ModIV Product Development Team Essay

8276 Words Sep 16th, 2014 34 Pages
For the exclusive use of Y. Zhou
Harvard Business School

Rev. March 5, 1991

Mod IV Product Development Team
It was April 1989. Just four months remained until the Honeywell Building Controls
Division (BCD) planned to introduce the Mod IV, and the product development team was fighting to stay on schedule. Mod IV, a motor used in heating, ventilating, and air-conditioning
(HVAC) applications, represented the most ambitious project in the division's history, and the product's development reflected many of the changes the division had experienced in recent years.
For three people in particular, Mod IV also typified the challenges of working amid new pressures and demands.
As director of HVAC Controls, one of the
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BCD employed 1250 people and recorded 1988 sales of more than $150 million. The division dealt with two types of customers, original equipment manufacturers (OEMs) and trade customers. The OEMs incorporated Honeywell products into their own products, which they in turn sold to the market.
Trade customers sold Honeywell products directly to the market. BCD placed highest priority on the quality of its products, on the division's flexibility, and on its response to customers. The division's profitability and return on investment—both well above industry averages—were points of pride.
1981 marked the first and only year in Honeywell's history that its Residential and Building
Controls Division lost money. Controls were Honeywell's original business, and the shock of 1981 brought new management to this division, management determined to regain Honeywell's competitive edge. As part of the recovery process, Honeywell split residential and building controls into two separate divisions, thus creating the Building Controls Division. To end the days when people from engineering, manufacturing, and marketing/sales worked in different locations, a new building was constructed with enough room to house everyone. To integrate the three major functional areas, BCD introduced a series of changes that intertwined to create a new form

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