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Unit3CaseStudy.pdf

BU307 Unit 3 Case Study

The city of Lyon is located in the central part of France, about two hours south of

Paris via TGV. It has a long and rich history as the capital of Gaul in the Roman Empire,

a worldwide center of silk production, and a stronghold of the French resistance during

World War II. Today, Lyon is the third largest city in France, has a thriving high tech and

pharmaceutical industry, and is considered the gastronomical capital of a country known

for its cuisine and wine. Unfortunately, with size and industry came pollution,

overcrowding, and traffic jams. In the mid-1990s, only 18% of its citizens had easy

access to public transportation versus 30% in other towns of equivalent size.

By 2000, Lyon's city government had constructed an above-ground light rail system to

complement the existing underground metro and bus network in an effort to extend

public transportation to more people. However, the outdoor station's stops needed

shelters to protect waiting passengers from the wind, rain, and snow. In an innovative

program, the marketing and advertising firm, JCDecaux, in cooperation with Lyon's

development office, created “street furniture” to house the benches, ticket vending

machines, route maps, and time tables. JCDecaux constructed and maintained the sites

in exchange for the revenue from advertisements placed on the shelters. The program

was a win-win for both organizations.

The success of the cooperative tram and bus shelter project, and the city's

continued interest in easing pollution and traffic jams in the commercial center of the

city, led them to seek out additional change. They asked JCDecaux for input. JCDecaux

had been testing the idea of a self-service bicycle program in Vienna, Austria and

Córdobo and Gijon, Spain and they proposed adopting and implementing a “bike

exchange” network in and around Lyon in mid-2002. For Lyon and its neighboring city of

Villeurbanne, it was a risky and large-scale proposal.

The vision—common now in many European cities, but completely novel at the

time—was that commuters and pedestrians could pick up a bicycle at installations

around the city—near metro stops, businesses, or large public venues—and use it to

shop, go to work, or simply get from one part of town to the other more conveniently

than a car or the bus, metro, or light-rail system. The original idea was that the bike

could be used for free for less than an hour and at very low prices if used for longer

periods. (To get a picture of the system and its different parts today, go to

www.velov.grandlyon.com .) “It is our intent to turn bicycles into a mode of daily travel

for workers in the city,” said one government official.

An initial budget of €2 million per year was estimated to invest in bikes,

registration systems, installations, and support operations until about 2007. To support

the project, the city also envisioned construction or remodeling of several parking

garages to encourage people to park their cars on the outskirts of town and then pick up

a bike to finish the commute. Two parking garages in the downtown area had already

begun offering free bicycles for those who parked their vehicle there.

The project—named Vélo V—was presented by the city's mayor before the second

annual “day without a car” festival. Vélo V would be managed by JCDecaux. They

would own and maintain the bikes and finance operations through advertising receipts.

The head of the city's development function suggested that it was a bold attempt to

“effect a radical change in the philosophy” of the urban community. At the time, less

than 3% of the people in Lyon used a bicycle, against 10% in Strasbourg and other

cities. The proposal was supported by Les Verts, France's Green political party, but the

president of the local nongovernmental transportation union was upset that there had

been little dialogue with various concerned organizations.

The goal was to launch a 24 hours/day operation in May 2005 with 1,200 bicycles in

120 stations. According to a JCDecaux regional manager, they expected 2,000 bikes in

180 stations by October and projected 3,000 bikes in 2006 and 4,000 bikes in 2007

Adapted from:

Cummings, T. G., & Worley, C. G. (2014). Organization development and change (10th Ed).

[VitalSource Bookshelf version]. Retrieved from

http://online.vitalsource.com/books/9781305339330/id/ch9-P469