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Case Study One: Driving Strategic Change

A national distributor was struggling to execute their growth strategy.  Inventory for the new product lines was building in their distribution centers and cash flow was becoming an issue.  Quick action was needed to prevent the company from experiencing financial distress. After seeking feedback from key operations leaders, it became apparent that the salesforce did not understand and was not committed to selling the new product lines.  To combat this, several measures were put into place to re-engage the workforce:

  • Each executive was assigned 4-5 strategically important locations. Town hall meetings were held to understand the concerns of the sales force and local management teams and to reinforce Company strategy.

  • A low-cost online learning provider was engaged to convert a 7-hour training session on the new product lines into a series of 5–7-minute videos.  This training was assigned to individual sales representatives and test scores tracked to ensure completion and understanding.

  • Sales Representative and Sales Manager compensation programs were redesigned to provide increased commissions for the new products lines and signing bonuses for new accounts.  One-on-one meetings were held with each sales manager to ensure they could clearly explain the enhanced commission plan.

  • Outcomes: With a clearer appreciation of their role in implementing the business strategy and a more lucrative sales commission program, the company gained traction on the new product line strategy and financial results improved significantly:

    • Revenue increased from $713.9M to $937M.

    • Net income improved from $13.3M to $48.5M.

Case Study Two:  Building a Leadership Pipeline

Following the spinoff of a PE-backed manufacturer, the new Board of Directors wanted to learn more about the quality of current and rising high-potential leaders that would be required to drive business results.  They also wanted to understand the flight risk of department leaders who would be key to running the business

  • A leadership competency model was developed to create a shared understanding and clear descriptions of what it means to be an effective leader.  Directors and below received developmental feedback on their performance against the model through a 360-degree survey and individual development plans were completed based on the results. 

  • An Annual Talent Review process was implemented through which site directors presented a succession risk analysis to the executive team and proposed high-potential rising leaders for further development.  Following further discussion, a summary was presented to the Board of Directors. 

  • In the second year of the project, a four-day Executive Development Program was launched to build skills around common deficiencies such as financial acumen, driving change, and strategic decision making.

  • Outcomes:

    • The Board of Directors were satisfied that the leadership team would be able to ensure continuity in the event of unplanned exits and that a pipeline of emerging leaders was being developed to meet future demands. ​

    • Emerging leaders , seeing the efforts being made to advance their careers, were more engaged and stayed with the company during this critical transition period.  One of the emerging leaders became the CEO when the incumbent retired five years later.

Case Study Three: Assessing Cultural Fit Prior to an Acquisition 

A specialty manufacturer was considering acquiring a family-owned business and was concerned that the culture and leadership style of the target organization might not be in alignment.

  • A series of structured interviews were conducted with executives and department heads to understand the cultural values and leadership philosophy of the target business.  The interviews also inquired about their career goals and hopes for the future at the acquiring company. Additionally, several focus groups were conducted with randomly selected employees to gain their perspectives on what aspects of work were going well and what they would like to see improve.  The results were summarized and shared.

  • A competency-based leadership self-assessment was used with key leaders to communicate what leadership practices would be expected.  These results were summarized as a group report and discussed with the Business Unit President

  • Outcomes:

    • The leadership style of the target company was found to be generally authoritarian, and power was centered around three family members who made most of the decisions.  One leader was clearly unqualified for their role and was viewed by the employees as a product of nepotism.  This individual was removed as part of the sale agreement.

    • A major ethical issue was uncovered, and the target company was required to resolve it prior to the sale agreement.

    • Short and long-term leadership succession plans were developed to ensure a smooth transition of leadership. They included:

      • A General Manager from another location was given a development project to orient and coach the leader of the target organization for a six-month period.

      • A high-potential leader from the acquiring organization was transferred in as head of Manufacturing.

    • The integration proceeded smoothly and the new organization delivered the pro forma results.

Case Study Four:   Healthcare Costs and Employee Retention

A national distributor was experiencing increasing turnover rates at its largest and most profitable locations, resulting in increased overtime expenses and complaints from employees about “mandatory overtime”.  An initial review of exit interviews suggested that increasing medical insurance costs, poor first-line supervision and below-market rates of pay were the drivers.  The executive team needed to stabilize the workforce quickly.

  • Local salary surveys were completed for all jobs at the locations of concern.  This was immediately followed by a detailed pay equity analysis to understand what specific pay changes were required to resolve the problem.

  • A strategic review of the medical benefits program suggested a Reference-Based Pricing model would reduce medical insurance costs significantly while preserving the quality of care.   A Request for Proposal was launched and a new provider selected.

  • A 16-hour Supervisory Skills training program was piloted at the largest facility for all first line Supervisors and Team Leads

  • Outcomes:

    • Medical expenses were reduced by 37% ($3.6M) in the first year.

    • Approximately a third of the savings were invested in correcting pay equity issues and restoring market-based pay.

    • Turnover stabilized at historical levels, enabling the sites to reduce overtime and still meet productivity goals.

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