Merger: Divergent Quality Systems at Honeywell

Introduction

In the current competitive business environment, organizations are looking to maximize business strategies to increase their returns on investments. Such initiatives involve the use of mergers and takeovers. The merging of two distinct and effective quality management systems (QMSs) poses a significant challenge, particularly in maintaining and enhancing the quality efforts within the newly formed entity (Bashan & Kordova, 2021). Honeywell International’s integration of AlliedSignal’s Six Sigma program and Honeywell’s HQV program underscores the critical role of leadership and management in orchestrating successful quality system amalgamation (Hossain, 2021). Thus, organizational support is critical to developing a unique approach to corporate strategy. This paper analyzes the leadership’s role in supporting Six Sigma Plus at Honeywell, examines the adequacy of the existing structure to sustain quality efforts, and provides a conclusion based on available evidence.

Leadership Support for Six Sigma Plus

Organizational support for quality improvement projects plays a critical role in their success (Gigauri, 2020). Leadership played a pivotal role in driving the integration of AlliedSignal’s and Honeywell’s quality management systems, leading to the creation of Six Sigma Plus. CEO Michael R. Bonsignore of Honeywell International conveyed a clear vision for the new organization, emphasizing that Six Sigma plus would energize the entire workforce, enhance customer value, improve processes, and capitalize on the power of e-business (Evans & Lindsay, 2013). This stance indicated a top-down commitment to the adoption and successful implementation of the new quality system. The leadership’s endorsement of Six Sigma Plus underscored its strategic significance in driving growth, productivity, and customer satisfaction.

To ensure a seamless transition, leadership organized leadership orientations to educate managers about Six Sigma basics. Additionally, they selected individuals from each business to undergo comprehensive training and the application of Six Sigma tools. This approach aligns with Clifton and Harter (2019) assertion that effective leadership involves providing resources, communication, and direction to ensure the success of quality initiatives. Honeywell’s emphasis on creating a results-oriented learning environment reflects an active commitment to integrating Six Sigma Plus into the company’s culture.

The commitment was evident not only in words but also in actions. Ray Stark, Honeywell International’s Vice President of Six Sigma and Productivity, led the effort to harmonize the distinct QMSs. His collaborative approach with Arnie Weimerskirch, the architect of HQV, demonstrated a dedication to blending the best elements of both systems (Evans & Lindsay, 2013). This collaborative effort emphasized leadership’s proactive engagement in developing a coherent quality framework. This approach was critical to leveraging individual capacity and the ability to transition effectively.

Structure for Future Sustainability

Assessing the structure for future sustainability demands assessing the organizational framework, training, and how Six Sigma Plus was integrated into the new system.

Organizational Framework

         Honeywell International established Six Sigma Plus as a holistic quality management system that combined Six Sigma, HQV, lean enterprise, and activity-based management. This integration allowed for a comprehensive approach to process improvement and customer value creation (Evans & Lindsay, 2013). By embedding Six Sigma Plus principles into various aspects of the organization, including non-traditional areas like marketing and sales, Honeywell displayed a commitment to long-term sustainability. However, the impending acquisition by General Electric (GE) poses a potential challenge, as the direction and prioritization of quality initiatives might change due to GE’s practices.

Training

Honeywell’s approach to training reflected a dedication to learning and implementation. Leadership recognized that effective implementation required employees to not just be trained but to learn and apply tools through projects. Honeywell’s Growth Green Belt program extended Six Sigma Plus principles beyond manufacturing and empowered employees to drive improvement across departments. However, as the organization expands, ensuring consistent and high-quality training becomes crucial to sustaining quality efforts.

Integration and Deployment

The integration of Six Sigma Plus with e-business strategies showcased the organization’s adaptability to changing market dynamics. The use of e-solutions and online platforms exemplifies Honeywell’s commitment to innovation and staying ahead in the digital age. This strategic integration demonstrates Honeywell’s capability to align quality efforts with broader business goals.

The structural framework and strategies implemented by Honeywell to merge its quality systems and develop Six Sigma Plus have laid a strong foundation for the continued growth and sustainability of the quality effort. The integration of HQV and Six Sigma, along with the incorporation of lean enterprise and activity-based management, has enabled Honeywell to create a holistic approach that addresses various facets of quality improvement (Evans & Lindsay, 2013). The DMAIC process serves as a structured method for problem-solving and continuous improvement, fostering a culture of ongoing learning and adaptation.

However, the sustainability of the quality effort requires more than just a well-designed system. It necessitates a commitment to ongoing training, engagement, and monitoring. The Growth Green Belt program, which extends Six Sigma quality principles to diverse departments, exemplifies Honeywell’s commitment to broadening the scope of quality efforts beyond manufacturing projects. This approach aligns with Noviantoro et al. (2020) emphasis on the importance of involving employees at all levels and across departments in quality improvement efforts.

Conclusion

While there are imminent challenges in merging divergent quality systems, organizational support and strategy are critical to achieving long-term objectives. To ensure long-term sustainability, Honeywell needs to continually adapt to evolving business landscapes and emerging technologies. Leadership must remain agile, addressing challenges and opportunities proactively. Thus, Honeywell’s leadership needs to stay engaged, monitor performance, and make adjustments as needed to sustain Six Sigma Plus as an integral aspect of the company’s operations.

References
  • Bashan, A., & Kordova, S. (2021). Challenges in regulating the local and global needs of quality management systems. International Journal of Quality & Reliability Management39(8), 1996-2019.
  • Clifton, J., & Harter, J. K. (2019). It’s the Manager: Gallup finds the quality of managers and team leaders is the single biggest factor in your organization’s long-term success. Washington, DC, USA:: Gallup Press.
  • Evans, J. R., & Lindsay, W. M. (2013). Managing for quality and performance excellence. Cengage Learning.
  • Gigauri, I. (2020). Organizational support to HRM in times of the COVID-19 pandemic crisis. European Journal of Marketing and Economics4(1), 16-30.
  • Hossain, M. S. (2021). Merger & Acquisitions (M&As) as an important strategic vehicle in business: Thematic areas, research avenues & possible suggestions. Journal of Economics and Business116, 106004.
  • Noviantoro, R., Maskuroh, N., Santoso, B., Fahlevi, M., Pramono, R., Purwanto, A., … & Munthe, A. P. (2020). Did quality management system ISO 9001 version 2015 influence business performance? Evidence from Indonesian hospitals. Journal Scopus.