A630.7.4.RB - Shuck, Allison

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 Honeywell will eventually be able to obtain long term success, but will have to push through a few rough patches in order to get there. I believe Bonsignore has good intentions, but I think that using the word “punch” will create a negative environment within the organization. The company is already going through huge changes and those changes are already impacting the company’s corporate culture; all the company needs now is for its current employees to quit, which will create an even larger turnover problem because the company will have to train new employees.

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

The biggest barrier Honeywell will face is its employees accepting change. Cultural changes are hard to deal with. So many people fear change because its result is unknown. No matter how hard a company tries to prepare its employees for change, the effects of change will not take place until the change actually happens. I bet a lot of employees from Honeywell are resistant to the merger due to the fact that it will change the whole company and how it operates. Allied employees are concerned about their jobs; wondering where they might end up and what their new role in the organization will be.

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

In order for this merger to be successful, the employees from both Honeywell and Allied Signal will need to be open and receptive to change. Each employees will need to understand that the changes implemented from the merger will create domino effect throughout the organization, whereas, a change in one part of the organization will most likely create need for change in another part of the organization. That being said, it is important for employees to remain positive through the change processes.

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

Change is inevitable and is constantly in motion. Over time, I have learned that in order for me to obtain success, I have to embrace change and learn to accept it. I truly believe that the only way to grow within an organization is to take on a new position; to change and accept the challenge.