N12 Technologies, a nanotechnology specialized start-up formed in 2010 with a team of four,
expanded to 27 employees by 2016. Initially, the company had a very loose structure with limited
resources. The changes in the organization began in 2013 as the top management changed with Brad
Berkson as a CEO and Trip Flavin as a COO. In terms of horizontal expansion, N12 effectively hired three
new employees, which improved work flows and processes within the organization. As the company
started expanding vertically, the organization became functionally structured. With the hierarchy
introduced to N12, small and highly specialized teams were created, each managed by the team leader.
The new leaders were faced with the challenge of shifted responsibility from “doing the work to
managing the work”. According to the N12’s employees, the vertical expansion worsened the
communication within the company and resulted in inefficiencies.
The transition at N12 was driven by demand and the desire to fulfil the financial projections. The hire
of new employees was a necessary step for the company to grow, considering its limited resources.
Although the original team worked efficiently, they lacked a defined plan or timeline, which is why
Flavin introduced integration mechanisms such as weekly and daily meetings to discuss goals and
progress. Yet the shift to the formal structure occurred so quickly, that the original team was not
prepared to work in such a way. The main challenge for the original N12 members was the sudden
need to learn “how to navigate team dynamics and set team priorities”. Moreover, the shift to formal
structure disturbed the original company culture and affected the personal relationship between the
original team members.
My recommendation would be for Flavin and Berkson to transform the current N12’s functional
structure into a divisional structure. Since N12 decided to focus on four key markets (consumers,
automotive, wind energy and aerospace), there could be a separate division for each of these
segments. Doing so would allow for a better communication between the team leaders rather than
just within teams. Additionally, with each division concentrating on a specific product, the company
could be more efficient and reduce production times.
Sources:
Berstein, E., & Noharia, N. (2016, May 23). Note on Organizational Structure. Harvard Business School,
pp. 1-14.
Garvin, D. A., & Sesia, A. (2016, March 23). N12 Technologies: Building an Organization and Building a
Business.
expanded to 27 employees by 2016. Initially, the company had a very loose structure with limited
resources. The changes in the organization began in 2013 as the top management changed with Brad
Berkson as a CEO and Trip Flavin as a COO. In terms of horizontal expansion, N12 effectively hired three
new employees, which improved work flows and processes within the organization. As the company
started expanding vertically, the organization became functionally structured. With the hierarchy
introduced to N12, small and highly specialized teams were created, each managed by the team leader.
The new leaders were faced with the challenge of shifted responsibility from “doing the work to
managing the work”. According to the N12’s employees, the vertical expansion worsened the
communication within the company and resulted in inefficiencies.
The transition at N12 was driven by demand and the desire to fulfil the financial projections. The hire
of new employees was a necessary step for the company to grow, considering its limited resources.
Although the original team worked efficiently, they lacked a defined plan or timeline, which is why
Flavin introduced integration mechanisms such as weekly and daily meetings to discuss goals and
progress. Yet the shift to the formal structure occurred so quickly, that the original team was not
prepared to work in such a way. The main challenge for the original N12 members was the sudden
need to learn “how to navigate team dynamics and set team priorities”. Moreover, the shift to formal
structure disturbed the original company culture and affected the personal relationship between the
original team members.
My recommendation would be for Flavin and Berkson to transform the current N12’s functional
structure into a divisional structure. Since N12 decided to focus on four key markets (consumers,
automotive, wind energy and aerospace), there could be a separate division for each of these
segments. Doing so would allow for a better communication between the team leaders rather than
just within teams. Additionally, with each division concentrating on a specific product, the company
could be more efficient and reduce production times.
Sources:
Berstein, E., & Noharia, N. (2016, May 23). Note on Organizational Structure. Harvard Business School,
pp. 1-14.
Garvin, D. A., & Sesia, A. (2016, March 23). N12 Technologies: Building an Organization and Building a
Business.
