Federal Facilities Beyond the 1990s: Ensuring Quality in an Era of Limited Resources Summary of a Symposium (1997) / Chapter Skim
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ORGANIZATION TRANSFORMATION: A CASE STUDY
ORGANIZATION TRANSFORMATION: A CASE STUDY
Pages 32-40
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From page 32... ...
~ have been able to draw on many of the strategies that Director James Lee Witt employed at FEMA. The Michael Baker Corporation a highly diversified engineering, construction, and operations and maintenance firm was very successful until the 1990s.
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Baker acquired three companies that operate and maintain facilities: one that operates public facilities, and two that operate private facilities in of} and gas. Then, in 1991, we acquired the MellonStuart Construction Company in Pittsburgh.
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It had done many things right, such as Implementing a total quality management practice in 1991, which touched every major process in the company. The board of directors made a national search for a chief executive officer and was leaning toward an outsider, because they recognized that we needed significant change.
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Figure 2 graphs shareholder value against time, as a way of contrasting Baker's new approach with its old one. One line indicates conventional "hero leadership" and conventional strategic planning, which tries to predict the future, and then takes action (such as an acquisition)
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We made our organizational changes quickly as well, because doing so is better for morale; partly for this reason, we also kept our people very well informed of what we were doing and what we were attempting to do. Secondary priorities included arranging a new credit facility and tight controls on cash flow; putting the new leadership team in place; building internal infrastructure, such as reporting systems and technology; building a marketing culture through training; and establishing a distinctive technological competence in our case, geographical information systems, which are increasingly vital to facility management, and in which Baker has .
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From page 40... ...
Finally, any organization today that is operating in Baker's marketplace must practice some form of total quality management, that is, a formal process that provides for continuous improvement of the organization, so that it remains competitive and provides good service to its clients. The total quality management process can also make innovation and significant change possible.
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