Now playing (again and again) at a theater or office near you:
New CEO or Top Leader Arrives, and…
- The Royal Audiences begin, where a tone of “I’m here to save you” is unspoken but clearly articulated by the new CEO.
- Change is the underlying theme in her words, yet the reason for change is not clear, and exactly what will change is left to the imagination of the populace.
- Some old faces disappear to be replaced quickly by faces familiar to the new CEO. The henchmen have arrived. A few of the former team join the squad and their other face becomes visible to all.
- The inquisitions begin…where people are lined up in front of note-taking head-nodders and the formerly good employee is reduced to an apologist for past transgressions imagined through the very filtered view in the rear-view mirror. There’s always at least one inquisitor jester that turns the victim’s discomfort into humor for the inquisitors.
- Fear grows like a quiet cancer in the workplace. Employees respond just as they always do to fear. Innovation ceases, infighting increases and good people update their CVs.
- The trumpets blare and the announcement of a new strategic evaluation is made. The court is convening to rethink everything. The doors shut, and occasionally open to allow a select few into the hallowed rooms.
- Fear grows and some people scurry to leave and some scurry desperately to survive.
- Very quietly, more faces disappear along with their institutional knowledge, leaving a mild tinge of bitterness in the workplace environment after having invested blood, sweat and time, just to see it be summarily devalued. Those that remain feel cast adrift.
- The trumpets blare once again and the new strategy is handed down to cheering throngs, none of whom are cheering for the new strategy, but rather for the fact that they might have a chance to keep their jobs.
- A large number of trivial change initiatives are embraced with false enthusiasm.
And the leader looks down upon the populace and smiles, secure in her knowledge that she has saved the kingdom from itself.
Over time, this new leader becomes the old leader, a new normal is established and due mostly to the hard work of the employees, some things change and life goes on until it’s time to start the process all over again.
The Bottom-Line for Now:
Sadly, this script is still visible and in wide use. I’m watching the movie from one degree of separation at an organization right now. There’s no sign of real leadership and all signs indicate the script will play out as anticipated.
It’s time to burn this script and start over.
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Art,
I agree with a lot of what you say, but there are times an individual turns a company around. For a different perspective, check out George Cloutier. (http://www.turnaroundace.com/)
Green and Gold forever,
Andy
Andy, first let’s deal with the Packers. Yeah!!!!!!! I’m still on a sports high on this one. Now for the post. Very simply, IMO, there’s a right way and a wrong way to go about leading a turnaround. My post takes a shot at what I believe is the wrong way. I do look forward to checking out George’s content. Thanks for the lead. Best, -Art
Yeah, new executives always try to build their own team by replacing employees with people they have worked with. However, what they ignore is that they are working within a different environment and old tricks do not necessarily fit.
Xuan, thank you for reading and commenting. How true! -Art
Rings true of politics or new administrations as well. When was the last time we had an actual vision from the top that has been shared by the populace AND the elected officials?
@Andy & @Art,
I actually took issue with a post of George Cloutier once back in the past. Generally the idea that Art’s ideas above won’t work comes from people who haven’t tried them. It’s too easy to use position as an excuse to be a jerk. I haven’t read everything Mr. Cloutier has written, nor do I plan to. But I have worked for a number of people who do that “benevolent tyrant” routine that simply uses people up.
People don’t want to fail. They don’t want their business to fail. But they stop caring when the business doesn’t care about them either. Balance is the word.
Thanks for the great post Art!
Mike, thanks for the comment and the memory jog. If I recall, Mr. Cloutier was the subject of a post/article that generated a fair amount of controversy. Have to revisit it to remember why he “inspired” people to outrage. Great guidance for us all in your words, Mike! Thanks for helping burn this old script with your great work at Lead Change! -Art
[…] This post was mentioned on Twitter by Bret L Simmons, Debra Bachar. Debra Bachar said: RT @drbret: It’s Time to Burn the Old Script Used by New CEOs http://bit.ly/g6fN09 via @artpetty […]
@Mike and Art,
George Cloutier is not someone who sets out to be popular and in his writings he takes practical though not politically correct ideas to an extreme in order to make his point.
He writes from the business owners perspective about small to small-medium sized busines (say <100M revenues). Businesses that are small enough that there is one owner who owns it for profit driven purposes. It is important to note that his concern is not public or large businesses that often have societal responsibilities which also have to be taken into consideration. His focus is businesses that have to provide their owners with profits, otherwise the businesses will be sold or closed.
With this as a starting point, a business has to generate enough free cash flow to make it worth the business owners while to continue owning the business. So the first 15% of revenues better go into the owners pocket or else he's likely to decide that the business isn't worth it. If the owner sells or closes the business, there's a very good chance your job is gone. That is the stark reality Cloutier writes about.
So after the owner has extracted his pound of flesh, the other 85% of revenues better cover the cost of running the business, pay the people who are critical to the business' success enough so that they don't leave and make investments to insure that the business continues to be successful in the future.
Operating based on metrics first and feelings second, he presents a framework for turning around a business that is in trouble or evaluating businesses where the business owner doesn't believe enough revenue is going into his pocket.
I like his perspective, because as someone who works for a business owner, it's helpful to see things more starkly presented than an owner would ever phrase it. If you're prepared for a harsher discussion than the owner intends to have, your discussions will tend to be pleasant. It lets the owner be reasonable and move you to a more moderate stance. Too frequently managers and executives side too much with the business and force the owner to have to make harsher demands to get what they want.
For business of the type George Cloutier works with, his perspective is insightful, but it is not politically correct.
Of much greater importance, YEAAAAAAAAAAAAAAAAAAA PACK!
Thanks for posting! I hear you..I think most of us have seen this happen at some point in our careers. It seems more important than ever in this economy to use the trust of your employees to rebuild. You must take the time to learn about the company and the people who work there. Then you can earn their trust. And with their trust and what you have learned, you change things in a healthy way…for both the company and the people who work there.
Dana, love your use of the “T” word! The approach I described in the post is a trust killer…the exact opposite of what is truly needed for all parties. -Art
Art,
As I read down your listing of features, I couldn’t help be a bit embarrassed for the company which I work. Each one sits true and sadly, I’m nowhere near a position to make any large scale changes to address these types of issues. All too often, new officers come in like a knight in shining armor, only to change very little and likely not the right things to push for a better and more aligned future.
Thank you!
Christian
Christian, my post was in large part born out of having similar experiences. The good news is you are better prepared to get this right when it’s your turn. File it in the “I won’t make these mistakes,” folder in your mind. -Art
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