Presentation on theme: "Www.argumenten.be. Doelstellingen Argumenten een gepassioneerde spreker met een boeiend onderwerp het podium geven aangename, interactieve, maar tevens."— Presentation transcript:
Doelstellingen Argumenten een gepassioneerde spreker met een boeiend onderwerp het podium geven aangename, interactieve, maar tevens besloten meetings organiseren topmanagers een levendig en leerrijk debat laten voeren en dit in alle discretie www.argumenten.be
Initiatiefnemers PKF België: bedrijfsrevisoren, accountants, belastingsconsulenten en management consultants Capitalis Belgium, Managing Partner in Life & Business : Expertise in Personal Financial Planning en onafhankelijk advies in Employee Benefits MenT Group: consultants in Interim Management, Executive Recruitment, Assessment en Human Capital Audit, en detachering van technische specialisten Meer informatie over de drie bedrijven vindt u uitgebreid bij het Argumentenmapje www.argumenten.be
Gastspreker 2 mei 2005 Patrick De Groote Voormalig CEO en Gedelegeerd Bestuurder Zenitel N.V. “Top management: gevoelens en emoties bij herstruktureringen” www.argumenten.be
Praktische afspraken We beginnen met het exposé hier. Het laatste deel van de uiteenzetting is expliciet opgebouwd als interactief debat waar van u als deelnemer een actieve input wordt verwacht. 18u30 aperitief in de hall, waarna we voor het diner beneden in de zaal worden verwacht. We trachten het officiële deel stipt af te ronden om 21u30 www.argumenten.be
Introduction –Capital markets between 2000 and 2004 are characterized by uncertainty and crisis of trust due to sputtering economy and downwards spiral in certain sectors. –Ambition of CEO’s was often in unbalance with economic reality and lacked modesty. Unfulfilled expectations in shortening reporting cycles give raise to the “Battle of the Quarters” by management. –Recent international scandals around highly estimated CEO’s result broadly in questioning leadership and entrepreneurship. –Boards become nervous and tend to interfere in operational matters. Values of business and social responsibility start to embody changing contents due to mutating interests from reference shareholders. –Against this prevailing back-ground, a turn-around becomes a very complex phenomenon in a turbulent environment. –Related emotions from top managers cannot be neglected and influence decision taking.
Finding the right balance Finding the right balance Emotions Skills Methods From Management literature…..
The sound track - Bringing companies on speed: the Algerian experience (‘72-’77) -Power, steel, non-ferro -Difficult business environment in the seventies: new technologies, poor skills -Nation wide strategy - Increase output and reduce cost through performant maintenance of production equipment (’78-’96): -Involved in several hundreds of restructurings in industry, power, transportation -World-wide -Development of professional methodologies - Maintenance engineering at ABB Service Worldwide (’96-’99): -The breakthrough of Full Service -Acquisitions -Taking over maintenance departments and re-structure - The Zenitel adventure (’99-04): -The call for the impossible -External and internal turbulent and complex environment -How to get a terminal patient out of the hospital and give him a new future
Position for growth Strengthen the base –Business plan –Acquisition strategy –New organization –Focus on core-business – strategic alliances –Business processes –HRM –Communication plan –Cash position –IT and reporting –Grip on the costs Zenitel’s Change Programme 1999 - 2004 First phase 1999-2002 based on two axes: Next phase 2003-2006: profitable growth
CSS Wireless Solutions From SAIT – RadioHolland and STENTO to Zenitel – Milestones BU Mobile Radio Marine (On-board) CSS Divested SRH Marine Euro Marine Airtime Services SPACE Wireless Solutions Rhein- metall 50% Acquisitions 100%: Ramacom RNS Halberthall ATCOM Radioteknik Telpro plus INES Acquisitions 100%: Servoteknik Colsys Divest non-core: Debitel BE +NL ATS EuroMarine Servoteknik Sirius Production Others Divested
Managing crisis and change processes (1) - Why do you take that challenge ? -Not without danger -The kick ? -The call for the impossible ? -Natural unrest? - The re-structuring path – a matter of falling and getting up again and again: -Doubt -Believe in yourself -About doing the right things and the things right - The big choices: -Strategic plan -Mergers and acquisitions -Divestments -Dealing with the stock market and all shareholders -Up-dating the business plan
Managing crisis and change processes (2) - The important moments: -Watching the cash: a continuous battle -Capital increase: oxygen -About reference shareholders and listed companies -New corporate identity – new HQ - MBO - The difficult things: -Lay-offs -Setting up a new team -Internal policies – the hidden agendas -Post – M&A integration -Lay-offs of management team members -Managing all stakeholders: personnel, banks, suppliers, customers, media…. - Why and when do you stop: -Your own choice, at the right moment -The motivation curb -Invitation to new challenges
Challenges (1) - External (over the past years): -Global economy -Telecom sector -Internet bubble -Own markets under pressure -Scandals and declining trust -General entrepreneurial climate -Uncertainty: banks- investors-customers-suppliers- …. -Power of the media -Financial annalists -Stock exchange
Challenges (2) - Internal : -Nobody likes change -New organization incl. change of top mngt and board -Strategic plan and focused offering -Consequences: lay-offs, divestments, acquisitions -Focus on core-business: external partners for supporting processes with related acceptance/integration problems -Several simultaneous processes: training, motivation, communication, corporate image building, re-engineering internal processes -Figures: results and their development vs expectations -Board and its pressure -Shareholders: change from reference shareholders -And above all: the troops at home
Emotions (1) - Certainties: -Quick decision taking -Once decided: do it -Believe in the company; believe in yr team; believe in yourself -Decisions in team : weak or safe? - Have the courage to stop long lasting decision processes - Doubts: -Major choices: Am I right? (repositioning of offering - divestments – acquisitions…) -Difficult decisions are taken alone: the general on the hill -Finding the right people
Emotions (2) - Emotional moments: -Lay-off of people, especially of management team members -Cutting deep, but how deep? Afraid of loosing capacities? -The battle against continued stress: unexpected events and poor understanding -Keep the pace at the home-front -Lonely at the top -Process of falling and getting up, again and again: never ever give up - A feeling of satisfaction: -Appreciation especially by your people -Sounding board of objective professionals -Tranquility of mind: ethics above all -The feeling of having moved forward
Emotions (3) - Destabilizing factors: -Diversity of reference shareholders interest and corporate governance -External influences become an increased bourdon -Figures: improvement process takes always too long - The islanders: incompetent people generate monopolies -Dealing with contradictory interests -Post acquisition integration: cultural shock and clash – personal policies - hidden agendas. -The pressure of the stock exchange: volatility, liquidity, price - It would be easy to hit the target every time if it would just stop moving (N. Hamson) - You need to have a “thick skin”: -Some managers go through all of them at different points in time: anger, abnormal fears, guilt, resentment, relational problems with team and private, grief, anxiety, despair, fatigue, tension, loneliness, withdrawal, worry, compulsive behavior, sometimes panic or obsessive and negative thinking, depression -The solution: - The thick skin. Don’t let doubt eat your self-confidence. - The real art is to find a rest point in the turbulence - Living in compartments -There are no miracles: good results are the consequence of gradual successes
What helps to balance the emotions Strategic plan: as a reef facing the breakers Importance of active assistance of reference shareholder Speed and accelerated transition: quickly search for stability in turbulent times Call for top people: line managers, consultants, allies.. “Educate” your consultants Make choices, take decisions and execute the plan: severity, discipline, rigorous Cost awareness management: if needed, you never cut deep enough Communication: often but no overshooting, repeat messages, transparent, bad news very early, successes Work on company image Inform on regular basis suppliers and bankers Controlling internal processes. Performant reporting. Clear accountability Keep performance high - pinpoint value creating incentives No position jockeying: everyone has to merit his job Be fair for all integrating groups after M&A but no compromise management Realism in self-confidence – ban self-satisfaction Make sure your troops are with you
and 4 major sources of emotions….. Success –Is a word of yesterday (Bob Delbecque): you have to earn it every day. –Is never the result of one person, but always from a team. Failure –Is watching at each corner. –Is also never the result of one person, but always from a team. Team –A leader is as strong as his/her weakest first line report. –Thus….invest in your team. Reputation –Comes by walking and –Runs away on a horse (Peter Anthonissen).
Some statements (1) - Organisaties op scherp. Herman van den Broeck en Steven Mestdagh: -Apart of human capital, change is considered as the most important factor of success (CEO poll) -An important part of human information treatment is based on discovering related and recurrent patterns with the goal to tune our behavior -Managers feel well if they can plan, monitor, coordinate, predict and drive. Quid if something happens that doesn’t fit this picture? -Finding a state of mind between search for change and consolidation -Managers judge too often on the basis of non-related facts and not on the basis of their inter- relations – reductionism: one focuses on things, not on relations -Change-fatigue: feeling fed up to spend energy in changing processes knowing that it won’t bring anything or that it will be changed again in the future -Stress: danger of predicting or anticipating specific results, in pre-calculating exactly what change-programs will cost (lots of managers take for granted their wishes) – 80% of change programs fail because of an exaggerated initial optimism, loosing all sense of reality by placing the parameters around the change program in a wrong perspective
Some statements (2) - Leiden in woelige tijden Daniel Vlerberghs en Hans Begeer: -you don’t need to wait until change happens: you can initiate it yourself and monitor it therefore you need to love change i.e. one should learn to break resistance against change, starting with oneself -Robert Stouthuysen: today’s managers need to : -Be alert for developments, also external to the company: be visionary -Be continuously up to date in the profession: be professional -Take time to think and afterwards to execute/drive: be manager -Extract of your people what they have: be leader -Be agents of change: be able to mobilize -Change management based on a relation between structure, culture, strategy and management -The loss of certainties in organization create stress: -Predictability -Feasibility of the organizational structure -Stability -Clearliness: loss of hierarchical structures, definition of responsibilities -The environment is changing so quickly so that adaptations to the external world only are not sufficient anymore
Some statements (3) - Turnaround management in de praktijk. Peter Faulhaber & Norbert Landwehr. : -Valkuilen en struikelblokken van de turn-around : -Vluchtgedrag -Selectieve waarneming -Vergoelijken, zelfbedrog, bedrog -Verkeerde opzet van de onderneming -Gebrek aan consequentie en radicaliteit, verkeerde consideratie -Opzetten van valschermen: de valkuil van de afscherming -Reparatiegedrag -Verkeerde of ontbrekende communicatie -Gebrek aan vertrouwen bij stakeholders -Foutieve beoordeling door stakeholders -Verlammingsverschijnselen -Turn-around management is een creatieve daad, waarbij een bedrijf onttakeld, gestut en opnieuw wordt ingekleed
Some statements (4) - The service profit chain. J.L.Heskett, W.E.Sasser, L.A.Schlesinger: -Hiring for attitudes first, skills second -The tyranny of “either/or” vs the policy of “and/also” - After Atlantis. Ned Hamson: -Chaos and opportunity are the twin choices for individuals and organizations as one era ends and the shape of the one to come is as yet unknown -How much longer will successful companies survive if they don’t figure out how to respond to the challenge of change -Currents, rip tides and whirlpools to overcome: I want it now, new, beautiful/elegant, high quality, low cost, earth and users friendly, and made just for me -Managers and workers saying: I want more input/control over my job, it should have meaning for me, I need variety/newness, I want predictability too, I want my job to have less hassle in it/ user friendliness/low cost to me, I want it to fit me and I’m going to watch your feet, not your lips
Some statements (5) - Dagboek van een vijftiger, Herman van Rompuy: -De herhaling geeft stabiliteit. -Gecompartimenteerd leven: daarvoor moet je een vijftiger zijn -Waarheid komt 2 à 3 jaar later -De waarheid kan kwetsen maar de onwaarheid nog veel meer. -Het moeilijkste is niet vernieuwen maar trouw blijven -Steeds meer doe ik dingen uit plichtsgevoel. Daar komen geen initiatieven uit voort maar wel goede raad en goed beheer -Wie zich te evenwichtig voelt mist de gedrevenheid -Wie vaak ontgoocheld is, is eigenlijk zeer pretentieus en wie het niet meer is heeft geen verwachtingen meer
Some statements (6) - Five frogs on a log, Feldman, Spratt: -Change is expensive but delay can be catastrophic -If I had to do over again, I would have done it faster -Getting good players is easy. The hard part is getting them to play together -A merger between equals gives the managers of the combined organization a license to engage in an interminable debate over who has the best practices -One calendar year in transition is equivalent to 7 years of normal growth, and so you have to move at an unbelievable pace (John Chambers – Cisco) -Management caught spinning its wheels is almost invariably management that is pursuing too many business initiatives simultaneously -The kind of reengineering that must be done in the middle of a major transition is like operating a MASH unit. It’s not pretty, It’s not perfect. But it saves lives.