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Case on Business Innvovation

August 11, 2016 07:04 AM 1
Member Since: August 11, 2016 07:00
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Case on Business Innvovation

Dear colleagues,
Below is an interesting example of Business Innovation. This  case study also suggest that organizational creativity `works' and when supported by able management and appropriate strategy, structure and systems, it delivers excellent performance.
Canada Post Corporation
Here is an example of innovativeness in what was once called hard – boiled government bureaucracy.
Until the early 1980s, Canada's Post Office was a widely lamented bureaucracy. It was huge operation with some 50000 employees and 19000 distribution outlets that handled some 40 million pieces of mail a day for delivery to 12 million households and offices.
It was prone to frequent strikes that sometimes deprived citizens of postal services for as long as six weeks. Even when no strike was on, postal delivery was erratic and slow. Over the years, the post office had accumulated a deficit of Canadian$600 million.
In the late 1981, it was turned into a more or less autonomous crown corporation with professional management and renamed Canada Post Corporation. It was given mandate to be business-like in its operations. Overnight there was, as it were a coat of paint and the Corporation turned innovative.
The Corporation began giving out its postal franchises. By the early 1990s, there was as many as 2500 privately managed retail outlets vending various postal products such as stamps, inland and international letters, registration for parcels, etc. This way the Corporation could enhance its distribution reach and efficiency with lower distribution costs.
The Corporation soon became a leading player in postal technology. Its National Control Center set up electronic systems that provided immediate, day –and night –long information on the status of surface shipments, weather conditions, etc. Satellite links with major truck-ing firms were created to provide real – time information on mal delivery operations. The Corporation also began to offer various e-mail services.
The Corporation set up a subsidiary to market its electronic technology and services internationally. It also entered into international joint ventures to provide an efficient international courier service covering 200 countries.

The bottom line? The Corporation turned profitable . In 1987, it handled nearly 60% more mail than in 1981, with nearly 20% less staff. Its cost of delivering a letter became the second lowest in the West. The Corporation funded its investments without government budgetary support. Outside auditors assesses its performance against published standards and found virtually 100% attainment.