Ayudhya Allianz C.P.: the Turnaround

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Ayudhya Allianz C.P.: The turnaround As posted by Bangkok Post on June 21, 2004, angry agents and employees resisting management efforts to restructure the perennial loss-making business, threatened to shut down the operation of Allianz Auydhya CP. The change of AACP under Wilf Blackburn can be classified as re-creation change or a frame-breaking changes that are the most risky and traumatic form of change. It requires a radical departure from the past and includes shift of senior leadership, values, strategy, culture and so forth. Even there is no guidelines provide a recipe for success of organizational change, we can assess the CAAP case by the Ten Commandments (Prof Todd D Jick). Wilf had analyzed the organization and identified the root causes of the issues were (i) poor senior management (ii) traditional Thai management culture had blocked the interaction and communication among senior management and employees (iii) the ‘fixed allowance system’ and commission rate on products made agents to focus on products which were easy to sell but not profitable (iv) company mainly relied on agents as sales channel which limited the sales growth. Both management and employees had the same sense of urgency for change as crisis in 2004 had threatened company’s existences. Wilf created a shared vision to regain AACP’s position as Thailand’s number two life insurer in 2005 and its sales target to become the industry leader over the next two years. The raised of registered share capital in Oct 2004 showed the strong support from the Corporate level for Wilf’s leadership. The actions below were also showed to the employees that the company wanted to separate from the past and the crafting of the implementation plan could be summarized as following –changing of senior management, introducing open office; setting up one-stop customer centre to handles enquiries

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