Anti-agile Business-by-Contracts model bound to fail

In two previous posts ( first, second )  I’ve described the chaotic situation in Northern Stockholm’s public transportation system, after Arriva took over operations January 7th, 2013.

Now the leading Swedish bus industry trade magazine, “Bussmagasinet”, has written a “no-BS” editorial about the situation, with serious concerns regarding the larger scale implications  on the entire industry, as well as the society in general,  resulting from Arriva’s failure to execute.

[ edit 130221: Dagens Nyheter, a leading Swedish daily paper, presents two articles 2 on further problems for Arriva, with the Union now acusing  Arriva for mal-treatment of their staff]

Although this example of a grave “system failure” is from a very different domain, and has nothing to do with Systems and Software development,  IMO it provides an excellent illustration to what happens when an organization – or more correctly in this case: two organizations: Stockholm County’s Traffic Council, acting as the procurer and Arriva acting as the supplier – exclusively pursue “cost efficiency” (the former) and “shareholder value” (the latter)  and both parties forget everything about the end customers, the employees and true business value and outcomes.

The editorial is in Swedish, but Google translate does an _almost_ decent job of translation, here’s a link to the English translation of the text.

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About swdevperestroika

High tech industry veteran, avid hacker reluctantly transformed to mgmt consultant.
This entry was posted in Business, Leadership, Management, Organization and tagged , , , , . Bookmark the permalink.

One Response to Anti-agile Business-by-Contracts model bound to fail

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