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Intuit Case Discussion

Learn how Intuit achieved profitable growth after 2002 by implementing four key design parameters: formal groupings, decision rights, processes, and management responsibilities. Explore the strategies employed by Intuit's CEO and professionals in managing various business units and vertical solutions.

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Intuit Case Discussion

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  1. Intuit Case Discussion Managing in Information-Intensive Companies August 27, 2010

  2. Intuit created profitable growth 2002 onwards

  3. 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

  4. CEO CEO Bennett Bennett Professional Professional Consumer Consumer Small Business Small Business Vertical Vertical Accounting Accounting Tax Tax and Personal and Personal Businesses Businesses Solutions Solutions Finance Finance (Acquisitions) (Acquisitions) Manack Manack Allanson Allanson Norrington Norrington Business Unit Business Unit Personal Personal Supplies Supplies Employer Employer Accounting Accounting Professional Professional Consumer Consumer Various Various Finance Finance Services Services Tax Tax Tax Tax Businesses Businesses and Products and Products Primary Product Primary Product Quicken Quicken Checks, Forms Checks, Forms Payroll Payroll QuickBooks QuickBooks ProTax ProTax TurboTax TurboTax 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

  5. 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

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

  7. Step 4. People: Develop joint responsibilities—”T-shaped” 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) • Management levers to develop effective collaboration • E.g., processes Cross unit collaboration • Levers emphasizing duality • E.g., evaluation and promotion criteria including both dimensions Unit focus • Management levers to create unit performance • Clear responsi-bilities and targets • Accountability

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