| Help Wanted -New Business Leadership | | | | gains; Marketing & Sales; Production & Distribution; |
| Styles and Practices Needed To Build | | | | R & D; Finance - [new month-by month Cashflow |
| Confidenceand Jump-Start the Economy. | | | | and Profit Forecasting required]; Human |
| By: Denis Orme | | | | Resources; Organizational design & General |
| ____________ | | | | Management. |
| America's help wanted ad should read, "New | | | | In order to determine if they are critical, ask the |
| business leadership needed to build confidence and | | | | question, "If this function or task is not done well |
| jump-start the economy. Only those willing to | | | | will there be a major negative impact on our |
| replace stale management styles need apply." | | | | business result or the functions supporting our |
| Business leaders are faced with an unpredictable | | | | business?" If the answer is 'Yes,' then this should |
| and frightening economic scenario - one they've | | | | be considered a Critical Success Factor. |
| never experienced before. First came the crash | | | | Always complete a month-by-month twelve to |
| of 2000, followed by the recent terrorist attacks, | | | | eighteen month forward projection of both |
| frightening investors and crippling the financial | | | | cashflow and profits. Without it you will not know |
| nerve center of our country. | | | | how much time you have to effect change. |
| Even before recent events American business | | | | Additionally these tools provide an effective way |
| had been in a twelve-month economic decline. | | | | to monitor your progress as you implement plans. |
| Each year for the last five years over 45,000 | | | | 2.LEADERSHIP EVALUATION - Because many of |
| corporate bankruptcies have impacted on the | | | | the problems currently facing the organization are |
| lives of over a million people annually. | | | | rooted in poor or ineffective leadership I have |
| Add to that the permanent loss of over | | | | found it beneficial for those in key positions to |
| 1,000,000 manufacturing jobs since 1999 and USA | | | | complete a Leadership Self-evaluation |
| businesses face serious restructuring in this new | | | | questionnaire and be part of a 360-degree |
| one-world market. | | | | feedback evaluation process. |
| Right sizing and scaling down are now normal | | | | In my experience, and in order to get an |
| business tactics. Over 800,000 Pink slips have | | | | organization on to a new growth cycle changes in |
| replaced signing bonuses of just a year or so ago | | | | leadership or leadership performance may be |
| and many businesses are "encouraging" | | | | required. These changes are also included in |
| employees to use up vacation days or work | | | | implementation Action Plans. |
| 4-day workweeks. | | | | 3.ACTION PLANS - In each area of focus, outline |
| No one ever downsized to greatness. | | | | detailed Action Plans to resolve shortcomings. |
| Politicians have their hands full defending our rights. | | | | Responsibility for accomplishing the task; timeline |
| They need the help of strong, innovative senior | | | | for attainment; players needed to produce the |
| executive teams and CEO's to rebuild America's | | | | result; and the anticipated result are always |
| confidence and jump-start the economy now. | | | | contained in Greenfields Action Plans. |
| To do that a new breed of business leader is | | | | If Action Items require a team approach to their |
| needed. Old management techniques need to be | | | | implementation, then the composition of the team |
| replaced with new leadership skills and business | | | | must be identified and put in place, but remember, |
| acumen. | | | | responsibility for achieving the result can only be |
| Traditional Business Planning Doesn't Work | | | | delegated to one person. |
| Too often executives tinker with, add to, or | | | | 4.MUTUAL TRUST - Building trust and respect |
| subtract from last year's plan. If you want more | | | | around the need for change is an imperative |
| of the same, just do more of the same. If you | | | | because without it, the desired changes simply will |
| had a poor or mediocre result then all you will get | | | | not occur. Undertake widespread education on the |
| is a similar mediocre result. Looking forward, even | | | | need for change, and depending on the amount of |
| if you had a good result, incremental planning will | | | | time you have (i.e., how fast your business or |
| now produce a poor result because the economy | | | | cashflow is slipping), this education should continue |
| has stalled, and recovery is not predicted until | | | | over several months. |
| mid-2002. | | | | This will not be the case for those organizations in |
| In my direct experience and in observing the | | | | crisis, and after two or three briefings on the |
| planning process in hundreds of companies, an | | | | situation or crisis (within a few days) there should |
| incremental approach to planning occurs just all | | | | be Implementation Updates on a regular basis. |
| too often and the approach provides self-limiting | | | | In the latter case trust will occur through a |
| outcomes. | | | | combination of initial briefings and the |
| The approach is self-limiting in that assumptions | | | | Implementation Updates. |
| (too often based on perception and not fact) are | | | | A willingness to trust may have been initially |
| made and self-imposed constraints follow. | | | | withheld, but once those working with you see |
| Additionally, organizations go through life-cycles, | | | | the urgency of actions, the results and your |
| just like the life-cycles people experience. | | | | willingness to share information, then they will |
| However, often senior management is not aware | | | | start to develop trust and respect. |
| of the company's life-cycle stage. If the stage is | | | | 5.CONFLICT RESOLUTION - Wherever there is |
| recognized, management may be unable to get | | | | change, poor communication, uncertainty, or poor |
| the organization back to the flexibility of a much | | | | results, there will be conflict. |
| younger, healthier, growing organization. | | | | Poor results require successful organizations to |
| Just as a family owned business must successfully | | | | get beyond the 'blame game' and where there is |
| transition from the founder to other family | | | | significant change, the organization must, through |
| members, so too must organizations transition | | | | this Greenfields Approach, provide support in |
| successfully through changes in leadership, | | | | conflict resolution. |
| economic shifts, or culture in order to get the | | | | Conflict is healthy when it is channeled towards |
| organization on to a new growth cycle. This | | | | producing the desired result towards a common |
| requires a vibrant leadership vision, new | | | | goal. That result must be beneficial to the |
| goal-driven strategies, and implementation of that | | | | organization and those associated with it, rather |
| vision by building and retaining high-performance | | | | than being rooted in the self-interest of just one |
| teams. | | | | person. |
| However, it is difficult to change an organization. | | | | Another frequent cause of conflict relates to |
| The culture you have today evolved over an | | | | personality or leadership style differences. |
| extended period and changing it will require a | | | | Regardless of personality differences or leadership |
| sustained commitment. If you relax, the culture | | | | styles it is not just a question of resolving the |
| will slip right back to the starting point. | | | | conflict, but how it is resolved that becomes |
| Any transition typically causes conflict that must | | | | important. |
| be managed. Often the organization may not be | | | | Wherever possible during conflict resolution mutual |
| able to transition effectively without intervention | | | | respect should be retained, or if this is not |
| from an outside influence or from the occurrence | | | | possible, work team reassignment may provide |
| of a triggering event. | | | | the only alternative to retaining an effective |
| The risk is that without change, you will lose your | | | | implementation program. |
| more dynamic people, lose market share and, | | | | 6.IMPLEMENTATION COMMITMENT - You have |
| unfortunately, in some cases, the organization | | | | now completed the Greenfields Planning Process |
| may die. I have presided over the dissolution of | | | | without constraint, but as you know all |
| several entities that were unable to make the | | | | organizations operate with some form of |
| transition. | | | | constraint, whether it be cashflow, not having the |
| Much of the thinking we do is incremental in | | | | right personnel, or even time-to-market product |
| nature. For example, in business you spend a lot | | | | issues. |
| of time reviewing where you are relative to | | | | Implementation plans are now evaluated in the |
| where you have come from, and also spend a | | | | context of "Given our specific constraints" |
| considerable amount of energy benchmarking | | | | What is realistic? |
| yourselves against your competitors. | | | | What is possible and practical? |
| While an incremental approach is human nature, it | | | | Action Items are adopted and prioritized according |
| is also self-limiting because as assumptions are | | | | to answers to these questions. |
| made, self-imposed constraints follow. | | | | In my experience, over 90% of all plan failures |
| The Greenfields Planning process ensures you | | | | relate to a lack of sustained commitment to |
| start with a clean slate. A key element in this | | | | implementation, with only 10% of the failures |
| approach is to avoid incremental, self-limiting | | | | arising from poor strategies contained in the plan. |
| thinking. | | | | The Greenfields approach will deliver Action Plans |
| The Greenfields Approach is straightforward: | | | | to facilitate the rapid turnaround of your |
| · If you were starting this Business or Business | | | | organization and provides you with an effective |
| Unit today, would you do business the same | | | | interim plan. Short-term successes give validity to |
| way? | | | | your overall plan and provide the time required for |
| · If you would not do things the same way, | | | | more sustained implementation through a cultural |
| then why are you doing it that way now? | | | | shift. |
| If you are looking for a quantum difference in | | | | Implementation Plans must be managed and |
| your business then the planning process should | | | | require not just the weight of key leaders behind |
| not commence with incremental, self-limiting | | | | them, but their active commitment and |
| thinking. Determination of actual constraints or | | | | participation. |
| finding ways to work around perceived | | | | Without continued open communication and the |
| constraints are the final stage in the planning | | | | sustained commitment of your senior |
| process #6 - Implementation Action Items. | | | | management group then the desired results |
| The Greenfields planning process has six key | | | | simply will not occur. |
| elements to be explored in the context of your | | | | After several months of effective |
| business, and it is now time to start rethinking | | | | implementation, you will be in a position to add the |
| your business and developing plans which need to | | | | dimension of more long-term thinking to your |
| deliver sustained high-performance results. The | | | | planning process. |
| planning process is rigorous, urgent, and driven by | | | | If you want to do something better, then under |
| Results-Based Leaders. | | | | the Greenfields approach you had better do |
| Remember, it is planning without constraint. | | | | something different. |
| 1.SITUATION ANALYSIS - Ensure broad | | | | If you want to do something different then you |
| participation in the completion of a detailed | | | | had better change your behavior. |
| Situation Analysis to identify all areas in your | | | | Have you:i.Created a sense of Urgency?ii.Created |
| organization requiring major review and change. | | | | and over communicated your organization's future |
| Note that an organization in decline will typically | | | | vision?iii.Built a guiding coalition around that |
| have low-growth or no-growth expectations. | | | | Vision?iv.Provided the opportunity for short-term |
| Many of those in the organization will be less likely | | | | wins?v.Provided a process to anchor changes in a |
| to want to even attempt to change or recapture | | | | new corporate culture? |
| market share and will reward those who 'follow | | | | By adopting and implementing the Greenfields |
| and don't rock the boat.' Generally, these | | | | Planning method, and by changing your leadership |
| organizations are more interested in retaining | | | | style and performance, you have now set the |
| internal relationships than taking personal risks | | | | course for a profitable sustainable long-term |
| usually associated with change. | | | | business result. |
| Accordingly, in those cases it will be important to | | | | Remember, while you are implementing change |
| form a more objective Venture Team to carry | | | | the economy will shift further, the market will |
| out the Situational Analysis. | | | | move, but most of all your people will need |
| How do you complete a Situational Analysis? | | | | strong centrally directed leadership (not autocratic |
| Determine those five or six Critical Success | | | | management) to keep the focus and achieve the |
| Factors - critical to the success of your | | | | result. |
| organization or functions within your organization, | | | | Based upon today's economy and the prognosis |
| including typical Strategic Plan elements: Market | | | | until mid-2002 isn't it time for you to act? |
| Research and the Opportunity for market share | | | | |