Organisational Change Management Volume 1

Case Study 2 - (Ineffectual Change Attempt)

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Background to Organisation:

Largest division in a nation-wide organisation

The organisation is 75 years old and has many traditions

Division is based at one site and reports to the division's Head Office in another state; the organisation's Head Office is in Canberra

Division is in logistics and maintenance of equipment

The equipment is continually being upgraded with the latest technology

Customers are based in selected locations around the country

Main suppliers are overseas, especially USA

Annual budget of around $100 million (50% is for parts)

Staffed by around 1,200 people, and discussions are in progress to downsize staff as more work is outsourced.

Most senior staff are engineering graduates (including some post-graduates) who are well trained in the latest management techniques and the technology related to their work

Has won awards for its performance in Quality Control and Best-Practice Benchmarking

New CEO appointed to revitalise the division, and has 2 years to do this; he had spent 12 months unsuccessfully trying to revitalise the division: including facilitating sessions on Strategic Planning and Business Process Review

CEO is keen to lay the basis for permanent change management rather than the 'knee jerk' decision-making that has happened in the past

CEO's future promotion depends on revitalising the division

There are 3 main units in the division, and each unit regards itself as independent of the others

The division is facing the threat of commercialisation and outsourcing

Results of attitudinal staff survey show a disorientated workforce

A high turnover of staff

Budget continually being cut and under threat of further cuts

Your Role

To help the CEO revitalise the division and get his promotion

Timeframe is 12 months

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