The Oticon Case

The Spaghetti Organisation

The Spaghetti organisation was the result of a radical change that undergo the danish hearing manufacturer Oticon. When in 1988 Lars Kolind took over as the CEO, the market share of the company had dropped dramatically. That situation called for a revolution in the company that allowed them to remain competitive. Back then, the company was up against big companies like Siemens, Philips, Sony, M3 and AT&T. Therefore, they couldn't compete neither on financial resources nor in marketing nor in technology. The only way that Kolind find to remain competitive was to create an innovative fast-moving organisation, something that they big companies would never be able to replicate.

This article aims to analyse the leadership in the Spagetti organization from a portfolio management point of view. The Spagetti organization was the result of a radical change that undergo Oticon, a danish hearing manufacturer, during the 90s. The success of such revolution significantly relied on the leadership of Lars Kolind, the CEO at that time.

Oticon is a danish hearing manufacturer that undergo a radical change during the 90s. The