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Taxi-recapitalisation project

BEMARKINGSBESTUUR PBSB 812
n Taxi-recapitalisation project

Vanessa Olivier Studente nr: 11944609

27/02/2010

Individual Assignment Change Management. 14 August 2010

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.... 3....................3 4....................5 Principle 5: The problem ± Polarity priciple ............................................ 2....7 Principle 7: The aligned commitment principle ......................4......... ... ..........................2.............. 10 Evaluation methodology .................................................... .......................... .................5...........2 4... ......................................... ......................................... 6 Evaluation methodology ..5................. .....................................................................1.....1 Principle 1: The purpose principle ......... 3 A short overview of the history of the project .............................4...... .................................. ............................................3 4...... Executive summary ..2 4................... 4 4........... .... ................2........................ 10 Conclusions ...... ............3.................4... ...... 10 I i i u ssi t h t u ust .................1 4........................2........ ... ....... ..................2 4............. 9 Evaluation methodology .............................................4 Principle 4: The diagnostic principle ...................3 4.. .......... ............................ ....................2 Principle 2: Clarify the need for change ............. .............................................. ............... 10 4............................................ 7 Evaluation methodology .......1........................ .... .................................................................................................. . .........................1.....6 Principle 6: Design a results orientated change strategy ........... ....3 4.............................................................................................................. .................................... ........ 6 Conclusions ............2 4........................................ ...........................................................6.. ...... 3 Evaluation of the taxi recapitalisation project from a change management perspective ..... ................ ........ 10 Conclusions .... .......................................................1 4....................... 4....... 9 The evaluation results and its interpretation .............. 10 Evaluation methodology ............. 5 Evaluation methodology ......6.......... ............................. 5 The evaluation results and its interpretation ............................... 10 Conclusions ..................INHOUDSOPGAWE 1......... ......3............................... 6 4......... 5 Conclusions ................. .. .............................3 Principle 3: Create / ensure leadership and stakeholder involvement ..........3...... ........ 7 4.................... ....... 10 4..................................................................1 4....... .......... .. ............5..................... 8 Conclusions .........1 4............................. ........................... ................. 9 4..........6..................... 3 The goals of the study .. ................. .. .................... 10 The evaluation results and its interpretation .......... 10 4..........2 4. ................... 6 The evaluation results and its interpretation ................. ....... ......................2 4............. 7 The evaluation results and its interpretation ......................................1 4......... ......................1 4.................................... ................ 10 The evaluation results and its interpretation ................... ..................................2 4.... ...................3 4..

.... ...... 11 Conclusions ..................................................... Reference list ......................3 4................9.........................9..... .........................9.... . .10.... ...2 4.............. 12 4............................. ................... ............. ..........................................10 Principle 10: The managerial leadership monitoring evaluation and transformational leadership principle ...8............................. 14 I i i u ssi t h t u ust ......................... ... .......... ...... ..................................................................................................................... ......................................................................... 13 23.............................7....................................10. ......... .............8 Evaluation methodology ............. ...........................................4.............. Recommendations to reach the goal of the taxi recapitalisation project as soon as possible................................ .............................. ........ 12 Conclusions ..................2 4.....9 Principle 9: The learning ± or new culture creation principle ..............7.... ....... .......7......10.......3 4.. 13 The evaluation results and its interpretation .8............................ ...................... ...............................................1 4....... ...................1 4............... 11 The evaluation results and its interpretation ...................2 4....... 11 Principle 8: Diagnose and manage apathy and resistance to change proactively ............. 13 Conclusions ........ 12 Conclusions .............................................................. .. ................. . .....................................................3 4... 12 The evaluation results and its interpretation .. 13 24............... ........8.................................... 12 The evaluation results and its interpretation ....................................1 4............ 11 Evaluation methodology .............................................................. 12 4............ .......................................2 4..... ..................... 12 Evaluation methodology ... .........3 Evaluation methodology ......... .....1 4...... .................. .............................. ..................... ..... 12 4.....

which have engulfed the ind ustry since its inception. together with the phenomena l growth came over-traded routes. a formal structure and effective control of its operations (Memorandum. The continuing conflict and constant threat of violence in the industry attests to the failure to create effective mechanisms and structures to control and regulate itself to resolve conflict and contain violence. Executive summary 2. 1999). a high incidence of conflict and violence and an appalling road safety record. Some of the task team¶s recommendations were that the minister of Transport should regulate and formalise the industry and work towards economic empowerment. which ultimately saw all taxi organisations agreeing to work together. The NTTT reported that the minibus taxi industry is not regonised by government and also lacks economic empowerment. 2001:1). The minibus -taxi industry grew from a neglible informal operation to the dominant polyer in the public transport industry accounting for an estimated 65% of passenger journeys (Oosthuizen and Mhlambi. 1999).1. In 1992 the National Taxi Task Team (NTTT) was set up to investigate the causes and ways of ending the conflicts. These recommendations led to negotiations between government and the taxi organisations. Accoording to a memorandum of understanding entered into by the Minister of Transport with the Ministerial Conference of Minister of Transport and the South I i i u ssi t h t u ust 3 . A short overview of the history of the project The minibus-taxi industry in South Africa has grown at a phenomenal rate since the early 1980¶s to 1995. The goals of the study The aim of the research is to 3. Today the taxi industry provides transport for 5 to 10 million people every day and has a daily turnover of R15 million (Weekly Mail & Guardian. Unfortuanately.

Noannouncement has been made yet and on 24 November 2003 Transport Minister Dullah Omar extended the deadline for replacement of old vehicles to 2010. The plan includes taking the country¶s present fleet of 120 000 minibus taxis off the road and replacing them with larger. Minerals and Energy and Finance. jointly developed by the Department of Transport.African Taxi Council on January 20. The slowdown is obvious from the intended announcement of t he final contract winners in July 2000 and the fact that the new vehicles were suppose to appear on the roads by January 2001. 2000. stronger safer vehicles equipped with smart cards to ensure they stick to registerded routes. (Pe . 2000:06) ¡   A new plan has been designed to deal with the problems that hav e rendered South Afric¶s taxi industry uncontrollable. Under a recapitalisation project. These and other factors have delayed the government¶s plans to formalise the industry and provide assistance through the recapitalisation project. commercial and fiscal incorporation of all relevant business entities involved. the government will subsidise existing taxi owners to help them buy the new 18 to 35 seat taxis.and 35seater diesel-engine public transport vehicles. Afinal implication of this formalisation of the taxi industry will be the legal. Trade and Industry. Negotiation between government and South African National Taxi Council (SANTACO) has been progressing slowly and has reached deadlock on occasion. (Fourie 2 -3 2003) 4. However. the recapitalisation project carries the risk of upsetting established power relations and generating conflict. the final steps of the Government¶s Transformation and Recapitalisation of the South African Taxi Fleet Project. as with all new developments in this volatile sector. wit ha major source of revenue for the SA Revenue Service becoming part of tax net. Evaluation of the taxi recapitalisation project from a change management perspective Whe do some hing change? ¢ I i i u ssi £ t h t u ust . will see the entri 120 000 national mini -bus taxi fleet replace by a new 18.

can result in the inability to convert plans into action. I i i u ssi t h t u ust 5 .2 The evaluation results and its interpretation Government e ists and through the policy-making process.When is the e a need to change? When will the change management effort be successful? ¤ 4.first proposed in 1999 . Such is the premise of government intervetion in developing the Taxi Recapitalisation Policy. The expected end results also serve as criteria to evaluate the eventual success of the project.would replace the country's ageing taxi fleet. 4.1 Principle 1: The purpose principle Determining the reasons for change Establishing the desired end -result of the project The programme . The focus should be on the outcomes of the plan and not on processes.1. effective. estimated at 97 000 vehicles. The tendency to focus on the objectives instead of understanding the why behind the needed change.1 Evaluation methodology The lack of understanding of what the purpose of the change is. affordable and accessible taxi operations by introducing New Taxi Vehicles (NTVs) designed to undertake public transport functions in the taxi industry.1. It is also important to determine if a real need for the ch ange exists. Understanding the purpose of a plan gives us an understanding of the reasons for change. ¥ The apparent chaos in organisation of the taxi industry had become dysfunctional to human welfare that it required Government intervention. reliable. 4. The TRP is an intervention by Government to bring about safe. to regulate affairs of constituents for porpose of promoting human welfare.

usage and revenue. Introduction of safety requirements for passengers in the NTVs. 7. II. 15. VI. Branding and colour coding of taxi vehicles so that legal taxis could be identified and differentiated from illegal ones. The programme also sought to ensure the sustainability of the industry as a business. 14. 8. money and other resources expenditure. Will the result be worth the effort. Improve the convenience to travellers. 12. Most of these vehicles are largely in excess of nine years old. Migrate from a cash-based fare payment system to a cashless fare payment system. The overall goal of the TRP initiated by Government in 1999 is the replacement of the current ageing fleet that constitute the bulk of the taxi industry with new vehicles that are safe and reliable.2 The evaluation results and its interpretation The taxi industry in South Africa has had a chequered history by being informally organised and with activities fraught with problems of violence. 21. 1999). accidents. 13. 4. 16. 4. Affordable operations.1 Evaluation methodology The necessity principle Determine the specific need for change Is the change neccesary Will the result of the change be an asset which do not yet exist. The impact of this situation on the country s public transport system is significant. (Mabasa. 18.1. Monitor route operation. since 65% of all commuter trips nationally are undertaken by means of the minibus taxis. tax evation and unbecomming driver conduct. 19.2 Principle 2: Clarify the need for change 5. I i i u ssi t h t u ust 6 .4. ‡ Promotion of accessibility on the size and number of seats in the NTV. Improve the safety of travellers. 17. 11. and also that members of the public can easily identify a taxi vehicle. 10.2.3 Conclusions 4. TRP is about extending subsidized contract by exploring mechanisms on how the industry can benefit from the subsidy system. VII. 6. V. as well as ensure its formalisation and effective regulation. III. ‡ Comfort for passengers by insisting on the size and number of seats in the NTV. deaths. Monitor critical parameters in the vehicle and report deviations. unroadworthy vehicles. 22. 9. IV. Improve the quality of service of the taxis.2. There are presently approximately 120 000 minibus taxi vehicles on our roads. 20.

Involvement=KnowledgexInformationxRewards and recognition x empowerment. 1999) This announcement resulted in outcries from association members. Currently the taxi industry has an official representation through the South African National Taxi council (SATACO). 1990:73). particularly the National Taxi Drivers Organisation (NADTO) and other organisations provoked by the issue concerning the I i i u ssi t h t u ust 7 .3 Conclusions 4.1 Evaluation methodology The process of regulation was a function of interaction of official and unofficial participants namely: The Department of Transport Commision of Inquiries.3.3 Principle 3: Create / ensure leadership and stakeholder involvement Change must be both led and managed. Involvement of all stakeholders 4. Leadership involvement = how effective leaders use embedding mechanisms and the aligned commitment equation tog et proposed plans implemented. which is a federal structure indentified in a list agreed upon during the taxi plenary held on 18th July 1998 (Moyle.4. South African Transport and allied Workers Union (SATAWU) as one of the giant influencial structure reinterates its support for the recapitalisation project Taxi owners Taxi associations (as interes tand pressure groups) During the late 1970s the South African black Taxi Association (SABTA) served as the umbrella which embraced some 400 affiliated local associations (McCaul.2.

Regulatory Authorities ± This class includes users such as the DTI.rcapitalisation policy. etc. either as a fleet owner or as a Driver / Owner. Financiers ± This class includes all the persons / institutions that will provide f unding to finance the purchase of the minibus taxis. or as a Driver / Owner. Traveller ± This class of user includes all persons who utilize the taxi as a form of transport. NADTO argued that the recapitalisation of the taxi industry would result in over 41 000 job losses when the current strong taxi fleet is replaced with the new 18 to 35 seater diesel powerd taxis. Vehicle Manufacturers ± Parties responsible for supply and maintenance of the minibus taxis.3. 2000:06) Taxi drivers The restructuring of the taxi industry is seen by most taxi owners and drivers as an infringement of their rights unlawful interference and unilateral decision to scrap the taxi fleet (Mashabela. MS Karin Pearce (Project Head) stressed that the replacement of the fleet will have wide ranging economic and social benefit for the country (Monare.2000:03) Banks Insurance companies The replacement of minibuses implies that even manufacturers are going to be affected. South African Reserve Bank ± This is the regulatory authority for money transactions. which would subsequently have filtered down to commuters by means of rising taxi fares. NDoT. the law enforcement agencies. Insurers ± This class includes all persons / institutions that will provide insurance services for the new v ehicles. hence more strikes were encountered. 2000:6) Commuters According to a report in a newspaper. roads were blocked and there was the random shooting of those who refused to be in support of the strike. Taxi Driver ± This class include all persons who drive taxis. Taxi Operator ± This class includes all persons who own taxis. IV. VII. III.2 The evaluation results and its interpretation Radebe said at the time that the previous programme was neither ³affordable to the national fiscus nor profitable 4. V. VI. II. either as an employee of an owner. (Pela.3 to the operators´. VIII. I i i u ssi t h t u ust 8 . 4.

Is the focus of the change intervention on an individual.4.4. total organisation A gap analises between the purpose and the need for change. Should this gap be bridged with either reformtional changes. 4. they are ten (10) years old and are therefore not fit for 4. a group. On average. in order to achieve the purpose.1 Evaluation methodology Positive Negative y y y y Informal unregisted Tax evation Violence High accident rate (the public and innocent road users are the most harsly affected) I i i u ssi t h t u ust 9 . The replacement value of the current fleet is roughly R15 billion. unit or departmental level.3 public transport operation. Currently there are approximately one hundred and twenty six thousand (126 000) taxi vehicles in South Africa.2 Conclusions 4. or transformational changes or both. as well as what the present negatives (weaknesses) are which should be managed or eliminated. or on a system level.4 Principle 4: The diagnostic principl e In a change strategy attention should be given to how existing strengths are to be used to convert plans into action and to solve problems Determine the present positives (strengths) that can be capitalised upon. conflicts. or polarities. And determine which issues are problems. team.3.

6.3 Conclusions 4.6.y y y y Illegal permits Overcrowding Fighting over passengers 4.) 4.2 The evaluation results and its interpretation 4.5.4.5.5 Principle 5: The problem ± Polarity priciple It is necessary to distinguish between problems that can be solved. 4.1 Evaluation methodology 4.3 Conclusions 4.4.1 Evaluation methodology 4. but which must be managed.2 The evaluation results and its interpretation 4.7 Principle 7: The aligned commitment principle I i i u ssi t h t u ust .5. The results orientated change strategy is directed at bridging the gap between what we want to achieve .2 The evaluation results and its interpretation 4.6 Principle 6: Design a results orientated change strategy The integrating principle All processes and interventions must be results directed.6. to achieve the purpose (create the new asset. and dilemmas or polarities which cannot be solved.3 Conclusions 4. where we want to be and where and what we are now Laeders baises for specific interventions should not enter decision processes regarding selection of change tools.

training. (stategies include negotiation. and calitions) 3. Steps in the management of resistance to change: 1.environment/culture) 5. stikes & boycotts}. co-op.agressive{Blocking.terrorising) 4.7.Aligned commitment = Involvement x shared vision and shared value system.8 Principle 8: Diagnose and manage apathy and resistance to change proactively This includes indentifying possible sources of resistance. Aligned commitment = Knowledge x information x rewards and recognition x empowerment x shared vision Being part of The implication is that all stakeholders are focused on the same end result / outcomes and are commited to it. develope and implement specific resistance management strategies directed at resistance of each source.ative {opposing points of view. Evaluate the success of the resistance management effort (manage it) I i i u ssi t h t u ust . groups. the kinds of resistance and managing these pro-actively and effectively. (culture and past management) The taxi industry was not regarded as a formal business in South Africa.subversion. info. Select. 4.1 Evaluation methodology 4.2 The evaluation results and its interpretation 4. 2. the reasons for resistance of these sources.social system.sabotage. Identify sources of resistance (individuals.3 Conclusions 4. rewarding or aligned commitment equation) 6. by implication its activities were not recorded in official figures.destruction. Determine the nature of resistance (passive-{negative perceptions and atitude}. Diagnose reasons for resistance (Phenomena based in individual.7. Determine system s readiness and susceptibility to change.killing.7.

Learning culture 4. and commuters) within the industry since in was published in 1999.4. there have been demonstrations.8. Amongst other reactions. drivers. not only to convert the existing plan into action but also to support future planning-to-action conversions.1 Evaluation methodology 4.9.9 Principle 9: The learning ± or new culture creation principle Change adeptness is a prerequisite for future survival and growth.2 The evaluation results and its interpretation 4.8.1 Evaluation methodology Government s stabilising solution.8.9. and marches as negative feedback from taxi industry due to the restructuring policy proposed by the Department of Transport.3 Conclusions 4.9. has culminated in mixed feelings among stakeholders (taxi owners.2 The evaluation results and its interpretation 4.10 Principle 10: The managerial leadership monitoring evaluation and transformational leadership principle ³to make your team succesful´ Monitoring and the evaluation of progress are instrumental. Change in the existing value system Create a change conducive culture. The culture should change to support the new behaviour learned. I i i u ssi t h t u ust .3 Conclusions 4. 4.

10.1 Evaluation methodology 4.10.2 The evaluation results and its interpretation 4. Recommendations to reach the goal of the taxi recapitalisation project as soon as possible. The ability tou se feddback as a change tool Begining of a new cycle 4.Transformational leadership.10.3 Conclusions A model for converting plans into action The evaluation test for the successful convertion of plans into action: Is the purpose realized? Is an asset created? The extend of stakeholder ownership of the end result? Sustaining Momentum ‡ Provide Resources for Change ‡ Build a Support System for Change Agents ‡ Develop New Competencies and Skills ‡ Reinforce New Behaviors ‡ Stay the Course 23. I i i u ssi t h t u ust 3 .

brand loyalty and their relationship in grocery markets. S. 11 Issue 4. A. J. S. KNOX. Jun2001. R. & SWAIT. p271 -286. Vol. p250 -263. Consumers' true brand loyalty: the central role of commitment. 6 Issue 4. & WALKER. KNOX. there are several transport multi-modal questions that must be answered by the proposed NATMAP if this Project is to become the success story of our transformation in the transport sector . & WALKER. Empirical developments in the measurement of involvement. The Effect of the Relationship of Brand Trust and Brand Affect on Brand Performance: An Analysis from Brand Loyalty Perspective (A Case of Instant Coffee Product in Indonesia) (2006).The Department¶s Taxi Recapitalisation project is at an advanced stage. Dec2003. Journal of Brand Management. R. Antecedents of true brand loyalty. Journal of Strategic Marketing. I i i u ssi t h t u ust . 9 Issue 2. 37 Issue 2. Vol. Measuring and managing brand loyalty. The main objective of this project is to gradually replace obsolete vehicles with new vehicles. Vol. Vol. MORRIS. Journal of Strategic Marketing. Journal of Strategic Marketing. S. p99 -117. J. p305 -319. D. 1999) Their recommendations included a move to larger 18 to 35 -seater vehicles. D. Journal of Advertising. Reference list AMINE. Apr2005. E. D. The brand loyalty life cycle: Implications for marketers. However. 24. Summer2008. Available at SSRN: http://ssrn. BENNETT. HALIM. Dec98. & RUNDLE-THIELE. The NTTT (National Taxi Task Team established in 1995 to investigate problems and development issues facing the minibus taxi industry) (Moyle. J. 12 Issue 4.com/abstract=925169 KIM.. Vol. p111 -128.

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