Ensure that entire company is marching to the same tune

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(Business Day (South Africa) Via Thomson Dialog NewsEdge) Ensure that entire company is marching to the same tune Randall D Kelley THE key decision Bill MacLeod should make is where he wants to retire once the board fires him! I say this for several reasons. He has tolerated a vice-president of sales who has been politely sceptical of the company's new solutions-based growth strategy. He is getting a series of not-so-subtle hints from his board that it is not happy and wants him to accelerate implementation of the new strategy. He was not personally involved in an unsuccessful effort to land a major deal with one of the company's largest customers. And he seems nervous and reluctant to bring in a candidate whom the board feels could be part of the solution. In my judgment, MacLeod must decide immediately whether he is really committed to the new growth strategy and organisational changes. Any successful change programme starts with awareness of the need for the change and a willingness to act. My sense is MacLeod is not quite there yet and is communicating some doubts and reservations that are, in effect, freezing the organisation. If this continues, he may soon be getting more of Ed Zorthian's unvarnished advice to step aside. MacLeod needs to know exactly what the board's expectations are for revenue growth, profitability, and timing. It is important that he know just how much runway he has left to implement the strategy and what the board will consider a success. In addition, he needs a clear, compelling plan for communicating the business case for the new strategy throughout the company and for winning over veteran employees.



Given the longer sales cycle and the organisational complexities required to deliver integrated solutions, it is doubtful that the company can afford to abandon its traditional product-based sales approach altogether. More likely, Fusilier will need sales from the traditional business to generate cash flow and help fund the new solutions strategy. This means MacLeod will not have to choose between Elena Gonzalez and Jon Shapiro. He will need both. The company should retain a product sales and services division to serve customers who are price sensitive and still view IT as a commodity. Gonzalez sounds like the right person to run this, in large part because of her strong internal support and customer relationships. Concurrently, the company should form an enterprise sales and services division made up primarily of services department to focus on customers who are less price- sensitive and value end-user solutions. Shapiro sounds like the right leader for this group. To minimise the implementation risks to the firm, MacLeod needs to be absolutely sure both candidates buy into this new organisational model and can work together in a complementary, collaborative way. The time is perfect for MacLeod to give each candidate an assignment to detail their objectives and proposed action plans for the first 90 days in their new jobs. These could produce valuable insights and recommendations and ensure that all members of the new leadership team will be marching to the same tune. Moreover, it could assure the board that MacLeod is moving forward aggressively with a well-thought-out strategy for growth, a new organisational model, and the right leadership team. Kelley is a partner in the Dallas office of the executive search firm Spencer Stuart. He leads the company's professional services practice for North America.

Copyright 2006 Times Media Ltd.. Source: Financial Times Information Limited - Europe Intelligence Wire.
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