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Team Zebra: How 1500 partners revitalized eastman Kodak's black & white film-making flow
274
J PROD INNOV MANAG 1994; 11:272-277
elements can exert upon their productivity, and the less effort, time, and cost are incurred." One must then operationalize the process by harmonizing the "it" (product definition) and the " d o " (the skills and the processes required to develop a product). To successfully do this, one must define the product, control this definition, aggressively manage change, and assure that change is made as planned. The mechanisms to accomplish these are then reviewed. The author then outlines ways to act precisely and decisively. This involves identifying barriers for change and developing strategies for overcoming these barriers. The author takes an interesting approach of applying some philosophical ideas to a practical business function. The perspective is thought-provoking and provides some insight into how to improve the new product development process. He supplies examples of his points and useful illustrations; however, at times not enough information was presented to support ~the conclusions. One could question based on personal experiences the conclusions drawn concerning U.S. firms and their approach to product development. References are given that allow one to further explore some of the concepts or conclusions. The main points are articulated in several different ways so one gains an understanding of the main premises; however, sometimes the book becomes repetitive and wordy. The book is targeted mainly to new product development of a product that involves a fairly complex design or manufacturing process. The concepts are applicable to both the consumer and business-to business worlds, but it is most easily applied to the latter. Again, the concepts could be adapted to services but are based on a product orientation. The book is directed to the practitioner, but the academic could find interest in the various models discussed and agreement or disagreement with the conclusions drawn. Phyllis Willy CPC International
Team Zebra: How 1500 Partners Revitalized Eastman Kodak's Black & White Film-Making Flow, by Stephen J. Frangos with Steven J. Bennett. Essex Junction, Vermont: Oliver Wight Publications, 1993. 226 pages. $22.00. In the spirit of Tracy Kidder's The Soul of the Machine, Stephen J. Frangos' book Team Zebra is an exciting account of a troubled organization's struggle to survive. This story is what makes this book worth
BOOK REVIEWS
reading--it is a realistic portrait of an organization's efforts to change a dysfunctional culture in order to secure future growth. For product managers, there are many valuable lessons to be learned, ranging from methods to reduce development time to ways of dealing with common cross-functional issues. However, this book provides all managers with an account of how one organization changed its culture and became a team in the true sense of the word. The story begins circa 1989 when Kodak's safe and cautious culture is beset with seemingly insurmountable problems. The problems stem from a decade of declining margins due specifically to competition's ability to produce quality film and other innovative products. It soon becomes apparent that a "bloated Mother Kodak" is not flexible enough to compete in this highly dynamic business environment. In response to the crisis, the management of Kodak's black and white film manufacturing operations decided to implement a major reorganization. As the book describes in full detail, this was no typical reorganizational effort. Frangos, who managed the change process along with a team of thirty-plus managers, writes, "We didn't just 'slash and b u m ' - cut costs and drop product lines. We became more efficient." This group of managers that would later be known as "Team Zebra" reengineered work processes, broke down the traditional hierarchical structure, and changed an entrenched style of management. Their efforts led to dramatic improvements in efficiency, cycle times, and eventual profitability. On the surface, their methods seem like a compilation of the latest management fads. Looking in-depth, the fact emerges that this organization's turnaround resulted from a consistent use of highly innovative, culturechanging actions. The management team began the change process with a new way to structure production operations, called " f l o w . " Flow is described as the ability to perfect a smooth flow of materials from one part of the operation to the other. To achieve a smooth flow, each operation must think about what their customers downstream need. In return, these downstream operations must provide information to those upstream so they can improve operations. In order to accomplish these objectives, there was a need to reorganize from a functional operation into several product-oriented flows. This was a major undertaking for several reasons. First, the manufacturing operations were designed in a highly functional or "stovepipe" structure. Each operation had the responsibility to
BOOK REVIEWS
create its part of the products for all the different businesses. The reorganization's complexity was increased by the sheer number of products manufactured each year--250 product families transformed into 7000 final products. The authors describe in detail how management started with a clean slate and virtually reinvented the manufacturing processes. For the reader, the way they go about charting work activities and "mapping the flow" is not as important as the methods used to get culturally entrenched and resistant employees to support this threatening change effort. What makes this book a valuable resource for managers championing change is the description of how the management team applied several innovative methods to change the organization's culture. For example, the authors describe the intensive effort necessary to open communications in an environment that had cultivated secrecy throughout its history. Secrecy had been culturally embedded in Kodak starting with the practices of its founder George Eastman, who worried constantly about trade secrets getting out to competitors. Information just was not openly shared in this organization. The author's anecdotes about frequent town meetings, off-site workshops, and a new emphasis on the open sharing of information show the reader that change does not take place based on a single event. Team Zebra's management demonstrated their commitment to change by being consistent in their actions. The book's description of employee disbelief and resistance will ring true with any manager who has attempted a major change effort. On the other hand, those readers who have experienced recent reorganizations will understand one worker's comment to management regarding value statements: " . . . it doesn't matter what you call these things. It just matters whether you mean them." Through several months of consistent actions and communications from management, the employees began to realize that the messages were consistent and that the vision and values set forth could and should be shared. The book is loaded with examples of how management created a cultural change through innovative, symbolic acts and rituals. For example, to get across the message that inventories needed to be reduced, one manager held a birthday party for a three-year-old roll of film found on the shelf. There are just as many examples of innovative rewards and recognitions of employee efforts. These rewards were part of an intense effort to recognize employee's accomplishments, because the old Kodak culture did not readily recognize achievements.
J PROD INNOV MANAG 1994; 11:272-277
275
For example, employees would be honored by a peer in the form of an inflatable animal, "Zorba the Zebra." The unique aspect of this award was that each winner was responsible for choosing the next recipient, thus encouraging people to look for innovation and exemplary efforts in their own parts of the organization. Team Zebra's managers recognized that there was a need to work on two levels. On one level, their efforts needed to focus on improving financial results in the short-tenn. The second level was to create long-term strategies that would allow the organization to achieve its future goals. Formal strategies were put into place that clearly addressed both concerns. Several methods were used to impose strict order on the black and white manufacturing process, including a formal planning and scheduling system and a dedicated pursuance of ISO 9000, the internationally recognized standard of quality. These efforts delivered short-term results, while building a strong foundation for future growth. This bi-level philosophy is further demonstrated by the comprehensive human resource strategies put in place to achieve and maintain long-term commitment from all employees. Several policies were put in place to ensure that employees would have the knowledge and skills necessary to meet future objectives. For example, Team Zebra employees were encouraged to develop skills and were provided with many opportunities to learn new skills. Also, passwords to the e-mail system were issued to all employees, which was formerly a privilege of management only. This policy change was designed to further open communication among all levels of employees so they could share needed information. The Team Zebra story is told by Stephen Frangos, who was the manager in charge of the reorganization effort. Therefore, one can count on the traditional problems encountered in a self-reported account of events. However, this should not diminish the true value of this book. It provides a powerful lesson to any management team preparing to initiate a cultural change in an organization. Jack McGourty Assessment Alternatives, Inc.
The QFD Book: The Team Approach to Solving Problems and Satisfying Customers Through Quality Function Deployment, by Lawrence R. Guinta and Nancy C. Praizler. New York: AMACOM, 1993. 124 pages. $26.95. This book fills a definite need--a simple, short, straightforward book on quality function deployment
J PROD INNOV MANAG 1994; 11:272-277
elements can exert upon their productivity, and the less effort, time, and cost are incurred." One must then operationalize the process by harmonizing the "it" (product definition) and the " d o " (the skills and the processes required to develop a product). To successfully do this, one must define the product, control this definition, aggressively manage change, and assure that change is made as planned. The mechanisms to accomplish these are then reviewed. The author then outlines ways to act precisely and decisively. This involves identifying barriers for change and developing strategies for overcoming these barriers. The author takes an interesting approach of applying some philosophical ideas to a practical business function. The perspective is thought-provoking and provides some insight into how to improve the new product development process. He supplies examples of his points and useful illustrations; however, at times not enough information was presented to support ~the conclusions. One could question based on personal experiences the conclusions drawn concerning U.S. firms and their approach to product development. References are given that allow one to further explore some of the concepts or conclusions. The main points are articulated in several different ways so one gains an understanding of the main premises; however, sometimes the book becomes repetitive and wordy. The book is targeted mainly to new product development of a product that involves a fairly complex design or manufacturing process. The concepts are applicable to both the consumer and business-to business worlds, but it is most easily applied to the latter. Again, the concepts could be adapted to services but are based on a product orientation. The book is directed to the practitioner, but the academic could find interest in the various models discussed and agreement or disagreement with the conclusions drawn. Phyllis Willy CPC International
Team Zebra: How 1500 Partners Revitalized Eastman Kodak's Black & White Film-Making Flow, by Stephen J. Frangos with Steven J. Bennett. Essex Junction, Vermont: Oliver Wight Publications, 1993. 226 pages. $22.00. In the spirit of Tracy Kidder's The Soul of the Machine, Stephen J. Frangos' book Team Zebra is an exciting account of a troubled organization's struggle to survive. This story is what makes this book worth
BOOK REVIEWS
reading--it is a realistic portrait of an organization's efforts to change a dysfunctional culture in order to secure future growth. For product managers, there are many valuable lessons to be learned, ranging from methods to reduce development time to ways of dealing with common cross-functional issues. However, this book provides all managers with an account of how one organization changed its culture and became a team in the true sense of the word. The story begins circa 1989 when Kodak's safe and cautious culture is beset with seemingly insurmountable problems. The problems stem from a decade of declining margins due specifically to competition's ability to produce quality film and other innovative products. It soon becomes apparent that a "bloated Mother Kodak" is not flexible enough to compete in this highly dynamic business environment. In response to the crisis, the management of Kodak's black and white film manufacturing operations decided to implement a major reorganization. As the book describes in full detail, this was no typical reorganizational effort. Frangos, who managed the change process along with a team of thirty-plus managers, writes, "We didn't just 'slash and b u m ' - cut costs and drop product lines. We became more efficient." This group of managers that would later be known as "Team Zebra" reengineered work processes, broke down the traditional hierarchical structure, and changed an entrenched style of management. Their efforts led to dramatic improvements in efficiency, cycle times, and eventual profitability. On the surface, their methods seem like a compilation of the latest management fads. Looking in-depth, the fact emerges that this organization's turnaround resulted from a consistent use of highly innovative, culturechanging actions. The management team began the change process with a new way to structure production operations, called " f l o w . " Flow is described as the ability to perfect a smooth flow of materials from one part of the operation to the other. To achieve a smooth flow, each operation must think about what their customers downstream need. In return, these downstream operations must provide information to those upstream so they can improve operations. In order to accomplish these objectives, there was a need to reorganize from a functional operation into several product-oriented flows. This was a major undertaking for several reasons. First, the manufacturing operations were designed in a highly functional or "stovepipe" structure. Each operation had the responsibility to
BOOK REVIEWS
create its part of the products for all the different businesses. The reorganization's complexity was increased by the sheer number of products manufactured each year--250 product families transformed into 7000 final products. The authors describe in detail how management started with a clean slate and virtually reinvented the manufacturing processes. For the reader, the way they go about charting work activities and "mapping the flow" is not as important as the methods used to get culturally entrenched and resistant employees to support this threatening change effort. What makes this book a valuable resource for managers championing change is the description of how the management team applied several innovative methods to change the organization's culture. For example, the authors describe the intensive effort necessary to open communications in an environment that had cultivated secrecy throughout its history. Secrecy had been culturally embedded in Kodak starting with the practices of its founder George Eastman, who worried constantly about trade secrets getting out to competitors. Information just was not openly shared in this organization. The author's anecdotes about frequent town meetings, off-site workshops, and a new emphasis on the open sharing of information show the reader that change does not take place based on a single event. Team Zebra's management demonstrated their commitment to change by being consistent in their actions. The book's description of employee disbelief and resistance will ring true with any manager who has attempted a major change effort. On the other hand, those readers who have experienced recent reorganizations will understand one worker's comment to management regarding value statements: " . . . it doesn't matter what you call these things. It just matters whether you mean them." Through several months of consistent actions and communications from management, the employees began to realize that the messages were consistent and that the vision and values set forth could and should be shared. The book is loaded with examples of how management created a cultural change through innovative, symbolic acts and rituals. For example, to get across the message that inventories needed to be reduced, one manager held a birthday party for a three-year-old roll of film found on the shelf. There are just as many examples of innovative rewards and recognitions of employee efforts. These rewards were part of an intense effort to recognize employee's accomplishments, because the old Kodak culture did not readily recognize achievements.
J PROD INNOV MANAG 1994; 11:272-277
275
For example, employees would be honored by a peer in the form of an inflatable animal, "Zorba the Zebra." The unique aspect of this award was that each winner was responsible for choosing the next recipient, thus encouraging people to look for innovation and exemplary efforts in their own parts of the organization. Team Zebra's managers recognized that there was a need to work on two levels. On one level, their efforts needed to focus on improving financial results in the short-tenn. The second level was to create long-term strategies that would allow the organization to achieve its future goals. Formal strategies were put into place that clearly addressed both concerns. Several methods were used to impose strict order on the black and white manufacturing process, including a formal planning and scheduling system and a dedicated pursuance of ISO 9000, the internationally recognized standard of quality. These efforts delivered short-term results, while building a strong foundation for future growth. This bi-level philosophy is further demonstrated by the comprehensive human resource strategies put in place to achieve and maintain long-term commitment from all employees. Several policies were put in place to ensure that employees would have the knowledge and skills necessary to meet future objectives. For example, Team Zebra employees were encouraged to develop skills and were provided with many opportunities to learn new skills. Also, passwords to the e-mail system were issued to all employees, which was formerly a privilege of management only. This policy change was designed to further open communication among all levels of employees so they could share needed information. The Team Zebra story is told by Stephen Frangos, who was the manager in charge of the reorganization effort. Therefore, one can count on the traditional problems encountered in a self-reported account of events. However, this should not diminish the true value of this book. It provides a powerful lesson to any management team preparing to initiate a cultural change in an organization. Jack McGourty Assessment Alternatives, Inc.
The QFD Book: The Team Approach to Solving Problems and Satisfying Customers Through Quality Function Deployment, by Lawrence R. Guinta and Nancy C. Praizler. New York: AMACOM, 1993. 124 pages. $26.95. This book fills a definite need--a simple, short, straightforward book on quality function deployment