Organization Design and Development (MGT 404)

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THE PROCESS OF ORGANIZATION DEVELOPMENT

KENWORTH MOTORS*

t began with a telephone call, as did so many
of my engagements. The person calling identified himself as Robert Denton, the plant
manager of Kenworth Motors’ Seattle truck
manufacturing operations. Denton said he’d gotten my name from Charles Wright, a client of
mine in Seattle. Charlie is the OD manager for
a major timber products company. I’d been
doing several projects with Charlie’s group of
internal consultants for the past three years
and occasionally served as the OD group’s consultant. Denton noted that Charlie and he were
members of the same sailing club. He went on
to say that when, as someone relatively new to
Seattle, he’d asked Charlie if he knew any consultants, Charlie had spoken highly of me.
I remember thinking that Charlie probably
wouldn’t have mentioned me unless he thought
I could be useful to Denton. My trust in Charlie’s
competence and judgment was very high.
Denton went on to explain that he’d been
the plant manager for only eight months, that
things seemed to be going well, but that he
had a gnawing sense that things could be better. I must have murmured something appropriate because Denton invited me to visit him and
become acquainted with his operation.
I was both flattered by and interested in
Denton’s invitation. After all, I thought to
myself, it’s nice to be wanted, a consulting
engagement might come out of it, I always
wanted to get behind the gate of the Kenworth
plant, and Denton sounded like a basically
smart guy and nice besides. However, reality
intruded into my thoughts, as it often does.

THOUGHTS ON THE ROAD
I reminded Denton that I lived across the state
in Spokane and added that I had limited time
available in the short run. I noted that I had
plans to visit Seattle in three weeks and could
see him then, otherwise it might not be for a
month. Denton sounded almost eager as he
agreed to a 10 A.M. appointment on April 11.

*Craig C. Lundberg, Cornell University.

The drive westward from Spokane across
the state of Washington on Interstate 90 begins
with several hours of boring highway. I had purposely put off thinking about my appointment
with Robert Denton until I was on the road. As
the interstate stretched out over the rolling sagebrush hills and checkered wheat fields, I turned
my thoughts to Kenworth Motors and Denton.
Uppermost in my mind was that I was about to
talk with a man I knew little about, consult with a
firm I knew very little about, and I had no
focused agenda. What should I say and do?
As the miles went by, I envisioned several
alternative scenarios for my upcoming appointment with Robert Denton, the plant manager of
the truck manufacturing division of Kenworth
Motors Corporation. I saw his office in several
possible ways. It could be spartan and centrally
located to the production floor. It could be conventionally furnished but of a fair size. It could
be large. It might even be opulent. It could be
personalized with mementos of career, hobbies, or family. It might be far from the production floor, or even in a separate building. The
more I tried to envision Denton’s office, the
more alternatives came to mind. So I focused
on Denton, trying to imagine him from the
voice cues on the telephone—not old, probably
fit, probably clean shaven. Again the futility of
trying to imagine came home to me.
What did I think I knew? I didn’t know much
beyond a handful of facts about his title and his
job tenure, the fact that he knew Charlie,
believed things were generally going OK at the
plant, and had some vague notion something
wasn’t quite right. I also had the distinct impression he had been fairly eager to talk with me—
after all, he’d initiated calling me and had quickly
settled for an appointment convenient to me.
What did I really want to accomplish when
I met with Denton? The more I considered this
question, the more I pared down my answers.
At minimum, it seemed for me a low-cost
situation—a couple of hours of my time, perhaps some impressions of me that would be
communicated to Charlie (though I believed
Charlie and I had a relationship of mutual

Selected Cases

I

PART 2

SELECTED CASES

respect and trust based on a lot of shared work).
On the other hand, there was potentially a lot to
gain—perhaps another consulting job, perhaps
more visibility and reputation in Seattle, which
would be good for my business.
I decided I couldn’t plan for our meeting in
much detail; about all I could reasonably do was to
be true to the posture I found to be useful in situations like this. I had to be myself, be as real as possible. I see myself as a curious, friendly person who
basically likes others. I also know I can be bold and
thought I might have to be to get the conversation
going, to help Denton become clear as to why we
were talking together, and to clarify my role.
I also wanted to leave our meeting with a decision to either go forward or not. While I didn’t mind
investing a little time, my time was valuable. I also
felt strongly, as I always do, that I didn’t want to
work with anyone who I didn’t basically like as a
person or who didn’t seem to genuinely want to
do some real work. Seeing the Cascade mountains
on the horizon, I began to feel easier. I’d be myself,
whatever happened. Only one question nagged:
Could Denton and I connect swiftly enough so
there would be time to push for clarity in our possible work relationship?

MAKING CONTACT
At the Kenworth plant, the uniformed guard at the
plant gate checked his clipboard, slipped around
my car, and copied down my license plate number.
Returning to my open window, he pointed ahead
to a one-story brick building attached to the multistoried plant and told me I could park in the space
in front and then go inside and identify myself to
the receptionist.
The floor of the wide hallway inside the double
glass doors of the office building was freshly
waxed. Framed photographs of trucks and large
buildings lined the walls. A middle-aged woman
in a suit looked up from her desk and smiled.
After I identified myself, she led me down a side
corridor to an alcove and informed the secretary
there who I was and that I was there to see
Mr. Denton. She then turned to me, smiled again,
and wished me a good day. The seated secretary
told me Mr. Denton was expecting me, but was on
the telephone. She gestured toward a bank of chairs
and asked me to wait. As I sat down, I observed

235

the corridor traffic, busy but quiet. I settled back to
wait.
About ten minutes later, a man of medium
height and build wearing a sports jacket over an
open-collared shirt came through the door behind
the secretary and walked directly to me. He
extended his hand, smiled, introduced himself as
Bob Denton and motioned me into his office.
The office was larger than I expected. It was
paneled and a large Persian rug was centered on
the floor. At one end were a clean desk with side
chairs and a table full of papers behind it. At the
other side of the office were a couch and two
stuffed chairs around a low coffee table. Drapes
framed one large window that looked out on the
parking lot. Denton asked if I wanted coffee, and I
said I did. He went to the door and asked the secretary to bring us both coffee and added we were not
to be disturbed. While waiting for the coffee, we sat
on the two stuffed chairs and made small talk. He
asked about my drive across the state; I asked
about the framed sailing prints on the wall and
whether he’d been sailing lately. We chatted about
the Sonics, the Kingdome, and the coming World’s
Fair in Vancouver. After our coffee arrived, I asked
him to tell me about his plant and products.
Denton spoke excitedly for 10 or 12 minutes on
a wide range of topics—the daily production rate of
23 trucks, the cost of a truck, the sales order backlog, some equipment updating just finished, his
coming to this job from a plant in the Midwest, his
spending a lot of time lately with the next year’s
budget, and so forth. My impression of Denton
was that he was highly involved in his work. He
spoke rapidly but clearly with enthusiasm. Finally,
he leaned back, smiled, and said, “Well, I’ve been
going on, haven’t I?” I remember thinking I liked
Denton’s ease and his willingness to talk about his
plant and himself. I’d already learned a lot about the
plant and his job without more than looking interested. Denton certainly did seem likable, and he
was younger and more casual than I expected.

GETTING DOWN TO BUSINESS
I clearly recall my response to Denton’s question.
“Actually, I’ve appreciated your sharing all this
background with me. I’ve always been curious
about this plant. Years ago, I had a part-time job
when I was in college and used to deliver some

236

PART 2

THE PROCESS OF ORGANIZATION DEVELOPMENT

industrial supplies in this end of town and always
wanted to know what happened in this plant. All I
could see from the road were those lines of big
shiny trucks. It’s nice to know they’re built with
care. But you asked for this meeting, Bob.
Remember you told me that while things were
going well here you sensed something wasn’t
quite right. Can you tell me a little more now?”
“Not really. I know the plant is doing fine. I feel
pretty much on top of my job. I like what I’m doing
here very much. My department heads—all nine of
them—are all good people. All but two have been
here quite a while. They’re dependable, damn
good at what they do, get along fine, and basically
are good managers,” he said.
“I get along good with everyone. I go out in
the plant every day and circulate around. Things
are moving smoothly. My two newer managers—
one runs our purchasing and inventory, the other is
in personnel—couldn’t be working out better. Yet
some things nag at me that I can’t put my finger
on. I guess it boils down to some crazy notion I
have that while we get along fine and work
together well, we haven’t jelled together as a
team quite like I’d hoped.”
I bombarded Denton with questions, trying to
find something that didn’t hang together or might
indicate a problem. No matter what I asked
about—from union relations to accounts receivable,
from engineering-production relations to turnover
figures—Denton’s responses were consistently factual and full, and everything seemed to be in
remarkably good shape.
I caught myself from going on with more questions. Instead I said, “Bob, everything I’ve been
asking about tells me you’re OK. Maybe things
here really are OK. Maybe you’ve just got some
apprehension that things couldn’t be that good.
After all, you’ve been here long enough to really
know. While there is some chance that you’re
not well informed, and some things aren’t so hot,
the odds are against it. About all I can suggest is
whether you might want someone like me to independently confirm how things are going.” Denton
smiled as if to himself and replied, “Hmm, maybe,
what would you suggest?”
“What’s usually done in situations like this, if
there is the interest and if there is the money to
pay for it, is to engage someone like me to spend a

few days interviewing a sample of managers and
other key staff people to see what might turn up.”
“From what you’ve heard so far, do you think
that makes sense here?” Denton asked.
“Frankly, I don’t know. It might be worth it to
you just to learn things really are OK. What usually
happens, however, is that I do find out about something that could be improved. After all that’s what
I’m supposed to be good at, finding problems. One
way or another, Bob, the mere fact I was here
would have some impact. The word would spread
pretty fast that some outsider was snooping
around. What impact that might have I can’t say. If
things really are OK, my presence might mean little.
If there are real problems, my being here would
probably create some tensions, it could raise expectations that something would be done about them,
and it could even cause problems.”
Denton nodded, “I see what you mean. If you
came in, it would cost me some bucks, it would
have some risks in how my people reacted; one
way or another I’d have to do something.” He
paused and then went on. “Well, to tell the truth,
I don’t want to upset things if they’re OK, but just
finding out whether they are or not appeals to me.
Isn’t there some other way to do this?”
Bob Denton seemed to me to be open to some
minimal work by me. He’d responded as I’d hoped
to my candidness about the risks of some conventional diagnostic snooping. He’d really seemed to
pay attention to what I’d said, and I was beginning
to like him and was intrigued with the situation. At
times like this, my thought processes seem to jump
into high gear. After all, a careful response was
called for and there were a number of considerations to factor in. The things I recall noting to myself
went like this: apparently some minimal motivation
on Bob’s part; my real lack of information about the
Kenworth situation; my own schedule for the coming months—which was pretty full; my intuition that
probably nothing major was wrong with Bob and his
managers; and that whatever I proposed had to be
of modest cost.

LET’S HAVE A RETREAT
I said to Bob: “Let me sketch out one idea that
comes to mind. We could do a modest retreat.
You, your department managers, and I could
meet away from here for a couple of days, say

SELECTED CASES

on a weekend, to jointly explore how things are
going. At minimum, I see several probable outcomes from such a meeting: everyone would get
somewhat better acquainted with one another;
we’d know better if there were serious issues to
tackle; we’d have the experience of jointly going
through problem identification; and you’d get a
sense of whether or not your team was open to
working with an outsider like myself.”
I paused and went on: “Such a meeting would
be relatively efficient. It wouldn’t take time away
from work, and it wouldn’t cost an arm and a
leg.” Bob nodded, sipped his coffee and looked
at me intently. “OK,” he said, “I can see your
points. Just what would we be doing?”
Seeing Bob’s interest as well as warming to
the idea myself, I went on to outline a retreat. I
suggested doing it at a country club or lodge within
a few hours’ drive of Seattle. This setting was to
provide a symbolic break from the customary business environment, and because it would cost
everyone weekend time and the company the
expense of travel, food, and lodging, it would
show Bob’s seriousness about the event. I then
suggested we begin with cocktails and dinner on
a Friday evening, work all day Saturday with appropriate breaks, and conclude by noon Sunday.
Again, Bob nodded. He then asked, “But what
would we do? What would you charge?”
I did some quick calculations and responded,
“As for my fee, I’d have to bill you for a minimum
of three days at my daily rate of $___ per day, and
travel expenses—assuming Kenworth would

237

provide food and lodging. As for what we’d actually
do, that’s more difficult to say exactly. Frankly, while
I have several ways to get us started, I’d need to
play it by ear. In general, it would be my responsibility to see we talked straight and a lot with one
another to surface our concerns both big and
small. I’m afraid you’d have to trust me on this.”
I said this last couple of sentences with some trepidation, knowing from my experience that most
managers would want much more clarity, but
I needed to know how Bob was viewing me.
I was surprised at what happened next. Denton
quickly agreed to have a retreat weekend as I’d
outlined. We also selected a weekend a monthand-a-half away. He would find a site and let
me know. In addition, we agreed he would use
the phrase “a communications workshop” when
he informed participants. Glancing at my watch as
I left Denton’s office, I saw it was just 11:30.

Questions
1. How well did the OD consultant prepare for
the meeting with Denton? Would you have
done anything differently?
2. In the discussion between the OD consultant
and Denton, what was effective and ineffective about the consultant’s behavior?
3. How effective was the contracting process
described in the last part of the case? What is
the scope and clarity of the agreement?
4. How would you design the upcoming retreat?

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 2
Organization Design and Development (MGT 404)
Due Date: 02/11/2024 @ 23:59
Course Name:

Student’s Name:

Course Code: MGT404

Student’s ID Number:

Semester: First

CRN:
Academic Year:2024-25-1st

For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
Marks Obtained/Out of 10

Level of Marks: High/Middle/Low

General Instructions – PLEASE READ THEM CAREFULLY
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Restricted – ‫مقيد‬

The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.

Learning Outcomes:
1. Describe the basic steps of the organizational development process.
2. Evaluate the strategic role of change in the organization and its impact on
organizational performance.

Assignment Question(s):
Please refer to the case study titled “Kenworth Motors” given Chapter 9 in your textbook
and answer the following questions:
1. What were the primary organizational challenges Kenworth Motors faced that led
them to initiate a change process? (2 marks)
2. What diagnostic tools were used to collect data on the organizational issues at
Kenworth Motors? How did the data inform the intervention process? (3 marks)
3. Explain how employee involvement was encouraged in the change process at
Kenworth Motors. What impact did this have on the success of the intervention? (2
marks)
4. How did Kenworth Motors address resistance to change among its employees?
What strategies were implemented to minimize resistance? (3 marks)

Note:
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You must include at least 5 references.
Format your references using APA style.

Answers
1. Answer2. Answer3. Answer-

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