|
 |
|
News and Events |
Preparing for Success in a Slow Growth Economy
By Matthew Levy
It has become apparent that slower growth will make 2008 a challenging year for many. And, as is common in a downturn, many companies are inadequately prepared for what lies ahead.
In uncertain times, careful execution of business strategies can make all the difference. However, despite all the rage of the balanced scorecard, management by objectives (MBO), and the lip service paid to alignment, many CEOs still struggle to know the extent of their employees' commitment to corporate objectives. Putting the number on the power point slide, the scorecard, or getting the "yes" nod, doesn't necessarily ensure appropriate action.
Whatever the strategy or objective, it is crucial to pay close attention to exactly what your executives are committed to and for what they are willing to be held accountable.
Last year, Results Management Group was hired by a publicly held global manufacturer of electronic equipment to assist in executing multi-year $150 million dollar cost cutting initiative. Through initial investigation, we found that this company lacked some crucial elements for success that are commonly missed: 1) a clear mandate from the board, 2) aligned commitments from executives, and 3) structures to keep executives accountable for execution and results.
The board set the target, but the management related to it like an objective that would be "nice to have" rather than a goal that "must be accomplished." The lack of congruency between the board of directors, CEO, and other executives responsible for the initiative, created a situation that put the cost cutting initiative, net profit, and the competitive position of the firm at risk.
I found it both interesting and concerning that it was a vice president, two levels down from the CEO, rather than the CEO himself or the business unit president, who recognized that the firm needed our assistance.
What followed was a series of interventions. Through dozens of meetings and critical conversations, the executive championing the initiative (the aforementioned VP) was able to align the board and other critical executives. As a result, what was expected in March of 2007 to be only $35 million dollars in cost savings resulted in more than $43 million by the year's end.
Although the client ended 2007 successfully, the process of alignment and implementation was far more difficult than it would have been, had the CEO ensured executive commitment to the board's targets at the beginning of the year.
In this uncertain year, CEOs must be able to count on absolute commitment to objectives and be able to ensure structures that keep everyone accountable for achieving those results. When commitments or plans go awry, quick and decisive action is crucial.
Matthew levy is the founder and CEO of Results Management Group, a management consultancy and executive coaching firm that works with CEOs and management teams to align on bold new visions to transform companies to achieve new levels of results. Reach us at www.resultsmanagementgroup.com or 1.888.251.2613 // 1.305.704.8990.
***************
Consultant Lists Ten Symptoms of Management Dysfunction on Heels of Merrill Lynch's Acknowledgment of Insufficient Team Cooperation
Ft. Lauderdale, FL, December 7, 2007 -- When John Thain, CEO of Merrill Lynch, pledged to revamp the bank's culture in response to insufficient management team cooperation that he believes contributed to its $8bn mortgage write down (Financial Times - December 3, 2007) he was also sending a wake-up call to CEOs everywhere.
"Thain's acknowledgment of culture and Management Dysfunction as a key contributor to poor business results is a courageous admission and other CEOs should be investigating it as well," said Matthew Levy, CEO of Results Management Group. "The impact on corporate culture of poor executive level collaboration may be the single most underestimated cause of weak corporate performance for large and small companies alike."
As companies across the nation prepare to execute next year's strategies, addressing executive team dysfunction now is of the essence. Identifying the symptoms of Management Dysfunction is critical.
Ft. Lauderdale software executive Richard Kincaid of Vertical Computer Systems explained, "we recognized that our executive team meetings were power struggles with polarizing positions that caused a dangerous, self-perpetuating cycle." Levy worked with Vertical to uncover other problem areas and set about teaching the executive team to redefine success, recognize each others strengths and styles, and gain velocity in goal attainment. Kincaid is excited about the results, saying, "Vertical's employees are united, excited and productive which accounts for our increase in sales, product line expansion and improved customer service."
Levy cites the following list to help CEOs identify common symptoms of Management Dysfunction:
1. Inability to deliver on breakthrough results
2. Lack of shared commitment to the same compelling vision or strategy
3. Chronic frustration or resignation of executives
4. Long list of unresolved issues, conflicts or disagreements
5. Frequent revisiting of decisions that were already made
6. Power struggles over resources
7. Leaders that are not accountable for the results they create and instead blame others.
8. Accepting mediocrity
9. Rarely hitting the numbers
10. High employee turnover
"Too frequently," says Levy, "executives know their company struggles with such issues, but they are resigned to letting them persist because they simply don't know what to do," explained Levy. "That's why Thain's remarks about Merrill Lynch are not only bold, but also smart."
##
Check Back Soon for Upcoming Events
Live Interview with Matthew Levy on WorldTalk Radio
Myths of Integrity & Using Alignment to Create Breakthrough Business Results Corporations and our culture overall greatly misunderstand integrity, holding it as an issue of right and wrong thus crippling our ability to create the true committed alignment. Our interview will explore the meaning of integrity, its relevance to our individual and organizational effectiveness, and the opportunity created from authentic alignment. ************* Executive Roundtable: Creating Accountability and Managing Teams
Participate in this Executive Roundtable Discussion and you will:
"Never
underestimate just how much human beings are willing to change
if you only engage them the right way" - M. Gandhi
What people are saying: …I took a risk and used some of his "stuff" right away…in my very next call to my largest client…The client agreed to everything [over $250,000 in new business]… - CEO, Tancher ...an amazing experience...I was communicating even more directly and powerfully the very next day and people around me were in action as a result... - Product Marketing Manager, Rand McNally ...I recommend this event to anyone who is interested in becoming a positive instrument of change...he definitely delivered all he promised - IT Process Consultant ...more support and contacts for my new business idea than I ever imagined... - Manager, TransUnion ...The discussions are energizing and enlightening...and make teams better..I strongly recommend it... - Marketing Manager, Perseco ...The conversation about the power of focusing everyone on the common goal, bringing people together to meet this goal, and how to achieve this to the benefit of all involved was very powerful and I brought it back to impact my company right away. You have an incredible ability to work with diverse groups of people and to bring them together to achieve a common goal... - Marketing Manager, CB Richard Ellis...an extraordinary evening...I left with a definite path to achieve my goals... - Manager, TransUnion ...I started using the skills right away...I was skeptical...but I am inspired that I am still using the skills and they have made me more successful... - Project Manager, Consumer Products, Perseco What is the Executive Roundtable? The Executive Roundtable is an advanced forum for accomplished business professionals who are interested in having the highest impact on their companies and the people with whom they work. It is designed for people who are interested in causing major results that go far beyond the norm. Executive Roundtable participants will transform their relationship to how they create results. In each session, participants will explore specific areas of their business in which they want to produce new dramatically different results. The format is highly interactive. (A light meal is sometimes served before the discussion.)Who should participate? Senior executives, managers, business owners or other organizational leaders that are committed to having the highest possible impact on their organizations and who desire to benefit from a powerful group learning dynamic and direct coaching. Accelerate Results In a group setting, the exploration of the many aspects of what it takes to create breakthrough results in business is accelerated. The group benefits from participants sharing and examining “in the trenches” workplace experiences of what has and hasn’t worked. How to pre-register: Select the desired event above and use your credit card or checking account for payment. The Executive Roundtable seating is limited, so register early to ensure participation. Preregistration is required. Advance payments can be applied to future dates if reschedule occurs 72 hrs prior to the event. Transfers are allowed. New Participants must preregister. No refunds please.Register Now Above! Space is limited. Early registration discount valid only until Friday prior to event Contact Results Management Group for more information e-mail or call 888.251.2613, Day of event call 312-224-8985 Copyright 2000-2005, Results Management Group, All Rights Reserved. |