Making things better
A Philips case study

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Page 4: Evaluation

Philips 2 Diagram 2At the end of 1992 a survey was carried out of the Centurion project, involving 1,500 Philips people in 15 countries. The results of the survey were mixed:

On the critical side - the evaluation showed that there was still a long way to go in managing cultural change, but at least the benefits were starting to materialise. This can be seen by a number of financial indicators.

Philips decided to move Centurion forward into a new phase of development. It was felt that the change process should be simplified so that people could understand it better. Philips decided to take fewer new initiatives and to place more emphasis on making existing initiatives work, they began to realise that looking at issues across departmental boundaries (process management) is a key determinant for success.

The new emphasis was on creating a clear set of values that would focus on the most important factors for the company:

Without customers there is no business. Therefore customers’ needs influence all of Philips’ decisions and actions. Within the organisation today there is a strong recognition that everyone contributes to the satisfaction of customers as part of a process which supplies value to the customer. Hundreds of customer surveys are carried out every year.

All of this is made possible by creating a highly motivated workforce. ‘Philips people are the company.’ Dedication, imagination and creativity bring competitive advantage. Philips recognises that people contribute their best when they know that they are appreciated for what they do. By setting up work teams, individuals have scope for growth and development within a framework of mutual support. Employee surveys have been carried out throughout Philips from 1994 onwards.

Philips has set out to create Philips 2 Diagram 3excellent value for customers by setting up a detailed quality framework to systematically assess business performance. In terms of profits, financial results are checked at every level and in all units of the organisation. In terms of enterprise, Philips is continually finding new ways to serve customers, improve quality and make money.

Philips | Making things better