Peter Browning &
CONTINENTAL
(Book: Managing Change; Cases and Concept,
Todd D Jick & Maury A Peipert, second edition,
McGraww Hill, pages 166 – 174)
Learning Objectives
 Describing
a problem in White Cap
Company
 Analyzing the problem to make a
change
 Implementing the change
White Cap Background

In 1926, William P. White and his 2 brothers
started the White Cap Company.
 White Cap is active in closure production and
distribution, in new product development and
in the design of cap making and capping
machinery.
 White Cap promoted itself as “Total system”
of Engineering service to the food industry.
 In 1956, The Continental Can Company
bought White Cap.

In 1984, The Continental Group was merged
into KMI Continental, a subsidiary of Peter
Kiewit Sons, a private construction company
 The White Cap become Continental White
Cap, the most profitable of the parent firm’s
nine divisions – each of which produced
different types of containers and packaging
 Despite the sale of White Cap 1956, The
White family continued to manage the
organization and its traditional company
White Cap Tradition Culture

WP White and Bob, his sons, inspired and
encouraged a strong sense of family among
their employees.
 Once hired, employee tended to remain and
to bring their friends and relatives as well.
 In exchange for hard work and commitment,
employees received good salaries, job
security and the feeling that they were part of
“winner”.
 White Cap was rife with rituals, ceremonies
and traditions.
 In 1982, Bob White stepped down, and turned
over to Art Lawson.
The Change Force

Many competitor who offered the twist- off
cap, a technology which invented by White
Cap.
 In 1982, price competition began to heat up in
the closure industry.
 In 1982, FDA approved the use of particular
Plastic containers which requiring plastic
closures.
 Many of company, change their container
from glass to plastic in order to customer
convenience of squeezable plastic bottle.
A Sense of Urgency
 Senior
White Cap had been reluctant to
allow R &D to commercialize plastics
developments because plastic threats in
the past had never materialized.
 Introduction of plastic packaging to
many White Cap’s traditional customers
threatened sales.
 White Cap knows this threatened, but
not yet fully realized, changes in the
competitive environment.
The Change

White Cap salary and administrative costs at
13% of net sales, compared with 3-4% ratio in
other divisions
 Continental Group itself was going through it
own period of “radical surgery” for cost cuts.
 Continental Assigned Peter Browning as
agent change in White Cap Company
Peter Brownings
Browning’s career began with White Cap and
Continental Can in 1964 as sales
representative in Detroit
 In 1979 , he returned to Chicago to become
vice president and general manager of
Continental’s Bondware Division, a producer
of waxed paper cups for hot and cold
beverages and food.

 During
the Bondware fall, he adopted a
drastic and accelerated change
program, employing what he called
“radical surgery” to reduce employee by
half, to eliminate an entire product line,
to close 4 to 6 manufacturing site.
 And in 5 years, Bondware began to rise
again
Browning is Reassigned

Early 1984, Browning received his
reassignment orders from CEO to White Cap
Divisions.
 CEO believed that his success with
Bondware and a veteran of White Cap was
surely the person to make those change.
 CEO instructed Browning to communicate a
sense of impending crisis and urgency to the
White Cap staff.

1.
2.
CEO had several major concern about
White Cap :
They saw competitive on slaught
brewing that they believed White Cap’s
managers did not recognize
The Continental’s CEO concerned that
White Cap’s long time success,
coupled with the benevolent
paternalism of the White family
management, had led to padded
administrative staff.
Taking Charge

In first months of Browning new position, his
attention to 3 issues :
1. He felt ha had to take some stand with
regard to Bob White. White was very much
alive in the hearts and minds of White Cap
employee.
2. A second challenge is Marketing
Department. It’s only administered existing
program. Not spending constructive time
with the customers.
3.

A Third, is a manager of Human
Resources, Tom Green, a veteran
White Capper with 25 years seniority.
Browning found Green had a few
constructive idea and seem to do a lot
of delegating and to spend a lot of
time reading Wall Street Journal.
Beside these 3 issue, Browning
wanted to rejuvenate White Cap and
yet not demoralize employee’s loyal
work force and management.
Summary

White Cap is successful company in the past
with tight tradition and culture which brought
by the founder
 Threaten is coming by using plastic as
container which need plastic closer.
 White never realized this threaten / changing
 Browning is reassigned by CEO of
Continental group as agent change in White
Cap
 Browning started changing with 3 issue.