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Case from journal
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Reference no. NAC3413
Published by: NACRA - North American Case Research Association
Published in: "The Case Research Journal", 2014
Length: 20 pages
Data source: Field research

Abstract

Building Community at Terra Nova Consulting describes the actual challenges faced by an engineering and environmental services consulting firm that experienced a severe organisational crisis involving deep internal cultural divisions. The firm was founded upon certain core values and principles of collegiality, self-actualisation, employee ownership, and technical excellence but had gradually drifted away from these over time. Correspondingly, the junior professional staff perceived a fundamental disconnect between Terra Nova’s professed and actual cultures, viewing Terra Nova as having an authoritarian, task focused culture, geared towards serving the partners (as revealed by an Organisational Cultural Inventory.) Several challenges face the new president (Terry O’Reilly). First is the need to improve the firm’s project management procedures to maintain profitability. Second is the pending retirement of several long-serving senior partners, and potential impact upon client relations and organisational knowledge. Third is the lack of new investment in Terra Nova stock, increasing corporate financing costs and creating pressure to go public. Fourth is the cultural divide between the partners and junior professionals, and negative culture experienced by non-partners. Finally, is Terry’s ability to convince the partners to support his plans for change. Survival as an elite firm depends upon Terry’s ability to repair the cultural divide and convince the next generation of professionals to continue the founders’ vision of a collegial, elite, employee-owned firm, or define a new vision for the firm. organisational change, organisational culture, professional service firm.
Location:
Industry:
Other setting(s):
2008

About

Abstract

Building Community at Terra Nova Consulting describes the actual challenges faced by an engineering and environmental services consulting firm that experienced a severe organisational crisis involving deep internal cultural divisions. The firm was founded upon certain core values and principles of collegiality, self-actualisation, employee ownership, and technical excellence but had gradually drifted away from these over time. Correspondingly, the junior professional staff perceived a fundamental disconnect between Terra Nova’s professed and actual cultures, viewing Terra Nova as having an authoritarian, task focused culture, geared towards serving the partners (as revealed by an Organisational Cultural Inventory.) Several challenges face the new president (Terry O’Reilly). First is the need to improve the firm’s project management procedures to maintain profitability. Second is the pending retirement of several long-serving senior partners, and potential impact upon client relations and organisational knowledge. Third is the lack of new investment in Terra Nova stock, increasing corporate financing costs and creating pressure to go public. Fourth is the cultural divide between the partners and junior professionals, and negative culture experienced by non-partners. Finally, is Terry’s ability to convince the partners to support his plans for change. Survival as an elite firm depends upon Terry’s ability to repair the cultural divide and convince the next generation of professionals to continue the founders’ vision of a collegial, elite, employee-owned firm, or define a new vision for the firm. organisational change, organisational culture, professional service firm.

Settings

Location:
Industry:
Other setting(s):
2008

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