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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