Hi all,

I am persuing my MBA with HR as one of the electives through distant learning. In one of the courseworks, I have been asked to critically evaluate the effectiveness of Design Inc over time, making reference to appropriate literature.

Also through using the knowledge of organisational behaviour, a report has to be drafted to the management which highlights the strengths and weaknesses of Klee’s approach in the below case study

Would request your inputs on how to structure my report, because I do not know much about critical analysis.

Case Study: Perfection or Bust

Design Inc., a successful commercial art studio, is the brainchild of its founder/owner, Bill Klee. Its motto, which hangs on a hand-lettered sign in the reception area, is also Klee’s personal motto: Perfection or Bust!

Design Inc. was started by Klee in 1979. “I’m not interested in launching just another commercial art studio”, Klee told his industry colleagues. “I want to found an academy, where talented young artists and designers can perfect their skills. To work at Design Inc. will be a privilege, because I’m not offering people jobs, I’m offering them a unique educational experience!” And because Klee, a well-known figure in the industry, had a reputation as a perfectionist, his aspirations were taken seriously in most quarters.

Klee’s approach to potential staff members was highly unorthodox. Instead of promising recruits high salaries and tempting bonus packages, he stressed the rigours of the job. “You won’t make as much money with us as you would somewhere else,” he told one lettering specialist, “and you won’t be working in a fancy office with a high-fashion receptionist and inch-thick carpeting. But you will be doing the most satisfying job you’ve ever done in your life, because I demand perfection, and I know that you won’t settle for anything less yourself!” The lettering expert, duly impressed, accepted Klee’s offer some days later and over the next several months other promising recruits followed his lead. In this way, Klee was able to put together in short order a talented and enthusiastic team of graphic artists and designers.

Potential clients were treated to a similar sales pitch. “We have no frills at this studio”, Klee told one prospect, sitting him down in an uncomfortable high-backed chair in his austere office. “If you want luxury, or if you want someone to hold your hand, then go someplace else. But if you want quality, the best commercial artwork in this city, if not in this whole country, then you’ve come to the right place.”

In a matter of months, Design Inc. had carved itself a prosperous niche in the commercial art industry. The staff, enthusiastic to start with, became even more entranced by Klee’s vision of perfection as time went on. True, they weren’t making as much as their colleagues in more orthodox firms, but they had an ideal to pursue, and their intangible rewards went far beyond mere money. At least this is what most of them argued, when socialising with their better-paid colleagues. Sometimes these conversations became quite acrimonious, and some long-standing friendships actually suffered. Employees of other firms did not take kindly to the idea that they were content with mediocrity. On the other hand, the employees of Design Inc. were not pleased when the superiority of their work was called into question by outsiders, especially as its superiority was difficult to demonstrate in any absolute fashion. “Who says your work is so great?” became a common question, to which the common reply evolved: “Our work must be better because we take it more seriously.”

As time went on, it became increasingly common for the employees of Design Inc. to spend much of their leisure time together, discussing work-related matters and reaffirming, within the family circle as it were, their commitment to excellence within their field. Many of Klee’s turn of phrase – “no compromise with mediocrity,” “the best or bust,” “perfection is our only concern” – became part of most staff members’ vocabulary.

It isn’t surprising that Design Inc. employees worked long hours, coming in early and leaving late. Klee was everywhere at once, advising on layout, suggesting new creative approaches for one piece of work, consulting on the choice of colour and typeface for another. Things that would be done three or four times at another studio – reviewing artwork for example – might be done as many as a dozen times or more at Design Inc., as workers agonized to get every last detail of a project right. No stone was left unturned in the staff’s pursuit of excellence. These hours cut even more into the social lives of the employees, throwing them more and more into each others’ company.

About 18 months after Design Inc. was established, its top layout artist, forced to choose between his career at Design Inc. and his family, left the firm for another job. His departure was handled smoothly, a party being held to send him off. Klee stepped into his position until a replacement could be found. Advertisements were put in the paper, and the word was passed along the industry grapevine. In line with the ‘all for one and one for all’ philosophy of Design Inc., it was decided that every staff member should have a say in the selection of the new recruit. After all, as Klee put it, “we’ll probably be spending more time with whomever we hire than with our families!” Everyone agreed that the new recruit would have to be enthusiastic about Design Inc.’s training mission, and would have to demonstrate an unswerving commitment to perfection in his or her work.

A large number of qualified people applied, but somehow none of them seemed exactly to fit the bill. One had a young family and expressed doubt about his ability to work every weekend if need be. A second was passed over because one employee felt that she wasn’t a team player. Another was rejected because several staff members felt he just didn’t have the right attitude. After several months, all the candidates had been interviewed, and all had been rejected for one reason or another.

During this time, Klee, because of his additional responsibilities, had begun to neglect his training mission. The studio continued to function, but as a business and not as an academy. Everyone agreed, however that this situation was temporary. Design Inc. would become a training ground again as soon as it got a new layout person....

In his private moments, Klee occasionally wondered if his studio was quite what he had wanted it to be. It seemed to him that something of his dream had been lost. He did not have a great deal of spare time in which to philosophise, however. Furthermore, the firm was doing well financially, and so, as owner, Klee found a certain consolation in the healthy state of his firm’s balance sheet.

About a year after the layout artist took another job, he dropped by to visit his former colleague. He found Klee still filling in for him. The staff still spoke of dedication to excellence and insisted that the day when Design Inc. again became an academy was close at hand. The visitor sensed a certain hollowness in their bluff statements, however. It seemed to him that employees were less certain of their mission and less confident about the future than they let on.

The layout position was never re-advertised and no new candidates were ever interviewed. Most of the original staff are still with the firm, however, which turns a respectable profit each year.

Regards

Rajesh Sharma

From United Kingdom, Gordon
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It's an excellent case study on the pursuit of excellence. This case can be analyzed from the following aspects:

Organization structure - Flat vs. Layered.

Training the staff and upgrading their knowledge to prepare them for the next level of position/responsibilities.

Motivation, especially sustaining enthusiasm over a period of time.

Work-life balance.

Cheers, Rajat

From India, Pune
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Hello Rajesh,

This was really a good case study. It shows dedication to excellence. I would like to know from you, as well as all others who come across this case, the following:

- How to react to the present situation of the company, i.e. how to find or make someone fit into that vacant position.
- What steps can be taken to avoid this kind of situation in the future, i.e. what pre-plans can help to prevent this kind of problem.

Assir Abass
+91 93254 00060

From India, Pune
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Consider 3 issues…

01. what went wrong

02. How things can be better

03. Role of Klee

What went wrong…

01. Decision Making

The decision making process became too complicated with most of the employees trying to decide who can be their next colleague. This made the decision making process slower and unreliable, because of which the turn around time for the new recruit shot up. With Klee taking the role of Lay out specialist…the work is not taking a back seat…but the problem is with Klee’s dream on Design inc

02. Vision vehicle

Klee is the Vision vehicle to the company. His dreams of churning some of the best commercial artists need his presence and his fulltime dedication. For he has a need to alter the approach time and again based on the company’s direction and momentum. Klee is like the pendulum to the wall clock called Design Inc., the heavier he gets the less momentum in day to day activities. He should be at the helm of affairs and in control.

03. Focus

In the pursuit of excellence, the team is getting more idiosyncratic and particular about what they want to choose. The team does understand that excellence needs a particular quality. The focus is more so on bringing a rightful replacement.

Klee’s focus is on giving customer the best

How things can be better

One should understand that when they came to Klee they were in pursuit of excellence and not excellent, so they should pick up a resource which is also under pursuit of excellence…which Klee did when he was recruiting all of them

Let Klee spend more time on his cherished vision, through which he can find more and more people meeting their expectations

Role of Klee

Klee should understand that though he is an authority on Commercial Artistry, he should not play God. As he has a vision and purpose, he should delegate work across the levels. He may want to be a decision maker in recruiting, which would be ok, but it would not be apt to have too many decision makers. Most of them would not know each other before joining Klee’s firm. Further, the firm is developing a onion layered culture like inner circle and so on…where they cannot accept a new entry. This is because they are nurturing a delusion of being sole excellence seekers. This is an obvious problem in some of the companies these days

Hope this idea helps

From India, Hyderabad
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Hi,

I work for a telecom company as HR. I have a year of experience. I just registered on this site and was amazed by the various opinions and articles posted here. Recently, I faced a situation where one of my seniors was speaking about keeping personal life and professional life separate, as well as about ethics, confidentiality, etc.

I was wondering that three-quarters of the time I spend in my office, the line between personal and professional life has almost vanished, and I am in a dilemma now. My colleagues have become part of my personal life. I sometimes discuss office issues at home and with friends, which really relaxes me and reduces stress levels, and my family understands. But does that give rise to ethics or confidentiality issues?

Regards,
Ramya

From India, Bangalore
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Hi Ramya,

I work for a telecom company as an HR professional, and I have one year of experience. I just registered on this site and was amazed by the various opinions and articles posted here. Recently, I faced a situation where one of my seniors was discussing the importance of keeping personal and professional lives separate, as well as ethics and confidentiality. I find that most of my time is spent in the office, blurring the line between personal and professional life. My colleagues have become a part of my personal life, creating a dilemma for me. At times, I discuss office issues at home and with friends, which helps me relax and reduce stress as my family understands. However, I wonder if this raises ethical and confidentiality concerns.

Regards,
Ramya

Hello Ramya,

I agree with your viewpoint that sometimes we struggle to distinguish between personal and professional life. As human beings and social animals, we seek togetherness and belongingness to relieve stress or share experiences and happiness.

When we discuss our professional issues with friends or colleagues, it raises questions about ethics. Are we upholding our professional ethics by sharing them with outsiders?

In my opinion, our professional ethics are not compromised unless our actions are driven by malicious intent or harm the corporate image. However, we must be cautious and protective of our corporate and professional conduct. It is crucial to differentiate between personal and professional life. Remember, our organization mirrors our image and reflects it to others. Acting emotionally and prioritizing personal interests over the organization's is unwise. We must draw a clear line between personal and professional life.

Best regards,

Gourisankar S.
Asst. Prof. HR OB
ICFAI Sambalpur
prof.gouri@gmail.com
gourisankarrao@yahoo.com
09437527515

From India, Pune
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I have been through a similar situation.

The organizational culture created by Klee neglected common ingredients like work-life balance, and there were unaddressed issues within internal succession, motivational aspects, and leadership. Though the team of like-minded "perfectionists" was well-led, the aspirations of being totally committed to the rigors of the job were taxing on the employees. Employee attitude measurement would have indicated disillusionment among employees, if not dissatisfaction. :idea:


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Hi Rajesh,

This case study can be analyzed from several perspectives:
- Organization Culture
- Building Learning organizations
- Reward management (both intrinsic/extrinsic or tangible/intangible)
- Career Management
- Work-life Balance
- Motivation
- Training and development
- Teams/ team work
- and also with Vision, Mission, Goals and Objectives. (As vision is a very long-term aim or the company's driving principle, the mission is shorter than Vision and holds good for a certain period of time. For example, in the 1950s, when JF Kennedy was the president of the USA, the mission of NASA was "to send a man on the moon." Once this mission was accomplished, the mission was changed.) So, a company needs to realign its mission from time to time (maybe once in 10 to 15 years) as the priorities keep changing.

Thanks,
Raja

From India, Pune
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