So You Think You Need to Change

1
So You Think You Need to Change

• Marilyn KinnePresident Accurate Lubricants
  Metalworking Fluids, Inc.

2
So You Think You Need to Change

• Identify it, Facilitate it Measure it?
• What prompted you do it?

3
The Situation

• Who are we? A 12-16M sales service
  organization being run the same way for the past
  20 years
• Who do we want to be? A dynamic, growing,
  sustainable organization able to take advantage
  of new customer market opportunities
• How are we going to get there? A gut check of
  our capabilities capacity with current
  personnel physical assets could we redirect our
  ourselves the organization to manifest the
  needed changes?
• What are have been the obstacles?
• Who? Stalled by non-participative to contrary
  partner(s) push back not worth the effort to
  facilitate change
• What? Fear of failure unclear vision of the
  change process required
• What? Need to define the goal for change, the
  new reality
• When? Primary partner retirement opens window of
  opportunity
• When? Timing for the succession of a sustainable
  business model

4
The New Company Profile

• The Goal is to become a more Professional,
  Positive, Focused Organization a dynamic model
  for growth and sustainability
• Concerns
• Company must change to survive for long term
  viability
• Existing management team must grow develop to
  reach self actualization
• Amount of change work to do so is at first
  overwhelming
• Unsure on organization structure of the change
  process
• Unsure on how to sell the change process to
  management team company personnel
• Need to measure change process track ROI
• I cannot do this myself outside assistance is
  required

5
Finding that Facilitation Resource

• Serendipitous Luck/Gut Feel answered a direct
  marketing call from HCMM
• Multi month interview process due to personal
  schedule team acceptance
• Reviewed website testimonials
• Logical opt-out at any time in sequence of events
• Advisor earns value daily, paid weekly
• Take the time to feel comfortable with the
  resource
• Moving forward a leap of faith

6
HCMM Consulting The Process

• Diagnostics 3 days for interview of each owner,
  manager key department personnel
• What you do, why how can it be done better
• What do you like about the company
• What you do not like would change about the
  company
• Basic company metrics financials, existing
  business plan, organization chart, management
  team bios, current job descriptions

7
HCMM Consulting The Process

• Presentation of diagnosis The Hard Truth!
• Your Perception
• Their Reality
• Proposed plan to reconcile where we are today
  versus where we want to be The Change Process
• Knowledge Acceptance Change
• The time is Now we start next Monday

8
HCMM Consulting The Process

• The Company Goal is become a more Professional,
  Positive, Focused Organization
• Professional trained knowledgeable
• Positive acknowledged engaged
• Focused goal directed planned

9
GOAL Professional

• Leadership Management are not born skills
• Company leadership group spent 2 hours per day
  with coach in group session discussing relevant
  principles and applying them to current
  challenges.
• Managers spent 2 hours per day with coach in a
  group session discussing skills required and
  using them to enhance their managers role with
  their staff.
• Supervisors spent 1 hour per day discussing
  their role and how to better fulfill their job
  using skills discussed.
• Unprofessional conduct will not be tolerated
• A too casual work attitude had developed
• Need identified to develop a we not an us
  them atmosphere within the company
• Setting maintaining a clear, common company
  agenda at vendor customer interface
• Rules of Conduct mutually established
  presented by managers to staff
• Communication within, throughout outbound from
  the company needs to be enhanced, improved in
  quality brought to higher levels with customers
  vendors

10
GOAL Positive

• With knowledge comes confidence
• With specific guidelines comes assurance
• Biweekly open format meetings with department
  managers does not let problems fester or be
  ignored
• Monthly staff meetings set the work agenda
  facilitate completion of goals

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GOAL Focused

• New in depth detailed job descriptions
• Clearly defined expectations
• Sales compensation revamped to drive behavior
  toward new business generation
• Mutually set target goals for all departments
• Planned anticipated periodic performance
  evaluations for all employee levels

12
Results

• Leadership team is better able to lead, engaged
  in the process embracing their role
  transformational changes in their attitude, style
  approach
• Managers are more knowledgeable, more confident
  more effective in their role Empowered managers
• Supervisors have changed attitude from a worker
  to a supervisor of workers Specific learned
  skills incorporated into resolution of
  personal/home events
• Goals both personal company are being
  accomplished, not because they have to be, but
  that they want to be Managers not only feel
  empowered, but in control
• A better cohesiveness is evident throughout the
  organization There is an over-riding positive
  attitude a cohesiveness, a we mentality that
  is now evident across the departments
• The most profound result was the development of
  my designated successor Consultant moved into
  his office took him under his wing. Over the
  2 month period people leadership skills were
  moved light years forward. Coach has remained as
  a personal confidant mentor.

13
Results ROI s

• Sales revenue PFY down 18 CFY up 24
• BT AD GP PFY down 12 CFY up 32 Before
  tax accelerated depreciation
• Operations efficiency 15 increased deliveries
  with zero increase on average in personnel
• Administrative efficiency 21 increased orders,
  invoicing, A/R A/P with zero increase in
  personnel
• Achieved value versus Professional Fees paid to
  consulting firm 1.5 X the fee paid

14
Things Learned

• Your employees perception will not change until
  your perception does
• Past deeds are in the past
• Past successes are in the past
• You can never change yesterday, but you can
  certainly influence tomorrow
• I did not have to be the teacher I did need to
  endorse support the learning process
• Change is a journey not a destination
• Return on Investment may not be directly
  discernable in dollars, but the subjective
  changes do translate into higher efficiency,
  enhanced effectiveness, increased profits
  greater personal fulfillment

15
The Continuum

• The journey is not over continued personal
  company growth is necessary for long term
  sustainability
• Next Steps
• Recap self audit of the past years results
  accomplishments
• Succession planning timing, funding, mechanism
  for transition to new leadership team

16
Addendum

• Training Reference Books
• Leadership Group John Maxwell's 21 Irrefutable
  Laws of Leadership
• Managers Richard Templars Rules of Management
• Supervisors Louis Imundos Supervisors Handbook
  
• Computer Professional Skills Training
• New Horizons both in class online computer
  courses business etiquette classes
• Sandler Sales Training ongoing sales process
  training