A630.7.4.RB_DellElceCamila

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

Michael Bonsignore, CEO of Honeywell, states that Honeywell will not be an extension of the old Honeywell or Allied Signal. He is creating a new culture that blends the best of the merged companies of Honeywell and Allied Signal. He says that Honeywell will compensate and reward people that look for best practices from both companies in creating a new corporate culture and punish those who do not. Do you predict Honeywell will be successful?

            I think that he may be successful. Any time a newly merged corporation seeks to bring the best practices of both entities into the new business, rather than the larger of the two simply absorbing the other into its fold, there is a greater chance of success. However, I do find his supposed effort to punish those who do not bring best practices to the table slightly alarming. I think that rewarding employees for hard work, best practices, or new ideas is a powerful incentive, but threatening to punish those who do not may be a fearful deterrent from productivity. It remains to be seen if the merger will prove successful, but I think it does have the opportunity to be just that with some slight adjustments in phrasing and methodology.

What barriers do you see based on what you observed in the video?

            Some of the main barriers will be bringing in members from two different companies while merging them into one. Even if they try to preserve the "best practices" of both, one is bound to prove at least slightly dominant to the other and there will be casualties along the way. Working together and eliminating bias will be the best way to overcome this otherwise obstacle. The other problem they may face is an identity crisis. The hopes is that the new business can come up with set goals, policies, values, and articulate a clear vision fast enough that everyone can come on-board and work toward its success.

What critical success factors should Honeywell consider as it crafts its organizational strategies around a new culture?

            Honeywell should consider behavioral, structural, and technological (change) factors in relation to the new organization as its strategies are created and a new culture results. These different elements must work together in an effort to create a new company with set values. The biggest factors for success will be the people who work for the company. If they are driven and the goals oriented with their values and perception of where the company should be headed, then success would be more likely.

What can you take away from this exercise to immediately use in your career?

            I think the strongest factor to remember from this is that mergers are hard. Having positive leadership that seeks to retain the best elements from the individual companies and motivate employees toward success is integral. Hopefully, I can take these lessons and apply them within future managerial leadership capacities.  

References

PBS (2011). Mastering the art of reinvention. Video presentation. Retrieved from http://digital.films.com.ezproxy.libproxy.db.erau.edu/play/BB94P2