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Mr. John Mendzela
This paper examines how major efficiency gains and improved effectiveness were simultaneously achieved at the Reserve Bank of New Zealand over a five-year period. It identifies the business management concepts that were used to transform the organization, outlines how they were applied, and evaluates the benefits obtained. The paper concludes that substantial real efficiency gains were achieved, while effectiveness was maintained or enhanced. Looking more widely, the business management concepts used to achieve these benefits could be applied to other central banks.
Mr. John Mendzela

argue for recentralization. Management renewal: Decentralization substantially changed the skill mix required of line managers. Efficiency gains could only be achieved by substantially reducing the number of management personnel, and improving their quality. Management renewal was a major feature of transformation. Only 15 (29 percent) of the 51 line managers listed on the RBNZ organization chart in 1988 still held line management positions in 1991 ( Chart 6 ). Most of the others left the RBNZ. The 15 survivors were supplemented by an equal number of newcomers