When Cisco bought the videoconferencing manufacture Tandberg for $3.4 billion in 2010, the deal was welcomed by Tandberg itself as proof that they had won a competition they called "mission impossible". With a global market share of 40%, the Norway-based company had outperformed Cisco and other IT giants such as Polycom, HP, and Sony for 20 years. Tandberg relied on a "flat and ever-changing" organization without job descriptions or detailed organization charts. Decisions were taken at the lowest possible level, making empowerment crucial as long as all employees found themselves either developing or selling products. 

Employees were encouraged to focus on what they could control and how to solve a problem rather than blaming external circumstances for failures. This "player mindset" was a prime focus as Tandberg "hired for attitudes and trained for skills." The biggest challenge was to make people realize they could take the initiative in dealing with problems. Trial and error was encouraged, and unwanted side effects to empowerment were avoided. Because bonuses were paid on team profit margins, teams quickly got out of unprofitable projects. The necessary initiative and agility required skilled leaders. Risk-averse or over-controlling managers did not fit in and would eventually leave. All new employees attended a three-day cultural induction in Oslo where they learned that asking "why" questions were essential. Tandberg claimed that extensive use of videoconferencing could facilitate communication in new ways, and the bridging of high-end IT innovation with local, dynamic cultures and financial governance required frequent high-quality communication. Though only 1,200 people strong, Tandberg employees worldwide made 100,000 video calls a month, most of them less than five minutes long (compared to about 50,000 a year by Cisco's 65,000 staff). Tandberg home or other locations, they would meet the families of co-workers in other countries on video. Conflict levels were low because "an acidic e-mail gets neutralized once the receiver appears on video and you must explain it face to face." 

Tandberg veterans believe videoconferencing helps realize the potential of a flat, empowered, and constantly changing organization. Scandinavian leadership is traditionally characterized by preference for egalitarian and non-hierarchical structures. The Tandberg culture may have originated from local practices, but what started as a Scandinavian practice eventually worked as a global, lean, adaptable, and profitable society, exemplified in a real time video event for which all of its offices joined in singing "We are the world." 

 

a. Discuss how Tandberg was able to reap the benefits of participative leadership and empowerment of employees. (10 marks) 

b. Explain how you would assess Tandberg's potential for facilitating empowerment. (

Answer rating: 100% (QA)

Answer a Reaping the Benefits of Participative Leadership and Empowerment at Tandberg Tandbergs success in reaping the benefits of participative leadership and empowerment of employees can be attribut... View the full answer