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The Race - Management of Change story

A simple story about a race, A mirror on business And perhaps something to AVOID doing by Lukas Ritzel Prasena

The Race - Management of Change story

  1. 1. The Race! A simple story about a race , A mirror on business And perhaps something to AVOID doing &
  2. 2. Some time ago, a boat race was organized between two competing organizations. One was a Swiss company – let’s name it Cow Co. Ltd, and the other one was Sempuma from Malaysia
  3. 3. <ul><li>Both teams worked very hard to get to top level </li></ul><ul><li>When the day finally came where they could measure their strength, both were very optimistic </li></ul>
  4. 4. But the race was short and came to a surprising end , where the team from Malaysia won by more than one kilometer !!!
  5. 5. The morale was low at the Headquarters of Cow & Co in Switzerland. Nobody understood such a huge difference.
  6. 6. Top Management decided that the causes MUST be identified
  7. 7. A project team was set up, to identify the cause and to suggest corrective measures if needed
  8. 8. After weeks of discussions, the project team came to the following findings: <ul><li>The Malaysian team included seven rowing officers and one steering executive </li></ul><ul><li>In the Swiss team there was one single rowing officer and seven steering executives </li></ul>
  9. 9. The top Management reacted immediately and hired external Consultants to conduct an in-depth analysis on the Swiss team‘s structure
  10. 10. Some months and many 10‘000 Swiss Francs later, the Consultants came to following conclusion: <ul><li>Too many team-members had been steering </li></ul><ul><li>Too few of them had been involved in moving the boat </li></ul>
  11. 11. The Top Mangement reacted in a radical way and restructured the whole team as follows: <ul><li>... Four steering executives </li></ul><ul><li>… Two senior steering managers </li></ul><ul><li>… One steering directors </li></ul><ul><li>… One rowing officer </li></ul>
  12. 12. Additionally, they implemented a sophisticated Performance evaluation system to motivate the one rower . The top Management said : <ul><li>We must enrich his responsibilities to make his job more interesting and therefore get the best out of him </li></ul>
  13. 13. The next year came and a second race was organized <ul><li>The result was cruel. The Asian team won again This time by TWO Kilometers </li></ul>
  14. 14. The consequence of such a heavy blow:
  15. 15. <ul><li>The top management sacked the one rower because of bad performance !!! </li></ul><ul><li>The equipment was all sold and all new related investments were frozen </li></ul><ul><li>The Consultants were praised for doing a great job </li></ul><ul><li>The money that was not invested was distributed among the top management and the steering committee </li></ul>
  16. 16. A metaphoric presentation by The mirror of the economic world Visit us @ www.prasena.com and ask for our change management audit with risk analysis and concrete suggestions for solutions based on the concept of the eMatrix© [email_address]

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