Claytons Paint

In: Business and Management

Submitted By zackytan
Words 991
Pages 4
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CASE STUDY – CLAYTON’S PAINTS
Three years ago a new, North American CEO was appointed at Clayton’s Paints.
He promptly set about changing the way the longstanding Australian company produced paint, his aim being to make Clayton’s Paints more responsive to the needs of its customers and to gain a competitive edge over its rivals in terms of both price and quality.
The new CEO decided that Clayton’s Paints needed to establish what he called
Customer First Teams (CFTs). He was convinced that the formation of CFTs would improve Clayton’s paint-production processes, and moved to restructure the existing workforce and production lines accordingly.
The CFTs were established by middle management, with members selected on the basis of their technical ability. Members varied from recent hires to longserving employees, from three days experience to 30 years. CFT leaders were also selected by middle management.
At first the CFTs seemed to very successful: the average time it took to produce a batch of paint reduced from 155 to about 56 hours. It was soon noticed, however, that the computer-based figures that the accountants were relying on seemed to be unreliable – some employees appeared to be unwilling to use the new computerised batch-logging system properly. Repeated efforts to encourage the logging of data by employees into the computers failed. Other problems also soon emerged.
The new CEO was innovative, dynamic and a good communicator. Several of the middle managers at Clayton’s noted that his drive and enthusiasm was an essential ingredient in achieving change. One commented that “He was the absolute key driver of the CFTs ... if he had not been here nothing would ever have happened.”
On the other hand, the CEO’s managerial style had limitations. According to one senior manager he was “an optimist who believed anything could be…...

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