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Revolution at Oticon A/S (B): Acquiring Change Competence in a "Spaghetti" Organization

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In 1990, Lars Kolind decides to abandon his plan to move Oticon A/S headquarters, but insists on the pursuit of his vision for what he now calls the spaghetti organization--so named because of its relative lack of structure. Shortly after implementation, the company suffers further financial losses. A new managing director, brought in by Kolind, begins to address the financial dynamics of Oticon A/S. Within six months, profitability is restored, and by 1993, the company enjoys its greatest profit since its founding in 1904. Has Kolind achieved the competitive advantage he sought with this new organization? Can the spectacular financial success be attributed to the spaghetti organization? How can the new organization be sustained in the years to come? A 1994 EFMD award winner.
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