Notes on the Needs of an Effective Organisation

Arthur Rothe's observations on the Power Struggle

THE NEEDS OF AN EFFECTIVE ORGANISATION

The basic rules for the development of any effective business/organisation apply to any type of commercial undertaking, be it a major multi-national company, a small business venture or a major football club such as West Bromwich Albion. It is important that shareholders satisfy themselves that these criteria are firmly installed into the day to day operational and business practices adopted by the undertaking. This is now particularly important to the shareholders of West Bromwich Albion, given the nature of the decisions that they now have to make.

Briefly, the rules for the development of an effective undertaking can be summarised as follows:

1. The medium to longer term Business Plans of the organisation must be clearly prepared and defined in writing, particular attention being given to needs, objectives, development plans, resource requirements, funding needs and arrangements, etc.
   Shareholders may be interested in questioning both Mr. Hale and Mr. Thompson about not only the availability of such plans, but also their future development and implementation. Of particular importance at the moment must be the source and availability of the funding required to improve significantly the present playing staff. Similar questions must also be raised in connection with the proposed purchase and development of the new training ground and the future development of the existing stadium. It is not unreasonable to expect Three Year Development Plans to exist, such plans being reviewed and updated on a regular basis.
2. The BOARD MEMBERS must be fully united and committed to the achievement of the Organisation's defined Business Plans.
   There are obvious problems in this area. It is important that shareholders are given information on future membership of the Board, particular reference being given to the nature of any particular skills, abilities and financial resources they may be able to provide. Obviously the need to bring additional capital into the club is important, although as proven at Wolverhampton, Blackburn, etc. this is no guarantee of success. Extra capital will only be used correctly when given to an effective organisation.
3. There must be a very close working relationship between the Chairman, Chief Executive and Manager
   Little information appears to be available about this key area of Albion's operations. It is important that shareholders satisfy themselves that the necessary close working relationships not only exist, but more importantly are actively pursued and encouraged.
   NOTE - IT IS IMPOSSIBLE TO OVERSTATE THE IMPORTANCE OF THIS KEY ORGANISATIONAL RELATIONSHIP, PARTICULARLY GIVEN THE FACT THAT CONSIDERABLE "WHEELING AND DEALING" WILL HAVE TO TAKE PLACE OVER THE FORTHCOMING YEARS TO DEVELOP THE PRESENT PLAYING STAFF. IN SIMPLE TERMS, THE CLUB HAS NO CHANCE OF SUCCESS WITHOUT THE EXISTENCE OF A STRONG, UNITED AND COMMITTED RELATIONSHIP BETWEEN THE CHAIRMAN, THE CHIEF EXECUTIVE AND THE MANAGER.

4. The required manpower resources must be made available.
   Clearly the overall failings of the present playing staff, etc. are fully reflected not only in the club's league position but, more importantly, in falling attendance figures. Shareholders will need to question the action that is to be taken to both retain key players and build upon the Club's present playing resources.
   Perhaps equally worrying is the regular change of management team that has occurred so frequently over the last few years. Every time such a change occurs results in the club adopting a new playing strategy, something that creates obvious problems, setbacks and confusion amongst the playing staff. Shareholders should question the future managerial policy of the parties concerned. (It is interesting to recall that people were once calling for Alex Ferguson's head at the end of his first year at Manchester United. I wonder what the position would be now if United had changed their manager as often as we have)

5. The need to maximise the use of available/planned assets
   Given the occasional use that is made of the Stadium and other key assets, it is important to examine ways in which their use can be extended and diversified to achieve economic advantage. This is particularly important when such developments are at the planning stage. For example, any future proposal to develop the "Rainbow" Stand should examine all possible economic / diversification opportunities that may be available, for example, dual use as a Hotel facility. Shareholders should question whether such opportunities will be actively pursued when technically justifiable.

SUCCESS OR FAILURE?

The adoption and implementation of the above set of Business rules do not in themselves guarantee success, although they are an essential ingredient in the process. HOWEVER, THE ABSENCE OF THESE KEY BUSINESS RULES IS A GUARANTEE OF FAILURE. In view of this, it is essential the shareholders question the following:

1. DO THE ESSENTIAL BUSINESS PLANS ACTUALLY EXIST AND ARE THEY BEING IMPLEMENTED EFFECTIVELY?
2. HOW CAN A FULLY INTEGRATED, COMMITTED, UNIFIED BOARD BE ESTABLISHED?
3. WHO WILL SIT ON THE NEW BOARD?
4. WHAT SKILLS, COMMITMENTS AND RESOURCES WILL BOARD MEMBERS BRING TO THE CLUB?
5. WHAT ADDITIONAL FINANCIAL RESOURCES WILL BE MADE AVAILABLE TO THE CLUB, FROM WHAT SOURCES AND UNDER WHAT TERMS?
6. DO THE ESSENTIAL CLOSE WORKING ORGANISATIONAL RELATIONSHIPS ACTUALLY EXIST WITHIN THE CLUB AT PRESENT? IF NOT, HOW CAN THEY BE INTRODUCED EFFECTIVELY?
7. HOW WILL THE REQUIRED MANPOWER RESOURCES BE BROUGHT INTO THE CLUB?
8. HOW WILL KEY MANPOWER RESOURCES BE RETAINED LONG TERM?
9. HOW WILL THE NEW BOARD MAXIMISE THE FUTURE USE OF AVAILABLE ASSETS?

FINAL THOUGHT

The Extraordinary General Meeting is probably one of the saddest days in the Club's history. Having said that, it is also probably one of the most important. Shareholders must take the opportunity to look forward to the future and decide what course of action is best for the Club. It is a difficult and challenging decision for everyone concerned, one that will require the most careful assessment. Let us hope that the meeting can be conducted in a careful and businesslike manner.

Related Articles

  The 1999 Power Struggle Diary

  The 1999 Power Struggle Soapbox

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