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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.

In the mid-1985s, Oticon A/S, a Danish manufacturer of high-quality hearing aids, begins to experience significant losses. Lars Kolind, newly named CEO, introduces a vision for company headquarters that would entail a fundamental restructuring and transformation of the organization. Management and employees revolt and refuse a planned move of company headquarters. Should the CEO proceed with the proposed radical change, or has a recent turnaround been sufficient to restore Oticon to its No. 1 market position? In 1990, Kolind decides to abandon his plan to move Oticon 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, and within six months, profitability is restored. By 1993, the company enjoys its greatest profit since it was founded in 1904. Has Kolind achieved the competitive advantage he sought? How can it be sustained in the years to come? A 1994 EFMD award winner.