Business strategy and turnaround
Rising costs... aging plant and equipment... increased competition...
Throughout the 1980s, this major government department transport
operator was in a down-spiral. Business strategies for turnaround
and survival were required.
By 1996, however, it had become a profitable, listed company.
Heading the turnaround team were Francis Small (as Managing
Director) and Murray King (as Executive Manager Corporate
Francis Small: "Selecting the right strategies and executing
them well was critical to success. So too, however, was phasing
our productivity improvement initiatives and managing the
"The productivity improvements were enormous and underpinned
all the other benefits that flowed through to the economy,
stakeholders and customers..."
Principal change methods employed:
- Organisation restructuring and privatisation
- Business process re-engineering
- Staff downsizing (80%) and incentivisation
- Cultural change
- Investment and market-led growth strategies
- Major productivity improvement (700% on key measure)
- Operating profit 1999 2000 NZ $71m (net profit
- Transport prices halved in real terms.