MIT Sloan Management Review

Leadership and Organizational Studies

Rebuilding Behavioral Context: Turn Process Reengineering into People Rejuvenation

By Christopher A. Bartlett and Sumantra Ghoshal

October 15, 1995

WHY ARE SOME COMPANIES ABLE TO REMAIN VITAL, EVEN AFTER EXTENSIVE REENGINEERING, WHILE OTHERS FLOUNDER AND FAIL? THE ANSWER, ACCORDING to these authors, lies in a company’s ability to rejuvenate its employees by establishing a behavioral context with four characteristics — discipline, support, trust, and stretch. The authors trace postwar corporate history to identify the pernicious qualities that have ossified many companies, using the example of Westinghouse to illustrate an oppressive context based on the elements of compliance, control, constraint, and contract. They also show how companies like Intel and 3M have been able to renew themselves by creating an environment in which people are the most important resource.

After the slash-and-burn organizational restructuring of the past decade, one thing is becoming increasingly clear to managers: if a company is to proceed beyond the shrinking spiral of downsizing and rationalization to develop the ability of continuous self-renewal, its real battle lies not in reorienting the strategy, restructuring the organization, or revamping the systems, but in changing individual organization members’ behaviors and actions. A self-renewing organization can be built only on the bedrock of people who are willing to take personal initiative and to cooperate with one another, who have self-confidence and a commitment to the company, and who are able to execute relatively routine tasks with the same proficiency as they are willing to learn new skills and ways to take the company to the next stages of its ambition. In short, the most vital requirement for revitalizing businesses is to rejuvenate people.

What is not clear to many managers is whether it is possible to stimulate such behaviors in large global firms. Based on our recent research in twenty European, U.S., and Japanese companies, we believe that the answer is an unambiguous “yes.”1 A number of companies we studied demonstrated an ability to shape and protect the required individual attitudes and actions over decades, despite their growing size and diversity. We also found several in which a determined top management... To read the complete article, login or sign-up using the form below.

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