Summary
In 1990, Jones and Shephard Accountants Inc. was a midsized company and it was ranked 38th in size by the American Association of Accountants. J&S established an Information Service Division (ISD) for studies and analysis to grow as a company and compete with larger firms. In 1997, J&S purchased three large computers to increase capacity and expand their services to include customers from outside the company. By 1998, workload has increased to the extent that the ISD employed over 50 persons to satisfy customer needs. However, the director of ISD was discontent due to the nature activities were being handled in which two internal projects (Project X & Y) necessitated month-end data collation and reporting, as well as two full-time project managers to handle each project properly and focus on resolving conflicts. As a result, the director of ISD was to be replaced in February, 1999, and two external managers were hired to manage project X & Y in October, 1998. The announcement of a new director of the ISD would be announced in January, which led employees to wonder who would receive the position. Furthermore, the associate director was due to retire in December, thus creating two vacancies.
In January, 1999, a confidential meeting was held between the director of ISD and the systems manager in which the systems manager was congratulated for his promotion to the director of ISD. He was also told that he would have to restructure the hierarchy of the division to facilitate communication and minimize conflict. The systems manager consulted an outsider consultant to answer some questions for him.

Questions
1. What should the new organizational structure look like? Where should I put each person, specifically the managers?
Since the Information Service Division is project-oriented, the new organizational structure should provide full