- 1. Managers are people who do things right and leaders are
people who do the right thing.by Peter F DruckerThe best leaders
dont know just one style of leadershiptheyre skilled at several,
and have the flexibility to switch between stylesas the
circumstances dictate.
2. Picking Up The Right Transition Strategy:-2Presented
by:-By:-GROUP-8Mr. Michael D Watkins 1ST MBA- SEC AAnusha
JoseRevathi HPriyadharshniSudhakaranKimoth Veronica ETM-PICKING UP
THE RIGHT TRANSITION STRATEGY 5/22/2009 3. LEARNING OBJECTIVE:-3 To
learn how a leader transitioning into a new situation can correctly
diagnose the situation and then select the right leadership
approach. ETM-PICKING UP THE RIGHT TRANSITION STRATEGY 5/22/2009 4.
THE STARS FRAMEWORK.4START UP TURN-AROUND ACCELERATEDREALIGN-
SUSTAININGGROWTH MENT SUCCESS [Assembling[Saving a
business[Managing a[Helping a [Continuing a ,people ,financing
widelyrapidly expandingpreviously good record of & technology
toacknowledged to be business] successful accomplishment] get a
newin serious trouble]organization business] that now has problems]
CHALLENGES 1. Building the 1. Reenergizing1. Putting in place1.
Convincing 1. Finding ways strategy from demoralizedall resources
toemployeesto take scratch employees &permit scaling. that
changebusiness to without a clear stakeholders 2. Integratingis
necessary.new levels. framework.2. Makingmany new 2. Carefully 2.
Playing with 2. Recruiting a effectiveemployees restructurin good
caution highdecisions underg the topand defense on performingtime
pressures.team & new initiatives team refocusing 3. Limited the
resourcesorganization ETM-PICKING UP THE RIGHT TRANSITION
STRATEGY5/22/2009. 5. Contd..5START UP TURN-ACCELERATED REALIGN-
SUSTAINEDAROUND GROWTHMENT GROWTH OPPORTUNITIES 1. Things can be 1.
Everyone1. The potential1. The 1. A strongdone right fromrecognizes
for growth helpsorganization team maythe beginning. that changeto
motivate hasalready be in 2. Employees areis necessary.people.
significantplace .energized with2. A little2. People will bepocket
of 2. People likepossibilities. success goes inclined to
strengthsto continue 3. There is no rigida long way.stretch2.
People wanttheir historypreconception.themselves. to see in
success.themselves assuccessful.ETM-PICKING UP THE RIGHT TRANSITION
STRATEGY 5/22/2009 6. CASE SUMMARY:- 6 Stefan Eisenberg ,a hard
driving German born executive was the vice president of European
manufacturing operations of an international consumer products firm
based in United States. In Europe- He restructured the organization
in the following ways:- Centralized manufacturing support
functions. Closed down four of least efficient plants. Shifted a
big chunk of work to eastern Europe. Efforts bore fruits by end of
18th month and 3 yrs after these changes the company plantswere in
the top 20% of Benchmarked plants in Europe. His success in Europe
led to his promotion as ExecutiveVice President for Supply chain in
North Americanoperations, headquartered in New Jersey. ETM-PICKING
UP THE RIGHT TRANSITION STRATEGY5/22/2009 7. Case summary Contd. 7
In North American operations:- The job was a much bigger one
combining with many works. The Organizations long term success had
recently shown signs of slipping and industry benchmark for the
company was slightly below average. Stefans own assessment
indicated that serious problems were brewing. Managers reveled in
their ability to react well in crisis rather than tearing problems
from their root. Now Stefan need to adopt a measured approach and
open peoples eye that a problem even exists. ETM-PICKING UP THE
RIGHT TRANSITION5/22/2009 STRATEGY 8. STRATEGIES ADOPTED BY
STEFAN:-8 Using STARS Model, Stefan was able to recognize the
difference between realignment situation he was heading into and
the dramatic turnaround situation he so successfully managed in
Europe. ETM-PICKING UP THE RIGHT TRANSITION STRATEGY 5/22/2009 9.
WATKINS'S RECOMMENDATIONS FOR NEWLEADERS:-9New Situation Requires
Fresh Approaches. Watkins recommends these steps: Diagnose the
situation.Are you leading a startup? A turnaround? Realigning a
faltering company?Managing a rapidly expanding business? Select the
right organizational strategies.For instance, turnarounds require
faster, riskier changes than realignments andcall for technical
learning (strategies, markets, technologies).Realignments demand
mastery of cultural and political nuances. Adopt the right
leadership style.For example, in turnarounds, people are hungry for
hope, vision, and direction.Youll need a heroic stylecharging
against the enemy, sword flashing.Realignments require stewardship:
diplomatic building of consensus around theneed for
change.ETM-PICKING UP THE RIGHT TRANSITION STRATEGY5/22/2009 10.
CONTD10 Establish A-item priorities:-In Turnaround , managers
should address shortcomings immediately e.g.:-slashing costs. In
Realignment, managers need to focus on systems, skills and culture.
Build the leadership team fast:- In Turnaround , recruit new senior
talent from the outside.In Realignment, firing those who dont
support the new vision or promoting high potentials with innovative
ideas. Identify where early wins can be secured.In Turnaround ,
early win-moving people from state of despair to one of hope. In
realignment, early win- to raise peoples awareness of the need for
change. ETM-PICKING UP THE RIGHT TRANSITION STRATEGY 5/22/2009 11.
THE IDEA IN PRACTICE11 Watkins focuses on two transition
types..Turnarounds and Realignments:- 1. In a turnaround, you must
save a business recognized as in crisis. Challenges include:
Reinspiring demoralized stakeholders Making effective decisions
under pressure Going deep enough with painful cuts 2. In a
realignment, you must reenergize a previously
successfulorganization.Challenges include: Convincing stakeholders
that change is needed Restructuring the top team and refocusing the
organization. ETM-PICKING UP THE RIGHT TRANSITION STRATEGY5/22/2009
12. SELECTING THE RIGHT TRANSITIONSTRATEGY 12 StrategyIn aIn
Europe, In a In North Elementsturnaround... Stefan...realignment.
America,.. Stefan... LearningFocus onAssessed the Focus on Thought
how technical organizations cultural he, as an learning (e.g.,
strategy,compand politicaloutsider, could about etitors,produc
learning.help people see competition orts,marketsthe need for
technology&technologies change. Changes) EstablishingMake fast,
riskyLessened Make moreFostered a prioritiesmoves
focusingemployees, Deliberate culture of on strategy and
centralizedmovesownership(e.g. structure.manufacturin focusing onby
promoting gsystems skills managers from functions to and culture.
Within. cut costsETM-PICKING UP THE RIGHT TRANSITION
STRATEGY5/22/2009 13. Contd13 StrategyIn a In Europe,In a In North
Elementsturnaround.Stefan... realignment. America, .. .. Stefan...
BuildingClean house at Drastically Make just aRecruited several
leadershipthe top; recruit reduced top few importantleaders with
teams external ranks and changes, strong technical talent.hired
promotingskills to supportmost newfrom withinsystems changessenior
talent when possible. he planned forfrom outside.manufacturing.
SecuringReplaceClosed ailing Replace denial Revamped early
winsdespairplants, with performance with hope. refocus- ed
awarenessmetrics inpeoples manufacturing &attention on customer
servicethe companysto highlightcore strengths.crucialETM-PICKING UP
THE RIGHT TRANSITIONweaknesses. 5/22/2009STRATEGY 14. ADOPTING THE
RIGHT LEADERSHIP STYLE14 Turnarounds call for heroic leadership:-A
Leader need to give people a sense of hope, acompelling vision, and
clear direction. In Europe, Stefanimmediately took charge and made
some very painful calls.Because the outlook was bleak, people acted
on his directiveswithout resistance. Realignments require
stewardship:-Leader must set aside ego and patiently build
consensusaround the need for change. In North America, Stefan
resistedthe urge to step in and issue directives. Instead, he
provideddata and let people form their own conclusions. They
tookownership of problems and of the change initiatives requiredto
solve them ETM-PICKING UP THE RIGHT TRANSITION STRATEGY5/22/2009
15. LEARNINGS FROM THE CASE:-15 If Stefan had treated his new
situation as a turnaround , hewould probably have incurred both
active and passiveresistance, undermining his ability to realize
needed changeespecially because he was an outsider coming in
andtherefore vulnerable to being isolated . LEADERS IN TRANSITION
RELY ON THE SKILLS AND STRATEGIES THAT WORKED FOR THEM IN THE PAST
THATS A MISTAKE ETM-PICKING UP THE RIGHT TRANSITION
STRATEGY5/22/2009 16. CONCLUSION:-16 The STARS framework is helpful
for individuals moving into new business situations and seeking to
develop organizational and personal strategies. It can also play a
central role, no matter what the business situation, in a new
leaders attempts to get bosses& peers to agree on the core
challenges and change ETM-PICKING UP THE RIGHT TRANSITION
STRATEGY5/22/2009
