Michael Beer - The Critical Path to Corporate Renewal

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title	:	The Critical Path to Corporate Renewal
author	:	Beer, Michael.; Eisenstat, Russell A.; Spector, Bert.
publisher	:	Harvard Business School Press
isbn10 | asin	:	0875842399
print isbn13	:	9780875842394
ebook isbn13	:	9780585232126
language	:	English
subject	Corporate turnarounds, Corporate reorganizations.
publication date	:	1990
lcc	:	HD58.8.B438 1990eb
ddc	:	658.4/063
subject	:	Corporate turnarounds, Corporate reorganizations.

Page iii The Critical Path to Corporate Renewal Michael Beer Russell A. Eisenstat Bert Spector Harvard Business School Press

Page iv 1990 by the President and Fellows of Harvard College All rights reserved. Printed in the United States of America. 99 98 9 8 7 6 The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for Printed Library Materials Z39.49-1984. Library of Congress Cataloging-in-Publication Data Beer, Michael. The critical path to corporate renewal / Michael Beer, Russell A. Eisenstat, Bert Spector. p. cm. Includes index. ISBN 0-87584-239-9 1. Corporate turnarounds. 2. Corporate reorganizations. I. Eisenstat, Russell A., 1955- . II. Spector, Bert. III. Title. HD58.8.B438 1990 658.4'063dc20 90-37570 CIP

Page v To Cynthia, Tom, and Shannon To Stephanie, Ben, and Sam To Maureen, Kate, and Tess

Page vii Contents Acknowledgments ix Introduction 1 1 The Need for Revitalization 11 2 Programmatic Change: False Starts to Renewal 23 3 Task Alignment 45 4 The Critical Path to Renewal 67 5 Creating a Climate for Critical Path Renewal 111 6 Philosophy and Resources: Conditions that Enable Renewal 153 7 Revitalization LeadersThe Scarce Resource 179 8 Sustaining Revitalization 209 9 Where and How to Start 223 Appendix I Overview of Companies 233 Appendix II Quantitative Analysis of Clinical and Questionnaire Data 239 Appendix III Definition of Variables Used for Researcher Ratings 263 Appendix IV Definition of Variables for Revitalization Questionnaires 275 Index 287

Page ix Acknowledgments The authors would like to express their appreciation for the generous research support provided by the Harvard Business School Division of Research under the direction of Professors Raymond Corey and Jay Lorsch. One of the authors also received research support from the Research and Scholarship Development Fund and the College of Business of Northeastern University, and we extend our thanks for that support. Part of the funding from the Harvard Business School provided us with the indispensable assistance of John Junkerman. In addition to conducting some of the field research, John was a regular contributor to the ongoing discussions and analysis that finally resulted in this book. Thanks, John, for your help. Our appreciation goes also to Nicole Steckler and Molly Schmitt for their assistance in analyzing our quantitative data. Special thanks is due Maria Van Nuysenburg for her patience and commitment in providing administrative support for the production of the manuscript.

Page x We also take this opportunity to recognize the invaluable assistance of many of our colleagues who read all or parts of the manuscript and offered guidance, suggestions, criticisms, and support. Special thanks, then, to Chris Argyris, Joseph Bower, Robert Eccles, Richard Hackman, Jay Lorsch, Gary Loveman, Robert McKersie, Frank Spital, Richard Walton, and Shoshana Zuboff. Eliza Collins and Carol Franco at the Harvard Business School Press provided steady hands, an unflagging commitment, and insightful voices in the ongoing development of the book. We are indebted to them and the staff at the press for their support. Finally, we should acknowledge our deepest debt and gratitude to a group without whom there truly could have been no book: the men and women of the corporations that we studied. Hundreds of individualsshop-floor workers, union leaders, managers, staff specialists, consultants, presidents, and chairmengave unselfishly of their time and insights, asking for nothing in return. We have agreed not to name them here and will, of course, honor that agreement. But we would be remiss if we failed to express to every one of them our most sincere sense of appreciation. Our only hope of repayment for their contribution lies in our ability to learn from their experiences and to communicate that learning to our readers.

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