Michael
Bonsignore, CEO of Honeywell, states that Honeywell will not be an extension of
the old Honeywell or Allied Signal (Bethune
& Bonsignore, 2011). To create a new culture that blends the best of
the two merged companies of Allied Signal and Honeywell, he will reward those
who look for best practices and punish those who don’t. I definitely feel that rewarding and
compensating members of both organizations who practice good management and
good work is definitely a major factor for the future success of the merger. Punishment on the other hand, in my opinion,
needs to be dished out delicately. We
have to remember that corporate culture is very difficult to change and
therefore tact, patience, understanding and compassion is needed when trying to
change the cultural beliefs of the companies. Brown explains that during a merger, when
there is a clash of corporate cultures there will be a clashing of beliefs,
norms, values and that these differences “can manifest a nonproductive ‘we’
versus ‘they’ situation if the parties involved are not made aware of, and
sensitive to, the cultural differences”(2011, p. 66). I
think that Honeywell will be successful as long as they are sensitive to these
changes and to the cultural differences. Brown makes a reference to the Honeywell and
Allied Signal merger in his book and refers to the situation of the employees
as being on a burning platform. Bossidy,
former CEO of Allied Signal explained that “to inaugurate large-scale change,
you may have to create the burning platform. You have to give people a reason
to do something differently. . . . Scaring people isn’t the answer. You try to
appeal to them. The more they understand why you want change, the easier it is
to commit to it" (Brown, 2011, p. 149).
The
barriers that I see with the Honeywell and Allied Signal merger are the same
barriers you see in any merger. Future
shock is a definite barrier as the cultures will clash and change will happen
quicker than members can assimilate. This
is a typical reaction to a merger and one that an effective leader will need to
deal with immediately to avoid a complete management melt-down. Other barriers would be related to the
reactions of employees affected by the merger and their resistance to change. The resistance can rise from such things as
uncertainties and fears of the unknown, disruption of routine and lack of
desire to change how they do things (Brown, 2011). They may feel their job security is threatened
or their position of power. And social
networks within the company are disturbed as well creating more conflict. It is important to create a climate that is
conducive to change and to increase employee motivation and morale.
Some of
the success factors to consider when strategizing for a change in culture is to
make sure to consider all three major systems which are the behavioral,
technical and structural (Brown, 2011). As new technologies are incorporated into
Honeywell, careful attention has to be made to how these changes affect the
other systems. Structural systems may
change due to shifting of power and responsibilities, changes in company
policies due to the merger and other procedural changes. And of course, the system most impacted and
that will require the most attention is the behavioral system which will be
challenging the cultural clashing of two different companies.
My
takeaway from this exercise in regards to my company and future leadership
opportunities is that you capture more flies with honey. Mr. Bethune, explains that there is “100%
correlation between employee happiness and customer satisfaction” and that is
why he was able to turn a 200 million loss into a 200 million profit (Bethune & Bonsignore, 2011). People work hard and treat customers well
because they are happy and they are being treated well. It is the old adage “treat others as you would
like to be treated”. This really is a philosophy
I have always lived by. Mr. Bonsignore also
gives some good advice that I will definitely remember which is “you have to be
adaptable despite the circumstances around you”. Sometimes I forget this when I get into a
tough situation where I don’t like the changes that are happening. Working against the current will get you
nowhere, at some point you have to adapt to survive. This is a natural law of survival. Most of what both of these CEO’s talked about
are the basic courtesies that most of us grow up with. Be nice to people, don’t lie, don’t cause
trouble, try and get along and play well with others. These are basic playground rules that we all
learn as children and have to remember to continue practicing as adults.
References
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