Pre-Planning Alignment: The Right Way to Start a New Job


Last month John called on our group to help him kick off the annual department planning and budgeting process.  John is an Executive well-known to me and my colleagues.  I placed him in a C-level position about 10 years ago, and my colleagues have worked with him since.   He recently landed an important job with a well-established brand, which represents an excellent career opportunity.  Achieving success will be a difficult slough, however.  The Brand has suffered from a succession of owners, leaders, and strategies.   Now under new direction, John and his team are responsible for critical strategies to rebuild the brand.  My colleague Stan got the lead on the project with me in support. 
John envisioned a full department off-site meeting, so Stan built the appropriate agenda.   Stan’s goal was to help John build alignment and ownership around the department’s four key objectives.  The agenda included a heavy dose of fun to encourage participation and creativity by the attendees.  By the end of the off-site John wanted to ensure that there was enthusiasm for the plan; that the team took ownership; and that the stage was set for an effective change-management effort.
The first exercise Stan facilitated, after the appropriate set-up, was what he calls “deep dive introductions”.  It was an ice-breaker, ‘getting to know you’ exercise.  Everyone had the opportunity to introduce themselves, speak to their job function, indicate their expectations from the meeting, and to tell something personal the group may not have known.   This included John, Stan, and me.  They also provided their tenure with the company and within the industry segment.  The whole point of the exercise was to begin building trust in a non-threatening environment.  John and Stan distributed prizes for the best idea, the most interesting disclosure, and the lamest personal disclosure.  This was a great way to begin the meeting.
It was interesting to learn that the average tenure with the company was 6.5 years, with 15 years in the segment.  15 people had less than one year tenure with the company.  On balance, the average team member had not seen a stable, consistent direction from this employer.  Clearly, the culture had been battered.
The next exercise was a mini-assimilation.  Whereas the first exercise as entirely personal, this was a group exercise.  Each group was defined by table, six team members per table.  The exercise included some administrative functions like appointing a scribe and a spokesman.  Their  task was to determine 1) what they wanted to know about John, and 2) what they wanted John to know about their team.  After that task, John told his team what he thought they should know about him.  It was another good exchange that reinforced the team’s desire for leadership and direction.  They told John that they were ready and eager to execute but craved a champion to lead them.  
After lunch, the final exercise of the day, another small group task, was to begin the process of establishing an identity for the Department.  The goal was to establish a name, a tag-line, and a logo for John’s team.  The small groups put a lot of energy into this activity, developing some very creative ideas.  It was a good start, but more work was required.  The evening was a planned event for the team which Stan and I respectfully declined to attend.
The first day was a big success.  The Department took a measure of John’s commitment to them and their needs.  John began to identify his leaders and problem children.  Stan and I found some points where John needed some coaching.  We were very optimistic about the prospects for the next day.   To be continued…

Thank you for visiting my blog.
Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so please leave a comment.

Jim Weber, President
New Century Dynamics Executive Search
www.newcenturydynamics.com

LEADING YOUR NONPROFIT – almost – LIKE A BUSINESS:



 By David Shavzin

Bringing in some of these “business” concepts and experiences, married to a mission, can be extremely powerful. When I discuss working on growth with a nonprofit organization, I inevitably get a response something like this: “It sounds good but that only works in a business. “We are a charity/agency/government department/professional association and we are not like a business.” ReadMore…

WORKING FOR PRIVATE EQUITY GROUPS: WHAT YOU SHOULD KNOW


As I have written so much about my work with Private Equity Groups (PEGs) and their portfolio companies it makes sense to explain what they do and how they operate.  PEGs are reshaping American Industry across all segments.  They are significant to the job market.   It is important to understand how they manage their selection process and what they look for in new hires.  If you are not currently working in a PEG Portfolio Company, you likely will before your career comes to a close.
So, what is a Private Equity Group?  A PEG secures its funding from high net-worth Individuals to make investments in undervalued small to mid-cap companies.  They will generally take a controlling position in the target company up to 100% ownership.  Their goal is to improve results in a three to five year period allowing them to sell at double their investment, more or less.   They may also invest in companies with significant growth potential but having difficulty raising capital.   PEGs have been known to invest in companies whose owner wants to cash out, or to buy out other investors.   Their fundamental investment goal is to find companies that can benefit from their expertise and generate a significant capital gain after a defined holding period.   They are looking to grow revenues, improve productivity (read systems and processes) and to eliminate waste.
Types of PEG Transactions
·        Turnarounds
·        Public to Private
·        Divestitures (Carve-Outs)
·        Family Business Exit Strategy
·        Funding emerging brands needing capital
If the target company wasn’t a fast-paced, high-energy environment prior to the PEG involvement, it most certainly will be after.  This is true especially early on as the two groups learn to work together.   The level of communication and thirst for data by the PEG is intense.   Redundant, unnecessary, or functions better handled by a third party are eliminated resulting in a more stream-lined organization.  The remaining team members are expected to pick up the slack.   Accountability is expected.  If the CEO cannot meet his objectives he will be replaced.  So, when looking for people to hire a premium is placed on people who are self-sufficient, self-reliant, and can tolerate the stress of a high-intensity organization.   Is this really that much different from most major brands?
The PEGs I have worked with are directly involved in hiring the CEO as one would expect, as well as the CFO.  Depending on the nature of the transaction, the CEO may or may not stay on after the investment however, the CFO is usually replaced.   This is not uncommon for most acquisitions as the new owner wants “their people” in key positions.   The first task for the new CFO is usually to get control of cash flow and to install a KPI Dashboard.  Other hires are the responsibility of the Executive Team with the customary curtesy interviews by the PEG Executive responsible for oversight of the company. 
Considering the selection process for PEG Portfolio Company job openings, experience is the key.  They do not have time or interest in on-the-job –training.  They are looking for people who have solid educational credentials, whose careers have been launched working for established and respected brands.  Industry segment experience is the base-line.   If the job is in a small to mid-cap brand then experience in a small to mid-cap company is required.   There is a preference for people whose career is still ascending.  Sure, there may be a preference for someone who is on the younger side and still hungry, however, experience and success trumps age.   A number of short tenured situations are a big red flag.  As with any hiring authority there may be certain quirks to their ideal selection process.  One client I worked with disqualified people who had stepped out of the corporate world to try their hand in an entrepreneurial venture,   whereas other clients valued that kind of experience.   So, in most ways, a PEG’s selection process is not very different from any other well-managed company, except for the specific experience they may require.

Important Notice: 

I just landed a Search Contract to find a Sr. Director IT for a restaurant company based in the Ohio Valley Region. The position reports to the CFO with base salary to $160K. If you know anyone who might be interested in this opportunity, please send them my way.   JimWeber@NewCenturyDynamics.com
Thank you for visiting my blog.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so please leave a comment.

Jim Weber, President
New Century Dynamics Executive Search
www.newcenturydynamics.com

Beg For Customer Complaints

– Grow Your Business – Maximize Value for Exit Planning

by David Shavzin

It’s More Than a Three-Question Survey!

• You want to grow your business!
• You want your business to run more efficiently!
• You want new customers!
• You want to keep all of your current customers!

What if there was one way to do all four things?

You spend so much time looking for new customers – advertising, marketing, selling, networking… But what about a focus on keeping your current customers? Are you too focused on new customers walking in the front door, while current customers are walking out the back door?   Read more…