Case study of EG & G

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ASSOCIATION OF BUSINESS EXECUTIVE

(UK)

FORTUNE SCHOOL OF TECHNOLOGY

AND MANAGEMENT SINGAPORE

REFLECTION ON CHANGE MANAGEMENT

AND LEADERSHIP

A CASE STUDY OF EG & G

Submitted By:

UMANG JHANWAR ABE MEMBERSHIP NO. W09533



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EXECUTIVE SUMMARY

The Case Study is of an EG & G company which was a chemical company and also involved

in government services. Later on, there was an acquisition of EG & G and Perkin-Elmer then

they would drop the EG & G name and took the name of the acquired co. by disappearing the

hyphen between Perkin & Elmer and after the approval of its share holders, EG & G was

known as PerkinElmer. But there was a crucial element of a good leadership in the operation

of acquisition of Perkin-Elmer and EG & G. so, a great leader Gregory L Summe who was so

experienced and 42 years of aged, brought in company to turn around the business as in

recent years there had been faltering in the company. So, after that he had undergo in the

field and spent time to learn about their operations, their related customers and the people

associated with it and he observed a number of real strengths that good relationship with

customer and a strong and healthy financial controls & balance sheet of a company but also

emerged with problems which he solved by adopting change management concept, analyses

of complicated issues in EG & G and then did changes to overcome from the problems and

after it there would be a sustaining changes . So, in this there is a reflection of leadership and

change management which is related to our subject of assignment.



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TABLE OF CONTENTS

Index Page no.

INTRODUCTION ................................ ................................ ................................ ................ 4

DISCUSSION OF CHANGE MANAGEMENT AND LEADERSHIP THEORIES .............. 5

CHANGE MANAGEMENT:................................ ................................ ............................ 5

Models of Change Management ................................ ................................ .................... 5

LEADERSHIP ................................ ................................ ................................ .................. 6

COMPLICATED ISSUES IN EG & G ................................ ................................ ................. 7

CHANGES ADOPTED TO OVERCOME................................ ................................ ............ 8

SUSTAINING CHANGES ................................ ................................ ................................ ..10

CONCLUSION ................................ ................................ ................................ ...................11

REFERENCES ................................ ................................ ................................ ....................12



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INTRODUCTION

In 1947, MIT Professor Harold E. Edgerton and his several students were established EG &

G and which were involved in management of nuclear weapons to government and also in a

wide range of similar activities.

Perkin-Elmer was an older company then EG & G and was established in 1930. Perkin and

Elmer introduced it in a partnership and its operation was divided into two major divisions

which was Analytical Instruments & Applied Bio system.

In 1999, there was an acquisition of Perkin-Elmer and EG & G. Perkin-Elmer sold its name

and Analytical Instruments division to EG & G and EG & G also sold its technical services

business to Carlyle group investment firm .Then they would drop the EG & G name and take

the name of the acquired co. by disappearing the hyphen between Perkin & Elmer and after

the approval of its shareholders then after EG & G was known as PerkinElmer.

But there was one problematic element in the future of EG & G & its Perkin-Elmer

operations was a good leadership. A good leadership was required in EG & G to change a

company rapidly and radically.

That¶s why for the fulfillment of the above requirement. In 1998, GREGORY L SUMME

brought in company. He was with the experienced a lot as a partner at Mc Kinsey & Co. , at

General Motor¶s he was general manager of commercial motors, at AlliedSignal¶s Aerospace

Engines and at General Aviation Avionics he was a president and recently at the Automotive products Group at AlliedSignal he was president of it.

And because of his this track record at making technology companies competitive and

profitable the Co. brought him to turn around the business as in recent years the company had

been faltering.

Now, PerkinElmer divided its business in two segments Human health and Environmental

health. In Human health they are dealing with the companies of Bio-discovery, Genetic

Screening & Medical Imaging operating units. Environmental health segments are dealing

with the laboratory services, Analytical sciences and detection & Illumination units.



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DISC SSION OF C NGE

M NAGEMENT AND LEADER SHIP

THEOR IES

CHANGE MANAGEMENT

C management i a st t ed advent t devel ingindividuals, teams,

and organizations from a current status to a desired future status. It is aimed at empower ing

t e employees to secure and changes of the gr i p in their current business environment within

the organizational process. In Change management, pro ject changes are formally introduced

and approved.

Models of Change Management

McK insey 7S Model

The McK insey 7S model involves seven interdependent factors which are categor ized as

either ³hard´ or ³sof t´ elements as.

Strategy

Structure

Systems

Hard

Elements

Shared Values

Skills

Style

Staff

SoftElements



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According to this case, it can be related to 7s model as the changes were distributed in 7

elements which are as above and which are explain below as per the related company

1. STRATEGY: after the acquisition, the leader implemented new strategies in the

company.

2. STRUCTURE: there was a structural change because of acquisition.

3. SYSTEMS: New systems were implemented by the new leader in a company.

4. SHARED VALUES: there were some ethics and new systems of work made by new

leader which was shared as a core value of the company.

5. STYLE: the style of leadership adopted by the new leader to sort out all the

complicated issues of the company.

6. STAFF: the employees were distributed according to their capabilities and mostly

new staff was recruited.

7. SKILLS: Training programs were given to every individual from top to lower level

management.

LEADERSHIP

Leadership is the "process of social esteem in which one person can influences others to

attain an objective and directs the organi ation with a group of people to achieve a common

goal through change.

Leader: An individual who has granted authority, usually based on hierarchal position, in anorgani ation. Leaders carry out this process by applying their leadership knowledge and skills

make it more cohesive and coherent. Leadership is ultimately about creating a way for people

to contribute to making something extraordinary happen.

According to this assignment I concluded that the contingency theories are applied as this

theory focus on individuals related to the environment that can be determined which

particular style of leadership is best satisfied with the situation. The organi ation was

structured in a way that ³who reports to whom´ rule was adopted. All the implementations

were covered by the leader Gregory L. Summe. He distributed the whole problems in his

effective leadership style that he focused on identifying the situational variables to fit the

particular circumstances.





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CHANGES ADOPTED TO OVERCOME

Firstly, the company focuses on improving their ability to gain consistent earnings. So that,

they had good financial record and also regain trust of financial markets. And for this they

established a new culture which was with more ambitious about performing goals and with

clearer accountability. It relates with one of the element of 7s model i.e. strategy as new

strategies were generated to gain the reputation of financial market.

Secondly, it consolidated its 31 businesses into five strategic business units. It is related with

structural element of 7s model as there was structural change for the betterment of the

company.

Five strategic business units

Thirdly, they offset the charges involved in this restructuring from the sale of several

businesses including two mechanical businesses Sealol and Rotron. It is related with the style

element of 7s model as a leader used its style to manage or adjust all cost of restructuring,

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Fourthly, they sold all the government services business as it operated in a low margin,

consolidating, declining market. It relates with the system element of 7s model as no

company operates its business in losses and also turn its business which are not profitable.

Fifthly, they changed their name to signal to their customers, investors and employee that this

was a new company. It relates with shared values of 7s model as it changes its name and

generated new core values which are shared in a company.

Sixthly, as they started with nine different businesses and brands but then they quickly

narrowed their focus on just three segments: specialty illumination, digital imaging and

telecommunication as dealing in more selective and for healthier their portfolio. It relates

with skills and strategy elements of 7s model as leader applied his good skills to cut down the

business and made the strategy to focus on those which generated good revenue and

demanded in market.

Seventhly, they made seven key acquisitions and this is designed to quickly provide them

complementary products, technologies and geographic coverage.

Seven key acquisitions are divided as follows:

One in optoelectronics, One in fluid sciences, Two in instruments, and Three in life sciences.

It relates with structure element of 7s model as company changes the structure so that it

quickly fulfill the above requirement.

Eighthly, they shifted power away from corporate center to each of the business units. It

relates with strategy element of 7s model as there was a strategy to cut down the burden of

top level management.

Last but not least, for all employees of PerkinElmer¶s they place a broad range of training

programs to teach leadership skills, business fundamentals and best practices and it consists

of four programs aimed to develop each individual at various levels of the organi ation and

they were Advanced Leadership Institute, Emerging Leaders Program, Driving World-class

Performance Program and Skills based Training Programs. It relates with staff element of 7s

model as the above programs was placed for the improvement of employee.



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SUSTAINING CHANGES

Company¶s operating margin which was less than 6% in 1997 exceeds to 11%. After focus on

three segments, the market leaders in both specialty illumination and imaging segments,

which together accounts for 80% of the division¶s revenues. In telecommunications segment,

they achieve an annual revenue growth rate of more than 100%.The seven acquisitions made

them number one in world in explosives detection systems and one of the top three in

analytical instruments. They also have good terms with their investors as they understand and

support their strategy to upgrade the portfolio. They reduce their corporate staff from 140

people to 65 people after taking the decision of shifting power away from the corporate

center to each of the business units.



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CONCLUSION

It can be concluded that if you have the right person leading the charges, good thing always

happen but the Important decision is to choose right person and also in this company they

choose a right man at right time which no doubt benefitted the company a lot. In contrast of a

company, the Gregory L Summe was taking almost all right decision to turn around the

business as per the requirement of the company and it also gained a success by restricting it.

As its operating margin was increased , its revenues was increased , the co. had a tag of no.

one in world in explosives , detection systems and one of the top three in analytical

instrument and in present in current year its revenue was gone up to 498.3 million.

The major change was to change of the name of company i.e. from EG & G to PerkinElmer.

The change of the name was just the part of acquisition however it was also to attract the new

group of investors in the company.

The profit has been raised in current year and it has been concluded that 2010 may be a

brighter year for the company. PerkinElmer is delivering world drive productivity, quality

and accuracy. Although forward looking statements such as believes, plans, project intends

are leased on management¶s current assumption and expectation. However, these should be

assured that their expectation and assumption are proved to be accurate and profitable.



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REFERENCES

Case study of EG & G

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