Engineering and Infrastructure Company (EIC) provides a broad array of engineering solutions to energy, transport and water availability challenges. It has head office in Germany and technologies development centres in the United States, Germany and Belgium. EIC has a strong global work force of 26,000; engineers and technologist make over 85% of the workforce. An open and collaborative work environment backed up with strong research and innovative culture has been keeping EIC ahead of the competition. EIC not only works on successful completion of the projects but also on providing satisfacti...
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Engineering and Infrastructure Company (EIC) provides a broad array of engineering solutions to energy, transport and water availability challenges. It has head office in Germany and technologies development centres in the United States, Germany and Belgium. EIC has a strong global work force of 26,000; engineers and technologist make over 85% of the workforce. An open and collaborative work environment backed up with strong research and innovative culture has been keeping EIC ahead of the competition. EIC not only works on successful completion of the projects but also on providing satisfaction and delight to its clients as well as its employees.
EIC’s Oceania operation is looked after by Australian Engineering and Infrastructure Ltd. (AEIL). AEIL operates out of Sydney with a workforce of 350. Since its inception in 1982, AEIL has a constant presence in Australian market and generating about 5% of EIC’s total profit. The Australian mining boom of early 21st century has catapulted AEIL to a higher level. In 2006-07, AEIL has secured new orders of worth 1.2 billion Au$ and a backlog of 600 million Au$. However, during 2007-2009, AEIL was able to secure only 200 million Au$. Moreover, global financial crisis and slow down of world economy has hit EIC very hard. To alleviate the situation, EIC has taken a decision to sell AEIL and its Oceania operation.
Su Engineering Limited (SEL) is a South Korean chaebol. Disintegration of Soviet Union in 1990 and opening up of world economy in 1990s has opened new opportunities for SEL. SEL quickly made inroads into erstwhile Soviet Union, South Asia and African countries by successfully completing numerous small and medium sized engineering and infrastructure projects. SEL’s business is based on aggressive marketing, timely completion of engineering projects and doing similar types of projects. Unlike AEIL, SEL does not have strong technical and engineering to complete mega and complex projects. In 2009, SEL has taken over AEIL from EIC with the following terms and conditions
1. AEIL will be renamed as Su Engineering Australia Ltd (SEAL).
2. SEAL will continue to own and use all technological licences and engineering standards and procedures of EIC for next 5 years.
3. For next 5 years EIC and any of its subsidiary cannot bid for any project and work in Oceania region without approval from SEAL.
4. SEAL will not bid for any new projects in field of transport as it is not a strong area of SEL, however will complete all ongoing transport projects with assistance from EIC. SEAL will absorb all the employees (60-75) working in transport related projects within SEAL or SEL.
5. All the employees of AEIL has to sign a new employment contract that has an additional clause on Secondment. According to this clause, SEL can secondment any employee of SEAL to anywhere in the world and to any organization.
6. With immediate effect all the employees will become employees of SEAL/SEL and none of these will be recruited by EIC or its subsidiaries for next five years. Secondment is the only option if they want to work in EIC.
7. SEL will depute a Chief Operating Officer for SEAL from its South Korean office. The CEO of AEIL will continue to work as CEO of SEAL The COO will work with the CEO to overseas the takeover process and to implement new policies thus creating a new work environment and culture in SEAL for its complete integration with SEL.
You started your engineering career as a graduate engineer in AEIL in 1983 at the time when AEIL was at its nascent stage of development. You received a systematic but rigorous training in engineering, project management and technology development at EIC’s centres in Europe and the USA. You imbibed the culture, values and beliefs of EIC. You have demonstrated your skills, dedication, sincerity, adaptability by working under very challenging conditions for 15 months for a project in remote Western Australia. AEIL and EIC has recognized your contribution towards the successful completion of the project and rewarded you well. Soon you obtained chartered engineers status from Engineers Australia. From 1990 to 1994 you worked on various projects in Australia and New Zeeland. You were then deputed to Germany for 2 years and after returning to Australia you got the role of Engineering Manager and then in 1998 promoted to the head of engineering and technical development. As a head of engineering you developed vendor network in Thailand for the supply and manufacturing of crucial equipment that resulted in reducing the cost of AEIL’s products and services by a big margin and established AEIL as a front runner in the market. This is the only experience you have on working with Asian clients. In 2006 you took over the role of CEO of AEIL. Under your leadership, AEIL has secured mega projects in Australia and Europe with the full support of EIC. After takeover of AEIL by SEL, you would continue to lead SEAL.
Although, top management of both EIC and SEL has projected the takeover of AEIL by SEL a seamless process, you know it is not like that. You think that takeover and integration of AEIL with SEL is a complex process with lots of challenges but with many new opportunities including inclusion of best of western and oriental work ethics and culture in SEAL
After a series of meetings with human resource manager (HRM), Head Business Development (HBD), and head of Engineering & development (HED) you framed the vision statement of SEAL. You and your team had a first direct interaction with the employees where you gave a 15 minute presentation followed by an open and free discussion with employees and a short interactive talk by the COO. The interactive session has sent positive message to the employees, your team was satisfied with the outcome and the first vital step towards complete integration has been taken. The major task is to complete the integration of SEAL with SEL, implement the changes, dealing with short and long term issues while keeping high the moral and motivation of the employees.
6.0 Task requirements
Prepare a detailed report of 4500 (±10%) words on your leadership role in SEAL. Your report should
• Capture the present scenario in SEAL.
• Short and long term challenges.
• Resolve identity crisis as AEIL become SEAL.
• Retention of workforce during the transition phase and after 5 years when they would be free to move back to EIC.
• Strategies for maintaining SEAL’s market (equivalent or better than AEIL) in Australian region and expanding to the regions where SEL has strong presence.
• Bring out changes in work environment to represent the best of oriental and western work ethics and culture
• Process of developing SEAL’s own engineering and technical practices, standards and procedures. Acquiring required technical licenses, accreditations and certifications.
• Crisis management team and crisis management plan.
• New organization structure and policies.
You should consider Kotter’s 8-Step Process for Leading Change, all the case studies, theories and discussions done during lectures, seminars and available unit resources in Cloud. The report will be evaluated according to the Criteria in Section 8.0 below.
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