Page 110 - Stakis Consolidated Teaching Note

However, with the fall in the share value the effective
shareholders were the banks and it was they who

appointed Sir Lewis with 100% authority.

Robertson and Michels, were brought in to save the

organisation and showed that they had leadership skills

by developing the professional organisation

demonstrated in figure 8, where there are professionals
at every level and no conflict of interests. They also

demonstrated their leadership by taking the following

actions;

• Strategic direction, cost driven leadership.
• Core competences, knowledge of the industry and change
management.

• Developed human capital, encouraged individuals to take
ownership and gave rewards for good performance.

• Corporate culture, introduced optimism, honesty and most
importantly communication. Michels visited every manager
when he first joined Stakis and still spends much of his time

visiting business units, as quoted “I visit every unit regularly.
I make real visits. I know this business. I question managers

and I send the top guys out so that others will give honest
answers”.
• Ethical practices, were encouraged by open structure

introduced and by the example set by Robertson and
Michels.

• Strategic controls were set in the form of achievable targets
“double margins” for the hotels and casino businesses.

Robertson and Michels. Strength.