfully adopted during its trial period. According to Bob Mitchell this project failed because it was run as an IT project and not a corporate project. Ultimately, the company failed to develop a formal strategic plan and vision which would help top manager’s and operational manager’s determine where they should be going and ensure that their objectives were aligned. Without this strategic plan the firm’s managers and employees operated in a chaotic environment, without direction and misaligned objectives resulting in failures and finger pointing.

3. Our recommendations

It is recognized by the firm’s new CEO that a simple coherent strategy and vision needs to be determined. This should allow for a clear focus and direction for people within the firm and to align

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