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TECHNIQUES TO RAPIDLY TURN AROUND POOR PERFORMING

ORGANISATIONS OR DIVISIONS

Bill Winter – wwwsymphony3.com Mindshop Conference 22 May 2010

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Bill Winter

• Specialist in mentoring and advising owners and directors of private companies

• Member of the AICD panel of recommended mentors

• Turnaround specialist of underperforming companies

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It’s Not Rocket Science

• This session will highlight you must have a vision, a strategy, a plan and measure the results

• That you can use the tools to sort through the issues

• That there needs to be a sense of urgency combined with a methodology

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Two Case StudiesCompany A• Private Company• Sole Owner Director• Key customer is in auto industry• Turnover down from $12 million to

$8.5 million in four years• Owner lost interest in day to day mgt• Owner wants to travel and work two

days at most• No family successor in place• No Vision , no mission, low morale • No budgets , no KPIs • No mgt reviews• Key managers lack business skills • Meetings ineffective

Company B• Subsidiary National Company• 131 staff , turnover $16 million• Four years of losses• Employee engagement at 28%• Low morale . Union issues• Lost child of large corporate• Everyone in Senior mgt has an opinion• Success depends on volume• Business caught in interstate rivalry

between State ops and HO• COO and Finance manager sacked• CEO wants a solution for longer term

strategy• Lack of compliance and risk mgt

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Situation

Company A Company B

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Begin With the End in Mind

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30 Days Company A• Identify and mind map

the issues• Personality profiling for

key staff• One on one with staff• Group workshops• Identify the No Nos• Covert issues to

balanced Score card OPP

Company B• Identify and mindmap the

issues• Workshop issues with

employees. Identify who is on the Bus

• Establish own one page plans for KPIs

• Workshop a vision for the future

• Implement one page plans for key staff

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HR

Leases

Workshopemployees

IT Systems

Risk mgt

Operations

XXX Issues 1st 30days @ Sept 2006

Suppliers

Equipment

Payroll

PSR

Customer Service

OHS

Mgt Staff

Financial

Marketing

Vermont Site

layout

State govt

APRA

Hardware

External review

Quote Plus

IT Support

Near miss

Training

Manual update

External review

AMWU

Vic regs

Paint rooms

Multi Skilling

Skill shortage

Future vision

FIFO

Apprenticeships

Absenteeism

Motivation

Communication

EBA Unions

SCC

Meetings

newsletter

Local schools

Apprentice master

Recruitment

TAFE

Overseas

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BW

IDENTIFYING ISSUES & OPPORTUNITIES

CHECK LIST! Name …………………………… Group ……..

Rate the Effectiveness of the Following Aspects then focus on those with the lowest rating: Rating: 1 – Unsatisfactory, 2 – Average, 3 – Good, 4 – Very Good, 5 - Outstanding Financial 1. Accounting System (overall) 1 2 3 4 5 N/A 2. Cash Management (overall) 1 2 3 4 5 N/A 3. Invoicing, Credits, Collections 1 2 3 4 5 N/A 4. Purchasing, including F/X 1 2 3 4 5 N/A 5. Payables 1 2 3 4 5 N/A 6. Inventory Control 1 2 3 4 5 N/A

Planning & Reporting 7. Financial Forecasting & Budgeting 1 2 3 4 5 N/A 8. Financial Reporting and Analysis 1 2 3 4 5 N/A 9. Business Planning and Goal Setting 1 2 3 4 5 N/A

Sales & Marketing 10. Management 1 2 3 4 5 N/A 11. Advertising, Marketing, Promotion, Other 1 2 3 4 5 N/A 12. Research - product / developmental 1 2 3 4 5 N/A 13. Engineering & Design 1 2 3 4 5 N/A 14. Customer Service, Feedback, Complaints, etc 1 2 3 4 5 N/A

Operations 15. Manufacturing / Production 1 2 3 4 5 N/A 16. Shipping / Delivery / Warehousing 1 2 3 4 5 N/A 17. Quality & Quality Control 1 2 3 4 5 N/A 18. Physical Facilities & Equipment 1 2 3 4 5

N/A

Team Relationship 19. Personnel Management (overall) 1 2 3 4 5 N/A 20. Performance Review 1 2 3 4 5 N/A 21. Recruitment / Hiring 1 2 3 4 5 N/A 22. Training: Technical, Sales, Management 1 2 3 4 5 N/A 23. Executive Team Quality & Effectiveness 1 2 3 4 5 N/A 24. Internal Communications & Teamwork 1 2 3 4 5

N/A 25. Senior Management Succession Capabilities 1 2 3 4 5 N/A 26. Benefits & Benefits Management 1 2 3 4 5 N/A 27. Compensation & Incentives 1 2 3 4 5 N/A 28. Policies - OH &S, Discrimination, Harassment 1 2 3 4 5 N/A 29. Labour & Union Relations 1 2 3 4 5 N/A 30. Facilities & Equipment 1 2 3 4 5 N/A

31. Other - Insurance, Workcover Cost, Bank Relationships, Shareholder Dispute ..................................................................................................

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xxxxxxxBill Winter Plan - 12 month / 2010

xxxxxx has survived a difficult year and suffered a drop in sales revenue in the first half that resulted in making cut backs in employee levels and hour worked. Since October 2009 the revenue has moved back to matching 2008 levels. The immediate sales volume is acceptable with some uncertainty on forward orders from March 2010. Quality issues and staff skills and succession gaps are causing difficulties in meeting delivery dates. New opportunities are being sought through XXXXX program.

OBJECTIVE To have successfully implemented a staff development program that covers succession, leadership skill development, and increase overall employee engagement . Have implemented a new leadership team format and regular performance reviews for all leaders and managers and supervisors.

PRIMARY OBJECTIVES 2010 2011

Sales revenue $xxm Compliance & Risk Mgt No Red Flags One page plans Done Vision / internal culture Agreed On going Job descriptions Complete Complete Monthly business review meeting

In place In place

Budget 2010 /2011 Complete Complete IT Systems Fully Utilised Employee engagement 70% 80% EBIT 8-9% 10%

What Who When Leadership Team

GB /BW

Jan 18

Skills Development

All

Feb 1

Monthly Performance business review

GB/ LG

Monthly

Quarterly individual performance reviews

GB / BW / All

4 X yearly

Mindshop group

10 x staff BW

Ongoing 8 week cycle

Monday Mgt meetings

Key staff

Weekly

Sales reports/ updates

PM / BW

Weekly

People 1.Job descriptions 2. Personal employee development 3.Succession 4. Communicate 5. Mgt meetings 6. OP Plans 7. Skills gap 8. Training options 9. Leaders workshop 10. FTE budgets 11. Multi skill

Sales Development 1. Identify future volume targets 2. Develop & implement Mkt strategy 3. Quotations 4. Re visit key players A B C 5. Confirm Long term capabilities 6. Measure 7. Web site

Internal Processes 1. KPI Reporting 2. Data integrity 3. Review IT systems 4. Factory processes 5. Costs and savings. wastage 6 Risk mgt. 7. OH&S 8. Cap Ex 9. Compliance 10. Documentation 11. Audits

Financial Strategy 1.Inventory 2. WIP 3. Formal budgets 4. PIP budget 5. IT systems 6. Score Card 7. Review costings 8. Purchasing 9. Benchmarking 10. $$Break even 11. Waste control 12. Waste costs

NOW ANALYSIS WHERE ANALYSIS

ACTION PLAN

HOW - STRATEGIES

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XYZ

PeopleLearning

and growth

Internal processes

Financial startegy

Clients , sales

Balanced Score Card Priorities

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THE CULTURE

LESSONS FROM GOOD TO GREAT

Problems and Challenges

People Focused

Task FocusedR

ese

rved (

Ask

) Ou

tgoin

g (Te

ll)

ResultsAnger

Being Taken Advantage OfDemanding

Ambitious

Aggressive

Strong-Willed

Decisive

Driving

Pioneering

Forceful

Competitive

Venturesome

People and ContactsRecognition

OptimismSocial Rejection or RidiculeInspiring

Enthusiastic

Persuasive

Convincing

Trusting

Magnetic

Demonstrative

Warm

Optimistic

Sociable

Pace and ConsistencyRelationship

Non-EmotionLoss of StabilityRelaxed

Passive

Patient

Consistent

Steady

Resistant to Change

Non-demonstrative

Predictable

Deliberate

Stable

Procedures and ConstraintsRight

FearCriticism Of Their WorkCareful

Conventional

Neat

Diplomatic

Tactful

Cautious

Exacting

Systematic

Accurate

Balanced Judgment

DISC behavioural profile for all staff is critical for communication

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Rising Stars Program

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Angels Program

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LEADING CHANGE ( John Kotter )

• Establish a sense of urgency

• Form a guiding coalition• Create a vision• Communicate the vision• Empower others to act

the vision. ( Beware the dream stealers )

• Encourage risk taking and non traditional ideas and actions

• Plan for short term wins• Consolidate

improvements and encourage more change

Hey ! They have a brain

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Leadership ( Kouzes and Posner, The leadership Challenge )

• Challenge the process• Inspire a shared vision• Enable people to act• Model the way• Encourage the heart

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