Student No.

: 042101376 Name: TRAN Quynh Le Phuong

Celeritas
a. Organization Analysis: In your analysis of the case, give your overall assessment of Celeritas as an
organization. Think about questions like: How would you characterize Celeritas as a company? Is it an
effective company? What is working or not working? Strengths and weaknesses as a company? What
and/or who do you see as its central challenges or problems? What is the cause(s) of these problems?
How effective has Reese been?
According to information provided in the first couple pages, “Celeritas” is a leading firm in the network optimization
industry. To characterize it, although high profits are and can be obtained, the company is in a fast-growing industry
that constant development is required in order to gain competitive advantages among other companies.
Regarding its effectiveness, the company used to be very effective. However, as of now, although the company’s
revenue dropped to $280 million (2011), the fact that Celeritas is still “one of the six largest industry players”
indicates that it can still be considered effective. However, it is also notable that the company is slowing down and
even falling behind other leading firms in terms of new product development and sales. Were current problems not
recognized and solved, the company could highly likely become an ineffective company.
There are good sides (what is working) and bad sides (what is not working) during when Reese is working with
Celeritas. The fact that the SVPs and the Boyer finally got to have honest discussions with others could indicate a
positive outlook in which everyone is finally getting to the root of the problems and being honest with each other.
Before, regardless of their disagreements with one another, they did not choose to discuss it directly with the person
involved. This, undoubtedly, will not generate desirable cooperation among SVPs.
However, what is not working, in my opinion, is that although there are honest discussions among them, not everyone
is willing to change their styles in order to cooperate well with each other. However, the situation is starting to change
after the second off-site meeting.
Another not working area is that in the past, the company was lacking in sufficient teambuilding events (only one
event was recorded among a year and a half).
To analyze the strengths and weaknesses of the company, a SWOT analysis method approach (illustrated below) is
chosen for clarity:
Strengths Weaknesses
- Existing reputation with already existing - Slowness in making new innovations making
customer base the company falling behind other newly
- High quality products developed start-up businesses
- Strong workforce with high-skilled employees - Higher price (due to high-quality products)
with good educational background - Decreasing sales
- Relatively strong financial situation (annual - Dependency on external environments
revenue growth remained above 20% since
2008)
Carla Reese, the HR Advisor hired by the CEO Phillip Boyer, pointed out four main causes of the slowing
development of the company. Those include lack of trust and communication among SVPs and CEO, inconsistent
decisions making, unclarity among SVPs about the company’s goals and priorities, and insufficient cooperation
among different divisions in the company. However, in my perspectives, beside the abovementioned problems, the
CEO himself is also central problems that are affecting the company adversely. His current approach in the decision-
making process could result in the inconsideration of whether divisions can successfully and effectively carry out the
plan. Detailed explanations should be illustrated using the following table:
Problem The reasons
Lack of trust High revenues accumulated during the first few
and years have enabled the company to hire personnel
communication (both ordinary employees and SVPs who are in
among SVPs charge of a division). However, as it grew so fast
and CEO that without proper management, dysfunction of a
team (miscommunication and distrust) starts to get
in.
Inconsistent Starting from when Celeritas was established, the 3
decision co-founders made all the decisions. So, when the
making caused other two left, Boyer is left to be the sole decision-
by the CEO make in the company. This clearly should not be
the type of decision-making process in such an
industry that requires innovation and creativity as
technology industry. This resulted in SVPs feeling
uncertain about what decisions are important and
not important.
Unclarity about Because the current organizational culture is more
the company’s of a monarchy side in which the CEO (also the
goals and President) makes all of the statements without
priorities clearly communicating the goals of those
statements and how it can contribute to the
development of the company. Also, the fact that
every person can have different mindsets and ways
of thinking, a lack of transparent, straightforward
interpretation is also a cause of the problem
Insufficient Because of the distrust and miscommunication
cooperation discussed above, SVPs are reluctant to have
among different frequent, honest conversations to one another to be
divisions transparent about what their divisions can do and
what they cannot do. Each of the SVP are self-
confident that their divisions are not having any
problems.
CEO Phillip Boyer’s managerial styles can be one of the roots
Boyer (central of the problems mentioned above:
problem) + Boyer tends to make quick decisions without
careful discussion with the team. This is because of
his approach of “solicit information but not
Existing behaviors indicating the
problem
Personal animosity toward Dave Lloyd
was discussed privately with the CEO
instead of directly addressing at Dave.
No discussion among divisions before
making any promises with shareholders
(here, it is the case of the customers)
Currently, some of the decisions are
made during one-to-one meeting
feeling of unfairness among SVPs
Reverse decisions  unclarity about the
mission of the company among SVPs
and also put SVPs in a difficult situation
with their subordinates
Although the company’s mission
statements are revised each year, it is led
to have many different interpretations.
Although the goals are set, smaller goals
or ways in which the biggest goals are
established are not being stated directly
to the SVPs
The Sales and Marketing Division made
promises about new innovations with the
customers; however, the Engineering
Division is not able to fulfill those
promises according to deadlines
Examples of his problems are given in
line with the problem mentioned in the
left:
+ Decisions that are made during one-to-
one meeting and even worse, can easily
 opinions from the team” be reversed after that.
+ Failure to communicate effectively and withhold
important information due to his belief that “I don’t + Reluctant to point out weaknesses in
believe I have to explain my decisions to anyone Boyer’s decision-making process or
but the Board of Directors.”, "I'm the only one who mission statements because they feel that
has the whole picture, so I'm the one who has to the situation cannot be changed. “Few of
make all of the major decisions” us are ever consulted about major
decisions that will affect our areas, and
+ Fail to provide clear direction to his team we are never involved in strategic
+ This is not exactly Boyer’s problem but because planning”
he gained little success with an HR consultant + Unclarity among SVPs about what are
before, this resulted in a mistrust among VP and the major goals and how they can
thus they remain skepticism contribute.

Reese has been effective in identifying the existing problems of the company straightforward. Whenever there are
problems, the solutions must thus be formed to deal with the problems. Reese has also given practical
recommendations to the each of the executives for them to change.

b. Recommendations: Based on your analysis, what do you think could have/should have been done to
improve Celeritas` situation? Also, what should be done now to help improve Celeritas?
These recommendations are given with my perspective that SPVs should have also been considered as managers of
ordinary employees and the President is the manager of all five SPVs. As a result, every manager should have made
necessary changes in their managerial styles for the benefits of the company as a whole.
- First, the SPVs could have worked together more in unity and be more understanding of the hardships of other
divisions. Regarding the Sales and Marketing SPV (Mr. Dave Lloyd), he should have carried out discussions
with Engineering & CTO division before making any promises to customers. Dave should also have
undergone discussions with more neutral, calm manners instead of raising his usual voice. During the off-site
SVP meeting, Dave could even have admitted some of his weaknesses and kindly requested others’ help in
changing himself. In this way, other SVPs would not have been so irritated and can even help him in the
future. The SVPs should have also made use of weekly meetings to directly discuss about existing problems
instead of private meetings with the CEO.
- In terms of the CEO, he should not have made any changes just only according to the private meetings that he
had with any of the SPV. He should have been more decisive and fixed whenever a decision has already been
made, and he should have also been the one revolving the existing misunderstanding and miscommunication
among SPVs instead of listening to them privately. According to Management by Objectives (MBO) theory, it
is essential that Boyer be transparent about the goals of the company. Although the mission statements are
said to be recalled every year, Boyer has left them to different interpretations. He should have made them
clearer, allowed for other SVPs to discuss and make necessary comments, and made sure that they are
following the same path.
Now, continuing the case study that has been written, in order to help improve Celeritas, I believe some of the
following suggestions can be done:
- Reconsider the organizational culture: A more flexible approach in which differences are encouraged and all
employees should be welcome to contribute their ideas (or opinions) and learn, express and improve from them.
As an innovation-based company as Celeritas, the more flexible it gives to the employees, the more innovations
and creative ideas could result. As suggested, Boyer should also conduct appraisals among his teams. That is, he
needs to energize his teams, make suitable praises when the teams achieve milestones or acknowledge their
constant efforts.
- Encourage employees’ participation in the decision-making process: As discussed before, Boyer tends to be
the only person in charge of decision making. However, Celeritas needs to now have another environment in
which the Executives can also contribute to that process. This would increase the employees’ motivation and
sense of loyalty to the company, and at the same time, strengthen their sense of contributions to the company.
- Establish business mindset (not only the President/CEO or the Marketing and Sales SPV but all other
SVPs): The company now has gone over the first development stage of product-central. Now, it is essential to
create an entrepreneurial frame that would encourage worthy business opportunities and make suitable
investments in those opportunities.
- Improve organizational communications and make weekly meetings truly effective: Undoubtedly, a bigger
company would require strong communications among different divisions as well as between the Executive team
with the CEO or the CEO with the shareholders. With that said, weekly meetings should be changed into where
valuable information is discussed and decisions are made during these meetings with agreement and shared
feelings of every executive.
- Reconsider the layoff of Dave Lloyd: Although the case study presented give seem-to-be very reasonable
explanations for the layoff of Dave (being unable to communicate effectively among other SVPs; or lack of
confidence among VPs because the sales were down), it can bring adverse effects in the future. Other SVPs or his
subordinates may feel that as Dave is asked to resign during the hardships of the company, they also stand a
chance of being so in the future. This could result in decrease in loyalty and engagement or high turnover in the
company.