Case Study of Organizational Changes

Abstract
This paper documents a case study of the organizational evolution, over a ten‐year period, of a U.S. electric utility company in support of the construction of a two‐unit nuclear generation facility. A number of principles for designing an organization are summarized, and it is suggested that these be used in the organizational planning process. Seven major reorganizations are described, and these changes are compared to the organizational planning principles. The project was half complete before all key engineering and planning functions were consolidated under a single manager. It was approximately 80% complete before the authority of the project director was commensurate with his responsibilities. It is shown how the project authority structure emerged as functional but was later changed to a projectized one. After several realinements, a matrix organization was tried. A strong project structure replaced the matrix structure when the resources of the entire organization were committed to completing the project.

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