What's your projection for the completion of your turnaround - three months, three years? Turnarounds can be short and swift or long and consuming, but whatever it is, it's important for you to take notice of the challenges faced by those you have chosen to lead along side you, and acknowledge where they are. Empathy can go a long way when keeping your team motivated to continue to move forward.
During my first turnaround experience I remember being about six months into the engagement when my leader put his arm around my shoulder and said, “you are in a valley of despair right now but keep pushing, you’ll come out of it soon." My immediate reaction, was, "how did he know?" But of course he knew, he had been in my shoes several times before. I immediately shared what he said with my colleague, who was also facing his own set of challenges, and he said, "wow, he said something similar to me last week." The fact that our leader had been so intuitive about where we were was encouraging, and gave us the strength we needed to come back and fight through the problems one more day.
Understanding that because everything in your organization requires fixing - the people, processes and equipment - the turnaround will be an arduous journey, be it three months or three years. One of the best things you can do to help turn your organization around then is to know who labors among you and show some empathy from time to time, by telling your leadership team, "you're in a hard place right now but keep up the good work."
Monday, December 6, 2010
Tuesday, October 19, 2010
What's The Rush?
Two weeks into the engagement, a know it all, who I had inherited with the department, asked me, “so what are you going to do?” My response, "nothing, at the moment." She was aghast! Not in that, the clouds parted the sky, a rainbow appeared in all of its brilliant colors and the sound of angels singing a chorus of "Ahhhhhhs" kind of way, but with that appalled, I can't believe you're not going to do anything, attitude. She frowned. I smirked.
It’s not unusual for new managers to come into an organization and immediately begin making changes before they have a full understanding of what's going on. However, I had decided to watch and learn, prior to making any major changes. Oh, there were processes that needed to be put in place right away, such as instituting robust, and consistent, documentation practices so that training and other procedural tasks could be recorded and tracked. However, the system was already broken, and nothing was going to change overnight - which is a completely different topic, so observing for four weeks wasn’t going to worsen the situation.
Taking time for an assessment, during a change effort, is essential, and it happens infrequently at best. But being able to assess the situation is invaluable. It is just the opportunity needed to get to know the shop floor employees. Taking the time to engage employees in conversation about their daily grind propels me light years ahead. And the knowledge gained gives me a better idea of where the gaps are and what measures should be put in place to begin closing them. Remember, the goal is to turn the organization around, which means you want progression, even if it’s just a few steps at a time. Taking your time, and not rushing into the matter will assist you in making strides in the right direction.
If you’re in the midst of a turnaround, do yourself a favor and take the time to assess your threats and opportunities by getting to know your employees. You’ll be amazed at what you’ll learn.
It’s not unusual for new managers to come into an organization and immediately begin making changes before they have a full understanding of what's going on. However, I had decided to watch and learn, prior to making any major changes. Oh, there were processes that needed to be put in place right away, such as instituting robust, and consistent, documentation practices so that training and other procedural tasks could be recorded and tracked. However, the system was already broken, and nothing was going to change overnight - which is a completely different topic, so observing for four weeks wasn’t going to worsen the situation.
Taking time for an assessment, during a change effort, is essential, and it happens infrequently at best. But being able to assess the situation is invaluable. It is just the opportunity needed to get to know the shop floor employees. Taking the time to engage employees in conversation about their daily grind propels me light years ahead. And the knowledge gained gives me a better idea of where the gaps are and what measures should be put in place to begin closing them. Remember, the goal is to turn the organization around, which means you want progression, even if it’s just a few steps at a time. Taking your time, and not rushing into the matter will assist you in making strides in the right direction.
If you’re in the midst of a turnaround, do yourself a favor and take the time to assess your threats and opportunities by getting to know your employees. You’ll be amazed at what you’ll learn.
Monday, October 4, 2010
The Right Leadership Style for a Turnaround
Operating a company or business unit through a turnaround is unlike operating an organization through normal business conditions, and therefore, requires a unique type of leadership for it's success. Today, the transformational leadership style is being accepted more and more by CEOs, and many companies have embraced transformational leadership, along with servant leadership, as the saving grace of leadership styles. But can a transformational leader, lead a company through a turnaround?
Turnarounds become necessary when an organization takes a severely downward turn financially, or when some other existence-threatening decline has occurred. The deterioration of an organization doesn’t happen over night, nor is it caused by a single event, but rather is perpetuated by a cycle of events of poor decision-making by leadership, lack of communication and a lack of support of the employees. And by the time a turnaround becomes necessary the organization is laden with staff that feels a sense of helplessness, characterized by employees who harbor secrets, place blame on others, and point fingers. Employees also become protective of information, refusing to share information with one another, even to the detriment of the company.
As I’ve said before, turnarounds can be excruciatingly painful because it often requires extreme changes to occur if the organization is going to recover from its slump. If the leader decides to cut spending, close an office or terminate ineffective employees, then this further exacerbates any confusion and distrust that exist in the employees. It’s important for leadership to work to restore the confidence of the employees, because doing so will produce the effort and persistence needed to bring stability back to the organization. And transformational leaders have a penchant for restoring confidence in their employees, but this quality may or may not be the most important competency needed for the turnaround.
Turning around a failing company requires putting accountabilities in place. And building accountability involves setting production targets, developing performance management systems, and establishing consequences for poor performance. So does this mean that a transformational leader cannot be effective at leading a company out of a crisis? No, but the nature of transformational leader is not prescriptive and this inevitably means that a transformational leader will have to employ additional skills in order to be successful.
To sum it all up, leaders will require intricate and detailed knowledge of the company and their key stakeholders if they’re going to bring the company back to black. Researching and analyzing the past and present performance of the organization will impel both employees and stakeholders to a place of trust and confidence in their leadership. It has been said that, the difference between leadership and management is, leadership is deciding what to do while management is deciding how to do it. Therefore, in the end, the success of the turnaround will largely depend on the extent to which the leader leads but also manages the process.
Turnarounds become necessary when an organization takes a severely downward turn financially, or when some other existence-threatening decline has occurred. The deterioration of an organization doesn’t happen over night, nor is it caused by a single event, but rather is perpetuated by a cycle of events of poor decision-making by leadership, lack of communication and a lack of support of the employees. And by the time a turnaround becomes necessary the organization is laden with staff that feels a sense of helplessness, characterized by employees who harbor secrets, place blame on others, and point fingers. Employees also become protective of information, refusing to share information with one another, even to the detriment of the company.
As I’ve said before, turnarounds can be excruciatingly painful because it often requires extreme changes to occur if the organization is going to recover from its slump. If the leader decides to cut spending, close an office or terminate ineffective employees, then this further exacerbates any confusion and distrust that exist in the employees. It’s important for leadership to work to restore the confidence of the employees, because doing so will produce the effort and persistence needed to bring stability back to the organization. And transformational leaders have a penchant for restoring confidence in their employees, but this quality may or may not be the most important competency needed for the turnaround.
Turning around a failing company requires putting accountabilities in place. And building accountability involves setting production targets, developing performance management systems, and establishing consequences for poor performance. So does this mean that a transformational leader cannot be effective at leading a company out of a crisis? No, but the nature of transformational leader is not prescriptive and this inevitably means that a transformational leader will have to employ additional skills in order to be successful.
To sum it all up, leaders will require intricate and detailed knowledge of the company and their key stakeholders if they’re going to bring the company back to black. Researching and analyzing the past and present performance of the organization will impel both employees and stakeholders to a place of trust and confidence in their leadership. It has been said that, the difference between leadership and management is, leadership is deciding what to do while management is deciding how to do it. Therefore, in the end, the success of the turnaround will largely depend on the extent to which the leader leads but also manages the process.
Saturday, September 25, 2010
The Beginning of A Turnaround
I should have started this blog two and a half years ago, but was too busy helping to turn an organization around. There are so many stories to tell, so many lessons learned, lessons that can be used for the next engagement.
Many companies are in a state of flux, but many more are in a state of crisis. Crises immediately send management into panic mode, causing it to begin taking radical steps which they hope will stop the bleeding. Those steps mostly include making decisions to discontinue spending, closing plants/offices, and terminating ineffective managers and employees. And because of this, turnarounds are oftentimes excruciatingly painful and leave behind lots of scars.
I love being involved with turnarounds. Yes, they're taxing and sometimes down right stressful, but there is never a dull moment. Everything moves at a much more rapid pace than when doing normal business. I also enjoy them because, unlike my colleagues who spend their time working to improve processes, procedures and equipment, I get to spend time with the employees, which one could argue, is the most difficult part of a turnaround.
Turning around an organization, through it's employees, involves changing a counterproductive culture, developing leaders and building skill levels. No easy feat, especially when the change must often begin with management. But if I can get management on the same page, and aligned with where I see the areas of improvement are, then I'm on my way to helping rebuild a healthy organization.
Many companies are in a state of flux, but many more are in a state of crisis. Crises immediately send management into panic mode, causing it to begin taking radical steps which they hope will stop the bleeding. Those steps mostly include making decisions to discontinue spending, closing plants/offices, and terminating ineffective managers and employees. And because of this, turnarounds are oftentimes excruciatingly painful and leave behind lots of scars.
I love being involved with turnarounds. Yes, they're taxing and sometimes down right stressful, but there is never a dull moment. Everything moves at a much more rapid pace than when doing normal business. I also enjoy them because, unlike my colleagues who spend their time working to improve processes, procedures and equipment, I get to spend time with the employees, which one could argue, is the most difficult part of a turnaround.
Turning around an organization, through it's employees, involves changing a counterproductive culture, developing leaders and building skill levels. No easy feat, especially when the change must often begin with management. But if I can get management on the same page, and aligned with where I see the areas of improvement are, then I'm on my way to helping rebuild a healthy organization.
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