Sunday, September 28, 2014

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



There are some remarkable CEOs who have accomplished great feats in the world of business. I recently viewed a video called CEO Exchange where two CEOs spoke at the Fuqua School of Business at Duke University. Gordon Bethune of Continental Airlines and Michael Bonsignore, who brokered the merger between Honeywell Inc. and Allied Signal to form Honeywell International, both called masters of corporate reinvention, spoke about a wide range of topics including customer service, mergers, workforce inspiration, crisis management, balancing long-term and short-term goals, and leading versus managing.

While I found Gordon Bethune to be positively interesting, I was very curious about the merger between Honeywell and Allied Signal. Both companies were quite prominent so the idea of both companies coming together sounds like a huge undertaking. While there may be many benefits to result in a merger, there are also challenging aspects that have to be dealt with before you can get on to the good stuff. Much like the formation of mountains, there is a lot of pressure and collision before the two plates buckle and fold to emerge into an imposing, risen peak. A concern of mine is a comment he made when asked about bring the companies together. He stated that the new Honeywell will not be an extension of the old Honeywell or Allied Signal.  Instead, he is creating a new culture that blends the best of the merged companies and will reward the people who look for best practices of both companies. Those who do not will be punished.

I perceived this to be a solid strategy up until the word punished. Perhaps he simply used poor wording, but alas, I can only take this comment at face value of what I heard. I agree rewarding employees is a beneficial behavioral strategy, which will motivate the people of Honeywell to reach the goals of the organization. Brown (2011) points out the behavioral strategies improves the use of human resources. Clearly the merger indicates a drastic shift in the structure of both companies and that “a change in one subsystem will have some impact one another” (Brown, 2011, p. 178). However, I am strongly opposed to the word punish. In a work place, I feel that there is an adult relationship between employees and the organization. You may not be rewarded and in extreme cases released from employment, but since this is not kindergarten in the south forty years ago, the idea of punish reminds me of paddling, discipline and control. I do not feel that image is okay and I know that personally I would not thrive in that type of culture. While some people are resilient in a way that pressure and the fear of punishment make a select few rise to the top, that is not a high enough percentage of an organization’s population to sustain a product atmosphere.

I received my bachelor’s degree in Paralegal Studies and worked in a wonderful law firm in Mississippi for a few years while I was in school. Unfortunately, once I moved back to Florida, I worked in more firms than I could count. I tried them all out before I realized I could not do it. The reason being is the use of the fear mentality. Not all law firms are modeled after the wonderful organization I got started in. It does not work for me, the idea of punishment. While I am a strong person, I shut down and quit trying to give the best of myself when that kind of negativity is forced on me. My personal philosophy is that if something makes you feel unwelcome and miserable it is best to part ways and leave it behind. My colleagues did not feel they could leave the legal professional because it was all they knew and a shocking amount revealed to me that they were on antidepressants to do the work. I simply do not consent to being involved in a place that wants me to be afraid for my job and knew I could do better work and actually contribute to others in a different, better environment. If that is what is meant for Honeywell’s new culture, it probably will not be successful.

In discussing the force-field analysis model, Brown informs on driving and restraining forces. A better idea, such as reward, is to employ driving forces. Wisely, Brown informs that “forces that put pressure on people (such as fear of losing their job) are increased; the tension within the system will also increase, possibly bringing about stronger resistance and unpredictable behavior” (Brown, 2011, p. 131). It would be preferable if the focus was primarily on the positive aspects. For example, Bonsingnore did mention that there would be compensation for meeting goals. No need to bring the fire, brimstone and doom out in public. If a relationship between the employee and organization is not working out, the clearly that would need to be discussed and handled privately. I was told once that you do not air your dirty laundry.

Another barrier I perceived from the video is that with any organization, especially an industrial conglomerate, facing major changes that behavioral, technological, and structural interventions would be requisite to see through the merging of two companies. Lots of things would be changing all at once. There have been times when Bonsignore admitted to missing the mark and the company faltered. To overcome the barriers and be successful, I think stream analysis would be ideal to keep a close eye on the complex variables. I think watching for second-order consequences is also paramount. If you plug one hole, make sure that three more don’t spring up. To get the company where it needs to be I think committing to a large scale intervention is the only way to see effective results. The use of limited or inappropriate strategies could be detrimental to the success of Honeywell International.

The best takeaway I received from this video is some of the wisdom imparted upon me by Gordon Bethune. I am on board with the idea that happy employees do a better job for the customers, which will ultimately boost the bottom line for the company. He also said that you cannot have a successful company if you do not have good products and people who like going to work. There is so much truth to such a seemingly simple concept. I wonder why more companies do not think this way. Maybe they have been conditioned to live in fear themselves and have passed that along through their work. Maybe they are so proud of their vision that they assume everything is swell. My biggest mission is to be happy and see that in others and support the concept of respecting and appreciating those who do the work from the bottom to the top because every person in an organization is important and I never want to see that to become a lost idea.

Reference: Brown, D. R. (2011). An experiential approach to organization development (8th ed.). Boston: Prentice Hall.

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