The Santa Rosa Systems Division of Hewlett-Packard (SRSD) was created in 1992 to target new systems integration opportunities in the growing communication business sector. By 1994 SRSD faced fundamental challenges that threatened its success and that of its leadership team. Organizational members perceived the following organizational issues.
Two competing strategies that were threatening to “tear the organization apart.”
Coordination—“a cold war”—problems between two functions competing for common engineering resources. These problems were caused by a functional structure with very poorly designed cross-functional business teams.
Cross-functional teams that were not effectively led or managed and did not produce ...