Business screen magazine (1967)

THE BUSINESS CORPORATION Meets Problems of Era of Radical Change ■V New Fortune Film. Made in Cooperation ^^ itii Arnic-o Steel OVFR THh PAST TWO YEARS it has been a frequent editorial reference point in Fortune Magazine that we are living in an "Era of Radical Change." affecting our economy, our social institutions. and — profoundly — our business corporations. In a new motion picture. The Era of Radical Change ami the Corporation. Fortune Films, a department of the magazine, shows how one company — an old-line company at that — is attempting to cope with and condition its people for change. How Change .Effected .-Vrmco The film is presented in the public interest in cooperation with the Armco Steel Corporation, which served as an example of the processes of change as they affect today's corporations. TTie film demonstrates that in every area of operations, from production to marketing, the problem is how to motivate people to accept change, to participate in and help make the changes work. and. most important ( and difficult ) to use their initiative in creating change. Armco's part in the film project developed through conferences with Dynamic Films. Inc., producer of a previous, and highly successful. Fortune film. The Salesman Isn't Dead — He's Pilferenl. and with Robert C. Hattersley, head of Fortune Films. First of Corporate Studies This activity makes motion pictures on certain editorial subjects which prove to be particularly interesting and useful to the business Logan T. Johnston, hoard cliainiian of Armco Stiil. auuits signal of Oisixtant canuraman Dick Hlofxom for scene in ichich be is featured. community. .And this, the fir^t "corporation story" done by Fortune Films, was made because, it was thought that Armco represented the change syndrome so well that the company might serve as a prime example of the problems facing other companies in these times. Armco. which paid all production costs, agreed to give Fortune complete editorial authority in scripting and producing the picture. As a result, it is a thought William \ erity. president of Armco (right) listen.^ intently while director Maurice Rapf discusses a scene to he lensed in executive office of the big steel company. fully perceptive documentary, describing the problems and challenges of change taking place within the big Middletown, Ohio, steel producer. Company Is "Going Places" Probably few companies could, or would, stand still for this kind of probing, but Armco, which has been described as a shining example of a company really going places, comes out looking remarkably good as it thrashes its way out of old habits and old methods into the new technology and philosophy of change. It is interesting that the film does not examine a "glamor" company, where products themselves are symbols of change, but a company with venerable facilities grinding out the most basic commotlity of industrial society — steel. New Ca.sling Method Debaled Decisions are not always easily arrived at. as Armco prepares for the future. The plan to adopt a ncu continuous casting methix.! caused a lot of argument within the coni Amico Steel's controller, D. E, Boone, talks about computers in a scene from the Fortune Film on "The Era of Radical Change — and the Corjmration." pany. There were as many for the plan as against it. As President C. William Verity, Jr., says in the film, "It was nc easy decision . . . and after thrashing it around many times, the executive committee recommended that we hedge our bet." To which the narrator comments, "Not exactly a bold decision, and not everyone in the company was satisfied." But adjusting to new technology is a continuing problem in most industries, and basic production methods can't change every day, especially in an industry like steel. The Market: Chanj;es and Grows But Fortune pt)ints out that as it has often explained, what does elmnge. grow and become more complicated all the lime, is the area in which the products of the new technology must be sold — the market. The innovation and specialty of today becomes the commodity of tomorrow, and the tomorrows are coming much faster than they used to. Armco has always been an innovator in the steel industry. For ten years, the film points out, the company tried to sell aluminized steel for automobile mufflers — an obvious improvement — to Detroit, but it wasn't until 19.';9 that one major car maker switched to an aluminized muffler as standard equipment. Today, every American car built has all or part of its exhaust system made of aluminized steel. It's really a big market. Product Can Become Obsolete But the irony of it for Armco is that it can't even sit back and enjoy its share. Mufflers are going to be different because the whole system is going to be changed radically to help the smo^ problem. One solution will result in the exhaust gasses being much hotter, which could rule out aluminized. But this could mean that stainless steel is on the way in. "There's the era of radical change for you," an Armco executive says. "You spend ten years establishing something new and useful, and then find out it might be on the road to obsolescence just a few years after you get it accepted." Armco middle management seems to be keenly alert to the winds of change and ready for whatever they may bring. One young Armco man sums up this attitude in the concluding moments of the film: "Whether it's change wrought by use of a (CONCLUDED ON PAGE 209) Technical "task force" of .\rmco Steel Corporation, about to go overseas, pauses for film scenes shot at the company hangar in Middletotcn. Ohio. I7lh PRODLCTION RKVIEW 121