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Case
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Reference no. DPO-0032-E
Published by: IESE Business School
Originally published in: 2004
Version: 16.07.2004
Length: 21 pages
Data source: Field research

Abstract

In 2000, the Bayer Group defined a worldwide business strategy within which it proposed an organisational approach based on multi-country business lines, with a number of service centres. This case shows how, in 2001, the management board planned the design and implementation of the accounting and finance service centre, to be located in Barcelona, to serve all the group''s companies across Europe except those in Germany. The informal negative reactions to its creation that arose in the businesses led management to ask the internal auditing department to prepare a report that would allow a decision to be made as to whether to continue with the centralisation project or suspend it. In the face of the tendency of organisational change towards the centralisation of services, the case shows the type of defensive reactions arising from the human perspective, which can be strong enough to halt a project. The exhibits show: (1) the changes introduced; (2) the functioning of the service centre; (3) the details of the implantation process; (4) the project timing; and (5) the philosophy followed by those in charge. Despite opposition, from employees to managers, the centralisation process continued, thanks to the positive results of the internal audit.
Industry:
Other setting(s):
2002

About

Abstract

In 2000, the Bayer Group defined a worldwide business strategy within which it proposed an organisational approach based on multi-country business lines, with a number of service centres. This case shows how, in 2001, the management board planned the design and implementation of the accounting and finance service centre, to be located in Barcelona, to serve all the group''s companies across Europe except those in Germany. The informal negative reactions to its creation that arose in the businesses led management to ask the internal auditing department to prepare a report that would allow a decision to be made as to whether to continue with the centralisation project or suspend it. In the face of the tendency of organisational change towards the centralisation of services, the case shows the type of defensive reactions arising from the human perspective, which can be strong enough to halt a project. The exhibits show: (1) the changes introduced; (2) the functioning of the service centre; (3) the details of the implantation process; (4) the project timing; and (5) the philosophy followed by those in charge. Despite opposition, from employees to managers, the centralisation process continued, thanks to the positive results of the internal audit.

Settings

Industry:
Other setting(s):
2002

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