Telerik Case Study 

The case is about a software development company, Telerik, which was based in Sofia, Bulgaria, with offices in the United States, Canada, the United Kingdom, Australia and Germany. The company was founded in 2002 and had become a world-leader in user interface (UI) components for Microsoft’s .NET framework. The company was still managed by its original four founders and had grown to 400 employees. In response to rapid growth and to retain its rapid development product process, Telerik adopted agile development in 2006. Agile development is a values-driven process that includes the elements of decentralization, rapid development cycles, intense customer service, teamwork and face-to-face communication. Telerik has fully implemented this process, including the software development components, communication, coordination and management tools that are collaborative and rely heavily upon communication and widespread team interaction and responsibility. Telerik had moved into a new and modern building that included game and quiet rooms, and its physical environment was designed specifically to facilitate agile development. The company’s management style was informal, hands-on, consultative and development-driven, and their culture was youth-focused. Telerik’s human resource (“human capital”) practices were innovative and flexible and its benefits and compensation package had allowed Telerik to attract a high quality workforce. Its recent innovations in benefits, including concierge services and stock options, had given Telerik an edge in human capital with an employee turnover rate of under five per cent. The founders had worked diligently to create a high performing, cohesive organization that was an exciting place to work. They had built a company with an excellent reputation, both in technical achievements and product development, and as an employer. Their success was based upon the rapid deployment of committed human capital in a culture of teamwork and custom.

Case Questions:
Please address these questions in discussion format in you analysis. The questions should not be mentioned directly but used as points to discuss throughout the analysis.

Corporate Culture
1. What are the critical factors in the organizational culture at Telerik?
2. What are the most important components of culture that must be maintained as Telerik grows?

Agile Development Process
3. Is agile development a software design or an organizational design tool?
4. What skills must employees and managers have to be able to work well in an agile development environment?
5. Is agile development sustainable with growth?

Communication
6. What are the strengths and weaknesses of Telerik’s communication strategy and practices?
7. What recommendations would you make to improve Telerik’s communication system?

Growth Challenges
8. What challenges will Tererik face with continued growth?
9. What changes will be necessary for Telerik to successfully manage the future growth of the company?