N12 CASE ANALYSIS

• How effectively did the company manage the transition from four to 27 employees?

I believe it managed it well considering the exponential growth it had. Most of the qualms
expressed by the original four employees could be attributed to growing pains, in the sense that
for the line of business they were in and the type of growth that was required of them, it was
only natural that they face these challenges.

• Do you think that Flavin went too fast or too slow in introducing formal structure at
N12?

I think Flavin was driven by demand and the requirements placed upon the company by its
growth. N12 became a “buttoned-up” company only as a way to stay alive, since its operation
could not handle, as a way of comparison, a model similar to that of Valve where creativity
drove product. In N12’s case, the product drives the production and operation, and considering
they were having to develop new machinery to exponentially increase output, it was only
natural that the company would formalize itself with every passing itineration. More employees
necessarily means more structure, or else, chaos.

• What do Flavin and Berkson need to do next from an organizational perspective?

It is my consideration that they should move onto a Matrix Structure so as to cut down on the
lack of information between departments and divisions as well as provide better integration for
the company. This would answer much of the original four’s problems with the company’s
current situation.