The Dashman Company

Author: George F F Lombard

1947 The President and Fellows of Harard !ollege" #$A
The Case:
The %ashman !om&an' was a large (on(ern ma)ing man' t'&es of e*ui&ment for the
armed for(es of the #nited $tates+ ,t had oer twent' &lants" lo(ated in the (entral &art of
the (ountr'" whose &ur(hasing &ro(edures had neer been (om&letel' (oordinated+ ,n
fa(t" the head offi(e of the (om&an' had en(ouraged ea(h of the &lant managers to
o&erate with their staff as se&arate inde&endent units in most matters+ Late in 194-" when
it began to a&&ear that the (om&an' would fa(e in(reasing diffi(ult' in se(uring (ertain
essential raw materials" .r .anson" the (om&an'/s &resident" a&&ointed an e0&erien(ed
&ur(hasing e0e(utie" .r Post" as i(e &resident in (harge of &ur(hasing" a &osition
es&e(iall' (reated for him+ .r .anson gae .r Post wide latitude in organi1ing his 2ob"
and he assigned .r Larson as .r Post/s assistant+ .r Larson had sered the (om&an' in
a ariet' of (a&a(ities for man' 'ears" and )new most of the &lant e0e(uties &ersonall'+
.r Post/s a&&ointment was announ(ed through formal (hannels usual in the (om&an'"
in(luding a noti(e in the house organ &ublished b' the (om&an'+
3ne of .r Post/s first de(isions was to begin immediatel' to (entrali1e the (om&an'/s
&ur(hasing &ro(edure+ As a first ste& he de(ided that he would re*uire ea(h of the
e0e(uties who handled &ur(hasing in the indiidual &lants to (lear with the head offi(e
all &ur(hase (ontra(ts whi(h the' made in e0(ess of 41-"---+ He felt that if the head
offi(e was to do an' (oordinating in a wa' that would be hel&ful to ea(h &lant and to the
(om&an' as a whole" he must be notified that the (ontra(ts were being &re&ared at least a
wee) before the' were to be signed+ He tal)ed his &ro&osal oer with .r .anson" who
&resented it to his board of dire(tors+ The' a&&roed the &lan+
Although the (om&an' made &ur(hases throughout the 'ear" the beginning of its &ea)
bu'ing season was onl' three wee)s awa' at the time this new &lan was ado&ted+ .r Post
&re&ared a letter to be sent to the twent' &ur(hasing e0e(uties of the (om&an'+ The letter
follows:
%ear55
The board of dire(tors of our (om&an' has re(entl' authori1ed a (hange in our
&ur(hasing &ro(edures+ Hereafter" ea(h of the &ur(hasing e0e(uties in the seeral
&lants of the (om&an' will notif' the i(e &resident in (harge of &ur(hasing of all
(ontra(ts in e0(ess of 41-"--- whi(h the' are negotiating at least a wee) in
adan(e of the date on whi(h the' are to be signed+
, am sure that 'ou will understand and that this ste& is ne(essar' to (oordinate the
&ur(hasing re*uirements of the (om&an' in these times when we are fa(ing
in(reasing diffi(ult' in se(uring essential su&&lies+ This &ro(edure should gie us
in the (entral offi(e the information we need to see that ea(h &lant se(ures the
o&timum su&&l' of materials+ ,n this wa' the interests of ea(h &lant and of the
(om&an' as a whole will best be sered+
6ours er' trul'"
.r Post showed the letter to .r Larson and inited his (omments+ .r Larson thought the
letter an e0(ellent one" but suggested that sin(e .r Post had not met more than a few of
the &ur(hasing e0e(uties" he might li)e to isit all of them and ta)e the matter u& with
ea(h of them &ersonall'+ .r Post dismissed the idea at on(e be(ause" as he said" he had
so man' things to do at the head offi(e that he (ould not get awa' for a tri&+
!onse*uentl' he had the letters sent out with his signature+
%uring the two following wee)s re&lies (ame in from all e0(e&t a few &lants+ Although a
few e0e(uties wrote at greater length" the following re&l' was t'&i(al:
%ear .r Post:
6our re(ent (ommuni(ation in regard to notif'ing the head offi(e a wee) in
adan(e of our intention to sign (ontra(ts has been re(eied+ This suggestion
seems a most &ra(ti(al one+ 7e want to assure 'ou that 'ou (an (ount on our
(oo&eration+
6ours er' trul'"
%uring the ne0t si0 wee)s the head offi(e re(eied no noti(es from an' &lant that
(ontra(ts were being negotiated+ 80e(uties in other de&artments who made fre*uent
tri&s to the &lants re&orted that the &lants were bus'" and the usual routines for that time
of 'ear were being followed+

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