This case study was originally published in 1997 and has been adapted for the BPI digital archive.
The Strategic Imperative
Facing pressure to enhance both revenue and profitability, the Witco Corporation initiated a corporate strategy focused on safety, quality, customer service, and productivity. A key element of this strategy was the implementation of a team-based work environment to improve overall competitiveness.
In January 1997, a new management team at the Houston plant site was tasked with putting this strategy into action. The goal was to flatten the organizational structure, disseminate information and decision-making, and evolve the operation into one driven by self-sufficient, high-performance work teams.
A Framework for Rapid Change
CK Witco undertook an innovative, 5-month "fast cycle" project to redesign the entire Houston plant. This initiative created a new business strategy and the site's first-ever balanced scorecard to communicate a new direction for its 175 employees.
The plant was redesigned around its core processes, creating a series of self-directed, problem-solving, and cross-functional teams to optimize market responsiveness. The project integrated several change management tools:
- Strategic analysis
- Balanced scorecard implementation
- Process redesign
- Competency-based training
- Performance gap analysis
Learning from Past Failures
A key obstacle was the memory of a failed work redesign attempt two years prior. The previous effort was unsuccessful for several reasons, providing critical lessons for the new initiative.
Why the First Redesign Failed
- The plant lacked a clear design and implementation plan.
- Management did not provide strong sponsorship for the change.
- Organizational systems like rewards and recruiting were not modified to support teams.
- Limited effort was made to align the plant's culture with the new structure.
- Insufficient training was provided to bridge the competency gaps the new design required.
Outcomes and Impact
The comprehensive design and implementation process was completed in approximately five months. Shortly thereafter, the plant began realizing both revenue generation and cost-cutting benefits.
The success of the project transformed the Houston site, which is now widely considered within CK Witco as the prototype for its "starship factory of the future.”