Stone Finch Business Case - Organizational Development
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 addition, Stone Finch included 12 subsidiaries, eight of which served as entrepreneurial “incubator” research groups intended to develop ideas for the Solutions Division. As part of the merger, Billings became head of the newly formed Solutions Division. Stone recognized Billings as an innovative risk taker who could take the company in new directions; and in January 2004, Billings was named president and CEO of the entire company.
As CEO, Billings focused on growing the Solutions group by implementing a radical strategy for stimulating innovation and attracting top talent through the encouragement and support of independent subsidiaries. Billings was particularly interested in developing technologies to help position Stone Finch in two markets: 1) nuclear waste water service and 2) groundwater purification for municipalities. Subsidiaries were formed by entrepreneurial individuals within the Solutions Division who, with some degree of career risk, would be directly invested in the subsidiary. If after four years an individual subsidiary succeeded, Stone Finch had the option to re-integrate that subsidiary into the Solutions Division. Funding for the costly research and development (R&D) initiatives for these subsidiaries
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 addition, Stone Finch included 12 subsidiaries, eight of which served as entrepreneurial “incubator” research groups intended to develop ideas for the Solutions Division. As part of the merger, Billings became head of the newly formed Solutions Division. Stone recognized Billings as an innovative risk taker who could take the company in new directions; and in January 2004, Billings was named president and CEO of the entire company.
As CEO, Billings focused on growing the Solutions group by implementing a radical strategy for stimulating innovation and attracting top talent through the encouragement and support of independent subsidiaries. Billings was particularly interested in developing technologies to help position Stone Finch in two markets: 1) nuclear waste water service and 2) groundwater purification for municipalities. Subsidiaries were formed by entrepreneurial individuals within the Solutions Division who, with some degree of career risk, would be directly invested in the subsidiary. If after four years an individual subsidiary succeeded, Stone Finch had the option to re-integrate that subsidiary into the Solutions Division. Funding for the costly research and development (R&D) initiatives for these subsidiaries