I would like to present two brief case studies and then offer several conclusions.

Case Study 1: Save-Save

Save-Save is a device that claims to reduce consumers’ electricity bills by up to 40%. Founded by the eccentric entrepreneur Keith P., the company treats many of its employees as interchangeable parts. Turnover—particularly in administrative and customer-service roles—approaches 60% annually. Keith personally makes nearly all major decisions. While his marketing instincts and technical judgment have proven remarkably accurate, his staffing and organizational capabilities are notably weak. Despite this, Save-Save has extraordinary projected revenue for the coming years, and both Keith and his investors have generated substantial financial returns.

Case Study 2: Sally-Re

Sally-Re prepares salary slips for the Ministry of Education’s 15,000 employees. The company has held this contract since 1951, when it was founded by Sally’s grandfather, who was dismissed from the Ministry for a “behavioral impropriety” involving his secretary but was also a major donor to the governing political party (which remains in power). Sally-Re employs approximately 300 people, many of whom are family members or lack basic computer literacy. The company outsources nearly all of its core functions, including data security. Nevertheless, Sally-Re has continued to generate significant financial benefit throughout its history.

These cases illustrate that some organizations thrive because they possess an irresistible product, enjoy extraordinary luck, or have advantageous political connections. Their success persists regardless of internal dysfunction.
Conversely, organizations led by capable managers with sound strategies and solid products can still fail.

For OD practitioners, failing to recognize these underlying dynamics can lead to focusing on the wrong issues, being selected for the wrong reasons, or misunderstanding the organization’s “genetic code.” The risks are considerable and may ultimately harm professional credibility.

As a final note, Sally-Re has recently been instructed by the government to improve service levels by “12%” in the coming year. The Ministry has allocated 300 hours of training for this purpose. Unsurprisingly, Sally-Re’s granddaughter—fresh from completing a BA in Organizational Behaviour at a community college—has already bagged the service-improvement contract, at a very good fee.

But fret not; Keith’s chairman wants to “empower middle management” and is seeking a consultant.