In June 2005, Koldo Saratxaga, leader of the Basque-based luxury goods manufacturer Irizar coach, decided to leave after 14 years at the helm of the worker-owned cooperative. Under the leadership of Saratxaga, in Irizar was saved from near bankruptcy in 1991, and became very profitable industry leader with a 23.9% compound annual growth rate since 1991. The company opened a number of production sites as far-reaching as Mexico, Morocco, India, Brazil, China and South Africa. Irizar calls itself "a project based on people" and realized his success through business model is characterized by a narrow focus of the product, strict adherence to quality, authorized employees, and truly customer-centric organization. Irizar model is completely different from most other coach manufacturers in the absence of trade unions, divisions and hierarchies. All activities are self-managing teams (teams, for example, are responsible for establishing a schedule and tasks). Although the model Irizar's worked fantastically well for over 14 years (since the arrival Sarataga author), now the question is: Will the company continue to thrive without Saratxaga? Or is success Irizar in connection with the management Saratxaga in?
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by Ramon Casadesus - Masanell, Jordan Mitchell Source: Harvard Business School 26 pages. Publication Date: March 15, 2006. Prod. #: 706424-PDF-ENG
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