Stone Finch, Inc.: Recommendations for a More Integrated Enterprise
I. Executive Summary
In 2009, Stone Finch was an international company operating in 12 countries with approximately 20,000 employees who provided products and services for water- and wastewater-related industries. The company consisted of two main divisions, one known as “Water Products” carried out the traditional business services that had sustained the company since its founding in 1975 by the Stone family. The other division, known as “Solutions”, was formed through the acquisition of Goldfinch Technologies in 2000, a 75-person biochemical services company, focused on offering biochemical services and developing new technologies, which was headed by Jim Billings. In…show more content… These structures have resulted in different strategies, processes, and philosophies in each division. The Entrepreneurial Subsidiaries form a third structure within Stone Finch, and the absorption of subsidiary employees into the Solutions Division (as with EnzaClean) appears to have introduced a third set of philosophies, and behaviors. The differing levels of opportunity and reward experienced by employees in each part of the organization have likely contributed to what is now a fractured and divisive culture in the company as a whole. Both the structural differences and the financial imbalance between the divisions raise questions about the alignment and coordination of these groups. A profile of organizational characteristics i (Morgan, p. 57) is presented in Figure 2 as a way of comparing these three organizations and examining how they might be better aligned to support the company’s goals.
Figure 2. Profile of Organizational Characteristics
Notable in this profile are significant differences in strategic styles and managerial styles. Whereas one would expect differences in the structural, technological, and even human/cultural characteristics of business units focused on manufacturing, technology, and R&D, respectively, the differing styles of strategy development and managerial work illustrated here may lead to challenges in communication, collaboration and alignment of business strategies for the common good of the company.
