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Introduction

[Editors note - this is an extract from "A History of the Marconi Company" by W.J. Baker circa 1970]

The phenomenal increase of electronics applications over the two decades following WW2 made for a particularly exciting phase of the Company's history. Each new development, whether originating within or outside the organisation, had to be considered (usually in its embryo form) and a decision made as to whether it should have a place in the Company's development and manufacturing programmes. Selections. however stringent the scrutiny, do not always behave according to plan; some, which seem to have every prospect of vigorous growth, languish; others, after an inauspicious start, flourish beyond expectation. In between these minority extremes come those which develop along predicted lines. The ratio of successes to failures is a measure of managerial acumen.

Such new projects begin as relatively unimportant sideshoots in a Division which is most logically equipped to nurture them. Over the years the good ones grow to become a valuable branch of the Division's manufacturing activities. The best evolve to the point where they show the capabilities of becoming a main trunk.

By 1965 the original four manufacturing Divisions of the Sutherland reorganization of 1948 - Communications, Broadcasting, Aeronautical and Radar - had expanded so very considerably that their structures were in danger of becoming unwieldy, while in certain instances the 'side-shoots' referred to above merited consideration for more intensive cultivation. The Managing Director, F. N. Sutherland, in consultation with the senior management, decided that the time was opportune for a second reorganization.

The first steps took the form of a re-shuffle of senior executives. This was precipitated by the appointment of Dr E. Eastwood, the Director of Engineering and Research, to the posts of Director of Research of English Electric and Chief Scientist of Marconi's. Thereupon the directorate was divided, H.J. H. Wassell becoming Director of Engineering and G. D. Speake the Director of Research. Two further senior appointments were made at this time; D. G. Smee (formerly Assistant General Manager) became Commercial Director and A. W. H. Cole (formerly Manager of the Communications Division) became Director of Product Planning.
  
These appointments were the preface to a massive divisional redeployment from wliich emerged thirteen manufacturing divisions. Each division was classified into one or other of three major groups, namely, Telecommunications, Electronics and Components. Table 2 at the end of this chapter gives a summary of the functions of each division as set down in 1965.

The final phase of this major structural organization came in November of that year when F. N. Sutherland was appointed Chairman both of The Marconi Company and of Marconi Instruments, with R. Telford succeeding him as Managing Director of Marconi's.

Examination of Table 2 will show that the 'new deal' involved no departure from traditional policy. No entry into the consumer goods market was contemplated; manufacture, as in the past, was to be confined to the area of top-quality capital goods for sale in world markets. The fundamental change lay in the creation of specialist divisions to exploit to the full the potentials of such relatively new developments as space communications, computers, microcircuits and automation. This not only made for a more flexible Company structure; by releasing the younger developments from the constraint of being merely sections of very large divisions and promoting them to full divisional status with a fair degree of autonomy, incentives were materially increased and morale further strengthened.

Although events beyond 1965 have no part of this history it is perhaps pertinent to remark that at the time of writing, when three years have elapsed since the re-formation, the wisdom of the change has been completely justified. Annual sales, which, in 1965, were amounting to some £30,000,000, have since increased (1967 figures) to £70,000,000.

TABLE 2 - RE-FORMATION OF COMPANY DIVISIONS

(i)   TELECOMMUNICATIONS  GROUP consisting of:

(a) Broadcasting Division. Formed 11.8.1948. Virtually unchanged by the reorganization. Continued to be responsible for the Company's activities in sound and television broadcasting.

(b) Radio Communications Division. Formed 15.8.1965. A new Division resulting from the fission of the old Communications Division. Responsible for radio communications other than radar, aviation and mercantile marine. Took over the naval radio communications business previously handled by Maritime Division.

(c) Line Communications Division. Formed 15.8.1965. A new Division, responsible for telegraph and digital equipment used in line transmission work. This was formerly part of Communication Division's activities.

(d) Space Communications Division. Formed 13.9.1965. A new Division taking over work previously done by Radar Division, Communications Division and the Research Laboratories.

(e) Mercantile Marine Division. Formed 13.9.1965. A new Division with activities based on those of the old Maritime Division, but without responsibility for the supply of naval equipment (see Radio Communications Division).

(2)  ELECTRONICS  GROUP consisting of:

(a) Radar Division - Manager J. Sutherland Formed 15.7.1948 as Services Equipment Division (renamed Radar Division, April 1954). Virtually unchanged by reorganization except for removal of some aspects of space communication work. Continued to be responsible for Company's activities in ground radar, both civil and military.

(b) Aeronautical Division. Formed 11.10.1948. Virtually unchanged by reorganization. Continued to be responsible for airborne radio communications and for electronic navigational aids both for airborne and airport usage.

(c) Computer Division - Manager E. Atkins Formed 25.1.1965. Responsible for the provision of electronic digital computers in the fields of radar defence, civil air traffic control and communications systems.

(d) Closed Circuit Television Division. Formed 23.11.1959. Continued to be responsible for industrial, educational and commercial television equipment in applications other than broadcasting usage. (Note: Re-named Electro Optical Systems Division 1.1.1968.)

(e) Mechanical Products Division. Acquired (as Scanners Ltd.) 16.1.1951. Became 'Marconi Works, Felling', 1958. Title changed to Mechanical Products Division 3.9.1962. Responsible for mechanical engineering (e.g. radar heads, turning gear, microwave dish antennas, etc.) as required by other divisions. Products also available as direct sales to external customers.

(f) Automation Division - Manager P. Way Officially constituted 21.10.1965. Responsible for the industrial application of Myriad computer systems (in conjunction with English Electric), automated systems for area traffic control and also for the development of cathode ray type displays for all branches of computer graphics.

(3)  COMPONENTS GROUP consisting of:

(a) Specialized Components Division. Formed 2.7.1962. Virtually unchanged by reorganization. Continued to manufacture special components both for Company divisions and for outside sale.

(b) Microelectronics Division. Formed 1.12.1964 from the microelectronics section of Semiconductor Physics Group at the Baddow Research Laboratories. Responsible for the development, manufacture and sale of microelectronic devices and for providing a comprehensive design and advisory service, both for Company divisions and for external users. (Note: became Marconi-Elliott Microelectronics Ltd., 4.7.1968.)

(c) Hackbridge Establishment. Formed 1935. Virtually unchanged by reorganization. Continued to be responsible for the design and manufacture of crystals and specialized crystal-derived products.

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