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Kasus-KasusPertemuan 11 s.d 14

Matakuliah : A0134/Audit Operasional

Tahun : 2006

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Paper Company in Northern Europe

• Background and Purpose

• Production Problems

• Management Structures

• Human Resources and Policies

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Background and Purpose

• The client was a large industrial group in Northern Europe with a small paper company subsidiary.

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• The subsidiary company had been losing money for some years, with the result that the holding company was considering whether to liquidate its interest and close the subsidiary.

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Production Problems

• The subsidiary produces a range of paper products. When the Management Audit consulting team arrived at the location they were met by the General Manager (A). He conferred with the consultants over the organisational structure that existed (see Fig. 6. 1. p. 100)

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• He suggested that the exercise could be a waste of time; he only needed a new Production Director to be recruited. He genuinely believed that then his problems would be solved. (It should be noted that in the positions reporting to the General Manager, the box with the word ‘Production’ has no initials, which indicates that this position was vacant.)

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Management Structures

• See p. 101 – 103

• It was recommended that, in order to utilise existing management potential best, there be an interim organisation for the remainder of the fiscal year.

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• The temporary Managing Director would be supported by four Directors and seven Managers to ensure day-to-day operations.

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• The suggested interim organisation is shown in Fig. 6. 3. p. 102. this interim organisation was accepted by the holding company’s Board.

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Human Resources and Policies

• See p. 103 - 104

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Continental International Bank

• Background and Purpose

• The Consultancy’s Mission

• Conclusions

• Recommendations

• Result

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Background and Purpose

• The client was a Continental International Bank which at the time of Big Bang had decided to expand out of its commercial banking base into other financial service areas.

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• The Bank’s strategy was to effect an international expansion into all key financial markets.

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• It anticipated that it would be able to achieve this strategy by expanding initially into the investment banking and brokerage areas.

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• Having reviewed various options, it decided to acquire a high profile, small investment and brokerage business in London.

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The Consultancy’s Mission

• The consultancy was asked to evaluate the existing management team in the financial institution to be acquired and report on possible organisational synergies.

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• This was possible because Heads of Agreement had been signed which enabled the exercise to take place prior to the acquisition being completed.

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Conclusions

• The Management Audit came through with the following findings:– The potential financial institution to be

acquired had a first class name, reputation and an excellent management team

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– However, there was a danger: only a few senior business generators were responsible for 60 per cent of the total business

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– There was an obvious cultural gab between:• The merchant banking philosophy pertaining in the

financial institution to be acquired and the commercial banking bureaucracy of the acquiring commercial bank.

• The specific Continental and British cultures.

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• The compensation levels and schemes appropriate to a deal driven institution bank in London and those existing in the Continent.

• There was a lack of operational plans to make London a platform for a worldwide business.

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Recommendations

• The Management Audit recommended that the client should:– Adapt the organisational structure on the

Continent to capitalise on the new business that could be developed with the benefit of the acquired financial institution in London

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– Effect an exchange of directors/partners between the Continent and the United Kingdom

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– Fund total immersion language courses for the Partners being exchange, so that they could speak in business as well as social terms to each other

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– Create a management committee to tackle the management issues, such as compensation schemes and business expansion

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Result

• The advice of the consultancy was disregarded in this particular instance. The acquisition went ahead without any of the consultancy’s recommendations being implemented.

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• The Continental acquirer lost a considerable amount of money, caused in part by four of the highest fee earners leaving the acquired financial institution. This danger had been identified by the consultancy.

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• The findings of a Management Audit are for the Board of the Client to consider and adopt, or not adopt, as it wishes.

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• The consultant can, as it were, lead the horse to water but in the end cannot force it to drink. In this instance, time proved the consultancy right.

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Presentasi

• Presentasi kasus Paper Company in Northern Europe

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• Diskusi kasus Paper Company in Northern Europe

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• Presentasi kasus Continental International Bank

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• Diskusi kasus Continental International Bank

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Summary

• Mahasiswa mengumpulkan summary chapter 6