Magazine article Management Review

Reengineering at Ingersoll-Rand

Magazine article Management Review

Reengineering at Ingersoll-Rand

Article excerpt

The late 1980s and early 1990s saw numerous restructuring programs intended to refocus the U.S. manufacturing base to compete globally.

Most of those restructuring efforts were brought about by necessity: the 1982 recession, the deterioration of oil and gas markets worldwide, and foreign currencies running significantly against U.S.-based exporters. Many plants were closed. In almost every remaining manufacturing facility, processes were redesigned and flows were redirected - all with the intention of turning these operations into low-cost producers for international markets.

Ingersoll-Rand's early start on these efforts put us in a favorable position when our markets began. to improve during 1987 through 1989. This effort enabled us to reach peak earnings in 1989. The additional benefits were more fully recognized during the recession of 1990 to 1992, when the company performed significantly better than it had in previous recessions.

Late last year, a new chairman took the helm at Ingersoll-Rand. He assembled his key management staff to focus once again on the company's strengths and weaknesses, its expectations and its views of the marketplace for the rest of the decade. The difference between the restructuring of 1994 and that of 1983 is that the current reevaluation has been initiated while Ingersoll-Rand is strong; the prior examination was prompted by necessity.

During the current refocusing effort, it became apparent early on that the global challenges of the '90s clearly would be greater than those of the '80s. Today, we are looking at our business beyond being satisfied with past successes; we are focusing on how we can handle every business activity radically and dramatically differently and at a significantly lower cost than before. No process is being regarded as sacred or indispensable. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.