Case Study 5 - (Hierarchical, technocratic and unionised organisation)

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Background to Organisation

The characteristics of this organisation are

Losing money

Keen to maintain the status quo (including maintaining legislated protection of its monopoly position)

Strong adversarial unions who are in continual conflict with management

Low staff morale

Very bureaucratic in processes and procedures

Legalized fraud, ie furniture rejected by organisation taken for use in staff member's homes

Too much focus on political agendas, especially government, and not enough on the organisation itself

Very weak project management expertise, ie large cost increases and time over-runs on many projects, such as new central office building

Management has squandered its opportunities to respond to market forces and customer needs as

- dominated by "silo thinking" with most GMs doing their own thing and more committed to themselves than the organisation

- reactive rather than proactive

- paying lip-service to change

- showing a lack of commitment

- lacking creativity

- lacking commercial expertise

- insular in thinking and experience

Organisation is technically and professionally competent

There are pockets of committed staff and much untapped potential

A lazy balance sheet, ie asset-rich but cash-poor

A large exposure to risk as it deals with imported materials, ie foreign exchange risk

Management concentrates too much on traditional products and services rather than newer and more innovative ones available

Your Role

There is a need to transform the organisation so that it changes from a bureaucratic to proactive organisation becoming competitive, commercial, receptive to market needs, customer-focused. These will be benchmarked on global standards so that it becomes a market competitive and customer-responsive corporation. Furthermore, this reacts to be acceptable to all stakeholders, such as staff, customers, suppliers, government, unions, etc

Wants a 10% return on assets