How did the company respond?
The company paid for an intensive managerial course for the new branch manager, as they concluded that the problem was his lack of managerial skills. And the situation took a slight turn for the better. The company therefore devised a 6-month managerial programme, hoping that the situation would then be resolved for good. This all took about one year. But the ultimate result was that the turnover generated by the Ostrava branch did not pick up substantially, and the interpersonal problems came to a head, resulting within a few months in the departure of one of the employees.
At this point, the company decided to run the zamestnanci.com diagnostic tool on the entire 15-member management team, at a cost of 28,500 CZK.
What did the results reveal?
The new Ostrava branch manager’s profile was that of a reliable, efficient and ambitious employee. That is why he thrived under the supervision of a capable manager, but proved utterly unsuitable for the team-leading post to which he was assigned.
Conclusion
The new Ostrava branch manager left the company, leaving his post to a candidate with a more suitable profile for this kind of post. The branch results quickly improved, almost reaching the original heights. The interpersonal problems were also resolved.
Having evaluated its approach, the company found out the following:
- The wrong decision on the managerial training cost the company almost 120,000 CZK
- The time the managers spent trying to sort out the situation cost the company in excess of 200,000 CZK
- Compared to its original level, the loss in terms of unrealised turnover at the Ostrava branch was more than 2 million CZK.
A bad decision led to the loss of more than 2.3 million CZK, two well-trained and efficient employees and the waste of a substantial amount of energy.