Case | HBS Case Collection | December 1996 (Revised June 1998)

Midnight Networks, Inc.

by H. Kent Bowen and Marilyn Matis

Abstract

Midnight Networks, Inc., is a small computer network validation company. This case describes how the five founders built their business from operations earnings and how they established "best practices" operational processes to run their firm successfully. Operational processes include developing a company procedures manual and assigning topics to specific people to maintain procedures; cross-training every employee in support and sales functions; employees entering weekly tasks and accomplishments on an online whiteboard that the whole company can view; group reviews of computer code for quality; performance reviews done by a committee of supervisor and peers. The company grows quickly, and a larger firm offers to buy it. Midnight Networks also has been considering going public. The founder must decide whether to go public or sell the firm to continue its growth.

Keywords: Corporate Entrepreneurship; Business or Company Management; Operations; Organizational Culture; Software; Business Startups; Business Growth and Maturation; Information Technology Industry; Massachusetts;

Citation:

Bowen, H. Kent, and Marilyn Matis. "Midnight Networks, Inc." Harvard Business School Case 697-019, December 1996. (Revised June 1998.)