Marconi Plc

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Marconi PLC

The case deals with two major transformational organisational changes that take place within a span of 5 years in Marconi PLC. The first change process was under the leadership of Lord Simpson who took over this large diversified conglomerate in 1996 when the company was in a mature phase, already in decline. The company was under performing, had a rigid structure, lacked a clear vision and the employees had become change averse and complacent. To recharge the company Lord Simpson lead a change process with a clear vision with a growth oriented strategy, acquisition and a cultural change process for the employees. To motivate the employers to embrace the cultural change he introduced an attractive stock option plan.

The change process started producing results until the “Dot Com Bust” hit the industry like a “tsunami”. Like all other major players in the Industry Marconi plc faced a dramatic down turn and within a matter of few months the company was hit with a crisis for survival from the peaks that it scaled as a result of the change process introduced by Lord Simpson.

Lord Simpson and some of the key members of his team had to standown and Mark Parton took over the company in September 2001. His basic challenge was to introduce fresh transformational organisational changes to save the company and turn it around back to profitability. The case deals with the initial phase of this change process where in the strategy was to divest noncore activities to generate the immediate requirement of cash to reduce the debts and to restructure and downsize the company to reduce the losses. In resulting situation of high demoralization of employers, Mark Parton had to push forward the cultural changes introduced by Lord Simps...

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...nt presentation and a workshop were conducted where behaviors expected of Marconi leaders were dealth with, ie

• Be highly capable and respected for their contribution

• Say with clarity and honesty of what they think and feel

• Challenge the status quo, to improve business performance

• Be confident and expected to succeed.

• Be ambassadors of the company internally and externally.

• Be great leaders, leading by example and living our shared values

• Be good managers, consistently achieving results.

Through this conference Mr Parton was able to get most of the top managers of Marconi to not only understand the change process initiated by him but also get their commitment to take it forward. Though Mr.Parton has huge challenges facing him, he appears to have at least made a good beginning in the much needed transformational organisational change for Marconi.

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