Page 71 - Stakis Consolidated Teaching Note

In October 1991 all Head Office functions were relocated
to the leased office block at Atlantic Quay in Glasgow. This

had a major cultural impact. It broke links with the past

and in particular created a new management style. It
created a single company and greatly eased both formal

and informal communication. This single event should not

be under-estimated. What previously was a totally

fragmented head office structure had, following the move,
become much more cohesive.

In January 1992 Casinos which had in 1991 been put on

the market were taken off reabsorbed, re-motivated and
transformed in a very short space of time and in February

Hotel margins improved dramatically. The change in

culture from seeking style and image to straightforwardly
seeking profit was quickly completed Initially. the broad

parameters were set by Sir Lewis who took the first steps

in rationalising the board and then finally and more

specifically, the fine detail of operational change and its
implementation was undertaken by David Michels. Here

utilisation of Tannenbaum and Schmidt’s model helps to

highlight David Michels’ leadership style (See Figure 7).

Initially, Michels’ style at Stakis was autocratic with
leadership being clearly boss-centred. This is evidenced by

his first week in office and the steps taken to bring cost

control to the fore. However, as pressure comes off his
style becomes more democratic with subordinates no

longer simply being told what to do but rather being

developed to participate in the running of the company.

Culture is a key consideration for Michels. Stakis is not his
company it is their company and if they do not understand