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TMT & Administrative Heritage Top down management “The Clan”

YUKOS – Case Study. TMT & Administrative Heritage Top down management “The Clan” Russian traditional management – because it worked to make change Culture of force to overcome resistance Western oil experts imported Delegation – New Culture Administrative Heritage leverages New Culture.

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TMT & Administrative Heritage Top down management “The Clan”

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  1. YUKOS – Case Study TMT & Administrative Heritage Top down management “The Clan” Russian traditional management – because it worked to make change Culture of force to overcome resistance Western oil experts imported Delegation – New Culture Administrative Heritage leverages New Culture TMT & Break with Administrative Heritage Reality check – oil reserve recalculations Training – Heriot Watters Promotion by ability Learning from mistakes Corporate Leadership programmes Carrots – share options, bonus payments Sticks – dismissal Retain good things from Administrative Heritage Command & Control to introduce new things

  2. Organisational Learning (Absorptive Capacity) “Ability to learn is determined by prior experience” Drawback – no normal management TMT impetus to break with Administrative Heritage Knowledge - acquired - internalised - disseminated Knowledge Acquired Expats Training to demonstrate potential Consultants Benchmarking Knowledge Disseminated Make communication and discussion part of life Create set of common goals Sharing information by - e-mail - databases - web Knowledge Internalised Development through business projects Job rotation Learning by mistakes

  3. Organisational Capabilities – RESTRUCTURING Resource Reconfiguration New business systems Value chain analysis Reporting systems Job rotation “Blockers” removed Resource Divestment Employees who won’t/can’t change Support systems – leisure, etc Outsourcing Resource Creation Innovation rewarded “More like a Business School” Training Bonuses for working in the regions Resource Integration Corporate Culture Sharing Information

  4. Improvements in Operational Capabilities Cost efficiency Corporate Governance New technology BUT... Health & Safety neglected Concentration on Key Performance Indicators and publicity Bureaucracy high Organisational Transformation Efficiency Made great progress Responsiveness Command & Control could make quick decisions at the top Delegation not fully embedded Performance and Competitive Advantage Set the benchmark Would have been sustainable.............. POLITICS

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