A Need for More Speed

1. Read the text.

Pearl, which specializes in the low to middle income end of the life assurance market, was in crisis when Richard Surface, an American, arrived from Sun Life. Market share was failing, costs were rising, the product range was too complex. “The best of the salesforce were leaving, the worst were hanging around, productivity was dropping and we were selling uneconomically,” he says.

His solutions were radical: completely changing management, cutting back costs and halving the product range. Twelve out of fourteen top managers were replaced with four “outsiders” chosen to provide a broader perspective. The most important reform concerned the salesforce. Instead of having one sales agent covering an area, Pearl introduced teams of three – an area manager and two agents – covering a wider area. It was a delicate task, not just because it involved cutting more than 1,000 jobs but because it also meant pay cuts for some who stayed. While some agents were promoted to area managers, the two “supporting” agents had less responsibility.

Mr. Surface insisted on implementing this new structure in a few weeks. He believed the salesforce was anxious and further uncertainty would be bad for the company. “We go fast around here. We don’t plan everything in micro detail. We accept we are going to make mistakes.” He has some blunt advice for the companies when it comes to getting staff behind a big upheaval: “Too many companies think you have to communicate with everybody in the same way. You have to segment your staff for the same reasons and in the same way as you segment your customers.”

Mr. Surface identifies three types of employee: high flyers, “anxious” people and the “cynics and refuseniks”. Anxious people want certainty and leadership, he argues, while refuseniks are basically lost causes. “Many managements make the huge mistake of trying to convince them and turn them round. We didn’t. We drove round them. We don’t waste time trying to convert the unconvertible,” he says. “You don’t have to bring all staff with you in a major change. You need a coalition. You start with vital few in key jobs, the anxious will follow, and the cynics will step aside.”

The figures suggest Pearl got it right. Operating costs were 411 million pounds in 1995 but the following year were 265 million pounds. Market share recovered to 2.2% from 1.5% in 1995, but it is still well short of the 6% level achieved in the 1970s.

By Christopher Brown-Humes

From the Financial Times

2. These statements are all false. Scan the text and correct them:

1. Pearl is a manufacturing company.

2. Richard Surface had been there for a long time.

3. The worst people in the salesforce were leaving.

4. The best people in the salesforce were staying.

5. Most top managers were kept on.

6. Outsiders were not recruited because they didn’t know the company well enough.

3. Choose the correct alternative:

1. High flyers are people...

a) with a lot of ability.

b) who have a very theoretical view of the world.

c) who fly when they go on business trips.

2. A “Refusenik” is...

a) a formal word for a salesman.

b) an informal word meaning someone like a beatnik or hippie.

c) an informal word meaning someone who tends to refuse all new ideas.

3. Someone who is anxious is...

a) worried.

b) confident.

c) brave.

4. Surface introduced sales teams of...

a) two people.

b) three people.

c) four people.

5. Surface communicated his plans...

a) to each employee individually.

b) to all employees in the same way.

c) to the three types of employees in three different ways.

6. Surface worked fast because...

a) he was on a short contract.

b) he didn’t want the uncertainty to last a long time.

c) the company was about to go bankrupt.

4. What do these figures refer to in the text?

1. 2.2

2. 12

3. 411

4. 14

5. 265

6. 1995

7. 1970s

8. 1.5

9. 1000

10. 1

11. 2

12. 3

5. Insert prepositions where necessary:

1. Mr. Surface has some blunt advice ___ the companies when it comes ___ getting staff ___ a big upheaval.

2. Many companies think you communicate ___ everybody ___ the same way, but you have to segment ___ your staff ___ the same reasons and ___ the same way as you segment your customers.

3. Pearl, specializing ___ the low ___ middle income end ___ the life assurance market, was ___ crisis when Richard Surface arrived ___ Sun Life.

4. We don’t bring all staff with us ___ a major change, but we start ___ vital few ___ key jobs.

5. The best ___ the salesforce were leaving ___, the worst were hanging ___, productivity was dropping ___.

6. Reread the first two paragraphs and find the words that describe these things at Pearl before Richard Surface’s changes.

a. costs

b. market share

c. productivity

d. product range

e. Surface’s solutions

7. Find all the irregular verbs in the text and compose sentences of your own using them.

8. a) Match the words to build new word combinations:

1. to step	a. range
2. to replace	b. in crisis
3. sales	c.fast
4. to sell	d. job
5. further	e.costs
6. dedicate	f.upheaval
7. to be	g. of employee
8. to radical	h. agent
9. to provide	i. managers
10. product	j. income
11. big	k. a perspective
12. to cut back	l. uneconomically
13. key	m. uncertainty
14. middle	n. solution
15. a type	o. aside

b) Translate these word combinations.

c) Try a group activity! Snow-ball story-telling.

The whole group is involved (maximum 15 people). One by one invent a sentence that would be part of the story. In each sentence use one of the word combinations above. Once used word combinations can not be repeated. The last person tries to bring the story to a logical end.

9. a) Jumbled words. Put the letters on their correct places and read these words.

b) Make 1 sentence, including all these words in it.

1. ARALIDC

2. SAKETIM

3. TEGNEMS

4. UTUCRESTR

5. NILIMOL

10. Task for the smartest! You have to unscramble this puzzle and read one complete phrase taken directly from the text of the article. You can do it by putting correct letters in the squares. The options are listed vertically, so, for example the first word consists of three letters and has the following options:

1. For the first letter: T O M A

2. For the second letter: P N L R H

3. For the third letter: C T E E O E

The correct answer for the first word is in bold type. Good luck!

As soon as you can read the hidden message express your opinion.

Do you agree it was the right decision or not?

KEY:

5. 1. for, to, behind; 2. with, in, –, for, in; 3. in, to, of, in, from; 4. in, with, in; 5. of, –, around, –

8. 1. o; 2. i; 3. h; 4. l; 5. m; 6. c; 7. b; 8. n; 9. k; 10. a; 11. f; 12. e; 13. d; 14. j; 15. g

9. 1. radical; 2. mistake; 3. segment; 4. structure; 5. million

10. Key phrase is: “The most important reform concerned the salesforce.”