PEOPLE.IDEAS.PERFORMANCE

67 ,//8675$7,9( &$6( 7KH 9LUJLQ *URXS The Virgin group is an example of a power culture at its most effective in terms of organizational effectiveness and sustained high levels of performance. The development of the Virgin group from magazine production, music, video and film and DVD distribution has been successful over long periods of time. To expand into such diverse areas of operation as airlines, railways, publishing, financial services and clothing required extensive research, projections, expertise acquisition and market understanding on the part of what was hitherto essentially a standard retail activity. The Virgin group, and its owner and chief executive, Richard Branson, perceive that there are certain key and critical assets which are extremely valuable whenever they move into other areas (Branson 2011; Branson 2014). These assets include: ● a large customer base; ● strong UK image; ● reputation for quality; ● overall public confidence. However, as the stage of developing each new venture, these qualities had to be refashioned in order to give the development its own distinctive identity. Moreover, any failure on the part of the new venture could have had serious consequences for continuing and future confidence in the rest of the group’s activities. The decision to enter into new ventures is always taken by Richard Branson. The approach to involvement in new ventures, and performance development in each, is based on some basic guiding principles, which have never changed since the company was founded. These principles are: proposed new sector of activities must already be well established and served by other providers the service provided by other providers must fall short in some way-especially perceived customer satisfaction; there must be commercial potential unprofitable opportunities for engagement in the Virgin way; there must be potential for developing the sector using the existing Virgin customer base; there must be a sense of fun and adventure. Provided that any proposal meets at least four of these points, the company will consider it seriously. As above, however, Richard Branson always takes the final decision. In terms of performance management, the principles give basis for both extrapolation at the consideration stage, and also points of address once the venture is up and running. Richard Branson additionally structures the organizational and cultural priorities as follows: ● the quality and commitment of the staff are the top priority; ● customer satisfaction is the second priority; ● financial performance is the third priority. Stating the case for this order of priority, Richard Branson asserts that, only by concentrating on the quality of staff can effective customer satisfaction and service be delivered; and only through ensuring customer satisfaction and high levels of service, are profits generated, and the long-term future of the organization secured. 7DVN FXOWXUH Organizations where teams are formed to achieve the targets or solve critical problems follow the task culture. In such organizations individuals with common interests and specializations come together to form a team. There are generally four to five members in each team; anything bigger than this becomes unwieldy. In such a culture, every team member has to contribute equally and accomplish tasks in the most effective and productive way.