Published January 2004

Tips on going from survival to achievement mode

Q. After “holding our own” and “staying the course” over the last few years in, at best, a stagnant economy, the management team of our small manufacturing and supply company wants to “break out” to new levels of growth and market-share acquisition. We’re concerned that such aggressive moves may be shocking and counterproductive to the entire organization. What steps can we take to avoid “burning out” our employees before we reach our objectives?

A. Taking the time to collect your thoughts before proceeding on such an ambitious endeavor is an important first step toward eventual success. If the company largely has been in a survival mentality the last few years, it may need a cultural rebirth before setting off on a rapid growth spurt.

First, take the cultural temperature of the company. Despite relatively languid growth the last few years, is it a stimulating, invigorating, challenging and fulfilling place to work? Or, is it gray as a winter morning with employees spending time on mostly useless reports, attending unproductive meetings and completing “make do” assignments?

Though most likely somewhere in between, any ambitious direction change will require commitment of the entire work force to both goals and process. Castas Markides, professor of strategic management at the London Business School, says companies that achieve continually “break the rules.”

This means they use “repackaged common sense” rather than relying on entrenched bureaucracies, ego-driven management and adherence to outdated values. He recommends five ways such progressive companies achieve turnaround success:

• They challenge “sacred cows.” A company where you consistently hear “that’s the way we’ve always done business” or “it’s company policy” is protecting sacred cows. Progressive companies research different options, and when comfortable with their potential, say, “Let’s try this approach.”
• They create a sense of (positive) urgency. The entire organization must be committed to challenging but reachable goals that connect with human emotions. Whether it’s doubling sales, tripling production or opening 100 new locations, the goals must be uniformly “bought into” throughout. Incremental victories on the way to reaching a goal must be genuinely celebrated.
• Creativity becomes part of the organization’s aura. “When you go into the place, you are struck by its ‘smell,’” Markides said. Is it as dank as a summer afternoon in New Orleans or as fresh as cherry blossom time in D.C.?
• They make strategic innovation a democratic process. Lan & Spar Bank emerged from bankruptcy to become Denmark’s largest only after dividing its employees into 10-person “idea” teams. The thousands of suggestions leading from their discussions fueled the company’s resurgence.
• Create autonomy. Find ways to isolate key employees with customers or suppliers and tie compensation to demonstrated improvements in the business relationship. Edward Jones is fast becoming among the nation’s largest financial investment houses by having over 6,000 individual neighborhood offices, most staffed by a lone broker who owns the business. The broker becomes an entrepreneur who stays close to her customers.

Eric Zoeckler operates The Scribe, a business writing service with many Snohomish County-based clients. He also writes a column on workplace issues that appears in The Herald on Mondays. He can be reached at 206-284-9566 or by e-mail to mrscribe@aol.com.

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