Fewer silos, more collaboration – a new leader to unify a business,simplify and grow

The company

Emerald Corp. is a long-standing technology multi-national that had initially grown by acquisition and delivered many years of successful growth in profit – by cutting costs more than raising sales. As part of further cost reductions, four smaller divisions of the business were to be integrated into one big one. A new divisional CEO was recruited from outside the business to make this happen

The CEO’s problem

Business: The goal of new CEO Michaela Green was to grow slowly but sustainably, into more profitable services, while removing all the overlapping backroom costs.

Organisational: Green knew that the Managing Directors of all four original divisions felt they should have been given her new top job. She was younger than all of them, female, and black – they were all white men. Her goal was to keep them all in the business for as long as possible, as members of the new unified executive team, and harness their knowledge to make fast progress on the integration.

The work We were bought in at the start and were able to observe the newly formed leadership, and interview them, and many of their direct reports. This allowed us to run a ‘put everything on the table’ offsite with the new executive where we shared the common concerns, problems, opportunities, and common ground – and encourage an honest and productive discussion. We helped the team articulate a new unified ambition, and agree the priorities for action – in integration, and market-facing priorities. At the team’s suggestion, this became a quarterly event for 18 months, as we helped them assess each passed milestone, lessons learnt and opportunities for faster progress.

Making it stick To make the integration, and stronger market-focus, sustainable, the executive created a ‘top 30’ leadership group with cross-silo project groups who were given 6-month goals to plan and execute key aspects of the plan. That also helped confirm successors to a few of the ‘old-guard’ executive members, several of whom left during the second year. By 18 months in, it was fully integrated, with stronger market presence, and a high-performing executive team.

Bringing to life a radical new strategy, to mobilise the organisation

The company

Diamond n.v. was a business-to-business services company that had once led their market but had lost their way. The result was business performance aimed at defending market share and dwindling profit rather than seeking growth. Standing still would mean a slow death – and the parent company of this standalone business was thinking of closing it down or selling it off.

The CEO’s problem

Business: CEO Jacques Cerise had developed a strong new strategy but this required slowly exiting long-established areas of busines and entering new ones.

Organisational: Cerise had little confidence that his radical plans would be embraced and delivered by leaders across the business given the degree of change it involved.

They worked in strong silos at the best of times and the new plans required full collaboration.

The work

We designed a process to communicate, engage and mobilise people throughout the business – initially focused on the size of the challenge and the excitement of the new ideas. Key to progress was inviting the most senior 50 to actively develop the detailed plan and what their role was to be. We provided tools, practical ideas, coaching, and support to an implementation group who led the process.

Making it stick

Among the practical outcomes was a high-profile and creative way of articulating the new Diamond strategy – the tough side of it as well as the exciting aspects - so that absolutely everyone got it, as well as quick changes to a range of processes (especially decisions on innovation and investment) and an upgrade to their communication effectiveness. As a result, the company moved quickly to a new, more profitable, business model with a significant increase in its ability to grow.

Build a new executive team following a recession-forced 'near-death' merger

The company

The recession had prompted competitor service businesses Zircon plc and Amber s.a. into a cross-border merger in order to survive.

The CEO’s problem

Business: Merging the two rivals saved both from danger. Julian Grey, the new CEO, now needed to restore the businesses to health, quickly.

Organisational: Grey, had appointed a new top team with a good mix from both companies. The most urgent task was to align the former bitter rivals around a new strategy and a new business model and rebuild the confidence of employees and customers who had been very shaken by what had happened. No-one was happy, and there was no consensus on the way forward.

The work Through structured interviews, we conducted an initial assessment of the degree of convergence, or difference, among the executive team and wider leadership, on a range of factors including: marketplace environment, strategy, operating model, culture and values, ways of working and other implicit mental models of leadership.

We also shared our observation that the attitude of the executives varied from extreme complacency through to post-traumatic near collapse. Based on all this analysis, within six weeks we had led a series of short, tailor-made short workshops that enabled them to agree what they would choose to keep from their two previous organisations, and what they would start afresh. The outcome was a new business model, a well-articulated story, and a clear three-year ambition.

Making it stick

CEO Grey launched the new operating model, ambition, and journey at a leadership conference, complete with new success measures. The new pace and alignment were visible to all and it accelerated the integration and implementation of the changes required. Unlike with most mergers, there was little loss of business during the first year.