Roadmap for Recovery

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Roadmap for Recovery

• A Guide to Performance Turnaround

Marsha Cuddington, CPIM CIRM
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Why Focus on Turnaround?

• Career Growth Security! Fixers will always be
  in demand.
• Economic recovery will create more opportunities.
• Like any journey, it helps to at least start with
  a roadmap even if we must alter the course.

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Overview

• Getting Started
• Initial Capability Assessment
• Triage
• Leadership
• Life Cycle Approach
• Phase 1 Getting Control
• Phase 2 Stabilization
• Phase 3 Performance Enhancement
• Suggestions Summary

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Getting Started Ground Zero

• Capability
• Alignment
• Stability
• Integrity

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Getting Started The First Days

• Genchi Genbutsu Go and See
• Listen to input from others
• Make your own judgments, form your own opinions
• New Manager Assimilation Process
• Saves weeks of getting to know you
• Opens lines of communication
• Clarifies expectations in both directions

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Assimilation Process

• Within first 2-3 days, Facilitated by HR
• Process
• Introductions
• Assignments
• Yours
• Leave the room, so the team can have anonymity
• List Expectations, Priorities, Pet Peeves
• Theirs
• What do you need and expect from me?
• What are the major problems and issues?
• What should I know about this team?

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Assessment - Individuals

• Distinguish between Talent and Skill
• Recognize that basic characteristics dont
  usually change
• The right people, with the right characteristics,
  can be trained on the skills.

Its all about the people!
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Assessment - Team

• Diagnose capability
• Understand skill sets and role placement.
• Try to find something that IS working.
• Look for the hidden gems
• Check for conflict or contradiction of goals

Figure out what you have!
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Assessment - Team

• Team members should compliment each others
  weaknesses and yours!
• Ability to support team and organizational goals
  supersedes individual abilities.
• Find common ground for alignment

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Assessment - Team

• Make changes as quickly as possible, when they
  are clearly needed.
• It is less painful when done early
• Its more easily accepted when you are new
• May require a lot of courage!
• Get individuals into the best fit possible, while
  getting the right people on the bus.

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Assessment - Metrics

• Seek out key metrics. If they dont exist, get
  them started ASAP. Confirm data!
• Subjective measures have no value
• Ensure that the RIGHT things are being measured
• Control the frequency of metrics

Find out where you are!
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Common Metrics

• Employee Focused
• Safety, Absenteeism, Turnover, Satisfaction
• Customer Focused
• On Time Delivery, Service Levels, Backorders,
  Sales, Complaints/Corrective Actions
• Business Focused
• Profitability productivity, expenses

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Assessment Define Issues

• Utilize the metrics as diagnostic tools
• Listen to the customers internal and external.
  They know what is NOT working.
• Listen to the team, and dont shoot the
  messengers they need your support.
• JDLR trust your instincts

Decide what to fix first!
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Triage

• Define the critical few priorities.
• Determine next level of work that will be needed
  to reach functional levels in key areas.
• Move the nice to have items out of short-term
  range. Expect some criticism!

Keep your focus on the critical flow!
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Triage

• Stop the bleeding! Find the most critical
  issues, with the most immediate impact, and roll
  up your sleeves..
• Identify top 2 or 3 not a laundry list
• Work on one while planning the next
• Use these first tasks as opportunities to coach
• Recognize that others may feel neglected during
  this time.

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Leadership

• A favorite quote from Colin Powell
• Leadership is solving problems. The day
  soldiers stop bringing you their problems is the
  day you have stopped leading them. They have
  either lost confidence that you can help or
  concluded you do not care. Either case is a
  failure of leadership.

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Leadership

• Be Flexible let the situation dictate the style
• Lead the team .dont leave them!
• Balance the energy levels

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Leadership
FEAR

• Never intimidate! Fear will keep the truth at a
  distance.
• Be Fearless! Fear is a negative that adds no
  value, and can drive wrong decisions.
• Show integrity at all times.

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Life Cycle Long Term Strategy

• Phase 1 is survival mode dont expect rapid
  levels of performance improvement.
• Phase 2 begins when processes begin to stabilize.
• Phase 3 shows results!

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Phase 1 Control

• Select a few critical items to focus on.
• Triage should help identify these.
• Common Critical Controls
• Shipments/Revenue
• Backorders
• Productivity/Throughput
• Quality
• Customer Complaints

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Phase 1 Control

• Be willing to sacrifice less vital areas, and
  take the corresponding pain.
• Communicate clearly in all directions
• Ensure that short-term sacrifices fit into a
  longer-term recovery plan, that can be explained
  to YOUR management

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Phase 2 Stabilize Visual Tools

• Create a Dashboard or Balanced Scorecard
• Engage all areas of the team to get buy-in
• KPIs should mirror and support business targets
• Ensure alignment by defining common goals
• Goals should drive behavior
• Initial list should be relatively short
• EVERYONE should see how their role fits

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Phase 2 Stabilize

• Communicate on a regular basis
• Review for corrective actions
• Modify goals, when appropriate
• Drive process management and control
• Keep it simple, and visual

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Phase 2 Stabilize
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Phase 2 Stabilize

• Establish structured reviews of team performance
• Ensure that goals meet SMART criteria
• Specific
• Measurable
• Achievable
• Realistic
• Time Based

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Phase 2 Stabilize

• Provide regular feedback
• Enhance metrics and tracking
• Develop improvement plans for next phase

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Change the DNA

• Create a vision early. By end of Phase II,
  everyone should feel it and own it.
• Establish continuous improvement as a key goal.
• Drive accountability and ownership. High
  expectations usually yield high performance.

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Phase 3 Performance Enhancement

• Use past performance as learning tool
• Regularly review and update goals and targets, as
  a team.
• Allow others to step into the lead they may
  surprise you with their ideas, and set tougher
  goals than you would!

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Phase 3 Performance Enhancement

• Define continuous improvement as a standard
  requirement
• Seek ideas from multiple sources
• Outside the organization
• Team members past experiences elsewhere
• Trade and professional organizations

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Phase 3 Enhance
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General Suggestions

• Be realistic about time lines
• Adjust the course as necessary
• Ensure alignment by promoting a strategic view
• Demand Integrity
• Promote appropriate risk-taking
• Be tolerant of mistakes, as learning vehicles
• Encourage innovation independence

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Summary

• Understand the people
• Build the team
• Prioritize
• Drive continuous improvement
• Lead with integrity, and without fear
• Flex and adjust as necessary

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Questions Comments?

• Please feel free to send feedback to
• mcuddington_at_hotmail.com
• Thank You!