Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading content…
Transcript

MGTS7809 - STRATEGIC HRM - GROUP 2

Our Team

Hassan Chaudhry

Filip Dimkovski

Humberto Jimenez Martinez

Naomi Horton

Stephen Woods

Rodrigo G. H. Ferreira

Background

Who is ?

Who is Valve?

Gabe Newell

  • Video game developer, publisher and digital distribution company.
  • Est. 1996 in Bellevue, Washington.
  • Online platform Steam
  • Key games Half-Life, Counter-Strike, Portal, Day of Defeat, Team Fortress, Left 4 Dead, and Dota 2.

Mike Harrington

Organisational Structure

Organisational Structure

Holacracy is at the core of Valve's structure:

  • Flat structure
  • Core goal oriented
  • Dynamic & flexible
  • Distributed control & authority
  • Self-organising teams ('cabals')

Changing Environment

Hardware?

  • Trend towards closed PC environment

  • Software development hindered by not being able to exploit full hardware capabilities

  • Consumers moving into the living room

Critical Issues

How does Valve adapt to the changing environment?

  • Hardware?

Valve's Core Competence lies in its ability to create and develop innovative gaming software

Structural support

  • Individual Competence: "T" Shaped

  • Collective Competence: Shared understanding underpins core competence

Core Competency

Valve's structure supports their core competence

  • Flat structure fosters creativity, flexibility and co-creation of game development
  • Hiring strategy: Focus on understanding rather than attributes
  • New employee handbook: An explicit method of developing shared understanding
  • Self-organising teams: Implicitly creates a shared understanding and a culture of discipline

Option 1

How does Valve adapt to the changing environment?

Option 1: Design & manufacture own hardware

Option 2: Do nothing

Option 3: Partner with hardware developer

Option 3

Options

Option 1: Develop & Manufacture Hardware

Pros

  • Allows complete control of the process to support advances in software
  • Not reliant on PCs: gets games into the living room and allows market penetration of Steam

Cons

  • Organisational structure not fungible to hardware
  • Changing organisational structure to suit hardware risks negatively impacting core competence
  • New distribution channels, relationships with retailers
  • Costly, particularly if it fails

Option 2: Do Nothing

Option 2

Pros

  • No impact on existing structure and core competence
  • Continue as a Hedgehog

Cons

  • Risk losing market penetration given trends

Option 3: Partner with Hardware Developer

Pros

  • Leave Valve's current structure and culture intact

Cons

  • Risks in partnering with the right developer and alignment of values and culture

We recommend Valve to keep their current structure and partner up with a hardware developer

Implementation

Internal

  • Focus on core capabilities
  • Allocate a team to manage external relationships

Partnership

  • Scout for potential partners
  • Values and culture compatibility
  • Define level of control given to partners
  • Protection of Intellectual Property

Recommendation

Where to start?

  • Define the structure needed for deals
  • Assign responsibility to manage partnerships
  • Scout and shortlist potential hardware developers
  • Define responsibilities (legal)
  • Manage deals / follow up
  • Production and distribution

Thank you

Q&A

Q&A

Thank You

Learn more about creating dynamic, engaging presentations with Prezi