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In the early 1980s, Lucas fell into loss making for the first timein its history, despite being well into a programme of closing 25 plantsand shedding 25,000 people. It faced declining shares of decreasingmarkets and a vulnerable dependence on the UK automotive industry. By1988 the group had climbed from loss making to a return on capitalexpenditure of 25 per cent. The article describes the pivotal roleplayed in the turnaround by an internal consultancy unit set up in 1984.The unit worked on an armslength trading basis with its clientbusinesses in Lucas. It employed a style which both encouraged clientownership and enhanced client skills. Conclusions are drawn about thelearning mechanisms which were established to redevelop core competenceand personal comments are added about lessons learned.
Industrial and Commercial Training – Emerald Publishing
Published: Jul 1, 1991
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