Monthly Archives: July 2015

Rebuilding Year(s)

The business owner CEO does not have the option of resigning.I’m a Philadelphia Phillies fan, which means I’m following the team with the worst record in Major League baseball right now (July, 2015). It’s a “rebuilding year” for the Phillies, a pretty rough period.

In baseball, a rebuilding year generally causes more than a poor win-loss record. Management changes are inevitable. Fewer fans attend the games. High-priced players are traded for younger, cheaper, potential-laden minor leaguers. In the case of the Phillies, all of this is happening, and more. The manager they brought on to see the team through this difficult transition grew weary of losing, and resigned. (That’s right. He wasn’t fired, he resigned.)

For the past six years, I’ve been coaching a CEO (we’ll call him Tom) who decided to take on a “rebuilding year”. Sales were flat, profits were meager and cyclical, and the competition was intensifying. Tom’s tendency was to try to do everything himself, and he longed to discover effective marketing and sales processes, areas that he considered to be personal weaknesses. His relationship with his business was unhealthy – his description: “I feel like a slave”.

Tom’s rebuilding year actually took about four. It included the following:

  1. Developed a new product that addressed a shift in customer preferences – earlier than was recognized by his competition.
  2. Pushed his VP Marketing & Sales hard to identify and grow new opportunities. When he didn’t, he was replaced.
  3. Took a personal interest in an area of marketing that was integral to their future success, and brought others in to do the work after he understood what was required.
  4. Through some trial-and-error, figured out how to recruit, hire, and mostly keep talented people needed to stimulate and sustain ongoing corporate growth.

It was a bumpy ride. The new product development effort sucked up resources that the company did not initially have (both human and financial). The development of a larger organization included the usual complement of bad hires and redirection. Boot-strapping the financing of the growth, rather than borrowing a bunch of money, caused serious frustration in the early going. But Tom persevered, knowing that neither resignation nor termination were options.

While the “rebuilding year” (four) is now in the rearview mirror, it’s not over. The vision that Tom developed for his enterprise has the entire team working towards “the next big thing” for the business. His bank account is healthy, his workforce is high caliber, and the team has a sense of direction. The need for rebuilding has been replaced by a drive to stay on top.

The Phillies should be so lucky.

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Creating positive change in an organization is one of the most difficult tasks facing a CEOYou don’t have to look far to find books or articles proclaiming how to accomplish effective organizational change.  Many of these are worthy of your attention.

But if you happen to be the proponent of an upcoming change for your business, you would best start preparing by engaging in some serious introspection. Let me explain my point using a very personal example.

My own personal vision and life circumstances have recently combined to cause a lot of introspection. My spouse and I are in the throes of planning our “next chapter”. It will involve substantial change. It has caused me to reflect on a handful of some of the most important changes I have experienced since birth. Here’s a recap, ultimately tied into a business lesson.

My personal journey down memory lane led me to conclude that some of the most memorable changes in my life occurred in my youth. Changes like being pushed from the nest into nursery school; or transitioning from elementary school to junior high, where we had to change classes multiple times each day; or graduating to high school where my sophomore class size was 1100 students; or saying goodbye to a large high school and hello to a small college; not to mention seven job changes and relocations within the first 17 years after college.

Now, after living in the same home for 29 years, change finally looms again. We have grown comfortable with our house, our neighborhood, our friends, our church, and our surroundings in general. But our children and grandchildren are on the other side of the continent. Emotion suggests that we stay where we are comfortable and buy lots of plane tickets to enjoy being with family multiple times a year. Yet logic relentlessly pushes for relocation closer to family.

At this moment, the concept of change is very real and very personal. I believe I’m in an appropriate frame of mind to understand how your employees might feel when you are bringing a major change to the business or to their role in the business. I believe the most important factors involved in the inherent resistance to change are:

  • The involuntary nature of most change, viewed from the perspective of an employee
  • The relative comfort of “the present”, again from the perspective of the employee

In my personal situation, our upcoming relocation is, in a sense, forced. It’s forced by our advancing age and the anticipation of the inevitable decline in health. This makes it difficult.

Since our present circumstances are comfortable, since it will be difficult to leave good friends and familiar surroundings, score another blow for difficult change.

However, the rest of the story is more important than these two realizations. The attraction of being a larger part of our children’s and grandchildren’s lives; of being more available to help out; of being present to celebrate birthdays and holidays; is strong. The attraction to get to know new territory, to get to make new friends, to prove that we remain vibrant and significant as we approach seven decades on the planet – this attraction to relocate a couple thousand miles and make a difference in new ways also imposes a seemingly magnetic pull. And the magnets enumerated are strong.

As a business owner who is leading change, you will be most successful if you can identify with those specific fears or perceived losses that make the change difficult for each individual employee.  Then, identify and clearly articulate the “magnets” associated with your proposed change. Feeling their pain and showing them the positive tradeoff of the change should be central to your change strategy.