1. Identify and briefly explain the main challenges faced by BHSL’s top and middle managers in the innovation and reorganization (i.e. the move to a service line structure) processThe main challenges faced by top and middle managers of BHSL in the innovation and reorganization process was to change the beauracratic set up in which the organizations were traditionally functioning The transformation process had to come from within organizational parameters and this needed to be supported by leadership . There had to a cultural informality, and cultural unity with regard to defining the mission and the greatest challenge was seen to be the budgeting delimitations and identifying the customer defied products and services .2-Identify and briefly explain what you see as the two most important recommendations (five are identified in the case study) for improving public agency performance. [There is no 'right' or 'wrong' choice here -- since all five recommendations are important -- so the key is to be sure to explain why you chose those two particular recommendations]a. Adopt a learning environment :Lessons learnt from successful implementation services should be institutionalized and everyone working in such areas should be made aware if it . Institutional histories