Situation: ART emerged as a giant technology company and did various mergers and

acquisition during the 1980s and 1990s. ART has around 60 business units in its portfolio
by 2006 and its revenue stands at $11 billion. ART has a strong culture of innovation and
entrepreneurship that enable business growth effectively. The filtration unit was acquired
during 1996 and its key competitors are Chinese manufacturing companies.
Problem: ART (Applied Research Technology) filtration units failed twice in last three
years while launching $2 million mini water oxidation product. The filtration unit has only
one revenue generating product line and not able to generate profit in last five years. There
was a need to bring more discipline within the team. The unit lost confidence due to new
product failure and lost around $6 million annually since 2006.
Alternative: The three possible solutions are: (1) Knowledge sharing: the effective
knowledge sharing between teams can enable developing right product and addressing
gaps. The knowledge sharing can delay the operational decision-making process. (2)
Aggressive performance objectives: the performance objectives of the individual are
required to be linked with compensation so that each employee do focused approach to
help achieve desired goals. The performance was driven objectives put too much pressure
on the employee to perform. (3) Setting up higher priority: fast-track pipeline can be
implemented so that priority related with the project can be identified and get it completed
well on time. The setting up of priority also requires additional resource allocation for the
project.
Solution: The setting up of higher priority for the filtration unit can be a effective solution
so that unit can fix the key issues and able to drive necessary innovation. The specialized
applications can be developed through involving R&D team and by developing a
disciplined approach within the team.
Implementation: The necessary implementation requires following given steps: (1)
Identify the priority: filtration unit can identify business priority including developing the
necessary product concept and undertaking the necessary market analysis. The necessary
technical specification for the product is developed and necessary prototypes are designed
effectively. (2) Aligning the team and necessary discipline: The team of experts is aligned
to undertake business priorities. The team members are given objectives and necessary
disciplined approach is undertaken. The individual level goals are designed and work
scopes for each person are clearly defined as per output requirement. (3) Performance
tracking and progress status check: each individual performance is required to be tracked
and overall project progress status is checked. The necessary corrections and way forward
actionable are done so that filtration unit are able to deliver the mini water oxidation
product.
References
De Waal, A.A. (2001) Power of Performance Management: How Leading Companies Create
Sustained Value, John Wiley & Sons, New York, NY, pp. 132- 156

De Waal, A.A. (2004) Stimulating performance-driven behaviour to obtain better results,

International Journal of Productivity and Performance Management, pp. 38-57