Chapter 15 - Minicase 1

Putting IT to Work at Home Depot

In preparation for answering the questions, review the Home Depot web site.

1. Read Chapter 9 (Sections 9.9 and 9.10) regarding team-based organizations. Explain why the team-based structure at Home Depot is so successful.

   The SPST collaborates with both the ISD and business colleagues, and is actually composed of several teams, each with a director and a mix of employees who all report to the SPST Director. This collaboration amongst end-users and the project teams ensures continued focus on the most important tasks.

   The success lies with the slection of people for and the operation of the project teams and the collaboration with the end users.

2. The structure means that the SPST reports to both marketing and technology. This is known as a matrix structure. What are the potential advantages and problems?

   Matrix structures are designed to group people and resources simultaneously in two ways, in this case marketing and technology.

   The advantages include a reduction of functional barriers, overcoming the problems of sub-unit orientation, easier integration leading to greater flexibility, increased communication, and maximization of human resources.

   The problems include lack of a clear hierarchy of authority which can lead to conflict, a vacuum of authority and responsibility, and lack of control structures.

3. How is collaboration facilitated by IT in this case?

   ISD and SPST created structured relationships to ensure that the project teams and end-users worked together, with the teams’ existence continuing until the end of the project. The project teams are constructed of members with different skills and collaborate with the ISD.

4. Why is the process flow important in this case?

   The Home Depot process flows are combined with the organizational structures to achieve the strategic initiatives such as lowering costs, increasing end user satisfaction, and executing a predictable, manageable workflow.