DNV case study
DNV is a global technical professional services firm, specializing in risk management. Assignment questions:
1. How can collaboration between business units lead to innovation and business development? – knowledge and experience exchange, complementing each other
2. What are the main barriers for internal collaboration?
Large density of the within-team network (i.e., the number of ongoing established relations among team members, divided by the total possible number of such relations)
High strength of relations within a team
Lack of intersubsidiary contacts
Different working habits
3. Why do you think the food initiative in DNV ran into trouble?
No cooperation across Business areas because of the revenue model – everyone tried to keep their clients no knowledge exchange different ways of working only project manager was a full time involved in the project, others also had to do their day to day activities
4. What decision would you make about the food business? See the options outlined at end of the case.
First of all they should find out if it is important and profitable for them to have this cross-sectional cooperation. Is the food industry that profitable now? If yes, create a separate team for food industry (BA)
If food industry is not profitable, it would be better to concentrate on other opportunities like IT, which is more popular and demanded service nowadays and turn down the food initiative.
5. What advice would you give to the CEO to change DNV’s organization and management system to foster effective collaboration? change the revenue model if he wants to have more cooperation- maybe rebuild the business areas across the offered services, not the competences (food industry, IT, etc. instead of Consulting, Certification, etc.)
Hansen solution:
1. Unify the team – the goal should be simple, concrete, energizing people: Manage the balance between competition and collaboration
1. How can collaboration between business units lead to innovation and business development? – knowledge and experience exchange, complementing each other
2. What are the main barriers for internal collaboration?
Large density of the within-team network (i.e., the number of ongoing established relations among team members, divided by the total possible number of such relations)
High strength of relations within a team
Lack of intersubsidiary contacts
Different working habits
3. Why do you think the food initiative in DNV ran into trouble?
No cooperation across Business areas because of the revenue model – everyone tried to keep their clients no knowledge exchange different ways of working only project manager was a full time involved in the project, others also had to do their day to day activities
4. What decision would you make about the food business? See the options outlined at end of the case.
First of all they should find out if it is important and profitable for them to have this cross-sectional cooperation. Is the food industry that profitable now? If yes, create a separate team for food industry (BA)
If food industry is not profitable, it would be better to concentrate on other opportunities like IT, which is more popular and demanded service nowadays and turn down the food initiative.
5. What advice would you give to the CEO to change DNV’s organization and management system to foster effective collaboration? change the revenue model if he wants to have more cooperation- maybe rebuild the business areas across the offered services, not the competences (food industry, IT, etc. instead of Consulting, Certification, etc.)
Hansen solution:
1. Unify the team – the goal should be simple, concrete, energizing people: Manage the balance between competition and collaboration