How an Interim CEO Saves a Company in 9 Steps

Save A Company
This is a guest post by Richard Lindenmuth. Richard has been an Interim CEO in a number of industries. He has over 30 years general management experience in operations and is noted for his comprehensive execution skills. Lindenmuth is Chairman of the Association of Interim Executives. He is the author of The Outside the Box Executive.

I’ve led major corporate transformations and turnarounds for decades — taking ITT and 12,000 employees through deregulation into record profits; overhauling Styrotek, a California agricultural packaging company, in 3 months during a drought. That’s the job of an Interim CEO: to parachute in, rebuild a jumpy staff’s trust and engagement, and manage profound change. It takes a unique skill set, but as I wrote in my new book, The Outside the Box Executive, extreme leadership is really leadership, just the condensed version: there are lessons for everyone.

 

“Leading by proxy is not leading.” Richard Lindenmuth

 

Here are my 9 steps for saving a struggling company:

 

9 Steps for Saving a Struggling Company

 

1. Hit the ground leading.

Don’t ask permission to start making decisions and forming strategies: do it. The Board brought you in to do a job. And don’t dispatch a group of VPs to speak for you. Leading by proxy is not leading, particularly in today’s business culture, where transparency matters (for good reason).

2. Get out of your office.

To learn about a company’s daily operations, its staff (good and bad), and its problems and challenges, you have to get out there. Don’t hide behind your desk. Walk the halls and let everyone see you.

3. Talk less, listen more.

I recommend active listening, in which you repeat back what someone tells you, and continue that cycle until you reach common ground. It forges mutual respect, paving the way for the honest opinions and information you need for your own due diligence. While an Interim CEO draws from outside experience to set direction and strategy, listening creates the necessary knowledge base.

4. Do your own homework.

No CEO is an island.You’ll need a team of the best and brightest to rely on, but forge your own impressions and make your own judgment calls. That way, when someone’s not being entirely above board, you know it. That’s how I stopped a damaging game of politics at one firm: I knew the difference between reality and rumor.

 

“A floundering company is a dangerous behemoth.” Richard Lindenmuth

 

Close the 3 Life Gaps Causing Stress and Dissatisfaction

Close the gaps

3 Life Gaps

 

Hyrum W. Smith is the co-founder and former CEO of Franklin Covey. His latest book The 3 Gaps: Are You Making a Difference?, shows how to lead a fulfilling life by closing these gaps. The book is filled with stories of people who overcome challenges to live a life of purpose.

 

“Governing values are simply a description of one’s highest priorities.” -Hyrum Smith

 

I recently asked him about his latest work on achieving a meaningful and impactful life, a life in balance.

 

3 Life Gaps

The Beliefs Gap. The gap between the behaviors that meet our needs and those that do not.

The Values Gap. The gap between what we value and where we actually spend our time.

The Time Gap. The gap between what we plan to do and what we actually do.

 

You share four steps for monitoring and changing your beliefs. Is there one that most people struggle with?

Typically, the hardest thing for any of us to do is to admit that “the only problem in my life is me.” This is why the very first step is to admit that the problem lies with us. It is perhaps a sign of our times that we tend to externalize more today than ever before. We don’t look first to ourselves but tend to blame circumstances or the actions of others for our challenges. Getting past that first hurdle is the key to closing this gap.

 

“Any belief that drives behavior that does not meet your basic needs over time is an incorrect belief.” -Hyrum Smith

 

How and why do people often get off track with their stated values? 

One of the ways we miss the mark is by failing to realize the importance of identifying our key values. Life is filled with “have to do” events and “someone expects me to do” events and “once in a while I’d like to do something for myself” events. It takes a concerted effort to identify the values that should be our highest priorities and then to compare our activities to those values. We get off track because we don’t focus on these values. We assume that they will take care of themselves. They usually don’t.

 

“The only thing you have 100% control over is you.” -Hyrum Smith

 

Make the Magic 15 Minutes Work for You

The 4 Players in the Game of Employee Engagement

Employee Engagement
This is a guest post by Paul Keijzer, CEO and Managing Partner of Engage Consulting. His focus is on transforming top teams across Asia’s emerging markets. Paul provides an excellent summary of the roles of the critical players to create effective employee engagement.

 

Employee Engagement is Not Just for HR

There’s no questioning the fact that everyone’s involvement is crucial for employee engagement to be successful. Much of the past has been targeted at getting the HR department to successfully drive employee engagement and the subsequent results to the company’s bottom line. Now that the business world has more or less agreed that employee engagement across all levels triggers the greatest business results, let’s take a look at the roles that everyone has to play to make employee engagement a success – and I guarantee you, it’s not just the HR department.

 

1. The Employee

No matter where you work, the fact is that unless you, as an employee, want to be engaged, no amount of engagement programs and tools are going to increase your engagement levels. Employee engagement is a two-way street and employees must play their part. The key responsibilities of any employee for employee engagement are:

Make Yourself “Engageable”

Being engageable is a mindset which involves positivity, a can do attitude, avoiding office politics and a few more key characteristics. Put yourself in this mindset to get you the opportunities you want.

Understand What Drives and Frustrates You

If you know what drives and frustrates you, the company will be able to help engage you – provided that you share this information.

Pro-Actively Resolve Issues

Nobody is perfect and neither is any organization. If and when your boss makes a mistake regarding your engagement, inform them quickly and provide a solution.

“Unless you want to be engaged, no programs and tools will work.” -@Paul_Keijzer

 

2. The Line Manager

People don’t leave companies, they leave managers. Take it one step further and it becomes, “People aren’t engaged by companies, it’s their line managers who do the engaging.” Some steps that line managers can take are:

Removing Barriers

Managers must remove barriers which can stop an employee from reaching their desired goal. Meeting weekly to discuss hurdles and accomplishments is a great way to do this.

Encourage Efforts and Reward Results

Rewards set standards for colleagues and promote healthy competition. Of course, every effort and result shouldn’t be rewarded equally; that would defy the purpose.

Identify What Drives Your Team

If employees are expected to share their drives and frustrations, line managers better be providing a listening channel.

“Companies do not engage people, line managers do.” -@Paul_Keijzer

3. The CEO

You may wonder how someone who’s supposed to be looking at the overall success of the organization can affect how people work on a daily basis. This is how any CEO can positively impact employee engagement:

Leadership Lessons From the Unusual Story of Market Basket

We Are Market Basket

An Uplifting Corporate Story

We often read stories about corporate greed, about slimy executives, about profits at the expense of people. These stories grab headlines because they hit a nerve and fuel anger. I have never read a story quite like We Are Market Basket: The Story of the Unlikely Grassroots Movement That Saved a Beloved Business where employees and customers joined together to demand the return of a fired CEO.

The story may be unique, but it offers powerful lessons and insight into the changing nature of how we view corporations and what we expect as employees.

I recently spoke with the authors, Daniel Korschun and Grant Welker, about this story.

 

Loyalty is Demonstrated Every Day

This story has so many powerful lessons. One of those is about loyalty. What does the We Are Market Basket teach us about loyalty?

Arthur T. and much of the senior management team have been extraordinarily successful at engendering loyalty. But loyalty at this company tends to be viewed as a two-way street. Employees – they call themselves associates – we speak with tell us that they feel loyal to the company and top management because they feel a loyalty to them from that top management. So what we see at Market Basket is people who are reaffirming their commitment to each other over time. The result is these very strong bonds we see. The lesson for managers is that you can’t expect loyalty without making a sacrifice yourself. You’re not going to gain loyalty just by changing the pay or the job responsibilities; it’s something that has to be demonstrated every day.

 

“You can’t expect loyalty without making a sacrifice yourself.”

 

A Respect for Others

Why did Arthur T. inspire such passion and loyalty?

Arthur T. is beloved as the CEO largely because he gives all associates, customers, and vendors respect. He says explicitly that no one person is special at the company, and from what we’ve seen he walks the walk.

But it’s also important to point out his place in the protest. Bringing back Arthur T. was the central demand of protesters, but in our view, they were fighting to save the company’s culture. Reinstating Arthur T. became the critical step in making sure that this New England institution continued to serve those who have known it for years, and sometimes for generations.

Market Basket 

A Lesson for Boards and Corporate Leaders

What does the Market Basket experience teach boards of directors?

Most business schools today teach that the fiduciary responsibility of directors is to look after the interests of shareholders. However, this idea is simply not supported by the corporate code in Massachusetts and many other states. The code states explicitly that the board is to be a steward of the corporation, which includes customers, employees, shareholders, and others. We need to hold our boards to this higher standard.

Leadership lesson: A corporation’s duties extend beyond shareholders to the broader community.

 

A Commitment to the Community

7 Steps to Improve Your Character Habit

build habits reminder - self-development concept - handwriting o

Not too long ago, I had the opportunity to talk with Fred Kiel, the author of Return on Character: The Real Reasons Leaders and Their Companies Win.  His extensive research provides data that proves that character matters.  That same research also indicated that much of the character habits of the world’s best, virtuous leaders are formed in childhood.  Fred offers seven steps to improve your character habits.

Improving Character

It absolutely is possible to improve Return on Character (“ROC”) and raise your character reputation scores.  Your character habits are just that – habits.  And as such, they can be changed.  We all have some personal experience in changing our habits.  Sometimes it’s quite difficult, but it can be done.

We’ve isolated seven steps that work to improve your character habits:

1. Pop the Bubble

The first step you need to take to strengthen your character habits is to get real!  We all live in our own “bubble” – our version of ourselves.  Unfortunately, our view of ourselves is often wrong – we tend to believe our own press.  Everyone rates themselves as having a strong character – we see ourselves as principled people.

“Real knowledge is to know the extent of one’s ignorance.” -Confucius

 

2. Conduct a Cost-Benefit Analysis

Be brutally honest with yourself.  You have acquired your character habits because at some point in your life, they were very beneficial. But in all likelihood, some of the habits learned long ago are now more costly than beneficial.


“Being entirely honest with oneself is a good exercise.” –Sigmund Freud

 

3. Find the Fuel

The only way you’ll go the next step in changing your character is if you believe that the cost of your current habit outweighs the benefit.  You must find the “fuel rod” that will energize you enough to acquire a new habit.

“What keeps me going is goals.” -Muhammad Ali

 

4. Now, Write it Down

The important thing now is to write down what you’ve decided from your cost-benefit analysis.  If you can’t write it down and provide a convincing argument about why you should change, you’re just living in la-la land.  You won’t change anything about your character habits.

“If you do not write it down, you have a wish, not a goal.” -Steve Maraboli

 

5. Focus Your Attention