To: Kelly Johnston, CEO Kodak
From: Head of Marketing Operations, Kodak
In Reference To: A Kodak instant; drawing the attention to major architectural defects within our company, specifically the MAPP prepare, as well as solutions for more environmentally friendly options intended for future set ups.
It includes come to my focus that there are a lot of major defects lying within our organizational structures. These flaws lay in the foundation of Kodak`s organization composition and so we all cannot move forward until these types of basic mistakes are remedied. We are seeking companywide success and need to act as a firm to achieve this.
Through its record we`ve skilled dramatic financial upturns and downturns. Our company is currently trying to pull ourself out of bankruptcy and i also believe the best way to do so is through within our organizational architecture. These kinds of changes by itself will not result in success, even as still encounter problems inside the digital technology location however they will certainly contribute positively. This means making changes in performance-evaluation methods, praise systems and responsibility assignments. Our previous attempts; decentralization in 1984 and the MAPP plan in 1987 have been widely not successful. This means we have to look tightly at what went wrong within these plans, and restructure accordingly.
Now, I'd like to specify what the flaws had been in our initial organization restructure plans. 1987 saw Kodak change the projects of decision rights within our company. Clearly between 1983 and 1987, Kodak management realized the advantages of more modify, and we remodeled the management's evaluation and reward devices with the MAPP program. I think we by Kodak took two out of housing towards a complete and successful organizational restructuring. However the final step must be taken; inspecting the outcomes of the MAPP restructuring and changing the plan accordingly. I believe that the MAPP plan was unsuccessful since it targeted Kodak management simply. If we want companywide success, we have to create a strategy that involves the entire company.
Loosely MAPP designed to increase incentive to innovate and produce through a pay out cut and variable reward. However , as we know this would not have popular effects yet I do not believe that there were not results seen inside Kodak's supervision. I'm sure if we look tightly; Kodak's administration did boost innovation and production however maybe these results didn't trickle into the lower position employees. I think that we must approach most employees at Kodak if we like to see Kodak crawl away of it is hole.
With MAPP the bottom salary of management personnel was minimize by 10 % and that reduction was replace by a adjustable bonus. We must analyze how management responded to this decision. We in that case must thoroughly construct identical plans for any levels of personnel вЂ“ naturally these ideas will change for each every level.
I really believe that if we approach all employees inside our company with the new plans, we will certainly survive and prosper in today`s photo technology sector. Following this idiota is a great analysis of Kodak's company architecture encounters of late.
Primary Motivations to get Restructuring
A few of the factors which usually originally determined our company to change its company architecture consist of economic downturn, lack of profit and changes in the industry environment that we had to adjust. Essentially we dropped from our placement as head in the photography production marketplace. We can attribute this to our slow advancement in regards to digital photograph technology. Seeing that we were founded in 1888 the only significant competitor we've faced before the early 1990's was Japanese people company Fuji Films. In fact , our own research workers developed the first digital camera itself in 1975, even though we decided to go with not to mass produce this at the time. We were essentially our personal worst enemy.
In the nineties the photo taking market moved towards digital technology and we had to diversify. I was slow to...