Intuit Case Discussion Managing in Information-Intensive Companies January 26, 2009

Intuit created profitable growth 2002 onwards

Intuit stock price outperformed

Four design parameters Formal groupings By (mix of) functions, business units, geography, project teams Location of decision rights Which decisions at what level Processes Sequence of activities to organize work Management responsibilities Balance between unit and cross-unit focus

Step 1. Formally group into sharply defined business units that have important decision rights Intuit: organically grew from one to 5+ product-markets Push decisions “ down, ” give units freedom, hold them accountable, reward performance

Step 2. Develop a strong set of “service minded” functions Bennett put new senior people in charge of technology, process excellence, IT, procurement Doubled spending in HR Allocated decisions into three buckets: corporate function only, BU only, BU with corporate function guidance

Step 3. Develop processes to get work done Intuit example of e-store: BUs Functions

Step 4. People: Develop joint responsibilities—”T-shaped” Cross unit collaboration Unit focus Management levers to develop effective collaboration E.g., processes Levers emphasizing duality E.g., evaluation and promotion criteria including both dimensions Management levers to create unit performance Clear responsi- bilities and targets Accountability T-shaped managers excel in the dual task of delivering performance for their own unit (the vertical part of the T) and contributing to other units by helping, sharing knowledge, and coordinating work (the horizontal part of the T)