I got reminded this week of a Presentation I made a few years back about to 'How to Fix Broken'. This was in the context of Finance Shared Service Centres or Transformation Programs I had turned around. Unfortunately many people only turn to an experienced Interim when the situation has reached breaking point and resolute action is required to affect a Turnaround.
These days the term 'Turnaround' is used most frequently in the context of a Business rescue, can we have an Interim CFO to parachute in, hit the ground running and save the day.
In my entire experience with large scale Finance functions anywhere from 50 to 1,000 staff globally, the solution is actually at a level just below the CFO if you actually want results.
For those of you who are Business Leaders but not Accountants, this is how it works. From a Finance perspective a Business will buy something, make something and sell something. With slight variations and 'local' flavour that in a nutshell is what any Business does.
These are the 3 main flows you need to account for successfully and ideally you need to 'appreciate' operationally how the Business accomplishes that in order to account for it most effectively.
Where the problem occurs is when one or more of those 3 main flows get interrupted, disconnected or broken and the blame game always begins. At that point its a downward spiral and only outside intervention can help you. This inevitably happens caused by one or more of three things going 'awry'.
Firstly, you change system. Secondly, you changed system and operating model (SSC, Captive, BPO, etc) or thirdly you affected a major Organisational change in the front office and the back office impact got forgotten about.
What got you in a mess won't get you out of it. If you think you can fix it yourself with the resources that caused it, you are making mistake Number 1. The 3 Flows are the key and Business size measured in Turnover, Geographies, Headcount, Divisions, etc are relevant but understanding how those Flows convert via your systems to end up on your Ledgers is key.
No CFO is employed to do that, ever.
When I keyed in this Article Headline it came back and said 'How to Fix Broken with Ease'. I had a little chuckle and updated it. Anyone who thinks you fix broken with ease is inexperienced, you fix it with Leadership affected at the most appropriate level to pull the right levers to deliver success.
When I wrote this actually 6 years ago it had just been freshly and successfully deployed but it could have applied to my days at Argos, Deloitte or in 12 years as an Interim at any stage. The only thing broken at Whitbread was the systems and with such great people that never became a problem that ever required a Turnaround.
9 Steps easy to follow and best implemented by an experienced Interim.
The Exam Question: The number one priority is the why, What problem are we actually aiming to solve when all the noise and anecdotal evidence is stripped away
Set the Vision: You want to turnaround a Team of any size you need to define what the future looks like, in simple terms, easy to follow, easy to understand and motivational to deliver. Lead them on a Mission
Communicate: Tell them clearly, tell them often, tell them again, Repeat! If you can't Communicate well because its not your forte, plug that gap with someone who can. The message and the messenger are critical
Review the Team: Organise it, free talent, empower it, challenge it, support it and above all else surprise it. Have them wanting to go to work in eager anticipation of the next challenge. Get inside their heads, outside of the box and bring the team with you
Dashboard Management: KPI's, Plan on a Page, call it what you like, but as Leader if you don't have the key measures of success on one page engrained in the front of your mind, driving your every action, then you are just a cheerleader and failure awaits. Measure to manage, I believe in this so much its currently Step 1 of my new Training Program. I am consistent in how I deliver because its proven to work
Probe all along the Line: You are in a Turnaround situation, the team, process and business are on life support. Check everything, test everything, go hunting for weaknesses and opportunities all at once. Then when you find the right 'lever' focus all your attention and resources on it until it breaks
Focus in Waves: Teams and individuals can't focus relentlessly. When you have identified your primary targets, focus on them for a concentrated period of time, celebrate the success or learn the lessons, but move on after to a period of rest and recuperation. No team, high performance or otherwise can perform on a never ending treadmill
Lead the People: By example, set the standard, drive performance, teach, impart your knowledge and experience. Celebrate success and have fun. Read my How to Win Hearts & Minds CPD White Paper to see how to really do this effectively with ADVICE cubed
Deliver: You are not here to mark time. There is a critical lever of success you need to identify, pull and repeat until the Business or Team is safe.
Nice to see something standing the test of time since it was written and can pretty much sum up how I have turned around anything that needed to be fixed.
If you are in that situation as we head into a Bank Holiday weekend where your Business, GBS or SSC is on the brink and you can't sleep with the pressure then get in touch by DM and lets talk. If you know of anyone who needs that level of help my Referral Scheme still applies.
Best Regards,
