Trevor Parker

The 110% Myth and the Power of 100% of 20%

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The 110% Myth and the Power of 100% of 20%

Ah, the famous phrase we’ve all heard in the workplace, perhaps even uttered ourselves at some point: “I always give 110%!” It’s one of those statements that, while well-intentioned, is frankly a wee bit innacurate.  I whince a little, especially when it comes from the FD.

Now, I’m no mathematician, but I do know one thing for sure: you can’t give more than 100%. And in a normal “everyday” job, you probably don’t have 100% available in any case.

Let’s break this down. As humans, we have a lot on our plates. Life isn’t just one big task we can throw all our energy at. We’ve got families to care for, friends to laugh with, bodies to keep healthy, hobbies to indulge in, and yes, even the occasional need to daydream or skive off.

Given all these demands, how much of your energy do you realistically have left to devote to work? Let’s be generous and say you have 20% left. And while we’re at it, let’s add a bit of Pareto into the mix—chances are, that 20% is responsible for 80% of your most important outcomes anyway.

So, what’s the secret? It’s not about somehow wringing more than 100% out of yourself; it’s about giving 100% of that remaining 20%.

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 hours.

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.

Embracing Change: Future-Proofing Through Performance Metrics

However, while these counterarguments offer valid points, it may be futile for business leaders to resist the tide of change forever. The momentum behind a shorter workweek and more flexible working conditions is growing, and the writing is on the wall—change is coming whether we’re ready for it or not. Rather than standing in its way, perhaps it’s time for us to start preparing.

This is where HR comes into play. To better equip our organisations for this shift, we should focus on rethinking our performance metrics. Traditional metrics, which often emphasise hours worked over outcomes achieved, may no longer be fit for purpose. By developing new ways to measure productivity that align with the realities of modern work life, we can ensure that our management teams are better armed to undertake effective performance management.

Performance metrics that focus on outcomes, quality, and impact—rather than simply time spent at a desk—will be key in this new era. Encouraging employees to give 100% of their 20% requires us to understand and measure what truly matters. This approach not only supports well-being and sustainability but also aligns with the potential move towards a four-day workweek, making it easier for businesses to adapt without sacrificing productivity.

Wrapping Up: The 100% of 20% Mindset

So, the next time someone proudly proclaims they’re giving 110%, you can smile and nod, knowing the truth. It’s not about pushing beyond your limits. It’s about respecting them, and then excelling within them. As a leader, your job isn’t to squeeze every last drop of energy from your team, but to help them use their energy wisely.

In the end, giving 100% of your 20% is more than enough. It’s smart, sustainable, and it just might be the key to finding that elusive work-life balance everyone’s always talking about. And who knows? With a four-day working week potentially on the horizon, we might all find that giving our best in less time leads to even greater success.

So, here’s to a weekend where you give 100% to whatever percentage of life you’re focused on—whether that’s relaxing, spending time with loved ones, or just doing absolutely nothing at all. Cheers to that!

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.

Trevor Parker

Systems Over Willpower

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Systems Over Willpower

Why Personal Leadership is All About Systems and Routines—Not Just Willpower

 

We often think of leadership as something we do for others—guiding a team, making decisions, setting a vision. But real leadership starts with how we lead ourselves. As Royal Marines, this is 101 of being an elite performer. It’s about self-discipline, self-awareness, and managing our energy, time, and emotions. This idea really hit home for me recently after I was knocked down by an illness that left me feeling drained and out of sync.

Looking to get back on track and encouraged by my wife to take supplements, something I have never been good at, I started taking AG1, a daily greens supplement, hoping it would give me the boost I needed.  What it made me appreciate is that Systems over Willpower is the way ahead.

For the avoidance of doubt, I am not associated or sponsored by AG1 (As if) and I don’t get any commission :). 

As I settled into this new routine, I found myself thinking about the bigger picture—how personal leadership is deeply tied to the systems and routines we create for ourselves. The more I thought about it, the clearer it became: no matter how determined you are, relying on willpower alone is a risky bet. If you really want to succeed, you need to build systems that make your desired actions almost automatic.

Let’s dive into why systems and routines are the secret sauce of personal leadership, and why willpower just doesn’t cut it. I’ll also share how my simple routine made me rethink how we can embed good habits into our lives with minimal effort.

The Problem with Willpower

We all admire those people who seem to have endless willpower—waking up at 5 AM to work out, sticking to a strict diet, and powering through tough projects. I’ve been there too, especially after my illness, trying to push through with sheer grit. But here’s the truth: willpower is like a battery. It drains as you use it, and eventually, it runs out.

Psychologists call this “ego depletion,” and it’s a real thing. Studies have shown that after we exert self-control in one area, our ability to do so in another area diminishes. For example, if you spend all morning resisting the urge to check your phone during a meeting, you might find it harder to stick to your diet later in the day.

Here’s a wild stat: A study found that judges are more likely to give favourable rulings earlier in the day, with the odds dropping by up to 20% later on. That’s decision fatigue in action—a clear sign that even our best decision-makers can’t rely on willpower alone.

So, what’s the alternative? Instead of relying on willpower, we should focus on building systems that make the right actions easy and automatic. This is something I’ve seen firsthand with my experience adopting a new morning routine.

How Systems and Routines Make Life Easier

Think of a system as a game plan—a structured process designed to help you reach a specific goal. Routines are the repeatable actions you plug into that system, and over time, they become habits. The beauty of a good system is that it takes the guesswork out of your day. You don’t have to constantly make decisions or muster up the motivation to do what you know you should do. The system does it for you.

For me, the simplicity of my new routine was a game-changer. Every morning, I follow the same steps, and it’s become as automatic as brushing my teeth. The simplicity of it got me thinking: What if all our important routines could be this simple?

Here’s why I believe systems and routines beat willpower every time:

  • Consistency Over Motivation: Let’s face it, motivation is fickle. Some days you’re pumped; other days, you’re not. But when you have a system in place, like a set bedtime routine that includes 20 minutes of reading, you remove the need for daily decision-making. The routine just happens, whether you feel like it or not. My new morning routine didn’t require me to psych myself up—it just became part of my day.

  • No More Decision Fatigue: We make tons of decisions every day, and it’s exhausting. By the end of the day, even choosing what to have for dinner can feel overwhelming. Systems and routines cut down on these decisions. For example, planning your day the night before means you don’t waste energy figuring out what to do in the morning. My morning routine was one less thing I had to think about, leaving me more mental space for important tasks.

  • Predictable Results: Systems are designed to get you consistent results. When you have a routine, you can measure how well it’s working and make tweaks if needed. I quickly saw improvements in how I felt physically, and that spilled over into a more productive and disciplined day.

  • Resilience When Life Gets Tough: Life throws curveballs, and even the most disciplined among us have off days. But a solid system can keep you on track, even when you’re not feeling your best. For instance, having an exercise buddy can help you stick to your workout routine on days when you’d rather skip it. Even on mornings when I was rushing out the door, the routine was so simple that I could stick to it without thinking twice.

A Perfect Example of a Systemised Routine

The problem with most self-improvement efforts is consistency. People start strong but often fall off the wagon as life gets busy or their motivation dips.

The solution is to make the routine incredibly simple:

  1. Prepare: Set up everything you need the night before.
  2. Execute: Follow the routine without overthinking it.
  3. Automate: Make it so simple that it becomes a habit almost by default.

This simplicity means there’s no excuse not to stick with it. You’re not measuring out multiple ingredients or cleaning up a blender. The routine is so easy that it becomes a habit almost by default. For me, this routine has been a lifesaver, especially on hectic mornings. It’s one less decision to make, one less thing to worry about.

Bringing Systems into Your Leadership Practice

If you want to be a better leader, start by leading yourself well. Here’s how you can start building systems and routines into your daily life:

  • Identify Key Behaviours: What actions are crucial for your success? Maybe it’s exercising, reading, or planning your day.
  • Design a Simple System: Create a routine that makes these behaviours easy. For instance, if you want to work out more, lay out your gym clothes the night before and put a workout on your calendar.
  • Start Small: Don’t try to overhaul your life all at once. Begin with one small routine and build from there. Start with 10 minutes of meditation instead of an hour.
  • Check and Tweak: Keep an eye on your routines to see if they’re working. Don’t be afraid to adjust if something isn’t quite right.
  • Use Tech to Help: Habit trackers, reminders, and apps can be great tools to keep you on track without relying on willpower.

Wrapping It Up: Systems Are the Key to Personal Leadership

Personal leadership isn’t just about wanting to succeed—it’s about setting up the right systems and routines that make success almost automatic. My experience with AG1 reminded me of just how powerful a simple, well-designed routine can be. By recognising the limits of willpower and leaning into systems, you can make sure you’re consistently at your best.

When you embed these routines into your daily life, you’ll find that success comes more naturally. For me, this journey has been a reminder that the best leaders are the ones who start by leading themselves, not with sheer determination, but with smart systems that make the right actions easy.

You can search AG1 on google – see, no link. 

For Those That Want the Research

If you’re the type who likes to dig into the science behind these ideas, here are a couple of key studies that back up what I’ve been talking about:

  1. Ego Depletion and Willpower:

    • A study by Baumeister et al. (1998) on ego depletion found that participants who used self-control in one task had less willpower available for subsequent tasks. In one experiment, those who resisted eating cookies gave up on solving puzzles 50% faster than those who hadn’t exerted willpower earlier.

  2. Decision Fatigue:

    • Another study by Danziger, Levav, & Avnaim-Pesso (2011) showed that judges are more likely to give favourable rulings earlier in the day. As the day goes on and decision fatigue sets in, the percentage of favourable rulings drops by up to 20%.

These studies highlight that our mental resources are limited, and relying solely on willpower isn’t sustainable. That’s why creating systems and routines is so important—they help us conserve our mental energy for the things that really matter.

 

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.

Trevor Parker

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

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

In the corporate world, the phrase “tip of the spear” is a powerful metaphor derived from military terminology. It describes the front line of a military operation, where those involved face the most risk and bear the responsibility for achieving critical objectives. In business, it represents the leading edge of a company’s strategic efforts—those pivotal roles and initiatives that are essential for success and subject to the most intense scrutiny.

For HR leaders, understanding and cultivating the “tip of the spear” within their organisation is essential to driving strategic success, building a resilient workforce, and navigating the complexities of today’s business environment.

The HR Role in Developing ‘Tip of the Spear’ Leaders

Recruiting, developing, and retaining ‘tip of the spear’ leaders is crucial for any organisation striving to maintain a competitive edge and achieve impactful results. These individuals are not only the pioneers in operational execution but also the catalysts for innovation and transformation across the organisation. HR professionals play a pivotal role in identifying and nurturing these leaders, ensuring they are equipped with the skills, mindset, and resources necessary to drive the organisation forward.

At NorthCo, we specialise in recruiting operational management leaders, those at “the tip of the spear.” However, the responsibility of fostering this mindset extends beyond just hiring; it involves creating an organisational culture that promotes and supports these high-impact roles.

Instilling a “Tip of the Spear” Mindset in HR Strategy

For HR leaders, the “tip of the spear” mindset transcends specific actions or strategies—it is a state of mind. This approach involves cultivating leaders who are proactive, strategic, and capable of executing critical tasks with precision. These leaders are adept at anticipating market trends, seizing opportunities, and navigating the complexities of the business landscape.

In short, they are experts in “getting things done,” and HR’s role is to ensure these leaders are strategically placed throughout the organisation, at every level.

The Importance of ‘Tip of the Spear’ Leaders Across All Levels

A common misconception is that ‘tip of the spear’ roles are exclusive to senior executives or top-tier management. In reality, these qualities are vital 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 organisational hierarchy ensures agility, innovation, and resilience from the ground up. HR must ensure that leadership development programmes are tailored to cultivate these characteristics across the entire workforce.

Junior Management: The Emerging Leaders

At the junior management level, ‘tip of the spear’ individuals are those who consistently push boundaries and lead their teams to exceed expectations. HR leaders should focus on:

  • Initiating Improvements: Encourage junior managers to proactively identify inefficiencies and propose solutions, fostering a culture of continuous improvement.
  • Motivating and Mentoring: Support the development of leadership skills in junior managers, helping them inspire their teams and drive high performance.
  • Operational Excellence: Ensure that these leaders are equipped with the tactical expertise to maintain smooth operations and swiftly address challenges.

Mid-Level Management: The Strategic Executors

Mid-level managers bridge strategic goals with operational execution, making their roles crucial. HR leaders should prioritise:

  • Driving Strategic Initiatives: Provide mid-level managers with the tools and support to translate high-level strategies into actionable plans, ensuring alignment with organisational objectives.
  • Fostering Innovation: Cultivate a culture of creativity and experimentation within this group, recognising and rewarding innovative ideas that contribute to growth.
  • Enhancing Cross-Functional Collaboration: Facilitate opportunities for collaboration across departments, ensuring cohesive and unified efforts towards common goals.

Senior Management: The Visionary Strategists

Senior management ‘tip of the spear’ leaders shape the company’s direction and inspire the entire organisation. HR’s role includes:

  • Setting the Vision: Assist senior leaders in defining and communicating the company’s long-term vision, ensuring alignment across all levels.
  • Leading Transformational Change: Equip these leaders with the tools and resources to spearhead initiatives that drive significant growth and innovation.
  • Building High-Performing Cultures: Foster a culture of excellence, accountability, and continuous improvement, ensuring that senior leaders can motivate and empower employees.

Crafting Role Profiles to Support ‘Tip of the Spear’ Leadership

To ensure clarity and alignment, HR should utilise a structured approach to role profiles. The MOST format—comprising Mission, Objectives, Strategy, and Tasks—provides a comprehensive framework to define roles, set actionable goals, and enhance organisational productivity.

  • Mission: Clearly define the core purpose of each role, ensuring it aligns with the organisation’s vision and values.
  • Objectives: Set specific, measurable goals that contribute to broader organisational success, using SMART criteria.
  • Strategy: Outline the plan and approach to achieve these objectives, ensuring a coherent and practical pathway.
  • Tasks: Define the specific actions required to execute the strategy, providing a clear roadmap for daily responsibilities.

Conclusion: The Strategic Imperative for HR Leaders

For HR professionals, the recruitment and development of ‘tip of the spear’ leaders at all levels is not just a responsibility but a strategic imperative. These leaders are instrumental in driving innovation, executing strategies, and achieving transformative results. By focusing on identifying the right qualities, implementing targeted development programmes, and ensuring effective onboarding, HR can build a cadre of operational leaders who will propel the organisation to new heights of success.

Embrace the challenge of cultivating these exceptional individuals, and your organisation will benefit from their expertise, vision, and leadership.

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.

Trevor Parker

78 % of Sales & Marketing Teams Fail to Collaborate: A Strategic Imperative for HR Leaders

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78% of Sales & Marketing Teams Fail to Collaborate: A Strategic Imperative for HR

As a senior HR professional, you understand the intricate dynamics that drive organisational success. The synergy between teams is paramount, and nowhere is this more crucial than in the alignment between sales and marketing. This alignment, or lack thereof, can significantly impact business performance, employee morale, and overall strategic objectives.

In a recent scenario, I attended a meeting that seemed poised to bridge the gap between sales and marketing strategies. A seasoned marketing manager and her team led the discussion, focusing on marketing metrics and digital strategy. The objective was to finalise the quarter’s marketing budget, yet noticeably absent were the voices of our sales team. This absence underscored a critical issue: the disconnect between marketing activities and sales outcomes.

The Metrics Conundrum: A Symptom of Misalignment

Throughout the meeting, the conversation revolved around digital metrics—website traffic, engagement rates, SEO standings, and keyword rankings. These are undeniably crucial in today’s digital landscape, where businesses strive to capture consumer attention amidst a sea of online content. However, what became apparent was the singular focus on these metrics to the exclusion of other vital aspects. When I inquired about the budget allocation and its alignment with our overarching goal of driving sales appointments, the response was revealing: the lion’s share would be directed towards content creation and link building.

While these strategies are essential for building an online presence, the emphasis on traffic growth without a clear plan for attracting the “right” traffic missed the core purpose of marketing—to facilitate sales opportunities. This disconnect was further highlighted when the team could not definitively attribute sales to their previous quarter’s marketing efforts. This lack of clarity is symptomatic of a broader issue that HR leaders must address: the need for alignment between marketing metrics and sales realities.

Why HR Should Care About Sales and Marketing Alignment

As HR leaders, our role extends beyond talent management; we are stewards of organisational culture and performance. When sales and marketing teams operate in silos, it creates a fragmented organisational culture that can lead to disjointed strategies and missed opportunities. This misalignment affects not only the bottom line but also employee engagement and morale.

The lack of alignment between sales and marketing is not just a departmental issue; it’s an organisational challenge. Research from Marketo shows that only 22% of businesses report alignment between their marketing and sales teams. This misalignment can lead to conflicting priorities, where marketing efforts do not effectively support sales objectives, ultimately impacting revenue growth.

A Practical Example: Bridging the Gap

Let’s consider a practical example of how a minor shift in focus could change the tone of a marketing meeting. Suppose the objective is to determine the budget needed to sell 100 units of a product. By understanding the demo-to-sale conversion rate, click-through rate (CTR), and conversion rate from website visitors to demo sign-ups, we can calculate the necessary traffic and associated costs.

This approach shifts the focus from abstract metrics like traffic growth to concrete metrics directly correlating with sales outcomes. By incorporating this calculation into planning, marketing efforts become more strategically aligned with sales goals, ensuring that every pound spent on marketing drives revenue.

The HR Leader’s Role in Fostering Alignment

As HR leaders, we play a crucial role in fostering a culture of collaboration between sales and marketing teams. This involves several key actions:

Encouraging Cross-Functional Collaboration: HR can facilitate regular joint meetings between sales and marketing teams, ensuring that both sides have a voice in strategic discussions.

Investing in Training and Development: Providing training that focuses on understanding the customer journey, data analytics, and the importance of alignment can empower both teams to work towards shared objectives.

Promoting a Data-Driven Culture: HR can champion the use of data analytics to track the effectiveness of marketing efforts in driving sales, ensuring that decisions are based on tangible outcomes rather than vanity metrics.

Aligning Incentives: Consider aligning the incentives of sales and marketing teams to reinforce the importance of collaboration. When both teams are rewarded based on shared success metrics, the motivation to work together increases.

Case Study: The Impact of Alignment

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 example highlights the universal importance of aligning marketing efforts with sales objectives, a lesson that HR leaders can help embed across the organisation.

Conclusion: A Call to Action for HR Leaders

In conclusion, the alignment between sales and marketing is not just a tactical necessity; it is a strategic imperative that HR leaders must champion. By fostering collaboration, promoting a data-driven approach, and aligning incentives, HR can play a pivotal role in bridging the gap between these critical functions. This, in turn, drives sustainable growth and enhances organisational performance.

Recommendation for HR Leaders

If you are a Head of HR or a senior HR leader, consider attending your next marketing meeting. Your presence could provide valuable insights into how well these teams are aligned and where there may be opportunities to enhance collaboration and drive better business outcomes. By doing so, you position HR as a key player in the organisation’s strategic success.

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.

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.

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 replace a CEO is one of the most critical a company can make, with significant implications for its trajectory. For senior HR professionals and Private Equity (PE) portfolio managers, this decision often stems from perceived leadership gaps, market challenges, or the need for fresh perspectives. However, an alternative gaining traction is Operational CEO Coaching, which could transform rather than replace an existing CEO. This article explores the potential of Operational CEO Coaching as a powerful tool for both HR and PE professionals to consider when faced with the challenge of enhancing leadership without disrupting organisational stability.

Operational CEO Coaching: A Practical Approach

When discussing Operational CEO Coaching, it’s essential to distinguish it from traditional coaching. This isn’t about the softer, introspective aspects of leadership; instead, it’s akin to the coaching found in high-performing sports teams. Here, advice is grounded in real-world operational experience, with the coach actively engaging in strategic discussions and offering pragmatic solutions.

The Traditional Approach to CEO Replacement:

In many companies, replacing a CEO is often viewed as the go-to solution when leadership is seen as lacking. Be it due to declining financial performance, internal conflicts, or a failure to adapt to market changes, the instinct is to bring in someone new. However, this approach is fraught with risks, particularly for organisations under PE ownership, where stability and growth are paramount.

CEO turnover can cause significant disruption. For HR professionals, this can mean managing a demoralised workforce, while PE managers might face concerns from investors and stakeholders. The recruitment process itself is costly, time-consuming, and there’s no guarantee that the new CEO will align perfectly with the company’s culture and strategic needs. The potential downsides are clear: instability, lost momentum, and the financial burden of a lengthy search.

The Emergence of Operational CEO Coaching:

Recognising these challenges, more organisations are turning to Operational CEO Coaching as an alternative or complement to CEO replacement. This approach involves engaging an experienced executive coach to work closely with the CEO, enhancing their operational effectiveness and leadership capabilities.

The logic is straightforward: instead of replacing the CEO at the first sign of trouble, why not invest in developing the leadership already in place? Operational coaching targets the specific areas where a CEO may be struggling, whether it’s strategic decision-making, communication, or operational execution. For HR professionals, this can mean retaining talent while enhancing leadership skills. For PE managers, it’s about protecting the investment and driving long-term value creation without the disruptions of a leadership change.

What Makes a Good Operational CEO Coach?

The role of an Operational CEO Coach is pivotal, and choosing the right person is crucial. Ideally, the coach should be someone with extensive experience in operational roles, preferably at the executive level—think along the lines of an Interim CEO or Chief Restructuring Officer (CRO). This individual brings not just theoretical knowledge, but practical insights gained from navigating real-world challenges. They understand the intricacies of running a business and can provide advice tailored to the organisation’s specific context.

Conversely, a coach lacking operational experience, or who relies heavily on textbook methods, might not be effective. For both HR and PE professionals, it’s important to ensure that the coach has a solid grounding in operational realities and can deliver actionable insights that directly impact business performance.

Benefits of Operational CEO Coaching:

Operational CEO Coaching offers several compelling benefits for organisations facing leadership challenges:

Personalised Development: This approach allows for tailored support that addresses the CEO’s specific challenges. Through one-on-one sessions, the coach helps the CEO identify blind spots, leverage strengths, and develop strategies for growth.

Enhanced Leadership Skills: By focusing on operationally oriented skills, CEOs can refine their strategic thinking, decision-making, and communication, equipping them to lead through complex challenges effectively.

Objective Feedback: Unlike internal stakeholders, who may have biases or vested interests, an operational coach provides impartial feedback, offering valuable insights into the CEO’s leadership style and its impact.

Improved Performance: Regular coaching sessions enable the CEO to track progress and implement new strategies, leading to tangible improvements in both personal performance and organisational outcomes.

Sustainable Change: Unlike the short-term fix of CEO replacement, coaching fosters long-term leadership development, helping to build a robust foundation for future success.

Case Studies:

High-profile examples underscore the effectiveness of CEO coaching:

Google: Former CEO Eric Schmidt credited his coach, Bill Campbell, with helping him navigate the challenges of leading a rapidly growing tech company.

Microsoft: Satya Nadella, CEO of Microsoft, has highlighted the transformative impact of coaching on his leadership journey, which played a crucial role in revitalising the company’s culture and driving innovation.

General Electric: Jack Welch sought the guidance of a leadership coach to navigate the complexities of leading GE, which significantly influenced his leadership style and strategic vision.

Operational CEO Coaching Isn’t a Cure-All:

It’s important to recognise that not every CEO is open to coaching, and not every situation will benefit from it. Some executives may resist, viewing coaching as a challenge to their authority. For HR and PE professionals, it’s crucial to gauge the CEO’s openness to development and be prepared for the possibility that coaching might not yield the desired results.

Approaching Operational Coaching with the Management Team:

When introducing the idea of operational coaching, it’s essential to approach it thoughtfully. A useful strategy is to start with a short, independent operational review conducted by the potential coach. This review assesses the CEO’s operational competence and identifies areas for improvement, providing a non-threatening entry point for the coaching discussion.

If the review is well-received, it can lead to a more extended coaching engagement. For HR professionals, this means creating a supportive environment for leadership development. For PE managers, it’s about aligning the executive team with the broader goals of the portfolio.

What If Operational Coaching Doesn’t Work?

If coaching doesn’t lead to the desired outcomes and a CEO change becomes necessary, there are still advantages. The coach’s established relationships within the organisation can ensure continuity, and they may have identified potential internal candidates or defined the ideal profile for the next CEO, streamlining the transition process.

Conclusion:

The decision to replace a CEO is monumental, with significant implications for the entire organisation. Before pursuing this path, it’s worth considering Operational CEO Coaching as a viable alternative. For HR professionals, this approach can enhance leadership without losing valuable talent. For PE portfolio managers, it’s a strategy that supports long-term value creation while mitigating the risks associated with CEO turnover.

Operational CEO Coaching represents a personalised and sustainable solution that can transform existing leadership, driving organisational success and fostering a culture of continuous improvement. In today’s complex business landscape, where effective leadership is more critical than ever, investing in the development of your current CEO could be the key to unlocking their full potential and ensuring the organisation thrives.

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.

Trevor Parker

Navigating Turbulent Waters – The CEO Coach in Action

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The CEO Coach in Action

Making the argument for Portfolio Managers to employ the services of a CEO Coach before management teams begin to struggle under the weight of economic headwinds.

Managing a portfolio of investments is a formidable task. The ever-changing economic trading conditions are introducing a growing number of businesses that are not aligning with the original investment thesis, thereby amplifying the complexity of the portfolio manager’s role.

It is likely, the trading landscape has changed since your original investment thesis.

Due to economic conditions, the trading landscape when you crafted your original investment thesis may have changed. You likely built some resilience, but conditions may have diverged significantly from those prevalent when you crafted that initial investment thesis, posing new challenges to your trading strategies. 

Amidst wildly differing trading conditions, the management team you backed likely had a solid track record of running the business during relatively stable times. However, they may not have the necessary experience running that business in adverse trading conditions. 

Adverse trading conditions present an opportunity for growth and learning, as the style and skills required of a leader must evolve accordingly. It’s not uncommon for an investment firm to select a CEO who appears to be a perfect fit based on the prevailing conditions at the time, only to find them struggling to adapt when faced with a dramatically different trading landscape. 

Management and Leadership adaptability.

I often speak about the art of adaptability of leadership style and adopting and appropriate leadership style. And the ability for leaders to demonstrate adapatability of leadership style is perhaps more important during tough economic conditions. If a management team struggles during a downturn, it doesn’t necessarily follow that the management team is inherently incapable; instead, it underscores the necessity for adaptability.

Leaders who lack experience in turbulent times can still thrive with the right support. Recognising the need for this support early on is not just important; it’s empowering. It enables proactive measures rather than waiting for the situation to worsen. Ultimately, a leader’s ability to adapt and seek appropriate support in the face of changing trading conditions can be the key to success.

A job for the in-house value creation team. 

A report by McKinsey & Company pointed out that private equity firms with dedicated value-creation teams (teams that work exclusively on the companies in the portfolio and not on sourcing, due diligence, and transactions) did not manage to outperform peers by a significant margin during regular cycles. According to the article, the return differences were only slightly improved leading up to 2008 and even more negligible from 2014 to 2019.

But the report goes on to say that these teams did seem to add real value during a recession. McKinsey found that firms with value-creation teams “meaningfully outpaced the others, achieving a full five percentage points more in IRR (23 percent) than firms without portfolio-operating groups (18 percent).”

But we don’t have an internal value creation team!

Introducing the CEO Coach, a seasoned coaching advisor for your CEO and senior management team. The CEO Coach serves as a beacon of guidance, helping these leaders navigate through turbulent times and steer the ship towards calmer waters. 

A CEO Coach is a seasoned professional who works closely with the CEO and other top executives to enhance their leadership capabilities and help them navigate the multifaceted landscape of running a private equity-backed company. Their primary focus is supporting operational improvements aligned with the value creation plan, especially when turbulent times threaten to disrupt the status quo.

What is the difference between a CEO coach and a Non-Executive Chairman?

The roles of a Non-executive Chairman and a CEO Coach are distinct yet complementary, each contributing unique perspectives to the leadership landscape. A Non-executive Chairman, often a member of a company’s board of directors, holds a governance-focused position, providing oversight, strategic guidance, and ensuring effective board functioning. Their role is rooted in a broader perspective on the company’s direction and shareholder value. On the other hand, a CEO Coach, while also concerned with strategy, operates at an individual level, working closely with the Chief Executive Officer, and often the executive team. A Coach is akin to a mentor, offering personalised guidance to the CEO, helping them navigate challenges, enhance leadership skills, and optimise their decision-making. While the Non-executive Chairman contributes to the overall governance and strategic vision, the Coach nurtures the personal and professional growth of the CEO, fostering a symbiotic relationship that can significantly benefit the organisation.

Operational Excellence and Value Plan Creation

A critical aspect of a CEO coach’s role is assisting management teams in executing the value plan crafted by the private equity firm. This plan outlines the strategies and objectives aimed at enhancing the company’s value during the investment period. Operational excellence is at the core of this process, as it involves improving the company’s efficiency, reducing costs, and maximizing profitability.

  1. Operational Assessment: The coach often begins with a comprehensive operational assessment. This involves identifying areas of improvement, assessing the current processes, and understanding the company’s strengths and weaknesses.
  2. Strategic Alignment: To create and execute an effective value plan, the coach helps align the management team’s goals with the private equity firm’s expectations. This alignment is crucial in turbulent times when the company must adapt swiftly to changing market conditions.
  3. Change Management: Operational improvement often involves significant processes, culture, and structure changes. A coach assists in managing these changes, ensuring they are implemented smoothly and efficiently.

Turbulent Times and Crisis Management

Turbulent times, such as economic downturns or unexpected market disruptions, can throw even the best-laid plans into disarray. This is when the guidance of a CEO coach becomes especially critical.

  1. Adaptability: In a crisis, adaptability is key. A CEO coach helps the management team adjust their strategies, make tough decisions, and focus on the long-term goals despite the immediate challenges.
  2. Stakeholder Communication: Effective communication is vital during turbulent times. A CEO coach can guide communication with employees, investors, and other stakeholders to maintain trust and confidence.
  3. Risk Mitigation: To weather a storm successfully, it’s important to identify and mitigate risks. The CEO coach works with the management team to assess and manage risks effectively.
  4. Mental Resilience: Leadership can be lonely, especially during a crisis. A CEO coach can provide emotional support and help the CEO and management team develop mental resilience.

Case Study: The CEO Coach in Action

Consider a hypothetical scenario in which a private equity-backed company in the retail sector faces a turbulent market disrupted by rapid changes in consumer behaviour. The CEO coach would play a pivotal role:

  • Conducting a thorough assessment of the company’s operations, identifying areas for improvement, and aligning strategies with the value plan.
  • Assisting the management team in adjusting the value plan to adapt to the changing market conditions, possibly by reallocating resources or entering new market segments.
  • Guiding communication to stakeholders, ensuring that employees remain motivated and investors stay informed.
  • Helping the CEO and management team manage the stress and anxiety of navigating a turbulent market.

Conclusion

A CEO coach is a trusted advisor and guide for management teams. Their expertise in operational improvement, crisis management, and leadership development can be a game-changer during turbulent times. By working closely with CEOs and their teams, CEO coaches help ensure the successful execution of the value plan and create a path to sustainable growth, even in the face of uncertainty. As private equity continues to be a driving force in the business world, the role of the CEO coach remains as critical as ever in supporting private equity-backed companies in achieving their 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.

Trevor Parker

Leadership of an Interim CRO

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Navigating Turbulent Waters: The Role of an Interim CRO

Let’s face it—times are tough. More and more companies are facing financial distress, operational inefficiencies, or other challenges threatening their viability. Organisations may turn to an Interim CRO during such tumultuous times to steer them through troubled waters, make tough decisions, and catalyse rapid change. These seasoned professionals bring unique skills, helping companies stabilise quickly, restore order, and pave the way for sustained growth.

What is an Interim CRO – Chief Restructuring Officer?

An Interim CRO is a high-level executive appointed by a company’s management or board of directors to lead the financial and operational restructuring efforts during periods of distress or crisis. The primary goal of an Interim CRO is to restore the company’s financial health, enhance operational efficiency, and ultimately guide it towards a sustainable and prosperous future.  

The Role of an Interim CRO:

Interim CROs are appointed with a specific mandate: to bring about swift and effective change in organisations facing financial or operational crises. Unlike traditional leadership roles, CROs operate with a sense of urgency, understanding that time is of the essence when a company is on the brink. Their primary objectives include :

  • Cleaning up the existing business.
  • Right-sizing.
  • Restructuring a management team.
  • Returning to fundamental business principles.
  • Establishing a solid platform for future growth.
  • Holding the fort and sourcing new management.

Making Tough Decisions:

One of the hallmark traits of Interim CROs is their ability to make tough decisions swiftly. Whether it involves restructuring debt, streamlining operations, or cutting non-essential costs, these leaders understand that decisive action is crucial for stabilising the ship. By identifying and addressing the root causes of the organisation’s challenges, they create a foundation for sustainable recovery.

An Interim CRO will Get Back to Basics:

When organisations face turmoil, it’s often a result of losing sight of core business principles. Interim CROs focus on getting back to basics, revisiting the fundamentals that may have been neglected. This could involve redefining the company’s mission and vision, reevaluating product or service offerings, and reaffirming commitment to customer satisfaction. CROs lay the groundwork for a more resilient and adaptive organisation by emphasising fundamental principles.

Building a Platform for Growth:

Stability is not the end goal; it’s the stepping stone to growth. Interim CROs understand that their role extends beyond crisis management. They work to create a strategic roadmap that positions the organisation for long-term success. This may involve identifying new market opportunities, investing in innovation, or fostering a culture of continuous improvement. Through strategic planning and execution, CROs set the stage for sustainable growth.

Navigating Internal and External Complications:

The challenges faced by Interim CROs are not limited to internal organisational issues. External factors such as economic downturns, regulatory changes, or global crises can further complicate the restructuring process. Successful CROs demonstrate agility and resilience, adapting their strategies to navigate internal and external complexities. Their ability to anticipate and respond to these challenges is instrumental in ensuring the organisation’s survival and future prosperity.

Key Responsibilities of a Chief Restructuring Officer CRO:

Financial Diagnosis: The CRO begins by comprehensively analysing the company’s financial situation. This entails reviewing cash flows, financial statements, debt obligations, and other critical financial data. This assessment helps the CRO identify the root causes of the distress and formulate a recovery plan.

Developing a Restructuring Strategy: Based on the financial diagnosis, the CRO works alongside the company’s leadership to develop a restructuring strategy. This strategy often includes debt renegotiation, asset sales, cost reduction measures, and revenue enhancement initiatives.

Stakeholder Communication: Effective communication is a cornerstone of the CRO’s role. They engage with various stakeholders, including creditors, employees, customers, and investors, to inform them about the restructuring process, address concerns, and maintain trust.

Operational Improvement: Besides financial aspects, a CRO optimises the company’s operations. This may involve streamlining processes, identifying inefficiencies, and implementing changes to improve overall efficiency.

Legal Compliance: CROs ensure the restructuring process meets all legal and regulatory requirements. This includes insolvency proceedings, if necessary, and ensuring that the company complies with its obligations to creditors and other stakeholders.

Negotiation and Mediation: CROs play a crucial role in negotiating with creditors, suppliers, and other stakeholders to reach agreements that are beneficial to the company. They may also mediate disputes and find common ground among conflicting interests.

Change Management: Managing the organisation through change is integral to the CRO’s role. They must lead the company’s workforce through difficult transitions, maintain employee morale, and ensure that the team remains focused on the restructuring objectives.

Measuring Progress: CROs continuously monitor and assess the progress of the restructuring efforts. They track key performance indicators, financial metrics, and milestones to ensure the company is moving in the right direction.

The Benefits of Appointing a CRO:

Expertise: CROs typically bring a wealth of experience in handling distressed situations, making them well-equipped to navigate complex financial challenges.

Impartiality: CROs can offer an objective perspective, unburdened by existing relationships or biases within the organisation.

Efficiency: Their focused attention on restructuring allows the company’s existing management to concentrate on day-to-day operations.

Crisis Management: CROs help manage the company through a crisis, mitigating risks and preventing further deterioration.

Cost-Effective: In the long run, the appointment of a CRO can lead to cost savings by avoiding expensive mistakes and streamlining operations.

Conclusion:

Interim Chief Restructuring Officers (CRO) can be pivotal in helping companies weather financial storms and emerge stronger. They play a pivotal role in the corporate world, especially during times of crisis. Their swift decision-making, focus on fundamentals, and commitment to building a platform for growth make them invaluable leaders in turbulent times. As organisations continue to face challenges in an ever-evolving business landscape, the role of CROs will remain critical in guiding companies toward stability, resilience, and, ultimately, sustainable success.

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.

Trevor Parker

Is an Interim CEO the Right Choice?

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When Is an Interim CEO the Right Choice?

In the dynamic business world, companies often face unforeseen challenges and changes in leadership. Whether due to sudden departures, operational crises, or a fresh perspective, organisations may need a temporary chief executive officer (CEO). This is where an interim CEO can be the perfect solution. In this article, we will explore situations and scenarios where hiring an interim CEO is the best option for a company.

Sudden CEO Departure

One of the most common reasons to hire an interim CEO is the sudden departure of the current CEO. This can happen for various reasons, such as health issues, personal reasons, or a new career opportunity. In such cases, companies may not have a suitable replacement readily available, making an interim leader an ideal choice to steer the ship temporarily.

Crisis Management

In times of crisis, an organisation requires swift and effective leadership to navigate troubled waters. This could be financial instability, a PR disaster, or a sudden market downturn. Interim CEOs often have experience in crisis management and can quickly step in to stabilise the situation and provide a clear path forward.

An Interim CEO with Turnaround Expertise

Sometimes, a company is in dire need of a turnaround. In these situations, an interim CEO with a proven track record of reviving struggling businesses can be a valuable asset. These seasoned professionals are equipped to make tough decisions, cut costs, and implement strategic changes essential for a company’s survival and recovery.

Interim CEO to Bridge the Leadership Gap

Sometimes, a company may be between CEOs searching for a suitable permanent replacement. An interim CEO can bridge this leadership gap, ensuring that the company continues operating smoothly while searching for a long-term CEO. This ensures that critical decisions are not postponed and that the company remains on course during the transition.

Change in Strategy

Companies often need to pivot or redefine their strategic direction to stay competitive. When there’s a need for a new vision or a fresh perspective, an interim CEO with a specific skill set can be brought in to drive the change. They can implement new strategies and offer insights without the long-term commitment of a permanent CEO.

Merger or Acquisition

During mergers or acquisitions, it’s common for companies to experience significant transitions in leadership. An interim CEO can help navigate the complexities of integration, bringing together different corporate cultures and ensuring a smooth transition for employees and stakeholders.

Family Business Succession

In family businesses, succession planning can be incredibly challenging. Hiring an interim leader from outside the family can provide an objective and unbiased perspective on the business. This can be crucial for maintaining family harmony and ensuring the company’s long-term success.

Board-Driven Change

Sometimes, a company’s board of directors may initiate changes at the executive level, including replacing the CEO. In such instances, an interim leader can help manage the transition and keep the organisation running smoothly while the board selects a permanent CEO.

Conclusion

The role of an interim CEO is not limited to crisis management; it encompasses a wide range of scenarios where a company requires a skilled leader temporarily. Interim CEOs can bring stability, expertise, and fresh perspectives to organisations during change or challenge. When selected strategically, they can serve as a bridge to a brighter future for a company, helping it adapt to evolving circumstances and thrive in the face of adversity. Ultimately, the decision to hire an interim CEO should be well-considered, tailored to the specific needs and circumstances of the company in question.

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.

Trevor Parker

The Power of Operational Interim Leaders

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Driving Performance Improvement

Introduction

In the dynamic world of business, change is a constant. Organisations often need interim leadership to address challenges, seize opportunities, or navigate transitions. Traditionally, interim finance directors have been the go-to solution for companies seeking temporary leadership. However, a new breed of leaders, known as operational interim leaders, are emerging as powerful agents of transformation. This article will explore the benefits of an operationally focused interim leader over a more traditional interim finance director, emphasising their unique ability to influence improved performance rather than just spotting opportunities.

Holistic Perspective

Operational interim leaders are different from their finance-focused counterparts in approaching their roles with a broader, more holistic perspective. While interim finance directors often focus on financial matters such as budgeting, cost control, and financial analysis, operational interim leaders take a 360-degree view of an organisation. They understand that financial performance is intricately linked to operational efficiency and prioritise addressing the root causes of performance issues.

Enhanced Problem-Solving

One of the key benefits of an operational interim leader is their problem-solving prowess. They diagnose operational bottlenecks, process inefficiencies, and cultural issues hindering performance. By identifying and addressing these underlying problems, operational interim leaders can significantly impact an organisation’s overall performance.

Operational Optimization

Operational interim leaders bring a unique skill set, focusing on streamlining processes, improving workflows, and optimising resources. They work closely with various departments to implement changes that enhance productivity and drive operational excellence. Their influence extends beyond financial numbers, ensuring an organisation operates more efficiently and effectively.

Change Management Expertise

In today’s fast-paced business environment, adaptability and change management are crucial. Operational interim leaders are well-versed in leading organisations through transitions and change initiatives. Their ability to inspire and guide teams in adopting new processes or technologies is invaluable in improving performance.

Stakeholder Engagement

Another strength of operational interim leaders is their exceptional ability to engage with stakeholders at all levels of an organisation. They build trust and collaboration among teams, aligning everyone towards common goals. This people-centric approach fosters a positive organisational culture and is instrumental in achieving lasting performance improvements.

Real-time Performance Monitoring

Operational interim leaders are not content with merely identifying opportunities for improvement; they actively monitor and measure performance in real-time. Implementing key performance indicators (KPIs) and dashboards ensures that the organisation’s progress can be tracked and necessary adjustments made promptly.

Accountability and Ownership

Operational interim leaders are not just consultants or advisors. They take on roles with a sense of accountability and ownership, ensuring that recommendations are made and implemented effectively. This hands-on approach results in a much higher likelihood of achieving tangible results.

Long-lasting Impact

The most significant benefit of an operationally focused interim leader is their potential for creating lasting impact. While interim finance directors may spot financial opportunities, operational interim leaders drive changes that lead to continuous performance improvement. Their contributions can extend well beyond their interim tenure, leaving a legacy of positive change within the organisation.

Conclusion

The modern business landscape demands leadership that goes beyond financial acumen. Operational interim leaders bring unique skills and a holistic approach that can significantly influence improved performance. They are pivotal in driving organisational success by addressing underlying operational issues, implementing change initiatives, and fostering a culture of accountability and ownership. Organisations should consider the benefits of an operational interim leader who can transform their business from within rather than relying solely on traditional interim finance directors when seeking interim leadership.

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.