Thursday, September 24, 2015

A630.7.4.RB - Mastering the Art of Corporate Reinvention

Michael Bonsignore, CEO of Honeywell, provided some interesting insight into his thought process for taking a company that was struggling and turning it around to not only a profitable company, but a place that people want to work at.  He did this through establishing a new company culture, which has directly impacted the efficiency and happiness of the employees working at Honeywell.  From my own experience, I have always believe that if you are happy at a place you work and actually want to go to work everyday, you are going to effect the whole outlook of that company, especially if you are in a position where you are dealing with the public.  Bonsignore stated that he believes that providing recognition to employees and letting them see that they are important and an integral part of the organization will improve customer satisfaction.  He states that as a CEO, it is important to remember the path that got you to where you are now.  By doing this, he is better able to understand the wants and needs of the employees.  The Honeywell company started to give more choices and freedom to employees by asking them what they believed they could do well and then showed each employee the respect by letting them prove how well they could do a certain task.  According to Bosignore, this was a huge success and made a drastic difference in the productivity of the company, as well as the happiness of the employees.
The biggest barriers that I see based on the video is convincing everyone that the merger will in fact be successful and will lead the competition for the future.  Maintaining a strong vision that can help lead the company to success will be crucial in the development over time.  Another potential barrier is just the lack of control the airline industry has on certain aspects like weather and airports.  It can be difficult to have satisfied customers when certain elements are out of the company’s control.  Figuring out a way to compensate for these unknowns will also be critical in setting them apart from the competition.
Critical success factors that Honeywell should consider as it crafts its organizational strategies around a new culture include constant and effective communication, flexibility, customer understanding, incentive programs for employees, always be looking ahead, and embrace globalization and use it to your advantage.  Maintaining your employees’ happiness should be one of the first factors to focus on in developing and maintaining success.  Incorporating new types of structural change within an organization should also consider the effects on the employees.  With that said, a focus on behavioral strategies should be crucial in maintaining a successful transition in organizational structure change.  With changes in the structure, it is inevitable that new technology will be involved as well, so a constant focus on learning and expanding the knowledge of employees is also key in staying ahead of the game. 
Overall, I have experience what it is like to be a part of a company that has merged with several organizations.  Fruit of the Loom acquired Vanity Fair, Spalding, and Russell Athletics and from my experience, has struggled to maintain a positive merger experience.  The biggest issue I see is a lack of cohesion between the companies.  There is a difference in how each section is run, making it difficult for the company to work and build of one another.  They are all working in the same building, but you would never know they were functioning under the same organization.  A lack of cohesion and understanding of how each brand is run makes it difficult for each section to learn and grow.  When I first started working, I was part of a newly formed team that had people from multiple different newly merged brands.  There was a lack of understanding and communication between the individuals in the group because they all worked a different way and struggled to understand the other side.  That experience really taught me a lot about being a part of an organization that is struggling with a merger because I learned as an employee, it is key to always be learning and asking questions, that way you can get a better global understanding of the entire organization, and not just your one section.


References
Brown, D. (2011). An experiential approach to organizational development (8th ed.).  Upper Saddle River, NJ: Prentice Hall.

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