Work Environments that Support Results
Situation: A Venezuelan subsidiary of a Fortune 500 pharmaceutical and consumer products company experienced ineffective financial controls, lack of accountability in purchasing, frustrated staff, poor communication between departments and between levels, and inefficiencies in various finance departments.
Objective: 1) Create efficient processes in accounts payables, accountability in spending, and consistency in data management. 2) Have front line staff drive the recommendations for change.
Action: 1) Created and implemented a process redesign that relied heavily on line employee input and participation 2) Facilitated cross-functional and multi-level collaboration.
Results: Communication improved across departments and between levels of hierarchy and paper flow in the purchasing department decreased by 30%. Accountability improved when more streamlined financial controls replaced superfluous ones. And, line workers were also empowered to drive the redesign of financial processes and create common standards for data entry.
Situation: Three siblings owned and managed a real estate development company with $3M in rental revenue per year. Their mother and father were mostly silent shareholders. One business service was outsourced to a family member, which caused strife and disagreement about how to address it. Their partnership agreement was written on a napkin, and the operational roles of the family members needed to be clarified. Discussions meant red-faced yelling. One sibling threatened to quit. The growth and stability of the company and family relations were both at risk. Parents were fed up with the fighting and demanded the siblings “learn to get along.” They worked with consultants before on this to no avail.
Action: We analyzed the situation, expectations, strategy, and organization and mapped elements of family culture. In group meetings, parents’ need for harmony was explored in the context of past and future family legacy and the business. We examined the root causes of conflict, clarified vision, strategy, and values, and fostered new agreements. Plans were agreed to for the compassionate exit of the family member supplier. Roles and partner agreements were formalized, and salaries were negotiated.
Results: The siblings learned to listen to each other, speak openly and honestly, and make decisions in service of the company. All brothers remained in the business. Experienced professionals were hired as leaders and coached to support the growth as the business went through 3 significant business model changes. The company went from making $3M a year from industrial rental income to developing and selling luxury properties worth more than $25M and increasing rental income significantly. With the newfound harmony, the third generation is moving back home and clamoring to get into the business.
Situation: A successful 5th Generation medical equipment distributor selling about $70M in equipment and services just executed a difficult ownership and management transition to the next generation. The older generation was embroiled in a three-year legal battle that handicapped the company and caused fractures in the family. The legal portion of the dispute was resolved by retiring the older generation and selling the company to the younger. Some members of the family still were not speaking to each other. Emotional stress on this younger generation was extreme. Managing the company as a group of untrusting cousins and without a CEO resulted in difficult and slow decision making and risk to the family fortune that was tied up in the company. Employees were used to following a strong leader and were uncertain about the future of the company. Their main concern was to stabilize the business under new management and ensure effective and harmonious decision making. Trust was missing and fear was present. Familial and business relations were strained.
Action: Prepared a detailed assessment and report outlining strategic challenges and opportunities for the business and the family. Led ownership and management meetings to guide the set-up of a family business council and it’s writing of a family business constitution as a way to build trust, recreate relationships and set vision and governance policies. Brought in financial management advisory to strengthen the finance department. Coached family member executives/board members and developed a new CEO. Set the foundation by policy and practice to separate and strengthen the executive team and board of directors. Facilitated the deep work of putting the older generations’ conflict in the past and minimizing it’s impact on the younger generation.
Results: The business was stabilized and is experiencing growth and increased profitability. Familial relations greatly improved and in some places are great. New business strategy was developed and new executives were hired into an executive team that has leadership and where their contribution is valued and valuable. The Family Business Constitution provides guidance for effective decision making that is based on shared values and commitments for a new legacy to be created and its creation healed wounds from the past generation’s conflict. Separate board and executive team allows greater contribution from non-family executives and having governance, strategic and management discussions in their proper place. The younger generation meets as a broader group of cousins socially and familial relations have been largely, all though not completely restored. Over the period of the engagement the company grew from $70M to $165M in sales.
Situation: Company struggled with difficult union relations, which impacted their productivity, operations, and safety. Communications were not productive between management and workers and the union leadership was withholding their support of a process to dramatically improve worker-management collaboration and safety.
Objectives: 1) Improve worker relations, safety and productivity. 2) Inspire support of the union. 3) Transform the work environment from one dominated by a confrontational management style to a collaborative partnership.
Action: Led a series of high-impact leadership and management development sessions for line managers and executives.
Results: Line managers learned to stop using intimidation to drive behavioral changes and instead, started collaborating with their reports to address safety and performance issues. Union leadership related that employees were impressed with this immediate shift in management style and pledged their support for additional safety and culture change initiatives.
Passionate Engaged Workforce
Situation: A star financial executive felt a lack of professional fulfillment and was resigned to leaving his firm. The executive managed 12 controllers and advised a multi-billion dollar international division, but desired an operational finance role. The executive’s unhappiness at work was a drain on his coworkers, contributing to the already difficult environment of corporate reorganization. Family relations were also strained as a result.
Objective: 1) Transform the feeling of resignation into passion. 2) Create an action plan for advancement.
Action: Assessed the situation and provided leadership development/communication coaching.
Results: The executive regained interest in the company and passion for what he might create by staying with the firm and supporting the reorganization. He became a more powerful leader and was quickly proud of his new contributions. He also inspired a team of colleagues to support him in finding and attaining another position. The executive accepted a promotion and began an operational role within three months. His family was elated to move closer to friends and family.
Sales Growth, Cost Reduction, Value Enhancement
Situation: A $300M ann. revenue hypermarket chain in Latin America had several significant strategic, operational, and growth challenges: 1) The company didn’t have a CEO, there was no plan for finding one and no family member or executive wanted the role. 2) The family didn’t have a vision for the company that they agreed to, 3) The eldest patriarch was unwilling to step down and was thus hijacking retirement for the founding generation, and 4) the 2nd Generation was tied-up in the day-to-day management of the businesses and thus unable to oversee corporate operations and execute growth plans, and 5) having spent their entire careers in that business, the family lacked specific functional expertise required to take the already large and complicated company to the next level.
Action: Over 10 months, we led a series of shareholder meetings and executive team meetings, and performed individual executive coaching, all to establish trust, facilitate succession, align on a bold vision and company growth goals, set strategy and organizational redesign, and transform individual behavior and group dynamics.
Results: Generational succession was realized, a CEO was anointed and confirmed smoothly, vision for the family was created, separately a vision for the family business and the main business was created and committed to. Roles of the managing family members were modified and an executive leadership team with a new CEO was created. A culture of openness and new mindset for adding non-family executives and other professionals then supported scalable growth for years to come. New vision for growth realized $600M in revenue per year after 5 years.
Situation: A Vice President of a well-known financial services firm sought to increase sales through intermediaries and to decrease staff travel—while the division was going through reorganization.
Objective: Increase overall revenue and market share by improving relationships with intermediaries. Meanwhile, decrease travel required to serve clients.
Action: Improve their sales effectiveness, client relationship management, leadership, and communication abilities.
Results: After our engagement, relationships with intermediaries were transformed from transactional to more of a collaborative partnership. As a result, sales increased by more than 50% over the previous year. Market share rose from 30% to more than 50% overall and as high as 82% in some channels. In addition, support staff began to assist in sales process, enabling them to decrease travel time, allowing staff more time at home with their families.
Situation: An accounting firm had low profitability, inconsistent quality of service, and a strained work environment. An excessive amount of time was spent on client work that was not billed and some clients were billed below market rates. The managing principal was overworked and missing opportunities to use the staff’s full potential.
Objective: Increase profit. Shift culture and practices to favor both accuracy and improved customer service. Improve employee relations. Reduce managing principle’s hours.
Action: Provided ongoing leadership development and business management consulting for the managing principal to help change the management style and create new results-based culture in its place.
Results: Revenue increased by 10% during the first three months. The staff embraced a new set of corporate values (values that were aligned with profitability, accuracy, speed, and consistency in customer service). The managing principal learned to collaborate and inspire staff through effective communication. Management-staff relations improved and employee motivation created a more peaceful and trusting work environment. Inspired by a new bonus program, staff accountants increased billable hours while the principal decreased workload by 10 hours/week.
Situation: A technology services firm CEO wanted to double sales within 12 months, but had no time, strategy, or plan to make it happen.
Objective: Discover to reveal opportunities for breakthrough growth. Guide the CEO to redirect organization and achieve a 100% increase in sales.
Action: Provided executive coaching for CEO focusing on four areas:
1) Discovering opportunities for new business
2) Assessing and recreating client relationships
3) Delegating workload to staff
4) Developing growth strategies
Results: Sales doubled within six months, mostly from additional business with current clients. The new acquisition strategy resulted in an additional 50% increase in sales 18 months later.
Sales Growth, Cost Reduction, Value Enhancement
Situation: A software company, serving clients internationally, was experiencing great success in sales. However, the executive team lacked commitment to a common vision for the future of the company and was struggling to resolve crucial operational issues. It also lacked the organizational structure and culture to meet client demand and to expand to new markets. Executive conflict and frustration was at an all time high. Employee productivity and engagement were low.
Action:
1) Discovered the cores issues of executive conflict and created new and productive working dynamic.
2) Aligned the executive team to a bold new vision and strategy that incorporated new market penetration, acquisitions, a new organization design, and operational.
3)Coached executive team members and other team leaders to promote interpersonal and operational effectiveness
4) Discovered employees’ passions and recreated new roles to improve satisfaction and productivity
Results: The new vision and executive effectiveness caused an opportunity and urgency for growth that resulted in the successful integration of 2 companies. Additionally, a newly designed organization and corporate culture supports increased sales.
Situation: A New York City dance company was preparing for its largest production, but management and the board were not aligned over the direction of the company. Plus, the board and dancers didn’t know each other and management was not comfortable making necessary requests of the board.
Objectives: To air disagreement and align on market assumptions and objectives, so business case could be completed.
Action: 1) Interviewed team members from both divisions to assess situation. 2) Facilitated a joint discovery process to expose areas of disagreement and align on new course of action to complete the project.
Results: Stakeholders exposed their areas of disagreement and they created a joint plan to address the issues. A business plan was completed and presented for funding to corporate management.
Situation: Three separate divisions of the company were collaborating on a project to create a business case for developing a multi-billion dollar business to serve the energy distribution industry in Brazil. But they’d come to a block, because two of the divisions held differing assumptions about the marketplace. Plus, the divisions were working under competing objectives and incentives from their respective senior management.
Objective: Increase profit. Shift culture and practices to favor both accuracy and improved customer service. Improve employee relations. Reduce managing principle’s hours.
Action: Provided ongoing leadership development and business management consulting for the managing principal to help change the management style and create new results-based culture in its place.
Results: Revenue increased by 10% during the first three months. The staff embraced a new set of corporate values (values that were aligned with profitability, accuracy, speed, and consistency in customer service). The managing principal learned to collaborate and inspire staff through effective communication. Management-staff relations improved and employee motivation created a more peaceful and trusting work environment. Inspired by a new bonus program, staff accountants increased billable hours while the principal decreased workload by 10 hours/week.
Situation: The CEO and President of a growing professional services firm found themselves in frequent conflict with each other and unable to make key decisions.
Objective: To discover the source of conflict, eliminate ineffectiveness, and create a basis for strong, effective partnership.
Action: Assessed barriers to effective collaboration and facilitated a process to align partners and teach skills in creative conflict utilization.
Results: Revenue increased by 10% during the first three months. The staff embraced a new set of corporate values (values that were aligned with profitability, accuracy, speed, and consistency in customer service). The managing principal learned to collaborate and inspire staff through effective communication. Management-staff relations improved and employee motivation created a more peaceful and trusting work environment. Inspired by a new bonus program, staff accountants increased billable hours while the principal decreased workload by 10 hours/week.
Effective Leadership, Communication, and Collaboration
Situation: By the end of Q1 it was obvious that the client was going to miss its $50 million cost cutting target by at least $15 million, based on promises from divisional leadership.
Objective: Achieve alignment from Board of directors through to divisional vice presidents responsible for the effort, to maximize cost cutting.
Action: Executive coaching, leadership development, mindset and behavior shifting.
Results: Alignment from the board of directors down through the CEO and the business unit Vice Presidents. Cost cutting came in at $43MM. Not the $50MM the board wanted, but more than $8 million beyond the Q1 commitments — far beyond what would have been achieved without the intervention.
Situation: An accomplished marketing manager of this well-known consumer products firm became ineffective with co-workers during times of disagreement and conflict. The company was going through a reorganization, which brought this manager’s challenges to the forefront.
Objective: To provide the manager with the communication skills she needed to inspire co-workers to take action.
Action: Assessed the abilities of the manager and provided coaching with the goal of improving her individual and team effectiveness.
Results: Manager gained profound insights about speaking and listening in critical conversations, especially when the stakes were high. She learned to stop herself when judging others and be attentive in conversation. She became clear, powerful, and inspiring without “being pushy.”