Organizational design can be complex, involving many different levers. But at its roots are a few fundamental formal structures or forms: functional, matrix, and divisional. This case tracks the early history of a (fictitious) start-up company in the software/mobile entertainment industry that rapidly expands and needs to consider the pros and cons of these various archetypes of formal structure.

Supplement to case IN1256. This case looks at how Lincoln Electric, the US-based company renowned for its compensation scheme, tried to implement its human resource policies globally and particularly in China.

Companies regularly face difficulties, but sometimes they have to face a "life threatening" crisis. Such events challenge leadership, not least because of their complexity - technological puzzles, loyalty and political maneuvering, branding and communication issues, to name a few. But they can also be are powerful integrative moments, and when "well navigated" they can become opportunities for wider company reforms.

Companies regularly face difficulties, but sometimes they have to face a "life threatening" crisis. Such events challenge leadership, not least because of their complexity - technological puzzles, loyalty and political maneuvering, branding and communication issues, to name a few. But they can also be are powerful integrative moments, and when "well navigated" they can become opportunities for wider company reforms.

Research on the variables that affect whether employees "get" and execute company strategy. The biggest factor is communication from top management all the way down through the organization.

This two-part case study describes the initial merger and cultural transformation of Aviva's Norwich Union (NUI) operation in the UK. It examines the complexities of integration that arose following a series of mergers that created NUI from 1998 to 2000. Case A describes how, after CGU Plc and Norwich Union joined forces to become NUI, top management's priority was to restore profits. Behind the scenes, however, the need for a whole new corporate culture was becoming increasingly imperative. It shows the tension between the need for immediate gains in efficiencies vs. longer-term approaches to the business that required careful nurturing and attention. It ends as the executive team's announcement of the new corporate philosophy - "to be a service provider with insurance at our core and care at our heart" - is greeted with complete disbelief by employees. Case B describes the actions taken to overcome their skepticism and successfully implement the new philosophy - actions that required significant change to the organisational culture.

This two-part case study describes the initial merger and cultural transformation of Aviva's Norwich Union (NUI) operation in the UK. It examines the complexities of integration that arose following a series of mergers that created NUI from 1998 to 2000. Case A describes how, after CGU Plc and Norwich Union joined forces to become NUI, top management's priority was to restore profits. Behind the scenes, however, the need for a whole new corporate culture was becoming increasingly imperative. It shows the tension between the need for immediate gains in efficiencies vs. longer-term approaches to the business that required careful nurturing and attention. It ends as the executive team's announcement of the new corporate philosophy - "to be a service provider with insurance at our core and care at our heart" - is greeted with complete disbelief by employees. Case B describes the actions taken to overcome their skepticism and successfully implement the new philosophy - actions that required significant change to the organisational culture.

Case B: An update bringing the reader current with developments in Booz Allen Hamilton¿s knowledge management strategy since Case A. Reinforces and deepens the point that knowledge management is a convergence of at least three factors: an appreciation of knowledge issues, the availability of sophisticated IT technology, and the managerial competence to suitably craft jobs and culture. This case takes the reader through the experiences of Booz-Allen & Hamilton in crafting their knowledge system and dealing with these factors.

Case B: This case picks up after the ousting of the former CEO of Bertelsmann, following his attempts to push the company forward in its exposure to the capital markets and the extent of corporate synergies. It shows how unforgiving the New Economy could be to dreams of internet driven synergies. It also shows how business unit profitability remains a key concern, and especially as economic conditions change, although ideas for greater cooperation are not lost but re-sized.

Case A: This case exposes the growing pains of an older, brick-and-mortar, company as it attempts to join the New Economy. The focus is on synergy; pushed by converging technologies and managed by a young and energetic leader, Bertelsmann attempts to overcome a history of decentralization to create a more integrated and Internet savvy corporation.

The promise of synergy is the prime rationale for the existence of the multibusiness corporation. Yet for most corporations, the "1-plus-1-equals-3" arithmetic of cross-business synergies doesn't add up. Companies that do achieve synergistic success use a corporate strategic process called coevolving; they routinely change the web of collaborative links among businesses to exploit fresh opportunities for synergies and drop deteriorating ones. The term coevolution originated in biology. It refers to the way two or more ecologically interdependent species become intertwined over time. As these species adapt to their environment, they also adapt to one another. Today's multibusiness companies need to take their cue from biology to survive: They should assume that links among businesses are temporary and that the number of connections--not just their content--matters. Rather than plan collaborative strategy from the top, as traditional companies do, corporate executives in coevolving companies should simply set the context and then let collaboration (and competition) emerge from business units. Incentives, too, are different than they are in traditional companies. Coevolving companies reward business units for individual performance, not for collaboration. So collaboration occurs only when two business-unit managers both believe that a link makes sense for their respective businesses, not because collaboration per se is useful. Managers in coevolving companies also need to recognize the importance of business systems that support the process: frequent data-focused meetings among business-unit leaders, external metrics to gauge individual business performance, and incentives that favor self-interest.

Case A: The authors believe that knowledge management is a convergence of at least three factors: an appreciation of knowledge issues, the availability of sophisticated IT technology, and the managerial competence to suitably craft jobs and culture. This case takes the reader through the experiences of Booz-Allen & Hamilton in crafting their knowledge system and dealing with these factors.

This case looks at how Lincoln Electric, the US-based company renowned for its compensation scheme, tried to implement its human resource policies globally and particularly in China.