Applied Systems Group Ekaterina Gritskevich Daniil Morozov Yulia

Applied Systems Group Ekaterina Gritskevich, Daniil Morozov, Yulia Shapilova, Yulia Sokolkina

Agenda 1. History of Applied Systems Group 2. Correspondence of current and historical structures with overall strategy 3. Evaluation of current structure 4. Reasons of budget overrun of the Avionics 2000 team 5. What St. Miller (CEO) needs to know before making decisions about the future of Avionics 2000 6. Pressures on CEO to resolve budget problem 7. Action plan

History of Applied Systems Group Spar Aerospace Ltd. Space Communications Aviation&Defence Spar Aviation Services Applied System Group (ASG) 1990 Informatics Spar Applied Systems Leigh Instruments Ltd. (bankruptcy)

Applied Systems Group (ASG) • • 340 employees Non-unionized area of Spar Product: military and space specifications Customers: Canada’s Department of National Defense, the U. S. Navy and Coast Guard, Smith Industries, Hughes Aircraft Company, Mc. Donnell Douglas Aerospace, Eastman Kodak. .

CEO mandate Jason Rigney (1990 -92) To orchestrate the Spar Defense and Leigh Instruments merger Or, if that failing, to reorganize the work into other Spar divisions Stephen Miller (since 1992) Necessity of generating new business. Competition from larger-scale, highly flexible and vertically integrated companies.

Product oriented Precise position descriptions Each program at ASG led by program manager Culture of teamwork, open communication Make money for more, than 6 months in a row Long-term strategy Base on business processes Current Hierarchical Strategic plan Old Structures Skill clusters Process-focused Customer satisfaction Employees involved in Getting, Performing and Supporting business Coaching inside clusters No position descriptions IPTs

New concept (IPTs) • Work with Market Development and Sales and Marketing clusters • Estimate project requirements, bid new contracts and manufacture unique products • Membership is fluid • Responsibility for repeat business, new business and new product development • Everyone involved=>reduce errors • Team skills development program

Evaluation of the current structure Advantages • Closer relationships with consumers • Faster problem-solving • Existence of various skill clusters • Coaching and mentoring instead of directing • More flexibility • More teamwork • Improved culture • Orientation on the long-term strategy Disadvantages • Ambiguity as a result of job description and job titles disappearance • Employees uncertainty about their ultimate responsibility

Reasons of budget overrun • Organizational changes are conducted after the Avionics 2000 project started; • The change from a program manager structure to ITPs leads to misconceptions among project group members; • Employees work additional time and what is more have the organizational trainings; • Sophisticated product needs new international regulations; • Poor work of Steering Team (lack of control over project). Project group didn’t make equivalent changes to the existing budget and schedule

Actions before decision on the Avionics 2000 future • Employees’ understanding of the new way group project works; • The concrete role of each group member and their close interactions; • Determination of the reasons why the budget was overrun; • New budget and schedule setting; • Steering Team’s strict control on well-timed plan performance. Project group should accept new organizational changes and be ready to work in modified conditions

If we were a St. Miller (CEO), we would… Continue the project • Unique product • Dependence of other projects in terms of investments • Huge amount of money has been already spent

Action plan Reexamination of the budget in agreement with new regulations Survey to employees (job satisfaction, career perspectives, effectiveness of a new structure, worries and suggestions) Observation of employees ( level of suitability to the Avionics 2000, employees replacement if needed) Teambuilding and trainings for team players and representatives from Steering teem, which have to work in conjunction CEO meeting with employees (orientation on the short-term goals (project completion), clear set of actions, deadlines, budget limits)

Action plan (timeline) Action Week after Mike’s presentation 1 1. Reexamination of the budget 2. Preparation of survey for employees 3. Conduction of survey 4. Observation of employees performance 5. Analysis of data from survey and observation 6. Preparation of teambuilding /trainings 7. Teambuilding /trainings 8. CEO meeting with employees 2 3 4 5

Learning outcomes • The importance of consistent organizational changes and its influence on whole company; • The necessity of all employees’ implication into participation of organizational modification; • All workers have to understand their sphere of responsibilities and realize their role in the company; • Planning of changing and further actions is significant; • Company should realize its goals in short and long perspectives.