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Case study - iCompute

iCompute, a software firm founded by Ron Yeates, faces challenges in staff recruitment and retention, particularly among women, due to its 'work hard, play hard' culture and lack of effective management. The company has also encountered legal disputes and customer dissatisfaction due to outsourcing and poor communication. Recommended solutions include fostering a more inclusive work environment, establishing an in-house legal team, investing in management training, and improving customer support services.

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kriti prasad
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17 views

Case study - iCompute

iCompute, a software firm founded by Ron Yeates, faces challenges in staff recruitment and retention, particularly among women, due to its 'work hard, play hard' culture and lack of effective management. The company has also encountered legal disputes and customer dissatisfaction due to outsourcing and poor communication. Recommended solutions include fostering a more inclusive work environment, establishing an in-house legal team, investing in management training, and improving customer support services.

Uploaded by

kriti prasad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CASE STUDY ON iCOMPUTE

INTRODUCTION
Ron Yeates, a tech entrepreneur, established iCompute two decades ago. At first, the
company specialized in building bespoke computer software for the financial service
industry. Now, it is the country’s third-largest software firm with 400 workers and has
extended into other fields, earning 20% of its revenue from a car insurance software package.
It has grown on a ‘work hard, play hard work ethic.’

PROBLEM STATEMENT
1. Difficulty in recruiting and retaining staff, particularly female staff – could lead to a
lack of diversity and a limited pool of talent, which could ultimately hinder innovation
and progress.
2. Lack of clear direction and management – could lead to ambiguity in specifying
customer requirements, resulting in increased costs and lower margins.
3. Managers are out of touch with the latest technologies and lack managerial skills to
debate responsibility for requirements changes and to be firm with customers.
4. Outsourcing all its legal advice instead of having an in-house legal team leading to
legal dispute with two customers regarding the bespoke software not meeting agreed
requirements.
5. Technical expertise of the employees can result in analysis paralysis.
6. Outsourcing of customer support car insurance software to a third-party instead of
having an in-house customer support service.
7. Long-term software developers who have become operational managers are motivated
in earning more money rather than having managerial skills.
8. Software developers are not happy about the in-house project to record time spent on
tasks and projects because they feel it is unnecessary and will not improve their work.

ANALYSIS
The culture of iCompute is like a double-edged sword. On one hand, it promotes a
“work hard, play hard” mentality, where employees are expected to word long hours and
participate in social activities after work. On the other hand, it leads to difficulties in
recruiting and retaining woman staff, who may feel excluded from the predominantly male-
oriented social activities.
The company’s culture seems to prioritize technical prowess over effective
management, as evidenced by the developers’ complaints about their managers being out of
touch with the latest technologies and lacking in managerial skills. This can create a sense of
frustration among employees, particularly those who are looking to advance in their careers.
Many technically gifted employees often spend too much time considering alternative
technologies instead of implementing solutions.
Outsourcing of customer support car insurance software to a third-party which was
unpopular with customers and the senior manager believed that customer support calls were
complicated because users did not read the user guides properly. However, the complaints
from customer suggest that the outsourced support service was not up to par.
The developers’ anger towards the in-house project of recording time spent on tasks
and projects indicate that there is a lack of communication and collaboration between the
development team and the management. This can lead to a lack of trust, lower morale, and
decreased productivity, which can ultimately affect the quality of work produced.

RECOMMENDED SOLUTIONS
iCompute may need to reconsider its work culture and its approach to management.
The company may need to adopt more flexible working arrangements and make efforts to
attract and retain a more diverse workforce and implement policies that promote work-life
balance.
The company could establish an in-house legal team which would be responsible for
advising on contracts and disputes preventing legal issues in the future. This potentially saves
time and money in the long run. Alternatively, they could also consider finding a different law
firm, that specialises in computer contracts and provide legal advice.
The company may need to invest in management training to ensure that managers are
better equipped to manage their teams and motivate them effectively. They need to ensure
that decision making processes are efficient and effective, with clear criteria for evaluating
technology choices.
The company may need to consider developing a strategy to guide technology
decisions and to ensure that its solutions meet customers’ requirements.
The company can bring the software support for car insurance back in-house. This
would allow the company to have more control over the support process and ensure that
customers are satisfied with the service provided. Alternatively, they could look for a
different third -party company that specialises in providing customer support to ensure
customers receive best possible service.
The management could involve the developers in the project planning and
implementation process and communicate the benefits of the system or could offer incentives
for accurate and prompt time recording to reduce resistance to the new system.

EVALUATION
In this case, it is evident that the company’s culture and leadership played a
significant role in its performance and ultimately its downfall. The company’s failure to
recognize and address the issues in a timely and effective manner led to severe consequences,
including legal penalties.
Overall, this case highlights the importance of maintaining a strong ethical culture and
effective leadership in ensuring long-term success and sustainability for a company.

CONCLUSION
In conclusion, the case highlights the importance of recognizing and addressing
cultural issues within an organisation to avoid negative impacts on performance.
The leadership at iCompute failed to address critical issues, resulting in employee
dissatisfaction and turnover. Improved communication, transparency, and employee
engagement can help rebuild trust and promote a positive work culture.
Implementing a modern management approach and investing in employee
development could help address these issues and position the company for future success.

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