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Trevor Parker

A Quick DIY Guide to Driving Operational Efficiency

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A Quick DIY Guide to Driving Operational Efficiency and Growth

For many business leaders, the pressure to maintain operational efficiency while managing transitions and pushing for growth can feel relentless. The window for making strategic moves can close quickly, and it’s often better to get ahead of the wave before your flexibility starts to shrink. Taking control early—before conditions force your hand—provides far more room for effective decision-making.

While bringing in expert operational advisors can be transformative, you can also take proactive steps internally to identify opportunities and address inefficiencies before they become major roadblocks. This guide offers a straightforward DIY approach to managing your operations more effectively, allowing you to take control of your organisation’s future.

1. Conduct an Operational Review

Your first step should be an honest and thorough review of your current operations. Take the time to step back and assess your existing processes. Ask yourself the following questions:

  • Are there any bottlenecks or inefficiencies slowing down progress?
  • Which processes are outdated, unnecessary, or redundant?
  • How effectively are you utilising your current resources?

DIY Tip: Bring together your leadership team for a process mapping session. Map out each key operational process from start to finish, identifying pain points or areas where things slow down. Be critical but constructive in your analysis—this is your chance to streamline and improve.

2. Evaluate Your Cost Structure

Cost rationalisation is often the key to unlocking more efficient operations and preparing for future growth. But this isn’t just about cutting costs—it’s about ensuring resources are allocated effectively.

DIY Tip: Go through a line-by-line review of your cost base. Separate costs into two categories: essential and non-essential. Essential costs directly contribute to your core business objectives, while non-essential ones can potentially be reduced or eliminated.

Be sure to involve your finance team in this exercise and look for opportunities where small changes can create significant savings without disrupting business operations.

3. Create a Contingency Plan

Every business faces uncertainty, and successful leaders know that the best way to manage uncertainty is to plan for it. Contingency planning isn’t just about preparing for the worst; it’s about giving your team the confidence to make decisions quickly when circumstances change.

DIY Tip: Start by identifying your biggest risks—whether they are operational, financial, or related to external factors like market shifts. Then, develop a trigger-based plan. For example, if revenues fall below a certain threshold, what immediate actions should you take? Be specific about decision points, who is responsible, and what actions should be taken.

Contingency plans should be reviewed regularly, especially as new risks emerge.

4. Facilitate Collaborative Planning Sessions

Often, the best ideas and solutions come from within your team. By creating a collaborative environment, you can leverage the collective knowledge and experience of your leadership team to drive growth and efficiency.

DIY Tip: Run a facilitated planning session with your leadership team. Start by clearly defining the key objective—whether it’s improving efficiency, transitioning the business, or preparing for growth. Use structured brainstorming techniques like SWOT analysis or scenario planning to encourage diverse perspectives and creative solutions.

Remember to document your ideas and develop a clear action plan at the end of the session, with individual responsibilities and deadlines.

Final Thoughts

While operational advisors can offer immense value in driving rapid results and growth, there’s a lot you can do as a leader to take the reins on operational improvement. By systematically reviewing your operations, evaluating costs, planning for uncertainty, and facilitating strong collaborative sessions, you can lay the groundwork for long-term success.

When you need deeper expertise or an external perspective, that’s when professionals step in to help. But until then, these steps can serve as your guide to improving efficiency and positioning your business for growth.

You can read about some of our recent case studies here.

About the Author

Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profileand read what others say about Trevor.

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Trevor Parker

Operational Assessment & Succession Planning for potential acquisition

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Background

Scope: Operational Assessment for Potential Acquisition

A well-established business with a strong market presence, was being considered for acquisition. The current owners had played a significant role in the success of the business, having nurtured key client relationships, driven product innovation, and overseen critical strategic partnerships. With the owners planning to exit the business within three months post-acquisition, our client (PE Firm) was concerned about the operational continuity and the risk of losing key relationships that had been instrumental in the company’s performance.

Challenge

The operational assessment needed to address the following key challenges:

  1. Succession Planning for Leadership: The senior leadership team, closely tied to the outgoing owners, would need to be replaced either from internal talent or through external recruitment. The concern was whether the business could sustain performance with new leadership and whether internal talent was ready to step into senior roles.
  2. Client Relationship Dependency: Many key client relationships were personally managed by the owners, leading to concerns that the clients’ loyalty might be tied to these personal connections. If these relationships were not smoothly transitioned, the business could face significant revenue losses.
  3. Product Development and IP Risks: The owners had played a direct role in product strategy and innovation. There were concerns about whether the business could maintain its competitive edge in the market without the owners’ leadership. Additionally, there were questions around intellectual property (IP) ownership and the management of key licenses.
  4. Strategic Partnerships: The business had established strong partnerships with suppliers and collaborators, some of which were based on personal relationships with the owners. Ensuring these partnerships remained intact during and after the leadership transition was critical to avoiding operational disruption.

Approach

To address these challenges, we conducted a comprehensive operational assessment, focusing on succession planning, leadership gaps, and the potential impact of the owners’ departure on key business relationships and processes.

  1. Succession Planning and Leadership Transition:
    • Internal Talent Assessment: We evaluated the potential of internal leadership candidates to step into senior roles. While some promising talent existed, it was clear that external hires would be needed to fill critical gaps, particularly in strategic roles like Chief Executive Officer (CEO) and Chief Operating Officer (COO).
    • Leadership Development: A recommendation was made to immediately start leadership development programmes for internal candidates while simultaneously initiating a search for external talent to ensure a seamless leadership transition.
  2. Client Relationship Risk Mitigation:
    • Client Relationship Mapping: We created a map of key client relationships, identifying which relationships were directly managed by the owners. The findings showed that a significant percentage of revenue came from clients with a personal connection to the owners.
    • Transition Plan for Clients: A phased transition plan was developed, pairing existing account managers with owners during the final three months to ensure that clients felt supported during the transition. Communication strategies were designed to reassure clients of business continuity and maintain their trust.
  3. Product Development and IP Strategy:
    • Innovation Continuity: We assessed the strength of the research and development (R&D) teams and recommended the recruitment of a new head of product development to ensure ongoing innovation. This role would replace the direct oversight that the owners had historically provided.
    • IP and Licensing Review: An intellectual property review confirmed that key patents and licenses were owned by the business rather than the individuals, ensuring continuity post-acquisition. However, a strategy was implemented to ensure that the new leadership was equipped to manage and renew licensing agreements without disruption.
  4. Strategic Partnership Stability:
    • Supplier and Partner Risk Assessment: We evaluated key supplier and partner relationships, identifying where the owners had personal influence. While most partnerships were based on formal agreements, some key partnerships required a personal touch.
    • Partnership Transition Plan: A strategy was developed to introduce new leadership to key partners, ensuring a smooth handover and preserving favourable terms. Where necessary, contractual renegotiations were planned to formalise relationships beyond personal ties.

Outcome

By focusing on a comprehensive approach to succession planning and mitigating the risks associated with the owners’ departure, our client was able to:

  • Successfully Transition Leadership: A blend of internal promotions and external hires ensured that the leadership transition occurred smoothly, with minimal disruption to operations.
  • Preserve Key Client Relationships: The phased transition plan ensured that client relationships remained stable. Clients were reassured of the business’s continuity, and no major contracts were lost during the leadership transition.
  • Maintain Product Innovation: With a new head of product development and a well-supported R&D team, the business continued to innovate and stay competitive in the market.
  • Safeguard Strategic Partnerships: Key supplier and partner relationships were preserved, and favourable terms were maintained even after the owners exited.

Lessons Learned

  • Early Succession Planning is Critical: Addressing leadership gaps early, through a mix of internal development and external recruitment, can mitigate the risk of operational disruption.
  • Client Relationships Must Be Transitioned Carefully: When owners play a pivotal role in client management, early engagement with clients and clear communication are essential to preserving revenue streams.
  • Product and IP Continuity Requires Proactive Leadership: Ensuring that the right team is in place to manage product development and IP is vital for long-term competitiveness.
  • Personal Relationships in Partnerships Need Formalisation: Relying on personal relationships with partners and suppliers can be a risk. Formalising these relationships through contracts ensures business stability.
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Trevor Parker

Focus on the Gains and not just The Gaps

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Bridging Operational Gaps: The Power of Focusing on Gains, Not Just Gaps

In leadership, especially in operational management, the pressure to close gaps can be overwhelming. Leaders are often tasked with achieving ambitious goals, fixing underperforming areas, and driving continuous improvement. It’s easy to fall into the mindset of constantly measuring yourself or your organisation against an ideal that seems far off. This “gap-focused” thinking can create frustration, stress, and even a sense of failure.

But there’s another way to look at progress—one that’s just as important as identifying gaps: focusing on the gains. Let’s explore how leaders can shift their mindset to see both the gaps and the gains, and why this shift is crucial for long-term success.

What Are the Gaps?

In the context of operational management, gaps are the areas where performance doesn’t meet expectations. These might be gaps in efficiency, team skills, strategy execution, or even organisational culture. Identifying gaps is essential for growth. After all, knowing what’s not working helps you direct attention to the right areas for improvement.

However, problems arise when leaders become too focused on the gap between where they are now and where they want to be. This is particularly common in high-pressure environments where progress often feels slow or insufficient. When you constantly measure your business or your leadership against an ideal, the focus on what’s missing can quickly overshadow what’s been achieved.

The Gain: Celebrating Progress

The “Gain” is all about measuring progress based on how far you’ve come, not how far you still need to go. In leadership, recognising gains means acknowledging the incremental improvements and victories along the way. It’s about celebrating the fact that your organisation is more efficient, better resourced, or more agile than it was a few months ago—even if it hasn’t yet hit the ultimate target.

This doesn’t mean ignoring the gaps, but rather ensuring that progress is given its due weight. Too often, leaders move the goalposts without taking the time to acknowledge how much ground has already been covered. By regularly shifting focus to what has been gained, you create a more balanced, optimistic, and productive approach to leadership.

Why the Gap vs. Gain Mindset Matters

  1. Boosts Morale and Motivation
    Focusing solely on gaps can lead to burnout—for both you and your team. It fosters a culture where nothing is ever quite good enough. But when you take time to acknowledge gains, it reinforces a sense of achievement. Leaders and teams who feel their progress is noticed are more motivated to continue pushing forward. Research shows that focusing on strengths and positive accomplishments leads to higher employee motivation and performance (Luthans & Youssef, 2007).
  2. Strengthens Resilience
    Leadership, especially in interim roles or during times of change, can feel like an uphill battle. If you only see the distance still to go, you risk becoming discouraged. By regularly reflecting on gains, you build resilience, giving yourself and your team the psychological fuel needed to tackle future challenges. Carol Dweck’s work on the growth mindset illustrates that individuals who focus on progress are more likely to embrace challenges and persist in the face of setbacks (Dweck, 2006).
  3. Creates a Growth-Oriented Culture
    When you model a “gain” mindset, it encourages others to do the same. It shifts the culture from one of perfectionism to one that values continuous improvement. It helps your team focus on learning and growing, instead of feeling inadequate or overwhelmed by goals they haven’t yet reached.
  4. Improves Strategic Focus
    Celebrating gains doesn’t just improve morale—it sharpens your strategic focus. When you assess what’s working and what progress has been made, it helps clarify where to direct your next efforts. Understanding your gains makes it easier to fine-tune your strategy based on proven successes rather than just focusing on fixing problems.

How to Build the Gain Mindset into Your Leadership

  1. Regular Progress Reviews
    Incorporate regular check-ins that specifically highlight progress made, not just areas of improvement. These could be formal reviews or simple team discussions that take a moment to reflect on what’s working. This habit keeps the gain mindset front and centre in your leadership approach.
  2. Break Large Goals into Milestones
    To help teams focus on gains, break down big, long-term goals into smaller milestones. Celebrate each step forward. These incremental wins are important for maintaining momentum and preventing the overwhelm that often comes from only seeing the big gap ahead.
  3. Embed Reflection into Your Routine
    For yourself as a leader, set aside time—perhaps on Buffer Days—to reflect on gains. Use this time to consider how far you’ve come, the challenges you’ve overcome, and what you’ve learned. Regular reflection helps internalise the gain mindset and keeps you motivated for future challenges.
  4. Balance Feedback
    When giving feedback, balance your discussion of gaps with recognition of gains. Acknowledge the team’s progress before diving into what still needs to be done. This keeps the tone constructive and empowers people to approach problems with confidence, rather than discouragement.

Bridging Gaps by Building on Gains

At NorthCo, our approach to leadership is about more than just fixing problems and closing gaps. We believe the key to effective leadership is in finding the balance between recognising where improvements are needed and celebrating how much progress has already been made. It’s this “Gap vs. Gain” mindset that allows leaders to grow without burning out, to stay resilient even when the road ahead seems long, and to build cultures of growth that are sustainable over the long term.

By integrating this mindset into our operational management services, we help leaders not only bridge the gaps in their business but also build on the gains they’ve made to drive lasting success.

References

  1. Dweck, C. (2006). Mindset: The New Psychology of Success.
  2. Luthans, F., & Youssef, C. M. (2007). Positive Organizational Behavior in the Workplace: The Impact of Hope, Optimism, and Resilience.
  3. Deci, E. L., & Ryan, R. M. (2000). The “What” and “Why” of Goal Pursuits: Human Needs and the Self-Determination of Behavior.
  4. Amabile, T. M., & Kramer, S. J. (2011). The Progress Principle: Using Small Wins to Ignite Joy, Engagement, and Creativity at Work.
  5. Goleman, D. (1995). Emotional Intelligence: Why It Can Matter More Than IQ.

About the Author

Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profileand read what others say about Trevor.

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Trevor Parker

Supporting a Confidential Search for an Operations Director

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Client Overview:

Our client, a well-established business, had a highly capable internal HR function adept at managing recruitment processes. However, when they faced the need to replace their Operations Director, the team lacked the bandwidth to conduct the initial search while balancing their ongoing responsibilities. Additionally, due to the sensitive nature of the senior leadership position, the client sought a discreet recruitment process to maintain confidentiality.

The Challenge:

The client required a swift and effective search for an Operations Director, someone who could seamlessly integrate into the existing team and drive continued operational excellence. While the HR team was capable of handling the process, they were stretched thin with daily responsibilities, and the client wanted to avoid disrupting their focus. Moreover, confidentiality was paramount, and handling the recruitment internally posed risks of unintentional exposure.

Our Approach:

NorthCo was engaged to manage the initial stages of the recruitment, specifically taking on the search through to the shortlist stage. Our involvement allowed the client’s HR team to maintain focus on their core duties without diverting resources towards a time-consuming search. By handling the process externally, we also ensured a high degree of confidentiality, preventing any premature revelations that could have caused disruption within the organisation.

Our recruitment specialists took the time to understand the client’s business culture, operational needs, and leadership expectations. We conducted a targeted search, using our extensive network and industry knowledge to identify and approach high-calibre candidates. This was done discreetly, ensuring potential candidates were approached professionally and confidentially, with no risk to the client’s operational flow.

The Outcome:

Within a defined timeline, NorthCo presented the client with a curated shortlist of strong candidates, all of whom met the operational and leadership requirements. The HR team was then able to take over the process from the shortlist stage, managing the final interviews and selection internally.

By partnering with NorthCo, the client successfully maintained focus on their core HR activities while preserving confidentiality throughout the search. Our support enabled them to efficiently fill the Operations Director position with minimal disruption to the business, all while ensuring the right leadership fit for the role.

Conclusion:

This case highlights how outsourcing parts of the recruitment process can be an invaluable strategy for businesses with capable HR teams who need additional bandwidth or confidentiality in high-level searches. NorthCo’s tailored recruitment solutions helped our client maintain internal focus while securing a high-calibre leader to drive their operations forward.

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Trevor Parker

The 110% Myth – and the power of 20%

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We’ve all heard (or even said) it before: “I always give 110%!” That’s The 110% Myth. This familiar phrase might sound motivational, but it’s fundamentally flawed. You can’t give more than 100%, and most of us don’t even have that to spare once life’s other demands are factored in. So, let’s dive into a more sustainable truth: if you’ve only got 20% energy left for work, give it your best shot—100% of your 20%.

In today’s hustle culture, there’s immense pressure to burn the candle at both ends. Yet research shows that pushing beyond reasonable limits only leads to burnout, poor productivity, and frustration. As a leader, recognising this can be a game-changer. Instead of squeezing every last ounce of energy from your team, focus on creating an environment that values well-being and real results. Empower your team to work smartly within their limits, fostering both productivity and job satisfaction.

With trials of a four-day week showing promising results, there’s a real chance to rethink productivity metrics. Instead of hours clocked in, let’s focus on outcomes, quality, and impact. This approach not only aligns with evolving work-life expectations but could make adjusting to shorter workweeks far smoother. Embracing this shift may even future-proof your organisation, paving the way for happier, more engaged employees—and better results.

The Beauty of Realistic Expectations

We live in a world where hustle culture is glorified. There’s this idea that if you’re not burning the candle at both ends, you’re not doing enough. But let’s get real. Pushing yourself to give 110% doesn’t just defy logic; it’s unsustainable. It sets you up for burnout, exhaustion, and ultimately, disappointment when you inevitably can’t meet such impossible standards.

In fact, research shows that working excessively long hours can actually decrease productivity. A study by Stanford University found that productivity per hour declines sharply when a person works more than 50 hours a week. Beyond 55 hours, productivity drops so much that putting in any more hours is practically pointless. Meanwhile, those working 70 hours a week achieved little more than those working 55.

Instead, what if you focused on making the most out of the energy you do have? Imagine being fully present and engaged with the 20% you allocate to your work. That’s not just effective; it’s sustainable. It allows you to be your best self, not just at work but in all areas of your life.

Leading with Empathy and Realism

Now, let’s flip the script. As a leader, this is where you come in. Recognising that your team members have lives outside of work is key to fostering a healthy, productive environment. Perhaps since lockdown and the phenomena of T.W.A.T.s (Tuesdays, Wednesdays, and Thursdays in the office), we need to adjust our leadership style and approach to better reflect what was always true: life doesn’t neatly compartmentalise itself into work and personal time.

In fact, with the UK government seriously considering the implementation of a four-day working week—something that will surely spill over into the private sector—we’re witnessing a broader shift in how we view productivity and work-life balance. Trials of the four-day week across the UK have been promising.

One of the largest trials involving 61 companies found that 92% of participating organisations opted to continue with the four-day week after the trial period ended. Not only did employee well-being improve, but company revenues remained steady or even increased for many businesses.

This shift acknowledges what we’ve always known deep down: more hours at work don’t necessarily mean more output. If anything, they might mean less.

Balancing the Debate: The Other Side of the Coin

While the idea of a four-day workweek has garnered much support, it’s important to consider some counterarguments to this trend. Critics often point out that reducing work hours might not be suitable for all industries, particularly those that rely on continuous operations like healthcare or manufacturing. There’s concern that a shorter workweek could lead to increased costs if businesses need to hire more staff or pay overtime to cover reduced hours.

Furthermore, some argue that mandating a four-day week could limit the flexibility businesses need to operate effectively. In a globalised economy, where companies often compete with others in countries with longer work hours, reducing the workweek might put them at a disadvantage. Additionally, not all employees may benefit equally—those eager for career advancement might find fewer opportunities for growth with reduced work hours, impacting their long-term development.

It’s crucial to weigh these perspectives when considering changes to work policies. A one-size-fits-all approach may not work for every business or individual, and flexibility could be key to finding the right balance.

Practical Application: Making the Most of Your Energy

Applying the concept of giving “100% of your 20%” is both realistic and empowering. Here’s how you can start integrating it into your work and personal life:

  • Identify Your High-Impact Tasks: Spend a few minutes each morning to pinpoint the 20% of tasks that will yield the most significant results for your day. Aim to give these your focused attention, tackling them during your peak energy times.
  • Set Boundaries and Breaks: Recognise that to be effective, you need moments to recharge. Schedule breaks and set clear boundaries around your work hours, even if it’s as simple as blocking out 10-minute “pause” slots in your calendar.
  • Use Outcome-Based Goals: Instead of focusing on how much time you’ll spend on a task, set goals based on outcomes. For example, “finish project proposal draft” instead of “work on project for two hours.” This will help you prioritise quality over quantity.
  • Align Work with Personal Life: Since energy is finite, balance your work by integrating it with personal commitments. Plan your week to include time for family, health, and hobbies to ensure that work doesn’t dominate your energy reserves.
  • Regularly Assess and Adjust: At the end of each week, reflect on what worked well and what didn’t. Did you meet your outcome-based goals? Did you find yourself low on energy at certain times? Adjust your approach as needed to improve week by week.

Trends and Future Outlook: A New Era of Productivity

We’re witnessing a shift in how productivity is defined and measured, with trends suggesting that traditional “more hours equals more output” thinking is giving way to quality-focused, balanced approaches. Here are some developments likely to shape the future:

  • Outcome-Based Performance Metrics: Companies are moving from time-based measures to outcome-based metrics, focusing on the value of what’s accomplished rather than the hours spent. This shift aligns with the evolving workplace, where flexibility and results matter more than rigid hours.
  • Rise of the Four-Day Workweek: Trials across various industries suggest the four-day workweek could become a new standard. As more companies report stable or increased productivity with this structure, it’s increasingly likely that reduced hours, balanced with high-impact work, will become commonplace.
  • Well-Being as a Core Metric: Companies are increasingly recognising employee well-being as integral to productivity. Businesses that prioritise mental health, offer flexible work options, and encourage manageable workloads are attracting and retaining talent, setting a new standard for sustainable work.
  • Increased Automation and AI: As automation takes over more repetitive tasks, employees can focus their energy on high-level work requiring critical thinking, creativity, and interpersonal skills. AI tools may even support work-life balance by automating workflows and providing insights into energy-efficient scheduling.
  • Flexibility and Hybrid Work Models: With remote work here to stay, organisations are exploring hybrid models and personalising work schedules to match individual productivity patterns. This flexibility enables employees to align work with their energy rhythms, fostering a more balanced approach to output and engagement.

Supporting Insights

  1. Stanford University Study on Productivity: John Pencavel’s research shows productivity per hour sharply declines beyond 50 hours of work weekly, emphasising diminishing returns from excessive hours.
  2. The Pareto Principle: Richard Koch’s “The 80/20 Principle” explores how 80% of outcomes come from 20% of efforts, a valuable framework for prioritising high-impact tasks.
  3. UK Four-Day Workweek Trials: Research from Autonomy and 4 Day Week UK Campaign showed 92% of companies maintained the four-day work model after trial, seeing improved well-being and steady or increased revenue.
  4. Work-Life Balance and Job Satisfaction: Research published in Journal of Happiness Studies links balanced workloads to productivity and organisational commitment.
  5. Outcome-Based Performance Metrics: As detailed by Harvard Business Review, measuring results rather than hours allows flexibility, aligning with modern productivity needs.

These insights build a case for prioritising well-being, smart energy management, and a focus on outcomes over excessive hours. Embracing these shifts could foster happier, more productive workplaces and sustainable career growth.

Enjoy your weekend, and remember: it’s all about working smart, not hard. And maybe, just maybe, start using that 110% energy to plan your next holiday instead.

References:

  • “Working hours and productivity.” The Economist. Available at: The Economist
  • “Four-day working week: majority of UK firms in trial extend changes.” The Guardian. Available at: The Guardian

Counterarguments:

  • “The Four-Day Week: A Potential Pitfall for Business?” Forbes. Available at: Forbes
  • “Productivity and Working Hours: The Case for Caution.” Harvard Business Review. Available at: Harvard Business Review
  • “The Economic Impact of a Four-Day Work Week.” Financial Times. Available at: Financial Times

About the Author

Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profileand read what others say about Trevor.

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Trevor Parker

Systems Over Willpower

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A Paradigm Shift in Business Management

Introduction:

As a professional interim, I firmly believe in applying basic business principles during interim assignments.

During a recent assignment for a family office that had recently acquired the business I was assigned to, I encountered a profound insight that reinforced this perspective.

As we discussed how previous ownership had mistreated the business, causing its decline and subsequent sale, the family office owner shared an analogy that struck a chord with me. He said, “I see a business like a person. You wouldn’t mistreat a person; you would treat it respectfully and do the right thing by it.” This simple yet powerful analogy eloquently describes the basic building blocks for my interim leadership approach to the interim stewardship of businesses, especially those under stress.

Understanding the Business as a Person

Of course, the starting point of a fair proportion of my assignments involves generating positive cash flow through cost control and sales, without which they would not be able to survive without ever-greater levels of debt.

However, following this initial phase, a good interim will migrate into a stabilisation phase and prepare to hand over to more permanent leadership.

At this point, viewing a business as a living entity rather than a mere economic construct and shifting the focus from purely transactional management to a more holistic, empathetic approach has merit.

Like individuals, businesses have needs, potential, and vulnerabilities. They thrive when nurtured and falter when neglected. This perspective encourages us to consider a business’s emotional and psychological well-being, fostering a culture of respect and care.

Ultimately, I am an interim leader, and applying this style is undoubtedly better for the long-term good of the business and especially important for the benefit of any long-term leader who will ultimately inherit the fruits of my labour. So, let’s run with it.

The Consequences of Neglect

As a professional interim, many businesses I get involved with exhibit signs of neglect akin to those of a mistreated person. These signs include:

Erosion of Core Values: Just as a person might lose their sense of self-worth when mistreated, a business can stray from its core values and mission. This misalignment often leads to a loss of identity and purpose.

Demotivated Workforce: Employees are the lifeblood of any business. When a business is not treated with respect, it often manifests in poor employee morale and high turnover. Sensing the lack of respect and care, employees become disengaged, further exacerbating the business’s problems.

Customer Dissatisfaction: A neglected business fails to serve its customers effectively. Just as a person in distress might struggle to maintain relationships, a business under stress will find it challenging to meet customer expectations, leading to dissatisfaction and loss of loyalty.

Financial Strain: Financial health reflects the overall well-being of a business. Chronic neglect often results in mismanaged finances, leading to cash flow problems, mounting debts, and, ultimately, the risk of insolvency.

  1.  

The Path to Rehabilitation

Addressing the issues of a stressed business requires a comprehensive, empathetic approach akin to rehabilitating a person in distress. Here are some strategies to consider:

    1. Stabilise the business: It is vital that the business is stabilised and control is gained, or at the very least the negative activities are stopped and more postive actions are put in place to stop the business from sliding into more debt or even insolvency. Get the basics right as quickly as possible. 
    2. Rediscover Core Values: Reconnecting with the business’s founding principles and mission can reignite its sense of purpose. This process involves engaging with all stakeholders to reaffirm what the business stands for and where it aims to go.

    1. Foster a Positive Culture: Creating a respectful and inclusive workplace culture is crucial. This includes recognising and rewarding employee contributions, promoting open communication, and ensuring that the work environment is supportive and nurturing.

    1. Engage with Customers: Building strong relationships with customers based on trust and respect can significantly improve a business’s standing. Regular feedback and transparent communication can help in understanding and meeting customer needs more effectively.

    1. Financial Health Check: Conducting a thorough financial review to identify and address underlying issues is essential. This might involve restructuring debts, optimising operations, and ensuring robust financial planning and control mechanisms are in place.

    1. Leadership with Empathy: Leadership plays a critical role in the rehabilitation of a business. Leaders who areempathetic, transparent, and visionary can inspire and drive positive change. They must lead by example, showing respect and care in every decision and action.

Conclusion

For a professional interim, recognising when to switch from a transactional approach to a longer-term approach is a judgment call. The analogy of treating a business like a person is not just a poetic notion but a practical guide to fostering healthier, more resilient organisations. By recognising and addressing the needs of a business with the same care and respect we would afford a person, we can create environments where businesses thrive. This approach not only mitigates stress and conflict but also paves the way for sustainable growth and success. As stewards of companies, albeit interim, we are responsible for nurturing them with the respect and care they deserve, ensuring they are well-positioned to achieve their full potential under longer-term leadership.

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Trevor Parker

Developing a “Tip of the Spear” Approach to HR Leadership.

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Developing a “Tip of the Spear” Approach to Business

In business, the term “tip of the spear” is a metaphor borrowed from military jargon. It refers to the leading edge of a military operation, the first and most critical element in an assault. It also implies those operating at the front are taking on the most risk and facing the most danger.

In the business context, it signifies the forefront of an initiative, the most advanced and crucial part of a company’s efforts to achieve a strategic objective. Similarly, they are open to the most scrutiny because their efforts, good and bad, almost immediately affect the business.

Recruiting and Developing ‘tip of the spear’ operational leaders is paramount for organisations aiming to maintain a competitive edge and drive impactful results. These individuals are not only the pioneers in operational execution but also catalysts for transformation and innovation.

At NorthCo, we specialise in recruiting operational management, those at “the tip of the spear.”  

It’s a “State of Mind”

The “tip of the spear” mindset is more than a set of actions or strategies; in a former life, we would say “it’s a state of mind”.

Operationally focused ‘tip of the spear’ leaders are defined by their operationally oriented approach, proactive nature, strategic insight, and ability to execute critical operational tasks. They can foresee market trends, identify opportunities, and implement strategies with precision. These leaders are adept at navigating through complexities, making swift decisions, and driving initiatives that propel the organisation forward.

In short, they are experts in “getting stuff done.”

The Role of ‘Tip of the Spear’ Leaders at All Levels

It is a common misconception that ‘tip of the spear’ roles are reserved solely for senior executives or those in top-tier management positions. In reality, these qualities are just as essential at all levels of management. Whether it’s a team leader, a mid-level manager, or a department head, having ‘tip of the spear’ individuals throughout the hierarchy ensures that the organisation remains agile, innovative, and resilient from top to bottom.

Junior Management

At the junior management level, ‘tip of the spear’ individuals are those who consistently push boundaries and drive their teams to exceed expectations. These leaders:

  • Initiate Improvements:
    • Proactively identify inefficiencies and propose solutions to streamline processes.
    • Lead by example, encouraging team members to adopt a mindset of continuous improvement.
  • Motivate and Mentor:
    • Inspire their team with a clear vision and tangible goals, fostering a culture of high performance.
    • Act as mentors, developing the skills and potential of their team members.
  • Operational Excellence:
    • Ensure that daily operations are executed with precision and attention to detail.
    • Use their tactical expertise to troubleshoot issues swiftly, maintaining smooth workflows.

Mid-Level Management

Mid-level managers who are ‘tip of the spear’ are pivotal in bridging strategic goals with operational execution. These leaders:

  • Drive Strategic Initiatives:
    • Translate high-level strategies into actionable plans for their teams.
    • Monitor progress and adjust tactics to stay aligned with organisational objectives.
  • Foster Innovation:
    • Encourage a culture of creativity and experimentation within their departments.
    • Recognise and reward innovative ideas and initiatives that contribute to the company’s growth.
  • Enhance Cross-Functional Collaboration:
    • Facilitate collaboration across different teams and departments to achieve cohesive and unified outcomes.
    • Resolve conflicts and align diverse efforts towards common goals.

Senior Management

Senior management ‘tip of the spear’ leaders are visionary strategists who shape the company’s direction and inspire the entire organisation. These leaders:

  • Set the Vision:
    • Define the long-term vision and strategic direction of the company.
    • Communicate this vision effectively, ensuring all levels of the organisation are aligned and motivated.
  • Lead Transformational Change:
    • Spearhead transformational initiatives that drive significant business growth and innovation.
    • Navigate complex challenges and guide the organisation through periods of change and uncertainty.
  • Build High-Performing Cultures:
    • Establish a culture of excellence, accountability, and continuous improvement.
    • Foster an environment where employees feel empowered, valued, and motivated to contribute their best work.

Crafting a Role Profile Using the MOST Format

Creating a clear and effective role profile is pivotal for ensuring alignment and productivity within an organisation. I use the MOST format, which comprises Mission, Objectives, Strategy, and Tasks and provides a structured and comprehensive approach to defining roles, enhancing clarity, and setting actionable goals.

Mission

Definition: The mission defines the core purpose and overarching aim of the role. It encapsulates the essence of what the role seeks to achieve in alignment with the organisation’s vision and values.

Importance: A well-articulated mission statement serves as the guiding star for the role, offering direction and inspiration. It helps the incumbent understand their primary purpose within the organisational ecosystem.

Example: “To lead the digital transformation initiatives, enhancing operational efficiency and driving innovation across all departments.”

Objectives

Definition: Objectives are specific, measurable goals that the role aims to achieve. They should be aligned with the mission and contribute directly to the broader organisational goals.

Importance: Objectives provide clear targets for performance and success. They enable the incumbent to focus their efforts on critical outcomes and facilitate performance assessment.

SMART Criteria: Objectives should be Specific, Measurable, Achievable, Relevant, and Time-bound.

Example:

  • Increase online customer engagement by 20% within the next 12 months.
  • Reduce operational costs by 15% over the next fiscal year through digital automation.

Strategy

Definition: Strategy outlines the plan and approach the role will take to achieve the set objectives. It includes the methods, processes, and tools that will be employed.

Importance: A well-defined strategy ensures that there is a coherent and practical plan in place to meet the objectives. It helps in identifying the most effective pathways and resources needed to achieve the desired outcomes.

Example:

  • Implement a new CRM system to streamline customer interactions and improve data analytics.
  • Develop and launch a comprehensive digital marketing campaign to boost brand awareness and customer acquisition.

Tasks 

Tasks are the specific actions and activities that need to be performed to execute the strategy and achieve the objectives.They are the day-to-day responsibilities associated with the role.

Importance: Clearly defined tasks ensure that the incumbent knows exactly what is expected of them on a daily basis. They provide a concrete roadmap for action and help prioritise workload.

Example:

  • Conduct weekly meetings with the digital marketing team to review progress and optimise strategies.
  • Analyse customer feedback and data to refine digital transformation initiatives.
  • Collaborate with IT and operations to identify and implement automation opportunities.

Benefits of Using the MOST Format

Clarity and Focus: The MOST format provides a clear and focused role profile, ensuring that the incumbent understands their purpose, goals, and the steps to achieve them.

Alignment with Organisational Goals: By aligning the role’s mission and objectives with the broader organisational vision, it ensures cohesive progress towards common goals.

Enhanced Performance Management: With well-defined objectives and tasks, performance can be easily trackedand managed, facilitating continuous improvement and accountability.

Effective Communication: A structured role profile enhances communication within the team and with stakeholders, as everyone is clear about the role’s purpose and contributions.

Using the MOST format to craft role profiles can significantly enhance organisational efficiency and employee satisfaction. It ensures that everyone is aligned, motivated, and working towards common objectives with a clear understanding of their contributions and responsibilities.

Conclusion

Recruiting ‘tip of the spear’ operational leaders at all levels of management is a strategic imperative for organisations seeking to stay ahead in a competitive landscape. These leaders, whether junior, mid-level, or senior, are instrumental in driving innovation, executing strategy, and achieving transformative results. By identifying the right qualities, implementing targeted recruitment strategies, and ensuring effective onboarding, organisations can build a cadre of operational leaders who will lead them to new heights of success. Embrace the challenge of finding and nurturing these exceptional individuals, and your organisation will undoubtedly benefit from their expertise and vision.

About the Author

Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.

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Trevor Parker

78 % of Sales & Marketing Teams Don’t Collaborate

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78% of Sales & Marketing Teams Fail to Collaborate: A Call for Alignment

In a recent meeting that initially seemed poised to bridge the gap between sales and marketing strategies, I immersed myself in a discussion led by a seasoned marketing manager and her team, solely focused on marketing metrics and digital strategy. The objective? Finalising the quarter’s marketing budget, yet noticeably absent were the voices of our sales team. The business is outside FMCG and relies on a dedicated sales team. It requires customers to book a telephone appointment with sales specialists.

Throughout the meeting, conversations orbited around digital metrics: website traffic, engagement rates, SEO standings, and the fixation on keywords and search terms—critical elements for enhancing online visibility and bolstering brand awareness. Undoubtedly, these metrics are pivotal in today’s digital landscape, where businesses strive to capture consumer attention amidst a sea of online content.

However, what struck me was the singular fixation on these metrics to the exclusion of other critical aspects. As discussions progressed, I raised a fundamental query: where would the lion’s share of the budget be directed, assuming it would naturally align with our overarching goal of driving appointments for the sales team to convert to sales?

The unanimous response was unexpected: “Content creation and link building to drive more traffic.” While these strategies are undoubtedly crucial for building an online presence, the focus on traffic growth, without a specific plan for driving the “right” traffic, appeared to miss the core purpose of marketing within the business – to facilitate sales opportunities.

Intrigued by this emphasis, I delved deeper, probing how many sales were directly attributed to our previous quarter’s marketing efforts. Astonishingly, the team could not provide a definitive answer. This revelation underscored a concerning trend: amidst the pursuit of digital metrics, including SEO keyword rankings and search terms, the direct impact on revenue generation—the ultimate measure of marketing success—had been overlooked.

Further investigation revealed that some keywords and search terms targeted by our SEO efforts were no longer relevant to the current product offerings. Moreover, they differed from terms aligned with how our customers typically search for the firm’s products or services. This disconnect highlighted a critical oversight: while the marketing team and the agency they employed were striving to rank for specific keywords, those efforts could translate into something other than meaningful customer engagement or sales conversions.

What also struck me was that all the metrics and reports presented in the meeting had been created by the outsourced marketing agency, whose evaluations heavily leaned on the gospel of Google. It became evident that many of the agency’s conclusions led to recommendations for increased marketing spend and justified their success. Call me cynical, but aligning agency metrics with spending proposals raised questions about true ROI and strategic alignment with sales objectives.  

Statistics corroborate this disconnect. According to HubSpot, 40% of marketers identify proving the ROI of their marketing activities as their top challenge. Moreover, only 22% of businesses report alignment between their marketing and sales teams (Marketo). This lack of alignment can lead to disjointed strategies, where marketing efforts may not effectively support sales objectives.

A Practical Example

Let’s consider a practical example of a pay-per-click (PPC) campaign to illustrate how a minor tweak to the marketing team’s metrics could change the tone of the meeting.  

Suppose I am trying to determine how much money in pounds I need to spend to sell 100 units of my product. If we know the product demo-to-sale conversion rate is 20%, and we also have data on the click-through rate (CTR) and conversion rate from website visitors to demo sign-ups, we can calculate the necessary traffic and associated costs.

  1. Sales Target: 100 units
  2. Demo to Sale Conversion Rate: 20% (or 0.20)
  3. Number of Demos Required: To achieve 100 sales at a 20% conversion rate, we need 500 demos (100 units / 0.20).
  4. Visitor to Demo Conversion Rate: Suppose the average conversion rate from website visitor to demo sign-up is 5% (or 0.05).
  5. Number of Website Visitors Needed: To get 500 demos with a 5% conversion rate, we need 10,000 website visitors (500 demos / 0.05).
  6. Cost per Click (CPC): Suppose the average CPC in the industry is £1.
  7. Total Marketing Spend: To generate 10,000 website visitors, the required budget would be £10,000 (10,000 visitors * £1 per click).

By incorporating this calculation into planning, we shift the focus from abstract metrics like traffic growth to concrete metrics directly correlating with sales outcomes.  

This change provides clearer insights into how marketing spending drives revenue, enhancing strategic alignment and ensuring marketing efforts effectively support sales goals.

Moreover, the digital marketing mix encompasses various channels, including direct traffic, optimised content, social media, and other avenues. While I acknowledge that some sales likely stemmed from these channels, the team only had top-line traffic stats courtesy of Google. They lacked concrete data on how many sales directly drove by their specific efforts across these channels. This gap in understanding highlights the need for more precise tracking and analysis to ensure that every marketing pound spent contributes effectively to sales.

Case Study: An Example from Another Industry

Consider the case of a B2B software company that realised its marketing efforts were not translating into sales. By incorporating sales team feedback and shifting focus from pure traffic metrics to lead quality and sales conversions, they achieved a 30% increase in qualified leads and a 20% boost in sales within six months. This case underscores the universal importance of aligning marketing efforts with sales objectives.

Effective sales and marketing alignment is not just about shared objectives but also about collaborative strategy development. Research from SiriusDecisions highlights that tightly aligned organisations achieve 24% faster revenue growth and 27% faster profit growth over three years.

Moving forward, it is imperative for organisations to recalibrate their approach.  

This involves not only integrating sales considerations into marketing strategy discussions but also fostering a culture of collaboration where both teams work towards shared revenue goals.  Investment in training and technology integration, addressing the perception gap between sales and marketing functions, and prioritising measurable outcomes over vanity metrics are crucial steps towards achieving this alignment.

Conclusion

In conclusion, while digital metrics, including SEO and keyword rankings, are invaluable for tracking online performance, their true value lies in their ability to translate into tangible sales results. By bridging the gap between marketing metrics and sales realities, organisations can unlock untapped potential and drive sustainable growth in today’s competitive landscape.

Recommendation

If you are a Head of Sales, Sales Director, Managing Director, or an Interim CRO, and sales is a concern, sit in on your next marketing meeting.  The insight might just prove illuminating.

Sources

These sources provide the foundational statistics and insights used to highlight the disconnect between marketing metrics and sales realities, the importance of aligning marketing and sales teams, and the broader implications for business growth.

  1. HubSpot – Proving ROI Challenge
  2. Marketo – Alignment between Marketing and Sales Teams
  3. Ascend2 – Importance of Understanding Customer Journey
  4. SiriusDecisions – Impact of Aligned Organisations on Revenue Growth

About the Author

Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.

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Trevor Parker

The £84 billion Impact created through a Void in Leadership.

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A Void in Leadership is estimated to cost UK business £84 billion annually.

 

While recent headlines in the UK have been dominated by the new Government’s push to improve productivity, with ministers making high-profile statements, this is not a new phenomenon. Top HR leaders have long been grappling with low productivity, often exacerbated by voids in leadership, and have developed pragmatic strategies to address these gaps.

Despite the buzz around new policies and government initiatives, many businesses have struggled for years to mitigate productivity losses caused by leadership voids. This ongoing challenge highlights the need for the Government to draw inspiration from the approaches of successful business leaders and learn how to tackle productivity issues effectively.

The Financial Impact of Leadership Voids

 

Decreased Productivity: Leadership voids lead to significant productivity losses. Without effective leadership, teams lack direction, reducing efficiency and output. Research from the Institute of Leadership & Management suggests poor management costs UK businesses up to £84 billion annually. This figure includes losses from decreased productivity, poor decision-making, and lack of strategic direction.

Employee Morale and Engagement: A lack of leadership can lead to low employee morale and engagement. Employees may feel unsupported and uncertain about their roles, leading to increased turnover and absenteeism. The cost of replacing employees can be high, with estimates suggesting that replacing a manager can cost up to £30,000, factoring in recruitment costs, training, and lost productivity during the transition period.

Operational Disruptions: Leadership voids can disrupt daily operations. Decision-making processes slow down, strategic initiatives stall, and the organisation’s overall efficiency suffers. This can result in missed operational and financial opportunities, affecting the bottom line.

 

Quantifying the Costs

 
  • Lost Productivity: If a leadership void results in just a 2% drop in productivity for a business with an annual revenue of £10 million, the loss would be £200,000 annually.
  • Turnover Costs: High turnover rates due to low morale can significantly impact performance. If an organisation has to replace three managers in a year, the cost could be around £90,000 (£30,000 per manager).

 

Overall Impact

 

While exact figures can vary, the financial impact of leadership voids is substantial. For medium—to large businesses, this could easily translate into hundreds of thousands, if not millions, of pounds annually. Addressing leadership voids promptly through effective interim management can mitigate these losses and maintain organisational stability.

Understanding the Complexity of Bridging Leadership Voids

HR leaders understand that there is no simple, one-size-fits-all solution to bridging leadership voids. A comprehensive, adaptable, multi-layered approach is required to effectively address the unique challenges each organisation faces. Traditional recruitment firms often fall short in this regard, as they may not possess the specialised expertise needed to navigate the complexities of leadership gaps. Instead, a more nuanced approach is necessary—one that considers the specific needs of the business, the intricacies of the vacant role, and the strategic objectives of the organisation.

The NorthCo Approach to Tackling Leadership Voids

Since 2012, NorthCo has provided Operational Management solutions for businesses where people, specifically management, affect operational productivity and performance. NorthCo’s approach to addressing leadership voids is comprehensive and tailored to each business’s unique needs:

Headhunting Replacement Managers

NorthCo excels in headhunting skilled and effective managers who can seamlessly fit into the organisational structure and bring immediate value. By identifying candidates with the right experience and leadership qualities, NorthCo ensures that businesses quickly regain direction and momentum.

Interim Management Solutions

During turbulent trading periods or significant organisational changes, NorthCo provides interim management solutions. These interim leaders are equipped to maintain stability, drive performance, and guide the organisation through transitions, ensuring minimal disruption and sustained productivity.

Filling Temporary Skills Gaps

For major projects or when specific skills are temporarily unavailable, NorthCo sources professionals to fill these gaps. These individuals bring specialised expertise that ensures projects remain on track and operational goals are achieved without delay.

Operational Coaching for New Leaders

NorthCo offers operational coaching to new leaders, ensuring they are well-prepared to take on their roles effectively. This coaching focuses on enhancing leadership skills, strategic thinking, and team management, enabling new leaders to contribute positively from the outset.

Conclusion

The financial impact of leadership voids in UK businesses is significant, with estimated costs reaching £84 billion annually. However, this impact can be mitigated through swift and effective recruitment and interim management solutions. NorthCo’s proven track record in providing operational management solutions highlights the importance of addressing leadership voids promptly to maintain organisational stability, productivity, and performance. By sourcing the right people for the right roles, NorthCo helps businesses navigate challenges and achieve their operational goals.

About the Author

Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.

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Trevor Parker

Operational CEO Coaching, an alternative to Changing a CEO

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Could Operational CEO Coaching transform your existing CEO?

Introduction:

The decision to change a company’s CEO is a critical juncture that can significantly impact an organisation’s trajectory. Often, this decision arises from perceived leadership deficiencies, market challenges, or the need for fresh perspectives. However, an alternative approach gaining traction in the business world is the addition of Operational CEO Coaching to augment the management team’s capabilities. This article explores the significance of Operational CEO coaching as an alternative to CEO replacement and its potential to bring about positive organisational transformation.

Operational CEO Coaching

To clarify, when I refer to Operational CEO Coaching, I’m not referring to the typical “how does that make you feel” style of coaching. Instead, I’m talking about Operational Coaching, akin to what you’d experience in a sports team where seasoned advice rooted in extensive operational experience is readily shared and ideas are openly discussed.

The Traditional Approach to CEO Replacement:

In many organisations, the decision to replace a CEO is often made under duress. Whether due to declining financial performance, internal conflicts, or an inability to adapt to market dynamics, the incumbent CEO’s shortcomings can prompt the board to seek a new leader. However, this approach, while sometimes necessary, comes with inherent risks and challenges that can disrupt the organisation’s stability and growth.

One major challenge is the disruption caused by CEO turnover. 

Transitioning to a new CEO can lead to uncertainty, affecting employee morale, investor confidence, and stakeholder relationships. Moreover, finding a suitable replacement takes work and can be time-consuming and costly. Even with an extensive search process, there’s no guarantee that the new CEO will perfectly fit the organisation’s needs and culture.

The Emergence of Operational CEO Coaching:

Amidst the challenges of CEO turnover, many organisations are turning to Operational CEO coaching as an alternative or complementary approach. Operational CEO coaching involves the engagement of an experienced executive coach to work closely with the CEO, providing guidance, support, and feedback to enhance leadership effectiveness.

The rationale behind Operational CEO coaching lies in its ability to address the root causes of operational leadership deficiencies while allowing the incumbent CEO to remain in their role. Rather than immediately seeking a replacement, organisations invest in developing the existing leadership talent, recognising that leadership effectiveness can often be improved through targeted operational coaching and development.

Who makes a good Operational CEO Coach

In an Operational style of coaching, the coach plays a pivotal role. You need an operationally experienced coach who has walked the walk, someone who has a proven track record of success in operational roles, preferably at the executive level, an experienced Interim CEO, or Interim CRO would be a great option. This type of coach brings not just theoretical knowledge but practical insights gained from real-world experience. They understand the intricacies of running a business, navigating challenges, and driving operational excellence. A coach with this background can offer valuable guidance tailored to your specific industry and organisational context.

Conversely, you wouldn’t want a coach who lacks operational experience or who relies solely on textbook knowledge. While traditional coaching methods may have their place in certain scenarios, they might not be as effective when it comes to addressing the day-to-day operational challenges faced by CEOs. A coach who focuses primarily on emotional intelligence and introspection, without a solid grounding in operational know-how, may struggle to provide actionable advice that directly impacts business performance.

Benefits of Operational CEO Coaching:

Operational CEO coaching offers several benefits that make it an attractive option for organisations facing leadership challenges:

  • Personalised Development: Operational CEO coaching offers a unique personal growth and development opportunity. It provides tailored support to address the specific needs and challenges of the individual leader. Through one-on-one sessions, the Operational coach helps the leader identify blind spots, leverage strengths, and develop strategies for growth, inspiring them to reach their full potential. 
  • Enhanced Leadership Skills: Operational Coaching enables CEOs to develop various operational leadership skills, including specific operationally oriented skills, communication, strategic thinking, decision-making, and emotional intelligence. By honing these skills, CEOs can effectively lead their organisations through complex challenges.
  • Objective Feedback: One key benefit of CEO coaching is the provision of objective feedback. Unlike internal stakeholders with biases or vested interests, CEO coaches offer an impartial perspective, enabling CEOs to gain valuable insights into their leadership style and its impact on others.
  • Improved Performance: Through regular operational coaching sessions, CEOs can track their progress and measure the impact of their efforts. As they implement new strategies and behaviours, they can see tangible improvements in their performance and the performance of their organisations.
  • Sustainable Change: Unlike quick-fix solutions such as CEO replacement, CEO coaching focuses on sustainable, long-term change. By investing in the development of the existing leadership team, organisations build a strong foundation for continued success.

Case Studies:

Several high-profile companies have successfully leveraged CEO coaching to drive organisational change and improve performance:

  1. Google: Eric Schmidt, the former CEO of Google, famously hired Bill Campbell, the “Coach of Silicon Valley,” to provide coaching and mentorship. Schmidt credited Campbell with helping him navigate the challenges of leading a rapidly growing tech company.
  2. Microsoft: Satya Nadella, the CEO of Microsoft, has spoken openly about the impact of coaching on his leadership journey. Nadella attributes much of his success to the guidance he received from his coach, helping him transform Microsoft’s culture and drive innovation.
  3. General Electric: When Jack Welch took the helm at General Electric, he sought the guidance of a leadership coach to help him navigate the complexities of leading a large multinational corporation. Welch’s coach played a crucial role in shaping his leadership style and strategic vision.

Operational CEO Coaching isn’t the answer to every situation

It’s important to acknowledge that not every incumbent executive is open to being coached. Some may even be hostile to the idea, viewing it as a challenge to their authority or expertise. Additionally, there are those who might appear open to coaching initially, but when it comes down to it, they are equally closed off. Therefore, I’m not suggesting for one minute that an operational coach is a panacea for all leadership challenges. It’s possible that coaching may be a non-starter or ultimately fail to produce the desired results. However, by at least considering the option, making it available, and doing our best to provide support, the board demonstrates its commitment to doing the right thing for the executive and the organisation as a whole.

How might you approach Operational coaching with the Management Team?

When broaching the subject of operational coaching with your executive team, it’s crucial to approach it thoughtfully and positively, especially considering that not all executives are initially open to the idea. One effective approach is to start with a short operational review, commissioned independently. This review can be conducted by an executive who might potentially serve as the coach. Its purpose is to identify coaching opportunities, assess operational competence and structures, and determine whether coaching is a viable option.

By starting with this operational review, the topic of coaching is introduced in a non-threatening manner, focusing on the organisation’s objectives and the potential benefits for both the executives and the company as a whole. This approach allows for a more organic and constructive discussion around the role of coaching in achieving operational excellence and fostering leadership development within the executive team.

If the potential coach has performed the job well, they will have built credibility and established sound professional relationships with the executive team and the wider business, making an extension to the initial brief a natural next step. This extension could involve a deeper, ongoing coaching relationship aimed at addressing specific challenges and fostering continuous growth and improvement within the organisation.

And what if the Operational Coaching doesnt have the desired effect

Of course, if the coaching doesn’t work out and you ultimately decide to change the CEO, there are several upsides. Firstly, you have done the right thing by providing the CEO with support and the best chance of success. Secondly, the coach will have established solid relationships across the business, allowing them to effectively hold the fort until a new CEO is found. Additionally, the coach will have identified potential internal talent which might serve as a natural replacement for the CEO. Moreover, the coach will be in a better position to identify the skills and qualities the new CEO requires, helping to streamline the recruitment process and ensure a smoother transition.

Conclusion:

The decision to change a company’s CEO is undoubtedly significant, with far-reaching consequences for the organisation. However, before embarking on the CEO replacement path, it’s essential to consider alternative approaches such as operational CEO coaching. By investing in developing existing leadership talent, organisations not only mitigate the risks associated with CEO turnover but also foster a culture of continuous learning and improvement, instilling a sense of optimism and hope for the future.

Operational CEO coaching offers a personalised and sustainable solution to address leadership deficiencies, enhance performance, and drive organisational success. It is a proven method that can empower CEOs to unlock their full potential, lead confidently, and navigate the complexities of today’s business environment. In a world where effective leadership is more critical than ever, CEO coaching represents a valuable tool for organisations seeking to thrive in a rapidly evolving landscape.

Navigating turbulent Waters – The CEO Coach in Action

About the Author

Trevor is the Managing Partner of NorthCo, a fellow of the Institute of the Motor Industry and a member of the Institute of Interim Management. Trevor is a respected C-Suite leader, Chairman and professional Interim Leader. For over a decade, he has provided interim leadership solutions to private equity, venture capital, and asset-backed firms. Whether it’s to stabilise a business during a turbulent trading period, fill a temporary skills gap or support a management team to navigate challenging situations, Trevor’s wealth of experience and proven track record in delivering value creation and retention plans demonstrate his ability to lead and support operational management teams effectively. To find out more about his approach, explore his LinkedIn profile and read what others say about Trevor.