“Cut, cut, cut!” This is one of the most overused fiscal mantras recited by company management of all shapes and sizes, yet one not practiced granularly or wisely enough to actually sustain retained earnings.
Cost-cutting — or phrased more positively “rightsizing expenses to improve profits” — requires new mindsets and new frameworks as opposed to old negative hatchets. Today, C-suites locally and globally are re-examining their internal dynamics, fiscal positioning and how they negotiate with vendors and employees to find new value.
About 80% of my consulting experience is turnaround management: Triage finance mixed with operational math, HR improvements and refreshed branding and marketing to revitalize business models — very, very quickly.
Growing or turning around any company’s profits requires finding new value that new customers are willing to pay for, and employees and vendors are willing to deliver.
PROBLEM ONE: Companies facing fiscal trouble typically have no idea which customers are their most profitable customers, which employees are their most profitable employees and which vendors are their most profitable sources of supply or service innovation. (read more…)
When I took over ACAM Advisors in early 2003, investment returns had been below average for several years, and two important clients had recently defected. The majority owners hinted to me that, in their view, layoffs might be in order. From my perspective, the firm’s client list had enough A-list names still on it, and the CVs of the professional staff looked impressive. Surely there was value here.
When a new manager takes over a troubled business unit or company, often the culture of that unit or company demands immediate attention. But how to do it quickly? Turnaround situations call for urgent moves, and entrenched cultures are highly resistant to change. It usually takes a long time to change the existing one or to create a new one.
In such situations, a manager must look for openings where an action on his or her part will send a short, sharp message that things are changing. (read more…)
Is your workplace dull and frustrating, or is it engaging and inspiring?
This is a question I pose to leaders frequently. Most leaders pay more attention to the way their team is performing than to the way their team is operating.
A reader asked me recently about the nature of the “yes or no” answer I was forcing to this question. “What if your company culture is somewhere in the middle?”
My experience and research leads me to believe that most teams, departments, divisions, companies, etc., are somewhere in the middle of this continuum. Your experiences probably mirror mine — you probably see your team somewhere between those “extremes.”
What my experience and research also leads me to believe is that if your team (or department, etc.) culture is at any stage on that continuum that is less than engaging and inspiring, it’s costing you money, eroding team-member engagement and creating lousy customer experiences. (read more…)
A warm late December evening in Miami awaited the 163 passengers who traveled on Eastern Air Lines Flight 401 from New York to Florida. During the otherwise uneventful trip, marriage proposals were made, a young couple looked forward to introducing their newborn baby to awaiting grandparents, and college students headed back to school after the holidays. But in a few hours, over 100 of the passengers and crewmembers would be dead. The tragically simple cause of their death will not only shock you, but as the leader of your organization, will also provide a fair warning lesson in the problem of over-focusing on one issue or problem at the expense of other risks.
On Dec. 29, 1972, Eastern Air Lines Flight 401 left New York’s JFK Airport and was approaching Miami International Airport at approximately midnight, when the nose landing gear indicator did not illuminate. The pilots had to identify whether the landing gear had indeed failed to extend, or more likely, if the indicator bulb in the cockpit had simply burned out. (read more…)