Page 5 - Stakis C Case Study

By the time Michels took office Sir Lewis had already cleared

out the old senior management. His task was therefore to

build upon this start. In his first week he interviewed all
senior general and head office managers and asked for

opinions:

"I sacked a few but only those whose functions were

going. The level below was OK. I reassured them but said

that things had to be done my way. I can run people I've

had 25 years of making mistakes. I make quick decisions,
such decisions can be corrected. It's easier for a new

person to do this. Morale was low, rock bottom. It varies

more at the centre in organisations than at divisions or
units. There was a need to lift morale".

In week two, over an eight day and night period, he

interviewed all area directors and all branch managers. He
reviewed all budget targets and increased them. In hotels

margins had fallen to 14%:

"Many said `it can't be done'. But I knew it could be done.

I knew the hotel business - they could buy better, get rid

of people etc. In many cases the people wanted to do it.
They had been recommending it for years but had not

been listened to. They were professionals with decent

products. I got rid of the human resource function".