Harvard Case - Unisys: The Merger of Burroughs and Sperry
"Unisys: The Merger of Burroughs and Sperry" Harvard business case study is written by Todd D. Jick, Lori Ann Levaggi. It deals with the challenges in the field of Human Resource Management. The case study is 24 page(s) long and it was first published on : Sep 12, 1988
At Fern Fort University, we recommend a comprehensive and strategic approach to managing the merger of Burroughs and Sperry, focusing on a human-centric approach to address the challenges of cultural integration, talent retention, and leadership development. This solution emphasizes the importance of open communication, employee engagement, and a clear vision for the future of Unisys.
2. Background
The case study focuses on the 1986 merger of Burroughs and Sperry, two prominent computer companies, to form Unisys. The merger aimed to create a global powerhouse in the computer industry by combining their strengths in mainframe computers, software, and services. However, the merger faced significant challenges, including cultural clashes, conflicting organizational structures, and a lack of clear leadership. The case highlights the struggles of integrating two distinct corporate cultures, managing employee morale, and navigating the complexities of a large-scale organizational change.
The main protagonists are:
- W. Michael Blumenthal: CEO of Burroughs, who became the CEO of Unisys.
- Jack B. S. B. Reynolds: CEO of Sperry, who became the Chairman of Unisys.
- The employees of both Burroughs and Sperry: They were the ones who had to adapt to the new organization and its culture.
3. Analysis of the Case Study
The case study presents a complex scenario, highlighting the challenges of integrating two distinct corporate cultures. Using a framework of Organizational Behavior and Change Management, we can analyze the key issues:
- Organizational Culture: Burroughs and Sperry had deeply ingrained cultures, with differing values, leadership styles, and employee expectations. This clash of cultures created friction and resistance to change.
- Leadership: The lack of a clear and unified leadership vision, combined with the power struggle between Blumenthal and Reynolds, exacerbated the cultural conflict.
- Talent Management: The merger resulted in overlapping roles and redundancies, leading to employee anxiety, uncertainty, and potential talent loss.
- Communication: The lack of transparent communication about the merger's goals, strategies, and impact on employees fueled rumors and mistrust.
- Change Management: The merger process lacked a structured and systematic approach to managing the change, leading to confusion, resistance, and a sense of instability.
4. Recommendations
To address these challenges, we recommend the following:
1. Leadership and Culture Integration:
- Establish a Unified Leadership: Create a strong and unified leadership team with a clear vision for the future of Unisys. This team should be comprised of leaders from both Burroughs and Sperry, fostering collaboration and trust.
- Develop a Shared Culture: Define a new, inclusive organizational culture that values the strengths of both legacy companies. This culture should emphasize collaboration, innovation, and customer focus.
- Implement Cultural Integration Programs: Conduct workshops, team-building exercises, and cross-functional projects to facilitate cultural exchange and understanding.
2. Talent Management and Employee Engagement:
- Conduct a Comprehensive Talent Assessment: Identify key skills and competencies needed for the new organization. This assessment should consider both technical and soft skills.
- Develop a Retention Strategy: Offer competitive compensation and benefits packages, career advancement opportunities, and employee recognition programs to retain key talent.
- Implement a Robust Communication Strategy: Maintain open and transparent communication throughout the merger process, addressing employee concerns and providing regular updates on progress.
- Create Employee Engagement Initiatives: Foster a sense of ownership and belonging by involving employees in decision-making processes, providing opportunities for feedback, and recognizing their contributions.
3. Organizational Structure and Design:
- Streamline Organizational Structure: Simplify the organizational structure to eliminate redundancies and create a more efficient and agile organization.
- Empower Teams: Promote collaboration and innovation by empowering cross-functional teams to work on projects and initiatives.
- Implement a Performance Management System: Establish a performance management system that aligns with the new organizational culture and goals.
4. Technology and Analytics:
- Leverage Technology: Utilize technology to enhance communication, collaboration, and knowledge sharing across the organization.
- Implement Data-Driven Decision Making: Use data analytics to track progress, identify areas for improvement, and make informed decisions.
5. Diversity and Inclusion:
- Promote Diversity and Inclusion: Ensure that the new organization reflects the diversity of its workforce and customer base.
- Create a Culture of Respect: Develop policies and programs that promote a culture of respect and inclusivity for all employees.
6. Change Management:
- Develop a Comprehensive Change Management Plan: Outline a clear and structured approach to managing the change process, including communication strategies, training programs, and support systems.
- Provide Training and Development: Offer training programs to help employees adapt to new processes, technologies, and organizational structures.
- Address Resistance: Acknowledge and address employee concerns and resistance to change through open dialogue, feedback mechanisms, and support systems.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with the core competencies of both Burroughs and Sperry, focusing on technology, innovation, and customer service. They also support the mission of creating a global leader in the computer industry.
- External Customers and Internal Clients: The recommendations prioritize customer satisfaction and employee engagement, recognizing that both are crucial for the success of the new organization.
- Competitors: The recommendations aim to position Unisys as a strong competitor in the evolving computer industry by leveraging technology, innovation, and a talented workforce.
- Attractiveness: The recommendations are expected to improve organizational efficiency, increase employee productivity, and enhance customer satisfaction, ultimately leading to increased profitability and market share.
6. Conclusion
The successful integration of Burroughs and Sperry requires a comprehensive and strategic approach, focusing on a human-centric approach to address the challenges of cultural integration, talent retention, and leadership development. By implementing the recommended strategies, Unisys can overcome the obstacles of the merger and emerge as a strong and unified organization, capable of achieving its ambitious goals in the global computer industry.
7. Discussion
Alternatives:
- Ignoring the Cultural Differences: This approach could lead to increased conflict, reduced employee morale, and ultimately hinder the success of the merger.
- Focusing Solely on Technology: While technology is important, neglecting the human element of the merger can lead to resistance, low employee engagement, and talent loss.
Risks and Key Assumptions:
- Resistance to Change: Employees may resist the changes brought about by the merger.
- Lack of Leadership Commitment: The success of the merger depends on the commitment of the leadership team to implement the recommended strategies.
- Economic Downturn: A downturn in the economy could negatively impact the merger's success.
8. Next Steps
- Develop a Detailed Implementation Plan: Outline specific actions, timelines, and responsibilities for each recommendation.
- Establish a Communication Strategy: Develop a comprehensive communication plan to keep employees informed and engaged throughout the merger process.
- Monitor Progress and Adjust: Regularly assess the progress of the merger and adjust the strategies as needed.
By taking these steps, Unisys can navigate the challenges of the merger and emerge as a unified and successful organization.
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Case Description
Mike Blumenthal, CEO of Burroughs, successfully executes the merger of Burroughs and Sperry in 1986. The case discusses the putting together of the two firms in a fast time period in order to achieve cost savings, high earnings, and an integrated culture. Blumenthal calls in two post-merger consultants to assist in the process as well as a large consulting firm. After one year it appears the new company, Unisys, is off to a good start, yet the integration of the MIS systems seems to remain as a looming concern.
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