Instructor Resource
Rowe, Cases in Leadership 5e
SAGE Publications, Inc., 2019
Case Notes
Case 12.1: Constructing the Medupi Power Station
Dr. Caren Scheepers and Schalk Marais wrote this teaching note as an aid to instructors in the
classroom use of the case Constructing the Medupi Power Station, No. 9B12C015. This teaching
note should not be used in any way that would prejudice the future use of the case.
Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or
transmission without its written permission. Reproduction of this material is not covered under
Teaching Note
Case Synopsis
The case illustrates the impact that clear direction, employee participation and relentless
performance management have on a large-scale construction project. It explores a series of
Instructor Resource
Rowe, Cases in Leadership 5e
SAGE Publications, Inc., 2019
Course Usage
The case can be used in HBA or MBA courses such as organizational development, leadership,
Assignment Questions
Faculty could utilize the following four assignment questions in class discussion or as exam
questions.
1. Would you describe the initiatives at Medupi as organizational development, change
or transformation?
2. How successful was the leadership at Medupi in achieving its vision to “reconstruct
construction”?
Analysis
1. Would you describe the initiatives at Medupi as organizational development, change or
transformation?
Organizational Development and Change
Instructor Resource
Rowe, Cases in Leadership 5e
SAGE Publications, Inc., 2019
Organizational development (OD) is defined as “a system wide application and transfer of
behavioural science knowledge to the planned development, improvement, and reinforcement of
the strategies, structures, and processes that lead to organization effectiveness.”3
The main difference between OD and organizational change is in their value orientation.
OD “supports values of human potential, participation and development.”4 Performance and
Organizational Development and Transformation
“Transformation involves paradigmatic change, whereas organizational development creates a
better fit between an organization’s capabilities and its environmental demands”10 (see Exhibits
TN-1 through TN-4).
The following points illustrate transformational change at Medupi:
• The basic premise of “reconstruct construction” constituted a paradigm shift and
fundamental change from the status quo in the construction industry with its short-term
focus and authoritarian management style. It represents a replacement of a paradigm with
2. How successful was the leadership at Medupi in achieving its vision to “reconstruct
construction”?
In evaluating the success of the leadership at Medupi, we could utilize John Kotter’s eight steps
to transform organizations as a framework11 (see Exhibit TN-5).
Step 1: “Establishing a sense of urgency”
The case illustrated the high demand for electricity. The building of Medupi was long overdue.
In 2007 and 2008, the extensive power cuts created a crisis for most companies and households.
Step 2: “Creating the guiding coalition”
Coenie Vermaak (project director) and Schalk Marais (director of organizational performance)
initially constituted the guiding coalition. They advised the management team on the way
Step 3: “Developing a vision and strategy”
The management team developed the Game Plan to illustrate the vision (“We bring power to the
nation”), Medupi values, vital elements and leadership philosophy. The goals were zero harm (or
Step 4: “Communicating the change vision”
Vermaak was non-negotiable on the way things were done at Medupi and came across as
strongly in favour of the Game Plan. At the end of 2008, workshops with all employees assisted
with the communication of the change vision. These employees were involved in establishing the
Step 5: “Empowering broad-based action”
In the Medupi case, leaders of the Medupi joint venture exemplified the behaviour
expected of employees, such as wearing safety gear. The Invocom sessions were chaired by
managers: they were visibly supporting this initiative by attending lower-level Invocom sessions.
Public declarations of these leaders converting to Invocom methodology assisted in
supporting the change. The performance management system was assisted by scorecards with
Instructor Resource
Rowe, Cases in Leadership 5e
SAGE Publications, Inc., 2019
Step 6: “Getting short-term wins”
The Medupi “striker of the month” initiative assisted in recognizing and rewarding those
employees who exemplified the Medupi values. The last point on the agenda of each Invocom
session was recognition of team members. A newsletter published coverage of recognition
ceremonies.
Step 7: “Consolidating gains and producing more change”
The case illustrates that Invocom sessions assisted in instilling a culture of accountability. Team
members would rate each other on their code of conduct. Recognition was recorded and passed
on to higher levels of management. Foremen consolidated each team’s results every day and
Step 8: “Anchoring new approaches in the culture”
Operational results indicated improvements and achievement of goals, illustrating that the input
in terms of organizational systems and the “Vital Elements” produced organizational success.
3. How could progress be accelerated and alignment improved with other contractors on
the Medupi construction site?
A class discussion could be held on different methods of accelerating construction and
improving alignment.
At Medupi, the following actions were taken:
• Progress on the Medupi Construction site was sometimes inhibited by contractors waiting
for one another since contractors had to finish their work before another could begin
work in a specific area. For example, while contractors were working on the stacks,
concrete could not be casted on the ground below. Coordination between contractors had
The Invocom sessions were also effective in communicating the sense of urgency with respect to
the acceleration of the construction. The project director had commissioned the client, Eskom, to
assist with establishing a sense of urgency. Eskom’s site engineer emphasized on numerous
occasions the high demand for electricity and the necessity of increasing the pace. As the
4. As project director, how would you ensure that the changes are institutionalized at
Medupi even after you have left the project?
A discussion on institutionalization could be directed by relevant theory, such as the following
framework:14
Organization and intervention characteristics are important factors influencing
Organization characteristics
Instructor Resource
Rowe, Cases in Leadership 5e
SAGE Publications, Inc., 2019
Various characteristics of a specific organization may have an influence on the degree of
institutionalization of interventions—such as unionization and the stability of the environment, as
well as congruence. Congruence can best be defined as the degree to which a specific
intervention is experienced as being in line with the company’s managerial philosophy, its
strategy and structure as well as the institution’s current environment (including other changes
Intervention characteristics
Various intervention characteristics may influence the degree of institutionalization of
interventions, including goal specificity, programmability, level of change target, internal
support and sponsorship. Goals should be as clear and specific as possible. Goal specificity
assists in directing socializing activities toward particular behaviours that may be required for the
