Page 112 - Stakis Consolidated Teaching Note

Culture
Reo had built up the organisation from scratch with his

entrepreneurial skills and had bred a culture, of customer

service and quality. Reo did this through his leadership
skills and communications with his employees. This

culture started to slip, as the organisation grew and Reo

lost the personal control, he once had. Strength.

When Andros came to power, the culture that built the

organisation was almost lost and Andros did not have the

required leadership skills or knowledge to stop the slide.

Weakness.

Robertson and Michels, new that a new culture had to be

created. The task was part of Michels’ job and he faced it
head on. Michels drove forward a cost driven culture, by

explaining to all managers the current financial problems

and selling everything that is not required. This did

however raise, between £6 and £7 million, but more
importantly made everyone realise the importance of the

situation and that “every penny counts”. Michels also new

that in many ways Stakis had lost its competitive

advantage, that it had gained through quality of service,
this had to be rediscovered for the organisation to

recover. Strength.

Organisational structure

In the late 1970’s as the Stakis organisation grew, Reo

reorganised the company into separate divisions, each
with its own head office and board of directors. Within