Discussion Questions:
1.
a. Was O.M. Scott a better-managed company as part of ITT or after its buyout? Yes.
Indeed, Scott was a better-managed company after the buyout for mainly the shift in
organizational structure.
b. What criteria did you use in making your assessment? The Criteria that I used to make
my assessment was organizational structure types (functional, divisional, matrix).
Clearly, Scott’s organizational structure shifted from matrix to functional after it had
been sold.
2.
a. What are the important characteristics of the "rules of the game" at Scott before and after
the buyout?
Before: Rules of the game were very centralized structure where almost senior managers
had a great lack of autonomy and were required to obtain approval upon taking some
action.
After: Rules of the games shifted dramatically to a more decentralized structure where
senior and low level managers were given some level of authority for decision making
when taking certain actions allowing for more autonomy, flexibility and incentives for
quality performance
b. How did changes in the "rules of the game" affect behavior? It affected the behavior in
terms of motivation. The management Bonus Program seemed to be a great initiative to
affect behavior by motivating employees for excellent performance.
3.
a. What was considered good performance at Scott before and after the sale (for the
organization as a whole and for individuals in the organization)?
i. For the organization as a whole, I believe it did well on inventories &
Production
ii. For the individual, I would assume employee loyalty as employees
b. Why do you think performance standards changed? I believe it changed because of
incentives and performance evaluation.
4. What, if anything, did Clayton & Dubilier contribute to the Scott organization?
a. Adopted Decentralized organizational structure
b. Monitoring & ensuring companies performance by establishing the Board of Directors
and Executive Committee
c. Clearly defined industry in which to operate in and clearly identify competitors
d. Restructured capital
e. Successfully implemented organizational cultural change
5. What, if anything, did Scott lose by severing its ties with ITT? In my opinion, Scott lost nothing
by severing its ties with ITT.
6. If you were Hank Timnick would you be worried about whether you had adequate control over
Scott’s managers? ,,,, As an advisor & consultant, I will not be worried about having adequate
control over Scott’s managers because my main job is to provide recommendations to managers,
not to manage them.
7. What do you think Clayton & Dubilier’s plans are for Scott’s future?
1.
a. Was O.M. Scott a better-managed company as part of ITT or after its buyout? Yes.
Indeed, Scott was a better-managed company after the buyout for mainly the shift in
organizational structure.
b. What criteria did you use in making your assessment? The Criteria that I used to make
my assessment was organizational structure types (functional, divisional, matrix).
Clearly, Scott’s organizational structure shifted from matrix to functional after it had
been sold.
2.
a. What are the important characteristics of the "rules of the game" at Scott before and after
the buyout?
Before: Rules of the game were very centralized structure where almost senior managers
had a great lack of autonomy and were required to obtain approval upon taking some
action.
After: Rules of the games shifted dramatically to a more decentralized structure where
senior and low level managers were given some level of authority for decision making
when taking certain actions allowing for more autonomy, flexibility and incentives for
quality performance
b. How did changes in the "rules of the game" affect behavior? It affected the behavior in
terms of motivation. The management Bonus Program seemed to be a great initiative to
affect behavior by motivating employees for excellent performance.
3.
a. What was considered good performance at Scott before and after the sale (for the
organization as a whole and for individuals in the organization)?
i. For the organization as a whole, I believe it did well on inventories &
Production
ii. For the individual, I would assume employee loyalty as employees
b. Why do you think performance standards changed? I believe it changed because of
incentives and performance evaluation.
4. What, if anything, did Clayton & Dubilier contribute to the Scott organization?
a. Adopted Decentralized organizational structure
b. Monitoring & ensuring companies performance by establishing the Board of Directors
and Executive Committee
c. Clearly defined industry in which to operate in and clearly identify competitors
d. Restructured capital
e. Successfully implemented organizational cultural change
5. What, if anything, did Scott lose by severing its ties with ITT? In my opinion, Scott lost nothing
by severing its ties with ITT.
6. If you were Hank Timnick would you be worried about whether you had adequate control over
Scott’s managers? ,,,, As an advisor & consultant, I will not be worried about having adequate
control over Scott’s managers because my main job is to provide recommendations to managers,
not to manage them.
7. What do you think Clayton & Dubilier’s plans are for Scott’s future?
