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From India, Warangal
1From India, Warangal
On February 07, 2002, Greg Dyke (Dyke), Director General of the public-funded British Broadcasting Corporation (BBC), announced a new change initiative called 'One BBC: Making It Happen.' This was the second part of the 'One BBC' program that Dyke had introduced in April 2000.
The first part of the One BBC program aimed at cutting costs and creating a simpler organizational structure at the BBC. Dyke recognized the importance of being more agile and creative in the context of the severe competition that the BBC was facing. He announced the 'Making It Happen' initiative to change the internal working environment at the BBC. This included imparting leadership training to all managers at the BBC.
The primary aim of the training program was to improve the leadership qualities of the managers and to create good relationships between the managers and their staff.
A section of analysts supported the leadership program saying it would foster better relationships among the staff, make the work environment more conducive for creativity, and encourage innovation. However, a few analysts criticized the program as they felt that it was very expensive and that Dyke was wasting public money. Commenting on the program, John Burgoyne, Professor of Management Learning at the University of Lancaster and Henley Management College, said, "Some pays off, much of it is waste. We can get more precise. You don't have to spend more, you have to spend it more accurately."
The BBC was founded on October 18, 1922, as the British Broadcasting Company, by a group of wireless manufacturers including Guglielmo Marconi (Marconi), inventor of the radio. Regular broadcasting began from Marconi's London studio on November 14, 1922. The company's mission was 'to inform, educate, and entertain.'
In 1927, the company's name was changed to the British Broadcasting Corporation and it was granted a Royal Charter, which put it under the control of the UK government (Refer Exhibit I for details of the Royal Charter). The BBC, which had no competitor at that time, generated revenues only through a license fee (10 shillings) set by the British Parliament and paid for by radio owners.
It was not allowed to indulge in commercial activities such as advertising. In 1932, the BBC began broadcasts (BBC Empire Service) outside Britain for English-speaking people under the then British Empire.
After starting experimental broadcasts in 1932, the BBC officially started television services in November 1936, under the name BBC Television Service. It also issued 8.5 million radio licenses covering 98% of Britain's households.
During the Second World War, television broadcasts were suspended for security reasons and these recommenced only in 1946. Though television services were suspended during the War, the BBC continued with its radio broadcasts.
It earned a reputation for honest and accurate news reporting and its 9 o'clock news became very popular. The BBC Empire Service, which was renamed BBC External Service in 1940, was broadcasting radio programs in 40 languages by the end of the War. The BBC acquired the reputation of being impartial and its news was regarded as authoritative.
In 1946, a combined license fee for television and radio of £2 was introduced. The Wireless Telegraphy Act of 1949 required any person who possessed a television set to pay the license fee.
Till the early 1950s, radio dominated over television in Britain. There were around 12 million exclusive radio licenses while the combined licenses for radio and TV were only 350,000. The budget allocated for the television division was also negligible. However, this scenario changed with the coronation of Queen Elizabeth II in 1953. For the first time, television was allowed to cover a royal ceremony and it was estimated that around 20 million TV viewers worldwide watched the coronation ceremony...
Organizational Structure
Semler started out with a functional organizational structure at Semco. Under this structure, decision-making took a long time and each department took independent decisions that sometimes were not in the interests of other departments. Then, the company shifted to a matrix structure. But, unhappy with its effectiveness, Semler changed the structure of the organization once again...
Organizational Culture
The replication of business units into smaller units as and when the need arose created units small enough to operate with a commonly shared set of values, philosophy and culture. The organization was bound together by the three interdependent core values: Employee Participation, Profit Sharing and Free Flow of Information. These three values stemmed from the belief that participation in design and implementation of work procedures would give employees control over their work; profit sharing would bring in a sense of ownership; and the availability of information as and when needed would help the employees understand to improve their work practices continuously...
Leadership and Change Management
Semler can be credited with sustaining the radical changes at Semco.
He nurtured changes that might have been viewed as taking away his power and authority. He created an empowered environment where employees could innovate continuously. An idea he generated would later permeate to the whole workforce.
For example, after seeing a company order file cabinets worth $50,000, which were meant only to keep documents which were hardly ever referred to, Semler said that every person in the company should clear his own file cabinets of documents which were never referred to and keep only those that were necessary. This soon became a biannual exercise at Semco...
Making News
The Semco way of running an organization is slowly but steadily being accepted as a very effective method of business management. The BBC series 'Re-engineering the Business,' included Semco while focusing on the five most successful management structures across the globe. CIO magazine selected Semco (the only Latin American company in its list) among the most successfully re-engineered companies in the world. Fortune magazine referred to Semco as a "lab for creative management."...
From India, Warangal
The first part of the One BBC program aimed at cutting costs and creating a simpler organizational structure at the BBC. Dyke recognized the importance of being more agile and creative in the context of the severe competition that the BBC was facing. He announced the 'Making It Happen' initiative to change the internal working environment at the BBC. This included imparting leadership training to all managers at the BBC.
The primary aim of the training program was to improve the leadership qualities of the managers and to create good relationships between the managers and their staff.
A section of analysts supported the leadership program saying it would foster better relationships among the staff, make the work environment more conducive for creativity, and encourage innovation. However, a few analysts criticized the program as they felt that it was very expensive and that Dyke was wasting public money. Commenting on the program, John Burgoyne, Professor of Management Learning at the University of Lancaster and Henley Management College, said, "Some pays off, much of it is waste. We can get more precise. You don't have to spend more, you have to spend it more accurately."
The BBC was founded on October 18, 1922, as the British Broadcasting Company, by a group of wireless manufacturers including Guglielmo Marconi (Marconi), inventor of the radio. Regular broadcasting began from Marconi's London studio on November 14, 1922. The company's mission was 'to inform, educate, and entertain.'
In 1927, the company's name was changed to the British Broadcasting Corporation and it was granted a Royal Charter, which put it under the control of the UK government (Refer Exhibit I for details of the Royal Charter). The BBC, which had no competitor at that time, generated revenues only through a license fee (10 shillings) set by the British Parliament and paid for by radio owners.
It was not allowed to indulge in commercial activities such as advertising. In 1932, the BBC began broadcasts (BBC Empire Service) outside Britain for English-speaking people under the then British Empire.
After starting experimental broadcasts in 1932, the BBC officially started television services in November 1936, under the name BBC Television Service. It also issued 8.5 million radio licenses covering 98% of Britain's households.
During the Second World War, television broadcasts were suspended for security reasons and these recommenced only in 1946. Though television services were suspended during the War, the BBC continued with its radio broadcasts.
It earned a reputation for honest and accurate news reporting and its 9 o'clock news became very popular. The BBC Empire Service, which was renamed BBC External Service in 1940, was broadcasting radio programs in 40 languages by the end of the War. The BBC acquired the reputation of being impartial and its news was regarded as authoritative.
In 1946, a combined license fee for television and radio of £2 was introduced. The Wireless Telegraphy Act of 1949 required any person who possessed a television set to pay the license fee.
Till the early 1950s, radio dominated over television in Britain. There were around 12 million exclusive radio licenses while the combined licenses for radio and TV were only 350,000. The budget allocated for the television division was also negligible. However, this scenario changed with the coronation of Queen Elizabeth II in 1953. For the first time, television was allowed to cover a royal ceremony and it was estimated that around 20 million TV viewers worldwide watched the coronation ceremony...
Organizational Structure
Semler started out with a functional organizational structure at Semco. Under this structure, decision-making took a long time and each department took independent decisions that sometimes were not in the interests of other departments. Then, the company shifted to a matrix structure. But, unhappy with its effectiveness, Semler changed the structure of the organization once again...
Organizational Culture
The replication of business units into smaller units as and when the need arose created units small enough to operate with a commonly shared set of values, philosophy and culture. The organization was bound together by the three interdependent core values: Employee Participation, Profit Sharing and Free Flow of Information. These three values stemmed from the belief that participation in design and implementation of work procedures would give employees control over their work; profit sharing would bring in a sense of ownership; and the availability of information as and when needed would help the employees understand to improve their work practices continuously...
Leadership and Change Management
Semler can be credited with sustaining the radical changes at Semco.
He nurtured changes that might have been viewed as taking away his power and authority. He created an empowered environment where employees could innovate continuously. An idea he generated would later permeate to the whole workforce.
For example, after seeing a company order file cabinets worth $50,000, which were meant only to keep documents which were hardly ever referred to, Semler said that every person in the company should clear his own file cabinets of documents which were never referred to and keep only those that were necessary. This soon became a biannual exercise at Semco...
Making News
The Semco way of running an organization is slowly but steadily being accepted as a very effective method of business management. The BBC series 'Re-engineering the Business,' included Semco while focusing on the five most successful management structures across the globe. CIO magazine selected Semco (the only Latin American company in its list) among the most successfully re-engineered companies in the world. Fortune magazine referred to Semco as a "lab for creative management."...
From India, Warangal
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