Week 4 literatuur Flashcards
1
Q
Doug Y Mckinsey Ten tips for leading a company out of crisis
A
- Throw away your perceptions of a company in distress
There is not one working def for a company in disrtress. Problem is a result of greater number of signs interacting together and with external factors.
placat e - Force yourself to critizize your own plan
Build in trigger points (Operational, market performance and financial metrics). If performance is not there, reasses. - Expect more from your board
Managers treat board as necessary evil to placate but this undermines board role as early warning system.
-Focus on cash
Is company generating cash or burning it? which investment in business are generating or burning cash?
- Create a great change story
Creating a change story that everyone understands and that creates some sens eof urgency. (Means something to average joe to get them on board.) - Treat a turnaround like a crisis
A crisis demands significant action, now, which is what a disstressed company needs. Not a reaction like a stable company. Bold actions change trajectory of the company. Company in crisis is willing to try things that it normally wouldn’t consider. - Build traction for change with quick wins.
In addition of going after big bets managers should focus on getting a series of quick wins to gain traction within organization (Cost focused or policy focused). They generate support from employees. - Throw out your old incentive plan
Incentives were too complex. Offer managers incentives tied to specifically what you need them to do. - Replace a top team member or two
They often block change because they’re defencding what they believe is true. it also sends message to stakeholders. - Find and retain talanted people
- People with institutional knowledge (not top performance)
- attracting new leadership talent
