CASE STUDIES IN PROJECT MANAGEMENT SYSTEMS 1
AaronSide Goes to Teams
Dragan Z. Milosevic, Peerasit Patanakul, and Sabin Srivannaboon
I. PROBLEM & SOLUTION
Problem: The inability of AaronSide to complete the project within 8 months.
Solution: Retain and improve the use of the cross-functional approach.
II. EXECUTIVE SUMMARY
AaronSide, Inc. is a family-owned company that took 80 years to be successful and became
internationally recognized in its field of business. It belongs to the metal machining industry and
it possesses a competitive advantage which is their efficient and well-designed organization having
top quality departments from marketing, engineering up to manufacturing. However, as the
business grows, they encountered two unbeatable rivals within the industry from Europe that are
rapidly expanding in the U.S Market. Due to the strong market position of their rivals, they find it
difficult to compete with them since they fall to a close third in the market share. As a result of
their difficulty, they had to replace their management teams, install new equipment and reengineer
their company while using different management in the expectation that they could beat their
strong rivals. However, they failed to do so and as a result, they had to be acquired by a Swedish
company, Titan Corp. Due to the acquisition of AaronSide by Titan Corp., the management
organization was changed from functional to a matrix structure. The case study discussed and
showed how the company shifted from functional to matrix structure and shifted their approach to
product development from relay race approach to cross-functional team approach.
Going deeper into the case, AaronSide, being under Titan Corp. encountered problems
regarding their inability to complete their pilot project within 8 months due to the sudden changes
in approach for product development and the inability of the team members to decide on the
project. To address the problem and solve it, three alternatives were created that included
conducting research or study to find a new approach for product development, renewing the use
of the relay race approach, and retaining and improving the use of the cross-functional approach.
Upon using a criterion to determine the best solution, it turned out to be retaining and improving
the use of cross-functional approach since it could help in increasing creativity and problem
solving because of their composition. Also, the diversity can help broaden perspectives and
create synergy, where the interaction of the members creates a greater effect than the sum effects
of each member acting alone, leading to a high level of creativity. Moreover, it could lead to better
market responsiveness, better and timelier products, institutional learning and continuous
improvement, and happier, more involved customers and suppliers.
III. BRIEF HISTORY
AaronSide started as a family-owned company that operates in the metal machining
industry. The metal machining industry specializes in working with metals to create distinct parts,
assembly, or large-scale structures. The modern metalworking process can be regarded as forming,
cutting, or joining processes. Machine shop these days includes numerous machine tools that could
, CASE STUDIES IN PROJECT MANAGEMENT SYSTEMS 2
create a detailed and accurate workpiece. Moving forward, the company had an efficient and
functional organization that was perfected throughout the years of operation of the business
whereby their departments are of high quality since it showed excellence and competitiveness from
the engineering, manufacturing up to marketing department. It could be stated that these factors
were the company’s competitive advantage and made AaronSide successful. As to the approach
that they were using to make their operation successful, they have been using the relay race
approach. According to an article in Harvard Business Review1, a product development process
moved like a relay race, with one group of functional specialists passing the baton to the next
group. The project went sequentially from phase to phase: concept development, feasibility testing,
product design, development process, pilot production, and final production. Through the
application of this approach, their operation started with marketing which conducted market
research and then provided the engineering theme with the design that customers prefer for the
product which led to the final designs being transferred to manufacturing to produce high-quality
output. This resulted in smooth and efficient product development as compared to their
competitors having their engineering department achieving the fastest 16 - month lead time for a
new product development project. However, in this approach, departments’ heads were the only
ones allowed to communicate on behalf of their subordinates.
As the business grew, they were affected by the intense competition due to globalization.
AaronSide faced two critical opponents in the market from Europe. Thus, AaronSide encountered
these crucial challenges:
- The business was having difficulties competing with Europeans who are rich in resources and
have contact with new management from their parents.
- AaronSide was losing market share and slipped to a close third that was behind the Europeans
ranking in market share and in the 1990s the business was placed in a distant third.
- There was a replacement in various administrating teams and installation of new
manufacturing equipment.
- The company was extremely reengineered to get its work done.
- Different management was used to catch up with the leaders however, it did not bring positive
results.
- AaronSide became ripe for a sale and was acquired by Titan Corp. which was a Swedish
company.
- AaronSide shifted from using the relay race approach to a cross-functional approach in
performing their pilot project under Titan Corp. which was to develop a new mining vehicle
in eight months having the permanent members of each department participate in the project.
- When the deadline approached, it turned out the project was far from completion and it required
another eight months to complete the project.
- The presidents (VPs) who were heads of the departments directed the members of their team
to make no decisions, but to bring all necessary information to them and they, the VPs, would
make the decision.
- Thus, the main problem of this case is the inability of AaronSide to finish their pilot project
within 8 months.
AaronSide Goes to Teams
Dragan Z. Milosevic, Peerasit Patanakul, and Sabin Srivannaboon
I. PROBLEM & SOLUTION
Problem: The inability of AaronSide to complete the project within 8 months.
Solution: Retain and improve the use of the cross-functional approach.
II. EXECUTIVE SUMMARY
AaronSide, Inc. is a family-owned company that took 80 years to be successful and became
internationally recognized in its field of business. It belongs to the metal machining industry and
it possesses a competitive advantage which is their efficient and well-designed organization having
top quality departments from marketing, engineering up to manufacturing. However, as the
business grows, they encountered two unbeatable rivals within the industry from Europe that are
rapidly expanding in the U.S Market. Due to the strong market position of their rivals, they find it
difficult to compete with them since they fall to a close third in the market share. As a result of
their difficulty, they had to replace their management teams, install new equipment and reengineer
their company while using different management in the expectation that they could beat their
strong rivals. However, they failed to do so and as a result, they had to be acquired by a Swedish
company, Titan Corp. Due to the acquisition of AaronSide by Titan Corp., the management
organization was changed from functional to a matrix structure. The case study discussed and
showed how the company shifted from functional to matrix structure and shifted their approach to
product development from relay race approach to cross-functional team approach.
Going deeper into the case, AaronSide, being under Titan Corp. encountered problems
regarding their inability to complete their pilot project within 8 months due to the sudden changes
in approach for product development and the inability of the team members to decide on the
project. To address the problem and solve it, three alternatives were created that included
conducting research or study to find a new approach for product development, renewing the use
of the relay race approach, and retaining and improving the use of the cross-functional approach.
Upon using a criterion to determine the best solution, it turned out to be retaining and improving
the use of cross-functional approach since it could help in increasing creativity and problem
solving because of their composition. Also, the diversity can help broaden perspectives and
create synergy, where the interaction of the members creates a greater effect than the sum effects
of each member acting alone, leading to a high level of creativity. Moreover, it could lead to better
market responsiveness, better and timelier products, institutional learning and continuous
improvement, and happier, more involved customers and suppliers.
III. BRIEF HISTORY
AaronSide started as a family-owned company that operates in the metal machining
industry. The metal machining industry specializes in working with metals to create distinct parts,
assembly, or large-scale structures. The modern metalworking process can be regarded as forming,
cutting, or joining processes. Machine shop these days includes numerous machine tools that could
, CASE STUDIES IN PROJECT MANAGEMENT SYSTEMS 2
create a detailed and accurate workpiece. Moving forward, the company had an efficient and
functional organization that was perfected throughout the years of operation of the business
whereby their departments are of high quality since it showed excellence and competitiveness from
the engineering, manufacturing up to marketing department. It could be stated that these factors
were the company’s competitive advantage and made AaronSide successful. As to the approach
that they were using to make their operation successful, they have been using the relay race
approach. According to an article in Harvard Business Review1, a product development process
moved like a relay race, with one group of functional specialists passing the baton to the next
group. The project went sequentially from phase to phase: concept development, feasibility testing,
product design, development process, pilot production, and final production. Through the
application of this approach, their operation started with marketing which conducted market
research and then provided the engineering theme with the design that customers prefer for the
product which led to the final designs being transferred to manufacturing to produce high-quality
output. This resulted in smooth and efficient product development as compared to their
competitors having their engineering department achieving the fastest 16 - month lead time for a
new product development project. However, in this approach, departments’ heads were the only
ones allowed to communicate on behalf of their subordinates.
As the business grew, they were affected by the intense competition due to globalization.
AaronSide faced two critical opponents in the market from Europe. Thus, AaronSide encountered
these crucial challenges:
- The business was having difficulties competing with Europeans who are rich in resources and
have contact with new management from their parents.
- AaronSide was losing market share and slipped to a close third that was behind the Europeans
ranking in market share and in the 1990s the business was placed in a distant third.
- There was a replacement in various administrating teams and installation of new
manufacturing equipment.
- The company was extremely reengineered to get its work done.
- Different management was used to catch up with the leaders however, it did not bring positive
results.
- AaronSide became ripe for a sale and was acquired by Titan Corp. which was a Swedish
company.
- AaronSide shifted from using the relay race approach to a cross-functional approach in
performing their pilot project under Titan Corp. which was to develop a new mining vehicle
in eight months having the permanent members of each department participate in the project.
- When the deadline approached, it turned out the project was far from completion and it required
another eight months to complete the project.
- The presidents (VPs) who were heads of the departments directed the members of their team
to make no decisions, but to bring all necessary information to them and they, the VPs, would
make the decision.
- Thus, the main problem of this case is the inability of AaronSide to finish their pilot project
within 8 months.
